Metskill Limited Supply-Chain Charges and Fees Policy

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1 Metskill Limited Supply-Chain Charges and Fees Policy Metskill Limited provide high quality support to learners and employers within the science, engineering and manufacturing sectors, to enable these sectors to develop a skilled workforce through the delivery of apprenticeships. 1. Policy Statement 1.1 Metskill Limited is committed to growing and diversifying the range of courses it delivers to deliver to niche markets, engage in new markets and meet regional and local economic needs. 1.2 In order to achieve this, Metskill Limited has taken the strategic decision to subcontract part of its provision to partner organisations who can demonstrate high quality delivery in specialist and complimentary areas of support. 1.3 This document sets out to define the basis on which any subcontracting arrangements will be arranged and managed. 2. Scope 2.1 This policy is published in line with Education Skills Funding Agency 2016/2017 funding rules and subsequent funding rules. 2.2 The policy applies to all provision subcontracting where there is the delivery of full or part frameworks by the Subcontractor. 3. Improving the Quality of Teaching and Learning 3.1 Subcontracted partners will be expected to meet Metskill Limited s quality assurance standards 3.2 Metskill Limited are committed to supporting, developing and sharing good practice with subcontractors and the quality and compliance of provision is continually monitored. We carry our regular quality reviews, operational meetings and observations of teaching and learning and will seek learner and employer feedback regularly to ensuring that the quality of delivery is of the highest standard. 4. Management Fees 4.1 Metskill Limited retains a management fee from all subcontracted partner organisations. This ranges from 15% to 20%. The fees charged reflect the cost of the procurement process, quality support and the management of the contracts. 4.2 The actual fee taken will be calculated taking into account the level of support being given to each Subcontractor which will vary based on their individual needs and the associated level of risk this presents to Metskill Limited. 5. Support for Subcontractors 5.1 In return for the management fee charged by Metskill Limited, subcontractors will receive a high level of support and guidance, including (but not restricted to) the following: Advice and guidance at pre-contract stage Certification and registration with awarding bodies (if required) Observation of teaching, learning and assessment Regular review meetings Support with compliance against the ESFA funding rules Data checks and eligibility checks completed against enrolment documentation submitted. Robust IAG, to ensure the right learner, is undertaking the right qualification for their personal career progression Submissions of data to the Education Skills Funding Agency Monthly financial reporting Data checks and support to resolve data queries Quality improvement support Page 1 of 13

2 6. Reasons for Differences in Fees Charged 6.1 Fees charged to individual providers may differ depending on the calculation of management fee as specified in Payment Arrangements 7.1 Payments are made on a monthly basis by the end of the following month in which the activity is successfully processed and uploaded to the Data Service by Metskill Limited. 7.2 Following validation of the evidence in the ILR return, Metskill Limited will make the appropriate payment to the Subcontractor based on the level of income calculated by the validation process in that month less the agreed management fee 7.3 Payments by Metskill Limited will be paid upon receipt of an invoice from the subcontractor. 7.4 All payments are made by BACS. 7.5 Metskill Limited expects that the Subcontractors to scrutinise the accuracy of payments. Subcontractors have the responsibility to review their monthly data and invoice amounts, to identify any inaccuracies. Confirmation is received from the subcontractor before any payment is released to safeguard ESFA funding. 8. Publication and Dissemination of Subcontracting, Supply-Chain Fees and Charges Policy 8.1 This policy will be made available on the Metskill Limited website and is available in hard copy on request. 8.2 The policy will be discussed with all current and future subcontractors during contract negotiation meetings. 8.3 Data regarding the actual level of funding paid and retained for each subcontractor will be published within 30 days of the 2016/17 ILR closing. 9. Policy review 9.1 The policy will be reviewed on an annual basis by the Senior Management Team at Metskill Limited. 9.2 In addition the policy may be reviewed in-year as needed to reflect any changes in ESFA funding rules and any associated ESFA Guidance. 9.3 Any changes to this policy that are required mid-contract will be discussed with Subcontractors prior to implementation. Page 2 of 13

3 Provision Sub-Contractor Paid Re APPENDIX 1 MANAGEMENT FEES d Contract Actual Funding Paid and Retained 2015 to 2016 KPRN Type of Provision Sub-Contractor Paid Retained Contract Start and UKPRN Type of Provision Sub-Contractor Paid Amount to Subcontractor Retained by Metskill Ltd N/A 19+ Apprenticeship Cranfield University (SEMAP L7) AMRC /The Sheffield University Contract Start and End Date 115, August July , , August July Electronic Yorkshire 84, , August July 2016 R14 15/16 Final Only 15% BEMA 2, ETS 8, , August July 2016 IMS Training Ltd 40, , August July 2016 R14 15/16 Final Only 15% K J Training Solutions Ltd 325, , August July 2016 R14 Final 15/16 Only LRTT 245, , August July 2016 R14 Final 15/16 Only Peach Orator 36, , August July 2016 R14 Final 15/16 Only Penderson s 88, , August July 2016 R14 Final 15/16 Only RPC Superfos Ltd 37, , August July 2016 R14 Final 15/16 Only ATG 63, , August July 2016 Bedford 4, August July 2016 Page 3 of 13

4 Birmingham Metropolitan 31, , August July Bradford 14, , August July 2016 Bury 3, August July Central Nottingham 4, August July Central Sussex 43, , August July 2016 City Plymouth 1, August July 2016 City of Bristol 12, , August July City of Wolverhampton 17, , August July Cornwall 4, August July 2016 Derby 4, August July 2016 Doncaster 7, , August July 2016 Dudley 17, , August July 2016 East Surrey 7, , August July 2016 Harlow 2, August July 2016 Page 4 of 13

5 Apprenticeship Heart of Worcestershire 9, , August July Highbury 8, , August July Institute of Casting Metal Engineers 10, , August July IPS International 21, , August July 2016 Kingston 23, , August July 2016 Lincoln 7, , August July 2016 Loughborough 17, , August July North Nottinghamshire North Warwickshire & Hinckley 5, August July , August July Northampton 31, , August July 2016 PETA Ltd 3, August July Rotherham of Arts and Technology 47, , August July St Helens 7, , August July 2016 Sandwell Training Centre 16, , August July 2016 Page 5 of 13

6 South Cheshire 2, August July 2016 Stephenson 21, , August July Stockport Engineering Training Association 7, , August July Swale Skills Centre 4, August July 2016 The Sheffield 78, , August July 2016 Trafford 10, , August July 2016 Training Services 2000 (trading as Learning Unlimited) 6, , August July 2016 Vogal Group Ltd 29, , August July 2016 Wakefield 8, , August July 2016 Warwickshire 4, August July West Nottinghamshire 2, August July West Suffolk 2, August July 2016 Wigan & Leigh 2, August July 2016 Start and Page 6 of 13

7 Actual Funding Paid and Retained 2016 to 2017 UKPRN Type of Provision Sub-Contractor Paid Amount to Type 1 - Fully Delivered by Type 1 - Fully Delivered by Type 1 - Fully Delivered by Type 1 - Fully Delivered by Type 1 - Fully Delivered by Type 1 - Fully Delivered by Type 1 - Fully Delivered by Type 1 - Fully Delivered by Type 1 - Fully Delivered by Type 1 - Fully Delivered by Subcontractor Retained by Metskill Ltd Contract Start and End Date AMRC 3, August Dec 2016 Invoices on Ledger K J Training Solutions Ltd 2, August Nov 2016 Contract withdrawn Subcontractor liquidated ARC Academy UK 50, , August July 2017 Invoices on Ledger transferred learners from K J Training Solutions Ltd Electronic Yorkshire Ltd 74, , August July 2017 Electronic Group Ltd May July 17 1 Learner (early leaver) IMS Training Ltd 28, , August July 2017 LRTT 171, , August July 2017 Peach Orator 15, , August July 2017 Wind down contract now expired Penderson s Ltd 4, , August Dec 2016 Wind down contract now expired RPC Superfos Ltd 38, , August July 2017 Page 7 of 13

8 Type 1 - Fully Delivered by Type 2 Delivery Trailblazer Apprenticeships Type 2 Delivery Type 2 Delivery Type 2 Delivery Type 2 Delivery Type 2 Delivery R S Fleet Installations Ltd 45, , August July 2017 Cranfield University (SEMAP L7) 194, , August July 2017 Invoices on Ledger ATG 13, , August July 2017 Bedford 6, , August July 2017 Birmingham Metropolitan 14, , August July 2017 Bradford 6, , August July 2017 Canal Engineering Training Academy 11, , August July 2017 Page 8 of 13

9 Type 2 Delivery Central Nottingham 4, August July Type 2 Delivery Type 2 Delivery Type 2 Delivery Type 2 Delivery Type 2 Delivery Type 2 Delivery Central Sussex 28, , August July 2017 Chesterfield 5, August July 2017 City Plymouth 3, August July 2017 City of Bristol 4, August July 2017 City of Wolverhampton 6, , August July 2017 Cornwall 4, August July 2017 Page 9 of 13

10 Type 2 Delivery Type 2 Delivery Type 2 Delivery Type 2 Delivery Type 2 Delivery Type 2 Delivery Type 2 Delivery Derby 14, , August July 2017 Doncaster 7, , August July 2017 Dudley 4, August July 2017 East Surrey 2, August July 2017 Highbury 1, August July 2017 Institute of Casting Metal Engineers 2, August July 2017 IPS International 24, , August July Type 2 Delivery Kingston 18, , August July 2017 Page 10 of 13

11 Type 2 Delivery Type 2 Delivery Type 2 Delivery Type 2 Delivery Type 2 Delivery Type 2 Delivery Type 2 Delivery Leigh Academies Trust 20, , August July 2017 Lincoln 11, , August July 2017 Loughborough 22, , August July 2017 Northampton 32, , August July 2017 PETA Ltd 8, , August July 2017 Rotherham of Arts and Technology Stockport Engineering Training Association 28, , August July , , August July 2017 Page 11 of 13

12 Type 2 Delivery Type 2 Delivery Type 2 Delivery Type 2 Delivery Type 2 Delivery Type 2 Delivery Type 2 Delivery Stephenson 9, , August July 2017 The Sheffield 69, , August July 2017 Stoke on Trent 7, , August July 2017 TDR Training Ltd 2, August July 2017 Trafford 6, , August July 2017 Training Services 2000 (trading as Learning Unlimited) 5, August July 2017 Vogal Group Ltd 27, , August July 2017 Page 12 of 13

13 Type 2 Delivery Type 2 Delivery Type 2 Delivery Wakefield 8, , August July 2017 West Nottinghamshire 5, , August July 2017 Wigan & Leigh 2, August July 2017 To note: The 2016/17 table above provides an accurate contract position, of the paid amount to each Subcontractor. The table also provides the retained value by Metskill Ltd. A further breakdown on a learner by learner basis can be provided upon request. Page 13 of 13

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