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If you're already charging the maximum (as most providers do) and the change in TNP2 costs is going to take you over that, then you'll have to reduce the cost of TNP1 proportionally (any yes, add a new line), at least as far as the ILR is concerned, on the basis that it is only interested in the price up to the funding band maximum. That is not to say you have to actually reduce what you're charging, but you'll have to sort that outside of the ILR, per the below:
140. If the true cost of delivery exceeds the funding band maximum (before any deductions for prior learning have been made), the provider must agree off-line (outside of the ILR and apprenticeship service) how the employer will pay this difference. We do not need to know about the amount of this difference and VAT can be charged on this amount. This difference must not be funded from the apprenticeship service account or co-investment.
The price in the ILR and what you're actually charging can therefore sometimes be slightly incongruous, but providing you have evidenced to substantiate agreement on behalf of the employer, and justification for why you're charging what you are, you'll be fine.
I don't think you should alter the TNP1, so if the Assessment price has reduced, so will your overall price, and you'll have to adjust the DAS. How would you justify a training increase to the employer simply because you latterly got a discount on the assessment? If the employer actively agrees to increase the training price, fine.
Different scenario, but I agree. If the assessment cost has decreased rather than increase, meaning the total price has gone down and not up, there'd be no reason to change TNP1. It's only where the assessment cost is increasing and where your total price is already at the funding band max that you'd need to think about TNP1 changes, which is what I was referring to.
Sorry yes, I meant don't increase the TNP1 when the assessment price has decreased (I know providers who do). It used to be you didn't need to reduce the TNP1 when you had to increase TNP2 as you were allowed to report above band max, but now we're not allowed (which honestly seems daft to me).
Rachel Dennis
Change to Final Known TNP2 Cost
Created
I understand that we have to record the 'known' or actual cost of the EPA as our TNP2 in the ILR. We have done this and the price entered was the 'final known cost' at that time.
However the EPA Organisation has now changed and so has the price. We have our paperwork (with the new EPA information) agreed and signed by the employer / apprentice. Are we OK to amend the original TNP2 with the new price? I have had it suggested that we should only record the final cost in the ILR (which I understand - i.e. do not enter estimates), but what happens if the price entered was, to the best of your knowledge, the final cost and it then changes? Thank you.