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Hi, it's a bit more complicated that that.
their contribution will be split between contribution for training and contribution towards the EPA cost.
For withdrawals you should be refunding both the unused contribution towards training and the full contribution towards EPA.
EG 24-month course with total cost of £3000 (£2400 is for training and £600 is for EPA). Their contribution will be £150 (split as £120 for training and £30 for EPA). You are using £120/24 = £5 training contribution per month. If learner leaves after 2 months (so you've received 2 OPPs), then you are entitled to £10 contribution.
You should therefore be refunding £110 of training contribution and the £30 for EPA = £140.
With your method you'd be refunding (150/24)=£12.5 x 22 = £137.5
ESFA auditors may pick up on this.
Great, thank you Dave. The business is fairly new and trying to get everything in place now rather than find out later we have done it wrong.
With that new calculation in mind, what should we do regarding any internal admin fee's/agreements? So if we report on the ILR the refund of the £140, do we need to declare we kept X amount in the ILR data for admin fees or would that be our internal accounts only?
Thanks again.
Alannah Rowles
100% NL upfront contribution
Created
Hi all,
We collect the entire 5% NL contribution upfront, in advance unless we have a specific agreement with an employer. It is my understanding that if a learner leaves, we need to repay the difference from what they should have paid to the date of withdrawal as per "You must agree with the employer any reimbursement for employer co-investment made for learning paid for, but not undertaken".
It is our internal policy that if the learner withdraws over x amount of days we need to charge admin fees, but my question is regarding recording on this on the ILR.
For example if a contribution was £10 a month and they paid in full £200 in advance, then left after 2 months, would we recorded on the ILR just the £180 refund, then in our internal accounts £180 refund minus £x administration fee? Or do we need to declare on the ILR that we kept £x amount of the £180 for an admin fee?
Thank you!