Foreword
Foreword by David Withey, Chief Executive of the Education and Skills Funding Agency (ESFA).
Independent training providers (ITPs) are key and valued partners of DfE and ESFA, delivering vital education and skills training through public funding amounting to around £1.5 billion a year. Effective governance, operational and financial management is essential for ITPs to deliver training, enable them to manage their finances, report accurately and transparently to customers and funders, and to make informed business decisions for their future. Such arrangements protect delivery for learners and, therefore, help achieve the best outcomes.
This financial handbook for ITPs is designed to:
- support the sector’s governance and financial management arrangements
- provide a framework for ITPs’ governance, financial management and oversight, and assurance, and
- assist us to identify and manage risks
We have developed handbooks and other publications covering financial management and governance to support the academy and college sectors. Through this handbook we are extending this support to ITPs, providing certainty to you about which requirements apply and what good practice looks like. We have aimed to provide this support through the handbook in a simple and proportionate way, so that the information you need is in one place.
The handbook includes a combination of requirements and recommendations to support governance and financial management, as well as providing reminders of relevant statutory and contractual obligations.
It works alongside existing oversight arrangements to help ensure your governance, financial management and assurance processes are robust and fit for purpose. Our aim is to work collaboratively to improve governance, financial management and financial health, and reduce the likelihood of intervention.
The sector is diverse, ranging from private companies to public limited companies to charities to community groups to sole traders to employer providers and more. The handbook reflects areas that are common to this diverse market, but also takes this diversity into account by ensuring that arrangements are proportionate to the amount of public funds you receive from us.
I recognise that you may need time to prepare for, and adapt to, the handbook and, for this reason, it will not apply until 1 August 2024. Prior to this, you have the opportunity to baseline your current arrangements against the handbook and, where necessary, adjust accordingly.
We know that many of you have robust processes already and we want to help ensure this is the case across the sector. Financial stability and good governance are the bedrock in creating a stable and effective training environment with high educational standards where learners can realise their potential.
Chief Executive, Education and Skills Funding Agency