Annex B: Handbook components
A matrix summarising each arrangement applicable to independent training providers under the handbook
The matrix below provides a brief summary of each arrangement applicable from 1 August 2024[1] . More details are provided on each arrangement in parts 3 to 5 of the handbook.
Note - a colour coded matrix is available in the pdf version of the manual.
In order to view the full width of the matrix, please use the horizontal bar at the bottom of the table to scroll along.
| Arrangement summary | Total annual funding the ITP receives directly from DfE/ESFA: more than £8 million | Total annual funding the ITP receives directly from DfE/ESFA: more than £1 million up to £8 million | Total annual funding the ITP receives directly from DfE/ESFA: more than £100,000 up to £1 million | Total annual funding the ITP receives directly from DfE/ESFA: up to £100,000 |
|---|---|---|---|---|
| To have at least one non-executive director (or equivalent) in place (companies only) to provide independent oversight of financial and governance processes. | Required | Discretionary | Discretionary | Discretionary |
| To have an audit and risk committee in place to direct and oversee independent assessment of financial and governance processes. | Required | Recommended | Discretionary | Discretionary |
| To have a funding compliance scrutiny function in place to oversee the submission of data that triggers funding. | Required | Required | Recommended | Discretionary |
| To comply with all contractual obligations and DfE / ESFA guidance in relation to sub-contracting arrangements and delivery. | Required | Required | Required | Required |
| To comply with a relevant published governance code. | Required | Recommended | Discretionary | Discretionary |
| To submit annual accounts to ESFA within timescales as set out in this handbook [2] | Required | Required | Required | Required |
| To maintain a rolling cash forecast which sets out expected financial position for the next 12 months. | Required | Required | Required | Discretionary |
| To submit financial health records as per any request from DfE/ESFA. | Required | Required | Required | Required |
| To have a counter fraud and error policy and procedures in place, and fraud awareness training for staff. | Required | Required | Recommended | Discretionary |
| To have risk management processes in place to include a risk management policy, risk register, business continuity policy, and conflict of interest policy. | Required | Required | Recommended | Discretionary |
| To have a whistleblowing policy in place which references how to make disclosures directly to DfE/ESFA. | Required | Required | Required | Discretionary |
| To have and to follow a formalised internal review process in relation to the ITP’s financial management and governance procedures. | Required | Recommended | Discretionary | Discretionary |
| To appoint an external auditor to provide an opinion on whether the annual accounts are true and fair, even if not a statutory requirement. | Required | Required | Discretionary | Discretionary |
| For ITPs whose annual accounts are externally audited, to provide management letters to ESFA. | Required | Recommended | Discretionary | Discretionary |
[1] ESFA may extend the transition period for certain requirements beyond 1 August 2024 in response to sector feedback received following publication of this handbook.
[2] ITPs which only contract with DfE to deliver Skills Bootcamps are exempt from submitting accounts annually to DFE / ESFA, as DfE has alternative arrangements for assessing providers’ financial health.