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Created 10 June 2022 08:08
I'm looking for clarification on the recording of the agreed prices above the max funding band. I know we now just need to record the max funding band value in the ILR, not anything above. But do we still record PMRs for the additional employer contribution above the max funding band?
I just wanted to check if the rule below means contributions are also handled offline, or just the initial recording of agreed price?
P196.2 If the price you agree with the employer (TNP1 plus TNP2) exceeds the maximum of the funding band, then you must agree off-line (outside of the ILR and apprenticeship service) how the employer will pay any difference. We do not need to know about the amount of this difference.
No one has replied to this post.
Good question, probably best to email it to the address at the top of the document.
My reading is "no", they don't want to know about it at all, but that's going to mean there's likely to be differences between what we're putting in the PMR records and what our invoices say (surely they can't want us to raise two separate invoices?)
10 June 2022 08:51
I'm really curious to know why they added this rule. Surely they can just ignore it if they don't want to consider any amount above band maximum? Also, we're going to have to misrepresent one price. I've assumed keep the assessment price what it would have been, and reduce the training price to your whole price minus the assessment price? If you later get an unexpected discount on the assessment, do you adjust the assessment price, then also have to adjust training price to still make your total be band maximum? And then as you've both pointed out, what about PMR? That won't match the finance records.
It's already bad enough trying to record PMR when an employer pays in instalments. We record all the PMR records as training until that covers 5% of the TNP1, then start on assessment after that. There's often one PMR payment we have to split. It seems pretty odd that PMR records even need recording as training or assessment.
But I agree with Steve that you will only need to record PMR to cover the required employer contributions up to band maximum.
I don't even want to think about how we would manage this is we charged a levy payer above band maximum, and they fell into insufficient funds!
10 June 2022 10:21
Thanks for both of your replies. I will definitely email feedback on this one.
I agree that you would keep the TNP2 consistent with the EPA costs and just reduce the TNP1 in the first instance. And yeah, if your EPA costs are lower than expected then you'll probably need new records to adjust and ensure you are reporting the max band. Starts to get messy!
It was a very strange and unexpected change!
Looking forward to your webinar this afternoon, Steve :)
10 June 2022 10:58