Contract funding principles
Providers who have secured an AEB, Free Courses for Jobs or Skills Bootcamps contract with the WMCA will be subject to its risk-based financial due diligence and financial health assessment.
Providers who have secured a Contract with the WMCA will be paid on actual delivery, one month in arrears, for the 2022/23 funding year. Your payments will be based on your actual delivery and reconciled against your proposed delivery plan on a monthly basis. At no stage will the cumulative payments made to a provider, breach the maximum value of the contract.
Any over-delivery or delivery outside the agreed delivery plan will not be funded. Variations to contract values and delivery plans will need to be formalised through a growth/flexibility business case that has been submitted and formally approved in writing by WMCA.
These arrangements will apply to all contracts for service providers.
There will be funding review points where we will review allocations in line with the funding claim submissions, which will set out your actual delivery to date and provide a forecast for the remainder of the year. The management points for Contract for Service providers using the most recent set of submitted data will be:
Funding Review Point |
Submission date |
|
Mid-year Claim |
February 2023 |
|
Year-end Claim |
June 2023 |
|
Final funding Claim |
October 2023 |
At key funding review points, we reserve the right to recover funds where underperformance against the delivery plan is a significant concern. If any funds are recovered, we may make this available to fund growth requests covered later in this document.
The WMCA will use the following tolerances at key performance points during the year.
Funding review point |
Date |
Tolerance |
| R04 | December | 15% |
| R08 | April | 10% |
| R12 | July | 5% |
| R14 | October | 0% |
The WMCA will reserve the right to re-profile, reconcile or cease payments at any point during the funding agreement period.
Any provider with identified funding under-performance at any of the performance management points must work with their designated WMCA Relationship manager and Skills Delivery Officer by submitting a plan setting out how they intend to address under-delivery.
It should be noted that WMCA will not pay on R13 return and any remaining monies owed to a provider will be paid as part of the R14 reconciliation.