Early Leaver with Co Investment payment

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This topic contains 7 replies, has 5 voices, and was last updated by  Ruth CJ 3 months, 3 weeks ago.

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  • old25
    Participant

    We have had an employer who has paid the full amount of their co-investment up front for an apprentice, however the apprentice has left after a month. I want know if we can pay the company back the co-investment payment minus their contribution for the month in learning?

    thanks

     
    #229923

    Martin West
    Participant

    Hi,
    The guidance is as follows:
    707. Where applicable, employer co-investment should be reconciled to the date of withdrawal. Any employer payments for training and/or assessment that has not been delivered by the withdrawal date should be repaid to the employer. You must record repayments made to the employer with AFinType = PMR and AFinCode = 3.
    HTH

     
    #229938

    Jo P
    Participant

    Hi

    Just to let you know, when the PFA auditors were in last August they asked for a copy of our refunds policy, specifically covering refunds to employers where learners leave early. So it’s worth having a policy formally documented.

    Jo

     
    #229951

    Cris Hale
    Participant

    Hi all,

    Anyone know of any suggested method of calculating repayment? Or are providers expected to develop a system themselves?

    Thanks,

    Cris

     
    #261281

    Martin West
    Participant

    Hi Cris,
    You can use the period end Apps Co-Funding Contributions report from the HUB and this will show:
    Total employer contribution collected (PMR) in this funding year
    Total co-investment (below band upper limit) due from employer in this funding year

    You can invoice, or refund based on the difference of values indicated where the Apprentice has been withdrawn.

    HTH

     
    #261293

    Ruth CJ
    Participant

    Thanks for the quote from the guide Martin. We are refunding, but I hadn’t realised that the guidance said that we should, I thought it was up to us. Do you think we can get away with retaining an admin fee?

    We do use the Co-Funding Contributions report, but you can just work it out. TNP (both parts if Standard) x 0.8 (accounts for completion payment). Divide that by the planned number of months (remembering that last day of the month triggers that month being counted). Divide that by ten for the monthly contribution. Multiply that by completed months, and you get what they should have paid. Refund the rest.

     
    #261343

    Martin West
    Participant

    Hi Ruth,
    Do I think you can get away with retaining an admin fee, this is best answered by ‘would you accept the Employer deducting a processing fee from your invoice’?

    Yes, it can be simple to work out but it all depends how and what you charge, some providers charge the full amount upfront others split training/EPA costs, but I think most do 80%, 20%.

    HTH

     
    • This reply was modified 3 months, 3 weeks ago by  Martin West.
    #261353

    Ruth CJ
    Participant

    Honestly, I think it’s completely normal and reasonable behavior to process refunds minus an admin fee. When students pay themselves then withdraw, we don’t refund them exactly the percentage of the course they didn’t do. When you cancel a booking, you often lose all or part of a deposit.

    The numbers that come out of the Co-Funding Contributions report will be exactly what you get using the calculation I explained. The split of the EPA and Training makes no odds. The co-investments due are always 10% of 80% of the total price, divided by the months. If a provider has chosen to only charge the Training bit up front, it makes no difference to how much co-investment is due, only to how much you refund them. My comment that you refund the rest (“the rest” being anything they paid above what is due) still stands.

     
    #261358
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