Scottish Funding Council Delivering College Outcome Agreements AY

Transcription

1 Scottish Funding Council Delivering College Outcome Agreements AY

2 The following document explains the process of establishing outcome agreements within the new regional groupings of colleges. It includes the following sections: 1. Introduction 2. Establishing outcome agreements 3. Policy principles 4. The outcome agreement 5. Example template 2

3 Introduction The Scottish Funding Council (SFC) is changing the way it allocates and measures the impact of its funding to colleges within Scotland. From academic year 2012/13 funding to colleges will be distributed to the regional body responsible for planning and delivering college education provision in that region. At this time, we include the land-based colleges as representing a distinct region. This funding will be allocated on the basis of an outcome agreement between the college region and the SFC, setting out the activities the region will undertake and the contribution that it is expected to make to nationally agreed outcomes. Building on the Government s pre-legislative paper Putting Learners at the Centre, published on 14 September 2011, the priorities for the regional outcomes are set out below. Scottish Funding Council Regional College Outcomes: Outcome 1 Outcome 2 Outcome 3 Efficient regional structures Right learning in the right place High quality & efficient learning To deliver efficient regional structures to meet the needs of the region To contribute to meeting the national guarantee for young people, meeting the demands of the region, and where appropriate the nation To ensure that learners are qualified to progress through the system in both an efficient and flexible manner Outcome 4 A developed workforce To ensure learners are qualified and prepared for work and to improve and adapt the skills of the regional workforce Outcome 5 Sustainable institutions To secure, well-managed and financially and environmentally sustainable colleges 3

4 Establishing Outcome Agreements The outcome agreement for a region will reflect the return for the investment the SFC expects to see. Each outcome agreement is set in the context of the needs of a particular region such that each region will have a unique agreement, individual to them. In addition, agreements will also contain common elements to enable each region to benchmark its progress with others. The outcome agreement will be an expression from a regional grouping of colleges as to how SFC investment will be used to deliver efficient, high quality vocational education. Outcome agreements are not fixed but will develop over time as part of a continuous improvement approach. We expect colleges and the SFC to work together to negotiate outcomes and to agree the activity to deliver those outcomes. To support this approach, the SFC has appointed a set of regional managers, who will negotiate the terms of an outcome agreement. They will act as the central point of contact between the strategic management from regional college groupings and the SFC. To support the development of strategic planning across the region, they will also seek the views of other stakeholders to ensure that the proposed outcomes are complementary to those other stakeholders, such as, Skills Development Scotland, Community Planning Partnerships and the Enterprise network have also set. An outcome agreement would cover performance over a three-year period and include an annual performance review to inform funding allocations which will continue to be made on an annual basis. In finalising outcome agreements for AY , we recognise that this is a transitionary year and acknowledge the challenges and risks this brings. We also acknowledge that colleges are working alongside others in the achievement of outcomes and so recognise the reasonable extent of their contribution. Once agreed, delivery of the outcome agreement will become a condition of SFC funding. 4

5 Policy Principles The outcome agreements are informed by the following set of principles: Outcome Description Principle Outcome 1 Efficient regional structures We are aiming for a system of regional colleges or groups of colleges responsible for meeting the needs Outcome 2 Right learning in the right place of their area in partnership with others. Colleges should be resourced so that they and other educational partners can meet the Scottish Government priorities, in particular the guarantees. We want entry-level courses to be available as widely as possible, because learners are less likely to travel for such courses. Lower-demand, more expensive, or more specialist provision is likely to be available in fewer locations. This is a broad principle: it will apply differently in rural and urban contexts. Outcome 3 High quality & efficient learning Outcome 4 A developed workforce Outcome 5 Sustainable We don t want learners to be constrained by administrative or other boundaries, so whilst we want colleges to focus on the needs of their region they should aim to welcome students from wherever they live in Scotland. We want colleges and other local education and training organisations to dovetail their provision so that each partner plays the part it is best suited to and together the best possible service is provided, and learner journeys are as short, efficient and effective as they can be. We want learners to experience the highest quality learning and teaching and will work with appropriate quality assurance agencies to achieve this. Our expectation is that colleges will continue to commit to delivering high quality opportunities and to the continuing enhancement of quality. We want colleges to equip students with the skills and knowledge needed to get a job, keep a job or get a better job and develop a career. We want colleges to respond to the needs of the local, regional and national economy, so that there is a good supply of high quality labour available and sufficient up-skilling, training and development opportunities available to employers. We want financially and environmentally sustainable 5

6 institutions colleges able to meet the future needs of learners, employers and other stakeholders. 6

7 The Outcome Agreement The outcome agreement exists in two parts: a cover-sheet that sets out the outcomes that will be delivered; and a list of performance targets and the required activity to deliver these outcomes. The template below includes a series of questions and prompts to assist in the completion of the outcome agreement. A blank template is available at Annex A. It is important to reiterate that the outcome agreement will be determined through discussion with stakeholders within the region and in partnership with the SFC regional manager. Importantly, this is not a tick-box exercise but rather an opportunity to express the impact that will be made by a regional grouping of colleges in respond to the education and skills needs within a region. It is expected that outcome agreements will align with and inform the strategic business planning process for the regional grouping of colleges. In negotiating outcome agreements the SFC will seek to combine SMART objectives, where the results can be easily seen within a short-time frame, with longer term broader objectives aiming to improve the region s economic and social well-being. While distinct outcomes are set out in distinct sections within the agreement, they are not mutually exclusive and the impact to be achieved in one should be expressed with consideration for the others. In this regard, it is intended that Outcome 1 and Outcome 5 over-time will merge into a single outcome, reflecting the progress made with structural change. The outcome agreements should be completed mindful of the policy principles set out above. 7

8 Outcome Agreement: What will be delivered? College region (enter region here) College regional grouping (list colleges here) Funding College region X will receive Y million from the Scottish Funding Council for academic year 2012/13 to plan and deliver further and higher education in the region. This funding is on the condition that the regional body signs and commits to deliver the outcomes detailed below. Priority Impacts Between the period AY AY the college regional grouping will deliver the following priority impacts: 1) 2) 3) 8

9 College region (enter region here) College regional grouping (list colleges here) Outcome Objective Efficient regional structures The outcome agreement should set out the plans for agreeing and facilitating structural change, involving mergers and federations, to enable the delivery of efficiencies in the future. For example: To deliver a merged regional college between college X and Y by AY This should include a brief description of: a list of the colleges involved; the nature and extent of the structural change and the date by which the new structure (merger or federation) will be established; the proposed new governance arrangements; the intended efficiency savings to be made; the transformation funding received and proposed SFC efficiency saving payback; and Right learning in the right place a summary of the proposed changes to the college estate (including consideration of outreach centres and their role in ensuring the right learning in the right place). The outcome agreement should set out the annual target for the amount of learning to be delivered by the region. In AY this will be set-out in terms of number of WSUMS to be delivered and will need to include consideration of the contribution to the 1% efficiency saving to be made by the sector. This section should also include: a statement on the curriculum on offer (showing how it is efficiently aligned between colleges within a region and meets the Government s guarantee); a statement on the SDS funded element of the learning provided; a list of the national specialisms that will be offered; 9

10 provision for access learning and the areas where access will be maintained, including in relation to those schools within the region with high numbers of learners into negative destinations; and a statement on the volume of S3 to S6 school-college activity. High quality and efficient learning In delivering this learning the regional grouping of colleges will need to be able to show how it eliminates unnecessary competition, aligns and prioritises learning and ensures continuity of learning in areas of particular need. The outcome agreement should set out how the region will maintain and enhance quality, improve attainment and deliver efficient progression from NRQ through to articulation to degree level study within the region. This will include a statement on: % improvement in attainment and retention; % improvement in learner progression from NRQ to NQ; from NQ to HN (prioritised with reference to key sector and employer needs locally and nationally); % improvement in the numbers of learners articulating to target universities; % improvement in the number of learners progressing into employment / sustained employment at defined intervals (reporting here would be linked to Outcome 4) The regional grouping of colleges would be expected to establish a regional baseline of recent performance in order to assess progress. The regional grouping of colleges will be expected to demonstrate continued commitment to quality, and to the improvement and delivery of high quality learning opportunities. A Developed workforce The outcome agreement will set out how the regional grouping of colleges will improve engagement with employers, employability and the progression of learners into employment within the region. It will include statements on: income generated; the number and type of employers 10

11 engaged, including the nature of engagement, within the region. Relative to a regional baseline, it will set out the forecast increases for meaningful employer engagement (including prioritisation of those employers relevant to both local and national economic needs and key sectors); the number of apprentices and places delivered through SDS National Skills Programmes ; the list of groups furthest from the labour market to be prioritised (where not already accounted for within the targets above), the outcomes to be achieved and the partners involved. Sustainable institutions The longer term aim is to establish a learner destination survey for each region. While this will involve a discussion at a national level each region should begin to establish processes to capture the employment destinations of learners. In the future, regional groupings of colleges will be asked to set targets for the number of students into employment, and other positive destinations and be able to determine the proportion that sustain their progression. The outcome agreement will set out how the college will manage itself in a sustainable manner and comply with good governance practice It will include statements on: governance and management arrangements; the institutional sustainability framework including - Financial, HR, Buildings and Infrastructure and, Quality and Collaboration and environmental strategies (see circular 31/2009); and compliance with the Financial Memorandum (FM) and the mandatory requirements. The next section sets out in more detail how the above outcomes will be delivered 11

12 Outcome Agreement: How it will be delivered (Targets and Milestones) Outcome Objective Activities Timescale Efficient regional 1. To achieve a merged regional Organise joint Planning group with representatives of college boards structures college by X 2. To achieve an efficiency saving of x based on a new management framework and realigned staffing structure Draw up college merger proposal strategy, including communication strategy with staff and stakeholders Establish cross college curriculum team and deliver new aligned curriculum plan for approval by joint Boards planning group. 3. To have discussed and agreed with SFC and key stakeholders by X the balance of learning provision to meet the needs of employers and learners Agree terms of voluntary severance scheme where relevant. Establish new governance arrangements Undertake review of cost centres and extent of merger savings. Construct application to Transformation Fund Finalise estates plan which sets out plans for local delivery sites in keeping with Outcome 2. Outcome Objective Activities Timescale Right learning in the right place 1. To deliver the SFC target of X WSUMS in AY (includes / doesn t include share of 1% efficiency saving) 2. To rationalise and align subjects X and Y between colleges A and B 3. To maintain national specialisms X, Y and Z available within campus A and B Meet with the CPP to determine which organisations we will work with to meet the Government s priority groups / identify gaps in current provision across the region and set out plan to fill them. Identify whether the grouping of colleges is adequately meeting the needs of all communities within the region. Agree an outreach strategy to meet the needs of these communities Agree with LA the roles and responsibilities in relation to schoolcollege activity. Agree the balance of vocational opportunities 12

13 4. To maintain the provision of learning at X and Y outreach centres to provide X number of courses for Y number of learners 5. To increase the % of SUMS delivered through school-college activity from X% to Y% targeted at those learners at S3 to S6 available to the S3 to S6 cohort (including arrangements for progression planning) Review current balance of NRQ s and their relationship to the outreach strategy and meeting needs within communities with high numbers of those furthest from the labour market. Outcome Objective Activities Timescale High quality & Establish a regional baseline of recent performance in order to assess efficient learning progress. 1. To achieve a x% improvement from X to Y, in the number of learners progressing from NRQ learning to full-time NQ s 2. To achieve a x% improvement from X to Y in the number of learners achieving successful completion on full-time NQ learning Determine the key challenges in retention, by student and by subject. Prepare cross region review. Link cross institution reporting on retention to staff performance review. Review and agree a strategy for NRQ provision across the region. Align this with CPP and other stakeholders. Determine the scale of need to be met ensuring focus on progression. 3. To achieve a x% improvement from X to Y in the number of learners progressing from NQ learning to HN 4. To achieve a x% improvement from X to Y in the number of learners articulating to targeted universities Determine the size of the articulation learner market. Meet with the hub partners and agree actions to improve HN completion rates, agree articulation volumes for target subjects and action to ensure targets are met including marketing of student information, student support arrangements, induction and transition planning. Review and establish articulation agreements with hub partners based on agreed volumes of students articulating. 5. To demonstrate have effective 13

14 arrangements to maintain and improve quality of learning and are delivering high quality learning opportunities. Outcome Objective Activities Timescale Developing the workforce 1. To support x% of leavers into a job within 3 months of leaving college by AY To have increased the number of key sector employers engaged from X to Y by AY To have increased the number of local employers engaged from X to Y by AY To have increased the number of apprentiships from X to Y by AY To have provided X number of places for priority groups with X% completing and achieving positive progression 6. we will support X% of leavers to a job within 3 months of leaving college Scope past employer engagement across the region and identify key and emerging employers within the region. As part of curriculum review consider how the current subject mix meets the needs of these employers. Discuss and engage with CPP. Consider the extent of existing relationships with employers and determine where these can be improved, building on the relationships and economies of scale available to the new grouping of colleges. Determine the size of the unemployed market within the region and the extent of their qualifications and needs. Agree with the CPP and other stakeholders the priority groups that are furthest with the labour market. Agree the balance of learning focussed on this group, including any NRQ s, and establish programmes. Establish performance targets and curriculum expectations for outreach teams. Work with college sector and SFC to begin to develop a leaver destination survey and the MIS needed to deliver this. Outcome Objective Activities Timescale Sustainable 1. To manage the college in a See actions in relation to Outcome 1. institutions sustainable manner and comply 14

15 with good governance practice 2. To have submitted efficiency savings of x% Sustainability Ensure an overarching institutional sustainability framework is in place. This should include strategies showing key elements e.g. Financial, HR, Buildings and Infrastructure, and Quality and Collaboration, to underpin the overall strategy. An additional section on Environmental sustainability should be included. This should incorporate key PIs as highlighted in the circular SFC/31/2009. Undertake review of staffing structure and balance of skills and expertise to meet the needs of employers and learners within a region. Undertake estates review in partnership with SFC and assess extent its fit for purpose and usage optimised to deliver needs of the region. Within restructuring plans to ensure completion of application to Transformation Fund by X, setting out the efficiency savings to be delivered by Y. As part of the restructuring highlight any on-going concerns and communicate these with partner colleges and SFC. Agree management strategy. Governance Agree preferred accountability structure and timescale for its achievement, and ensure good governance practice is followed at all times. Ensure compliance with the Financial Memorandum and mandatory requirements, including, ensuring the main responsibilities of the SFC Chief Executive as Accountable Officer are met. 15

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17 Process The outcome agreement is the starting point for on-going dialogue with the Scottish Funding Council. Together, the SFC and the regional grouping of colleges would agree a timeline to review agreements, which would include an annual performance review and a schedule of progress meetings leading up to this point. For the annual performance review we will ask regional groupings to prepare a self-assessment putting forward the evidence demonstrating progress towards targets. Building on this evidence base we will benchmark elements of performance against the national picture and provide our assessment of performance for the region. It will be our aim to align this with other reporting within the college. This review will then be discussed with the regional grouping. Importantly, this is not an attempt to duplicate the more extensive quality review process undertaken by Education Scotland, for example, which is of a different order and serves different purposes. Rather the aim is to create a level of meaningful engagement that best supports and challenges the regional grouping of colleges to best meet need within the region. Managing Performance and Penalties In most cases we expect regional groupings to achieve their targets and outcomes. Where this is not the case, we will work with the regional grouping to determine the reasons for this. Where these are beyond the control of the regional grouping we will agree to rebase its targets and outcomes. If there are any areas in which performance has not met expectations then the regional grouping will be asked to identify the reasons for this and agree an appropriate course of action. This would generate an action plan which would set out the actions needed to improve performance. This would be a public document available to all stakeholders, setting out what actions are being taken by the college and to what timeline. We will take a holistic judgement on the performance of each institution. Evidence will be gathered on performance across the region and we will consider the application of financial penalties proportionate to the under-performance and the priority of the outcome to which it impacts. For example, a financial 17

18 penalty applied to Outcome 1 (Efficient regional structures) is likely to be substantial, given the level of resource involved and its importance to the achievement of other outcomes. Outcome agreements should be seen in the context of a relationship and engagement with the SFC and other stakeholders. We expect to set outcomes over a medium term period and assess progress toward those outcomes annually. At the outset, where there is evidence of a need for improvement, both regionally and nationally, we expect groupings of colleges to work with the SFC and stakeholders in establishing ambitious targets for their region. Thereafter, we expect the regional college groupings to be an effective partner and be responsive to need and change within a region. The process of engagement is summarised in the diagram overleaf. Engagement will take place over three cycles over a three year period. Cycle 1 establishes relationships, expectations and the scope of the challenge ahead. It requires regional groupings of colleges to prepare systems and processes to deliver the impact set out in the outcome agreement. Outcome agreements are to be established at the latest by 30 June Engagement and reporting on progress takes place throughout the academic year and according to key phases. For example, in December of the first cycle, we will discuss recruitment and retention. We will repeat this in February. Throughout the year we will expect to see evidence of progress and will visit the regional grouping of colleges to meet staff and students. We will also meet with key partners LA s, SDS regional representatives, Chamber of Commerce, employers and potential learners at set intervals. The outcomes of these meetings will be shared with the regional grouping of colleges as part of the review process. Performance will be reviewed between September 2013 to November 2013 to inform targets and funding for AY At this point the regional grouping of colleges will produce their self-performance assessment. Based on the review of this by the SFC, an action plan may be produced. This would need to be agreed before the end of the calendar year. We are aware that financial performance will need to be considered over a different timeframe and, therefore, progress will be assessed within the engagement process when it becomes known. Cycles 2 & 3 allow for relationships, systems and processes to bed-in. Effort will 18 be focussed on supporting the regional grouping of colleges and its partners to maximise impact.

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20 Process of engagement Cycle 1 (AY ): Capacity Building Contact 1 (Feb June) Commitment Understanding key policy aims; WSUM targets Meeting with SFC regional manager Agreeing regional grouping and starting stakeholder engagement Preparing / delivering for structural change (Transformation fund application) June - Establish outcome agreement with SFC Offer of funding made for AY Contact 2 (Aug Feb 2013) Making it happen Evidence of progress with structural change plan Evidence of stakeholder engagement Problem solving commenced and evidence of strategy to resolve implementation challenges Contact 3 (Feb July) Delivering Evidence of delivery Evidence of system development Preparation and plans for next year Clarification on reporting expectations Contact 4 (August 2013 December 2013) Delivering& Review Review of impact / progress planning for next academic year Re reprioritising activity Re- profile and financial adjustments made in December for targets for academic year Cycle 2: Once a one year cycle has been completed, the aim is to Stay on course developing the systems and effective practice across the region. Progress is fully reviewed between September and the end of November of each academic year to enable adjustments to be made to the targets and funding of regional groupings in December. In the first cycle this means performance is reviewed September 2013 to November 2013 to inform targets and funding for AY The process also involves meetings with sector to reflect on the sector s progress; to discuss how we overcome common challenges and agree the adoption of best practice 20