Craven College Strategic Development Plan Craven College Strategic Development Plan

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1 Craven College Strategic Development Plan Page 1 of 34

2 Contents Page Introduction 4 College Mission Statement 4 Key Strategic Changes and Considerations 4 Strategic Goals and Enablers and Key Performance Indicators 6 Strategic Goals and Objectives Strategic Enablers and Objectives Appendices: Appendix 1 - Recent Developments and Achievements 16 Appendix 2 - Local and National Circumstances 18 Population and Demographics Employment and the Local Economy Financial Environment Appendix 3 - Educational Policy Context 23 Appendix 4 - Risk Assessment and management 27 Appendix 5 - College Strategies 35 Page 2 of 34

3 Introduction This Strategic Plan covers the period AY to AY The current College Strategic Plan concludes in 2013 and it is the intention to produce an annual Strategic Plan covering a rolling three year planning period. In addition to this Strategic Plan the College prepares detailed operational plans which translate the broad strategic aims and objectives of this plan into concrete actions. College Mission Statement Enriching lives through learning. Key Strategic Changes and Considerations for The College will produce an annual Strategic Plan covering a three year period on a rolling basis. The plan has been developed through an analysis of the local circumstances and the wider education policy context which will impact on the College s Strategic and Operational planning for the future. These sections are added as appendices to the plan. The most important factors driving the strategic direction of the College relate to the deficit reduction plans of the coalition government and the reform agendas being pursued by Department for Education (DfE) and the Department for Business, Innovation and Skills (BIS). The deficit reduction plans of the coalition government are impacting on the overall funding available through government and the College s main funding bodies the Skills Funding Agency (SFA) for 19 plus years and the Educational Funding Agency (EFA) for 16 to 18 years which is coupled with the aim to make the beneficiaries of education, employers and students, contribute more to the cost through fees and contribution rates. Both the DfE and BIS are pursuing significant reform packages and this inevitably impacts on the strategic direction of the College given the dependency on government funding. In addition to responding to the government s reform agenda and public sector spending plans the College is seeking to achieve continuous quality improvement, secure the long term sustainability of the organisation and ensure it continues to effectively meet the needs of the community and its students now and in the future. The following table identifies the strengths of the College and areas where further improvements can be made along with threats and opportunities which influence the College during the planning period Page 3 of 34

4 Strengths Ofsted rating good with outstanding features (Nov 2010) QAA Review full confidence in Higher Education provision (July 2012) SFA financial rating Range and depth of the curriculum Reputation welcoming and effective Partnership and collaborative working Apprenticeship provision Work with employers and the unemployed through Tyro Training Community partnership and provision Governance, leadership and management Attractive location and campus Connections to West Yorkshire and the Leeds City Region Innovative, well qualified, vocationally experienced and enthusiastic staff Student support and guidance arrangements. Potential Opportunities Development of provision out-with the Craven area using Tyro (North Yorkshire, West Yorkshire and East Yorkshire (Tyro Scarborough)) and the LBIA Aviation Academy Explore the development of centres of excellence in Digital Media, Aviation and Tourism, Land-based Industries and Catering and Hospitality Exploit the manufacturing base of Craven and the Aire valley by developing engineering provision Further exploit the College s excellent reputation and performance in relation to Apprenticeship provision in partnership with key local employers Exploit new structures and freedoms in relation to new forms of schools, Academy Sponsorship and vocational programmes for full-time 14 year old students and other students. Further develop A Level provision to make Craven College the student centre of choice for the Craven and travel to Craven area Exploit the curricular freedoms provided by the implementation of Study programmes for year olds Expansion of Higher Education provision part-time and full-time Provision to meet the needs of those students who come within the scope of the new Raising of the Participation Age (RPA) legislation Work with North Yorkshire County Council to meet the requirements of high needs students with Learning Difficulties and Disabilities (LDD) and the associated Hub developments. Areas for Further Improvement Improving student success rates from good to outstanding Improving learning and teaching from good to outstanding Improving compliance and consistency across the College Further development of accommodation, information technology, equipment and student social space Improving business processes to enhance the user interface with the College and operational efficiency Increasing efficiency to fund improvements and cope with funding pressures. Potential Threats The Craven demographic Reduced government spending and funding levels from the Educational Funding Agency (EFA) and Skills Funding Agency (SFA) New and additional providers Local further education colleges Leeds City College, Shipley, Nelson and Colne, Burnley, Kendal Funding reform : o EFA and SFA funding models o Student response to fees and Student Loans including Advanced Loans o Transfer of Adult Skills Funding to other providers including employers o Additional Learning Support (ALS) and Higher Needs support for students. Page 4 of 34

5 Strategic Goals and Enablers and Key Performance Indicators The College s strategic goals and enablers for the period are as follows and are designed to reflect the educational needs of the Craven and travel to Craven area and the College s mission statement. Strategic Goals 1.0 Quality, Excellence and Innovation 1.1 To deliver, good value, high quality, learning for all students resulting in high success rates. 1.2 To establish centres of learning excellence in key curriculum areas which support needs of the Craven and travel to Craven area. Key Performance Indicators Student retention and achievement Ofsted inspection outcome QAA Review outcome Student and employer satisfaction surveys Proportion of lesson observations graded as outstanding Internal audit findings Feedback from student focus and discussion groups Achievement of awards and standards Effectiveness of performance management system and procedures 2.0 Skills and Employability 2.1 To ensure students develop the necessary knowledge, skills, aptitudes and abilities to: Secure, retain and develop career opportunities through employment Effectively contribute economically and socially to the Community. Key Performance Indicators Student success data Student and employer satisfaction surveys Engagement with employers, employer organisations and Awarding Bodies Proportion of students progressing between levels in the College and to higher education from the College Proportion of students progressing into relevant employment Page 5 of 34

6 Strategic Enablers 3.0 Partnership and Collaboration 3.1 To partner and collaborate with those in the compulsory, further and higher education sectors in order to capitalise on the new education opportunities and to develop and deliver a coherent, high quality, cost effective education and training service to the Craven and travel to Craven area. Key Performance Indicators Quality and range of partnerships and collaborations with key stakeholders Sponsorship of an Academy Higher Education enrolments and progression data. 4.0 Finance and Facilities 4.1 To implement the College s accommodation and facilities strategy to support the delivery of high quality learning and teaching and student outcomes, promoting sustainability and respect for the environment. Key Performance Indicators Successful implementation of the College Accommodation and Estates Strategy Reduction in carbon emission and consumption of non-renewable resources 4.2 To implement a financial strategy that secures the longer term financial sustainability of the College and the achievement of the College s strategic aims. Key Performance Indicators Achievement of EFA and SFA funded activity targets Achievement of HE control number targets SFA Financial rating maintained Achievement of annual operating surplus Annual growth in the contribution of non-funding body income to the College Accommodation and Estates development and Technology Strategy fully funded and implemented. 5.0 Equalities and Inclusion 5.1 To promote equality of opportunity for all learners and staff, and advance social inclusion by removing barriers to learning. Key Performance Indicators Staff and student origins representative of College s service area Recorded instances of grievances, incidents and complaints of discrimination Enrolments and success of students from disadvantaged and hard to reach groups and areas Numbers of students form disadvantaged groups accessing the curriculum Allocation of Additional Learning Support (ALS) funds Page 6 of 34

7 Strategic Goals and Objectives QUALITY, EXCELLENCE AND INNOVATION 1.1 Strategic Goal To deliver, good value, high quality, learning for all students resulting in high success rates Continue to: Improvements and developments: a) Ensure the College s Human Resources Strategy and Staff Development Strategy is implemented so that staff who impact directly on the student experience have the necessary up to date skills and qualifications to enable them to consistently deliver high quality learning and effective support to all students. b) Ensure that the Senior Management Team, Divisions and Departments undertake ongoing performance reviews and an annual Self-Assessment Review (SAR) to measure College performance against the Ofsted Common Assessment Framework (CIF) and published benchmarks. c) Ensure the College continues meets the requirements of the Ofsted Common Inspection Framework (CIF, the requirements of awarding and funding bodies and the requirements of QAA. d) Ensure that up to date, cost effective, innovative and inclusive teaching methods are deployed effectively by all Divisions. e) Ensure that effective performance management procedures and support processes are in place to effect continuous and measurable improvements in the quality of learning and teaching. f) Ensure effective collaboration between teaching departments and support teams to support students progress and success. Implementations and actions: Key actions to address improvements and developments: 1. Implement changes and improvements in the support and appraisal of new and existing teaching staff to achieve higher and more consistent standards in the quality of learning and teaching and student support and academic guidance across the College. 2. Ensure the lesson observation process is used to identify and drive support and staff development needs across the College and for individual staff. 3. Implement changes to teaching qualifications in response to the government s report Professionalism in FE. 4. Develop Programme Delivery Guidelines and the systematic sharing and dissemination of good practice to support and guide quality improvements within individual teaching teams and between teaching teams and support teams. 5. Further develop approaches to obtaining and using student, employer and other stakeholder feedback to inform quality improvement actions. 6. Establish a clear framework of quality improvement targets supported by close monitoring and development of action plans where required. Page 7 of 34

8 Strategic Goals and Objectives Strategic Goal: To establish centres of learning excellence in key curriculum areas which support the needs of the Craven and travel to Craven area Improvements and developments: Key actions to address improvements and developments: a) Develop further areas of the curriculum where the College is able to or has already established competitive advantage in the region or nationally. 1. Investigate and plan the expansion, subject to available funding of activity in the curriculum areas of Digital Media, Aviation and Tourism, Land-based Industries and Catering and Hospitality. 2. Develop the College s A level provision further to exploit the equalisation of funding between schools, sixth form colleges and general further education. 3. Develop the capacity of the College to undertake and utilise market research to support and inform curriculum developments. 4. Review the College s provision and curriculum to ensure appropriate emphasis on literacy, numeracy and development science, technology, engineering and mathematics (STEM) subjects Page 8 of 34

9 Strategic Enablers and Objectives SKILLS AND EMPLOYABILITY 2.1 Strategic Goal: To ensure students develop the necessary knowledge, skills, aptitudes and abilities to: Secure, retain and develop career opportunities through employment Effectively contribute economically and socially to the Community Continue to: Improvements and developments: a) Ensure that, where appropriate curriculum and programme design are informed by national and local market research which identifies local, regional and national skills needs and develop and promote courses in skills shortage areas. b) Work in partnership with employers to offer flexible work-based and workplace education, training and assessment opportunities which meet the needs of employers, employees and those seeking employment. c) Support the unemployed in improving their chances of finding work, especially those with few or no qualifications or specialist vocational skills, by providing relevant and accessible training. d) Ensure the College programmes are reviewed and revised to meet the government s proposals for study programmes for year olds and in response to legislation related to Raising the Participation Age (RPA). e) Support the local economy and understand the needs of employers and sectors of local business by liaising closely with local employers. f) Engage employers in programme design to ensure appropriate technical and employability knowledge and skills are built into programmes. g) Ensure that the College records and monitors the post course destinations of learners to provide evidence of the successful progression of students to employment and further learning. Key actions to address improvements and developments: 1. Review the design of study programmes to ensure the new design rules are implemented for the benefit of students and are compliant with the new funding methodology. 2. Review and improve the College s processes for formally and informally engaging with employers and employer representative groups to ensure the curriculum and study programmes support the needs of employers and the employability of students and the College s apprenticeship programme continues to expand. 3. Improve the arrangements for tracking student progression from the College to further study and or employment to reflect the change in the emphasis from measuring student success to measuring student progression. 4. Investigate the potential to exploit the manufacturing base of Craven and the Aire Valley through the provision of more engineering training. Page 9 of 34

10 5. Review the College curriculum to ensure it meets the needs of students falling within the Raising of the Participation Age legislation who did not stay on at school or progress to further work based or College based study Strategic Enablers and Objectives PARTNERSHIP AND COLLABORATION 3.1 Strategic Enabler: To partner and collaborate with those in the compulsory, further and higher education sectors in order to capitalise on the new education opportunities and to develop and deliver a coherent, high quality, cost effective education and training service to the Craven and travel to Craven area. Continue to: Improvements and developments: a) Develop and collaborate in local and regional partnership activity with other public sector bodies such as Higher York, Local Enterprise Partnerships, Job Centre Plus (JCP) and Craven District Council (CDC). b) Develop close relationships and co-operate with local schools and local education authorities to provide curriculum enrichment and vocational opportunities on a full cost recovery basis. c) Work in partnership with local schools to provide impartial Information and Guidance (IAG) advice to students and pupils relating to progression opportunities from school and college to further and higher education. d) Work with the European Union and other institutions in European countries to attract sources of income to enhance the breadth and scope of the curriculum on offer through the College. e) Work in partnership with specialist providers, key stakeholders and employers to assess community and economic needs, identify gaps and develop appropriate provision and outreach to meet demand. f) Co-operate with local schools, local authorities and the Office of the School Commissioner to explore opportunities for Academy Sponsorship and the development of alternative educational structures to, where possible, enhance and support the quality and choice of education and training provision within Craven and the travel to Craven area. g) Work in partnership with Universities to develop the College s and partners Higher Education provision and the College s Further Education Level 3 provision to develop effective local provision of Higher Education and seamless progression opportunities. Key actions to address improvements and developments: 1. Work with partners to develop an Educational Trust to support the government s development of school Academies and the opportunities to create even better and more cost effective educational provision in the Craven and travel to Craven area including the provision of full-time vocational programmes for year olds. 2. Work with HE partners to develop mutually supportive curriculum provision and progression routes to further expand the College s HE provision. Page 10 of 34

11 Strategic Enablers and Objectives FINANCE AND FACILITIES 4.1 Strategic Enabler: To implement the College s accommodation and facilities strategy to support the delivery of high quality learning and teaching and student outcomes, promoting sustainability and respect for the environment Continue to: Improvements and developments: a) Implement the Estates Development Strategy agreed by the Board of Governors to provide optimum, quality accommodation and facilities to serve the needs of both students and staff. b) Increase the efficiency of utilisation of the College s accommodation and facilities to improve the financial performance of the College and contribute to generating an accounting surplus for transfer to reserve or to support capital spending. c) Improve and develop the College s accommodation, equipment and ICT infrastructure to meet the aims of the Estates Development Strategy, the ICT Strategy and the needs of the curriculum and learning and teaching. d) Increase the environmental sustainability of the College s operation whilst reducing the impact of the College s activities on the environment and increasing the resource efficiency of the College. Key actions to address improvements and developments: 1. Implement the College Estates Development Strategy and ICT Strategy to ensure the College s accommodation and ICT provision supports high quality learning and teaching and student satisfaction. 2. Implement an annual cycle of capital equipment purchase and minor capital improvement works that supports the development of the curriculum, high quality learning and teaching, improved operational efficiency and ensures a high standard of maintenance of current and future buildings. 3. Review the College calendar, timetabling arrangements and accommodation allocation to ensure high utilisation and occupancy rates and to remove surplus accommodation from the College s portfolio or provide opportunity for expansion with no additional accommodation. 4. Develop and implement a carbon output reduction plan to reduce CO2 output by 15% over 5 years and reduce operating costs. Page 11 of 34

12 Strategic Enablers and Objectives Strategic Enabler: To implement a financial strategy that secures the longer term financial sustainability of the College and the achievement of the College s strategic aims Continue to: Improvements and Developments: a) Establish and operate financial budgets that support the achievement of the College s Strategic Aims and Objectives. b) Review the College s portfolio of courses to ensure financial viability and that programmes meet the revised funding systems being implemented by the Skills Funding Agency (SFA) and the Educational Funding Agency (EFA) in AY and the introduction of student loans by the SFA in AY c) Develop further electronic business processes that reduce costs, increase value for money, improve the student and customer experience, improve the productivity of staff and contribute to the financial reserves of the College. d) Increase the level of profitability or contribution to fixed costs from commercial and project funded activities and additional sources of income. e) Meet the targets for College student activity to ensure funding allocations from the funding bodies and fee income are met or exceeded. Page 12 of 34

13 Strategic Enablers and Objectives Key actions to address improvements and developments: 1. Improve the quality and availability of management information (financial and non-financial) available to managers to support effective management of resources, budgets and the quality of provision and the monitoring and correction of performance. 2. Implement and develop a detailed curriculum planning process to ensure the curriculum meets the needs of stakeholders, achieves funding targets and achieves the necessary levels of efficiency to meet financial targets. 3. Improve to 20% the contribution to fixed costs from Tyro Training, Project funding and full cost activities. 4. Review business processes within the College and develop a work plan to reduce duplication and use technology to support more cost effective and user friendly processes. 5. Investigate and exploit the following areas of potential curriculum development for the College: Developing provision out-with the Craven area using Tyro (North Yorkshire, West Yorkshire and East Yorkshire (Tyro Scarborough)) and the LBIA Aviation Academy Exploring the development of centres of excellence in Digital Media, Aviation and Tourism, Land-based Industries and Catering and Hospitality Exploiting the manufacturing base of Craven and the Aire Valley by developing engineering provision Exploiting the College s excellent reputation and performance in relation to Apprenticeship provision in partnership with key local and regional employers Vocational programmes for full-time 14 year old students and other students Expanding A Level provision Expanding Higher Education provision part-time and full-time Developing provision to meet the needs of those students who come within the scope of the new Raising of the Participation Age (RPA) legislation. Page 13 of 34

14 Strategic Enablers and Objectives EQUALITIES AND INCLUSION 5.1 Strategic Enabler: To promote equality of opportunity for all learners and staff, and advance social inclusion by removing barriers to learning Continue to: a) Ensure all necessary statutory equality and diversity information is monitored and reported effectively. b) Implement the College s Single Equality Action Plan to promote good relations and respect between people covered by the protected characteristics. c) Work with partners in the public and voluntary sector to provide learning opportunities for educationally disadvantaged groups, including those with disabilities, and looked after young people. d) Remove, as far as is reasonably possible, barriers to accessing the curriculum, and progressing within it, whilst maintaining appropriate awarding body standards. Key actions to address improvements and developments: Improvements and developments: e) Develop and Promote programmes, initiatives and projects which increase participation of people located in specific areas categorised as deprived and those individuals who are at risk of not being in employment, education or training. f) Promote wider access and inclusion by providing a suitable range of technologies and support in the College for educationally disadvantaged groups accessing the curriculum. g) Ensure appropriate impartial pre-entry guidance is available for those in educational disadvantaged groups at risk of non-participation and of under achievement in education. 1. Seek and secure additional partners and funding sources to access and work with those who are or at risk of at risk of becoming not in employment or training e.g. European Social Funding. 2. Increase investment in assistive technologies for students who face barriers to learning or students who have LLDD needs to support independence in learning. 3. Develop new flexible learning delivery models to allow students access to learning in non-traditional ways and that allows them to study at their own pace. 4. Further develop, in partnership with schools, provision of independent advice and guidance for school pupils and College applicants. 5. Work with North Yorkshire County Council and other local authorities to meet the requirements of high needs students with Learning Difficulties and Disabilities (LDD) Page 14 of 34

15 Appendix 1 Recent Developments and Achievements This section highlights some of the significant developments and achievements within the College since the Strategic Plan was published. Future plans will be updated on an annual basis. The College s estate has been developed significantly over the last three years to reduce operating and maintenance costs and provides improved learning and teaching accommodation for staff and students. In September 2011 a new 2,300m 2 three storey teaching block was completed at the Aireville campus of the College. The building included a main reception, new science laboratories, general purpose classrooms, offices, computer rooms and an assembly hall and performance space and has made a very significant contribution to the development of the College. The development of this building has freed space within the College s High Street campus and allowed the transfer of administrative functions such as finance, human resources and management information service from the Skipton Coach House, and the release of property for sale. In summer 2011 the College childcare nursery was closed and the building released for sale. In summer and autumn 2012 the High Street campus was redeveloped to accommodate the College s Hair and Beauty department and to provide new and modern hair and beauty salons. This has allowed the College to concentrate the services it offers to customers (hair salon, beauty treatments, and restaurant meals) within one location, with an attractive reception area directly on to the Skipton High Street to attract customers, and provide excellent work experience and learning opportunities for students. This development has allowed the College to dispose of the Old Fire Station and discontinue the lease on the Victoria Street premises in the centre of Skipton. Improved facilities for students have been provided as follows: Redeveloped and improved student catering facilities at the Aireville Campus Increased workshop space at the Snaygill campus for the Division of Construction and Heritage Skills, and Improved practical accommodation for animal care, automotive and agricultural engineering students at the Auction Market campus. The number of students in AY was 1683, which was under the target number of The funding achieved for these students was 6.537m compared with the funding allocation of 6.97m in AY Recruitment of full-time learners in AY has increased and it is anticipated that the College will fulfil its funding allocation from the Educational Funding Agency (EFA) and receive increase funding levels in AY to reflect the lagged funding model used by the EFA. The Adult Skills Budget (ASB) for 19 plus learners and adult apprenticeships was exceeded and the College received an additional allocation of funding, taking total funding available to approximately 3.315m. The funding achieved from the ASB budget from the Skills Funding Agency was 3.150m against an initial allocation of 3.165m. The funding allocation achieved for apprenticeships in AY was 1.2m against an initial allocation of 1.051m this continues a long term growth trend in this area of College activity. High quality learning and teaching is important in ensuring that students maintain their attendance on programmes and achieve successful outcomes. Rigorous processes are in pace - lesson observation and professional support and mentoring along with performance management processes to ensure Page 15 of 34

16 staff continue to deliver high quality learning and teaching. Student success rates have increased by 1% overall in AY compared to AY for students attending long programmes. Apprenticeships continued to perform above the national average in AY with the following success rates: Age Category Overall Achievement Timely Achievement National Craven College National Craven College % 88.7% 65.3% 80.5% % 93.2% 67.3% 86.7% % 89.5% 62.6% 70.6% Overall 76.5% 90.2% 65.5% 81.4% Work Place Learning results are also good for AY with 91% for overall success, and timely in the region of 85% which is a further improvement on the previous year s figures of 86% overall and 73% timely. Following on from the successful Ofsted Inspection - Good with Outstanding Features the College was subject to a Quality Assurance Agency (QAA) review of the College s Higher Education provision known as an Institutional Quality Enhancement Review (IQER). The outcome of the review was extremely positive and confirmed that confidence can be placed in the soundness of the College s current and likely future management of the academic standards of its awards, and confidence can be placed in the soundness of the College s current and likely future management of the quality of the learning opportunities available to students. The report also recorded a high number of examples of good practice exhibited by the College. The College, through its Project Funding Team and Tyro Training, continues to develop important partnerships locally and across the Region including the Aire Valley and North Yorkshire. This includes attracting funding from a range of project funds including the European Union. Examples include c 0.4m Leonardo funding to support 5 European work experience exchange projects for full-time students and European Social Funding (ESF) of 0.6m for Skills Support for the Unemployed (SSU). Tyro delivers wide ranging programmes to support the unemployed in improving their chances of finding work, especially those with few or no qualifications or specialist vocational skills, by providing relevant and accessible training which is a key national priority given the current state of the national economy. The College is widely recognised as a very high quality provider of these programmes which it delivers in collaboration and partnership with a wide range of organisations and providers throughout the region and is seen as key strength of the College. The College continues to maintain a range of external awards and kite marks to test its service against nationally recognised standards. Support Services achieved the matrix standard in October 2010 and the report noted that Support Services make a significant contribution to individuals and organisations throughout the area, with committed staff totally dedicated to maintaining its core values. The College achieved Investors in People accreditation in November 2011 and this identified a number of areas of good practice. Positive feedback from staff include: Craven College is a very good employer, and has always recognised and valued its staff. The Disability 2 tick symbol re accreditation, emphasising the College s commitment to the equality of opportunity for disabled staff, was achieved in Page 16 of 34

17 Appendix 2 Local and National Circumstances Craven College is a medium sized general further education college situated in the Craven District of North Yorkshire at Skipton, which is known as the gateway to the Yorkshire Dales National Park. The College also has activity based in North Leeds at the Leeds Bradford International Airport (LBIA) and through a training and work based learning operation at Seamer near Scarborough, some 80 miles east of Skipton. The College serves the educational and training needs of individuals, communities and business in North Yorkshire, East Yorkshire, East Lancashire and the Aire Valley corridor to Bradford. The College service area is extensive and ranges broadly in term of population density. The College curriculum is broad and offers a wide range of subject areas, modes of attendance and work based training opportunities throughout the Craven and travel to Craven area. Competition from local schools for provision is significant as Skipton retains a selective Grammar school system and there are a number of local competitor colleges within the main population centres from which the College draws. Craven College is reliant on attracting sufficient students to its Skipton campus from areas which would be considered to be within the service area of competitor colleges. Population and Demographics Craven had a population of 56,300 in 2011 and is in the top 10 most sparsely populated areas in England with a population density of 47 people per square kilometre compared with 245 people per square kilometre for England as a whole. Craven covers 1,177 square kilometres and comprises 15% of the physical area of North Yorkshire. The population of Craven is expected to rise to 60,900 in 2021, a rise of 8.2%. The population of Yorkshire and Humber is 5.25m in 2010 and is predicted to grow by 6.3% to 5.58m in In Craven, 14% of the population are aged compared to 20% for the United Kingdom as a whole. Those over 50 years make up 46% of the population and those over 65 make up 23% of the population. Craven has a net out-migration of year olds and in-migration of older people. Over the period from 2011 to 2021 the number of year olds is projected to fall from 7,800 to 7,400 (-5.4%) and become 12.1% of the population. However, the population projection for 0-14 years is predicted to rise from 8,500 to 8,700 (+2.4%). In contrast the United Kingdom population of year olds is set to fall by 3.5% between 2011 and 2021 and the population of 0-14 year olds to rise by 12.5% during the same period. These population trends highlight the need for Craven College to continue to attract students from out-with the Craven area or develop provision within other areas and districts. Employment and the Economy Total employment in Craven is estimated at 25,900 with an employment rate of 75.6% compared to 67.8% in Yorkshire and Humber and 70% in the United Kingdom as a whole showing that despite the recession the local labour market remains strong. Of those in employment in Craven 15.4% are selfemployed which is higher than the national average. During the economic recession unemployment has risen within Craven and stands at 5.3% compared with 9.5% in Yorkshire and Humber and 7.9% in the United Kingdom. The Craven area has lower rates of long-term unemployment and lower rates of unemployment amongst under 25 year olds. Page 17 of 34

18 Gross weekly average pay for full-time employees in Craven is 480 per week compared with 465 in Yorkshire and Humber and 503 in the United Kingdom. Of the economically active population in Craven 78.4% have a NVQ Level 3 qualification and above compared with 73.8% in Yorkshire and Humber and 82.3% for the United Kingdom as a whole. Overall the Craven economically active population is relatively well qualified and has relatively high wage levels compared with Yorkshire and Humberside. However, the proportion of people in Craven with no qualification has increased in recent years in contrast with Yorkshire and Humber and the United Kingdom. Craven comes within the area and economic influence of the Leeds City Region and the Aire Valley corridor and the excellent communication links between Skipton and these two areas. Traditionally agriculture has been one of the main features of the Craven economy and remains important. However, over time the local economy has become more diverse as employment in agriculture and business linked to farming has declined. The table below shows the shows the distribution of employees by industrial sector for Craven, Yorkshire and Humberside and the United Kingdom. Employees by Industrial Sector Craven Yorkshire and Humber United Kingdom Manufacturing 9.3% 13% 10.2% Construction 6.5% 5.2% 4.8% Distribution, hotels and catering 27.4% 23.5% 23.4% Transport and communications 2.9% 5.5% 5.8% Services Finance, IT and other businesses 27.9% 18.4% 22% Public administration, health and education 19.9% 28.6% 27% Other services 3.1% 4.4% 5.3% Tourism related 11.2% 7.7% 8.2% Overall the service sector accounts for 81.2% of employees in Craven compared to 80.4% and 83.5% respectively in Yorkshire and Humber and United Kingdom. The key sectors of the Craven economy include: Manufacturing Sector whilst this sector has declined since 2003, it remains a key sector of the economy with 9.3% of the employees. Manufacturing is particularly important within the South Craven area. The manufacturing sector includes some large international manufacturing companies such as Systagenix and Kiddie Products. Manufacturing is relatively strong in Yorkshire and Humber and this is replicated in East Lancashire and the Aire Valley which are key service areas for the College. Engineering is under represented in the College curriculum. Visitor Economy Sector accounts for the largest proportion of Craven s businesses, especially within the remoter rural areas. Banking, Finance and Insurance Sector this area has experienced significant growth since 2003 but has declined since the 2008 financial crisis. However, this sector accounts for the highest proportion of total employment within Craven and is high relative to the Region. Agriculture and Land-based Industries forms a significant part of Craven s economy, particularly within the remoter areas of Grassington, Wharfedale and North Craven, accounting for the majority of self-employment in these areas. Page 18 of 34

19 Public Sector covering health and social care, education and public administration is relatively low for Craven but much higher in Yorkshire and Humberside. Construction Sector 6.5% of the employment in Craven is in construction which compares favourably with Yorkshire and Humberside and the United Kingdom. However, the construction industry continues to face challenging times. The construction businesses in the Craven area are in the main small and medium sized enterprises (SMEs). The majority of businesses in Craven are small with 72% employing fewer than four people and this account for 16% of employment. If self-employed are included then 38% of jobs are in enterprises employing fewer than five people. In Craven 2.2% of firms employ more than 50 people and lie within Skipton and the South Craven area. Craven College interacts with two Local Enterprise Partnerships the Leeds City Region Partnership and the York/North Yorkshire/East Riding Partnership. The location of Craven College is awkward in terms of local authority and LEP boundaries and the interpretation of economic and employment data. However, the York and North Yorkshire economic assessment has a useful categorisation called West Yorkshire Connected and is the area of North Yorkshire with good communication links to the conurbations of West Yorkshire and a second area called Dales. The key points for the West Yorkshire Connected area are: Experienced exceptionally high employment growth of 43% in the period 1993 to 2008, across most sectors and continuing to grow Very high growth and dependence on finance and business services and high levels of manufacturing employment Growth in hospitality, retail and business tourism sector High levels of activity and low levels of benefit claimants Highly skilled and qualified resident population. The key points for the Dales area are: Exceptionally high growth in employment but now static Significantly high levels of self-employment Half of all jobs in micro-enterprises High dependence on visitor economy jobs and business and agriculture. In terms of Leeds City Region the following are predicted as changes in employment patterns between 2011 and 2015: Employment Area Sector Share (%) Change (%) Employment Area Sector Share (%) Change (%) Health Metals Business Services Other Manufacturing Retailing Machinery and Equipment Education Rubber and Plastics Hotels and Catering Textiles and Clothing Other Services Electrical and Optical Equipment Page 19 of 34

20 Wholesaling Agriculture, Forestry and Fishing Banking and Insurance Minerals Construction Gas, electricity and Water Public Admin and Chemicals Defence Transport Transport Equipment Paper, Printing and Wood and Wood Publishing Products Food, Drink and Tobacco Other Mining Other Financial and Fuel Refining Business Services Communications Oil and Gas Extraction Financial Environment The College is funded from a number of sources depending on the work it undertakes. However around 11m of the 15.5m income is derived from the Educational Funding Agency (EFA) and the Skills Funding Agency (SFA) with the balance from fees, partnerships, projects and the Higher Education Funding Council England (HEFCE). The EFA funds the College s years provision and the SFA funds those over 19 years and manages the EFA funding for apprenticeships. The EFA money comes from within the Department for Education (DfE) and the SFA money comes from within the Department for Business, Innovation and Skills (BIS). The EFA funding model is a lagged funding model in that growth is funded the following year or clawed back the following year. The SFA funding is subject to possible in-year variations or claw back at the end of the year. Therefore recruitment of the funded level of students is crucial to the financial stability and sustainability of the College. Capital funding is provided to colleges by the SFA most recently through Renewal and Enhanced Renewal grants whereby the college is required to provide 2 for every 1 provided by the SFA. The 2010 Spending Review set out how the Coalition government was to carry out its deficit reduction plan. The Spending Review set out the spending plans for each of these departments from financial year through to for revenue and capital spending. The Institute of Fiscal Studies estimates that public spending on education in the United Kingdom will fall by 3.5% per year in real terms between and The Institute predicts this would return education spending as a share of the national income back to 4.6% by from a high of 6.4% in In cash terms capital spending over the Spending Review is reduced by 50%, funding reduced by 8% and 19 plus further education and skills reduced by 25%. A variety of programmes such as the Employer s Ownership of Skills will also transfer some of the remaining funding from colleges to employers. A system of Advanced Loans will also the transfer of some funding from colleges to the Student Loans Company which may come back to the College if students take out the loans and the assumed fee level is achieved. The savings in the education budget for year olds will be 1bn over the period of the 2010 Spending Review and will have come from a freeze on funding rates, reductions in funding rates for Page 20 of 34

21 sixth form colleges down to the college rate and replacement of the Educational Maintenance Allowance with bursaries. The savings in the skills budget will come from the reduction in categories of students entitled to remitted fee and the assumption that those fees will be recovered from the student, the introduction of Advanced Loans for those over 24 years of age and a freeze or cut in rates. The budgetary constraints identified above will of course create uncertainty for colleges and make financial planning and budgeting difficult. The difficulties are compounded by the introduction of full cost fees for Higher Education and the introduction of new funding methodologies in AY from both the EFA and SFA. The deficit reduction plans announced in the 2010 Spending Review were predicated on a level of GDP growth. However, the actuall GDP growth has been significantly more modest than predicted with the economy expected to contract in 2012 as part of a double dip recession. It may be that the next Spending Review will be brought forward to address the level of government spending being in excess of that planned. The financial position for the College over the planning period will be challenging and careful choices will have to be made about how the available resources are used to best meet the needs of students and the economy. Given the level of reduction in funding for colleges it is inevitable there may be some impact on the level of activity and/or the quality of service. The College is working to adjust expenditure in line with the lower level of funding in such a way as to minimise the impact on the level of service it provides. The College will reduce its expenditure on supplies and services, improve the efficiency of curriculum delivery through better utilisation of teaching staff and improved class sizes and rationalise the College estate to make better use of accommodation and, where possible, remove accommodation from the cost base. AY saw the last students who were eligible for support through the Educational Maintenance Allowance (EMA) and the transfer to a less generous bursary support system. There are also significant changes taking place in the benefit system which will impact on the financial position of students and their families and the ability to sustain attendance at College and the associated travel costs. These changes include reforms to Council Tax Credit and Housing Benefit along with the roll out of the new Universal Credit, all of which are less generous than at present. Overall the demographic for the College and the position relating to public spending creates challenging times during the planning period. However, through ensuring the College curriculum meets the needs of its service area it can most effectively exploit the potential to ensure student numbers remain buoyant or expand during the planning period. Page 21 of 34

22 Appendix 3 Educational Policy Context The College s Strategic Plan has been formulated within the context of a rapidly changing policy framework for further and higher education in England following a change in government in These changes in policy have required colleges to respond quickly to change and also make plans within a context of considerable uncertainty in relation to funding and the impact of fees on prospective and future student demand. The Education Act 2011 enacted many of the major proposals in the autumn 2010 White Paper The Importance of Teaching. The Education Act 2011 introduced changes to the Governance arrangements for colleges which though not changing the principal powers of further education corporations allow more freedom in the exercising of these powers. For example Corporations no longer need the permission of the Secretary of State to borrow money, and the removal of the power of the Secretary of State to dissolve an FE Corporation. However, the power of intervention remains if a college is in serious difficulty. Subject to basic minimum requirements the Corporation may change its Instruments and Articles of Government. The new arrangements give the potential for greater responsibility. In April 2012 the Young Person s Learning Agency (YPLA) was replaced by the Educational Funding Agency (EFA). The YPLA had been solely concerned with the funding of years education whereas the EFA funds education from 3 to 18 years and has extended its scope to include funding to Academies and other forms of new schools with pupils aged 3 to 16 as well as funding to all education. The government policy in relation to new types of schools is potentially increasing the level of competition from alternative providers through the setting up of new forms of schools such as Studio Schools, Free Schools and University Technical Colleges (UTCs). Studio Schools and UTCs offer a vocationally orientated provision and work experience that directly competes with further education colleges. The Academies movement and the development of Free Schools may tend to increase the level of 6 th form provision across an area and distribute the number of years students across a greater number of providers and thereby increasing competition and potentially reducing the College s funding. A number of fee paying schools are transferring to Academy status and therefore being funded by the EFA which further stretches the available funding. The Academies programme does create the opportunity for the College to become an Academy Sponsor and the College has applied to be assessed as a potential Sponsor. A school may be required to become an Academy due to a poor outcome from an Ofsted inspection or may opt to become an Academy if graded good or better by Ofsted. The opportunities created through the Academies programme and the potential for the College to work with local schools as a sponsor opens up a range of options to work together to provide high quality cost effective education that meets the needs of the community and provides more effective transition between school and further study. Additional opportunities to collaborate with schools and Pupil Referral Units (PRUs) may arise if the government s proposal to allow further education colleges to enrol full-time 14 year olds comes to the statute book. Through partnering with other providers such as schools, perhaps through the structure of an Educational Trust, the College is able to exploit the potential to share back office functions and spread fixed costs and thereby devote a high percentage of its income to deliver high quality education and training to both students and pupils and better meet the needs of Craven. Page 22 of 34

23 An important element in ensuring that young people at school understand the opportunities available at College and other providers is the provision of good quality Information and Guidance (IAG) to young people. The Education Act 2011 brings in a new duty for schools to secure independent, impartial careers guidance for all pupils in year 9, 10 and 11 from September 2012 following the closure of the Connexions service and its replacement with a National Careers Service. To ensure the advice is impartial the College has employed an IAG advisor in partnership with a group of local schools to ensure a high quality service is provided to young people and their best interests served. In June 2011 the government published Putting Students at the Heart of Higher Education which covered reforming funding, delivering a better student experience and removing barriers for new Higher Education providers. The College s full-time and part-time provision of Higher Education has developed over the past few years in partnership with local universities. As from September 2012 students will pay the full fee financed through a student loan system. The College was successful in obtaining an additional number of directly funded places through a process of core and margin bids and the development of Higher Education within the College is a key area for further development. The IQER assessment of the College showed that the College s Higher Education is of very high quality and students can be confident of the excellent standards of this provision the College provides. Further opportunities to bid for additional numbers will be available over the planning period and the opportunities to expand the College s provision of Higher Education and to ensure its provision provides good progression locally for those students who may wish to develop their Foundation degree into an Honours degree. Following on from the publication of Professor Alison Wolf s Review of Vocational Education (March 2011) a number of reforms are taking place during the planning period. Professor Alison Wolf argued that the current system for education prevents young people leaving with the qualifications they need for work and study. Professor Wolf s proposals emphasised the need for coherent programmes which will stretch students and give them genuinely new skills and a concern that the current funding system unintentionally but powerfully dissuaded providers from offering Maths and English GCSE to the millions of young people without a C grade. also making it impossible to develop innovative programmes involving substantial work experience. Wolf also believed that the funding model for encourage providers to pile up large numbers of qualifications. The College will be required to undertake a significant curriculum review to meet the new design rules of all its provision. Within the School s White Paper The Importance of Teaching (December 2010) the government committed to a fair and transparent funding system to underpin the introduction of the Raising of the Participation Age. Therefore in AY a new funding methodology for will be introduced to support the recommendations of Alison Wolf and the introduction of Raising of the Participation Age. At the curricular level the funding reforms will be supported through the introduction of New Principles for Study Programmes for 16 to 19-year-olds (July 2012). The planning period will also see the reform of A Levels with the first new reformed qualifications being available from August Therefore it will be a very significant period of change and uncertainty in the funding and delivery of education for which the College will need to plan very carefully in both financial and curricular terms. The new funding arrangements, RPA and study programmes will be operating for AY The planning period will also see the introduction of the English Baccalaureate (6 GCSEs including English, maths, science at A * to C grade) and the English Baccalaureate Certificate (English and maths at A * to C grade) in The planning period will see very significant changes in the funding methodology for Additional Learning Support (ALS) and funding of high need students aged The reforms will come into Page 23 of 34

24 place for AY The revised EFA funding methodology follows a funding per student model and therefore the extra 100m of ALS funding paid out over the last 2 years will be integrated into programme funding. It is anticipated that many students in need of additional learning support will benefit from the new EFA funding arrangements which encourages colleges to offer more comprehensive and tailored learning programmes, and that this will reduce the need for additional ALS funding. In relation to high needs funding (the EFA funds to age 24 in this area) the aim is to bring together all funding for those with high cost additional needs into a single system, in which local authorities will be both commissioner and funder. The purpose is to enable integrated health, education and social care plans for high needs young people and create a more level playing field, by ending the current different funding treatment for different types of institution providing for the same young people. This gives an enhanced role to local authorities and each will have a single high needs budget to cover their education funding responsibilities for all provision for high needs children and young people resident in their area. The EFA will transfer a budget to each local authority to put them in funds to perform this role, based on the current spend for high needs students resident in the relevant local authority area. For institutions, the funding for students places will in future come directly from the EFA and funds to support additional costs in excess of 6,000 from the student s home local authority. Base line data for this exercise is being collated. In November 2011 the findings of the Commission chaired by Baroness Sharp was published - Colleges in their Communities. This Commission was set up in January 2011 with the purpose of investigating the role that further education colleges can and do play within their communities, and the added public value that they can bring to those communities in their role as leaders of learning. The Commission s vision is of colleges as a dynamic nucleus at the heart of their communities, promoting a shared agenda of activities which both fulfil their central role of providing learning and skills training to young people and adults, but also reach out into their communities, catalysing a whole range of further activities. We see the college as the central player in a network of partnerships, dynamic in the sense of developing and engaging with other partners. This enables the network itself to become part of the dynamic, with colleges at its heart. The Commission made a number of wide ranging observations and recommendations which need to be considered within the planning period to ensure that the College s role within the Craven area remains strong and is clearly articulated and communicated. The new Foundation Code of Governance for colleges sets out a new norm for community engagement and requires colleges to articulate their public benefit statement. The education, training and skills agenda for 19 years plus is the responsibility of the Department for Business Innovation and Skills (BIS) and activity is funded through the Adult Skills Budget (ASB) provided to colleges by the Skills Funding Agency. In December 2011 BIS published New Challenges, New Chances in two parts - Skills Investment Statement : Investing in a World Class Skills System and Further Education and Skills System Reform Plan: Building a World Class Skills System. These publications followed on from the 2010 Skills for Sustainable Growth which set out the principles of fairness and shared responsibility which will underpin the government s investment strategy in relation to skills. The impact of these reforms over the planning period includes an increased emphasis on those aged 19-24, the unemployed and disadvantaged including those not in employment, education and training and preparing people for employment. This also provides an increased focus on apprenticeships both for and and the College continues to see strong growth in these areas along with increased levels of funding. The introduction of the incentive payments to employers as part of the Page 24 of 34

25 Youth Contract has assisted in raising the volume of apprenticeships along with the work of the National Apprenticeship Service (NAS). In December 2011 the government published Building Engagement, Building Futures which set out the Government s strategy to improve the opportunities for young people so they can succeed in education and training and gain the skills they need to secure an apprenticeship or employment. It included radical reforms to schools, vocational education, skills and welfare provision. The proposals included putting in place a Youth Contract worth 1bn to help get young people learning or earning before long term damage is done. The College has been extensively engaged in developing and delivering successful Sector Skills Academies to prepare young people for work. The impact of the proposed reforms will have a significant impact on the College and its ability to recruit 19 plus students. Overall the level of funding provided through the Adult Skills Budget will fall significantly with the student increasingly expected to part or fully fund their course. Colleges have generally found that for many programmes charging the assumed 50% co-funding fee level has not been possible. Other reforms include a new funding model for AY along with the introduction of Advanced Loans for those over 24 allowing them to access Student Loan Company finance for programmes above Level 3. The impact of Advanced Loans and increased co-funding by the student is difficult to model both in terms of the impact on demand and the level of contribution students are prepared to pay. Increasingly Adult Skills Budget funds are being top sliced to provide a range of employer led initiatives and thereby potentially reducing the level of activity in colleges; example schemes include the Employer Ownership of Skills Pilot. In June 2012 a new Common Inspection Framework (CIF) for colleges was published. The new inspection approach places a greater emphasis on the quality of learning and teaching and assessment. A college cannot overall be classified as Outstanding if these elements of the review of a college do not meet this standard. The overriding evidence to date is that this is tending to reduce the overall grades from inspection. In July 2012 an Independent Review Panel report Professionalism in Further Education was published which made wide ranging recommendations in relation to changes in teacher education for further education teachers and the associated regulations, the full impact of which remain to be assessed and assimilated. This section outlines a very extensive reform agenda for colleges both in terms of funding methodology but also in terms of curriculum. Clearly this creates uncertainty but also creates opportunities and the College needs to ensure it remains responsive to change to ensure it continues to remain financially viable but also to appropriately restructure itself to respond to changing priorities whilst continuing to deliver high quality education and training. Page 25 of 34

26 Appendix 4 Risk Assessment and Management Introduction Most of the risks facing Craven College are external rather than ones that arise from within the organisation. Some external risks can be co-managed by partnership arrangements (eg subcontractors, universities, employers, voluntary sector), others need to be addressed solely by the College. Some of the most important business risks facing the College arise from changing government priorities and the need to reduce deficit as set out in the 2010 Spending Review. Education and training policies of government and its agencies continue to undergo change which in turn impacts on the curriculum, funding and the context in which colleges operate, and the need to respond appropriately is intensifying as more radical changes are introduced. The Further Education and Skills sector is increasingly being expected to play an important role in the community helping to achieve objectives outside its more traditional educational and vocational responsibilities, and making a positive contribution to the economic climate. The sector is also expected to support the unemployed to improve their chances of finding work which, again alongside its more traditional role, presents considerable challenges for colleges. There are strong employer links across the College, with much of the direct work with employers taking place through Apprenticeships and Tyro. Whilst Apprenticeships are being seen as key to the government s skills agenda and funding is being made available to support growth, funding elsewhere within the Adult Skills Budget (ASB) continues to be reduced for 19+, including that for work with employers. Changes to criteria for funding eligibility has meant, and will continue to mean, that fewer adults will qualify for funding. In addition, funding is being diverted directly to employers through initiatives such as the Employer Ownership Pilot (EOP) and from AY student loans are to be introduced for students aged 24 or over undertaking a qualification at level 3 or above (including Apprentices). Colleges are however still charged with working with employers with the expectation that the employer will pay for training. The traditional role of the Further Education sector will continue to develop and undergo change and the College will need to prioritise its capabilities, expertise and resources in order to respond to meeting government priorities and the needs and expectations of students, employers and the local community. Policy Change Risk The College receives the majority of its funding from the Educational Funding Agency (EFA) and the Skills Funding Agency (SFA) with the priorities for its utilisation being subject to current government policy. Allocations are primarily based on previous activity levels with adjustments accommodating changing priorities. Calculating financial risk in relation to this funding is not always straightforward owing to the difficulty of assessing the impact of forthcoming changes. Shadow funding models comparing funding received in AY with funding for like provision in AY will assist in future planning. Since 2007 the college has suffered from two partner universities being unable to commit to long term relationships, due to changes of their mission creating an unwillingness to continue to engage in Page 26 of 34

27 franchise and validation activities with Further Education colleges. Partnerships with universities are therefore currently considered to be medium-high risk. The College will continue to investigate increasing other sources of income (HEFC, projects, partnership activity, fees) and to introduce new income streams towards reducing dependence on the EFA and SFA thereby spreading associated risk. This will need to be managed in relation to available resources and ensuring that the College meets its obligations to the above funding bodies. Risks relating to policy change are discussed in more detail in the Financial Environment and Educational Policy Context sections above. A further development in relation to policy change is a tougher approach from Ofsted. There is an increased focus on the quality of learning and teaching, and grades awarded for the quality of learning and teaching need to improve in order to maintain a good grade. This has resulted in a fall in grades generally for colleges recently inspected under the new regime. Financial Health Risks Given that the College is primarily a publicly funded, not-for-profit organisation, an obvious way by which the College can moderate financial risk is to establish larger cash reserves. Increasing the amount of cash available, at a time when funding in the Further Education Sector is undergoing change and reduction, is likely to involve spending less and saving more, alongside increasing revenue from sources other than the EFA and SFA. An additional challenge facing College management and governance is the need to further invest in the College estate and improve resources to ensure that the College remains attractive and competitive with regard to recruitment of future students. The College needs to continue to take advantage of grants available to support this objective, whilst remaining cognisant of the impact of the requirement to match any monies drawn down on a 2 for 1 basis. Staff salaries constitute a major cost to the College. Staff at Craven College last received a pay rise at 1 October 2008, with a one-off bonus payment being made in AY This policy cannot be maintained indefinitely and indeed, the College is seeking to achieve the position whereby salaries can be reviewed and if possible a pay rise, albeit modest, awarded on an annual basis. In order to strengthen cash reserves to maintain the financial health of the College, to allow the College to pay competitive salary and wage rates and to provide reserves to part finance capital developments it will be necessary to review income and expenditure and the extent (but not the quality) of the service provided. This will involve further reshaping of some of the College s curriculum and services to improve efficiency further, which may necessarily have repercussions for, and impact on, both College staff and the people and organisations it serves. Colleges continue to face a period of budgetary constraint and financial challenge. Needing to do more to generate revenues while minimising costs, taking into account the wider, social, educational and economic responsibilities placed upon the sector means that the College has to be flexible in its ability to respond to demands as they arise and to changes in national policy and local demand. The College will remain heavily dependent on EFA and SFA funding and will maximise opportunities to increase allocation levels, however this is an area where the College has little control. Actions by the College to increase revenue in the short to medium term will therefore also centre on those areas that can be influenced locally including ensuring all funding to which the College is entitled is claimed, further expansion of Apprenticeship provision, annual review of levels of fees charged by the College, expansion of full cost recovery activity and range of services, investigation of shared Page 27 of 34

28 resource/collaborative opportunities, partnership working and maximising opportunities presented through externally funded initiatives/projects. Review of College expenditure and cost structures will be on-going and will inform the planning process, the underlying principle being to strengthen the College s financial position. The risks relating to policy change are discussed in more detail in the Financial Environment section above. Full-time Student Recruitment Risks Craven College relies heavily on the recruitment of full-time students year olds are funded through the Education Funding Agency (EFA), the main source of income to the College, and currently in the region of 7m. Approximately 6.4m of this is programme funding with the remainder allocated for Additional Learner Support (ALS) and bursary funding. The lagged funding model means that growth in numbers of students is reflected in an increased allocation the following year. The College is therefore in a position to influence future allocations to an extent by recruiting unfunded student numbers over and above the allocation. The College will utilise this strategy to advantage where additional student numbers increase average class sizes and do not inflate staffing/delivery costs. Conversely, levels of recruitment below allocation would result in reduced funding the following year. Students of 19 years and over are funded by the Skills Funding Agency (SFA) through the Adult Skills Budget (ASB). This funding stream supports 19+ classroom provision, 19+ Apprenticeships and 19+ Work Place Learning. The current allocation is in the region of 3.1m of which approximately 535k is earmarked for 19+ Apprenticeships, a government priority for growth. The remainder can be used for classroom or workplace delivery. The most efficient way of utilising this funding is to recruit full-time 19+ students, to be taught alongside year old students. This increases average class size and minimises additional cost, whereas additional part time classroom provision (where it is likely to be predominantly 19+) and Work Place Learning incurs additional staff/delivery costs. As noted above, it is difficult to model the impact that changes to student eligibility to access funding will have on student recruitment. This is compounded by the difficulty in assessing the impact of the introduction of student loans for those over 24 undertaking qualifications at level 3 and above, in relation to both the ASB allocation (from which an amount will be deducted to fund the loan system) and student recruitment. Failure to recruit full-time students therefore poses a vital risk to the College s financial stability. This risk will continue to grow as schools try to retain students for as long as possible. The College will act to increase EFA allocations whilst seeking to minimise cost in relation to 19+ full-time delivery. Part-time Student Recruitment Risks The EFA also funds part-time provision for students. This is most likely to be additionality delivered alongside the student s main learning aim, including vocationally related qualifications, GCSEs and Essential Skills. The College has previously delivered part-time courses to groups from partnership schools, thereby utilising funding and increasing the numbers of students enrolled to the benefit of the College in relation to the lagged funding system. New funding regulations from the AY no longer allow students enrolled on full-time courses at one institution to be funded for part-time provision at a second institution. The majority of part-time courses cater for 19+ students, and are funded through the SFA s ASB allocation. Whereas EFA funding is not subject to claw back, under performance impacting on future allocations, SFA funding is currently subject to claw back outside of a 3% tolerance level. To avoid Page 28 of 34

29 clawback the College therefore needs to maximise recruitment of 19+ Apprentices, classroom and Work Place provision to within 3% of the allocation. The guidance for AY does not allow funds allocated to 19+ Apprenticeships to be vired to classroom and Work Place Learning provision, but does allow the reverse. Priority is therefore given to Apprenticeships and part time provision within the College divisions which, as for full-time, may be more cost effective if delivered alongside Outside of Apprenticeships and divisional provision, the remainder of the ASB allocation is delivered through Tyro (classroom, distance learning and Work Place Learning), community provision and subcontracting which is managed through Tyro. As with full-time provision it is difficult to model the impact that changes to student eligibility to access funding and the introduction of student loans will have in relation to both the ASB allocation and student recruitment. Again, non-achievement of the overall allocation of ASB funding through 19+ full-time, Apprenticeship, part-time classroom and Work Place Learning poses financial risk for the College in that monies outside of the 3% tolerance is subject to clawback and in that future allocations will be reduced. In order to meet ASB allocations, the College subcontracts some provision to other private training providers or community focussed organisations. This delivery is the least profitable of the options available to the College and also carries increased risk in terms of the monitoring of the activity in relation to both quality and finance. The College seeks to minimise the volume of sub-contracted activity in relation to its overall allocation. Full Cost Recovery Business Risk In recent years funding for many courses has been removed owing to changes in government policies resulting in an increase in full cost recovery provision for courses that were previously funded. This has resulted in fewer student numbers overall. Divisions offer a wide range of full cost recovery courses, although much reduced, and will continue to do so where viable, thereby serving the needs of the community. Tyro offers full cost recovery provision for employers/employees through scheduled courses at Crescent House, at the Scarborough centre and elsewhere in addition to bespoke activity. The development of this activity has been hit by the recession. The potential loss of income risk within full cost recovery is linked to the following possibilities: failure to provide options the community and businesses demand, failure to provide quality of provision, ongoing lack of investment potential from individuals and businesses (linked to the recession), competition from other providers. The College mitigates the risk by analysing competition against its own provision in order to remain competitive, ensuring quality is at the heart of provision through teaching qualification criteria and industry/vocation experience requirements, conducting market research through community partnerships, business development advisers and published labour market information thereby ensuring provision meets market needs, developing new curriculum to meet market trends, and remaining aligned to industry recognised bodies/awarding organisations, as demanded by business. Alongside mitigation of risk, these strategies will support growth in relation to share of the market and economic recovery. Page 29 of 34

30 Competition Risk Universities, Colleges, Schools, Private Providers The College is facing increased competition from other providers of education and training, although the risk from universities is not as significant as previously, universities themselves being subject to increased risk from Further Education institutions. The majority of the courses in the College s higher education portfolio do not compete directly with those universities and colleges located relatively close to Craven (the nearest HEI is 22 miles away). Most of the College courses are only available on a part-time basis, exceptions being those courses based at Leeds Bradford International Airport which are full-time, however the local universities do not offer aviation management or pilot studies. There is therefore little direct competition. Other FE colleges continue to pose a risk to Craven College with regard to the curriculum offer, accommodation and resources, quality and reputation, levels of fees and appeal of a particular college or campus to a potential student or student group. Some other local Colleges have benefitted from major new build in the last couple of years and whilst the College s Aireville Campus has been significantly improved (notably by the addition of the Pen-y-ghent building) much of the College s estate is comparatively substandard. The College needs to work within its Accommodation and Estates Strategy to remedy this position in part by making use of SFA grant monies available to support this objective, although there is the requirement to match any monies drawn down on a 2 for 1 basis. The Aireville Campus is the main College campus and there is the requirement to further consolidate onto this campus, alongside improving other sites and ensuring that all students have the best possible experience. Several local colleges achieved an outstanding grade at their last Ofsted inspection (albeit under the previous inspection regime) and the College needs to retain at least its current good with outstanding features grade to be in a position to continue promoting quality as a key reason to come to Craven College. The College is further developing strategies to improve success rates and the quality of the student learning experience in line with Ofsted measures and benchmarks. The College remains aware and monitors the activities of other local colleges in relation to the curriculum offer and fees and reviews provision accordingly. Increasing competition from schools is discussed in the section Educational Policy Context above. The College is aware that current policies regarding the schools system offer opportunities as well as threats, as also noted in the aforementioned section Private training providers have posed an increased threat in recent years and will continue to do so. Many providers, some of which are large national organisations, have held direct contracts with the SFA for a and 19+ Apprenticeship provision, and Work Place Learning. Those with contracts over 500k have retained these direct contracts and are now able to apply for funding for classroom based provision in direct competition with the FE sector. (Those with contracts below this threshold are no longer able to contract directly other than in exceptional circumstances, and most now subcontract through colleges and other, larger providers. This brings added risk through the College s subcontracting arrangements as noted above.) Private training providers continue to compete with colleges in relation to the delivery of Apprenticeships and Work Place Learning. Although there are no longer any providers working directly from premises within Skipton, there are nevertheless other providers who deliver within the Craven area. The College, however, is significantly the biggest provider of Apprenticeship activity in Craven with outstanding success rates, and will continue to monitor the activities of other providers. Apprenticeships are delivered over a wide geographical area from the Skipton centre and also from Page 30 of 34

31 the Scarborough centre and the College will seek to further promote and develop this activity in order to maintain and increase its Apprenticeship provision in line with government priorities. Private training providers are also a threat with regard to Tyro s work with employers and the College seeks to address this as noted under the section Full Cost Recovery Business Risk above. Staff Loss Risks Critical to the on-going success of the College is the retention of key staff. One way in which key staff can be retained is by ensuring that salaries and terms and conditions are competitive. Terms and conditions offered by the College are attractive and indeed exceed those of many comparable employers. However salaries, not considered to be especially generous in the past, have suffered further slippage as there has been no consolidated pay increase since The College is seeking to build and maintain cash reserves in order that salaries can be reviewed on an annual basis. The College is dependent on specialist staff that would be difficult to replace in some divisions/departments, and it might be necessary to recruit from outside the usual travel-to-work area. Remuneration is, of course, not the only factor in retaining and attracting good staff. The College has in place rigorous recruitment procedures, initially promoting the College in order to attract applicants and subsequently to ensure the right person is appointed. There are induction, probationary, appraisal and capability procedures in place and on-going staff development opportunities for staff at all levels within the organisation. The College needs to ensure that these processes are implemented to the same standard across all areas to ensure that all staff are able to contribute effectively to College operations and that they remain motivated towards achieving the College s objectives. Business Continuity Risks In the context of Business Continuity, the major areas of risk for the College are identified as (but not limited to): Loss of life and/or major injury/ major infection/ illness Closure or partial closure of a campus Major loss of computing capacity Loss of key staff Default of major supplier The College has in place a Business Continuity Policy which is published on the staff intranet. The purpose of the policy, and the associated Business Continuity Plan (BCP), is to inform and prepare College staff should an incident occur at Craven College or during an associated College activity such as an educational trip. The aim of the BCP is to enable the College to continue to function with minimum disruption to our staff, students and visitors should an incident occur, whilst ensuring the best possible care is provided for them. Together, these documents provide the information required to manage an incident. The main objectives of this Policy are: To ensure staff are informed of the procedures for managing an incident To ensure the regular review and updating of the BCP and associated procedures To provide assurance and protection for all staff, students and visitors during an incident Page 31 of 34

32 Appendix 5 College Strategies Summary To support the delivery of the College Strategic Plan the College has a range of strategies to ensure a systematic and consistent approach is adopted across the College to a range of key themes and aspects of the College s work. Accommodation and Estates Strategy The operation of the College is delivered through a diverse portfolio of buildings both wholly owned by the College and rented from third parties. It is the aim of the College to reduce its rental portfolio and the liabilities associated with it through consolidation of properties. This strategy looks forward to the further consolidation of campuses and explores the options open to the College for the delivery of this aspiration. The College s accommodation provides a place of work not only for students but also staff, and the needs of both are considered in this strategy and so the College considers its current accommodation in relation to that of its competitors and current market expectations. The strategy provides an evaluation of existing accommodation in relation to access needs and facilities management, future projects with systematic consideration of all buildings, new build projects, annual maintenance and disposals and acquisitions. The strategy also sets out proposed time scales for improving the whole College estate. Environmental and Sustainable Development Strategy The College recognises that its activities may have effects on sustainability and will ensure legislative compliance, and where practicable, exceed this minimum requirement by incorporating sound sustainability management practices into all aspects of College operations. The strategy details the commitment of Craven College to energy savings and a sustainable environment through the three themes of Curriculum, Campus and Community. The College recognises its responsibilities to increase awareness of environmental and sustainable development responsibilities among staff and students, and aims to incorporate sustainable development skills and knowledge into all students programmes, as well as to develop curriculum in the growth area of the sustainable energy sector. The College is committed to the promotion of environmentally sustainable development encompassing space utilisation and maintenance of the site, catering, energy management, use and recycling of paper and materials, health & safety and waste management, purchasing strategies and contractual arrangements, curriculum delivery, and transport. In promoting and developing environmental sustainable development, the College will collaborate with appropriate external organisations and communities in order to improve the mutual understanding of environmental problems and their solutions. Higher Education Strategy The HE Strategy sets out the framework, potential and required actions to develop higher education provision at the College subject to external influences and constraints, aiming to increase the number and type of HE opportunities available within Craven in line with demand. The strategy encompasses all provision at level 4 and above. Page 32 of 34

33 This strategy identifies the need to balance volume growth and economies of scale to provide a secure financial base. The College s HE Scheme is a key aspect in achieving this balance ensuring effective management, monitoring and continued enhancement of HE provision and improving the HE students experience. Two student markets are identified - local school and college leavers, plus the more complex mature market, consisting of those already in relevant work or ready to enter the workforce or looking for a change of career. The strategy focuses on the need to raise awareness of higher level provision within the disparate and varied communities of the College s catchment areas to widen participation. Human Resources Strategy The strategy sets out how the College seeks to attract the best quality staff, retain, support and continuously develop and improve the effectiveness of staff to meet the needs of students and stakeholders. The strategy includes a three year Human Resource improvement plan. Learning, Teaching and Assessment Strategy This strategy sets out how the College seeks to promote effective learning for all students at all levels, leading to successful outcomes in terms of progression and destination through the following measures: Expert and impartial information and advice pre and on entry for all its learners The provision of relevant physical resources Development of a relevant curriculum in line with prevailing funding models to meet the needs of the Craven and travel to Craven areas Recruitment and continuing development of a well-qualified, high quality teaching team Well planned high quality teaching sessions linked to individual learning plans which motivate students and are reviewed regularly Diversity and inclusion embedded in teaching, learning and assessment activities to ensure that opportunities for learning are maximized for all students and equality and diversity is promoted Regular assessment, well planned and supporting learning through detailed and developmental feedback Opportunity for students to give feedback on and help to plan their learning programmes. Marketing Strategy The purpose of the Marketing function is to ensure that Craven College and its associated brands are communicated and marketed effectively in a highly competitive market, ensuring the College maintains and enhances public awareness and required levels of participation in the wide range of courses and services that it offers. The strategy identifies the external influences on the Marketing function, includes an analysis of threats and opportunities and achievement of positive coverage of the College through: Reaching a diverse audience The range of activities such as advertising, events, publications etc Online activities Media and PR Activities associated with specific functions/requests/requirements Support for teaching staff Communication with students Efficiency and cost effectiveness. Page 33 of 34

34 Quality Strategy The strategy identifies the main drivers for quality and outlines the strategy for raising quality standards across the college. It describes the systems and procedures for monitoring performance and the measures by which quality is assessed and provides a schedule for reporting. The key features are to: Support the continuous improvement and performance of staff by a planned system of quality recruitment of suitably qualified personnel, and to support curriculum development, training, continuous professional development and appraisal Set and agree targets for performance and outcome for individuals, learning programmes and support services, developing accountability and responsibility at all levels Promote the understanding and use of performance indicators throughout the College Recognise through effective performance management that quality of service permeates all aspects of College provision and that all members of the organisation have a responsibility for the development and delivery of a high quality service Support the learning experience by carrying out an annual programme of accommodation audits and upgrades, and identifying and supporting resource requirements alongside curriculum planning Ensure that learning programmes and support services comply with the requirements of relevant external bodies. Technology Strategy The College will enhance the development and integration of ICT and ILT through the provision of hardware and software whilst ensuring that the staff and students can develop the required skills. The College is committed to develop a culture where staff and students embrace the opportunities provided by forward thinking ICT developments, a culture of innovation, opportunity and openness to change. The following aims are key to this strategy: The wide use of Multi Media Technologies, across the entire organisation Recognising and responding to learner needs Creating a common experience for all across the whole college, and ensuring access to the systems are internet driven Preparing students to actively contribute to their education, vocation, leisure and communities through ICT The establishment of effective and integrated information systems To move historic paper based systems towards an electronic version, delivered via Web 2 interfaces thereby increasing efficiency and reducing costs Increasing the college s use of online services to promote effective communication of information, and improve efficiency, interaction and business development to stakeholders. Page 34 of 34