- About us
- About colleges
-
Corporate services
- Corporate services
- Mental health and wellbeing
- Data Protection/GDPR
-
Employment Services - college workforce
- Employment Services - college workforce
- Employment: How we support members
- Introduction & Employment Helpline
- Absence & Sickness Management
- Contracts and T&Cs
- Disciplinary, Capability & Grievance
- Employment Briefings Library
- Equality, Diversity & Inclusion
- General Employee Relations & HR Issues
- Holiday/annual leave related
- Industrial Relations
- ONS reclassification related guidance
- Pay & Pensions
- Recruitment
- Redundancy, Restructuring & TUPE
- Safeguarding/Prevent
- Workforce Benchmarking, Surveys & Research
-
Governance
- Governance
- Governance: How we support members
- Governance Timeline
- Representation
- AoC National Chairs' Council
- National Governance Professionals' Group
- Code of Good Governance
- External Governance Reviews
- Resources
- Governors Inductions
- Student Governor Inductions
- Student Governor Support Hub
- Guidance
- Hot Topics
- Governance Briefings
- Archive
-
Projects
- Projects
- Get Involved!
- Resources
- Contact the Projects Team
- Apprenticeship Workforce Development (AWD) Programme
- Creating a Greener London – Sustainable Construction Skills
- The 5Rs Approach to GCSE Maths Resits
- Creative Arts in FE 2024 – developing student voice through creativity
- DfE Multiply Capability Support Programme
- Digital Roles Across Non-digital Industries
- GCSE Resits Hub Project
- Pears Foundation Youth Social Action Programme: Phase 2
- T Level and T Level Foundation Year Provider Support Programme
- T Level Professional Development (TLPD) Offer
- The Valuing Enrichment Project
- Creative Writing in FE Anthology 2021/2022
- Resources/Guidance
- Sustainability & Climate Action Hub
- Partnerships
- Honours Nomination
- Brexit
- Ofsted Inspection Support
- Recruitment and consultancy
-
Events and training
- Events and training
- Events
- AoC Annual Conference and Exhibition 2024
- T Level and T Level Foundation Year Events
- Events and training: How we support members
- Network Meetings
- Previous Events and Webinars
- In-House Training
- Senior Leadership Development Programme
- Introducing AoC's Early Career and Experienced Managers' Programme
- Sponsorship and Exhibition Opportunities
- Funding and finance
-
Policy
- Policy
- Meet the Policy Team
- Policy: How we support members
- Policy Areas
- Policy Briefings
- Submissions
- Policy Papers & Reports
- AoC Strategy Groups
-
AoC Reference Groups
- AoC Reference Groups
- 14-16 Reference Group
- 16-18 Reference Group
- Adults (inc. ESOL) Reference Group
- Apprenticeship Reference Group
- EDI Reference Group
- HE Reference Group
- HR Reference Group
- International Reference Group
- Mental Health Reference Group
- SEND Reference Group
- Sustainability & Climate Change Reference Group
- Technology Reference Group
- WorldSkills Reference Group
- Opportunity England
-
Research unit
- Research unit
- Surveys
- MiDES Benchmarking
- Research Further
-
Research projects
- Research projects
- Investigating the impact of the apprenticeship levy on training outcomes - January 2024
- Forecasting the cost of the English HE funding system - November 2023
- Local skills improvement plans: a review of their impact and opportunities for the future
- The educational provision for 14 to 16-year-olds in further education in England
- Staying with the troublemakers: A celebration of research in FE
- Strengthening governance arrangements in the English post-16 skills system
- Data Sources
- Think Further - thought leadership in FE
-
News, campaigns and parliament
- News, campaigns and parliament
- Post-election hub
- General and mayoral election resources
-
Comms advice and resources for colleges
- Comms advice and resources for colleges
- Media relations: 10 ways to build effective relationships with the media
- How to choose a PR agency
- Legal considerations for communications and media work
- How to plan for a new build
- Crisis communications: your go-to guide
- How to handle photo consent for media and marketing
- How to evaluate a PR and media campaign
- How to react to regulation, funding and restructuring issues
- How to react quickly and effectively to the media
- Working with the media: a complete guide
- How to write a compelling case study
- How to write for the web
- College communications, marketing and campaigns community
- AoC Newsroom
- AoC Blogs
- Work in Parliament
- AoC Campaigns
- Briefings
- Communications, media, marketing and research: How we support members
-
Equality, diversity and inclusion
- Equality, diversity and inclusion
- Equality, diversity and inclusion blogs
- AoC’s Equity, Diversity and Inclusion Charter
- AoC’s Equity, Diversity and Inclusion Charter for further education sector organisations
- AoC’s Equity, Diversity and Inclusion Charter signatories
- Diversity in Leadership
- Black FE Leadership Group and AoC partnership agreement
- AoC's Equity Exchange
- Equality, diversity and inclusion: how we support members
- Equality, diversity and inclusion case studies
- ETF Inclusive Leadership Coaching Programme
- Equality, diversity and inclusion briefings
- Home
- News, campaigns and parliament
- AoC Newsroom
- College financial planning
College financial planning
ESFA asks colleges to return financial plans by 31 July 2017. These plans cover the current financial year (2016-17), next year's budget (2017-18) and the publication of these documents was delayed by the election. The spreadsheets are little changed from the last year but where there are changes, the template guidance document expla As lasins the reasons. The handbook outlines ESFA's approach to assessing college financial health. Under the new system introduced last year, three elements make up the overall score:
Current ratio (excluding assets for resale, deferred capital grants, holiday pay) with good being 1.2
EBITDA as % of income with good being 6%
Borrowing as a % of income with good being less than 35%
ESFA provide a checklist (at Annex A) for the supporting commentary. Principals are required to confirm in writing that the commentary has been written with due regard to the checklist.
Government does not provide any information on economic or other trends that might affect plans. Here are some notes:
Inflation: On the CPI index, inflation is now 2.9% (having dropped to zero last summer) because the fall in the value of the pound resulted in higher import prices. The Bank of England expect that it will remain above 2% for sometime yet.
Pay: Discussions have yet to start between either AoC or SFCA and the recognised trade unions. AoC is gathering together data on FE college pay intentions. The timetable means there will not be a settlement until autumn but this reduces the chances of damaging strike action during enrolment. DfE's advice to the School Teacher Pay Review Body suggested a 1% pay increase for school teachers in 2017-18. STRB have not yet reported. Meanwhile the Universities and Colleges Employers Association (UCEA) made a final offer to university staff unions of a 1.7% rise for 2017-18. The Bank of England reported in May that whole economy pay growth (taking account of all elements of pay changes) is 2.3% which is similar to what it was a year ago.
National Insurance: There are no current plans to change the Class 1 employer NIC rate of 13.8%.
Pensions: Colleges were presented with LGPS employer contribution changes in April 2017 but need to ensure they account for the full year effect. TPS contributions will next change in 2019 (most probably in September). HM Treasury has reduced the discount rate for the next valuation from 3% to 2.75% which implies an increase in the employer contribution rate, perhaps to 18% or even higher.
Minimum wage rate: The main rate (for over 25s) increased from £7.20 to £7.50 in April 2017 and is dues to rise again in April 2018 though perhaps at a slower rate because overall pay growth is down.
Exam fees: These often rise by more than inflation because of lack of competition and government inspired curriculum change.
Energy prices: Oil prices are falling slightly but gas and electricity prices are both expected to rise this summer.
Subscriptions: Government spending cuts have been made on the assumption that costs can be passed onto institutions. This will be a particular issue in higher education. DFE expects to introduce college subscriptions to partly fund JISC and the new Office for Students (covering higher education) in 2018 but the timing means that these will mainly have an effect in 2018-19. AoC will be writing to individual colleges with planned subscriptions for the next 3 years.
Interest rates: These are currently at low levels because of the 0.25% Bank base rate but already rising for colleges because of increasing bank margins and likely to rise further because of an assessment that colleges are a higher financial risk.
On funding:
ESFA's 16 to 18 funding formula is unlikely to change much for the 2018-19 allocation round though AoC continues to press for higher rates, adjustments to the retention factor and a more sensible approach to the English and maths funding condition. There may be some early funding available to implement T-levels - perhaps to support more work experience placements.
ESFA's Adult Education Budget is fixed in cash terms and will only change for the 2018-19 academic year if the Autumn Budget brings changes to departmental budgets.
ESFA's cautious approach to apprenticeship spending is likely to continue for some time yet because of lack of information about how levy paying allocations will be used. Officials hope to restart a procurement later in the summer for post January 2018 non levy new start apprentices.