What do mock funding assurance reviews look like in practice?

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Mock funding assurance reviews in practice

In the current economic climate, institutions within the education sector are under increasing pressure to secure and maintain essential funding. Ensuring compliance with funding rules is therefore critical for those accessing funds through the Education and Skills Funding Agency (ESFA) or Mayoral Combined Authorities (MCAs).

The data submitted in any claim will be monitored by the EFSA and MCAs, and audits will be undertaken by them or on their behalf. As a result, it’s vital that all data and supporting evidence meet the criteria of the relevant funding rules and individualised learner record (ILR) guidance. But how can providers be confident their data and evidence can withstand this scrutiny? The article below explores the importance of mock funding assurance reviews, and what they look like in practice based on our significant experience of conducting both mock and official funding audits across the sector.

What is a mock funding assurance review?

A mock funding assurance review is designed to prepare education providers (providers) for official funding audits. Based on the methodology for official funding audits, it provides an examination of your ILR data, enrolment and on-programme delivery documentation, Provider Data Self Assessment Toolkit (PDSATs) and compliance with funding regulations to identify and help rectify any potential risks or issues. These reviews offer invaluable insights, helping providers navigate the complexities of funding rules and ILR guidance, and assist in effectively mitigating potential risks.

Why are they important?

In today’s evolving landscape of regulatory requirements and funding rules, and against the economic backdrop referred to above, providers face various risks that could potentially jeopardise their funding claim. Mock funding assurance reviews enable providers to assess and mitigate these risks effectively, reducing the risk of compliance breaches and subsequent funding clawback. When incorporated as part of an ongoing cycle of improvement, providers can use the insights gained from these reviews to refine their processes, policies and systems continually, and adapt to keep these effective.

Through mock reviews, providers also reinforce a culture of governance and accountability at all levels. By engaging stakeholders, including governors, senior leadership and finance teams in the review process, institutions foster transparency and responsibility, ensuring that everyone understands their roles and responsibilities in maintaining compliance.

To summarise, key benefits include:

  • Compliance verification
  • Risk mitigation
  • Process improvement
  • Financial health
  • Accountability and transparency

What does a mock funding assurance review look like in practice?

A mock funding assurance review typically follows 4 steps:

1. Preparation

Providers submit an ILR to us and we select and provide the agreed samples. Typically, these mirror the size used by the ESFA or MCAs, but can be tailored to suit known issues and/or specific requirements. Once the samples have been issued, we will arrange a call to discuss the samples and evidence requirements. Providers will then need to collate the required evidence.

2. Testing

To provide the most realistic experience, mock funding assurance reviews will be carried out in line with the approach taken with ESFA and MCA audits.

Testing is usually carried out over several days subject to the agreed samples and will cover the critical factors within the scope of the ESFA’s or MCA’s assurance framework. This familiarises providers with the procedures and expectations to ensure they are well prepared for an official funding audit carried out by the ESFA, MCAs, or one of their appointed audit firms.

3. Feedback and findings

Throughout the process, detailed feedback will be provided. Where issues are raised, we will identify whether or not the issue would potentially impact on the provider’s funding claim. This enables providers to promptly address any identified issues and provide additional evidence where necessary.

4. Draft and final report

Once the testing has been completed, providers will receive a draft report where they will have the opportunity to respond to the issues and recommendations raised. Once the provider has given their responses, the report will be issued as final and should be used to address any issues raised during the review process, which in turn may form of an ongoing plan for improvement and monitoring in compliance within a provider.

We would also expect the results of the mock funding audit to be shared with senior management and governance groups such as the Audit and Risk Committee (or equivalent) and the Board and for which we have attended and presented at. 

By simulating the procedures and expectations of official audits, mock funding assurance reviews help providers prepare effectively, identify potential compliance issues, and mitigate financial risks. They play a crucial role in ensuring transparency, accountability, and compliance in the funded education landscape.

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