Northamptonshire Adult Learning Service (NALS) Subcontracting and Grant Framework

Introduction

Northamptonshire Adult Learning Service (NALS) is committed to delivering high-quality adult learning provision that meets the needs of learners, employers and communities. Where subcontracting arrangements are used, they will only be implemented where they demonstrably enhance learner opportunities, support strategic objectives, and provide value for money.

NALS retains full responsibility and accountability for all subcontracted provision.

Purpose

This framework sets out the principles, processes and controls governing all learning funded by Department for Education (DfE) and Department of Work and Pensions (DWP) and managed by Northamptonshire Adult Learning Service, where delivery is formally subcontracted to an external organisation.

The purpose of this policy is to:

• ensure compliance with all relevant Department for Education (DfE) and Department for Work and Pensions (DWP) funding rules and contractual requirements
• provide transparency regarding subcontracting arrangements
• ensure subcontracted provision delivers high-quality outcomes for learners
• embed robust oversight, quality assurance, and financial control
• ensure value for money and the appropriate use of public funds
• align subcontracting arrangements with the Procurement Act 2023
• define clear roles, responsibilities, and governance arrangements
• protect learners through effective safeguarding, quality assurance and continuity planning

Scope

This framework applies to all subcontracting and grant-funded arrangements entered into by Northamptonshire Adult Learning Service during the 2026-2027 academic year in relation to Adult Skills Fund (ASF), Free Courses for Jobs (FCFJ) and any other funding streams for which subcontracting or grant arrangements are permitted.

NALS recognises that it retains full responsibility and accountability for all subcontracted provision, including:

• funding compliance
• quality of education
• learner outcomes
• safeguarding and Prevent Duty
• data management and ILR returns
• audit and assurance requirements
• adherence to Equality, Diversity, and Inclusion (EDI) obligations

Legislative, regulatory, funding and contractual framework

This framework should be read in conjunction with:

• Department for Education - Adult Skills Fund (ASF) Funding Rules 2026-2027
• Department for Education - Funding and Performance Management Rules
• Procurement Act 2023, associated regulations and statutory guidance
• Ofsted Education Inspection Framework (EIF) and associated Further Education and Skills inspection toolkit and guidance

Rational for subcontracting

Northamptonshire Adult Learning Service will only subcontract provision where there is clear evidence that doing so will benefit learners and support strategic priorities.

Subcontracting may be used to:

• enhance the breadth and diversity of educational offerings
• address specific learner needs that cannot be met directly by our resources
• extend geographical reach and access to training facilities
• engage with specialist providers to offer niche training and expertise
• improve participation among target learner groups

A business case for any subcontract will be prepared, consulted on with stakeholders, and approved at executive level prior to tender or contract award.

Subcontracting will not be used:

• solely to generate income
• to reduce organisational responsibility
• as a temporary solution to financial pressures

Subcontracting decisions are made in accordance with DfE guidelines, ensuring that these arrangements are not used to fill short-term funding gaps and are reviewed annually.

Procurement, grant assessment and selection process

Procurement framework

All subcontracting arrangements will be commissioned through transparent and competitive procurement processes that comply with NNC’s Financial Regulations and the Procurement Act 2023. This may include the framework as listed below and any other compliant procurement routes to market:

• Use of the ASF & Free Courses for Jobs FCFJ Framework
• Open competitive tender opportunities
• Other compliant procurement routes approved by the council

Grant funding assessment and decision making

Where Northamptonshire Adult Learning Service awards funding through grant arrangements rather than delivery subcontracting, all applications will be assessed through a transparent, fair and auditable process designed to ensure effective use of public funds and alignment with strategic priorities.

Applications will be assessed against the requirements set out within the individual funding opportunity and may include consideration of:

• evidence of identified learner and community need
• alignment with Adult Learning Service strategic priorities
• ability to deliver the proposed outcomes
• organisational capacity and capability
• safeguarding, prevent and equality, diversity and Inclusion arrangements
• value for money
• financial resilience and sustainability
• monitoring, evaluation and reporting arrangements

Scoring matrix

Applications will be scored using the following methodology:

Minimum quality threshold

Applications must achieve:

• a minimum score of 3 in each scored criterion
• an overall score of at least 60% of the total available marks
• successful completion of all due diligence requirements

Northamptonshire Adult Learning Service reserves the right not to award funding where applications fail to demonstrate sufficient quality, value for money or ability to deliver the required outcomes.

Assessment panel and approval

Applications will be evaluated by an assessment panel comprising a minimum of three appropriately qualified officers and/or stakeholders.

The assessment panel must be able to justify all recommendations and the rationale for funding decisions. All assessment records, moderation outcomes and funding recommendations will be retained for audit and assurance purposes.

Final approval and moderation will be provided by the Director of Communities and Leisure, Executive Member for ALS, and the Head of the Adult Learning Service.

Due diligence and pre-qualification

A Pre-Qualification/Conditions of Participation will gather evidence on:

• financial stability and insurance
• quality assurance systems, Ofsted/EQA history
• safeguarding, Prevent, and Equality, Diversity & Inclusion compliance
• information security and GDPR measures
• curriculum experience and local capacity within Northamptonshire
• track record of compliance with DfE/ESFA funding rules
• appropriate policies and procedures
• confirmation of valid UKPRN

Contract management

Contract management planning

Before contract award, a Contract Management Plan (CMP) will be developed and agreed. This will set:

• objectives, milestones, and KPIs
• quality assurance and reporting expectations
• roles and responsibilities
• audit, data, and ILR submission arrangements
• risk assessment and mitigation measures
• escalation and change control procedures

Contract award and terms

Contracts will:

• specify funding stream, qualification aims, delivery location, mode (Face-to face/blended), and target learner volumes
• include all obligations under the DfE ASF/FCFJ funding rules
• prohibit further sub-contracting without express written permission
• embed clauses on data protection, confidentiality, Freedom of Information, and equality legislation
• set payment terms (monthly in arrears) and audit access
• include termination, dispute resolution, and learner-protection provisions
• subject to NNC’s Standard Terms and Conditions

All signed contracts are centrally logged and stored securely. Key contract dates, triggers, and renewal or termination periods will be tracked.

Management fees

Management fees are transparent, proportionate and represent value for money. Fees reflect actual costs of oversight, compliance, and quality assurance.

Management Fees for Delivery subcontracting (learner recruitment, teaching, assessment and progression) will be 15% of the funding rate for the qualification(s) delivered. The management fees will cover the costs for:

• needs analysis and stakeholder consultation
• legal and contract administration
• quality assurance and performance management
• learner evidence and data management
• audit preparation and compliance monitoring
• financial monitoring and payment processing
• senior management contractual support including management of procurement, financial due diligence, funding rule adherence, audit preparation and general support and advice to the training provider

Governance, roles and responsibilities

Adult Learning Service Performance Board

The Adult Learning Service Performance Board provides operational and strategic oversight of Adult Learning Service performance and acts as the primary forum for reviewing quality, compliance, learner outcomes, safeguarding, financial performance and contract management activity.

The Board will receive regular reports relating to:

• learner recruitment, retention, achievement and progression
• performance against contract, grant and funding targets
• observation of teaching, learning and assessment outcomes
• quality improvement actions and self-assessment findings
• safeguarding and prevent compliance
• equality, diversity and inclusion performance
• funding compliance and audit outcomes
• financial performance, including management fees retained and funding utilisation
• provider and recipient organisation performance, risks and business continuity matters

The Adult Learning Service Performance Board will make recommendations and escalate significant risks, concerns or areas of underperformance to the Head of Service and relevant council governance arrangements, ensuring appropriate oversight of all subcontracted and grant-funded provision

Northamptonshire Adult Learning Service

NALS is responsible for:

• ensuring compliance with DfE funding rules
• monitoring subcontractor performance
• ensuring safeguarding and prevent compliance
• managing contracts and payments
• conducting quality assurance activities
• submitting accurate ILR returns
• protecting learners and public funds

Subcontractor providers

Subcontractors are responsible for:

• delivering high-quality education and training
• maintaining compliant learner records
• meeting safeguarding and prevent obligations
• providing accurate and timely data returns
• engaging with quality assurance processes
• supporting inspection and audit activity

Relationship and communication management

Northamptonshire Adult Learning Service maintains open, professional relationships with subcontractors, including:

• monthly communication and minimum three formal review meetings annually
• documented joint action plans and progress monitoring
• named contacts for both organisations
• defined problem-resolution and escalation routes
• collaborative sharing of good practice through moderation and CPD
• annual review of subcontractor ownership, financial health, and business continuity plans

Performance management and quality assurance

We take full responsibility for the actions of subcontractors in relation to the delivery of services. NALS retains the right to conduct comprehensive monitoring audits to ensure high-quality delivery, these checks may include:

• planned audits
• unannounced compliance visits
• learner file reviews
• data validation exercises
• quality assurance inspections
• subcontractors must provide full access to records, staff, and learners where required - failure to comply with audit requirements may result in financial recovery or contract termination.

Subcontracting provision will be quality assured with reference to the expectations set out in Ofsted’s Education Inspection Framework and the relevant Further Education and Skills inspection toolkit and operating guidance and be subject to:

• monitoring of performance (including progress against profile, recruitment, pass rates, retention rates, attendance and achievement rates, progression and destination where applicable)
• regular Observation of Teaching, Learning and Assessment (OTLA) observations
• internal verification and moderation
• safeguarding and Prevent audits
• participation in NALS Self-Assessment Report (SAR) and Quality Improvement Plan (QIP)
• learner feedback and complaints monitoring

All subcontractors are required to engage with Northamptonshire Adult Learning Service Observation of Teaching, Learning and Assessment and other quality assurance processes including standardisation, internal/external verification/ moderation, self-assessment and quality improvement plans. All subcontractors will also be invited to participate in continuing professional development opportunities.

Performance action plans will be implemented and tracked where standards fall below expectations.

Financial

• Payments are performance-based and validated in line with Adult Skills Fund: Funding and Performance Management rules
• Payments are made monthly in arrears following validation of activity
• Subcontractors must retain auditable records
• Unannounced visits may be undertaken to validate data
• Funds may be recovered for non-compliance with the funding rules

Payments will be made based on the following criteria:

• The delivery of a qualification aim, as detailed on the agreed delivery plan, which is listed on the Find a Learning Aim Government portal and subsequently included in the potential provider’s contract profile of delivery
• Payments will be based on the funding generated through the applicable ASF funding methodology for eligible and evidenced delivery, subject to the agreed contract rate, funding cap and management fee
• Payments will be based on actual submission of accurately completed course paperwork, including learner enrolment forms, course registers, qualification achievement evidence, and where applicable learner fee remission evidence
• Payments will be made on the actual recruitment, learner funding eligibility, learner employment status and learner paperwork submissions - payments will not be based on profiled starts shown in contract and delivery plan
• Learners will only become eligible for funding after they have been retained on programme for the minimum qualifying period and this is predicated by the length of the learning programme
• Funding is drawn down as follows: 80% of funding is split into months on programme + 1 instalments, 2 instalments are paid in the first month, then the remaining instalments paid monthly, the final 20% is paid on learner completion of the learning activities (regardless of whether the learner achieves the aim)
• Payments for Adult Skills Fund (ASF) delivery are made 30 days after the receipt of an accurate invoice supported by the required evidence - all payments to subcontractors are made in line with NNC payment procedures
• All course paperwork and learner evidence must be submitted by the end of September following the end of the academic year
• Potential providers should note that all funding is subject to both internal and external audit - any overpayments identified due to non-compliance will be subject to financial claw back or a reconciliation of outstanding due payments

Budgets are monitored monthly as part of the council’s budget monitoring process and reported to senior management and elected members as required by the council’s financial regulations.

Business continuity and learner protection

Subcontractors must maintain appropriate business continuity arrangements.

In the event of subcontractor failure, NALS will implement learner protection measures to minimise disruption and ensure continuity of learning.

Safeguarding and prevent

Subcontractors must:

• maintain effective safeguarding arrangements
• comply with Prevent duty and ensure extremist organisations are not funded through their activity
• promote equality, diversity, and inclusion
• escalate concerns immediately

Equality, diversity and inclusion

Subcontractors and grant recipients must actively promote equality, diversity and inclusion and comply with the Equality Act 2010. They must:

• eliminate unlawful discrimination, harassment and victimisation
• advance equality of opportunity
• foster positive relations between different groups
• support inclusive learning environments
• monitor participation and outcomes where appropriate
• comply with NALS equality and inclusion requirements

Failure to meet these requirements may result in improvement action, funding recovery or contract termination.

Complaints and whistleblowing

Subcontractors must operate clear complaints and whistleblowing procedures.

Learners and staff must be informed of how concerns can be escalated to NALS where appropriate.

Contract termination

Contracts may be terminated for reasons including, but not limited to the following circumstances:

• Serious underperformance against KPIs
• Financial or legal irregularities
• Serious safeguarding concerns that have not been identified or addressed by the Subcontractor
• Serious allegations made by learners or employers - for the avoidance of doubt, termination will only be considered where any such serious allegations are substantiated
• Failure to meet due diligence requirements or to produce evidence as requested by the deadlines required
• Where the Subcontractor cannot deliver the learning agreed or does not have appropriate capacity, resources or infrastructure and is demonstrably affecting the progress and achievement of learners
• The performance of the Subcontractor is significantly below the national average for their sector
• The Subcontractor consistently fails to address issues that have been identified (including by external organisations such as Ofsted and Awarding Bodies), and does not engage in communication, and QPRs and does not attend events or complete required documentation on time
• The DWP or DfE instruct the NNC to cease contracting with the Training Subcontractor

Review and approval

This procedure will be:

• reviewed annually or earlier following DfE guidance updates

Last updated 05 October 2026