MD2366 Adult Education Budget - 2018/19 Implementation Funding MoU

Type of decision: 
Mayoral decision
Code: 
MD2366
Date signed: 
25 September 2018
Decision by: 
Sadiq Khan, Mayor of London

Executive summary

In preparation for the Secretary of State for Education delegating statutory functions relating to the Adult Education Budget (AEB) to the Mayor of London from the 2019/20 Academic Year (1 August 2019), this decision seeks approval of the GLA’s entry into a Memorandum of Understanding (MoU) with the Department of Education, to be signed by the Mayor and the Secretary of State, setting out the latter’s intention to provide up to £1,920,054 to the GLA to build capacity during the period 1 April 2018 to 31 July 2019 for managing the AEB once the relevant functions have been delegated to the Mayor.

Claims may be made by the GLA from this implementation funding for expenditure which will include staffing, accommodation and other operating costs including IT.

Decision

That the Mayor approves:

1. The GLA’s entry into a Memorandum of Understanding (copy attached at Appendix A for the Mayor’s signature) as a pre-requisite to HM Government’s award of funding of up to £1,920,054 to the GLA, which will cover costs incurred during the period 1 April 2018 to 31 July 2019 to help build capacity for managing the AEB once the relevant functions have been delegated to the Mayor; and

2. Claims for and receipt of the above maximum amount which will be paid to the GLA in arrears in three instalments over the financial years 2018/19 and 2019/20.

Part 1: Non-confidential facts and advice

Introduction and background

The GLA is expecting to take on responsibility for the Adult Education Budget (AEB) for London from the 2019/20 academic year (1 August 2019) pursuant to a formal delegation of powers from the Secretary of State for Education to the Mayor of London.

Under cover of MD2255 – Devolution of the Adult Education Budget to the Mayor, the Mayor accepted the delegation of AEB functions, subject to the final arrangements being confirmed by the Secretary of State.

For the Secretary of State to delegate the functions and funding for AEB to the Mayor, he needs to be satisfied that the Mayor meets a number of readiness conditions and agrees to a number of key documents. The documents include an Implementation Funding MoU (Appendix A) which must be signed by the Mayor before being signed by the Secretary of State.

Objectives and expected outcomes
    1. The GLA’s entering into the MoU is a prerequisite of the award by the DfE of implementation funding to reimburse certain costs incurred by the GLA during the period 1 April 2018 to 31 July 2019, and the DfE’s entering into the MoU confirms the DfE’s intention to award that funding. It is intended that the award of funding will be made under Section 31 of the Local Government Act 2003 (‘a Section 31 grant’) to build capacity for managing the delegated AEB from 2019/20 onwards, in line with activities outlined in the GLA’s business case for the period April 2018 to July 2019.
       
    2. Once this is agreed, funding of up to £1,920,054 will be available for GLA claims in respect of evidenced costs incurred in respect of AEB implementation activities such as those specified in the GLA April 2018 to July 2019 business case (available on request). It is proposed that claims will be made and paid in arrears upon submission to DfE of evidence of expenditure in three instalments: October 2018, April 2019 and August 2019. The GLA will need to inform the DfE of actual expenditure for the relevant periods in order to receive the funding as set out in the table below. Please see Appendix B for more information.
       

Period

GLA accounting officer declaration of matched spend directly by the GLA sent to DfE by

DfE section 31 demand led grant payment made by

1 April to 30 September 2018

12 October 2018

26 October 2018

1 October to 31 March 2019

12 April 2019

26 April 2019

1 April 2019 to 31 July 2019

9 August 2019

30 August 2019

 

At the time of writing, according to the GLA’s period 5 management accounts, the GLA has incurred expenditure of £822,307 in respect of which we will make a claim in October 2018 (as indicated above).
 

Equality comments

Section 149(1) of the Equality Act 2010 provides that, in the exercise of their functions, public authorities – of whom the Mayor is one – must have due regard to the need to:

• Eliminate discrimination, harassment, victimisation and any other conduct that is prohibited by or under the Equality Act 2010;
• Advance equality of opportunity between persons who share a relevant protected characteristic and persons who do not share it; and
• Foster good relations between persons who share a relevant protected characteristic and persons who do not share it.

Relevant protected characteristics are age, disability, gender re-assignment, pregnancy and maternity, race, religion or belief, sex and sexual orientation.

The Mayor is required to comply with the duty to have due regard detailed above in making any decisions relating to the AEB. In respect of the currently proposed funding arrangement for capacity building, the extent of the regard due is likely to be limited.

Once delegated, the AEB will support a range of people who need skills and training to access and progress in work, including those at a particular disadvantage in the labour market, such as people with no basic skills, those who are long-term unemployed, lone parents, people from black and minority ethnic backgrounds, people with disabilities, and people in low paid or low skilled jobs.

Other considerations

GLA officers have worked closely with DfE officials to agree the terms of this MoU. The MoU was submitted for approval by the Mayor on 19 September at his AEB Mayoral Board before formal approval and submission to the Secretary of State for signature.

Following the signing of this MoU, the final AEB delegation letter and MoU are due to be signed by the Secretary of State and the Mayor in early 2019 and will be subject to the GLA’s Mayoral decision-making processes. Once signed, the letter will constitute the legal transfer of the statutory functions, whereas the MoU will underpin the relationship between each involved party but will not be legally binding.

All expenditure before receipt of implementation funding from DfE has the appropriate approval in place. The majority of funding will go towards staffing costs which have been approved through the Head of Paid Service process.

Financial comments

The MoU is a pre-requisite to DfE’s provision of up to £1,920,054 to the GLA in total for incurred and evidenced AEB implementation activity costs as specified in the GLA April 2018 to July 2019 business case to Government. The grant will be made by way of a Section 31 transfer and will span two financial-years as follows:

• 2018-19 - £1,441,767
• 2019-20 - £478,287

Activity table

Activity

Timeline

The Mayor and the Secretary of State for Education sign the Memorandum of Understanding

September/October 2018

Award of funding from the Department for Education

TBC by DfE

 

 


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