Mode is committed to developing and sustaining a range of high-quality post-16 educational services in a number of occupational sectors.

Subcontracting arrangements have provided Mode with the opportunity to widen participation and to ensure its capacity to maximise the volumes of its ESFA areas within the city region. contract and participate effectively in Government’s national and regional targets for Apprenticeships.

From 1st August 2020 Mode has also entered into a contract with Asset Training and Consultancy to sub contract an  element of Liverpool City Region Adult Education Budget.  

Mode acknowledges that its current sub-contractors and any increased future subcontracted provision should enhance the following in its services by:

  • Ensuring the availability of high-quality provision
  • Meeting the needs of local employers
  • Demonstrate good value for money
  • Meeting the equality and diversity needs of the local community
  • Making the provision available to a wider cross-section of the community

The policy outlines the objectives of the sub-contracting arrangements in-line with the relevant Education & Skills Funding Agency Rules and Guidance.


Mode and the Sub-Contractor/s will have a legally binding contract which will detail contractual and quality assurance arrangements for the contract year. If at any point the sub-contractor undergoes a change of circumstances that affects their ability to deliver provision, Mode must be notified with immediate effect and a full investigation will be undertaken.

It is the responsibility of Mode to obtain an annual report from an external auditor if the total contracts within the sub-contracting delivery will exceed £100,000 in any one financial year. The report will provide assurance that Mode are managing and controlling the delivery of the sub-contractor.

Risk and Due Diligence

Mode require that any existing and future sub-contractors must be active on the Register of Apprenticeship Training Providers, this is checked prior to any Risk and Due Diligence being carried out. The checks are to establish the sub-contractors’ capacity and capability to deliver the proposed contract in full. The due diligence process allows Mode to:

  • Discuss and agree the parameters of the Subcontracting Policy and Subcontracting Agreement/s
  • Regularly revisit and revise the subcontracting policy and subsequent subcontracting agreements to ensure compliance with the Education & Skills Funding Agency and best practices; typically, these will be discussed during monthly subcontractor performance meetings
  • Agree and ensure the subcontractor understands and agrees to the scope and frequency of access required by the prime contractor to observe, monitor and quality assure:
    • High quality delivery and learning environments
    • High quality teaching, learning and assessment methods
    • Robust Health, Safety and Safeguarding arrangements
    • Ensure that the subcontractor understands that their agreement extends only to ‘provision subcontracting’ in respect of full programmes or frameworks
    • Ensure that the subcontractor understands and commits to permitting the prime contractor to recommend improvements when identified through the above and to make appropriate staff available for:
      • Training/CPD
      • Subcontractor Monthly Performance Meeting
      • Monitoring and Audit Visits including observations
      • Data exports and associated discussions regarding these

Management Fees and Payments

The fee level is dependent upon the risk level of the individual sub-contractor and will take into account any additional support Mode deems necessary to ensure the quality of the sub-contractor’s provision and performance levels are managed and maintained effectively.

Mode retains a management fee from all future subcontracted partner organisations, of between 15% – 20% but have the right to vary these standard management fees depending on the nature and intensity of support required from sub-contractors to effectively comply with their contractual requirements.

Payments are calculated monthly, once the sub-contractor has submitted their data and invoice and Mode have received the monthly PFR (Provider Funding report) from the ESFA. Once funding is received from the ESFA the sub-contractor is paid by BACS by the last working day of the month.

Should discrepancies arise because of the quarterly audit which cannot be rectified; any monies owing to the prime or subcontractor will be repaid / recovered at the next payment date, subject to negotiation.

Quality Assurance

Mode is committed to a culture of continuous development that ensures and improves the quality and service levels in the organisation. The quality of provision for sub-contractors will be monitored and managed through Mode existing quality assurance / compliance processes and procedures by the following:

Mode will undertake a range of training, CPD and information exchanges with staff each year. These will wherever possible be extended and offered to headcount, with the clear purpose and intention to improve the standard and quality of teaching and learning, safeguarding or other critical key performance measures.

Subcontractors will receive a high level of support and guidance, by means of monthly subcontractor quality and performance meetings and participation in regular quality assurance systems. These include the following:

  • Quality data-management systems
  • Management Information Services and data control advice
  • Support with Funding Rules compliance
  • Regular national updates regarding funding and policy guidance
  • Audit of financial claim and management systems
  • Sharing and standardising best practice on Policy development
  • Equality and diversity Safeguarding of Young People and Vulnerable Adults and Prevent Duty procedures
  • Observations of teaching, learning and assessment
  • Self-assessment and improvement planning
  • CPD opportunities and planned training and development
  • Sharing best practice and supporting Policy development

Publication and Review

In compliance with the Education & Skills Funding Agency and Liverpool City Region Combined Authority below is the annual summary of the sub-contractor’s actual level of funding that has been allocated for 2020/21 contract year.

August 2020/July 2021


Asset Training and Consultancy UKPRN 10000427

Total funding  £39,791.01  of which 15% was retained £5,968.65

Montebello UKPRN 10049191

Total funding  £29,325.62  of which 15% was retained £4,398.84

Adult Education Budget

Asset Training and Consultancy UKPRN 10000427 

Allocated £150,000 of which 15%  £22,500 is to be retained