Are you ready to implement the ITP Financial Handbook? And how do you stop the framework from becoming a costly tick-box exercise?
As senior leaders in independent training providers (ITPs), you’re no stranger to the evolving landscape of education and business. One significant development on the horizon is the ITP Financial Handbook, set to come into force this August. But what exactly is it, and why should you invest time and effort in implementing its requirements and recommendations?
In this blog post, SDN Strategic Associate, David Lockhart-Hawkins, explains why the ITP Financial Handbook shouldn’t be treated as another bureaucratic checklist but, if planned correctly, can be a strategic compass to guide your organisation to improved performance, compliance and financial health.
First of all, what is the ITP Financial Handbook?
The ITP Financial Handbook provides guidance for ITPs in receipt of funds directly from the Department for Education (DfE) or the Education and Skills Funding Agency (ESFA). Effective from 1 August 2024, this comprehensive handbook outlines financial management, governance controls, and compliance requirements for ITPs.
The handbook focuses on three key themes: financial management, oversight, and assurance.
Its recommendations vary based on the level of DfE and ESFA funding received by each ITP. Key areas covered include the timely submission of annual accounts, external audits, robust internal controls, risk management, and adherence to funding rules.
Implement the requirements and recommendations so they work for you
“In the main, the requirements and recommendations of the Handbook mirror best practices found in successful commercial businesses across most industries. Therefore, taking the time to think how best to implement these requirements and recommendations, means you won’t merely be ticking boxes – at a cost to your business – but building a robust foundation for growth and adaption in a changing market.”
Risk register as a practical example
“Traditionally, a business’s vision often stems from its leadership team. However, a well-structured risk register encourages input from various sources. It consolidates diverse perspectives and identifies potential pitfalls.
External and internal stakeholders can challenge decisions based on the risk register. This healthy scrutiny ensures alignment with your strategic direction. However, there is often the risk it is a bland exercise, so it’s important to remember there is no one-size-fits-all approach…
For example, alongside the standard fields (event, likelihood, contingency plan), you could include a section for strategic opportunities. Imagine scenarios where risks materialise – how can you pivot to your advantage? For instance, changes in funding rules could open unexpected doors.
By adding this extra box, not only do you avoid treating the risk register as a monotonous checkbox exercise, but you’re engaging stakeholders and adding vibrancy and depth to the process.”
This is just one example, there are similar examples for internal and external audits (see details of our webinar below).
In summary
“If you treat the ITP financial handbook recommendations as tick box exercises they will just become costs. However if you embrace the potential benefits and use the recommendations to channel improvements – you will see outcomes, not just to your quality and compliance, but to your overall business performance and revenue too.”
Led by funding and compliance specialist, David Lockhart-Hawkins – this in-depth webinar explores the approaches and obligations set out in the financial handbook, what this means in practice for ITPs and the financial and governance arrangements you will need to have in place.
Visit Understanding and implementing the ITP financial handbook for details and to book.