AAT is a registered charity. No

AAT is a registered charity. No. 1050724

The AAT qualification was deemed the most suitable one for the KMPG360 o apprentice programme due to the broad understanding of accounting principles that it instils in students. Michael Walby Director of Professional Qualification Training, KPMG

A review of apprenticeships in England was commissioned by the Secretary of State for Business, Innovation and Skills (BIS) in England. The aim of the review was to establish apprenticeships that would deliver training, qualifications and skills that are matched to the needs of employers and organisations. Groups of employers known as Trailblazers from specific sectors were brought together to create Apprenticeship Standards for their industry. AAT were part of the Trailblazer group tasked with creating the Apprenticeship Standards for the new Assistant Accountant Apprenticeship and the Professional Accounting Technician Apprenticeship. The new apprenticeships aim to: 1 2 give employers more control over the design of their apprenticeships increase delivery flexibility 3 4 streamline and simplify apprenticeship funding refocus and increase the effectiveness of apprenticeship training. 1

While the focus moves to employers to take a leadership position for the creation of Apprenticeship Standards, it s recognised that you as a training provider are central to the delivery of high quality apprenticeships. Under the new Standards, your high quality training and the knowledge you ll instil in the learners will be fundamental to ensuring businesses can develop and maintain sustained growth within their accounts and finance departments. This guide has been designed to help you understand the changes to apprenticeships in England and the implication of these changes on the delivery of the new accounting apprenticeships: Assistant Accountant Apprenticeship Level 3 Professional Accounting Technician Apprenticeship Level 4 2

INTRODUCING THE Standards This section includes: a summary of the new standards guidance on core maths and English skills an outline of behaviours Initial discussion Learner, employer and provider On-programme learning To include on the job and off the job learning Gateway Employer and provider sign off apprentice as ready for EPA End Point Assessment Assess the apprentices competence and knowledge aligned to the Apprenticeship Standards Completion and certification If structured qualification included as on-programme learning, this could combine qualification and apprenticeship certification Occupational competence 3

Elements of the new Standards The new Accounting Apprenticeship Standards detail the knowledge, skills and behaviours that need to be accomplished by the apprentice. Each standard is linked to specific job levels and is accompanied by a detailed Assessment Plan. The development of the technical knowledge and skills including maths and English and the outlined behaviours detailed within the Assessment Plan are fundamental requirements of what is known as the on-programme learning element of the apprenticeship. 83% of apprentices said their career prospects improved once they d completed their apprenticeship. Apprenticeships and Qualifications Continuous assessment of the apprentices progression and development will still be necessary throughout the Apprenticeship Standards. Our qualifications are the perfect way to combine the need for continuous assessment and the knowledge learning requirement of the on-programme learning. Our Advanced and Professional Diplomas in Accounting, mapped at Level 3 and Level 4 offer the apprentice an opportunity to achieve a professional, internationally recognised qualification as part of their on-program learning, while giving you, the training provider the ability to continually monitor their development, through the unit assessments. The 15 18 months expected duration for the Assistant Accountant Apprenticeship means that it s even possible to include our Foundation Certificate in Accounting alongside our Advanced Diploma in Accounting as part of the on-programme learning element. 4

Assistant Accountant Apprentice End Point Assessment pathway AAT Advanced Diploma in Accounting Apprenticeship elements Advanced Bookkeeping Final Accounts Preparation Management Accounting: Costing Indirect Tax These units and unit assessments count as the required On Programme Learning (OPL) for the Apprenticeship Ethics for Accountants* Spreadsheets for Accounting* Gateway On completion of the OPL the employer and training provide sign off the apprentice ready for the End Point Assessment Available 12 months from Apprenticeship start date Advanced synoptic assessment Student achieves AAT Advanced Diploma in Accounting Portfolio Reflective Upload evidence to SecureAssess and schedule the professional discussion. Assessed by one independent assessor The synoptic and portfolio reflective make up the End Point Assessment for Apprenticeship Student achieves the Assistant Accountant Apprenticeship AAT confirms result and submits apprenticeship certification request As an AAT qualified apprentice, your student will have proved their skills in the workplace, gained a recognised qualification and the practical, technical and professional skills to make them a highly sought after employee. *Assessed by the Advanced synoptic assessed only. 5

Professional Accounting Technician Apprentice End Point Assessment pathway AAT Professional Diploma in Accounting Apprenticeship elements Financial Statements of Limited Companies Management Accounting: Budgeting Management Accounting: Decision and Control Accounting Systems and Controls* Optional unit 1 These units and unit assessments count as the required On Programme Learning (OPL) for the Apprenticeship Gateway On completion of the OPL the employer and training provide sign off the apprentice ready for the End Point Assessment Optional unit 2 Available 12 months from Apprenticeship start date Professional synoptic assessment Student achieves AAT Professional Diploma in Accounting Portfolio Reflective Upload to SecureAssess Choose one: 1. Written statement: Upload with portfolio. Assessed by two independent assessors 2. Professional discussion: With two independent assessors The synoptic and portfolio reflective make up the End Point Assessment for Apprenticeship. Both elements must be achieved within a 12 month period Student achieves the Professional Accounting Technician Apprenticeship AAT confirms results and submits apprenticeship certification request As an AAT qualified apprentice, your student will have proved their skills in the workplace, gained a recognised qualification and the practical, technical and professional skills to make them a highly sought after employee. * Assessed by the Professional synoptic assessment only. 6

Maths and English Skills Maths and English are key life skills and central to success in any career. Training elements within apprenticeships need to incorporate opportunities to allow the apprentice to enhance and develop their use of maths and English skills to a Level 2 standard, if they ve not previously achieved this, within the business environment. Behaviours for the workplace The required behaviour expectations are outlined within the Assessment Plans aligned to each Apprenticeship Standard. As the provider, you ll need to give careful consideration to each behaviour requirement and consider how you will incorporate these within the learning for the apprenticeship. Make sure you look at: the behaviour categories outlined how they are assessed independently or integrated. 90% of apprentices stay in employment, 71% with the same employer Source: www.careermap.co.uk 7

END POINT Assessments (EPAs) This section includes: information about the EPA assessment method details information on EPA fees, scheduling and grading. The introduction of an End Point Assessment is probably the most significant change being implemented as part of the new Apprenticeship Standards. When the apprentice reaches the end of their apprenticeship, having completed a minimum of 12 months on-programme learning, you ll need to work with their employer to sign them off as ready for the EPA, moving them to what is known as the Gateway. As an Apprentice Assessment Organisation (AAO) we re approved to offer the EPAs for the Assistant Accountant and Professional Accounting Technician Apprenticeships. The EPAs offered by us will enable the apprentice to demonstrate they can perform the required activities and are fully competent in the knowledge, skills and behaviours outlined in the Assessment Standard and Assessment Plan. As the provider, you ll lead the relationship with the AAO as part of your agreement with the employer. Agreeing the overall cost to the employer, including any fees associated with the EPA. You ll also be responsible for scheduling the assessments with the AAO. 8

Methods of assessment AAT s EPAs will consist of two parts. 1 2 An online synoptic assessment. This will use our existing AQ2016 synoptic assessments, mapped to both the Assistant Accountant and Professional Accounting Technician apprenticeship standards, and will test the apprentices knowledge and practical capabilities, via a series of business related tasks through a role specific simulation. A portfolio and reflective assessment. Apprentices will need to collect evidence from the workplace to demonstrate competence of the defined knowledge, skills and behaviours. The portfolio of evidence will support and inform the assessment of a reflective statement. Apprenticeship Standard Assessment one Assessment two Assistant Accountant Apprenticeship Professional Accounting Technician Apprenticeship Online synoptic assessment Online synoptic assessment Portfolio of evidence and reflection: professional discussion. Portfolio of evidence and reflection: written statement, or professional discussion. 9

Becoming an EPA centre Training providers already approved to offer our AQ2016 assessments will be able to register as an EPA centre using our online EPA Centre Registration Service. If you re not currently offering our AQ2016 assessments, but want to register as an EPA centre with us, you ll be able to apply using a registration form. If you want to offer our AQ2016 Accounting Qualifications as part of the on-programme learning for either the Assistant Accountant Apprenticeship or the Professional Accounting Technician Apprenticeship, you ll first need to apply for approval to deliver these qualifications. You ll then be able to use the EPA Centre Registration Service to become an EPA centre. AAT s EPA fees Fees for the EPAs will vary depending on the apprenticeship level and relationship with the apprentice. Initial payments will include one attempt at each assessment, if re-sits are required for one or both elements of the EPA these will be charged separately. Find out more about the EPA fees at, aat.org.uk/epafees 10

Both elements of the EPA will be scheduled and managed using our online assessment platform, SecureAssess. For an EPA to be scheduled, there are four criteria that need to be met. 1 The apprentice must have completed a minimum on 12 months on-programme learning. 2 The apprentices needs to have reached a Level 2 standard in maths and English. 3 The apprentice must have progressed to the gateway phase, signed off as competent in relation to the knowledge, skills and behaviour requirements. 4 The portfolio of evidence needs to be signed off by you and the employer. To help you plan possible EPA dates for your apprentices, we publish our synoptic assessment dates in advance. 11

Assistant Accountant Apprenticeship Both elements of the apprenticeship EPA will be individually graded. To achieve a Pass the apprentice needs to get an overall grade of at least 70%, with a minimum of 90% needed to achieve a Distinction. The portfolio/reflective will be graded in accordance with AAT s scoring matrix where evidence of the required knowledge, skills and behaviours has been demonstrated. The synoptic assessment will account for 40% of the overall grade, while the portfolio/ reflective elements will account for 60%. Professional Accounting Technician Apprenticeship Only the synoptic assessment element of this EPA will be graded: the portfolio reflective will be assessed, but will not be graded. To be awarded a Pass the apprentice must achieve competence in all knowledge, skills and behaviours and a minimum of 70% for their synoptic assessment. To achieve a Distinction, they must be able to demonstrate full competence in knowledge, skills and behaviours requirements and gain a minimum result of 90% for their synoptic assessment. 12

APPRENTICESHIP funding This section includes: information about the new funding structure an example of how the apprenticeship levy will work. All apprenticeships have a funding cap applied to them. This will require an element of co-investment from all employers. The Assistant Accountant and Professional Accounting Technician apprenticeships will be capped at 9,000. Under the new structure, employers across England will be subject to the apprenticeship levy, a government tax of 0.5% of their pay-bill. The levy payment will be required from employers with a pay-bill of over 3 million, regardless of whether they employ an apprentice. All employers will receive a 15,000 allowance to offset against payment of the levy. As part of this change, control will move to the employers in terms of managing the allocation of funds to pay for apprenticeship training. 100K People with an advanced level apprenticeship earn on average over 100,000 more over their career than those without. 13

Current co-investment method for Apprenticeship Framework Funds are currently channelled through the leader training provider. The provider negotiates with the employer and collects their contribution. The provider receives any applicable incentive payments, transferring them to the employer. New levy method for Apprenticeship Standards Employers will fall into one of two groups; levy payers and non-levy payers. Non-levy payers: will continue to contribute to apprenticeship costs. You as the provider will continue to receive your allocations from ESFA. Levy payers: will contribute via their monthly payment into the new Apprenticeship Service. The Apprenticeship Service will be the central point for managing their apprenticeships and allocating payments to their chosen providers. 150K People with a Professional level apprenticeship earn on average over 150,000 more over their career than those without. 14

Levy example: Employer with a pay-bill of 2,000,000 0.5% x 2,000,000 = 10,000 10,000-15,000 = 0 annual levy payment Employer with a pay-bill of 5,000,000 0.5% x 5,000,000 = 25,000 25,000-15,000 = 10,000 annual levy payment from employer 10% top up 0.10% x 10,000 = 1,000 Total amount into employers Apprenticeship Service account 11,000 What does this all mean for you? The introduction of the end-point assessment gives you and employers increased flexibility for delivering apprenticeship training. You ll be able to build closer relationships with local employers and add value to their business. You ll have increased flexibility around the application of structured qualifications. You ll be able to vary your offering to employers and apprentices, depending on their business requirements. You ll need to design methods for on-programme assessments, if the employer doesn t require the apprentice to study a qualification. You ll have to work with the employer to consider the implications of working with an independent AAO. You ll need to agree a method for employers to formally sign-off the apprentice as ready for their EPA. You ll need to consider how to build in assessment of behaviours and prepare the apprentice for the EPA. 15

Preparing to deliver The four step action plan will help you prepare for the transition to the new Apprenticeship Standards. 1 Build relationships with local employers With the new Apprenticeship Standards adopting an employer-led focus, your relationships with local employers will become a valuable asset. The earlier you can build and develop relationships with employers, both big and small, the better position you ll be in. Consider consulting with them when you re putting together your offer. This will help you to ensure you re meeting the needs and skills requirements of the local area, in turn helping you attract the right students and create high calibre apprentices. 2 Decide on your on-programme learning offer You can choose from a range of qualifications to offer as part of the on-programme learning, such as AAT s Advanced Diploma and Professional Diploma in Accounting. Whatever you decide you ll need to consider qualification options, employer needs and engagement with an end-point assessment organisation, such as AAT. 16

3 Work with the employer to pick the Apprentice Assessment Organisation (AAO) As an AAO, we re registered to offer the EPA for both the Assistant Accountant Apprenticeship and the Professional Accounting Technician Apprenticeship. Our EPAs are designed so the apprentice can demonstrate competence in the knowledge, skills and behaviours outlined in the Standards. 4 Consider your pricing You ll need to create a flexible pricing structure that can be used as a base line for conversations and negotiations with employers. Elements such as the inclusion and provision of added value programme content, literature and the End Point Assessment all need to be taken into consideration. As the lead provider, you ll be responsible for the relationship with AAT in our capacity as the AAO. Visit aat.org.uk/trailblazer to find out more about the new Apprenticeship Standards.

Any questions? If you d like to know more about AAT and our qualifications, please get in touch with us. Call us on +44 (0)20 3735 2468. Lines are open 09.00 to 17.00 (UK time), Monday to Friday. Email us at aat@aat.org.uk or visit aat.org.uk/trailblazer /YourAAT @YourAAT forums.aat.org.uk /AAT /AATcpd BC2610317 2,000 Association of Accounting Technicians 140 Aldersgate Street London EC1A 4HY