Charging arrangements

Background

5 HSE is required by Government to recover the costs of performing the regulatory activities that will fall under the 1981 and 1989 Regulations through charges.

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Chargeable activities

6 The charges will cover the following functions (Annex A sets out examples of these activities in greater detail):

1. original approval:
   1. application for an 'original' approval which includes the 'original approval assessment visit' carried out prior to approval being granted and the 'original approval monitoring visit' carried out immediately post approval. (The costs of both these visits are included in the original approval fee);
   2. an additional site-visit where a shortcoming in the training is identified during a site-visit;
2. post approval monitoring visits to ensure training standards that form part of the terms of the approval are being maintained:
   1. 'initial visit' to ensure required standards are being maintained;
   2. where there is a shortcoming in the training provision, an additional visit;
3. applications for renewal of approval.

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Charges

7 A system of predetermined, set fees for training approvals, with discounts for multiple approvals applications, has been put in place. The fees reflect the actual cost to HSE of performing the functions. The fees have a sufficiently close relationship to the actual costs of the function being performed by HSE, on behalf of that particular training organisation, to be designated as a charge and to fall within HSE's existing charging powers. Flat rate fees linked to the approvals function will help providers plan by providing predictability and will assist HSE in recovering the relevant costs incurred. The way in which HSE has approached the identification of the relevant costs for inclusion in the fees follows the guidance in HM Treasury's Fees and Charges Guide1.

8 From 2 April 2002, the fees charged for single and multiple applications for approval are set out below.

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Single 'original' and renewal applications and site-visits

1. The fee for an application for an 'original' or first approval will cover all assessment activity including the 'original approval assessment visit' and the 'original approval monitoring visit' which is undertaken as soon as is practicable after the original approval has been granted by HSE:
   • first-aid training - £890;
   • medical training - £1,305;
2. where a shortcoming in the training is identified during a site-visit, an additional site-visit will be required to ascertain that the shortcoming has been addressed before the approval can be granted. The applicant will be charged an additional fee for such a visit:
   
   • first-aid training - £320;
   • medical training - £845;
3. post-approval monitoring site-visits to approved training organisations/persons are undertaken to ensure training standards that form part of the terms of the approval are being maintained. A fee will be payable for:
   
   1. 'initial visit' to ensure required standards are being maintained:
      • first-aid training - £355;
      • medical training - £845;
   2. those cases where an additional visit is considered necessary because a shortcoming in training provision has been identified:
      • first-aid training - £320;
      • medical training - £845;
   3. should a visit be made to monitor standards for both first-aid and medical training, and this takes less than one day, a discount will be made of £150;
4. applications for renewal of first-aid and medical training approval certificates, which have a five year duration, incur a charge of £62.

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Multiple 'original' applications

1. Should the training provider apply for a second 'original' approval for first-aid training provision, or make two 'original' applications for first-aid training simultaneously, a discount will be made from the 'original' application of £150. Should the training provider holding an approval for first-aid training provision, subsequently apply for an approval for medical training provision, a discount will be made from the 'original' application of a further £50;
2. should the training provider apply for a second 'original' approval for medical training provision, or make two 'original' applications for medical training and first-aid training simultaneously, a discount will be made of £50. Should the training provider holding an approval for first-aid or medical training provision, subsequently apply for an approval for first-aid training provision, a discount will be made from the 'original' application of a further £150;
3. should the training provider apply for a second 'original' approval for first-aid provision, or make two 'original' applications, one for first-aid training and the other for medical training provision simultaneously, a discount shall be made from the 'original' application of £50. Should the training provider holding an approval for first-aid or medical training provision, subsequently apply for an approval for first-aid training provision, a discount will be made from the 'original' application of a further £150;
4. should the training provider apply for two 'original' approvals for first-aid training provision and also for medical training provision, a discount will be made of £200;
5. the table, below, summarises the discounts for multiple 'original' applications for the various combinations of first-aid and medical training:

	Application	Total Discount	Resultant fee	Guide ref.
1	Two simultaneous 'original' applications for first-aid training.	£150	£1,630	8 (v)
2	An 'original' application for first-aid training followed later by an 'original' application for another type of first-aid training.	£150	£1,630	8 (v)
3	An 'original' application for first-aid training followed later by an original application for medical training.	£50	£2,145	8 (v)
4	Two simultaneous 'original' applications for first-aid training followed later by an original application for medical training.	£200	£2,885	8 (v)
5	Two simultaneous 'original' applications, one each for "first-aid" and "medical" training.	£50	£2,145	8 (vi), 8 (vii)
6	An 'original' application for medical training followed by an 'original' application for first-aid training.	£50	£2,145	8 (vi)
7	An 'original' application for first-aid training following two 'original' applications, one for first-aid training and one for medical training.	£200	£2,885	8 (vi)
8	An 'original' approval for medical training, followed by two 'original' applications for first-aid training.	£200	£2,885	8 (vii)
9	Two 'original' applications for first-aid training and an application for medical training simultaneously.	£200	£2,885	8 (xiii)

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Who will be subject to the charge?

9 Charges will fall to the person or business who makes an application to the Executive for an original approval of training or a renewal of an approval of training under regulation 3(2)(a) of the 1981 Regulations and regulation 5(2)(a) of the 1989 Regulations.

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Methodology used for calculating charges

10 The fee is calculated on the basis of the full cost of HSE's First Aid Approvals and Monitoring Section (FAAMS) and the actual cost per visit carried out by HSE's contractor. The costs for each of the four functions identified in paragraph 8 above have been averaged to provide a flat rate fee payable by all providers. The fees have been calculated in accordance with HM Treasury's Fees and Charges Guide. The costs included in the calculation of the fees are:

1. gross salaries;
2. common services (e.g. finance, personnel);
3. depreciation of fixed assets;
4. accommodation costs;
5. travel and subsistence;
6. staff development and training;
7. office services (e.g. postage and telecommunications);
8. notional costs (costs of capital and insurance);
9. services bought from external suppliers;
10. any other appropriate costs that may arise.

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Administrative and financial arrangements

11 HSE will issue invoices, receive payments for all chargeable activities and be responsible for debt recovery. Upfront payments will be required for applications for original and renewal approvals. However, invoices will be issued by HSE following an additional site visit in connection with an approval and for all post approval monitoring visits (including cases where an additional visit is required). Invoices will identify:

1. the type(s) of fee being charged;
2. the total payable; and
3. the location of the site visited and the date the visit took place.

12 Invoicing and debt recovery functions will be carried out centrally by HSE's Finance Unit 2; HSE staff (or their contractors) undertaking assessment activity or making monitoring visits will not be responsible for the issuing of invoices nor for any follow up actions relating to non-payment of invoices. Queries on invoices should be referred to the contact point given at paragraph 23.

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Payment and invoicing arrangements

13 Payment of fees should be made as follows:

1. application for an original approval or a renewal of an approval: payment should accompany the application;
2. any additional pre-approval site visit: payment must be made prior to the notification of the result of the application;
3. post approval monitoring visits (both 'initial' and 'additional'): payment will be due to HSE within thirty days of the date of invoice (see paragraph 14).

14 Under the charging arrangements, the invoicing of training providers in respect of post approval monitoring visits will take place within twenty working days of the end of the month in which the visit was carried out.

15 HSE will actively pursue outstanding debts in accordance with its own debt recovery procedures.

16 HSE will prepare an annual Memorandum Trading Account which will be subject to scrutiny by HSE's Internal Audit and externally by the National Audit Office.

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Queries on invoices

17 If a training provider queries an invoice, the principles of Service First (the new Citizens Charter - see the booklet 'The Health and Safety Executive and You' [HSE 34]) will apply. The procedures to be adopted will be subject to internal operational guides which will detail the steps to be taken in these circumstances.

18 All queries will initially be directed to HSE's Finance Unit 2, Bootle. Finance Unit will be responsible for answering queries relating to the information contained in the invoice, such as invoice accuracy, method of payment, VAT, address etc.

19 If the query relates to a visit made by HSE's contractor, Finance Unit will refer it to FAAMS for the appropriate action.

20 HSE will assume that training providers' accounting systems allow part payments to be made. If this is not the case, a note to this effect should be sent to Finance Unit (address at paragraph 23) so that standing training provider information can be amended and the appropriate action taken. Where there is a dispute over part of an invoice, the undisputed amount will be payable within 30 days. Once the dispute has been resolved, the amount agreed between HSE and the training provider will be payable within 30 days of the date of the original invoice, or where the original 30 day period has expired, within 10 days of notification of the outcome of the dispute.

21 If, once any query has been dealt with, the invoice remains unpaid and HSE is satisfied that, in all respects, the charge is in accordance with the regulations, it will actively pursue the debt in accordance with its own debt recovery procedures.

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Other queries

22 A training provider may have a query which does not relate to charging e.g. concerning progress on their application for a certificate or the reason that a visit was made. In such cases, these queries should be directed to FAAMS.

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Contacts for advice and guidance

23 Should you need advice on the operation of the charging system or have a specific query related to the charging scheme, please telephone or write to HSE at:

HSE
Finance Unit 2 (FAA)
Planning, Efficiency & Finance Division
Room 416
St Hugh's House
Trinity Road
Bootle, L20 3QY

Tel: 0151 951 4326
Fax: 0151 951 4141

24 If you have a query as in paragraph 21 on the operation of the 1981 or 1989 Regulations, please telephone or write to HSE at:

25 HSE's guidance 'The Training of First-Aid at Work (a guide to gaining and maintaining HSE approval - ISBN 0 7176 1896 X) is available from HSE Books: Tel: 01787 881165.