Memorandum submitted by the Association
of Accounting Technicians
1. INTRODUCTION
1.1 The Association of Accounting Technicians
(AAT) welcomes this opportunity to provide written evidence to
the Education and Skills Select Committee inquiry into the National
Skills Strategy.
1.2 The AAT is the UK's largest awarding
body of vocational accounting qualifications, awarding 83% of
NVQ certificates in Accounting in 2001-02 (DfES). It is also a
highly respected professional membership organisation that works
with, and is sponsored by, four of the UK's leading chartered
accountancy bodies: CIPFA, ICAEW, CIMA and ICAS. The AAT's Accounting
Qualification (consisting of NVQ Levels 2, 3 and 4 in Accounting)
provides well-established progression route to all the UK's senior
accountancy bodies. Almost every Modern Apprentice in accounting
completes their qualification through the AAT.
1.3 The AAT provides a recognised professional
qualification and membership body for accounting technicians with
100,000 student, affiliate, full and fellow members worldwide
(our membership is a similar size to that of the Royal Institution
of Chartered Surveyors). The AAT provides a framework for the
lifelong learning and development of its members. One quarter
of our members are in the 16-24 age group.
1.4 The AAT represents accounting technicians
working at various levels in the accounting and finance function
in all industries and sectors, and organisations large and small.
Some AAT members are regulated to provide accounting services
on a self-employed basis. They provide cost-effective accountancy
and taxation services to small and medium-sized organisations
and the public.
2. NEED FOR
PRACTICAL SKILLS-BASED
QUALIFICATIONS
2.1 The AAT fully supports the Government's
stated objective of increasing the UK's skill levels and encouraging
lifelong learning to ensure the UK's economy is competitive. The
AAT believes that the Government will achieve this objective by
a more strategic focus on practical skills-based qualifications.
By directing adequate funding at vocational skills-based qualifications,
rather than non skills-based qualifications, the Government will
send a clear message that its priority is to raise the employability
and effectiveness of the UK workforce.
2.2 The AAT supports the principle of widening
access to, and participation in, vocational training within the
14-19 age group and is working with a school on a pilot project
to deliver an NVQ in accounting for the 14-16 year age group.
It is essential that work like this is given adequate funding
and promotion to achieve parity of esteem between academic and
vocational qualifications and make skills-based qualifications
a real option within this age group.
3. NEED FOR
CONSISTENCY BETWEEN
POLICY AND
IMPLEMENTATION
3.1 We believe it is imperative that the
Government and its delivery agencies—the DfES, QCA and LSC—work
more effectively together at national, regional and local level.
Consistency between policy and implementation is vital. Where
there is not a clear understanding or follow-through on the rationale
behind policies at the implementation stage, the outcome is affected.
The AAT is concerned by the apparent lack of a clear overall national
skills strategy and accountability for delivery. Clarity is hampered
by the plethora of agencies involved and the lack of coherence
in their roles and responsibilities. The current structures are
wasteful of resources. We urge the Government to undertake an
intelligent reform of this framework for delivery in the interest
of learners and employers.
3.2 A specific example of where more work
needs to be done in this area is with the Modern Apprenticeship
frameworks. It is essential, if these are to retain employer support,
that flexibility is applied so that the achievement of the different
components: NVQs, Technical Certificates and Key Skills, does
not require duplication of assessment. Where the Technical Certificate
and Key Skills are embedded in NVQs, as is the case with the AAT's
NVQs in Accounting, this should be recognised by regulatory agencies
and funders.
4. ONEROUS REGULATION
4.1 The AAT believes that the regulation
of NVQs places too much emphasis on rigid rules and regulations,
and not enough emphasis on fitness for purpose or the needs of
the market.
4.2 More emphasis must be given to balancing
employer and learner demand with the necessary incentive for training
providers to deliver qualifications. Government strategy, and
the work of agencies supporting and implementing the strategy,
must be focussed on skills and outcomes, not input and process.
4.3 In particular, the AAT's qualification
is in danger of being disadvantaged by onerous regulation created
by being an NVQ. This is encouraging Further Education colleges
to consider ceasing delivery of the AAT's qualification in favour
of qualifications which are not skills-based and which have less
regulation. The regulatory burden is exacerbated by the overlapping
regulatory regimes of the different agencies involved in quality
assurance: QCA, ALI and LSC at national and local levels. The
AAT is not convinced that these regulatory requirements, which
are costly and resource intensive, are adding value for learners
or employers.
5. PROFILE OF
SKILLS-BASED
QUALIFICATIONS
5.1 The AAT believes that much work is still
needed to raise the profile of skills-based qualifications and
promote them as a professional and credible route to qualifications
higher than NVQ level 4.
5.2 The AAT's qualifications plug the skills
gaps identified in the 21st Century Skills paper at both level
2 and at associate professional or technical level. The AAT offers
a lifelong learning package and an excellent progression route
from level 2 through to senior level qualifications. The AAT's
qualification and membership develop relevant, practical accounting
and finance skills for life.
5.3 The AAT recognises that improving the
credibility of skills-based qualifications depends on ensuring
that they lead to worthwhile career opportunities. For this reason,
the AAT has developed a popular and successful fast-track route
for those holding the AAT's NVQ level 4 qualification to become
a Chartered Accountant with the Institute of Chartered Accountants
in England and Wales (ICAEW). This route provides a high-quality
vocational opportunity which puts holders of the AAT qualification
on a par with university graduates. Employers of the AAT's Modern
Apprentices in Accounting have warmly welcomed fast-track. The
proportion of ICAEW students entering with NVQs increased from
5.4% in 2001-02 to 8.7% in 2002-03.
6. FUNDING OF
NATIONAL FRAMEWORK
QUALIFICATIONS
6.1 There is increasing evidence of the
distribution of funding to qualifications outside the national
framework raising doubts among Further Education colleges as to
whether they should offer qualifications within the national framework.
There is also very little difference now between funding for qualifications
which are skills-based and those which aren't. Thus there is a
lack of incentive for training providers to offer qualifications
which increase the UK's skills base because, as explained in 4
(above), these come with increased regulatory requirements.
6.2 There is little incentive for qualifications
to be inside the framework since decisions on funding of learning
in the FE Sector are made by the LSC, not the QCA. As a result,
accreditation by the QCA, and the distinction between skills based
qualifications and those which simply test knowledge, is no guarantee
of funding.
7. SUMMARY
7.1 The Association of Accounting Technicians
fully supports the Government's stated objective of increasing
the UK's skill levels and encouraging lifelong learning to ensure
the UK's economy is competitive.
7.2 Failure to focus on practical skills-based
qualifications, ensure consistency between policy and implementation,
improve accountability for delivery, address the problems of onerous
regulation, raise the profile of skills based-qualifications and
review the distribution of funding have the potential to undermine
Government policy. Without a clear strategy, the Government will
not achieve its laudable aim of improving the UK's skills base
and the competitiveness of the UK's economy.
31 March 2004
| 
