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·	From Theory To Practice

The evaluation has focussed on formative issues and, in particular, on the transition from a "seat purchase" approach to funding training to a training allowance approach using negotiated financial assistance (NFA) where HRDC funds eligible clients based on need.

The conclusions of the evaluation follow:

HRDC has largely moved to a training allowance approach for funding of training undertaken by eligible EI clients.

In 1995/96, 100% of training was funded under the seat purchase model. This fell to about 40% in 1996/97 and about 20 - 25% for the past two fiscal years.

Negotiated Financial Assistance processes continue to develop and both advantages and disadvantages of this approach have been noted. Careful monitoring of the effectiveness and appropriateness of NFA processes is warranted.

This evaluation has found conflicting evidence regarding NFA. On the one hand:

• NFA has reduced per client expenditures to a lower level. Adjusting for the variety of length of training programs, payments to enhanced feepayers are (on average) lower than payments to "seat purchase" clients (see Table 3). The analysis in Table 3 understates the savings since for "seat purchases", the "average amount of assistance" does not include tuition costs paid directly to the Department of Education or to educational institutions.
• clients are generally satisfied with the level of financial assistance provided (75% of survey respondents were satisfied)
• virtually all (93%) counsellors (including HRDC and third party) cited NFA as an improvement over the old way of funding training clients.

On the other hand:

• clients were somewhat less satisfied with the process used to determine the level of financial assistance. In the survey, satisfaction was reasonably high (69%) but serious concerns about transparency and fairness were identified in all three focus groups with training clients as well as in a focus group with HRDC counsellors; and,
• the survey of counsellors identified several suggestions to improve this process.

Since the signing of the Canada/Newfoundland and Labrador Agreement on Labour Market Development and the introduction of Negotiated Financial Assistance, clients training choices have evolved in a way that is consistent with the opportunities being offered by the labour market.

In particular, the evaluation has found a marked increase in the number of individuals undertaking training in business and information technology and a decrease in studies relating to natural resources, applied arts and apprenticeable trades. Interestingly, these trends are consistent with changes noted for all post-secondary students but are much more pronounced among HRDC-funded students. In particular, there has been a growth or more than 200% in the numbers of HRDC-funded students who enrol in information technology programs as compared to a growth of about 25% in overall enrolment in such courses.