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Rounding for Funding Calculations

Written by Josie
Updated yesterday

Unexpected totals can be difficult to explain to parents, especially when the calculations behind them are not obvious.

This option introduces a simpler and more intuitive rounding method for funding calculations in Famly. The updated method follows the same logic most people would use when calculating funding manually, making the result easier to understand and explain.


How the Funded Amount Is Calculated

Famly calculates the funded portion of a session by:

  1. Working out what fraction of the session is funded

  2. Applying that proportion to the total session price

  3. Rounding the result to the nearest penny

This approach produces a result that aligns closely with what you would expect when doing the calculation yourself.

To ensure accuracy, Famly performs calculations using seconds and pennies, so rounding happens at the penny level rather than the pound level.


The Calculation Formula

The formula used is:

ROUND((funded seconds × total price in pennies) ÷ total session seconds)

In simple terms, this means:

  • Calculate what share of the session is funded (funded hours ÷ total session hours)

  • Multiply that percentage by the total session price

  • Round the result to the nearest penny

For example, if a session lasts 8 hours and 6 hours are funded, then 75% of the session is funded.

If the session price is £50, then 75% of £50 = £37.50, which is the funded amount.


Why Rounding Matters

Funding calculations often result in numbers with many decimal places because session prices and funded hours rarely divide evenly.

Where and how rounding is applied can affect the final result. Rounding too early, or using complex methods, can create small differences that are difficult to predict or explain.

The updated method ensures rounding happens at the final step, producing clearer and more consistent results.


When the New Rounding Applies

If you choose to enable the simpler rounding method:

  • It will apply only to new or updated plans

  • Existing plans will continue using the previous rounding method until they are updated

If you later disable the option again, plans already saved using the new rounding will keep using that method until the plan is updated.


Comparing the Old and New Methods

The table below shows examples comparing the previous rounding method with the new one.

Session hours

Funded hours

Total price

Old method

New method

Difference

10.5

10

£69.97

£66.63

£66.64

+£0.01

4.75

4

£50.00

£42.10

£42.11

+£0.01

9

1.16

£110.00

£14.17

£14.18

+£0.01

9

7

£110.00

£85.55

£85.56

+£0.01

10

1.18

£16.00

£1.88

£1.89

+£0.01

10.5

1.18

£91.88

£10.31

£10.33

+£0.02

10.5

1.16

£91.88

£10.14

£10.15

+£0.01

8.5

3

£45.48

£16.04

£16.05

+£0.01

8.5

1.18

£45.48

£6.30

£6.31

+£0.01

4.75

3

£50.00

£31.57

£31.58

+£0.01

In most cases, the difference is only 1–2p per session, but the new method produces results that are more consistent with the expected calculation.


Explaining the Calculation to Parents

If a parent asks how their funded amount was calculated, you can explain it like this:

We calculate the funded amount by working out what portion of the session is covered by funding and applying that percentage to the session price. We then round the result to the nearest penny.

Example explanation

"Your funded hours cover [X] out of [Y] hours for this session. We calculate the funded deduction by applying that proportion to the full session price of [£Z], then rounding to the nearest penny. This gives a funded amount of [£result]."

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