You are in :

June 2008/19
Core funding/operations

Effective 1 August 2008

Model Financial Memorandum between HEFCE and institutions

The model Financial Memorandum, between HEFCE and the institutions we fund, sets out the terms and conditions for payment of HEFCE grants. The memorandum should be read in conjunction with Part 2, the schedule, which gives conditions specific to the institution, the funds available to the institution, and the educational provision the institution has agreed in return for those funds. This document replaces HEFCE 2006/24 issued in July 2006.

Table of contents (read online)


  • Financial Memorandum between HEFCE and institutions
    • Purpose of this document
    • Our responsibilities to institutions
    • Institutions' responsibilities to HEFCE
    • Financial management and sustainability
    • Estate management and exchequer interests
    • Accountability and risk assessment
    • Revisions to the memorandum
  • Annex A: Mandatory requirements of the Financial Memorandum and Accountability and Audit Code of Practice
  • Annex B: Accountability and Audit Code of Practice
    • Executive summary
    • Introduction
    • Corporate governance
    • Higher education audit framework
    • General principles for internal and external auditors
    • Audit and risk assessment of HEIs by the HEFCE assurance service
    • Audit committees in HEIs
    • Internal audit arrangements in HEIs
    • External audit arrangements in HEIs
  • Annex C: Allocating and paying funds
  • Annex D: Institutional engagement and support strategy
    • Introduction
    • Normal contact
    • Focused dialogue
    • Support strategy
  • Annex E: Annual assurance return from institutions
  • Annex F: Consent for financial commitments
    • Introduction
    • Definitions
    • Our response
    • Information required
  • Annex G: Exchequer interests
    • Introduction
    • Requirements
    • Circumstances in which the exchequer interest becomes repayable
  • Annex H: Definitions and abbreviations