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HEFCE

January 2008/01
Core funding/operations
Consultation

Responses should be made by e-mail by 28 February 2008


Revisions to Financial Memorandum
Consultation on changes to the funding agreement between HEFCE and institutions

This is a consultation on changes to the Financial Memorandum between HEFCE and institutions. It incorporates consultation on revisions to the Accountability and Audit Code of Practice (HEFCE 2004/27). Amended versions are to take effect from 1 August 2008.

Outcome of the consultation: Model Financial Memorandum between HEFCE and institutions


To: Heads of HEFCE-funded higher education institutions
Heads of HEFCE-funded further education colleges
Heads of universities in Northern Ireland
Of interest to those responsible for: Audit, Finance, Senior management, Governance
Reference: 2008/01
Publication date: January 2008
Enquiries to: Paul Greaves
tel 0117 931 7378
e-mail p.greaves@hefce.ac.uk

Executive summary (read online)


Download

Report

[ MS Word 377K | Zipped Word 70K | Adobe PDF 79K | Zipped PDF 64K ]

Annexes A-H

[ MS Word 359K | Zipped Word 95K | Adobe PDF 307K | Zipped PDF 236K ]

Annex I - Consultation response form

[ MS Word 69K | Zipped Word 10K | Adobe PDF 36K | Zipped PDF 25K ]

These files were updated on 18 January 2008 to amend paragraph references and give respondents the opportunity to add any other comments they have to their response forms.

Contents

  • Executive summary
  • Consultation process
  • Summary of proposed changes to Financial Memorandum
  • Draft Financial Memorandum between HEFCE and institutions
  • Consultation questions on the Financial Memorandum

Annexes (web only)

  • Annex A Mandatory requirements of the Financial Memorandum and Accountability and Audit Code of Practice
  • Annex B Accountability and Audit: Code of Practice
    • Summary of proposed changes to the Code
    • Draft Accountability and Audit: HEFCE Code of Practice
      • Sample value for money strategy and annual report
    • Consultation questions on the Accountability and Audit Code of Practice
  • Annex C Allocating and paying funds
  • Annex D Institutional engagement and support strategy
  • Annex E Annual assurance return from institutions
  • Annex F Consent for financial commitments
  • Annex G Exchequer Interests
  • Annex H Definitions and abbreviations
  • Annex I Consultation response form: Financial Memorandum and Audit Code of Practice

Executive summary

Purpose

1.   This is a consultation on changes to the Financial Memorandum (FM) between HEFCE and institutions. It incorporates consultation on revisions to the Accountability and Audit Code of Practice (Code). Amended versions are to take effect from 1 August 2008.

Key points

2.   The Financial Memorandum sets out the conditions attached to HEFCE funding which must be complied with by institutions. The Accountability and Audit Code of Practice sets out our audit and accountability requirements.

3.   The FM and Code are both due for review. The suggested changes will result in these two documents being brought up to date, and better aligned to a higher education (HE) sector in which institutions are autonomous and demonstrably sustainable. We continue to encourage effective accountability on the part of institutions, and these revised documents will serve to better achieve this no matter how the mix of public-private funding evolves in coming years.

Financial memorandum

4.   The document that is under consultation constitutes Part 1 of the FM. We are not proposing any changes to Part 2, the annual schedule of funds and conditions relating to each institution.

5.   We propose to adopt a new principles-based approach to the FM which is less prescriptive and more attuned to better regulation.

6.   We have clarified that HEFCE's principal interests are that we meet our responsibilities to Parliament, ensuring primarily that our funds are used for the purposes intended, and that institutions remain sustainable. We have also updated our institutional support strategy.

Accountability and Audit Code of Practice

7.   The principal proposed changes to the existing Code (HEFCE 2004/27) are described at Annex B. The only new proposed mandatory requirement is that we are seeking assurance about the management and quality assurance of data submitted to the Higher Education Statistics Agency (HESA) and HEFCE.

Action required

8.   Responses to HEFCE are invited by e-mail, using the response form at Annex I, by Thursday 28 February 2008. All annexes are available above.