Annual accountability returns

1. We have not received a copy of the instructions letter. What should we do?

The letter was posted on 10 October 2011 and was sent to the institution's AMS contact. If a further copy is required, contact Amy Parslow (tel 0117 931 7466) or Christine Smith (tel 0117 931 7068). We are unable to provide institutional or group codes over the phone (due to data security policy).

2. We are unable to log onto the extranet. What should we do?

Follow the instructions in the letter sent on 10 October 2011. For further difficulties contact Paul Gibbens (tel 0117 931 7311).

3. We are unable to see some of the AMS questions on our template. What should we do?

Institutions need only provide information on the questions shown in their template. The sample template in 'Annual accountability returns 2011' includes all the possible questions. Some of these questions apply to specific initiatives, which will not be relevant to all institutions.

If institutions think that there are questions missing, contact Paul Gibbens (tel 0117 931 7311).

4. Can we expect feedback and if so, what form will the feedback take?

Feedback will take the form of the risk letter updating our risk assessment of the institution and data that benchmark financial performance against the whole sector. In addition to the risk letter, we will publish an outcomes document reporting on our review of the 2011 returns.

See paragraphs 72 and 73 in 'Annual accountability returns 2011'.

1. We have not received a copy of the instructions letter. What should we do?

We posted this letter on 4 October 2011 to institutional heads of finance. If a further copy is required, contact Amy Parslow (tel 0117 931 7466) or Christine Smith (tel 0117 931 7068). We are unable to provide institutional or group codes over the phone (due to data security policy).

2. We are unable to log onto the extranet. What should we do?

Follow the instructions in the letter sent on 4 October 2011. A copy of the guidance is available in 'Annual accountability returns 2011'.

In the event of further difficulties, contact Patrick Jennings (tel 0117 931 7051).

3. We are having difficulties in uploading documents to the extranet. What should we do?

The letter sent on 4 October 2011 includes the instructions on how to upload documents. If there are still difficulties, contact Patrick Jennings (tel 0117 931 7051).

4. Do we need to send signed financial statements (annual accounts)?

Yes. The document should be signed by all the relevant parties and then scanned as a pdf and uploaded to us via the extranet (see paragraph 37 in 'Annual accountability returns 2011').

5. What Gross Domestic Product (GDP) Deflator assumptions should we be making?

These can sometimes be taken as likely increases in HEFCE funding. We have not, therefore, provided guidance on these this year. Further guidance on Treasury's GDP deflator figures are available.

6. We want to upload more than one document for the audit committee annual report (or another return). How can we do this?

To help us review these documents, please combine them into a single document before uploading to the extranet. Note that files should be named as described in the guidance letter sent on 4 October 2011. For example, three documents related to the audit committee annual report should be combined into a single document called 'ACREPORT_XXXX' (where XXXX is the institution's HESA code).

If there are still difficulties, contact Patrick Jennings (tel 0117 931 7051).

If you wish to upload a revised document for any of the links, then please contact Patrick so that your previous document can be deleted.

7. Can we expect feedback and if so, what form will the feedback take?

Feedback will take the form of the risk letter updating our risk assessment of the institution, and data that benchmark financial performance against the whole sector. In addition to the risk letter, we will publish an outcomes document reporting on our review of the 2011 returns.

8. Who should sign the Annex E?

As for last year's return, part 1 should be signed by the accountable officer and part 2 signed by an appropriately authorised trustee (note, part 2 is not required from HEIs that are either not a charity or are registered and make an annual return directly to the Charity Commission).

9. Why are two sign-offs needed for the Annex E?

Part 1 of the Annex E is for the accountable officer to confirm that the institution has met its obligations to HEFCE under the Financial Memorandum. Part 2 is for an authorised trustee to confirm that the institution is complying with its duties as a charity and thus enables HEFCE to fulfill its duties as principal regulator.

10. What assumptions should we include in our financial forecasts?

Within the guidance issued earlier ('Annual accountability returns 2011') we request that all institutions must take account of the changing funding environment, their own plans regarding fee levels, and assumptions about the impact of these on demand. Paragraphs 25-28 of the guidance document provide some information about the future context for higher education.

The financial forecasts should represent the institution's strategic plan in financial terms. The forecasts should be based on realistic assumptions and be consistent with the accounting treatment in the financial statements. We recognise that this return is a snapshot at a point in time and therefore request that, if anything significant changes in your performance relative to forecast, then you should notify HEFCE of a 'material adverse change' outlined in the Financial Memorandum (HEFCE 2010/19, paragraph 18).

11. What are we expected to submit for the forecasts and financial commentary and when?

The financial forecast table requests the same information as last year. But we are requesting submission of the forecast information in two stages:

Stage one

By 1 December 2011, the financial tables should be submitted containing the 2009-10 and 2010-11 figures from the most recent set of audited financial statements, together with forecasts for 2011-12. The forecasts for future years are not requested for this submission date. The 2009-10 data column will be pre-filled with the data provided by your institution in the 2010 return. The figures can be overwritten with restated figures if necessary.

Due to the deferral of submission of the forecasts, we expect institutions to provide only a short financial commentary in December 2011 that sets out the key assumptions relating to the 2011-12 forecasts. As part of this commentary we would expect institutions to explain significant movements relating to the 2010-11 outturn and 2011-12 forecasts compared to the last submission to HEFCE (for most institutions this was April 2011). We define a significant movement as ±10 per cent in any one year on the income and expenditure account and material changes on the balance sheet (including the detail on any material exceptional items).

Stage two

By 20 June 2012, the financial tables should be submitted containing updated forecasts for 2011-12 and forecasts for the period 2012-13 to 2014-15 which should present the institution's strategic plan in financial terms. The forecasts should be based on realistic assumptions and be consistent with the accounting treatment in the financial statements. The financial commentary about future sustainability should also be submitted at this time.

We recognise that these returns are snapshots at a point in time and therefore request that, if anything significant changes in your performance relative to budget/forecast, then you should notify HEFCE through the 'material adverse change' procedure outlined in the Financial Memorandum (HEFCE 2010/19, paragraph 18).

In developing the financial forecasts, institutions must take account of the changing funding environment, their own plans regarding fee levels, and assumptions about the impact of these on demand. Further guidance will be issued in spring next year.

We have decided to defer submission of the financial forecasts due to the large degree of uncertainty in the sector. This includes, for example, student number control limits, future HEFCE funding and future student recruitment. While not eliminating all of the uncertainty, deferral should enable institutions to produce more reliable forecast information (for both HEFCE and internal use) as HEFCE will have received their grant letter from BIS and the potential implications of the teaching funding consultations will be known.

BUFDG, on behalf of the sector, have been consulted on the change. We require that the governing body approve both the 2011 annual accountability returns and the submission of full financial forecasts information (up to 2014-15) by 20 June 2012.

If the change in submission dates presents timetabling difficulties for governing-body approval, we would expect approval to be delegated to the Chair or to the Finance Committee or equivalent and retrospective approval at the next governing body meeting.

If this creates difficulties for institutions we request that they contact their HEFCE Assurance Consultant to discuss.

12. Why is there no longer a requirement to submit a corporate planning statement (CPS)?

This decision follows our review of the returns requested and the need to ensure an appropriate balance with respect to the accountability burden that we place on institutions. This is particularly the case now that we have introduced a value for money report in the annual accountability return.

13. Why is there no longer a requirement to submit a research activity survey (RAS) return?

We no longer require submission of the RAS return because for 2012-13 onwards we will use HESA data on postgraduate research full-time equivalent (FTE) numbers to inform quality-related research degree programme supervision funding and research income from charities to inform quality-related research charity support funding.

For more information see 'Discontinuation of the Research Activity Survey and future arrangements for data collection' (HEFCE Circular letter 19/2011).

14. Why are you asking for a value for money report? And what format should this be in?

Following the Public Accounts Committee hearing and given the current economic environment, there is increased focus on value for money for public funds provided in the HE sector as well as for the student in respect of the fee paid.

We are, therefore, requesting submission of annual value for money reports and note that around half of the institutions submitted their annual value for money reports as part of their 2010 annual accountability return. Where the institution produces such an annual report for internal purposes, we will be pleased to receive a copy of this as part of their return.

There is no prescribed format for this report and we are happy to accept an annual report produced for internal purposes, provided this is reviewed by the governing body (either by the board of governors or audit committee).

Good practice around value for money activity and reporting is available .

15. The financial results and forecasts return workbook shows a validation failure, what should we do?

If your workbook has a validation error, please check your data to make sure it has been entered correctly. If you understand your data to be correct then please provide a brief explanation in the boxes provided at the bottom of the validation worksheet and then upload your return.

16. Can we upload all of the annual accountability returns in one upload?

No. Please upload each document individually to the relevant link on the HEFCE extranet.

17. Can we upload all of the annual accountability returns in one upload?

No. Unfortunately our extranet is currently unable to accept Office 2007/2010 files. Please save any Excel workbooks in the '.xls' format. If your institution uses Office 2007/2010, you will need to select 'Excel 97-2003 workbook (*.xls)' in the 'Save as type' drop-down box when saving your file. Please save any Word documents in the '.doc' format. If your institution uses Office 2007/2010, you will need to select 'Word 97-2003 document (*.doc)' in the 'Save as type' drop-down box when saving your file.

1. We have not received a copy of the instructions letter. What should we do?

We posted this letter on 4 October 2011 to institutional heads of finance. If a further copy is required, contact Amy Parslow (tel 0117 931 7466) or Christine Smith (tel 0117 931 7068). We are unable to provide institutional or group codes over the phone (due to data security policy).

2. We are unable to log onto the extranet to access the annual TRAC return. What should we do?

Follow the instructions in the letter sent on 4 October 2011. In the event of further difficulties, contact Anna Hertzberg-Sully (tel 0117 931 7395).

3. Do we need to post a hard copy of the TRAC return to you?

No. As for last year's submission, we are asking institutions to upload their signed hard copy of the annual TRAC return to us electronically via the HEFCE extranet. The return should be signed by the head of institution and then scanned as a pdf and uploaded to the HEFCE extranet (see instructions in the letter sent on 4 October 2011). In the event of further difficulties, contact Anna Hertzberg-Sully (tel 0117 931 7395).

4. We are having difficulties in uploading the annual TRAC return to the extranet. What should we do?

The letter sent on 4 October 2011 includes instructions on how to upload documents and details on how to resolve common problems with uploads. If there are still difficulties, contact Anna Hertzberg-Sully (tel 0117 931 7395).

5. Has my annual TRAC return file uploaded successfully to the HEFCE extranet?

To check if your file has been processed successfully please review the messages in the section 'History of Annual TRAC return 2010-11 submissions'. If your return has uploaded successfully, the link 'Results' will become active. By clicking on this link, you can download your results package. You should review this results file to check you have passed the two validation checks which function during the upload process.

6. The annual TRAC return workbook shows a validation failure, what should we do?

If your workbook has a validation error, please check your data to make sure it has been entered correctly. If you understand your data to be correct, then please provide an explanation in your commentary document and then upload your return.