C26/94 Annual Finance Return 1993-94
| To | Heads of Higher Education institutions |
| Summary | This circular requests institutions to return finance statistics for the accounting period 1993-94. |
| Reference | 26/94 |
| Publication Date | September 1994 |
| Response by | 30 November 1994 for former UFC-funded institutions 16 January 1995 for former PCFC-funded institutions |
| Enquiries to | Keith Harris (0272 317395) |
Introduction
1. A new Finance Statistics Return (FSR), covering all higher education
institutions, will be introduced for the academic year 1994-95 and will
be collected by the Higher Education Statistics Agency (HESA). This will
replace the Form 3 and Finance Record returns made by institutions
formerly funded by the Universities Funding Council (UFC) and the
Polytechnics and Colleges Funding Council (PCFC) respectively.
2. In the meantime, for the accounting period 1993-94, institutions
should continue to complete Form 3 and the Finance Record. Annex A
explains the procedures to be followed in completing the 1993-94 Form 3
return by institutions formerly funded by the UFC. Annex C explains the
procedures to be followed in completing the 1993-94 Finance Record by
institutions formerly funded by the PCFC.
Former DFE/LEA Funded Institutions
3. Those institutions which were formerly funded by the Department for
Education or by Local Education Authorities and became part of the HEFCE
sector from 1993 onwards are not required to make a return.
Equipment Expenditure
4. Among the data sources used in calculating the equipment grant is
equipment expenditure by academic cost centre. In previous years, these
data have been taken from Table 6 in the Form 3 return by the former UFC-
funded institutions. This information has not previously been requested
within the Finance Record for the former PCFC-funded institutions. The
FSR to be introduced in 1994-95 does not include a table for equipment
expenditure. However, equipment expenditure by academic cost centre will
continue to be required to inform the funding of equipment and it will,
therefore, be necessary to collect such data from institutions.
Institutions are invited to say in a covering letter whether these data
requirements for the academic year 1994-95 onwards should be included as
part of the FSR or should be collected as a separate survey by the HEFCE.
5. For the academic year 1993-94, former PCFC-funded institutions are
requested to complete an additional table on equipment expenditure by
academic cost centre. Paragraph 7 of Annex C gives guidance on the
completion of the table.
Computer Disk
6. The computer disk containing the spreadsheet tables to be completed
is being sent under separate cover to the Director of Finance of each
institution.
Annex A
1993-94 Form 3 Return for Institutions Formerly Funded by the UFC
Notes for Guidance
1. The tables to be completed are identical to those used in the 1992-
93 return apart from income and expenditure relating to Joint Information
Systems Committee (JISC) Grants described in paragraph 2 below. An
updated version of the notes for guidance issued under UFC Circular 18/92
are included on the disk as a Wordperfect 5.1 file '9394note.doc'. If a
printed copy of UFC Circular 18/92 is required, please contact Keith
Harris at the HEFCE (Tel 0272 317395).
JISC Grants
2. All JISC grants should be returned in Table 2a Head 6b (Recurrent).
In the spreadsheet file, the cell for Head 6a (Major Equipment) is a
protected cell with a zero value. Institutions are asked not to enter
data in this cell. The expenditure from JISC grants should be returned in
Table 2b Head 30d (JISC Funded).
Income and Expenditure from EC Sources
3. It should be stressed that where the source of income or expenditure
refers to the EC, this means all Government bodies operating in EC
countries only. If the source of income or expenditure refers to
commercial or industrial companies operating in EC countries, this must
be recorded in the category `Other Overseas'.
Completion of Table 2b Expenditure Analysed by Location and Type
4. In completing Table 2b, Head 35 reads `Total Expenditure Heads 33
and 34'. It should be stressed that the cells in this row are not formula
summations and the data needs to be entered manually. In the past some
institutions have omitted entering in this row.
Reformatting the Spreadsheet
5. Please do not reformat the spreadsheets by inserting or deleting
rows or columns. This causes problems when the data are analysed.
Returns
6. The 1993-94 return will be the final Form 3 return before being
superseded by the FSR. Owing to the closure of the Universities
Statistical Record (USR) in the spring of 1995, it is important that Form
3 returns are completed and sent by 30 November 1994. This will ensure
that validation checks can be carried out, outturns produced and
management statistics published within the tight timescale. Institutions
should not wait until an audit certificate is received before sending in
their Form 3 returns. The returns should be sent as soon as they are
completed to allow USR to process the validation checks quickly.
Amendments to Form 3 resulting from the audit can be incorporated at a
later date.
7. In the past the UFC requested six copies of the audited accounts.
Institutions now need only supply three copies of the audited accounts.
8. The items listed in a. to g. below should be returned by 30 November
1994 to:
Keith Harris
Analytical Services Division
HEFCE
Northavon House
Coldharbour Lane
Bristol BS16 1QD.
a. The computer disk containing the completed tables.
b. Two hard copies of each table.
c. Three sets of audited accounts (done by 31 December 1994).
d. The analysis of Other General Income - Other (Table 2a Sub-head 8i)
and analysis of Miscellaneous Expenditure - Other Expenditure Table 2b
Sub-head 31c).
e. An audit certificate (when completed).
f. A note to state whether equipment expenditure by academic cost
centre should be collected as part of the FSR or should be collected as a
separate survey by the HEFCE.
g. Pro-forma sheet in Annex B completed.
9. In addition, one copy of the completed disk and one hard copy of
each table and an audit certificate (when completed) should be submitted
by 30 November 1994 to:
Universities Statistical Record
PO Box 130
Cheltenham
Glos
GL50 3SE.
Annex B
Form 3 Check List - Former UFC-funded Institutions
Institution:
The following should be returned to the HEFCE by 30 November 1994:
The computer disk containing the completed tables.
Two hard copies of each table.
Three sets of audited accounts (done by 31 December 1994).
The analysis of Other General Income - Other (Table 2a Sub-head 8i)
and analysis of Miscellaneous Expenditure - Other Expenditure (Table
2b Sub-head 31c).
An audit certificate (when completed).
A letter to state whether equipment expenditure by academic cost
centre should be included as part of the FSR or should be collected
as a separate annual survey by the HEFCE.
The following should be returned to the USR by 30 November 1994:
The computer disk containing the completed tables.
One hard copy of each table.
An audit certificate (when completed).
Annex C
1993-94 Finance Record for Institutions Formerly Funded by the PCFC
Tables
1. Table 1 (file 'finrec1.wk1' on disk) is identical to that used in
the 1992-93 return. Table 2 (file 'finrec2.wk1' on disk) contains one
extra line relating to costs of franchised out students (see paragraph 5
below for guidance). Table 3 (file 'finrec3.wk1' on disk) is the Balance
Sheet table and Table 4 (file 'finrec4.wk1' on disk) is the equipment
expenditure by academic cost centre table.
Notes of Guidance
2. The notes for guidance issued under PCFC 92/A/13 in July 1992 remain
valid for 1993-94 with the exception of the amendments relating to
Premises Expenditure (see paragraph 3 below) and the HEFCE Research
allocation (see paragraph 4 below).
Premises Expenditure
3. The changes to the notes for guidance (PCFC 92/A/13) refer to page 8
head 26:
In the printed copy 26e) and 26f) read as follows:-
e) rents may include rents reimbursed by the PCFC, unless these are
disclosed under PCFC reimbursement of debt charges;
f) include materials, contract work, contributions to repairs and
renewals funds, and recharges by external agencies incurred in the upkeep
of buildings, sites, and grounds;
This should be changed to read as follows:
e) routine maintenance non-staff costs including materials, contract
work, contributions to repairs and renewals funds, and recharges by
external agencies incurred in the upkeep of buildings, sites, and
grounds;
f) rents may include rents reimbursed by the PCFC, unless these are
disclosed under PCFC reimbursement of debt charges;
HEFCE Research Allocation
4. In the previous Finance Record returns, the PCFC grant for research
was recorded under Head 5d (Research Grants and Contracts - UK Central
Government Bodies) for income and under Head 27e for expenditure.
Institutions should now return this income under Head 1a (Recurrent Grant
from HEFCE - Main Allocation). The corresponding expenditure should be
returned under Head 21 (Academic Departments). This head should also
include any expenditure for research incurred from institutions' general
funds. Head 5 (income) and Head 27 (expenditure) should only relate to
research grants and contracts from sources of funding other than from the
HEFCE and the institution's general funds.
Franchised Out Students
5. Franchised out students are defined as those students who are
registered at the institution, for which funding from the funding council
and/or the tuition fee is received, and are taught at another institution
as part of a franchising arrangement. The HEFCE Annual Record from
Institutions of Staff and Students (HARISS) does not request details of
student load of students who are franchised out to other institutions.
The audited accounts and the Finance Record includes the expenditure on
such students. The inclusion of these costs can lead to distorted
statistical indicators in comparing the HARISS return with the Finance
Record. Therefore, to overcome this anomaly, an extra line has been
included in Table 2 for institutions to return the costs incurred on
franchised out students by academic cost centre. This is a stand alone
line and does not feed into any formula within the spreadsheet. The
expenditure will already have been returned under another Head of Tables
1 and 2.
Balance Sheet
6. Table 3 is an additional table of the Balance Sheet laid out in the
same format as in the financial forecasts returns. Institutions are asked
to complete this table for the end of the two financial years 1992-93 and
1993-94.
Equipment Expenditure
7. Paragraph 4 of this circular explained the need for this
information. Table 4 is a table of equipment expenditure by the 19
academic cost centres. The equipment expenditure should be that actually
spent in the accounting period 1993-94 and should not relate to the
amount depreciated and entered in the income and expenditure account. The
equipment expenditure incurred from all sources of funding should be
recorded for academic cost centres only. Equipment expenditure on
administration, support services and residences and catering should be
excluded. Furniture and expenditure on equipment maintenance contracts
should also be excluded from the table.
Recording of Data
8. All finance data must be entered in 000s. Three places of decimals
may be used to record data in s.
Returns
9. The computer disk containing the completed tables, one hard copy of
each table, and a letter to state whether equipment expenditure by
academic cost centre should be included as part of the FSR or should be
collected as a separate survey by the HEFCE, should be submitted by
16 January 1995 to:
Keith Harris
Analytical Services Division
HEFCE
Northavon House
Coldharbour Lane
Bristol BS16 1QD.
Annex D
Finance Record Check List - Former PCFC-Funded Institutions
The following should be returned to the HEFCE by 16 January 1995:
The computer disk containing the completed tables.
One hard copy of each table.
A letter to state whether equipment
expenditure by academic cost centre should
be included as part of the FSR or should be collected as a separate
survey by the HEFCE.