HEFCE's Accountability Framework

We are accountable for the money we administer on the Government's behalf. Such processes are set within a framework for accountability.

The diagram below demonstrates how all the constituent parts of our accountability framework fit together to provide the overall level of assurance to our Audit Committee and Board. Each section is described further below.

Department for Business, Innovation and Skills

Further and Higher Education Act 1992 and subsequent legislation
Legislation and the Department for Business, Innovation and Skills (BIS) create the environment under which we operate.
Framework Document between BIS and HEFCE
There is a Framework Document between ourselves and our sponsor government department. This document replaced the previous Management Statement and Financial Memorandum.
Annual grant letter
We receive a grant letter every year from the Secretary of State for Business, Innovation and Skills, which confirms the amount of funding we will receive and sets out his policy priorities. Our chief executive is the Accounting Officer, which means he is the HEFCE staff member who ultimately takes responsibility for the proper and regular use of public funds and ensuring value for money.

HEFCE

Corporate governance framework

By corporate governance we mean the standards, structures and processes which ensure that our Board (and its committees) deliver its mission.

HEFCE Board: Code of Practice
The HEFCE Board follows a Code of Practice.
The membership and conduct of the Board, and a register of each member's interests are listed on our web-site.
Audit Committee terms of reference
HEFCE's Financial regulations and procedures
The financial regulations are our internal framework for managing our finances.
Scheme of delegation
The scheme of delegation enables the Board to operate at a strategic level while being kept informed of action taken in its name by HEFCE staff. The Board receives reports at each meeting on decisions taken under delegated authority.

HEFCE's assurance framework

At the heart of the accountability framework is our approach to managing risks, and is called our Assurance Framework. The key strategic risks it identifies are included in our strategic plan, along with how those risks are to be managed.

Annual report and accounts (including statement on internal control)
Directors' risk management statements (not publicly available)
Internal & external audit
QALT opinions and Audit Committee opinions
QALT opinions are not publicly available. The Audit Committee opinions can be viewed in its annual report.

Planning framework

The policy and funding framework set by BIS in the annual grant letter provides the start point for HEFCE's strategic and operational planning.

Strategy statement
Our strategy statement details our strategy.
Business plan
The strategy statement drives the content of our business plan that drives activity throughout the Council.
Financial strategy
Use of financial resources to support our objectives, as outlined in the strategic plan, is set out in HEFCE's financial strategy.

HE sector

Accountability framework for HE institutions and related bodies

In parallel with our own operations there is an accountability framework that covers our relationship with the universities, colleges and related bodies that we fund and through which we deliver our objectives. This is detailed in 'Accountability for higher education institutions: New arrangements from 2008' (HEFCE 2007/11).

Financial memoranda with HE institutions/agreements with related bodies
- The financial memorandum between HEFCE and HE institutions sets out the terms and conditions for payment of HEFCE grants. Part 1 is common to all and is published as HEFCE 2010/19. Part 2 of the memorandum (not publicly available) gives conditions specific to each institution, the funds available to the institution, and the educational provision the institution has agreed in return for those funds.
- Agreements with HEFCE's related bodies can be viewed online.
Audit and accountability Code of Practice
Our requirements for accountability and audit arrangements in HE institutions and HEFCE's related bodies are published as HEFCE 2010/19 (Annex B).
Institutional and related bodies risk system
The way our accountability framework operates to assess risk is set out in HEFCE 2007/11.
Quality assurance framework
Our Quality Assurance Framework for learning and teaching in higher education includes institutional audits and publication of information about quality standards.