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Costing and pricing

Support to universities and colleges on full economic costs from July 2005

The Joint Costing and Pricing Steering Group (JCPSG) completed the majority of its work at the end of July 2005.

We are now at the point where full economic costing and the implementation of the Transparent Approach to Costing (TRAC) need to be led by the sector and its representative bodies.

A statement on support for universities and colleges after July 2005 is available below. Additional information on the British Universities Finance Directors Group (BUFDG) Costing and Pricing Group is also provided. Further information about the work of the BUFDG Costing and Pricing Group (on the JCPSG web-site).

Support for universities and colleges on full economic costs from July 2005
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BUFDG Costing and Pricing Group: terms of reference and membership
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The BUFDG Costing and Pricing Group has completed its review of the TRAC Guidance. Changes to the consolidated guidance were approved by the group on 16 June 2006, and by the UK Funding Councils. Details of the revisions are on the JCPSG web-site. Information about the review process and other issues considered by the group can be found in the BUFDG TRAC guidance review on the consolidated TRAC guidance page of the JCPSG web-site.

Development of TRAC for teaching

In October 2005, we published a consultation on the review of our method for funding teaching. The proposals included the development of a national costing framework for teaching based on TRAC principles. The outcomes and next steps were published in March 2006. Further information about the HEFCE's work to develop TRAC for costing teaching.

In October 2005, we published a consultation on the review of our method for funding teaching. The proposals included the development of a national costing framework for teaching based on TRAC principles. The outcomes and next steps were published in March 2006.

Further information about the work being undertaken to develop the national costing framework.

Joint Costing and Pricing Steering Group (1997-2005)

The Joint Costing and Pricing Steering Group (JCPSG) was established by the three funding councils and the representative bodies to help universities and colleges improve their strategic and operational decision making by developing and implementing good practice in costing and pricing activities.

The JCPSG developed and helped institutions to implement the Transparent Approach to Costing (TRAC).

TRAC enables institutions to calculate the full economic costs of their activities. The following statement by HEFCE explains how it will take account of full economic costs in the funding it distributes for higher education.

Statement by HEFCE on full economic costs (July 2005)
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Independent reviews of the effectiveness of the JCPSG were commissioned by the group's sponsors.

For more information about the JCPSG visit the JCPSG web-site.

The JCPSG's strategy and the funding councils' initiative built on previous collaborative work by the funding councils which culminated in the publication of 'Management Information for Decision Making: Costing Guidelines for Higher Education Institutions'.

Transparency and accountability review

Review of financial reporting and activity costing

In July 2002 the Government published a paper that, among other things, required the UK higher education funding councils to review how to improve higher education institutions' financial reporting and activity costing. This process was managed by the Financial Reporting and Activity Costing Group (FRACG).

The report of the FRACG is available in circular letter 26/2003.

The group appointed consultants (KPMG) to undertake work on the review. The following report was submitted to the funding councils by KPMG to inform the review.

KPMG report: Review of costing and financial reporting in the HE Sector
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Other transparency and accountability publications

Last updated 29 July 2008