New financial memorandum published

12 July 2010

Following a period of consultation, HEFCE has set out a revised funding agreement with the institutions it funds. This will come into effect on 1 August 2010.

This new agreement details a clear relationship between HEFCE and the institutions it funds, based on principles of mutual trust and transparency.

It takes full account of key points of dialogue and discussion raised through the consultation, including accountability for corporate leadership, quality and standards, governance and financial management.

The resulting document:

clarifies the formal relationship between HEFCE, governing bodies and heads of institutions
places the emphasis on identifying and preventing failures of internal control rather than solving them once they have occurred
clarifies corrective measures in the rare event that things go wrong.