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7 February 2005 HEFCE logo
To  Heads of HEFCE-funded higher education institutions
Direct Line 0117 931 7300
Direct Fax 0117 931 7203

Circular letter number 03/2005

For further information contact Ian Lewis, tel 0117 931 7336, e-mail i.lewis@hefce.ac.uk

Dear Vice-Chancellor or Principal

Project Capital and Science Research Investment Fund 2004-06: payment profiles

1.    On 20 January 2005 the HEFCE Board approved proposals for capital for learning and teaching and research for 2006-08. These have been announced in HEFCE 2005/08. This letter outlines how we will change the way we pay grants for Project Capital and Science Research Investment Fund (SRIF) funding.

2.   Within the approved proposals for 2006-08, the HEFCE Board agreed that it will no longer hold back 10 per cent of grant pending receipt of a project completion statement, because this has an unnecessary adverse impact on higher education institutions' (HEIs') cashflow. The HEFCE Board also agreed that this will apply to the 2004-06 rounds of Project Capital and SRIF, where 10 per cent of funding will no longer be held back pending receipt of project completion statements or audit certificates.

3.   We plan to implement this in the following way:

  1. All new or revised payment profiles for Project Capital round 3 and SRIF round 2 received after 1 March 2005 will be paid at 100 per cent of the grant.

  2. In March 2005 we will calculate adjustments for all amounts paid out from the start of Project Capital round 3 and SRIF round 2 to 28 February 2005. The adjustments will be paid in March 2005. We will provide details of how these sums have been calculated.

  3. In March 2006 we will calculate any remaining adjustments to cover profiles received before 1 March 2005 and which have not subsequently been adjusted. Adjustments would be paid out in March 2006.

4.   These changes are to the timing of payments of grant and do not change the requirement for HEIs to contribute at least 10 per cent to the total costs of programmes or projects. Nor do they change the requirements for project completion statements or audit certificates to be provided under Project Capital round 3 and SRIF round 2.

Yours sincerely

 

Steve Egan
Director (Finance and Corporate Resources)