| 9 June 2008 |  |
| To | Heads of HEFCE-funded higher education institutions Heads of universities in Northern Ireland |
| Telephone | 0117 931 7317 |
| Facsimile | 0117 931 7203 |
Circular letter number 14/2008
For further information contact Andrew Beazer, tel 0117 931 7223, e-mail a.beazer@hefce.ac.uk
Dear Vice-Chancellor or Principal
Transparency Review data reported for 2006-07
1. I am writing to report on data received for 2006-07 from universities and colleges under Transparency Review reporting. No response is required to this letter.
2. The 2006-07 Transparency Review data indicate an overall deficit of £1,187 million for HEFCE-funded higher education institutions (HEIs). This includes the return for financing and investment and the infrastructure adjustment, which are added to reported expenditure in institutions' audited financial statements. These adjustments provide an estimate of the full economic costs of institutions' activities. In the 2006-07 academic year, the value of these adjustments across the sector was 7.8 per cent of reported expenditure, or £1,350 million, reflecting the extent to which full economic costs exceeded actual recurrent expenditure.
3. Table 1 shows the 2006-07 data across Teaching, Research and Other activities for HEFCE-funded HEIs. Table 2 shows the same information for the UK as a whole.
Table 1 Transparency Review data 2006-07 for HEFCE-funded HEIs
| £ million | Publicly Funded Teaching | Publicly Funded Teaching | Publicly Funded Teaching | Non-publicly Funded | Publicly Funded Research | Non-publicly Funded Research | Other | Total |
|---|---|---|---|---|---|---|---|---|
| Regulated | Non-regulated | Total | ||||||
| Income | 5,509 | 2,132 | 7,641 | 1,674 | 3,620 | 1,198 | 3,400 | 17,533 |
| Costs | 5,813 | 2,044 | 7,857 | 1,287 | 4,665 | 1,807 | 3,104 | 18,720 |
| Surplus/(deficit) | (304) | 88 | (216) | 387 | (1,045) | (609) | 296 | (1,187) |
Table 2 Transparency Review data 2006-07 for UK HEIs
| £ million | Publicly Funded Teaching | Publicly Funded Teaching | Publicly Funded Teaching | Non-publicly Funded | Publicly Funded Research | Non-publicly Funded Research | Other | Total |
|---|---|---|---|---|---|---|---|---|
| Regulated | Non-regulated | Total | ||||||
| Income | 6,821 | 2,446 | 9,267 | 1,949 | 4,499 | 1,447 | 3,985 | 21,147 |
| Costs | 7,162 | 2,359 | 9,521 | 1,472 | 5,728 | 2,184 | 3,635 | 22,540 |
| Surplus/(deficit) | (341) | 87 | (254) | 477 | (1,229) | (737) | 350 | (1,393) |
4. Institutions should note that 2007-08 data are to be submitted by Friday 30 January 2009.
Yours sincerely
Professor David Eastwood
Chief Executive