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April 2003/19
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Returns to be submitted to HEFCE by Friday 25 July 2003




Annual monitoring statements, corporate planning statements and financial forecasts 2003

This document asks higher education institutions to send to us an annual monitoring statement (AMS) and a corporate planning statement for 2002-03, and financial forecasts for the period up to 2006-07. The AMS and corporate planning statement replace the annual operating statement requested in previous years. Templates for the AMS and financial forecasts will be available electronically at the end of May 2003.




To: Heads of HEFCE-funded higher education institutions
Heads of universities in Northern Ireland
Of interest to those responsible for: Planning, Finance, Student data
Reference: 2003/19
Publication date: April 2003
Enquiries to: HEFCE higher education advisers (on monitoring and corporate planning statements)

HEFCE finance advisers (on financial forecasts)






Table of contents and executive summary (read on-line)




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Main text and Annexes, except Annexes A and D.
[ MS Word 345K | Zipped Word 86K | Adobe PDF 105K | Zipped PDF 85K ]

Annex A (Annual monitoring template) and Annex D (Financial forecasts 2003: Tables 1 to 16) will be available to HEIs at the end of May 2003 for completion electronically. In May, HEI heads of finance will be sent a letter providing details on how to access and return them.




Table of contents

Executive summary

Background

Changes for 2003

Corporate planning statement

Annual monitoring statement

Widening participation

Learning and teaching

Business and the community

Rewarding and developing staff in higher education

Race equality monitoring

Capital initiatives

Action in the event of insufficient progress

Audit

Financial forecasts

Queries

Returns to HEFCE

Returns to the Teacher Training Agency

Annexes

Annex A    Annual monitoring template
Not included in web version of document

Annex B    Monitoring criteria for HEROBC and HEIF institutional awards

Annex C    Financial forecasts 2003: Statement of financial strategy and supporting notes to the forecast tables

Annex D    Financial forecasts 2003: Tables 1 to 16
Not included in web version of document

Annex E    Financial forecasts 2003: guidance notes

Annex F    Financial forecasts 2003: funding guidance

Annex G    Issues arising from HEFCE Audit Service visits to review HEIs annual operating statements

List of abbreviations




Executive summary

Purpose

1.    This document asks higher education institutions to send to us an annual monitoring statement and a corporate planning statement for the 2002-03 academic year and financial forecasts for the period up to 2006-07.

2.    The report also explains that the annual monitoring statement (AMS) and the corporate planning statement (CPS) replace the annual operating statement (AOS). In previous years we asked that the AOS report on the use of strategic special funding, and on institutions' corporate planning more widely. We now request that this information be submitted in two separate documents: an electronic monitoring statement, and an annual planning document which may have already been prepared for the institution's own purposes.

3.    These changes are intended to streamline the monitoring process and minimise the burden on HEIs while maintaining the quality of information.

Key points

4.    The information requested will:

  1. Summarise the institution's mission, key objectives and targets, and performance against objectives in strategic areas.
  2. State the institution's priorities for the next operating year.
  3. State the institution's key assumptions about future trends.
  4. Provide a financial forecast for the period 2002-03 to 2006-07 in the context of the institution's financial strategy.
  5. State the student number forecasts which underpin the institution's plans and financial forecasts.


5.    We will use this information:

  1. To identify trends across the sector, and so advise the Secretary of State for Education and Skills on the needs and development of the higher education sector.
  2. To monitor the financial prospects of higher education institutions, both individually and collectively.
  3. To monitor the use of funds and outcomes relating to our strategic special funding.
  4. As a basis for discussion with institutions about their progress in key areas, their priorities for strategic development, their financial position, and the support which HEFCE may be able to give.


6.    This report also explains the action we will take in cases where institutions have made insufficient progress towards meeting the objectives that they set for themselves, under our strategic special funding initiatives.

7.    Templates for the AMS and financial forecasts will be available electronically at the end of May 2003. We will write to heads of finance during May, providing full details on how to access templates and how to return information to us.

Action required

8.    All institutions should make returns to Cheryl Stone by Friday 25 July 2003. For further details see paragraphs 83 and 84.

9.    Institutions for which the Teacher Training Agency has lead accounting officer responsibility should also make returns to the Teacher Training Agency by Friday 25 July 2003 (see paragraphs 85 and 86).