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June 2003/24
Core funding/operations
Framework for accountability

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HEFCE grant adjustments 2003-04

We have an agreement with each institution we fund, which specifies targets for student numbers that we expect it to meet. This document explains our actions if institutions do not meet their 2003-04 targets. The measures are designed to maintain broadly comparable resource levels per student, ensure that funds allocated for expansion deliver additional places, and ensure that quotas for medical and dental students are met.



To: Heads of HEFCE-funded higher education institutions
Heads of HEFCE-funded further education colleges
Heads of universities in Northern Ireland
Of interest to those responsible for: Finance, Student data, Planning
Reference: 2003/24
Publication date: June 2003
Enquiries to: HEFCE higher education advisers




Executive summary (read on-line)



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Executive summary

Purpose

1.    We have a funding agreement with each institution that we fund, which specifies the targets relating to student numbers that we expect it to meet. This document explains what action we will take if institutions do not meet their targets for 2003-04.

Key points

2.    There are three constraints on recruitment within the funding agreements, as they will apply for 2003-04, although not all apply to every institution. They are:

  1. The contract range. Under our funding method for teaching, we calculate a standard level of resource for each institution, and an assumed resource (actual HEFCE teaching grant plus an estimate of income from fees). The percentage difference between assumed and standard resource for academic year 2003-04 must be within a given range - known as the contract range.
  2. Funding conditional upon delivery of growth. This applies to institutions that are expected to increase student numbers in 2003-04, usually as a result of a successful bid for additional funded places. Funding for those places is contingent upon institutions actually recruiting additional students to fill the places.
  3. The contract full-time equivalent (CFTE) number for students on undergraduate medical and dental courses to which a quota applies, setting minimum numbers.


3.    These measures are designed:

  1. To maintain broadly comparable resource levels per student so that the quality of the student experience is not put at risk.
  2. To ensure that funds allocated for expansion do indeed deliver additional places.
  3. To ensure that the intended number of medical and dental students required to meet national needs is delivered in return for the exceptionally high level of funding provided for such students.


4.    To achieve these objectives we will withhold grant from an institution which:

  1. Is found to have a level of assumed resource above its contract range.
  2. Does not deliver the growth expected in 2003-04 usually arising from a bid for additional funded places.
  3. Under-recruits against its CFTEs for medicine and dentistry.


5.    Where an institution is found to be below its contract range, we will want to discuss the reasons with the institution, and to receive an action plan setting out how the institution will ensure it comes within the range in 2004-05. We expect that institutions will then take the necessary action to bring numbers into line with their targets.

6.    In relation to paragraphs 4 and 5, before taking any action, we will give institutions an opportunity to tell us about any material changes in definitions or mitigating factors.

7.    If an institution does not recruit any students in 2003-04 then all funding for teaching allocated for 2003-04 will be held back.

Action required

8.    No response is required.