April 2005/20
Core funding/operations
Request for information

Returns should be made by Friday 29 July 2005

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Annual monitoring and corporate planning statements, and financial forecasts 2005

This document asks higher education institutions to send to us an annual monitoring statement (AMS) and a corporate planning statement for 2004-05, and financial forecasts for the period up to 2008-09. Templates for the AMS and financial forecasts will be available for completion electronically at the end of May 2005.

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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:	2005/20
Publication date:	April 2005
Enquiries to:	HEFCE higher education advisers (on annual monitoring and corporate planning statements) HEFCE finance advisers (on financial forecasts)

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

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Contents

• Executive summary
• Background to AMS and CPS
• Revised approach to the AMS process for 2005
• Annual monitoring statement
• Completing the AMS template
  • Learning and teaching - institutional funding
  • Business and the community
  • Rewarding and developing staff in higher education
  • Research Capability Fund
  • Race equality monitoring
  • Action in the event of insufficient progress
  • Audit
• Corporate planning statement
• Financial forecasts
• Returns
• Annexes
  • Annex A Annual monitoring statement 2005
  • Annex B Financial forecasts 2005: Supporting commentary to the forecast tables
  • Annex C Financial forecasts 2005: Tables 1 to 6
  • Annex D Financial forecasts 2005: guidance notes
  • Annex E Financial forecasts 2005: funding guidance
  • Annex F Research Capability Fund
• List of abbreviations

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Executive summary

Purpose

1.    This document asks higher education institutions to send to us an annual monitoring statement (AMS) and a corporate planning statement (CPS) for the 2004-05 academic year, and financial forecasts for the period up to 2008-09.

Key points

2.    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 2004-05 to 2008-09 in the context of the institution's financial strategy.
5. State the student number forecasts which underpin the plans and financial forecasts.

3.    We will use this information:

1. To identify trends across the sector, and to 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 (HEIs), both individually and collectively.
3. To monitor the use of funds and outcomes relating to our special initiative 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.

4.    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.

5.    In line with HEFCE's policy for reducing institutions' accountability burden, the amount of information requested this year is significantly less than in previous years. For the AMS, institutions are asked to provide assurance of the delivery of 2004-05 activities, targets and spend for each HEFCE special funding initiative. Institutions are required to provide more detail only where there have been problems with delivery or where plans have slipped. For the financial forecasts there has been a significant reduction in the information requested from institutions.

6.    Templates for the annual monitoring statement and financial forecasts will be available for completion electronically at the end of May 2005. We will write to heads of finance and the AMS contact during May, providing full details on how to access templates and how to return information to us.

Action required

7.    All institutions should make AMS, CPS and financial forecast returns to Linda Markham by Friday 29 July 2005. For further details see paragraphs 75 and 76.

8.    HEFCE will share the information it receives from institutions for which the Teacher Training Agency (TTA) has lead accounting officer responsibility. These institutions do not need to provide separate returns to the TTA.