May 2007/11
Core funding/operations
Framework for accountability
This report is for information
Accountability for higher education institutions
New arrangements from 2008
This Framework is updated annually. The most recent guidance on the annual accountability returns process can be found at HEFCE 2009/35.
This document explains how we will promote better regulation, and hold higher education institutions to account for the funds we distribute to them, through a new accountability process linked to our assessment of institutional risk. The new approach will come into effect from 1 August 2008.
| To: | Heads of HEFCE-funded higher education institutions Heads of universities in Northern Ireland |
|---|---|
| Of interest to those responsible for: | Audit, Finance, Management |
| Reference: | 2007/11 |
| Publication date: | May 2007 |
| Enquiries to: | Paul Greaves tel 0117 931 7378 e-mail p.greaves@hefce.ac.uk |
Executive summary (read online)
Executive summary
Purpose
1. This document explains how we will promote better regulation, and hold higher education institutions (HEIs) to account for the funds we distribute to them, through a new accountability process linked to our assessment of institutional risk. The new approach will come into effect from 1 August 2008.
Key points
2. Our initial proposals for changes to the accountability framework were set out in a consultation document (HEFCE 2005/31). The accountability process under consideration became known as the 'single conversation'. There was strong support for the proposals (see HEFCE 2006/07) and in 2006 we piloted the proposed changes in 10 institutions in order to test the practical implications.
3. As a result of the lessons learned from the pilots, and from other feedback in the same period, we are now able to set out the format of the accountability framework between HEFCE and HEIs which will operate from 1 August 2008. The key features are as follows:
- HEFCE's institutional assurance and risk framework will be driven primarily by three elements:
- the annual submission of accountability information from institutions in December of each year
- the five yearly assurance review undertaken by HEFCE officers that will normally consist of a one-day visit to each HEI
- a programme of data audit.
- These elements will inform HEFCE's assurance reporting to Parliament and the National Audit Office (NAO).
- The information will also largely determine our risk assessments of each HEI. These risk assessments will be shared with other public funders to avoid duplication and to help minimise the accountability burden on institutions.
- We will continue to work with other public funders toward having a common accountability framework for HEIs.
- We will consult with the sector on a new Financial Memorandum and Accountability and Audit Code, to be adopted by 1 August 2008.
4. We consider that another step has been taken toward an optimal regulatory regime that balances public accountability against regulatory burden. We also hope that this is not the end of the road, and that as risk assessment techniques and institutional accountability improve, we can further streamline our approach and free up resources and energy for institutions to pursue their goals.
Action required
5. No action is required in response to this document.