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
£ million	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
£ million	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)