Executive summary
Purpose
1. This is a consultation on changes to the Financial Memorandum (FM) between HEFCE and higher education institutions. It incorporates a consultation on revisions to the Accountability and Audit Code of Practice (Code). Amended versions are to take effect from 1 August 2010. We are undertaking a parallel consultation about the information requirements for HEIs to enable us to fulfil our role as charities regulator, 'Regulating higher education institutions as charities: consultation on HEFCE's information requirements as principal regulator' (HEFCE 2009/45).
Key points
2. The Financial Memorandum sets out the conditions attached to HEFCE funding, with which institutions must comply. The FM includes the Accountability and Audit Code of Practice, which sets out our audit and accountability requirements. Compliance with the Code is one of the conditions of funding.
3. The FM and Code are being reviewed at this time to incorporate a new framework for borrowing consents that has been developed with the sector over the past year and to make changes that are necessary following developments in the higher education risk environment since the last FM was published.
Financial Memorandum
4. The document that is under consultation constitutes Part 1 of the FM (Appendix A). We are not proposing any changes to Part 2 (the annual schedule of funds and conditions relating to each institution).
5. The FM aims to make more clear the responsibility of institutions and their governing bodies for compliance with the conditions of grant.
6. There are two new proposed mandatory requirements, for institutions to:
- ensure that arrangements for the assurance of academic standards are effective
- comply with published directions on data quality.
Action required
7. Responses to HEFCE are invited by e-mail to fmcodeconsultation@hefce.ac.uk by Friday 5 March 2010, using the electronic version of the form at Appendix B.
