Dear concerned of Hull
I would guess that what will happen is that they will use the new
methodology for the first time in the March 04 Funding Letter to
calculate assumed standard resource for 2004-05 from HESES03 and HESA
2002-03 (HEIFES03 and ILR 2002-03 F04 for us in FEIs). They do this
every year (Table D), but will just use the new method. Your actual
resource will be based on your previous allocation for 03-04, modified
by the various adjustments for inflation and Additional Student Numbers
etc.
If you are outside the plus or minus 5% tolerance band then they will
discuss that with you. Contrary to the scare stories in the THES
yesterday, I wouldn't anticipate immediate reductions or increases in
funding, as you will have up to three years to get back into the
tolerance band and you can always do that by adjusting your student
numbers (or their characteristics esp. price group proportions) in
04-05, to be monitored in HESES04. After that (March 2005), if you are
still outside the tolerance band they will want to discuss it in more
detail with you. I think I'm right in saying that after the 1997
change, some institutions existed outside the tolerance band for several
years without significant change in grant allocations. Since it is all
likely to change again in 2006-07, this may be a storm in a tea-cup.
Your HE advisor should be able to provide more info.
On a more partisan note, the continued existence of nonsense like
'Minority Subjects' and the 'Premium for Old and Historic Buildings'
drives a coach and horses through the notion of funding equality anyway.
But at least I think the majority of changes they propose are moves in
the right direction (but then I would say that, since we would be 20%
underfunded anyway, but believe me, I do genuinely believe they are
better than the status quo).
Of course, if you use the HEFCE method in your internal resource
allocations for your Faculties/Schools/Departments (income-led
resourcing), then you've got a major job of work in the Spring to work
out your new budgets for 04-05!
Good luck to anyone who has to explain this to a Vice Chancellor or
non-planner!! (or even a journalist)
Mike (your friendly agony aunt)
-----Original Message-----
From: Anna Grey [mailto:[log in to unmask]]
Sent: 17 October 2003 11:15
To: [log in to unmask]
Subject: Changes to HEFCE funding implementation
Dear All,
I think I've finally managed to work through the HEFCE funding
changes and the implications of the various changes. (If anyone has any
suggestions for really simple ways to explain the HEFCE funding model to
non-planners, I'd be grateful!). I'm still not quite sure why this is
being done at this time, given the way the block grant contract operates
but that's life.
However, given my assumption that there are likely to be some
significant changes, has anyone worked out how this is going to be
implemented, both by HEFCE and internally within their institution?
Reading the document, the changes will be reported in the March funding
letter, based I assume of the HESES data. But we are about to undertake
a HESES return, based on the old funding methodology and we aren't
returning anything about split Bands etc. Are HEFCE going to do the
reassignment based on the HESA return we've just put in? Incidentally,
has anyone else spotted the odd way that the Foundation Degree premium
is assigned?
My concern is that the changes and implications are going to
come through too late for them to be fed into our resource allocation
methods and particularly fee assumptions. Anyone yet looked at how it
will be dealt with internally? Yes I know it is a block grant that we
can give it out how we like, but strangely some department heads don't
see it that way.
You may not wish to comment publicly over admin planning, so if
you want to comment direct to me, feel free. I'll send a summary if any
of the comments are repeatable!
Thanks
Anna
(concerned of Hull)
------------------------------------------------------------------------
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Anna Grey
Senior Planning Officer
Planning and Quality Office
[log in to unmask]
(01482) 466867
