How the main HEFCE teaching grant is calculated Thom Brain Funding Round Project Manager.
How the main HEFCE teaching grant is calculated Thom Brain Funding Round Project Manager
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Transcript of How the main HEFCE teaching grant is calculated Thom Brain Funding Round Project Manager
How the main HEFCE teaching
grant is calculated
Thom BrainFunding Round Project Manager
Purpose of this session
• Explain how the data submitted in HESES are used in the mainstream teaching funding model
• Explain how the data submitted in HESES are used in the calculations of adjustments to grant
• Opportunity to ask questions
Overview of presentation
• Mainstream teaching grant: overview of
funding method
• Funding agreements, recruitment and grant
adjustments
• Examples
• General questions
Mainstream teaching grant:
overview of funding method
Mainstream teaching grant: principles
• Similar activity is funded at similar rates, with
variations based on explicit and justifiable
reasons
• Institutions wishing to expand should apply to
HEFCE for additional student numbers
Mainstream teaching grant: key terms
• Standard resource: A notional resource level calculated by our funding model
• Assumed resource: Actual HEFCE grant + our assumption of fee income
• Tolerance band: A 5% band around standard resource
• Migration: The process by which we move institutions that were originally outside the tolerance band to within it over an agreed period of time
Students funded by mainstream HEFCE teaching grant
• Home & EC students who are: – not funded by another EC public source– on a course open to any suitably qualified
candidate– at least 0.03 FTE (approx 1 week full-time study)– on a recognised course of HE
Mainstream teaching: price groups
• A 4 (Clinical)• B 1.7 (Science, engineering &
technology)
• C 1.3 (Other high cost subjects
with a studio, laboratory or
fieldwork element)
• D 1 (All other subjects)
Mainstream teaching: student-related factors
Factor Premium
Part-time students 10%
Students on foundation 10% degrees
Long courses (45 weeks +)25%
Mainstream teaching: institutional factors
Factor Premium
Inner London 8%
Outer London 5%
Specialist institutions Variable
Small institutions Variable
Old & historic buildings Variable
Mainstream teaching: calculation of standard resource
• Calculate total weighted FTE for each
institution, using price group and student-
related weights
• Multiply total weighted FTE by base price
(standard unit price for 1 weighted FTE)
• Base price for 2006-07 is £3,721
Mainstream teaching:calculation of base price
• Calculate total mainstream resource
(including fee income) for sector
• Calculate total weighted FTE for sector
• Base price is:
Total resource
Total weighted FTE
• Base price is recalculated each year
Mainstream teaching: assumed resource
• Assumed resource = HEFCE grant + assumed fee income
• Mainstream HEFCE grant rolls forward from one year to the next, with adjustments for, for example: – Inflation– Holdback, ASN funding, transfers– Migration
• Fee assumptions per FTE for 2006-07:– FTS and PT UG £1,200– SWOUT UG £1,200– PGT subject to regulated fees £1,200– Other FT PGT £3,721
– Other PT PGT £4,093
Mainstream teaching: migration
• We express the difference between assumed resource and standard resource as a percentage of standard resource
• We want an institution’s assumed resource to be within ±5% of standard resource
• Migration through additional funding (for those below the band) or increasing student numbers (for those above it)
• Institutions are only eligible for migration funding to the extent that their position outside the tolerance band is due to changes to the funding method, rather than their own recruitment behaviour
Funding agreements,
recruitment and grant
adjustments
Funding agreements
• Three controls:
– The contract range
– Funding conditional upon delivery of growth
– The medical and dental contract FTE (CFTE)
The contract range (1)
• Applies to all institutions
• Expressed as percentage range– for example: -5% to +5%
• Refers to the percentage difference of actual (assumed) resource to standard resource– does not mean the percentages by which
institutions can vary their overall recruitment levels
The contract range (2)
• We use HESES data to:– Recalculate 2006-07 standard resource– Recalculate 2006-07 assumed fee income– Recalculate 2006-07 assumed resource
• We compare recalculated standard and assumed resource
• If new percentage difference is outside contract range, institution may be liable to holdback – For 2006-07, holdback only for those above their contract
range• Institutions also have second chance to recover
2005-06 contract range holdback if its reinstatement keeps the institution in its contract range
The contract range (3)
• Compliance with the contract range is affected by:– Overall recruitment levels– The mix of students between price groups– The mix of students between modes– The mix of students between levels
• A template is available to help institutions assess the effects of different recruitment positions
Funding conditional upon delivery of growth (1)
• Applies to institutions that are expected to increase recruitment in 2006-07 as a result of a successful bid for additional student numbers
• Expressed as FTE targets for total HEFCE-fundable student numbers
• Holdback of ASN funding if targets not met• Institutions get two chances to deliver growth
Funding conditional upon delivery of growth (2)
• Baseline FTEs
• First (lower) target: to recover ASN funding
previously deducted for not delivering sufficient
growth in 2005-06
• Second (higher) target: to avoid holdback of
2006-07 ASN funding
Funding conditional upon delivery of growth (3)
Example for Institution Z
1000
1020
1040
1060
1080
1100
2004-05 2005-06 2006-07 2007-08
FT
Es
1st chance (toavoid holdbackof bid funding)
2nd chance (torecover bidfunding)
Baseline FTEs
Academic year
Funding conditional upon delivery of growth (4)
• Baseline FTEs go up:– To reflect additional funded places delivered the
previous year– For other additional funded places awarded
outside the mainstream bidding exercises (eg for medical intakes or ITT diversification)
– For institutional transfers
• Baseline FTEs go down:– For institutional transfers
Grant adjustments
• Grant adjustment rules published in July
• Provisional grant adjustment reports issued in
December
• Institutions have opportunity to appeal in
January
• Final grant adjustment reports issued in
February