How HESES affects your HEFCE teaching grant

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• How HESES affects your HEFCE teaching grant
• Thom Brain
• Funding Round Project Manager

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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 the
  HBK sheet in HESES workbooks
• Opportunity to ask questions

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Overview of presentation

• Mainstream teaching grant overview of funding
  method
• Funding agreements, recruitment and grant
  adjustments
• Examples using HESES workbooks
• General questions

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• Mainstream teaching grant overview of funding
  method

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Mainstream teaching grant principles

• Similar activity is funded at similar rates, with
  variations based on explicit and justifiable
  reasons
• Institutions wishing to expand should bid for
  additional student numbers

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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

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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

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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)

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Mainstream teaching student-related factors

• Factor Premium
• Part-time students 10
• Students on foundation 10 degrees
• Long courses (45 weeks ) 25

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Mainstream teaching institutional factors

• Factor Premium
• Inner London 8
• Outer London 5
• Specialist institutions Variable
• Small institutions Variable
• Old historic buildings Variable

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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 2005-06 is 3,608

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Mainstream teachingcalculation 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

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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 2005-06
• FTS and PT UG 1,175
• SWOUT UG 1,140
• PGT subject to regulated fees 1,175
• Other FT PGT 3,608
• Other PT PGT 3,968

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Mainstream teaching migration

• We express the difference between assumed
  resource and standard resource as a percentage of
  standard resource
• We want an institutions 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 only eligible for migration funding
  to the extent that their position outside the
  tolerance band is due to changes to the funding
  method, not because of their own recruitment
  behaviour

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• Funding agreements, recruitment and grant
  adjustments

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Funding agreements

• Three controls
• The contract range
• Funding conditional upon delivery of growth
• The medical and dental contract FTE (CFTE)

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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

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The contract range (2)

• We use HESES data to
• Recalculate 2005-06 standard resource
• Recalculate 2005-06 assumed fee income
• Recalculate 2005-06 assumed resource
• We compare recalculated standard and assumed
  resource
• If new percentage difference is outside contract
  range, institution may be liable to holdback
• For 2005-06, holdback only for those above their
  contract range
• Institutions also have second chance to recover
  2004-05 contract range holdback if its
  reinstatement keeps the institution in its
  contract range

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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

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Funding conditional upon delivery of growth (1)

• Applies to institutions that are expected to
  increase recruitment in 2005-06 as a result of a
  successful bid for additional student numbers
• Expressed as FTE targets for total HEFCE-fundable
  student numbers
• Holdback of bid funding if targets not met
• Institutions get two chances to deliver growth

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Funding conditional upon delivery of growth (2)

• Baseline FTEs
• First (lower) target to recover bid funding
  previously deducted for not delivering sufficient
  growth in 2004-05
• Second (higher) target to avoid holdback of
  2005-06 bid funding

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Funding conditional upon delivery of growth (3)
Academic year
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Funding conditional upon delivery of growth (4)

• Baseline FTEs go up
• To reflect achievement the previous year of
  additional funded places awarded through the
  bidding exercises
• 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

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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