Transparency Review: Outcomes and Implications

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Transparency Review Outcomes and Implications
Professor David Westbury Vice Principal,
University of Birmingham. Chair, Joint Costing
and Pricing Steering Group.
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Joint Costing Pricing Steering Group

• HEFCE
• SHEFC
• HEFCW
• DENI

• U Uk
• SCOP
• U Scotland
• HHEW

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Role of JCPSG

• To advise universities and colleges on the
  development of good practice in Costing and
  Pricing.
• To encourage the integration of Financial and
  Academic decision making.

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JCPSG Web-site
http//www.jcpsg.ac.uk
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Transparency ReviewObjectives of Review

• to ensure transparency of costs of publicly
  funded research
• to ensure coherence of the dual support funding
  streams, mutually reinforcing
• to ensure that public funds are being spent cost
  effectively
• to improve clarity over respective
  responsibilities of FC RCs

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The Transparency ReviewUnderstanding the Problem

• In the past, focused on allocation of income to
  activities, not the distribution of costs.
• Not able to answer the value for money
  question, particularly for research.
• Can we manage ourselves effectively?
• Confidence of stakeholders?

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Transparency Review Reporting in July 2001
Hefce 95 of institutions Shefc
100 of institutions HefcW 92 of
institutions NI 100 of institutions
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Results by ActivityAggregate of 9 Institutions
PF T NPF T PF R NPF R O Income 457 115
391 157 323 Costs 478 72 521
211 238 (Deficit/surplus (21) 43 (130)
(56) 85 (Deficit)/surplus (5) 37 (33)
(36) 26 As of income 1998-99 informal
data
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Qualitative Messages

• PF and NPF research in deficit, i.e. full costs
  exceed income that can be attributed to them
• PF teaching is in deficit, though this is not
  large
• No evidence that public funds being used to
  subsidise non publicly funded activities
• Other activities making contribution to funding
  publicly funded activities

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Core Management Processes
Institutional Plan Targets Finance etc.
Academic Capital Plans
Costing Pricing
Procurement
Marketing
Administration
Sales
Facilities Management
Management Information
Monitoring
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Where are we now?
Transparency Review
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