How HESES affects your HEFCE teaching grant

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• How HESES affects your HEFCE teaching grant
• Caroline Charlton

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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

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• Mainstream teaching grantoverview 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 apply to
  HEFCE for additional student numbers (ASNs)

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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 institutions that
  were originally outside the tolerance band move
  to within it over an agreed period of time

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Students funded by mainstream HEFCE teaching grant

• Home and EC students who are
• not funded by another EC public source
• not funded through a separate non-mainstream
  teaching allocation (model 2 LLNs employer
  co-funded ASNs)
• not aiming for an equivalent or lower
  qualification (ELQ) and are not exempt from the
  policy
• on a course open to any suitably qualified
  candidate
• at least 0.03 FTE (approx one 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 institutional factors

• London weighting (8 inner, 5 outer)
• Flexible study weighting (variable)
• These weightings are applied to price
  group-weighted FTEs

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Mainstream teaching calculation of standard
resource

• Calculate total weighted FTE for each
  institution, using price group weights, London
  weighting and flexible study weighting
• Multiply total weighted FTE by base price
  (standard unit price for 1 weighted FTE)
• Base price for 2009-10 is 3,947

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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 2009-10
• FT regulated and PT non-regulated UG 1,285
• SWOUT and PT regulated UG 1,280
• PGT subject to regulated fees 1,285 (1,280
  for PT)
• Other PGT 3,947

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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 normally 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

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• Funding agreements, recruitment and grant
  adjustments

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Funding agreements

• Three controls affecting mainstream teaching
  grant
• the contract range
• funding conditional upon delivery of growth
• the medical and dental contract FTE (CFTE)
• Separate monitoring of student numbers funded
  outside the mainstream

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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 2009-10 standard resource
• recalculate 2009-10 assumed fee income
• recalculate 2009-10 assumed resource
• We compare recalculated standard and assumed
  resource
• If new percentage difference is above the
  contract range, institution may be liable to
  holdback
• Institutions also have a chance to recover any
  2008-09 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
  (affecting standard resource calculations)
• the mix of students between fee categories,
  mainly relating to level and mode of study
  (affecting assumed resource calculations)
• Electronic grant tables contain modelling
  spreadsheets 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 2009-10 as a result of an
  award of additional student numbers (or
  mainstreaming of previously non-mainstream ASNs)
• 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

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Funding conditional upon delivery of growth (2)

• Baseline FTEs
• First (lower) target to recover ASN funding
  deducted from the 2009-10 baseline for not
  delivering sufficient growth in 2008-09
• Second (higher) target to avoid holdback of
  2009-10 ASN funding

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Example University X had 1,000 FTE in 2008-09.
Awarded ASNs 100 FTE for 2009-10 and 100 for
2010-11
2009-10 baseline 1,000 FTE
target 1,100 FTE
Holdback ASN funding for 100 FTE
2010-11 baseline 1,000 FTE lower target 1,100
FTE higher target 1,200 FTE
900 FTE delivered
1,050 FTE delivered
2010-11 baseline 1,050 FTE lower target 1,100
FTE higher target 1,200 FTE
Holdback ASN funding for 50 FTE
No ASN holdback
1,150 FTE delivered
2010-11 baseline 1,100 FTE higher target 1,200
FTE
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Example continued baseline 1,050 FTE lower
target 1,100 FTE higher target 1,200 FTE
1,000 FTE delivered
Holdback of all 2010-11 ASN funding. Do not
recover ASN funding deducted from baseline.
1,080 FTE delivered
Holdback of all 2010-11 ASN funding. Recover
2009-10 funding deducted from baseline for 30
FTE.
1,150 FTE delivered
Holdback of 2010-11 ASN funding for 50 FTE.
Recover all ASN funding deducted from baseline.
1,200 FTE delivered
Recover all ASN funding deducted from baseline.
Retain 2010-11 funding.
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Funding conditional upon delivery of growth (3)

• Baseline FTEs go up
• to reflect additional funded places delivered the
  previous year
• for other additional funded places awarded
  outside the mainstream bidding exercises (e.g.
  for medical intakes or initial teacher training
  diversification)
• for institutional transfers
• Baseline FTEs go down
• for institutional transfers

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Student numbers funded outside mainstream
teaching grant in 2009-10

• Monitored through HESES
• Model 2 Lifelong Learning Networks (LLNs)
• Monitored through separate end-of-year reports
• co-funded employer engagement

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Model 2 Lifelong Learning Networks

• We will calculate the funding associated with the
  model 2 LLN FTEs reported in HESES, at standard
  levels
• We count this, in the following order, against
  the funding available
• 1. Funding for LLN FTEs delivered in 2008-09
• 2. Funding for LLN FTEs awarded, but not
  delivered, in 2008-09
• 3. Funding for new LLN FTEs awarded for
• 2009-10
• We adjust funding accordingly

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Model 2 LLNs Example

• Poppleton LLN delivers 800,000 worth of activity
  in HESES09

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Grant adjustments

• Grant adjustment rules published in August
  (HEFCE 2009/24)
• Provisional grant adjustment reports issued in
  December
• Institutions have opportunity to appeal in
  January
• Final grant adjustment reports issued in February

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Elements of teaching grant not subject to in-year
holdback

• Targeted allocations, including for widening
  participation and teaching enhancement and
  student success
• However, these allocations may be recalculated if
  we find (through audit or data reconciliation)
  that the data on which they were originally based
  were incorrect