scottish funding council funding of colleges in scotland may 2011
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Scottish Funding CouncilFunding of colleges in Scotland
May 2011
The Scottish Funding Council
The Scottish Funding Council (SFC) is a non-departmental public body responsible to – but operating at arms length from – the Scottish Government. It distributes more than £1.6 billion of public funds annually to 41 colleges and 20 higher education institutions (HEIs)
Ministerial guidance, Corporate Plan and funding decisions
Ministerial guidance (Scottish Government
SFC Corporate Plan
Grant-In-Aid
Consultation with sector
Committees and advisory groups
CouncilGrant allocated to HEIs and colleges via Main Grant Letter
Scottish Government funds to SFC
3-year budgets set by Scottish Government in Spending Review
SFC provides advice to Scottish Government for Spending Review
SFC receives funds in financial years (April to March) and allocates funds on academic years (August to July)
Main teaching and student support grants for colleges
2010-11£m
Main Teaching Grant 402.7
Student Support 83.9
Fee Waiver 57.8
Strategic Funds 28.1
Economic Downturn 8.4
Total 580.8
College Capital 109
SFC allocations to colleges AY 2010-11: £580.8m
Student support 14%
Fee waiver 10%
Economic downturn 2%
Main teaching grant 69%
Strategic funds 5%
Purpose of our teaching funding
Contributing to the direct and indirect cost of providing learning and teaching
Funding academic, administrative, technical and support staff
Funding facilities, accommodation, equipment and materials
Teaching allocation to 42 colleges
WSUMs target 2.32m£m
WSUMs activity funding 482.4Assumed fee income 118.6Widening access (headcount) 11.5Social inclusion (headcount) 7.2Social inclusion (SUMs) 8.1Rural and remoteness 2.8Achievement 4.3Total 634.9
How we allocate college teaching grant Formula used:
Price x volume Colleges undertake to deliver a specified
volume of activity (measured in weighted SUMs)
Additional premiums for: Widening access and social inclusion Rural and remote students Achievement
Additional Premiums – Sector Average
29%
19%21%
6%
8%
17%
Entry cost
Social inclusion entry cost
Social inclusion retention and achievement
Rural and remoteness headcount
Rural and remoteness institution
Achievement
Additional Premiums – Island College
6%
0%0%
6%
79%
9%Entry cost
Social inclusion entry cost
Social inclusion retention and achievement
Rural and remoteness headcount
Rural and remoteness institution
Achievement
Additional Premiums – Urban College
24%
46%
25%
0%0%
5% Entry cost
Social inclusion entry cost
Social inclusion retention and achievement
Rural and remoteness headcount
Rural and remoteness institution
Achievement
Initial fee waiver
£56 million in 2010-11 Colleges use grant to waive fees for:
Full-time non-advanced students Part-time advanced and non-advanced
(means tested basis) Pay up front estimate and final
amount once final statistics available (if resources are available).
Targeted investment in colleges
PACE (£2m/£5m) Economic downturn (£28.1m -
£7.7m/£8.4m) ESOL (£1.7m)
Purpose of our student support funding The FE bursary fund - maintenance
costs for full-time students and their dependants, travel, student and additional support expenses
The FE discretionary fund – emergency and hardship purposes
The FE childcare fund –prioritised to meet the needs of mature students, lone parents and part time students.
How we allocate college student support grants Bursary – based on previous spend,
growth and increases to rates and scales
FE discretionary fund – activity, headcount and deprivation rates
FE childcare fund – activity, part time headcount and deprivation rates
Maximise flexibility by allowing movement between funds and the in-year redistribution process
AY 2011-12 – main changes to college fundingIndicative letter Budget reduction for teaching Re-focus school/college programme Student support budget maintained
Final allocation Additional funding growth Additional student support funds
Main teaching and student support grants for colleges
2011-12£m
Main Teaching Grant and Fee waiver
421
Student Support 95.6Strategic Funds 19.5Economic Downturn 8.4APUC 1.0Total 545.5
Changes to funding allocations
2010-11
2011-12
Change
WSUMs 2.32m 2.23m -3.8%Main Teaching Grant and Fee Waiver
£460.5m
£421m -8.6%
Student Support £83.9m
£95.6m
+13.2%
Strategic Funds £28.1m
£19.5m
-30.1%
0
20
40
60
80
100
120
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
£ m
illio
n
Financial Year (FY)
Capital formula funding and project funding FY 2005-06 to FY 2010-11
Formula Funding
Project Funding
•For FY 2011-12 College and University capital budgets have been combined.
•For FY 2010-11, the combined capital budget was £192.7m, for FY 2011-12, the combined capital budget is £91m.
College governance
Financial Memorandum Role of governing bodies Accountable officer Conditions of Grant
Future Issues
Further pressure on budgets? Changes to funding methodologies