Scottish Funding Council
Funding of colleges in Scotland
May 2011
The Scottish Funding Council
The Scottish Funding Council (SFC) is a nondepartmental 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
Grant-In-Aid
Ministerial
guidance
(Scottish
Government
Consultation
with sector
SFC Corporate
Plan
Committees
and advisory
groups
Council
Grant 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
College Capital
580.8
109
SFC allocations to colleges AY 2010-11: £580.8m
Economic
downturn 2%
Strategic funds 5%
Fee waiver 10%
Student support
14%
Main teaching
grant 69%
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
WSUMs activity funding
Assumed fee income
Widening access (headcount)
Social inclusion (headcount)
Social inclusion (SUMs)
Rural and remoteness
Achievement
Total
2.32m
£m
482.4
118.6
11.5
7.2
8.1
2.8
4.3
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
Entry cost
17%
29%
Social inclusion entry cost
8%
Social inclusion retention
and achievement
6%
Rural and remoteness
headcount
21%
19%
Rural and remoteness
institution
Achievement
Additional Premiums – Island College
0%
9%
0%
6%
6%
Entry cost
Social inclusion entry cost
Social inclusion retention
and achievement
Rural and remoteness
headcount
Rural and remoteness
institution
79%
Achievement
Additional Premiums – Urban College
0%
0%
Entry cost
5%
24%
25%
Social inclusion entry cost
Social inclusion retention
and achievement
Rural and remoteness
headcount
Rural and remoteness
institution
46%
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 funding
Indicative 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
Main Teaching Grant and Fee waiver
Student Support
Strategic Funds
Economic Downturn
APUC
Total
2011-12
£m
421
95.6
19.5
8.4
1.0
545.5
Changes to funding
allocations
WSUMs
Main Teaching Grant and Fee
Waiver
Student Support
Strategic Funds
2010-11
2011-12
Change
2.32m
£460.5m
2.23m
£421m
-3.8%
-8.6%
£83.9m
£28.1m
£95.6m
£19.5m
+13.2%
-30.1%
Capital formula funding and project funding FY 2005-06 to FY
2010-11
120
100
£ million
80
Formula Funding
60
Project Funding
40
20
0
2005-06
2006-07
2008-09
2007-08
Financial Year (FY)
2009-10
2010-11
•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
Download

Scottish Funding Council