The simple way to manage the interim year would have been to directly overturn the existing HEFCE agreements – although much of the text of these agreements remains intact, these changes suggest a regulatory authority that is concerned with making regulatory changes that are dictated by policy and legislation. There are four main sources of funding for higher education: some research activities are funded under the dual-support system, which is a combination of research support and public grants. And it doesn`t stop there. A week later, we received a letter from Nicola Dandridge to ofS-funded higher education providers regarding education assistance from April 2018 to July 2019 (savings of $22 million, mainly by reducing assistance to PGT if you are interested). HEFCE carried out this calculation each year on the basis of an updated register of public subsidies received. Each year, a figure has been sent to each institution that receives funding. We do not know how many institutions have decided not to go private, or, less dramatically, other investments or strategic decisions. What these two unexpected measures suggest is that we are already entering the world of light and risk-based regulation. This is an approach that replaces the regulatory burden reduction aspects of oversight, and whether the line has been drawn in the right place will be clearly examined. In these cases, HM Treasury has an interest in the assets it has paid for – investments of general interest that are no longer used in a way that benefits the common good, for the purpose originally granted.
The value of these assets is calculated – including amortization – and is called public treasury compensation. It is interesting to note that the OfS is still in a position to control institutional borrowing in the interim year, either when the OfS informed the university that it was considered “higher risk” or that of The OfS informed the university that it wished to cooperate with it on the basis of a “targeted dialogue”. This reflects the old HEFCE requirements for at-risk institutions – but with the general rule that passes the temptation to borrow more, all institutions will be felt. The DfE and BEIS have also put in place guidelines for higher education providers: criteria and procedures for applying for the university`s title and designation, as well as guidelines for the awarding of teaching and research degrees, all of which were published on Thursday. None of these documents had particularly attractive titles, but the most annoying was the “CGV for University Financing” (CGV). On the face of it, one would expect it to be almost double the last Insurance and Insurance Memorandum (MAA) – what is expected of the institutes during the transition period, while the SFO regulates the sector using the old HEFCE rules. Under previous HEFCE rules, if you try to borrow a shipment of money, say, pay for a new campus – and that shipment of money would mean that your total loan was more than six times your annual cash flow – you had to write and ask the regulator. It was one of the ways HEFCE managed institutional risks – and it was precisely this risk management that allowed institutions to borrow large sums of money.