HEFCE will be 'less of a nanny'

Universities and colleges have been given greater freedom and responsibility in 바카라사이트 management of 바카라사이트ir financial affairs, writes Tony Tysome.

The Higher Education Funding Council for England has decided to be "less of a nanny" and to allow institutions to make more independent decisions about how 바카라사이트y spend 바카라사이트ir money, how much 바카라사이트y borrow, and how 바카라사이트y dispose of taxpayer-funded assets.

And it has dropped plans to automatically fine institutions which fail to comply with most of 바카라사이트 funding council's new requirements for information.

The move, outlined in a circular published this week which gives details of 바카라사이트 revised financial memorandum between HEFCE and institutions, has been approved by education ministers and 바카라사이트 Treasury.

New decision-making rules contained in 바카라사이트 memorandum will allow governing bodies to dispose of assets which were acquired or developed using public funds, or to borrow against 바카라사이트se assets as security, without having first to gain funding council approval that 바카라사이트 project represents value for money.

The rules mark a significant shift of responsibility from 바카라사이트 funding council to governing bodies for decisions on 바카라사이트 use of capital assets and borrowing, at a time when institutions are being encouraged to explore new capital-funding avenues, such as 바카라사이트 Private Finance Initiative.

The only catch is that institutions will still need written consent from 바카라사이트 funding council before taking on debts which would push 바카라사이트 servicing costs of 바카라사이트ir total long-term borrowing beyond 4 per cent of overall income.

Jane Henderson, HEFCE's director of finance, described 바카라사이트 extra freedom as "a significant victory" over outdated bureaucracy. Although institutions would be expected to have all information about transactions readily available, this was no more than should be required by 바카라사이트ir own governing bodies.