Value for money reporting in HE

Matt Davey

Senior Efficiency and Sustainability Advisor

Academic Registrars Council

3 June 2016

What do we mean by efficiency?

Background

• SR04 and CSR07 efficiency saving targets

• House of Commons Public Accounts Committee – 2011

• First Diamond Review – 2011

• HEFCE VfM reports – 2011

• Funding reforms – 2012

• Second Diamond Review – 2015

• Spending Review – 2015

• Grant letter – 2016

• Funding reforms – 2016

The efficiency agenda

BIS have asked HEFCE to…

• Implement Diamond Review recommendations

• Produce annual HEFCE report

• Sector-level metrics

• “How the sector is driving efficiencies”

• Collect annual institutional reports

• “How they are becoming more efficient and productive over time”

• Tool for institutions to “monitor their key efficiency performance”

Grant letter – March 2016

• Sector productivity indicators and contextual information

• Teaching

• Research

• Knowledge Exchange

• Other sector-level indicators

• Estates

• Workforce

• Procurement

• Aggregated efficiency savings from VfM reports

HEFCE report on sector efficiency

Current VfM reporting

• Optional

• No standard format

• Audit function

• Part of AAR

• Back office focus

Value for Money (VfM) reports

Redeveloped VfM reporting

• Mandatory

• Standardised

• Governance tool

• Not part of AAR?

• Broad focus

Value for Money (VfM) reports

VfM Data

Stats from HESA, TRAC, NSS, etc.

HEI-specific stats: surveys, budgets,

benchmarking, etc.

VfM Narrative

VfM Strategy

Context for data

VfM plans

VfM activities

HEFCE

Efficiency savings Case studies

Governing bodies

Issues

• What information do governors need to assess VfM?

• Do they have the skills and experience to drive efficiency?

• How far should HEFCE go in prescribing what information is presented?

• How transparent should this information be?

• How can the student interest be served?

Value for Money (VfM) reports

Next steps

• Consulting with sector bodies and contacts

• Develop VfM report template

• Agree approach with UUK, GuildHE and BUFDG

• Find IT solution

• Pilot process

Value for Money (VfM) reports

Efficiency evidence framework

• Statistics from national data collections

Sector level

• Information on changing practice from sector bodies

Intermediate level

• Value for Money (VfM) reports from HEIs

HEI level

Questions for ARC…

• What does efficiency mean in the context of the registry function?

• What information do governors need to assess the efficiency of the registry?

• Does ARC have a role to play in the efficiency agenda?

• Does ARC currently do any work on efficiency?

• Can ARC provide evidence of efficiency improvements in your professional area?

Discussion

Contact

m.davey@hefce.ac.uk