Regulating financial stability in higher education

Download or read book Regulating financial stability in higher education written by Great Britain: National Audit Office and published by The Stationery Office. This book was released on 2011-03-04 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Higher Education Funding Council for England, the funder and regulator of the higher education sector, has overseen the financial sustainability of the sector through a period of growth in income and student numbers. It has taken a cost-efficient approach and delivered value for money in the context in which it has operated to date. However, the sector is facing a period of transition to a very different financial environment with an increased level of risk. The Council has contained the cost of its own regulatory activities and minimised the burden of its activities on higher education institutions. It has focused on supporting those institutions at highest risk, whilst managing to maintain the confidence of the sector. There is a wide variation in the financial performance of institutions. The Council's current assessment of financial sustainability of institutions provides effective coverage of medium-term risks but methods of detecting short term risks need reinforcing. The Council does not routinely publish its assessments of individual institutions as part of its annual assessment of risk within the sector, and delays its naming of "at higher risk" institutions by at least three years to give them time to rectify their problems. Even so, some institutions in difficulty can take a long time to resolve their weaknesses. But the Council needs to consider the balance between protecting institutions and their students and enabling prospective students to take more informed decisions on where to study.