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About the P&I Team Communications  | Responses | Policy Guide | About the P&I Team
FURTHER EDUCATION FUNDING BRIEFING No 32
FE Pages

 

Further Education Funding Brief

May 2002

INTRODUCTION

Scotland's Further Education colleges are funded mainly from the Scottish Further Education Funding Council, which receives

finance from the Scottish Executive Department of Enterprise and Lifelong Learning, as part of the Scottish budget.

BACKGROUND

Prior to 1993, Scottish FE Colleges were part of Local Authority Education Departments and were funded from Council funds.

The Further and Higher Education (Scotland) Act 1992 provided for Scotland's colleges to become "Incorporated Bodies". This legislation meant that individual Boards of Management took on responsibility for the strategic and financial management of their college. For example, since 1996 Colleges have all negotiated their own terms and conditions.

The Act provided for a corporate body, the Scottish Further Education Funding Council, which came into being in July 1999.

Also created was the Scottish Higher Education Funding Council, which is a separate body, despite having close administrative links.

Funding for the SFEFC is allocated from the Scottish Executive's budget each year and is disbursed to individual colleges on a formula based on student activity. Since Incorporation there have been changes in emphasis to the funding methodology from "indiscriminate competition" to "managed growth". It is claimed that this greater transparency in funding has given colleges stability and enabled them to plan ahead.

SCOTTISH FURTHER EDUCATION FUNDING COUNCIL

The SFEFC took up its responsibilities on 1 July 1999 at a time when further education has been placed in the forefront of delivery for the Scottish Executive's plans for a learning society.

Its functions include:

  • responsibility for funding Scotland's further education colleges;
  • monitoring the financial health of the sector;
  • promoting innovation;
  • offering guidance to colleges; and
  • advising the First Minister on funding matters and efficient provision of further education in Scotland.

 

FUNDING FROM SFEFC

Recurrent Grant-in-aid Allocation

This is distributed to the 43 incorporated colleges, on the basis of their measured share of student activity. Student Units of Measurement (SUMS) equal approximately 40 hours of study, weighted to reflect the different costs associated with running different courses. This funding is calculated using the SUMS for the year 2 years prior to the current year.

Similar funding is also given to Orkney and Shetlands Councils for the two non-incorporated colleges there and to the non-incorporated colleges of Sabhal Mor Ostaig, the Gaelic college on Skye and Newbattle Abbey College in Dalkeith

 

Estates & Capital Funding

This is a grant given to each college for routine maintenance, health and safety improvements, etc., plus colleges can bid for grants for major upgrading.

National Grid for Learning ICT

The Comprehensive Spending Review provided an additional £29m over the three years 1999-2002 for development of the FE part of the National Grid for Learning. This

Is being used to implement the ICTstrategy.

Strategic Funding

A certain amount is set aside each year for

structural initiatives or special projects. The Scottish Colleges Biotechnology Consortium involving Falkirk, Fife, James Watt and Bell Colleges is one example.

Other SFEFCFunding

In addition to the above, there is an amount of bursary funding for distribution to students and funding towards students' childcare costs. The Beattie Report "Implementing Inclusiveness Realising Potential" aimed at improving access to students with special needs, and the SFEFC receives specific funding to take forward this agenda.

CURRENT SPENDING LEVELS

Following the Scottish Executive Budget process in the early part of each year, a funding announcement is made in April. This sets out the funding for the recurrent grant , and the other funds, and details the allocation to each college for the forthcoming year.

Overall SFEFC Funding for the Academic Year 2001-02 is set out below and the individual amount allocated to each college is attached as Appendix 1

 Programme

2000/01

£M

2001/02

£M

Recurrent grant-in-aid

290

315

Bursaries

41

47

Capital

15

21

ICT

13

15

Strategic

3

3

Childcare

3

3

Quality Improvement

1

5

Beattie

0

1

Other

2

4

Total

368

414

OTHER SOURCES OF FUNDING

LECs

Colleges can also undertake LEC sponsored activity and engage in commercial activities to provide an additional source of income. These activities have to cover their full costs and are not subsidised by SFEFC funding. They can include consultancy services and training for certain client groups such as prison staff and nurse education. Colleges may also receive income from sales of products such as publications and by-products from tuition activities.

However, as charities, colleges must use any income and resources within the framework of charity tax legislation.

European Funding 2000-2006

Historically, FE colleges have received a substantial amount of European Union (EU) funding, which has been used to support a wide range of activities. Large capital new build and ICT projects have been funded from the European Regional Development Fund (ERDF) and European Social Fund (ESF) funds the training of unemployed young people and adults.

PROBLEMS

As part of its responsibilities for monitoring the financial health of colleges, the SFEFC has recently announced proposals to assist 9 colleges which have had serious financial or management problems. £7m has been

allocated for the colleges in question, who will have to produce a "recovery plan" for their future sustainability. The Council will have to apply tighter financial controls to the 9 colleges, which include Clydebank with £2,565,000 and Inverness with £1,084,000

LINKS

www.sfefc.ac.uk

www.sfefc.ac.uk/content/library/circs/circs01/fe1501/ MainGrantLetter.html

www.sfefc.ac.uk/content/library/media/2002/prfe0101/htm

www.sfeu.ac.uk

www.sfeu.ac.uk/fe/About%20FE/section1.html

www.hmso.gov.uk/acts/acts1992/Uk

pga_19920037_en_1.htm

www.scotland.gov.uk/library3/lifelong/feis-01.asp

www.ascol.org.uk/european/background.asp

Appendix 1

SCOTTISH FURTHER EDUCATION COLLEGES
COMPARISON OF 2001-02 RECURRENT ALLOCATIONS WITH 2000-01

College name

2000-01

£

2001-02

£

Change

%

Aberdeen College

17,634,500

19,144,800

8.6%

Angus College

4,989,300

5,411,500

9.8%

Anniesland College

5,548,400

6,305,800

9.6%

Ayr College

6,425,600

7,318,200

12.3%

Banff & Buchan College of Further Education

4,908,500

5,343,200

8.9%

The Barony College

1,385,400

1,573,900

11.9%

Borders College

4,694,500

4,714,700

0.7%

Cardonald College

8,628,200

9,547,800

9.7%

Central College of Commerce

4,930,100

5,180,800

1.3%

Clackmannan College of Further Education

2,873,500

3,070,500

8.5%

Clydebank College

7,135,300

7,480,200

0.8%

Coatbridge College

4,397,400

4,865,600

8.0%

Cumbernauld College

3,592,100

3,996,900

4.2%

Dumfries and Galloway College

5,268,700

5,383,400

3.5%

Dundee College

11,644,100

13,759,000

14.5%

Edinburgh's Telford College

14,455,000

15,264,200

3.6%

Elmwood College

3,781,300

4,062,100

7.9%

Falkirk College of Further and Higher Education

9,782,400

10,773,500

7.7%

Fife College of Further & Higher Education

7,869,100

8,591,700

10.4%

Glasgow College of Building and Printing

7,152,100

7,696,000

4.7%

Glasgow College of Food Technology

3,431,400

3,822,500

12.5%

Glasgow College of Nautical Studies

4,304,700

4,513,600

5.4%

Glenrothes College

5,921,900

6,319,700

6.6%

Inverness College

7,040,700

6,026,500

6.5%

James Watt College

15,191,300

19,741,700

13.7%

Jewel and Esk Valley College

7,932,100

8,657,800

7.0%

John Wheatley College

4,399,100

5,157,200

11.5%

Kilmarnock College

6,462,100

6,837,800

3.4%

Langside College

7,200,500

7,176,000

-3.4%

Lauder College

6,480,500

6,879,200

7.6%

Lews Castle College

2,088,900

1,640,900

-5.1%

Moray College

5,203,600

3,941,100

0.1%

Motherwell College

9,373,300

10,593,600

14.4%

North Glasgow College

5,628,600

6,246,400

12.6%

Oatridge Agricultural College

1,858,700

1,928,800

2.9%

Perth College

6,079,000

4,796,800

5.7%

Reid Kerr College

9,322,200

10,393,200

12.5%

South Lanarkshire College

4,378,600

4,594,400

6.2%

Stevenson College

11,846,000

12,243,200

-3.2%

Stow College

5,700,100

5,959,100

2.8%

The North Highland College

3,010,600

2,714,500

5.7%

West Lothian College

4,521,700

5,954,500

6.1%

Orkney College

1,137,500

1,065,700

7.0%

Shetland College of Further Education

1,366,400

1,058,800

-15.3%

Bell College

6,425,900

6,843,600

6.5%

Newbattle College

277,400

295,400

6.5%

Sabhal Mor Ostaig

693,600

492,500

6.5%

 

 

 

 

TOTALS

284,371,900

305,378,300

6.9%

 

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