31 July 2024 
Matt Sisson, Projects and Membership Manager
SECTOR
Medr, the new name for the Commission for Tertiary Education and Research, officially starts work as the regulator for the Welsh HE sector tomorrow (1st August). It doesn’t have it’s own dedicated website yet, but the latest info can be found here. In related news, perhaps the final utterings of HEFCW might be details of the 24/25 fee waiver scheme for part-time undergraduates.
The government has announced an interim OfS Chair, after Lord Wharton resigned following the election. Sir David Behan will take up the role, having just completed an independent review of the body. The new Chair has been asked to refocus the role of the regulator around the financial stability of the sector, and better outcomes for students. Susan Lapworth, Chief Executive of the OfS has welcomed the changes, as has UCEA, while the BBC leads on the parallel decision to put the new Freedom of Speech legislation on hold.
OfS has also published details of recurrent funding allocations for 24/25, as well as perhaps the world’s smallest capital grant allocations. Might just be worth the process costs.
The UCAS application figures for the 2024 cycle have been published, and show 316,850 18 year olds have applied to a university or college this year, which is a slight increase in total numbers, but a drop of 0.2% in the application rate to 41.3%. The number of students from disadvantaged backgrounds has increased by 2%. Other trends show a slight increase in international applications, but a reduction in applications from mature students. All the data can be found on the UCAS website.
As could be expected following the change of government, the King’s Speech, and the changes at the OfS, there’s been a huge amount of commentary and news coverage over the last couple of weeks, focusing primarily on the financial sustainability of the sector. There’s to be no immediate fee increase in England, and the education secretary has said there will be no direct bailouts, but this hasn’t stopped speculation about additional indirect funding. Wonkhe’s David Kernohan suggests that regulatory changes could ease the pressure, a joint report from Public First and the University of Warwick want to see a sector transformation fund to help manage risk and uncertainty, the International Higher Education Commission hopes the government will be proactive in supporting international student recruitment, and GuildHE makes the case for the value of creative graduates. UUK are working longer-term and trailing a paper, due to be published in the Autumn, that will show how a strong university sector can provide solutions to many of the government’s other problems around areas such as economic growth, healthcare, and climate change.
FINANCIAL REPORTING
The Kings Speech last month included a draft Audit Reform and Corporate Governance Bill, formerly put on hold by the prior government back in 2023. Amongst other things, the Bill establishes a new Audit, Reporting, and Governance Authority (ARGA) to replace the FRC, and extends Public Interest Entity (PIE) status to large private companies. The FRC has responded here, and there is coverage from the Independent and Accountancy Age.
The draft minutes of the July Financial Reporting Group (FRG) meeting have been added to the BUFDG website. The meeting discussed the SORP timetable, and the USS modeller, among other things. It also includes confirmation that there are no significant changes to either English or Welsh accounts directions for 2023/24. The accounts direction for Scotland is expected to be released within the next week and will include changes in respect of Fair Work disclosures and updated wording for the 2023 Code of Governance.
Also, a reminder that last month we launched a new updated version of our guide to Understanding University Finance. Last updated in 2021, the guide is a useful and accessible companion for the broad church of university stakeholders and brave Annual Report explorers. If it’s a while since you downloaded it, please do take a look, and make sure that those in your institution who might benefit from it (governors, departmental budget holders, trainee accountants?) are aware of its existence. We’re particularly grateful for Peter Fielding for his work on the latest revisions.
Later this year we’ll also be publishing revised editions of both the Introduction to Accounting for Pensions in HE, as well as the guide to UK Universities and Tax. These can all be downloaded from the Understanding Finance pages.
PROCUREMENT
HEPA is pleased to share a comparison table of the PCR2015 regulations to the Procurement Act 2023 produced by the Cabinet Office. Please note: this is intended as a guide for stakeholders during the implementation of the Procurement Act 2023, it does not constitute legal advice. Members can download the comparison table here.
We are also pleased to share an update on Central Digital Platform / Find a Tender – you can find the digital update in the form of a slide pack here. The slides cover the Contracting Authority end-to-end journey, the indicative project timeline and the list of eSenders whom the Cabinet Office are engaging with. The update also provides very useful information about sharing your buyer API with your eSender, as well as administering your Find a Tender account. The Cabinet Office have asked that these slides are not to be shared outside of your organisation.
Bookings are now open for the next set of Cabinet Office Communities of Practice in August and September – topics include the Central Digital Platform, Frameworks & Dynamic Markets and Transition - all of the details are available on the HEPA website.
As part of the Transforming Public Procurement L&D programme, HEPA is provided with an eLearning module progress report and a Deep Dive booking status report by the Cabinet Office. Heads of Procurement can find out more about these reports on the discussion boards here.
Finally, The National Audit Office (NAO) have published a report on efficiency in government procurement of common goods and services, which may be of interest to members. The report focuses on how common goods and services are purchased across the UK public sector, as well as if Crown Commercial Service (CCS) has achieved its objectives and what more it could do to secure greater efficiencies. The report draws a number of conclusions, and in particular recommends that the government needs to address the profusion of framework agreements and support CCS to make improvements to its offer. The full report is available on the NAO website here.
SUSTAINABILITY
As efforts continue to tackle the climate crisis, readers may be aware of the plethora of various measuring and reporting standards that exist for carbon, biodiversity, and other climate-adjacent issues. Some standards are mandatory, some only ’best-practice guidance’, some are country-specific, and some apply in ways that only impact smaller groups of universities. As a result, it can be difficult to keep track. BUFDG has produced a document that summarises the existing standards, and tries to briefly explain what they are and what they cover. It’s a living document, and will rely on comments and feedback from colleagues to keep it up to date. We hope you find it useful, and If you spot any errors or wish to contribute, please contact Matt.
The Charity Investment Governance Principles are a new tool being developed to provide help and practical support for trustees, staff and others to tackle challenges relating to charity investment governance. The Principles draw on the experiences of charities across England and Wales, reflecting the outcomes of the Butler-Sloss legal case in the context of climate conscious investment and the Charity Commission’s updated CC14 guidance. A consultation running until Wednesday 7 August is an opportunity for charity representatives to provide feedback prior to publication of the Principles in the autumn. Universities can respond to the consultation via these links in either English or Welsh.
It's Green Gown awards time again, and readers can find the finalists for the 2024 awards, and find out about their fantastic projects, on the awards website. In related news, there is an interesting article on HEPI from league-table compiler QS, that explains survey findings about how important university action on environmental and social issues are to students, and what universities can do to involve them more.
TAXES AND EMPLOYMENT
As the formal start of the government’s legislative programme, the King’s Speech was always going to have a lot to talk about. It hasn’t disappointed on the tax front. As expected, the VAT exemption for private schools will be removed (to pay for 6.5k new teachers) and the Apprenticeship Levy is due for another reform (will anyone get that right?). Other bills will have an impact on tax, such as audit reform, pensions consolidations, NMW uplifts and employment protections (see this article from Shakespeare Martineau or the CIOT’s Employment Rights article). If you are so inclined, you can read the full speech and briefing notes here.
Andrea is monitoring the introduction of VAT on Private School Fees very closely, given how some BUFDG members access the VAT education exemption. She’s just posted a significant update to this discussion thread. In summary, she thinks that “our members will only be impacted if they receive “private school fees” for full time education/vocational training, and any related board and lodgings charges for under 19s”. Please do contact her if you think you are impacted.
Your calculation of tax/NIC under the PAYE Settlement Agreement for the 2023/24 tax year is due for submission to HMRC by the end of July. The finance department is typically responsible for collating and reviewing the data, and BUFDG have useful guidance here.
HMRC has raised concerns about the provision of workplace nurseries. If you have an onsite nursery for your employees, which is run in partnership with a nursery provider, there are specific rules to ensure that the provision remains tax free. Read our article here to check your arrangements retain the tax free treatment.
BUFDG has updated the Global Mobility Country Database with additional links added on student exemptions and employment law.
Finally, something that is not directly a tax issue, but the British Council has published an article on undertaking TNE in Saudi Arabia. This will be useful background reading if your university trades – or is intending to trade – in the kingdom.
OTHER
The date for the government’s Autumn Budget will be 30 October.
We’re still looking for a chair of the new Research Finance group. If you might be interested, there’s more information on this discussion board post. The closing date is 9 August.
Finance Festival sessionists Strengthify are running discovery workshops at 8 different locations around the country. The sessions are Glasgow (29 August 2024), Bristol (3 September 2024), Manchester (4 September 2024), Nottingham (11 September 2024) , London (12 September 2024), Cardiff (17 September 2024), Leeds (18 September 2024), Birmingham (26 September 2024). You can find more about what Strengthify do on their website, and you can register interest for a session using this link.
AECC University College has gained approval to change its name to Health Sciences University (HSU for short) following a period of consultation.
Our Job of the Fortnight is for a Finance Business Partner at the University of Central Lancashire. “The role covers a blended portfolio of School and Service Budget Holders in providing financial support, budget setting, strategic planning & review and operational delivery”. The successful candidate will have experience of “providing partnering support and financial analysis to both finance and non-finance managers”. The deadline for applications is 4 August.
There are other vacancies listed on the BUFDG jobs page.
