PLANNING & RESOURCE ALLOCATION POLICY AND GUIDELINES Newman University College Planning & Resource Allocation Policy and Guidelines 1

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1 PLANNING & RESOURCE ALLOCATION POLICY AND GUIDELINES 2006 Planning & Resource Allocation Policy and Guidelines 1

2 NEWMAN UNIVERSITY COLLEGE PLANNING AND RESOURCE ALLOCATION POLICY AND GUIDELINES Introduction This set of policy and guidelines sets out the approach to planning used at. The University College has a statutory obligation to make the best use of public and other money which comes into the institution for the purpose for which it is provided. Given the constraints of resources in higher education, the approach taken is designed to be as fair and transparent as possible and to ensure that activities which the University College enters into will be of high quality and, where appropriate, sustainable. Resource Allocation Policy 1. Resource decisions will be informed by the strategic plan, on which all staff have been consulted. 2. The University College will endeavour to generate a surplus of 3% on turnover in line with Funding Council guidance 3. Resource allocation will always be informed by the need to uphold standards and quality of provision, including the infrastructure of the University College 4. Resource decisions will be taken in such a way as to uphold the University College policies on equality and diversity 5. The University College will communicate decisions on resources via the minutes of appropriate committees. Guidelines The Planning Cycle Newman, like all other HEIs, works to a planning cycle. To be more accurate, it works to both a longer term planning cycle (the Strategic Plan) and to a short term planning cycle (the annual cycle). Together these two planning processes identify the University College s strategic aims and goals and how they will be met. The Strategic Plan contains sub plans which are produced by each school and section of the University College. Complementing the main strategic plan is an annual review of progress against the University College strategic goals and the setting of new goals for the next stage of the overall plan. Supporting the delivery of the Strategic Plan are the University College s five year forecasts and the annual Budget. Newman is required by the funding councils to submit the Strategic Plan with these five year financial forecasts to enable a judgement to be made on the sustainability of the Planning & Resource Allocation Policy and Guidelines 2

3 University College and its financial strength. If the funding councils (HEFCE and the TDA) have concerns about the position of an institution, HEFCE is then likely to undertake an audit and to set targets for the HEI to improve its position. The Strategic Plan for was reviewed and updated last year. The intention is to work towards a full review during the year during which time it is hoped that Newman will achieve University College status. Key planning dates The annual planning cycle runs across the academic year as follows: August Clearing and final recruitment processes for September September Invitation from TDA to bid for numbers for next two years New recruitment cycle begins HESA return October November December Jan/Feb January January February (Early) Registration of full time students and first cohorts of part time students TDA census of registrations Invitation from HEFCE to bid for Additional Student Numbers (ASNs) Heads of School begin consultation process re numbers Bids submitted to TDA and HEFCE HESES return (student registrations) Notification from TDA re numbers Notification from HEFCE re ASNs Revisions to strategic plan drafted (where appropriate) Second recruitment cycle for part time students CMG receives projected student numbers based on applications and roll forward of existing numbers Initial budget drafts prepared Heads of School consult in schools re staffing Review of staffing needs using RAM/workload allocation/ssr/planned developments Mid February Staffing meeting of CMG Heads of School prioritise bids Non pay expenditure meeting of CMG CMG prioritise bids Planning & Resource Allocation Policy and Guidelines 3

4 Draft of revised strategic plan to CMG March April May May June July August First draft of budget to Finance and General Purposes committee Revised first draft of budget to Board of Governors Update on progress against strategic plan Revised student projections to CMG Budget revised if necessary Third recruitment round for part-time students Second revision of budget to CMG with three scenarios (best, middle and worst case) Alert Academic Board to budget priorities Revised strategic plan to Academic Board (where appropriate) Planned budgets for following academic year to Heads of School Review staffing and other expenditure in light of likely budget Final budget to Board of Governors Strategic Plan to Board of Governors Prepare Annual Monitoring Statements for HEFCE and TDA Agree Clearing targets and final admissions protocols Consideration of late student numbers Submit documentation to funding councils including five year forecasts Clearing begins Drivers The key factors in planning are the strategic plan, student recruitment (which almost entirely determines income at Newman), external returns and bidding dates, and the budget cycle. These elements are inextricably interlinked and problems with one inevitably means problems with another. The most critical factor is the strategic plan because getting the planned activity right in terms of quality and the programmes or courses on offer attracts students. Success in recruitment ensures financial stability and so on. Making budget decisions Decisions are made in the light of the strategic plan. The University College also uses a number of planning tools and approaches which include: Planning & Resource Allocation Policy and Guidelines 4

5 The Resource Allocation Model (RAM) The resource allocation model provides a picture of the cost effectiveness of areas of academic activity. The RAM helps to generate questions about the economic profitability or viability of an area of work, the relative attractiveness of particular programmes, the costs associated with activity and so on. It might show, for example, that a subject has few students being recruited but very low staff costs. Associated questions may relate to the newness of the programme or future costs and will enable conclusions to be made about its sustainability. Equally a subject or programme may be very popular but the staffing base large and the staff expensive because they are experienced. Questions then might arise about how to generate a greater surplus to plough back into the subject area to improve quality when core costs are so high. The RAM is never used alone since it is a relatively crude tool. More sophisticated models remain problematic and the college has taken the decision to work with a simple RAM together with other means of determining resource allocation. Workload Allocation Model (WAM) By far the greatest proportion of the University College turnover is spent on staffing (currently around 64%). Funding council guidance suggests that not more than 60% should be spent on staffing. The workload allocation model helps the University College to ensure that it is using its most expensive and precious resource appropriately. Staff student ratio As a rough rule of thumb the University College works on a 25/1 model which is why some additional time is provided for teaching and assessing larger classes. The ratio works with the RAM and WAM to give insight into relative class sizes in different subject areas. Some subjects have SSRs which are determined by external agencies (BPS, BASES, NYA etc). Prioritising for sustainability and development In bringing all these tools together, the decisions are then made in the light of strategic priorities including maintaining the quality of existing provision and enabling new developments. Often the only way the University College can provide new development funding is through accessing additional money through external bids. Making final decisions on the use of resources The Board of Governors has ultimate responsibility for such decisions. Day to day, the Board delegates authority to the Principal. The Principal requires members of the University College Management Group to consult with staff in their area of responsibility on needs. Each member of CMG then uses the Planning & Resource Allocation Policy and Guidelines 5

6 information they have to determine the priorities in the area or which they are responsible. All bids are brought to CMG and discussed in full, taking into account needs across the University College. Decisions are then fed into the budget, which is agreed by the Board of Governors. The Finance and General Purposes Committee sees the budget at an early stage and will challenge and question decisions in the light of the strategic plan. Their comments enable a final draft budget to be drawn up. Financial stability Because the Board of Governors and the Directorate have an overall responsibility to ensure the financial viability of the University College and the quality and standards of what it offers, difficult decisions sometimes have to be made. Where a programme or subject area may have to be discontinued, Academic Board is involved in the decision to ensure that the full impact of this decision is properly understood. If the decision relates to elements of estates expenditure, for example, whilst staff will be consulted, the decision may have to be taken very quickly to ensure that expenditure is halted. When the University College foresees financial challenges, rapid action such as the decision to freeze all staffing vacancies may also have to be taken. Such decisions are always taken in the long term interest of the University College and in the light of the strategic plan. Pamela Taylor March 2006 Planning & Resource Allocation Policy and Guidelines 6