Guidelines for the Recognit tion of Teaching & Block Grant Income June 2012 Financial Services Page 1 of 31
G & B Financial Services GUIDELINES FOR THE RECOGNITIONN OF TEACHING BLOCK GRANT INCOME Responsible Position: Manager, Corporate Finance and Reporting R Approved by: Chief Financial Officer Table of Contents OVERVIEW... 5 PURPOSE... 5 COVERAGE... 5 Exclusions... 5 DISCLAIMER... 5 GUIDELINE OBJECTIVES... 5 CONSOLIDATED SOURCES OF REVENUE... 5 REVENUE DISTRIBUTION... 5 KEY CONSIDERATIONS... 6 ACCOUNTING FOR UNIVERSITY REVENUE... 6 UNIVERSITY REVENUE BUDGETS... 6 CENSUS DATES... 6 TERMS AND ACRONYMS... 6 GUIDELINE STRUCTURE... 6 SOURCES OF INCOME... 7 AUSTRALIAN GOVERNMENT INCOME... 7 Commonwealth Grant Scheme (CGS)... 7 Block Grant Funding... 7 Other Grants... 8 FULLL FEE PAYING STUDENTS... 8 OTHER OPERATING INCOME... 8 Miscellaneous Income... 8 Commercial Services Income... 8 COMMONWEALTH GRANT SCHEME (CGS)... 9 Financial Services Page P 2 of 31
INTRODUCTION TO THE CGS... 9 RECOGNITION FOR CGS FACULTIES, INSTITUTES & DIVISIONS... 10 IMPLICATIONS OF DESIGNATED / NON DESIGNATED INCOME... 10 Non Designated Income... 10 Designated Income... 10 RECOGNITION FOR CGS CENTRAL FINANCE... 11 ANNUAL RECONCILIATION BETWEEN DIICCSRTE AND UNIVERSITY... 11 HIGHER EDUCATION CONTRIBUTION SCHEME (HECS)... 12 HECS HELP... 12 INTRODUCTION TO HECS HELP... 12 RECOGNITION FOR HECS STUDENT FEES FACULTIES, INSTITUTES & DIVISIONS... 12 RECOGNITION FOR HECS STUDENT FEES CENTRAL FINANCE... 13 RECOGNITION FOR HECS HELP CENTRAL FINANCE... 13 RECOGNITION OF HECS DEFERRALS AND DISCOUNTS... 13 ANNUAL RECONCILIATION BETWEEN DIICCSRTE AND UNIVERSITY... 13 HECS STUDENT CONTRIBUTIONS... 14... 14 INTRODUCTION TO HECS STUDENT CONTRIBUTIONS... 14 RECOGNITION FOR HECS STUDENT CONTRIBUTIONS CENTRAL FINANCE... 14 HECS FEE WAIVER SCHOLARSHIPS... 15 INTRODUCTION TO HECS FEE WAIVER SCHOLARSHIPS... 15 RECOGNITION FOR HECS SCHOLARSHIPS FACULTIES, INSTITUTES & DIVISIONS... 15 FULL FEE PAYING STUDENTS... 15 FULL FEE PAYING OVERSEAS STUDENTS (FFPOS)... 16 INTRODUCTION TO FFPOS... 16 Onshore... 16 Offshore... 16 RECOGNITION FOR FFPOS FACULTIES, INSTITUTES & DIVISIONS... 16 FULL FEE PAYING OVERSEAS STUDENTS SCHOLARSHIPS... 17 INTRODUCTION TO FFPOS SCHOLARSHIPS... 17 RECOGNITION FOR FFPOS SCHOLARSHIPS FACULTIES, INSTITUTES & DIVISIONS... 17 RESEARCH HIGHER DEGREES (RHD) INTERNATIONAL... 17 AUSAID SCHOLARSHIPS... 18 RECOGNITION OF AUSAID SCHOLARSHIPS... 18 FULL FEE PAYING AUSTRALIAN STUDENTS (FFPAU)... 19 INTRODUCTION TO FFPAU STUDENTS... 19 RECOGNITION OF FFPAU FACULTIES, INSTITUTES & DIVISIONS... 19 FULL FEE PAYING AUSTRALIAN STUDENT SCHOLARSHIPS... 20 INTRODUCTION TO FFPAU SCHOLARSHIPS... 20 RECOGNITION OF FFPAU SCHOLARSHIPS FACULTIES, INSTITUTES & DIVISIONS... 20 FEE HELP... 20 RECOGNITION OF FEE HELP CENTRAL FINANCE... 20... 21 Financial Services Page 3 of 31
OS HELP... 21 STUDENT SERVICES & AMENITIES FEE (SSAF)... 21 SA HELP... 21 RESEARCH BLOCK GRANT INCOME (RBG)... 22 INTRODUCTION TO RESEARCH BLOCK GRANT INCOME... 22 RESEARCH BLOCK GRANT INCOME: FUNDING... 23 RECOGNITION OF RESEARCH BLOCK GRANT INCOME FACULTIES, INSTITUTES & DIVISIONS... 23 ANNUAL BUDGET CYCLE... 25 BUDGET: CGS... 25 BUDGET: HECS... 26 BUDGET: HECS FEE WAIVER SCHOLARSHIPS... 26 BUDGET: FULL FEE PAYING OVERSEAS STUDENTS (FFPOS)... 27 BUDGET: FFPOS FEE WAIVER SCHOLARSHIPS... 27 BUDGET: FULL FEE PAYING AUSTRALIAN STUDENTS (FFPAU)... 27 BUDGET: RESEARCH BLOCK GRANT FUNDING (RBG)... 28 RELEVANT POLICY DOCUMENT... 29 OTHER RELATED DOCUMENTS... 29 PROCESS GUIDELINES... 29 OPERATIONAL GUIDELINES AND SUPPORTING DOCUMENTS... 29 LINKS... 29 ABOUT THIS DOCUMENT... 29 APPENDIX A: ACRONYMS... 30 APPENDIX B: DEFINITIONS... 31 Financial Services Page 4 of 31
Overview Purpose This guideline provides information on the various sources of operating income (eg. teaching and block grant income), and how this income is recognised in the Faculties and Institutes. This guideline needs to be considered in conjunction with other University policies, procedures and guidelines. All references to monetary amounts in this guideline are on a GST exclusive basis. Coverage This Guideline applies to all University budget centres, including Faculties, Institutes and Divisions. Exclusions This guideline excludes information on invoicing and revenue collection. For further information on these refer to: Invoicing and Receivables Guidelines Cashiering and Revenue Collection Guidelines It also does not cover SSAF income, until the process s is finalised. Disclaimer Any reference to SLIMS is indicative of the future process and will have to be reviewed once SLIMS is implemented. Guideline Objectives Consolidated Sources of Revenue This guideline consolidates information regarding the various sources of operating income for the University into one document. The purpose is to provide a comprehensive background to the revenue structure of the University. Revenue Distribution This guideline explains the process by which University revenue is received and distributed across the University. Financial Services Page 5 of 31
Key Considerations Accounting for University Revenue All University revenue received must be recorded in the University's Financial System (TechnologyOne Financials) and is subject to any relevant legislation, ordinances, rules and/or governance level principles, and any other relevant policies, procedures, and/or guidelines. University Revenue Budgets Revenue is generally distributed and budgeted for at a faculty level, with some operating income centrally recorded. Census Dates Most student fee related income is recognized in the Faculty and Institute accounts when the census date has passed. The census date infers a liability by the student to the University for the unit(s) they have enrolled in. The University has five main semesters/census dates. These dates usually fall within the following months each year: Semester 1 Semester 2 Semester 3 Semester 4 Semester 5 March August January (Summer School) June/July (Winter School) December (Spring School) There are other census dates that fall within the semesters; these are usually for short courses. Terms and Acronyms A list of important terms, acronyms including a brief summary of the concept is provided at Appendix A. Guideline Structure Information for faculties, schools and institutes is included under specific categories as listed in the guideline. Information specifically for users in Financial Services is identified separately and primarily relates to the central recognition and reconciliation process. Financial Services Page 6 of 31
Sources of Income The University of Tasmania s core teaching activities are funded from the Operating Grant which is calculated and supplied by DIICCSRTE. The following are the major types of operating income that are received by the University Australian Government Income Commonwealth Grant Scheme (CGS) CGS HECS Regional Loading Enabling Loading Medical Student Loading Transitional Loading Australian Government Income (AGI) supports Commonwealth Supported Places as determined by the Commonwealth. Student Fee Income is made up of two components: Commonwealth Grant HECS The total of the two is the total income earned by the unit. HECS can be deferred by the student, resulting in the Commonwealth paying the University on behalf of the student (HECS HELP), or the Student can opt to pay their portion of the fees upfront (HECS Student Contribution). Block Grant Funding Research Block Grants (RBG) support research and research training via the following schemes: Research Training Scheme (RTS) Joint Research Engagement (JRE) Sustainable Research Excellence (SRE) Research Infrastructure Block Grants (RIBG) Research Block Grant funding is also available for Postgraduate Research Scholarships via the following schemes: Australian Postgraduate Awards (APA) International Postgraduate Research Scholarships (IPRS) Research Block Grants are allocated according to performance based formula and are independent of funding for specific research projects, programs or fellowships. Financial Services Page 7 of 31
Other Grants This includes equity, disability and regional support grants; these are managed by the Divisions. Full Fee Paying Students The University earns fee income from the following categories of students: Full Fee Paying Overseas Students (FFPOS): These fees are a result of students enrolling in courses which the university chooses to offer to overseas applicants, there are two types of overseas students: Onshore Offshore Offshore students represent those students enrolled in Transnational Education (TNE) Programs and are identified separately in the Finance System. Full Fee Paying Australian Postgraduate Students (FFPAU): Courses offered to domestic students on a fee paying basis. FFPAU fees can be deferred by the student, resulting in the Commonwealth paying the University on behalf of the student (FEE HELP). Other Operating Income Miscellaneous Income Income that is derived and is under the direct control of Budget Centres includes short courses, diagnostic testing, sale of student readers and other activities of a similar nature. Commercial Services Income The University is involved in several commercial enterprises which are intended to operate on a commercial basis. These include student accommodation and sport and recreation. Special Grants Capital funds, such as the Capital Development Pool Program (CDP) and Education Infrastructure Funding (EIF) are received for specific purposes, usually after an application process, and are managed centrally. Financial Services Page 8 of 31
Commonwealth Grant Scheme (CGS) Introduction to the CGS The Australian Federal Government provides CGS funding to the University for Commonwealth Supported Places (CSPs), primarily in bachelor courses of study. Bachelor courses: The University determines the number of students to be enrolled in these courses (excluding medicine) and will receive funding for these places. Non research postgraduate and designated undergraduate courses 1 : The Australian Commonwealth Government will provide funding for an agreed number of places in any given year. The University enters into a funding agreement with the Australian Commonwealth Government in order to receive the CGS grant based on agreed targets. Funding is adjusted annually based on performance; this is measured against the agreed targets for the prior year(s). It should be noted that revisions may affect the income for the University. The University also receives funding under this scheme for: Regional Loading: additional funding for regional Universities to meet the higher costs associated with their size and location; Enabling Loading: additional funding to assist with the costs of providing enabling courses; Medical Student Loading: additional funding for CSPs in a medicine course of study, which on completion allows for provisional registration as a medical practitioner; Transitional Loading: additional funding to assist providers with transitional costs associated with changes to CGS/HECS funding arrangements. 1 Designated undergraduate courses include medicine, enabling and courses of study leading to a diploma, advanced diploma or associate degree. Financial Services Page 9 of 31
Recognition for CGS Faculties, Institutes & Divisions Topic Source Fees Module/SLIMS Recognition At Census Dates Frequency of File Transfer Monthly Reporting Monthly variance reporting Project(s) Projects commencing with 09 Natural Account(s) 11015 11020 Designated/Allocated Places Non Designated Courses Implications of Designated / Non Designated Income Non Designated Income From 2012 public universities will determine the number of students they enrol in bachelor level courses (excluding medicine) and will receive funding for these places. 2 Designated Income The Government will continue to allocate Commonwealth supported places for nonresearch postgraduate courses of study and courses of study in medicine. Funding agreements for each university will specify an upper limit for CGS funding and the actual payment for this component cannot exceed this maximum basic grant amount. 2 The legislation does allow the Minister to specify an upper limit for CGS funding for undergraduate courses of study. This allows the rate of growth in funding to be slowed in future if necessary; however this has not been applied in 2012. Financial Services Page 10 of 31
Recognition for CGS Central Finance CENTRAL FINANCE USE ONLY Topic Source DIICCSRTE HEFA Statement Recognition Fortnightly Reporting Monthly variance reporting Project 097024 DIICCSRTE Income Basic Grant Natural Account(s) 11015 11020 Designated/Allocated Places Non Designated Courses Annual Reconciliation between DIICCSRTE and University At the end of each calendar/financial year, the University receives an annual statement from DIICCSRTE for the prior year performance (including any revisions on student enrolments that are backdated into prior years). This annual statement is reconciled to project 097024 which has received (credited) actual income received from DIICCSRTE and charged (debited) the income recognised in the Faculty s and Institute s projects. Where an overpayment/underpayment is calculated by DIICCSRTE future CGS payments within the current year are adjusted. Any shortfall/increase in funding is recorded centrally as follows: Topic Source DIICCSRTE Reconciliation Recognition Annual Reporting Monthly variance reporting Project 097024 DIICCSRTE Income Basic Grant Natural Account(s) 11001 CGS Basic Grant prior year adjustments Financial Services Page 11 of 31
Higher Education Contribution Scheme (HECS) The Higher Education Contribution Scheme (HECS) is the charge to the Student for their portion of the tuition fee for Commonwealth Supported Places (CSP). Income under this scheme can be received in two ways: The Australian Commonwealth Government payments (HECS HELP) Student Upfront payments (HECS Student Contributions) The maximum fee chargeable to students is determined by DIICCSRTE. Each unit is banded based on the Field of Education (FOE) code a unit is attributed to. 3 HECS HELP Introduction to HECS HELP HECS HELP is the loan program to help Commonwealth Supported (CSP) students pay their student contribution amounts. Where the student chooses not to pay for their fees upfront, the Australian Commonwealth Government pays their portion of the fees on their behalf, which is later claimed back by the Government under the taxation scheme. A HECS HELP Discount applies to full up front or partial up front payments of $500 or more and is paid by the Commonwealth to the University. Recognition for HECS Student Fees Faculties, Institutes & Divisions Topic Source Fees Module/SLIMS Recognition At Census Dates Frequency of File Transfer Monthly Reporting Monthly variance reporting Project(s) Projects commencing with 09 Natural Account(s) 11400 HECS Student Fees 3 HECS Banding can be found on the DIICCSRTE website. Financial Services Page 12 of 31
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HECS Student Contributions Introduction to HECS Student Contributions CENTRAL FINANCE USE ONLY Students may choose to make a full or partial up front payment of their student contribution amount for all of their units of study to their provider on or before the census date. Full up front or partial up front payments of $500 or more attract a 10% HECS HELP discount which is paid by the Commonwealth to the University. Recognition for HECS Student Contributions Central Finance Topic Source Fees Module/SLIMS Recognition At Census Dates Reporting Monthly variance reporting Project Projects commencing with 09 Natural Account(s) 11400 HECS Student Fees Financial Services Page 14 of 31
HECS Fee Waiver Scholarships Introduction to HECS Fee Waiver Scholarships HECS fee waiver scholarships can either be externally or University funded. Internal fee waiver scholarships awarded for a Commonwealth Supported Place represent a reduction in the HECS tuition fee/income received for the unit(s). A fee waiver scholarship will have a corresponding fee waiver scholarship code and can be a partial or full waiver of the HECS tuition fee. Recognition for HECS Scholarships Faculties, Institutes & Divisions Topic Source Fees Module/SLIMS Recognition At Census Dates Frequency of File Transfer Monthly Reporting Monthly Variance Reporting Project Projects commencing with 09 Natural Account(s) 11404 HECS Scholarships Full Fee Paying Students The University earns fee income from the following categories of students: Full Fee Paying Overseas Students (FFPOS): These fees are a result of students enrolling in courses with the university to overseas applicants, there are two types of overseas students Onshore Offshore Offshore students represent those students enrolled in Transnational Education (TNE) Programs and are identified separately in the Finance System. Full Fee Paying Australian Postgraduate Students (FFPAU): Courses offered to domestic students of a fee paying basis. Financial Services Page 15 of 31
Full Fee Paying Overseas Students (FFPOS) Introduction to FFPOS Overseas students are those without Australian or New Zealand citizenship and who do not have permanent residency status in Australia. There are two types of overseas students: Onshore Onshore Offshore Overseas students studying on campus in Australia are considered onshore students. Fees for overseas students are determined by the University, however they are subject to minimum indicative course fees set by DIICCSRTE. Offshore Students studying courses delivered outside Australia are considered offshore students. Courses delivered offshore are referred to as Transnational Education (TNE) programs and are not subject to the minimum overseas course fees set by DIICCSRTE. Recognition for FFPOS Faculties, Institutes & Divisions Topic Source Fees Module/SLIMS (onshore) Invoice (offshore) Method of Payment At Census Dates Frequency of File Transfer Monthly (not applicable to offshore income) Reporting Monthly variance reporting Project(s) Projects commencing with 09 Natural Account(s) 15000 Full Fee Paying International Student Fees (onshore) 15104 TNE Course Fees AIEN Institute SOU China (offshore) 15105 TNE Course Fees ACK Kuwait (offshore) 15106 TNE Course Fees HKUE Hong Kong (offshore) 15107 TNE Course Fees ZUT China (offshore) Financial Services Page 16 of 31
Full Fee Paying Overseas Students Scholarships Introduction to FFPOS Scholarships FFPOS student scholarships represent a partial or full reduction of a student s fee and are normally an internal University arrangement. Where a scholarship is awarded this reduces the tuition fee (income) received for the enrolment. The type of scholarship awarded is represented by a scholarship code maintained by the Student Centre. Recognition for FFPOS Scholarships Faculties, Institutes & Divisions Topic Source of Income Fees Module/SLIMS Method of Payment At Census Dates Frequency of Income File Transfer Monthly Reporting Monthly variance reporting Project(s) Projects commencing with 09 Natural Account(s) 15002 Full Fee Paying International Student Scholarships Research Higher Degrees (RHD) International Research Higher Degree income for international students is calculated daily based on the candidates enrolment. There may be split supervision that changes over the time of the candidature, and this can affect the distribution of income. Topic Source USRS/SLIMS Method of Payment per billing period Frequency of File Transfer Bi annually Reporting Monthly variance reporting Project(s) Projects commencing with 09 Natural Account(s) 15000 Full Fee Paying International Student Fees 15002 Full Fee Paying International Scholarships Where a fee waiver scholarship is awarded for an International RHD candidate, this will reduce the tuition fee (income) attributed to the AOU. Note: currently the fees report shows income each month, however, this is indicative only and the fee is only posted to the finance system twice a year. Financial Services Page 17 of 31
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Full Fee Paying Australian Students (FFPAU) Introduction to FFPAU Students Full Fee Paying Australian Students are domestic students who are not Commonwealth supported. These students must be charged tuition fees and may be eligible for FEE HELP assistance for all or part of those tuition fees. Recognition of FFPAU Faculties, Institutes & Divisions Topic Source Fees Module/SLIMS Method of Payment At Census Dates Frequency of File Transfer Monthly Reporting Monthly variance reporting Project(s) Projects commencing with 09 Natural Account(s) 15010 Full Fee Paying Domestic Student Fees/PG Courses/Single Unit Enrolments Financial Services Page 19 of 31
Full Fee Paying Australian Student Scholarships Introduction to FFPAU Scholarships FFPAU student scholarships represent a partial or full reduction of a student s fee and are normally an internal University arrangement. Where a scholarship is awarded this reduces the tuition fee (income) received for the enrolment. The type of scholarship awarded is represented by a scholarship code, maintained by the Student Centre. Recognition of FFPAU Scholarships Faculties, Institutes & Divisions Topic Source Fees Module/SLIMS Method of Payment At Census Dates Frequency of File Transfer Monthly Reporting Monthly variance reporting Project(s) Projects commencing with 09 Natural Account(s) 15012 Full Fee Paying Domestic Scholarships FEE HELP FEE HELP is a loan scheme to assist fee paying students pay all or part of their tuition fees. Recognition of FEE HELP Central Finance CENTRAL FINANCE ONLY Topic Source DIICCSRTE HEFA Statement Method of Payment Fortnightly Reporting Monthly variance reporting Project(s) 097022 Natural Account(s) 11310 FEE HELP Topic Source Fees Module/SLIMS Method of Payment At Census Dates Frequency of File Transfer Monthly Reporting Monthly variance reporting Project(s) 097022 Natural Account(s) 15013 FFPAU Deferrals Financial Services Page 20 of 31
CENTRAL FINANCE ONLY OS HELP OS HELP is a loan available to eligible undergraduate students enrolled in a CSP who want to undertake some of their study overseas. Students may receive one loan per six month study period to a total of two OS HELP loans over their lifetime. OS HELP is managed centrally and does not impact AOU income. Student Services & Amenities Fee (SSAF) Student Services & Amenities fees will be managed centrally and directed to services appropriate to the agreement. SA HELP This is a loan to assist students to pay for all or part of their student services and amenities fee. Financial Services Page 21 of 31
Research Block Grant Income (RBG) Introduction to Research Block Grant Income Research block grant is allocated from a national fixed pool, to the University by DIICCSRTE according to a performance based formula. DIICCSRTE fund six schemes to support research within the University: Research & Research Training: Research Training Scheme (RTS): RTS is to support research training for students undertaking Research Doctorates/Masters degrees. Joint Research Engagement (JRE): The JRE program gives greater emphasis to end user research by encouraging and supporting collaborative research activities. Sustainable Research Excellence (SRE): This initiative is to address the gap in funding for the indirect costs of university research supported by category 1 Australian competitive grants 4. Research Infrastructure Block Grants (RIBG): This is intended to enhance the development and maintenance of research infrastructure. Postgraduate Research Scholarships: Australian Postgraduate Awards (APA): The APA scheme is to support postgraduate research training and to provide financial support to postgraduate students of exceptional research promise. International Postgraduate Research Scholarships (IPRS): The IPRS scheme is to attract top quality international postgraduate students to support Australia s research strength. 4 SRE consists of Base, Threshold 1 and Threshold 2, for more information on components of SRE please refer to the Vice Chancellor (Research) office. Financial Services Page 22 of 31
Research Block Grant Income: Funding Funding for each scheme may be impacted by: Research student total load Research student total completions Research income 5 Research publications Previous program payments ERA outcomes For use in RBG calculations, research income data is averaged over the two most recent years. RTS and APA grant amounts: indexes. Research income comprises 40% of the performance JRE grant amount: Research income (from category 2,3 and 4) comprises 60% of the performance index. RIBG grant amount: Only category 1 research income comprises the performance index. For further information on the internal distribution of UTAS Research Block Grants please refer to the website of the Deputy Vice Chancellor (Research). Recognition of Research Block Grant Income Faculties, Institutes & Divisions Research Block Grant Income (excluding SRE2) Topic Source of Income Australian Commonwealth Government Method of Payment DIICCSRTE Payment Statement Frequency of Income File Transfer Fortnightly Reporting Monthly variance reporting Project(s) Projects commencing with 09 Natural Account(s) 11601 11602 11606 Research Infrastructure Block Grant Research Training Scheme Joint Research Engagement Program 11607 Sustainable Research Excellence Base & Threshold 1 5 Research income is broadly categorised as: Category 1 Australian competitive grants research income Category 2 Other public sector research income Category 3 Industry and other research income Category 4 Cooperative Research Centres (CRC) research income Financial Services Page 23 of 31
Sustainable Research Excellence Threshold 2 (SRE2) Topic Source of Income Australian Commonwealth Government Method of Payment DIICCSRTE Payment Statement Frequency of Income File Transfer 2 lump sum payments Reporting Monthly variance reporting Project(s) Projects commencing with 09 Natural Account(s) 11608 Sustainable Research Excellence Threshold 2 Financial Services Page 24 of 31
Annual Budget Cycle The budget is prepared during July/August for the following year. It takes a three year view of student load. Income Calculation The budget requires the Faculties and Institutes to submit estimates of load targets for the coming three years. Income estimates are informed by: a) Enrolment load targets b) the average of the past years income history; and c) the historical funding cluster/student contribution band 6 those units of study are allocated. Income Spreading Income is spread using two different methodologies depending on the reporting requirements: Faculty and Institute Reporting: Income is spread based on historical trends e.g. estimated percentage of income received in any given month; Consolidated Reporting: Income is spread based on the historical trend of income received from DIICCSRTE and detailed in the HEFA statement. Budget: CGS CGS income is distributed to Faculties & Institutes on the basis on which it is earned. The CGS income budget is determined based on estimated load targets, historical funding cluster and AOU distributions. It is anticipated the income calculations for future budget years will be driven by load targets against courses of study. Historical trends will continue to influence the funding cluster and AOU distribution. CGS income will be pre populated in the budget model on this basis with the ability to adjust figures according to anticipated enrolment patterns. Faculties and Institutes will be required to provide load targets for designated courses of study separately in consultation with the Planning, Performance and Review Committee (PPRC). This is to ensure the University maximizes the level of CGS funding within the upper limit determined by DIICCSRTE. 6 Funding clusters and student contribution bands are determined by DIICCSRTE and have both a Commonwealth contribution amount and the maximum amount a student can pay. Clusters and bands identify broad categories of units identified by a Field of Education (FOE) code. Information on these clusters can be found on the DIICCSRTE website. The most recent cluster/banding information is attached in the Appendix. Financial Services Page 25 of 31
CGS income budgets are adjusted centrally for the impact of any DIICCSRTE Transitional Funding arrangements. Budget: HECS HECS Budget: Faculty & Institute Reporting The HECS income budget reported for Faculties, Divisions and Institutes represents the gross HECS tuition fees that can be charged based on load targets for Commonwealth Supported Students. The HECS income budget calculation is determined by the same methodology as CGS. Estimated load targets, historical student contribution bands and AOU distributions form the basis of the income calculation. As with CGS, it is anticipated that calculation of HECS income for future budget years will be driven by load targets against courses of study. Historical trends will continue to influence distribution of EFTSL across student contribution bands and AOU. HECS income budget estimates will be pre populated in the budget model on this basis, with the ability to adjust figures according to anticipated enrolment patterns. HECS Budget: Consolidated Reporting For University budget reporting an estimate is made in relation to the portion of students likely to defer payment of HECS tuition fees under the HECS Higher Education Loan Program (HELP). The University receives funding from the Commonwealth for any deferred tuition fees under this program. Budget: HECS Fee Waiver Scholarships HECS Fee Waiver Scholarships represent a reduction in the tuition fee (income) and are identified by a Fee Waiver Scholarship code. Estimates for fee waiver scholarships are currently based on historical trends. Faculties and Institutes will be responsible for determining the level of fee waiver scholarships to be offered based on the objectives of the Faculty/Institute and overall University strategic priorities. Financial Services Page 26 of 31
Budget: Full Fee Paying Overseas Students (FFPOS) Budget: Onshore Full Fee Paying Overseas Students (FFPOS) Calculation of the FFPOS income budget is currently based on load targets, historical trends, and allows for indexation in course fees. As with CGS and HECS future income budget calculations will be based on load targets at a course level. Tuition fees for courses of study will be determined by the Faculty/Institute in consultation with the Senior Management Team. Budget: Offshore Full Fee Paying Overseas Students (FFPOS) Transnational Education Program load targets are to be agreed between the TNE Program Manager and each Faculty/Institute as part of the budget process. Calculation of budgeted income is based on load targets and the terms of the individual agreements held with offshore providers. Budget: Higher Degree Research International Students HDR load targets and fee waiver scholarships will be discussed and agreed between the Dean of Graduate Research and each Faculty/Institute as part of the annual planning cycle and will be aligned with the strategic direction of the University. Budget: FFPOS Fee Waiver Scholarships FFPOS Fee Waiver Scholarships represent a reduction in the tuition fee (income). Budget estimates for FFPOS Fee Waiver Scholarship are based on historical trends. Faculties and Institutes will be responsible for determining the level of fee waiver scholarships to be offered based on the objectives of the Faculty/Institute and overall University strategic priorities. Budget: Full Fee Paying Australian Students (FFPAU) Income budgets for Full Fee Paying Domestic Students will continue to be driven by load targets. Load targets are to be determined based on course of study with the Faculty/Institute responsible for reviewing tuition fees and the level of fee waiver scholarships to be awarded. Financial Services Page 27 of 31
Budget: Research Block Grant Funding (RBG) The University estimates the level of funding for Research Block Grant Programs expected for future years. Budget income for Research Block Grant is then distributed to Faculties, Institutes and Divisions determined by a research performance based formula calculated annually by the Office of Research. The internal performance based formula contains the same elements as are used by DIICCSRTE, however the weights given internally to each element differ from the DIICCSRTE model, to encourage the broadening of research performance. Note: The internal distribution of Block Grant Funding is currently under review and the distribution method may change during the 2013 budget process. Financial Services Page 28 of 31
Relevant Policy Document This guideline is not directly governed by a policy Other Related Documents Process Guidelines Budget Process Guidelines Budget Working Group Terms of Reference Operational Guidelines and Supporting Documents DIICCSRTE CSP Rates Table for 2014 Links www.deewr.gov.au www.innovation.gov.au About this Document Title Guidelines for the recognition of Teaching & Block Grant Income Date June 2012 Responsible Officer Chief Financial Officer Name Craig Barling Review Cycle 1 year Status of version Draft Author(s) Julie Morrison, Nadyne Russell, Tricia Minck Financial Services Page 29 of 31
Appendix A: Acronyms Term/Acronym AGI AOU APA ARC CDP CGS CSP DEEWR DIICCSRTE EIF EFTSL FFPOS FFPAU FOE HECS HEFA HEIMS IPRS JRE RBG RHD RIBG RTS SLIMS SRE SSAF USRS Meaning Australian Government Income Academic Organisational Unit Australian Postgraduate Award Australian Research Council Capital Development Pool Commonwealth Grant Scheme Commonwealth Supported Place Department of Education, Employment and Workplace Relations Department of Industry, Innovations, Climate Change, Science, Research and Tertiary Education Education Investment Fund Equivalent Full Time Student Load Full Fee Paying Overseas Student Full Fee Paying Australian Student Field of Education Higher Education Contribution Scheme Higher Education Funding Agreement Higher Education Information Management System International Postgraduate Research Scholarships Joint Research Engagement Research Block Grant Research Higher Degree Research Infrastructure Block Grant Funding Research Training Scheme Student Lifecycle Information Management and Services Project Sustainable Research Excellence Student Services and Amenities Fee University Student Records System Financial Services Page 30 of 31
Appendix B: Definitions Term/Acronym AOU Bandings Clusters CSP Designated Non Designated Enabling Loading Medical Student Loading Regional Loading Transitional Loading This is a three alpha code in the Student Management System to identify the budget centre fee income is attributed to DIICCSRTE grouping for units within a Field of Education (FOE) which determines the maximum contribution a student pays for a unit DIICCSRTE grouping for units within a Field of Education (FOE) which determine the CGS income to be paid by the Australian Government Determined by Higher Education Support Act (HESA) to identify units that are eligible for CGS and HECS A university receives a specific number of capped (designated places) for postgraduate, pre degree and associate degree courses. Once this cap is exceeded, there is no further CSP funding. All undergraduate (bachelor) places (excluding medicine) receive full CSP funding. Additional CGS funding to assist with the costs of providing enabling courses Additional CGS funding for CSPs in a medicine course of study, which on completion allows for provisional registration as a medical practitioner Additional CGS funding for regional campuses to meet the higher costs associated with their size and location Additional funding to compensate for the reduction in the maximum student contribution amount to the lowest priority rate Financial Services Page 31 of 31