Regulatory framework

Securing student success: Regulatory framework for higher education in England


Last updated: 24 November 2022

Condition G2: Compliance with terms and conditions of financial support

Condition G2: The provider must comply with any terms and conditions attached to financial support received from the OfS and UKRI under sections 41(1) and/or 94(2) of HERA. A breach of such terms and conditions will be a breach of this condition of registration.

Summary

Applies to: All registered providers in receipt of financial support from the OfS or from UKRI.

Initial or ongoing condition: ongoing condition.

Legal basis: sections 5, 41(1) and 94(2) of HERA.

Notes

504.

Section 41(1) of HERA allows the OfS to impose terms and conditions of funding, and section 94(2) of HERA allows UKRI to impose terms and conditions of funding. These are separate from, and in addition to, the conditions of registration applicable to a registered provider.

Guidance

505.

‘Terms and conditions’ means the content of the document(s) setting out the requirements placed on financial support, whether grant, loan or other payment, provided under sections 39, 40 and 93 of HERA which may relate to the specific or general uses of this funding. Terms and conditions will be set out by the OfS or UKRI when it makes funding allocations.

506.

In judging whether a provider has complied with any terms and conditions attached to financial support received from the OfS and UKRI under sections 41(1) and/or 94(2) of HERA, material that the OfS may consider includes:

a.

Any breaches of the terms and conditions applied to the financial support received by the provider.

b.

The actions taken by the provider to ensure that terms and conditions are not breached.

c.

The provider’s management and governance arrangements that ensure that the public interest governance principles applicable to providers in receipt of financial support are delivered in practice.

Assessment

507.

If a provider fails to comply with the terms and conditions of financial support provided by the OfS or by UKRI, the OfS may request further information from UKRI or from the provider to enable it to investigate and take appropriate action if required. The terms and conditions may include information about any actions that may be taken in response to a breach.

508.

Where the OfS is satisfied that a breach of terms and conditions of financial support has occurred, it will also consider the steps it should take in response to the corresponding breach of this condition of registration. Such action may include, but not be limited to enhanced monitoring, for example to ensure closer scrutiny of future use of financial support, or the imposition of a specific condition of registration to require specific actions to support the delivery of funded projects such as the appointment of staff or implementation of an action plan. In cases of more serious mismanagement of financial support, the OfS may also impose a specific condition to restrict a provider’s future eligibility for financial support.

Behaviours

509.

The following are non-exhaustive examples of behaviours that may indicate compliance with this condition. The provider:

  • complies with any terms and conditions attached to the financial support it receives
  • has management and governance arrangements that are adequate and effective to ensure regularity, propriety and value for money.
510.

The following are non-exhaustive examples of behaviours that may indicate non-compliance with this condition. The provider:

  • fails to comply with any terms and conditions attached to the financial support it receives
  • has management and governance arrangements that are not adequate or effective to ensure regularity, propriety and value for money.

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