Financial management
Financial Memorandum Part 1 with Colleges
The Financial Memorandum Part 1 which sets out the general conditions of funding for FE corporations has been revised to align with the recent legislative changes to the powers and duties of colleges (through the Education Act 2011), which will be effective from 1 April 2012.
The revised version of the FM Part 1 is also simpler and clearer.
The decision of the Office for National Statistics (ONS) to reclassify colleges to the private sector is based on implementation of the new version of the FM Part 1 from 1 April 2012. This means that although we would normally expect to consult colleges on the revisions prior to implementation we have only been able to seek feedback from Association of Colleges (AoC) at this stage.
We intend to issue the new version to colleges as soon as practicable and depending on the responses will make further revisions if necessary for 1 August 2012.
This document covers Skills Funding Agency funding and sponsorship of the general Further Education sector but not necessarily general conditions of funding for Young People’s funding which are covered in the Financial Memorandum issued in 2006 and set out the financial relationship between the Learning and Skills Council and colleges.
