Managing Money in Colleges

Colleges spend more than £2 billion on supplies and services each year. Operating in a complex environment, they need to show their students and the public that they are using their money legally and efficiently.

Teachers' Pension Scheme (TPS)

DfE's TPS actuarial valuation published in 2014 included a justification for the increase in employer contributions from 14.1% to 16.48% in September 2015. The valuation was performed by the Government Actuary Department (GAD) and assesses that the scheme has liabilities of £191 billion as at 31 July 2012, which is an increase of 63% in eight years. TPS is an unfunded scheme but GAD calculates "notional assets" based on contributions and concludes that the funding level is 92%. Lower interest rates and optimistic assumptions about future salary growth in the 2020s contribute to this judgement. GAD report that savings have been made from recent TPS reforms but these are clearly not enough to maintain employer contributions at current levels. A note explaining the valuation is below.

AoC note on TPS valuation June 2014 (PDF,166.88 KB)

Sub-Contracting Guidance

AoC, AELP (the Association of Employment and Learning Providers) and LSIS (an improvement agency which was closed down in 2013) produced a publication in January 2013 which provides guidance on supply chain managment in further education

AoC AELP LSIS Supply Chain Management Guidance 2013 (PDF,853.7 KB)

Copyright Guide for Colleges

This guide was commissioned by AoC from Scotland's Colleges copyright advisor, Alan Rae, to help colleges navigate the complex territory of copyright and intellectual property licences. The document was published in September 2013 and is available for general advice. It is not a statement of the law.

Copyright Guideline Dec2015.pdf (PDF,629.78 KB)

Shared Services

Colleges have developed a number of different models for organising their activities and sharing services. The overall aim has been to innovate, to improve efficiency and to ensure that they are better able to teach people and engage with employers. Government provided funding for a series of projects which tested new models of delivery to provide outcomes that can be shared and replicated for the sector.

There is information on federal structures, collaboration, shared curriculum and legalities associated with developing new models of delivery on the Shared Services section.