1. BFUG Thematic Session Financing of Higher Education Current Developments in Ireland

2. Irish HE System Ministry Department of Education and Skills Intermediary Funding Agency Higher Education Authority 7 Universities 14 Institutes of Technology Total of 39 publically funded institutions

3. Sources of Funding Main Sources of State Funding 2011 -  Core grant (DES) - €718m  Competitive research grants (All) - €346m  Capital (All) - €198m  Access Initiatives (DES) - €360m

4. Allocation of core funding  Allocation of core funding to institutions is the responsibility of the Higher Education Authority  HEA Funding model in place since 2006 for Universities and 2009 for Institutes of Technology  Formula-based allocation model; based on student numbers with different weightings for disciplines and cycles  Funding allocated as a “block grant” to each HEI, internal allocation a matter for the institution  Model regarded as fair, simple, consistent and transparent but also lacking reward for performance

5. The main Drivers of Change in Irish Higher Education Policy o Demographics o Macroeconomic and Funding Pressures o A concern with quality o Changes to the global environment for Higher Education o Requirement for more integrated responses to key national agendas o Devising and implementing new ways of delivering quality public services under the Public Service Reform Plan 5

6. The Irish Higher Education Sector in Recent Years Some Key Numbers State Funding – Grant & Fees to IoTs, Universities & Designated Colleges Year €m 2009€1,318 2010€1,194 2011€1,177 2012€1,118 2013€1,012 2014€938 Student Numbers IoTs, Universities, Other Colleges Full-Time Part- Time Full & Part- Time 2008/09146,98139,278186,259 2012/13164,79939,082203,881 % Change12.1% F/T growing to 187,000 by 2020. -0.5%9.5% Staffing Numbers IoTs, Universities, Other Colleges Year 200818,934 201217,140 % Difference-11%

7. Context and background to reforms  National Strategy for Higher Education to 2030 published in 2011 recommended a new relationship between the State and HEIs based on enhanced accountability and a greater focus on performance.  Development of a performance framework for the sector articulating Government priorities, key system objectives and corresponding indicators and international benchmarks for the short to medium term.  A new “strategic dialogue” process between the HEA and HEIs cumulating in the agreement of performance contracts with each HEI. System objectives will inform institutional KPIs in performance compacts. An element of core funding will be allocated on the basis of performance against agreed KPIs.  HEA to report back to the Minister on an annual basis on the performance of the system.

8. How will we know we are achieving the right outcomes within higher education? SYSTEM LEVEL INSTITUTIONAL LEVEL Performanc e Funding Institutional KPIs Performanc e Compacts Strategic Dialogue Annual System Report Monitoring Indicators High Level System Indicators Key System Objectives National Priorities

9. Performance Framework 2014-2016 7 Key System Objectives

10. Key System Objective 1 Skills and Engagement No.High level indicatorSub-indicators 1.1Progress towards National Reform Plan EU2020 target of 60% tertiary attainment rate for 30-34 year olds by 2020 Annual direct/late entry participation rate 1.2Employer satisfaction rates with graduatesNational level rates Regional level rates 1.3Employer satisfaction rates with HEI collaboration with enterprise National level rates Regional level rates 1.4Trends in graduate employment ratesEmployment rates for undergraduates and postgraduates 1.5Graduate outflow from STEM Disciplines – progress against ICT Action Plan target of doubling graduate outflow by 2018 Sub targets from ICT Action Plan CAO acceptances and applications Graduates from MST/STEM 1.6Profile of graduate outflow by disciplineNumber and % of graduates by level and discipline

11. System Objective 2 Access and Transition No.High Level IndicatorsSub-indicators 2.1Progress towards target entry rates in 2013 National Access Plan Target entry routes for socio- economic groups And for other under- represented groups 2.2Changes in numbers and proportions of entrants from non-traditional routes Numbers and proportions entering from FE Sector and through RPL 2.3Increased numbers of part-time options and flexible learning options in HEIs Number of students on part- time or flexible/springboard programmes 2.4Higher education persistence and completion rates for under-represented groups Progression from 1 st year and completion rates for socio- economic and under- represented groups

12. Key system objective 3 Quality Student Experience Indicators No.High Level IndicatorsSub-indicators 3.1Quality Assurances procedures in line with international best practice Internal QA External QA 3.2Student Engagement and satisfaction scoresStudent engagement and satisfaction scores national and regional levels 3.3Trend in progression rates from 1 st year into 2 nd year Progression rates national, sectors, HEI, discipline and level of programme 3.4Progress against commitment to reduce number of level 8 programmes and broaden entry routes Number of CAO programmes national, sectors, HEI 3.5Student-staff ratioSystem/sector

13. System objective 4 Research and Innovation Indicators No.High Level IndicatorSub-indicators 4.1Growth in HERDHERD private:public ratio 4.2Increase in proportion of HE research income from non-exchequer investment Enterprise EU Philanthropic 4.3Maintain National Citation RankingNumber of publications and % share of world output 4.4Increased collaborations with enterpriseNo. of active collaborations PhD placements 4.5Increase in commercialisation activityNumber of HEI spinouts Number of licensing agreements 4.6Proportion of PhDs on structured PhD programmes Enrolments Graduates 4.7Activity aligned with priority areasProportion of GBOARD PhD Numbers

14. System objective 5 Internationalisation Indicators No.High Level indicatorSub-indicators 5.1Level of alignment of higher education international activity with the national Trade, Tourism and Investment strategy No. of graduates with languages in priority markets HEI support to companies exporting to new markets Evidence of alumni/diaspora links in priority markets No. of students from priority markets 5.2Proportion of overall student body of international students – progress towards 15% national target (subject to international education strategy review) in system overall No. of enrolments of international students 5.3Increased level of mobility and international experience of students, researchers and staff Number of outgoing Erasmus students No. of Marie Curie researchers No. of international and internationally experienced staff in HE System 5.4Extent and trend of transnational activityNo. of branch campuses/articulation agreements/joint awards/international online programmes No. of student exchange – outward and inward

15. System objective 6 Landscape Reform and Diversity indicators No.High Level IndicatorSub-indicators 6.1Coverage of higher education programmes by level in regional clusters Coverage of level 6/7 /8 programmes within regional clusters by HEI/Sector 6.2Number of collaborative programmes between HEIs and common modules between programmes Numbers of postgraduate collaborative programmes and students Numbers of undergraduate collaborative programmes and students Number of common modules between programmes 6.3Level of HEI research collaborationNumber of co-publications Number of research funding awards 6.4Proportion of student population in private HEISEnrolments in private colleges 6.5Progress against agreed milestones and timeframe of implementation of landscape process Technological university designation process Regional cluster development process

16. System objective 7 Public Sector Reform Indicators No.High Level IndicatorsSub-indicators 7.1Level of efficiency gained and savings achieved through implementation of reform initiatives in line with Government policy Savings achieved through: Shared services External service delivery models Property management Centralised procurement 7.2Level of utilisation of HEI facilities 7.3Relative unit costsHEI/Sector/Graduate

17. Institutional Performance Compacts  National priorities and key system objectives for 2014-2016 period agreed by Government in May 2013. This were developed by the Ministry in consultation with the HEA. There was not a consultative process with HEIs.  The framework set the basis for dialogue between the HEA and HEIs, with each HEI required to demonstrate how it would contribute to the achievement of national objectives.  Ongoing dialogue for 9 months, leading to the agreement of performance contracts between the HEA and each HEI in March/April 2014.  2014 pilot year, 3 year rolling period

18. Performance Funding  Performance funding element will be introduced in 2015  Up to 10% of core funding will be performance related  90% will continue to be allocated on the basis of current allocation model  System design to be finalised  Should the performance related funding be used to incentivise or penalise institutions?  What are other countries experiences with performance funding