FE & HE Digest

2022/2023 has already been quite an eventful year for the Further Education sector, not just as a result of the Office for Students reclassification in November; we are also starting to see macro-economic issues adversely affecting a number of providers, with some struggling to recruit and retain apprenticeships whilst others are trying to boost the numbers of students going through the T Level provision.

If these matters were not enough, a number of providers are about to or already have come to the end of utility contracts, meaning the full effect of cost increases are starting to hit the bottom line. Staff recruitment and retention also remains a challenge, with pay settlements being a top priority for unions.

In this environment we are seeing more and more colleges starting to look at their financial position and consider setting formal reserves policies to help governors ensure the finances of the institution can support its strategic direction, as well as allowing governors greater oversight.

In this edition of FE/HE Digest we provide an overview of what we believe makes for a good reserves policy. We also report on the recently published College Accounts Direction and Post 16 Audit Code of Practice.

As ever, if there are any points you wish to discuss further in this issue, please do not hesitate to contact a member of our specialist team.