Institutional autonomy,regulatory frameworks and incentives

Enora Bennetot PruvotProgramme Manager

Governance, Autonomy & Funding

“Governance and Diversification of Funding in Higher Education”

University of Cyprus09.03.2011

Key questions

What exactly do we mean by autonomy?

What is the link between autonomy and income diversification?

How does Cyprus compare to the rest of Europe?

What do universities want public authorities to do?

Recommendations for improved frameworks

An example of smart funding incentive

Four dimensions of autonomy

…3…

Autonomy, a pre-requisite for income

diversificaton

Positive correlation between autonomy and diversification:

• Financial autonomy is key to allow university to develop partnerships, borrow money, keep surpluses

• Staffing autonomy is key to recruit the adequate staff profiles

BUT: Holistic reforms needed, accompanied with appropriate support for skills and structure development

Autonomy Scorecardoverall autonomy

1

3

2

4

Financial autonomy indicators

Financial autonomy indicator Cyprus

Funding cycle

Funding modalities

Yearly cycle

Line-item budget

Ability to keep surplus on main public funding

No ability to keep surplus

Ability to borrow money on financial market

Yes, with approval on amount & terms

Ability to own buildings Yes but sale only on approval

Ability to charge tuition fees Level set by external authority

What can public authorities do?

Recommendations

Improve framework conditions

Governance structures: universities need to be able to modify the organisation of their governing bodies

The inclusion of external stakeholders may foster the development of long-term partnerships

Appropriate skills and representation on Governing Bodies: possiblity to decide on selection of members, especially when external?

Inadequate or inflexible governance structures are a reason for creating separate legal entities

Recommendations

Improve funding modalities: Simplification of funding schemes Funding on a full cost basis

Implement smart funding incentives: Matched funding schemes: instrument with much potential, under-

used in Europe

• Support the development of full costing in universities

Recommendations

Support leadership development and professionalisation of management

HR: support functions (research support and administration; fundraising experts; knowledge transfer officers, etc)

Leadership: exchange programmes, professionalisation schemes, professional events

An example of smart funding incentive

The Norwegian Donation Reinforcement Programme

Matching government funds (25%) for donations for basic research

Adopted by Norwegian Parliament in June 2005; effective in National Budget of 2006

Guidelines altered June 2008

For: Norwegian universities Norwegian university colleges that award doctorates The Norwegian Academy of Science and Letters The Research Council of Norway

Conditions of the Donation Reinforcement Programme

Who can donate?

Foundations and charities (from 2007)

Enterprises (from 2006)

Private individuals (from 2006)

Which donations qualify?

Donations for long-term basic research

Cannot fund research directly benefiting donor’s business activities

Must be at least NOK 3 million (€ 0,35 million)