Institutional sustainability and governance

SFC is a Non-Departmental Public Body of the Scottish Government. The relationship between SFC and the Scottish Government is governed by a Framework Document [PDF] agreed in July 2018.

Financial Memorandum

The Financial Memoranda with colleges and universities set out the formal accountability relationship between SFC and institutions, and the requirements that institutions are expected to comply with in return for funding.

The Memoranda are an important part of the governance framework within which SFC and institutions operate and they ensure that we are able to meet our statutory duties in relation to the Public Finance and Accountability (Scotland) Act 2000 and other legislation.  

• Financial Memorandum with Higher Education institutions [PDF]
• Financial Memorandum with the College Sector [PDF]

Mandatory requirements

The Memoranda make reference to further documents which set out detailed mandatory requirements:

• Statement of Recommended Practice for Further and Higher Education (SORP)
• Good practice in college governance (SFC guidance and Code of Good Governance for Scotland's Colleges)
• Good practice in HE governance
  • Scottish Code of Good HE Governance 2017
  • SFC Guidance - Good Practice in University Sector Governance [PDF]
  • Scottish Code of Good HE Governance 2013

Disposal of Exchequer Funded Assets

• Universities
• Colleges who are looking to dispose of any property should contact Andrew Millar, email: amillar@sfc.ac.uk as soon as possible.

Accounts Direction

• Accounts direction for Scotland’s universities 2020-21
• Accounts direction for Scotland’s colleges 2020-21

Incorporated colleges only

• Scottish Public Finance Manual
• Severance Schemes & Settlement Agreements
• Financial Reporting Manual (FREM)
• Consolidated Budgeting Guidance (CBG)

Universities and non-incorporated colleges

Guidance on severance arrangements for universities [PDF] and non-incorporated colleges [PDF] are included in the Financial Memoranda.