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    Lump sum system under scrutiny

    Recently the Minister of OCW announced that the Reporting Regulations for education might be revised effective from 1 January 2014. The objective is to allow for better comparison between the spending of educational organisations on (i) the primary process, (ii) support and (iii) accommodation.

    Today, funding in education is based on lump sum financing. The current government grant is not earmarked for specific items. Educational organisations are free to spend the funding they obtain, provided they do so with education in mind and the quality of that education satisfies the statutory criteria. This system was introduced in the eighties and has the advantage that educational organisations can decide autonomously what they need. The organisations render overall account for their spending.

    Early 2013 the Lower House asked questions about the extent to which educational organisations actually spend the government grant on the primary process and whether not the bulk of the funding was applied towards support and/or accommodation. A recent letter from the Minister of OCW showed he shared those concerns and advocates increased insight into the proportion of the different items to each other.

    This is expected to result in stricter reporting regulations effective from 
    1 January 2014. It will also allow the Education Inspectorate to assess more rapidly how effective specific expenses may be.

    For more information, please contact our Knowledge & Education team.