EXPLANATORY STATEMENT
Direction pursuant to subsection 40(4) of the Higher Education Endowment Fund Act 2007
Direction No. 1 of 2008
Issued by the authority of the Minister for Education and the Minister for Innovation, Industry, Science and Research
Purpose of the Determination
Subsection 40(4) of the Higher Education Endowment Fund Act 2007 (the HEEF Act) provides that the Education Minister may give the Advisory Board written directions as to:
(a) the way in which the Advisory Board is to carry out its function; and
(b) procedures to be followed in relation to meetings.
Under subsection 40(5) of the Act, a direction is a legislative instrument.
Summary
This Direction provides for the Minister for Education and the Minister for Innovation, Industry, Science and Research to issue directions to the Higher Education Endowment Fund Advisory Board on how it is to conduct the 2009 Funding Round. The details for this are provided in the Schedule to the directions titled Application and Assessment Procedures for the 2009 Funding Round.
Under subsection 41(1) of the Act, the Board’s function is to advise the Ministers about matters referred to the Board by the Ministers.
Authority
This Direction is issued by the Minister for Education and the Minister for Innovation, Industry, Science and Research.
Section 5 of the HEEF Act defines the “Education Minister” to mean the Minister responsible for administering the Higher Education Support Act 2003 (the “HESA”).
The Administrative Arrangements Order made by the Governor-General on 25 January 2008 provides that the HEEF Act is administered by:
- the Minister for Education, except to the extent that the HEEF Act is administered by the Minister for Innovation, Industry, Science and Research; and
- the Minister for Innovation, Industry, Science and Research in so far as that responsibility relates to the making grants of financial assistance in relation to research facilities.
As such both Ministers have responsibility for the HEEF Act and the Direction is jointly issued.
Description of the instrument
The object of this instrument is to give directions to the Higher Education Endowment Fund Advisory Board as to the Application and Assessment Procedures that the Board must apply and comply with in carrying out its function under the Act.
The Application and Assessment Procedures are summarised below:
- A two stage assessment process will be used.
- Stage 1, the Expression of Interest (EoI) stage is to short list promising proposals to procede to Stage 2, after Ministerial approval.
- Stage 2, the Application stage is to recommend projects to Ministers for approval.
- The Advisory Board will consider applications and make recommendations to the Ministers to authorise or refuse to authorise a grant of financial assistance to applicants.
- Eligible higher education institutions, Table A and Table B providers as defined by HESA, may submit no more than two EoI proposals.
- There are seven principles that will be used to identify applications for recommendation to Ministers. The principles cover the following broad areas: expected impacts; strategic relevance, desired collaboration and co-investment; and required capabilities.
- The HEEF Advisory Board may seek advice to inform their recommendations from: Australian, state and territory Government agencies or officials; contracted professionals to assist in discerning the accuracy and relevance; and the HEEF expert panel which comprises experts in the discipline area(s) of applications.
Explanation of provisions
Section 1 – Introduction
The purpose of the Application and Assessment Procedures is to assist eligible higher education institutions to apply for funding through the Higher Education Endowment Fund Grants Program 2009 Funding Round.
The desired outcomes of the HEEF Program include:
- a world class Australian higher education sector;
- enhanced teaching, learning, research and research training in areas of national, international and regional significance;
- increased quality and accessibility of the facilities available for researchers and teachers across the higher education sector;
- advancement of strengths and niche centres of excellence within institutions;
- enhanced critical mass;
- greater international engagement and stronger participation in international linkages and collaborations;
- economic, social and environmental benefits to Australia.
$304 million in funding will be available for the 2009 Funding Round.
The Advisory Board will use investment principles to identify strategically-focused investments that can be recommended to Ministers for funding in summary, the principles consider:
- expected impacts;
- strategic relevance,
- desired collaboration and co-investment; and
- required capabilities.
Section 2 – Overview of Processes
- A two stage assessment process will be used with funding rounds to be held on an annual basis.
- For the 2009 funding round, eligible higher education institutions, Table A and Table B providers as defined by HESA, may submit no more than two EoI proposals.
- Stage 1, the Expression of Interest (EoI) stage is to short list promising proposals to proceed to Stage 2, after Ministerial approval.
- Stage 2, the Application stage is to recommend projects to Ministers for approval.
- The Advisory Board will consider applications and make recommendations to the Ministers to authorise or refuse to authorise a grant of financial assistance to applicants.
Section 2.3 sets out the roles and responsibilities for:
- the Ministers,
- the Advisory Board – which is to consider applications for grants of financial assistance from eligible higher education institutions and make recommendations to the Ministers,
- the HEEF Expert Panel – which is to provide advice to the HEEF Advisory Board from the perspective of discipline areas covered by proposals for the 2009 funding round; and
- the Departments.
Section 3 sets out in more detail stage 1 of the application process. Stage 1 is the expression of interest stage. Section 3 explains how the expressions of interest will be assessed and selected and how the application is to be submitted. Expressions of interest will be sought so that the Advisory Board can receive information about the nature of proposals, the outcomes they will deliver and how they address the principles outlined in section 1.5.
The Advisory Board will make recommendations to the Ministers about which expressions of interest should be short listed for consideration in stage 2. The Ministers will decide the shortlist and those short listed will be invited to prepare an application for consideration in stage 2.
Section 4 sets out in more detail stage 2 of the application process. Stage 2 is the application stage. Section 4 explains that the applications will be assessed by the Advisory Board.
The Advisory Board may also seek expert advice if required; seek additional information from applicants by way of written submissions or interviews or site visits. The Advisory Board will recommend to Ministers preferred projects. The Ministers will then decide whether to approve or not approve those recommendations.
Applicants must put forward a business case which includes strategic assessment, an implementation plan, a risk management strategy and financial plan. Applications, if successful, will be required to sign funding agreements with the Commonwealth.
Section 5 sets out information about funding and budget issues to assist applicants develop their applications. Section 5.2 provides information about funding agreements and section 5.3 sets out the performance reporting requirements that will be specified in funding agreements. These requirements will be tailored to suit individual projects.
Section 6 sets out other information for applicants. This section covers:
- confidential information – clarifies that if an applicant considers that information in its EoI or application should be treated as confidential it must indicate that information to DEEWR and provide reasons for the request but DEEWR can accept or refuse a request;
- the Privacy Act 1998 – confirms that DEEWR is bound by the Privacy Act 1998 and persons, bodies and organisations involved in the HEEF program must abide by the Information Privacy Principles and the Privacy Act when handling personal information;
- privacy complaints and advice – complaints about breaches of privacy and requests for advice should be referred to DEEWR or to the Federal Privacy Commissioner.
- freedom of information – all documents created by the departments with regard to HEEF are subject to the Freedom of Information Act 1982.
- review of decisions – applicants may be able to seek judicial review of decisions under the Administrative Decisions (Judicial Review) Act 1977 or the common law but should seek their own legal advice.
Consultation
The Higher Education Endowment Fund Advisory Board, supported by the Department of Education, Employment and Workplace Relations, has consulted widely with the higher education sector, state and territory governments and other interest parties in developing the Application and Assessment Procedures for the 2009 Funding Round as the basis for assessing and making recommendations to Ministers.
Public consultation was undertaken in two phases.
A consultation paper was released in October 2007 which sought input from the higher education sector, and other interested stakeholders, on issues including: selection criteria; relationships to existing programs; and selection process issues including funding limits and frequency of funding rounds. Fourty-five written submissions were received in response to this paper. The Chair of the HEEF Advisory Board also conducted a series of meetings with Vice Chancellors across the country. On the basis of responses received a set of draft procedures were developed and approved for public release by Ministers.
The Draft procedures were publicly released in March 2008. Written comments were invited and open forums were held in all capital cities and Townsville. Meetings were also held with Vice Chancellors and state and territory governments. The general response to the procedures, and the consultation process itself, was very positive.
The comments provided by these stakeholder groups and others were considered by the HEEF Advisory Board in finalising the Procedures provided to Ministers for approval. For the most part the suggested changes were addressed through refinement of the language used in the draft Procedures.
Business Cost Calculator
This Direction does not require a Regulatory Impact Statement (RIS) or a Business Cost Calculator Figure. This Direction is not regulatory in nature and will not impact on business activity and will have no compliance costs of competition impact.