FM 103
Date of issue: 29 August 2000

PLANNING, REPORTING AND BIDDING CYCLE

PURPOSE OF THE FM

PLANNING CYCLE

• a Strategic Plan, including scenario-setting to lead into bids for funding, produced every two years with possible update in mid years;
• a detailed Operating Plan after the announcement of Science Budget allocations to the Research Councils, which details precisely how the allocation is to be used; and
• an Operating Report setting out how the funds have been used.

• Annex A shows a typical Research Council three year planning and reporting cycle.

DRAFT STRATEGIC PLAN

3.    The purpose of the Strategic Plan is to set out PPARC's long term vision, aims and objectives, and to measure/report progress thereby providing a strategic framework against which allocations advice can be developed.

5.    The Strategic Plan is intended to be more qualitative than quantitative, although it might include some key quantitative targets. The Strategic Plan includes the following:

• plans for scientific reprioritisation (emphasising areas of high potential and importance, and identifying areas of high priority and scientific excellence);
• plans for future funding policy (eg the split between grants and studentships);
• plans for organisational and business process development;
• a longer term 'vision' (eg the structure of PPARC and its Establishments);
• qualitative scenario setting;
• set of critical success factors (and possibly a very small number of key measurable, high-level performance indicators).

THE FINAL STRATEGIC PLAN

6.     The Strategic Plan can only be finalised once the allocations advice has been announced. It is published by the end of February immediately before the intended planning period

BIDS FOR FUNDING

7.     Bids for funding are required according to the timetable laid down by Treasury. The means of achieving this is the bilateral discussions between the Chief Executive and the Director General of the Research Councils. This process applies to not only bidding for additional funds but also defending current research and identifying new high priority programmes/projects. Minor revisions take place to the sums allocated during the course of the year as a result of new initiatives and unexpectedly available funds. The format is as specified by the OST on a year by year basis.

OPERATING PLAN

9.    The Operating Plan is produced every three years at the start of the first year of the Spending Review (SR) period, following the announcement of the three yearly budget allocations. It is required to be ready by the start of the financial year at the beginning of the period therefore it is normally submitted to the OST during February, with OST's agreement obtained by the end of March. Interim Operating Plans are normally in the form of an update rather than full revisions. Operating Plans are produced on the basis of planning assumptions agreed by the OST.

10.    The Operating Plan does not contain historical information other than that which is directly relevant to the plans and targets for the period in question. It is important for the Operating Plan to give an indication of the direction and trend of all targets. The Operating Plan includes:

• Executive Summary
• PPARC Mission Statement and Corporate Objectives
• Financial Framework
• Research Programme
• Organisational Development and Change
• Financial Framework Tables (format as dictated by the OST)

11.    Advice and requirements are formally set out by OST.  Administration costs need to be fully integrated into the Operating Plan.

THE OPERATING REPORT

12.    The purpose of the Operating Report is to report progress against Operating Plan plans and targets and provide details of relevant events during the year.

14.     The Operating Report includes:

• achievements, progress and shortfalls against the Operating Plan, together with explanations of significant variations from the plan;

• PPARC specific statistical and financial tables showing the planned year as per the Operating Plan, as allocated and actual year;

• standard statistical tables showing actual against planned in the previous Operating Plan and as allocated which includes adjustments in relation to previous year's cashflow;

THE ANNUAL REPORT AND ACCOUNTS

16.     The Annual Report and Accounts is a largely qualitative glossy summary of the major achievements and milestones of PPARC for the previous year, with clear and explicit links to the Strategic Plan. The Accounts must be produced according to standard guidance and certified by the Comptroller and Auditor General (see FM 105 for further information about the Annual Accounts).

QUERIES

17.     Any queries concerning the content or interpretation of this FM should be referred to Paul Blackford, Head, Planning and Budgeting, Finance Division, Swindon Office, tel: 01793 442062, e-mail: paul.blackford@pparc.ac.uk .

Annex A to FM 103

Last updated 20 August 2001