How we regulate financial sustainability within higher education

Higher education providers that are registered with us must be financially viable and sustainable. To ensure this, we require regular information about their financial performance and position.

Submit financial returns

We require timely information from providers to understand their latest financial performance and position. We gather this information through:

• an annual financial return, which includes data about their recent and forecast financial performance and position
• additional requests for information throughout the year as required.

We use this data, along with other sources such as reportable events or notifications, to understand individual providers’ finances and to examine the financial health of the higher education sector as a whole.

Guidance for providers on the annual financial return

Report financial risks

Institutions are required to report material adverse events to us, for example if there is a significant financial downturn or if they forecast low levels of cash.

The report should include updated financial and student number forecast tables, a commentary to explain the changes and any mitigating actions a provider is taking to address the changes (if relevant).

We will continue to ask universities and colleges facing large or complex financial risks to submit information about their cashflow more regularly.

Guidance on reportable events

Engage with the OfS

When we need to gain a more thorough understanding about a provider’s financial situation, we will reach out to them and provide support. We may also support an institution to take necessary action to improve its financial position in order to protect students’ interests.

It's also important that providers in financial difficulty let us know as soon as possible, so we can work effectively together from an early stage to protect the interests of students.