Modul de formare-Managementul resurselor financiare - uefiscdi

onuses depending on the field of study, the student status and the rank of the higher education
institution.
Thus, the financing of a student is calculated by dividing all funds available for education
funding (grants allocated by the Higher Education Funding Council plus the subsidies granted
to cover school fees) to the total number of equivalent students. This rate of funding (grant +
subsidies) is called the basic price.
Thus, the standard resource for a university results by weighting the total number of equivalent
students to the basic price.
In the next phase, the standard resource is adjusted according to the inflation rate and to the
estimates of the Higher Education Funding Council on income from tuition fees of the students.
1.3.3. The financing of the public higher education institutions in Denmark
In the last 10-15 years the funding mechanism of Danish higher education has undergone
various changes. Through the financing reform it was intended mainly the decentralization of
funding from a planned one to a global financing one taking the form of grants, the state giving
a higher priority to the programs of study and to the implementation of a system of quality
control.
The current funding mechanism is based on the number of active students and those who
promote their exams and therefore, the institutional funding is directed towards the
outputs. Also, in Denmark, the funds allocated for education funding are separate from those
allocated to research funding. Thus, the higher education institutions have separate budgets for
education and for research.
The Danish higher education financing strategy has known a new configuration since 1992.
The government allocations established under the new funding model are based on the
introduction of agreements for a period of 4 years that establish total number of places of study
in an institution (before the reform, these agreements were annual). The universities are free to
reallocate the places of study between different fields of study. This increases their flexibility
and makes them capable to adapt to the changes in demand, which would lead to a greater
balance between supply and demand.
The Danish higher education sector is financed by the Ministry of Education (the research
funding is under the auspices of the Ministry of Science, Technology and Innovation). For each
student who promotes an examination, a certain amount of money is allocated to the
university. All these so called "active students" determine the available budget. In this system
each exam is scored. For example, all the exams within a faculty of 5 years accounts for 5
points. The universities are not "compensated" for students who do not promote the exams.
The funding allocation depending on the passed exam vary based on the field of study and has
three components 9 :
funds for educational expenses and equipment;
funds for joint expenses (e.g. administration, buildings);
funds allocated for the practical work
9 Vossenstein H. (2003), Country report: Higher education in Denmark, CHEPS (Center for Higher Education
Policy Studies), pg. 47, available online at: www.utwente.nl/cheps/documenten/denmark.pdf, accessed on
12.12.2005
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