UNESCO INSTITUTE for STATISTICS The Conceptual Framework of the UIS Data on Finance A short introduction to the definitions underlying the Questionnaire on Educational Expenditure Juan Cruz Perusia February 2008, Hastings

UNESCO INSTITUTE for STATISTICS 2 Overview n Framework and coverage of education finance data n Types of institutions n Goods and services: è Education and education-related institutions è Purchased outside institutions

UNESCO INSTITUTE for STATISTICS 3 How to define the educational expenditure n For the purposes of international comparison financial data should be defined by a well-defined and comparable set of goods and services n Countries have been interested in how much schools/universities cost, or even more narrowly, how much governments spend for them.

UNESCO INSTITUTE for STATISTICS 4 Framework for education finance data n It should be built around three dimensions: è Type of goods and services provided è Service provider è Source of funds (public, private) that finance the provision or purchase of these goods and services

UNESCO INSTITUTE for STATISTICS 5 Framework for educational expenditure and coverage

UNESCO INSTITUTE for STATISTICS 6 Coverage of the finance data n Goods and services: è Education and education- related institutions * è Outside institutions: private expenditure on educational goods and services n Public subsidies to students for student living costs * Few exceptions n R&D outside of educational and education-related institutions n Private non- subsidized expenditure on student living costs outside institutions INCLUDES:EXCLUDES:

UNESCO INSTITUTE for STATISTICS 7 Educational and education-related institutions n Defined as entities that provide either educational core or peripheral goods and services to individuals and other educational institutions.

UNESCO INSTITUTE for STATISTICS 8 Educational and education-related institutions n Educational institutions provide educational programmes for students (schools, universities) n Education-related institutions (Non- instructional institutions) provide education- related administrative, advisory or professional services for other educational institutions or for individuals.

UNESCO INSTITUTE for STATISTICS 9 Education-related institutions n Entities administering educational institutions n Entities performing curriculum development, testing, educational research and educational policy analysis n Entities providing support services to other educational institutions n Entities providing ancillary services

UNESCO INSTITUTE for STATISTICS 10 Education-related institutions n General-purpose units of public authorities (states, municipalities) in many countries provide maintenance and ancillary services such as student transport administration. » Although they can not be defined as educational related institutions as a whole, the expenditure committed to the education-related services should be included

UNESCO INSTITUTE for STATISTICS 11 Public or private institutions n Classification made according to whether a public agency or a private entity has the ultimate control over the institution n Receiving its funding from public or private sources does not determine the status of the institution between public and private

UNESCO INSTITUTE for STATISTICS 12 Public educational institutions n An institution is classified as public if it is controlled and managed: è Directly by a public education authority or agency, or è Either by a government agency directly or by a governing body whose most of members are either appointed by a public authority or elected by public franchise.

UNESCO INSTITUTE for STATISTICS 13 Private educational institutions n What is a private institution? è If it is controlled and managed by a non- governmental organisation (e.g. a Church, a Trade Union or a business enterprise), or è If its Governing Board consists mostly of members not selected by a public agency n 2 types of private institutions

UNESCO INSTITUTE for STATISTICS 14 How to classify private institutions? n A government-dependent private institution is one that receives more than 50 per cent of its core funding from government agencies. n An independent private institution is one that receives less than 50 per cent of its core funding from government agencies.

UNESCO INSTITUTE for STATISTICS 15 Expenditure on goods and services inside educational and education-related institutions n Educational core goods and services to be included: 1. Instruction (i.e., teaching costs), including in teaching hospitals as it relates to the teaching of medical students 2. Educational goods (books, materials, etc) provided by institutions 3. Training of apprentices and other participants in combined school and work-based educational programmes at the workplace 4. Administration 5. Capital expenditure and rent 6. Special educational needs; guidance n Educational peripheral goods and services: 1. Research and Development 2. Ancillary Services

UNESCO INSTITUTE for STATISTICS 16 Expenditure on goods and services inside educational and education-related institutions n Goods and services to be excluded: 1. Child care or day care provided by schools 2. Expenditure on educational activities outside the scope of the data collection (e.g. private language courses, leisure courses) 3. Activities of public authorities (e.g. Ministries etc.) that is not directly related to education (e.g. culture, sports, youth activities etc.) unless it is provided as ancillary service 4. Teaching hospitals expenditure as it relates to patient care and other non-education related general expenditure 5. Debt servicing (i.e. payments of interest or repayments of the principal) 6. Depreciation of capital assets and capital charges 7. Research and Development outside of educational and education-related institutions.

UNESCO INSTITUTE for STATISTICS 17 Expenditure outside educational and education-related institutions n Student or household expenditure related to education that occurs outside institutions: è Educational goods and services purchased outside institutions, in the free market è Student living costs if they are subsidised through financial aid to students by public or private entities n Exclusions: è Student foregone earnings, è Expenditure on student living costs outside educational and education-related institutions which are not subsidised through financial aid to students by public or other private entities.

UNESCO INSTITUTE for STATISTICS 18 Further reading n All definitions and concepts presented are available in detail in the workshop document: è Concepts, definitions and classifications for the collection of international education finance data - Excerpt from the UNESCO/OECD/EUROSTAT manual