Directory UMM :Data Elmu:jurnal:I:International Journal of Educational Management:Vol12.Issue6.1998:

Calculating the cost of an undergraduate Initial
Teacher Education (ITE) course

Neil Burton
Ne ne Co lle ge o f Highe r Educ atio n, No rthampto n, UK

Through a documentary
analysis approach, the data
included in the validation
documentation for a new
course designed for undergraduate Initial Teacher
Education are used in an
attempt to calculate the
direct costs of the course.
The portion of the costs that
are visible are then compared
to the pricing policy of the
funding agency involved. The
devolution of fi nancial
responsibility within higher
education is suggested as a

means of making courses
more responsive to market
trends.

Introduction
T h is p a p er offer s a n a p p r oa ch t o exa m in in g
t h e cost s in cu r r ed by a n in st it u t ion of h igh er
ed u ca t ion op er a t in g a n u n d er gr a d u a t e In it ia l Tea ch er E d u ca t ion (ITE ) cou r se. T h e
ca se st u dy w ill focu s on a n ew ly p la n n ed
cou r se wh ich h a s b een d esign ed t o op er a t e
u n d er exist in g Gover n m en t , Dep a r t m en t for
E d u ca t ion a n d E m p loy m en t (DF E E ), r e gu la t ion s. T h e in st it u t ion , by com m it t in g t o
r em a in a p r ov id er of ITE cou r ses, m a d e t h e
d ecision t o ch a n ge fr om a fou r - t o a t h r eeyea r u n d er gr a d u a t e cou r se m a in ly on
gr ou n d s of m a in t a in in g r ecr u it m en t (st u d en t ) n u m b er s a n d t h e ava ila b ilit y of t r a n sit ion a l fu n d in g r a t h er t h a n a n ob ject ive v iew
of lon g-t er m cost s a n d in com e. An a ly sis of
t h is a p p r oa ch t o cou r se cost in g w ill b e in t h e
con t ext of r ecen t p r on ou n cem en t s by t h e
ed u ca t ion fu n d in g b ody, t h e Tea ch er T r a in in g Agen cy (TTA), on fu t u r e ITE p r icin g
p olicy.

Approaches to financial planning
and budgeting in education

Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 2 / 6 [ 1998] 2 6 0 –2 6 9
© MCB Unive rsity Pre ss
[ ISSN 0951-354X]

[ 260 ]

A sign ifica n t p r oblem of t h is st u dy h a s b een
t h e r ela t ive la ck of p r ev iou s lit er a t u r e on t h e
su b ject of cost in g cou r ses in h igh er ed u ca t ion . T h e m a jor it y of t h e ava ila ble lit er a t u r e
con cer n ed w it h ed u ca t ion a l m a n a gem en t
(Br ook b a n k a n d An d er son , 1992; Bu sh ,
1986,1989; Bu sh et a l., 1980; Cr aw for d et a l.,
1994; Silver, 1983; West -Bu r n h a m , 1992) con cen t r a t es on t h e p er son n el m a n a gem en t
a sp ect s r a t h er t h a n fin a n cia l m a n a gem en t .

E ven w h en t h e con t r ol of ed u ca t ion a l
fin a n ces a r e con sid er ed , it is fr eq u en t ly in
t er m s of t h e a lloca t ion of d evolved fu n d in g t o
p a r t icu la r ed u ca t ion a l r esou r ces (Bu sh a n d
West -Bu r n h a m , 1994). Th e over w h elm in g
bu lk of t h e ava ila ble lit er a t u r e con cen t r a t es
on fu n d in g issu es (Boot h , 1996; Ma ce, 1995;
THE S, 1994, 1995a , 1995b ; Ty som e, 1996;
Willia m s, 1994).
T h is a p p r oa ch , of con cen t r a t in g on ava ila ble fu n d s r a t h er t h a n t h e a ct u a l cost s, t en d s
t o b e en cou r a ged by t h e fu n d in g b od ies in
Br it ish ed u ca t ion wh ich r ely, t o a ver y la r ge
ext en t , on “for m u la ” m et h od s t o a r r ive a t

a lloca t ion s for p a r t icu la r in st it u t ion s.
Leva cic (1989) d er id es t h e for m u la m et h od
u sed for fu n d in g sch ools, in t h a t ea ch loca l
ed u ca t ion a u t h or it y (LE A) h a s a d iffer en t
for m u la , wh ich is b a sed on h ist or ica l costin gs, a n d t h ese d o n ot r ela t e t o ed u ca t ion a l
a ct iv it y in ot h er t h a n gr oss t er m s.

T h is “t op -d ow n ” m od el for ces ed u ca t ion a l
m a n a ger s, given a n ever d ecr ea sin g r esou r ce
a lloca t ion (in r ea l t er m s), t o a t t em p t t o m a k e
sav in gs w it h ou t a n y en cou r a gem en t t o d iscover t h e a ct u a l cost s of t h e va r iou s a sp ect s
of t h e cou r se p r ogr a m m es. Beca u se t h e for m u la is d evelop ed fr om a n “in cr em en t a l
bu d get in g” a p p r oa ch t o cost in g, t h is is t h e
a p p r oa ch t h a t in st it u t ion s a r e im p licit ly
en cou r a ged t o follow. As Leva cic (1990) n ot es
a b ou t in cr em en t a l bu d get in g or h ist or ica l
fu n d in g:
it d oes n ot p r ov id e a coh er en t a n d in t egr a t ed a p p r oa ch t o m a n a gem en t p la n n in g
w h ich lin k s r esou r ce a lloca t ion t o t h e
a ch ievem en t of in st it u t ion a l a im s or
p u r p oses.

In sim p le t er m s, t h e r esou r ce or fu n d in g
a lloca t ion of p r ev iou s yea r s d ict a t es t h e
a lloca t ion in su b seq u en t yea r s – a st ea dy
st a t e or st a t ic a p p r oa ch w h ich is r a t h er a t
od d s w it h t h e dy n a m ic ch a n ges cu r r en t ly

fa cin g ITT.
Dy n a m ic sy st em s a r e ava ila ble, m ost
n ot a bly t h e P P BS (p la n n in g, p r ogr a m m in g,
bu d get in g sy st em ). Th is sy st em w a s d evelop ed , w it h in a n ed u ca t ion a l con t ext , for t h e
Ca lifor n ia St a t e De p a r t m en t of E d u ca t ion
a n d p u blish ed in t h e d ocu m en t “Con cep t u a l
d esign for a P P BS for Ca lifor n ia Sch ool Dist r ict s” in 1969 a n d im p or t ed in t o Br it a in by
t h e a ccou n t a n t s Coop er s & Ly b r a n d w h ich
w er e d evelop in g a n d w r it in g su p p or t d ocu m en t a t ion for t h e in t r od u ct ion of loca l m a n a gem en t of sch ools (LMS). It is d escr ib ed a s
“ob ject ive bu d get in g” (Leva cic, 1990), wh er e
t h e in st it u t ion set s clea r a im s a n d a lloca t es
r esou r ces a ccor d in gly a n d in so d oin g id en t ifies wh a t exp en d it u r e is b ein g in cu r r ed for.
Leva cic (1989) p r ov id es a ccess t o a n u m b er
of a u t h or s fr om t h e USA, wh o h ave sign ifica n t ly m or e exp er ien ce a t u sin g dy n a m ic,
cost -b a sed , bu d get in g m et h od s t h a n t h eir
Br it ish cou n t er p a r t s. For exa m p le, in
Leva cic (1989), Hou se com p la in s t h a t t h is

Ne il Burto n
Calc ulating the c o st o f an

unde rgraduate Initial Te ac he r
Educ atio n (ITE) c o urse
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 2 / 6 [1 9 9 8 ] 2 6 0 –2 6 9

set t in g of in st it u t ion a l or cou r se goa ls w it h
m ea su r a ble ob ject ives, w h ich a r e t h en
cost ed , w ill lea d t o a sit u a t ion wh er e:
T h e r e p r ession a n d d u lln ess of t h e cla ssr oom w ill in cr ea se a n d w e w ill h ave su cceed ed in cr u cify in g ou r ch ild r en on t h e
cr oss of econ om ic efficien cy.

Br ock m a n (1989) set s ou t t h e d iffer en ces
b et ween p r ogr a m a n d in cr em en t a l bu d get in g (P B a n d IB):
1. P B r eflect s a n ed u ca t ion a l p la n ...
2. P la n n in g is h olist ic r a t h er t h a n in cr em en t a l...
3. P la n n in g by p r ogr a m focu ses on t h e
p r ogr a m s t h a t a r e n ew a s d iffer en t ia t ed
fr om t h ose t h a t a r e con t in u in g. It em p h a sises t h e m u lt i-yea r im p a ct of n ew p r ogr a m s....
4. All p r ogr a m s a ffect a ll ot h er p r ogr a m s in

t h e u n it .....
5. IB is elim in a t ed ..in favou r of... zer o b a sed
bu d get in g (ZBB)
6. Con t in gen cy fu n d s w ill n ot b e ava ila ble....

T h r ou gh t h is p r ocess Br ock m a n (1989)
exp ect s issu es of fin a n ce t o b ecom e a m or e
u n der stood a spect of th e edu ca tion a l
decision -m a k in g p r ocess a t a ll levels. T h er e
is en cou r a gem en t t o d efin e t h e p u r p ose of
cou r ses, t o d efin e clea r ly id en t ifia ble t a r get s
a n d t o con sid er d iffer en t w ay s of a p p r oa ch in g p r oblem s.
ZBB is, in som e r esp ect s, a sim p lified ver sion of P P BS. “It is”, a ccor d in g t o Leva cic
(1989), “a clea r a t t em p t t o avoid h ist or ica l
bu d get in g”; a n d “ZBB is less com p lica t ed in
P P BS b eca u se it on ly r eq u ir es t h e bu d get
m a n a ger t o sp lit u p t h e bu d get in t o d ecision
u n it s. A d ecision u n it cou ld b e a d ep a r t m en t ,
a cu r r icu lu m a r ea or a ser v ice a r ea ”. So
in st ea d of d efin in g “p r ogr a m m es” for t h e

P P BS, exist in g, r ecogn ised cost cen t r es cou ld
b e u sed .
In com p a r ison w it h IB, ZBB em p h a sises
t a k in g a fr esh look a t cost s in cu r r ed . In cr em en t a lism t en d s t o b e b a sed a r ou n d a fixed
cor e a n d “d ecision s a r e b a sed u p on la st
yea r ’s bu d get ” (Dav ies, 1994), ch a r a ct er ised
a s “m u d d lin g t h r ou gh ”. Ar ea m a n a ger s,
a ccor d in g t o Ha r k ley (1989), w ill b e r eq u ir ed
t o ju st ify r esou r ce a lloca t ion s a n n u a lly,
r a t h er t h a n a llow t h em t o r oll over
Dav ies (1994), wor k in g on t h e p r em ise t h a t
t h e “bu d get in g p r ocess is a dy n a m ic on e”,
offer s a com p r om ise, of sor t s, b et ween t h e
t r a d it ion a l in cr em en t a l a p p r oa ch a n d t h e
m or e r a d ica l ZBB. Usin g h is E d u ca t ion a l
Ma n a gem en t Cycle (F igu r e 1) a s a st a r t in g
p oin t , h e h a s d evelop ed a “bu d get a r y cycle”
(F igu r e 2).
In t h e r ev iew p a r t of t h e cycle, t h e cu r r en t
p osit ion is exp lor ed ; t h en a for eca st is m a d e

u sin g a m u lt i-yea r t im e h or izon (MYTH),

Figure 1
Educ atio nal manage me nt c yc le
Organisatio nal
Obje c tive s
Evaluatio n

Organisatio nal
Analysis

Imple me ntatio n

Planning
Budge ting

Figure 2
Budge tary c yc le
Re vie w
Evaluatio n

Fo re c asting
Imple me ntatio n

con sid er in g a lt er n a t ive ch a n ges t o t h e over a ll r esou r ce b a se; t h e im p lem en t a t ion st a ge
is w h er e t h e bu d get is a ct u a lly a lloca t ed ; a n d
t h e eva lu a t ion p h a se exa m in es “h ow well t h e
r esou r ce a lloca t ion d ecision s h ave en a bled
t h e in st it u t ion t o m eet ob ject ives in a n effect ive a n d efficien t w ay ” (Dav ies, 1994). As a
com p r om ise, t h is a p p r oa ch d oes t en d t o
favou r t h e in cr em en t a l a p p r oa ch . T h er e is,
p er h a p s, in su fficien t in vest iga t ion of t h e
n a t u r e of cost s in t h is a p p r oa ch t o b e a ble t o
su ggest sign ifica n t ch a n ges t o cu r r en t fu n d in g p a t t er n s.
St a r t in g fr om “k n ow in g wh a t som et h in g
cost s is t h e fir st st a ge in weigh in g of it s
va lu e a ga in st t h a t cost ”, F ield en a n d Pea son
(1989) t a k e a n a lt er n a t ive a p p r oa ch t o ed u ca t ion a l fin a n cia l m a t t er s. T h ey id en t ify five
ca t e gor ies of cost s:
1 d ir ect – e.g. a ca d em ic st a ff;

2 in d ir ect – e.g. m a in t en a n ce of t h e
gr ou n d s;
3 m a r gin a l – e.g. t h e cost of a n ext r a st u d en t
on a p a r t icu la r cou r se;
4 t ot a l – for t h e cou r se or p er st u d en t ;
5 op p or t u n it y – t h e cost of n ot b ein g a ble t o
u se t h e sa m e r esou r ces t o p r ov id e a n
a lt er n a t ive cou r se.
T h ey a lso id en t ify w ay s of p er ceiv in g a n y
ou t com es or b en efit s:
• m ea su r a ble a n d r ea lisa ble ou t com es – e.g.
ch a n gin g t h e len gt h of t h e st u d en t d ay ;
• m ea su r a ble bu t u n r ea lisa ble, e.g. r ed u cin g
t ea ch in g session s t o 55 m in u t es;
• im m ea su r a ble ou t com es.
T h is p r ov id es a voca bu la r y a n d a b a sic
fr a m ewor k t o op er a t e w it h in bu t t h e p r a ct ica l issu es a r e left u n r esolved . J on es (1989)
m a k es a n a t t em p t t o b r in g m a t h em a t ica l

[ 261 ]

Ne il Burto n
Calc ulating the c o st o f an
unde rgraduate Initial Te ac he r
Educ atio n (ITE) c o urse
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 2 / 6 [1 9 9 8 ] 2 6 0 –2 6 9

for m u la e t o t h e p r oblem a lon gsid e t h e
a ssu m p t ion t h a t “t h e a im of t h e op er a t ion a l
m a n a ger is t o r ed u ce u n it cost s”, wh er e u n it
cost is d efin ed a s:
cou r se len gt h × h ou r s t a u gh t p er week
n u m b er p r esen t ed for a ssessm en t × p a ss r a t e
T h e over a ll cost of a cou r se b ein g given by
t h e exp r ession :
[(C*H*W )/ X + M ]N
Wh er e
C = eq u ip m en t cost p er h ou r
W = week s t a u gh t p er yea r
H = h ou r s t a u gh t p er week
X = op t im u m n u m b er of st u d en t s
M = m a t er ia ls p er st u d en t
N = a ct u a l en r olm en t
Alt h ou gh d esign ed w it h fu r t h er ed u ca t ion in
m in d , w it h op en en r olm en t a n d over su p p ly
of h igh er ed u ca t ion p la cem en t s, it is b ecom in g a p r ogr essively m or e a p p lica ble m od el
for HE .
Bir ch (1989) d efin es fou r st e p s for
p r ogr a m m ed bu d get in g of colle ge-b a sed
cou r ses (F igu r e 3):
1 set a d m ission s p olicy (t a r get en r olm en t );
2 ca lcu la t e t h e t ot a l st u d en t h ou r s t h e
cou r se w ill r eq u ir e;
3 set SSR (st u d en t -st a ff r a t io) a n d aver a ge
lect u r er h ou r s t o ca lcu la t e st a ff cost s t o
ser v ice st u d en t s;
4 ca lcu la t e d e p a r t m en t a l (in t r a -cou r se)
cost s.
Wit h t h ese fin a n cia l t ools t h e d a t a ob t a in ed
t h r ou gh a n a n a ly sis of t h e d efin it ive cou r se
d ocu m en t a t ion (N en e Colle ge, 1996a , 1996b )
w ill b e m a d e.

The funding of Initial Teacher
Education (ITE) and current course
regulations
T h e gover n m en t d e p a r t m en t w it h r esp on sib ilit y for ed u ca t ion , T h e De p a r t m en t for
E d u ca t ion a n d E m p loy m en t (DF E E ), wh ich
w a s for m a lly k n ow n a s t h e DF E a n d p r ior t o
t h a t t h e De p a r t m en t of E d u ca t ion a n d
Scien ce (DE S), lay s d ow n r e gu la t ion s a s t o
t h e st r u ct u r e, len gt h a n d , t o som e ext en t ,

con t en t , of p r im a r y ITT cou r ses. Fou r -yea r
cou r ses, u n d er t h e 1987 r e gu la t ion s (DE S,
1989), a r e cu r r en t ly b ein g p h a sed ou t in
favou r of cou r ses d esign ed u n d er t h e r e gu la t ion s fr om Cir cu la r 14/ 93 (DF E , 1993).
T h er e a r e sever a l m a jor d iffer en ces in
cou r se d esign , m ost n ot a bly a r ed u ct ion in
t h e m od a l len gt h of cou r se fr om fou r t o t h r ee
yea r s (w it h t h e sa m e q u a lifica t ion ); m or e
t im e sp en t in sch ool; a n a r r ow er r a n ge of
su b ject exp er t ise; a n d a n exp ect a t ion t h a t
sch ools, w it h a su it a ble t r a n sfer of fu n d in g
fr om HE , w ill p lay a gr ea t er p a r t in t h e p r ofession a l a sp ect s of t h e cou r ses.
T h e sign ifica n t t a sk of st u d en t s’ sch ool
exp er ien ce su p er v ision is t r a n sfer r ed t o
sch ools, w it h a n a p p r op r ia t e t r a n sfer of
fu n d s fr om t h e ITT in st it u t ion t o t h e sch ool.
As t h e r esp on sible b ody, HE n eed s t o en su r e
t h a t q u a lit y is m a in t a in ed . Th is t r a n sfer of
r esp on sib ilit y, fr om HE t o sch ools, n ecessit a t es t h a t HE p r ov id e t r a in in g t o en su r e t h a t
t ea ch er s, su p er v isin g st u d en t s in sch ools,
a r e su fficien t ly k n ow led gea ble a b ou t t h e
cou r se r eq u ir em en t s a n d a r e su fficien t ly
sk illed t o b e a ble t o su ccessfu lly p r ov id e
a p p r op r ia t e su p p or t . T h er e is a con sid er a ble
im p lica t ion for t r a in in g a n d a ssocia t ed cost s
bu ilt in t o t h is t r a n sfer.
T h e fu n d in g b ody for ITT in h igh er ed u ca t ion , t h e Tea ch er T r a in in g Agen cy (TTA), is
m ov in g t ow a r d s a “p r ice t a r iff ” a p p r oa ch
(TTA, 1996), wh er eby, follow in g a t r a n sit ion a l
p er iod , a ll p r ov id er s of ITT w ill r eceive t h e
sa m e fu n d in g p er st u d en t . Th e exa m p le
“p r ice” of a p r im a r y u n d er gr a d u a t e ITT
st u d en t (a s a n exa m p le for 1996/ 97) is set a t
£2,609 (a r r ived a t by ca lcu la t in g t h e aver a ge
fu n d in g p er u n d er gr a d u a t e ITT st u d en t in
t h e p r ev iou s yea r ), r e ga r d less of t h e d iffer en t n eed s of t h e st u d en t s a n d a ct u a l cost s of
t h e cou r se. (It sh ou ld b e n ot ed t h a t u n d er t h e
p r esen t set of r e gu la t ion s for ITT cou r ses, a s
t h e d u r a t ion of fu ll u n d er gr a d u a t e cou r ses,
w it h eq u iva len t q u a lifica t ion s a n d a d m ission s r eq u ir em en t s, m ay b e eit h er t h r ee or
fou r yea r s, d iffer en t cou r ses w ill r eceive
eit h er t h r ee or fou r t im es t h e p r ice t a r iff for
“p r od u cin g” a n eq u iva len t “ou t p u t ”.)

Figure 3
Pro gramme d budge ting o f c o lle ge -base d c o urse s
pro je c t e nro lme nt

ave rage c o st
pe r stude nt
se t o pe rating
parame te rs

[ 262 ]

to tal c o st o f
the c o urse

c alc ulate c o sts
o f re late d
ac tivitie s

c o mpare
with the
pro je c te d
inc o me fo r
the c ourse

Ne il Burto n
Calc ulating the c o st o f an
unde rgraduate Initial Te ac he r
Educ atio n (ITE) c o urse
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 2 / 6 [1 9 9 8 ] 2 6 0 –2 6 9

Ad d it ion a lly, fin a n cia l con st r a in t s h ave b een
im p osed on h igh er ed u ca t ion for som e con sid er a ble t im e. In r ea l t er m s, t h e a m ou n t
in st it u t ion s r eceive in fees for ea ch st u d en t
h a s b een fa llin g for a n u m b er of yea r s in r ea l
a n d , in som e ca ses, a b solu t e t er m s. As J a n d h ya la (1993) n ot es, “t h e cost of h igh er ed u ca t ion r evolves a r ou n d t h e cost of a ca d em ic
st a ff ”; con seq u en t ly m ost in st it u t ion s h ave
a b sor b ed t h ese fin a n cia l cu t s by in t r od u cin g
“p r od u ct iv it y im p r ovem en t s” – in effect ,
a llow in g t h e SSR t o wor sen . At a t im e of
in cr ea sin g st u d en t n u m b er s t h is h a s b een
r ela t ively ea sy t o a ch ieve, w it h t h e exist in g
st a ffin g a n d a ccom m od a t ion in st it u t ion s
h ave a t t h eir d isp osa l. In st it u t ion a l fu n d in g,
in over a ll t er m s, h a s, a t t h e ver y lea st , b een
m a in t a in ed bu t on ly by a cce p t in g in cr ea sed
st u d en t n u m b er s.
It is t h e in t en t ion of t h e TTA (1996) t o
“r ew a r d ” h igh q u a lit y p r ov id er s by a llow in g
t h ose in st it u t ion s t o b id for ext r a st u d en t s,
n ot by a llow in g t h em t o ch a r ge a p r em iu m
p r ice. Sin ce p r ofession a l p la cem en t s for
st u d en t s in sch ools w ill b e r est r ict ed in t h e
v icin it y of t h e in st it u t ion , st u d en t n u m b er s
w ill b e self-lim it in g – u n less t h e in st it u t ion
w er e t o set u p sa t ellit e cou r ses in ot h er geogr a p h ica l loca t ion s, or r em ove t h e n eed for
st u d en t s t o a t t en d ca m p u s-b a sed cou r ses.

Costing a new undergraduate ITE
course – a case study using
documentary evidence
By t h e in t a k e of 1999/ 2000 t h e fou r -yea r
u n d er gr a d u a t e ITT cou r se w ill h ave b een
p h a sed ou t t o b e r e p la ced by t wo t h r ee-yea r
BA(QTS) cou r ses – r e p r esen t in g t h e m a in
d iv ision in p r im a r y ed u ca t ion in sch ools in
t h e cou n t r y, 4-7 a n d 7-11 yea r -old s. As a m em b er of t h e cou r se d evelop m en t t ea m , t h e
b a ck gr ou n d t o t h e cou r se d ocu m en t a t ion
(N en e Colle ge, 1996a , 1996b ) is k n ow n a n d so
ca n b e d iscu ssed h er e. T h is d oes a lso m ea n
t h a t t h er e is som e in cr ea sed p ot en t ia l for
a u t h or b ia s b eca u se of t h e close r ela t ion sh ip
w it h t h e su b ject m a t t er.
T h e p h ilosop h ica l issu es of t h e or ga n isa t ion a n d ed u ca t ion a l d ir ect ion of t h e n ew
cou r se wer e d iscu ssed by t h e cou r se t ea m
d u r in g t h e d evelop m en t p er iod of 1995 t o
1996. T h e cost s of t h e p r ov ision of su ch a
cou r se wer e n ot on t h e a gen d a of t h e d evelop m en t t ea m s. T h eir p r im e con sid er a t ion ,
a lon gsid e t h a t of en su r in g t h a t t h e cou r se
wou ld b e of h igh a ca d em ic a n d p r ofession a l
q u a lit y, w a s t o m eet t h e DF E (1993) cou r se
r eq u ir em en t s.
T h e b a sic d esign w a s for t h er e t o b e t wo
cou r ses, deter m in ed by a ge-ph a se specia lism ,

w h ich wou ld h ave a sh a r ed cor e of su b ject
sp ecia list cou r ses, h en ce t h e d u a l d ocu m en t a t ion (N en e Colle ge, 1996a , 1996b ) wh er e
m a n y of t h e sect ion s, or ga n isa t ion a lly, a r e
id en t ica l in b ot h d ocu m en t s. An eq u a l n u m b er of st u d en t s for ea ch a ge p h a se w a s en v isa ged , w it h ea ch st u d en t ch oosin g a su b ject
sp ecia lism fr om : E n glish , m a t h em a t ics,
scien ce, geogr a p h y, h ist or y, a r t , or p h y sica l
ed u ca t ion – t h er e w a s a n exp ect a t ion t h a t
t h er e wou ld b e t w ice a s m a n y st u d en t s w ish in g t o t a k e E n glish a s a n y ot h er su b ject .
P er iod s of sch ool exp er ien ce, t ot a llin g 120
d ay s, wer e t o b e even ly sh a r ed b et ween t h e
t h r ee yea r s, w it h t ea ch er s a ssu m in g t h e
r esp on sib ilit y for st u d en t su p er v ision in
sch ool.
T h e t a u gh t sect ion s of t h e cou r ses ca n b e
su b d iv id ed in t o t h r ee ca t e gor ies:
1 su b ject st u d ies – t h e st u dy of a ll of t h e
E n glish N a t ion a l Cu r r icu lu m (DF E , 1995)
su b ject s for t h e p r im a r y p h a se p lu s r eligiou s ed u ca t ion ;
2 p r ofession a l st u d ies – p ed a gogy a n d
r ela t ed st u d ies;
3 su b ject sp ecia lism – st u dy of a su b ject t o
a n a dva n ced level w it h sp ecia l r esp ect of
t h e n eed s of t h e su b ject co-or d in a t or in
t h e p r im a r y sch ool.
All of t h ese a r ea s a r e st u d ied in ea ch of t h e
yea r s of t h e cou r se.
Ta ble I sh ow s t h e con t a ct t im e exp ect a t ion s for st u d en t s, bu t t h ey w ill, n a t u r a lly, b e
t a u gh t in gr ou p s so fr om t h is p oin t t h e SSR
a n d a ct u a l gr ou p sizes b ecom e a cr u cia l
d et er m in a n t in t h e ca lcu la t ion s. In a d d it ion
t o t h is n u m b er of t a u gh t h ou r s t h er e a r e a
sim ila r n u m b er of h ou r s id en t ified a s
“d ir ect ed t im e”, in wh ich t a sk s set by t h e
colle ge a r e t o b e ca r r ied ou t , a n d “selfst u dy ”, wh ich is self-exp la n a t or y (N en e
Colle ge, 1996a , 1996b ).
Ow in g t o t h e p r ofession a l n a t u r e of t h e
cou r se, st u d en t s ca n exp ect t o r eceive in d iv id u a l t u t or a t t en t ion a t va r iou s st a ges
t h r ou gh ou t t h eir in it ia l p r ofession a l d evelop m en t . F ir st , a ll st u d en t s a r e a lloca t ed t wo
h a lf-h ou r t u t or ia ls p er yea r in or d er t o d iscu ss t h eir a ca d em ic a n d p r ofession a l
Table I
Co ntac t time e xpe c tatio ns fo r stude nts
Year

Subject
hours

Professional
hours

Specialist
hours

156
72
24
1
2
168
48
48
3
72
72
48
Total
396
192
120
Source: Nene College, 1996a, 1996b.

Totals
252
264
192
708

[ 263 ]

Ne il Burto n
Calc ulating the c o st o f an
unde rgraduate Initial Te ac he r
Educ atio n (ITE) c o urse
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 2 / 6 [1 9 9 8 ] 2 6 0 –2 6 9

p r ogr ess a n d t o m a in t a in t h eir r ecor d of
p r ofession a l d evelop m en t . Secon d , st u d en t s
w ill r eceive t u t or su p p or t wh ilst on p er iod s
of sch ool exp er ien ce, of b et ween six a n d 19.75
h ou r s d e p en d en t u p on t h e for m of p a r t n er sh ip sch ool t h a t t h ey a r e p la ced w it h .
T h e cou r se d ocu m en t a t ion gives sch ools
t h e op p or t u n it y t o p r ov id e p r ofession a l
p la cem en t s for st u d en t s a t t h r ee d ist in ct
p a r t n er sh ip levels. At “level 1” st u d en t s a r e
fu lly su p er v ised by colle ge-b a sed st a ff a n d ,
con seq u en t ly, t h er e is n o t r a n sfer of fu n d in g
t o sch ools. “Level 3” p la cem en t s r ely en t ir ely
on t h e sch ools t o su p er v ise, for w h ich a fee is
p aya ble, a n d p r ov id e m u ch of t h e p r ofession a l su p p or t for t h e st u d en t s wh ilst t h ey
a r e in sch ool, a n d colle ge-b a sed t u t or s v isit
p u r ely t o m od er a t e m a r k in g p r oced u r es a n d
en su r e q u a lit y t h r esh old s a r e m a in t a in ed . It
ca n b e su r m ised t h a t “level 2” p a r t n er sh ip s
lie b et ween t h ese t wo ext r em es a n d t h a t t h e
su p er v ision a n d su p p or t r ole is sh a r ed
b et ween sch ool a n d colle ge. Ta ble II sh ow s
t h e n u m b er of t u t or h ou r s a n d t r a n sfer of
fu n d in g a t t a ch ed t o ea ch of t h e t h r ee levels
in ea ch of t h e t h r ee yea r s of t h e cou r se.
F r om t h e figu r es p r ov id ed in Ta bles I a n d
II, it is p ossible t o b e gin t o ca lcu la t e t h e
st a ffin g r eq u ir em en t for t h e cou r se a n d fr om
t h er e t h e cost of st a ffin g t h e cou r se. Follow in g t h e st e p s su ggest ed by Bir ch (1989) t h e
fir st d ecision t o b e m a d e is on e of t a r get
en r olm en t . Sin ce t h e TTA set s fa ir ly p r ed ict a ble t a r get s for t h e r ecr u it m en t of ea ch
in st it u t ion a n d p r im a r y ITT cou r ses a r e
in va r ia bly over su b scr ib ed a t t h is in st it u t ion ,
t h en it is p ossible t o set over a ll r ecr u it m en t
t a r get s w it h a con sid er a ble d e gr ee of con fid en ce.
Un for t u n a t ely t h er e a r e t h r ee sign ifica n t
a r ea s of u n cer t a in t y :
1 t h e b a la n ce b et ween t h e a ge p h a ses is
u n lik ely t o b e even ;
2 t h e d ist r ibu t ion b et ween su b ject s is
u n lik ely t o b e eq u it a ble;
3 t h e n u m b er a n d level of p la cem en t s
offer ed is u n lik ely t o b e fu lly p r ed ict a ble.
Table II
Numbe r o f tuto r ho urs and transfe r o f funding

Level

Year 1
£
hrs

Year 2
£ hrs

Year 3
£
hrs

1
0
5.75
0
7
0
7
2
125 3.75
100 4
75
5
3
250
2
200 2
150 2
Note: The first c olumn for eac h year gives the funds
transferred to sc hool for eac h student and the sec ond
the number of tutor hours alloc ated per student.
Source: Nene College, 1996a, 1996b.

[ 264 ]

E ven so t h e n u m b er of t u t or h ou r s ca n b e
ca lcu la t ed w it h in lim it s:
• n u m b er of t a u gh t h ou r s (gr ou p ) – 708;
• n u m b er of t u t or h ou r s (in d iv id u a l) –22.75
(m a x) t o n in e (m in ).
Mov in g t o st ep 3 of t h e Bir ch (1989) a p p r oa ch ,
it ca n b e seen t h a t b et ween n in e a n d 22.75
h ou r s t h er e m u st b e a n SSR of 1:1 a n d for t h e
r em a in in g 708 it ca n b e va r ied a ccor d in g t o
in st it u t ion a l p olicy a n d n or m s. Som e in st it u t ion a l n or m s a r e com m on ly k n ow n w it h in
t h e in st it u t ion a n d wor k ed t ow a r d s
a lt h ou gh , st r ict ly sp ea k in g, t h ey ca n n ot b e
ca lled “p olicy ”. Ap a r t fr om la r ge lect u r es,
t h e n or m a l t ea ch in g gr ou p is n ot exp ect ed t o
exceed 30 st u d en t s a n d t u t or s sh ou ld n ot
exp ect m or e t h a n 450 st u d en t con t a ct h ou r s
p er yea r (t h ou gh t h e con t r a ct st ip u la t es a
m a xim u m of 550) wh ich r e p r esen t b et ween
on e-t h ir d a n d on e-q u a r t er of t h e n u m b er of
h ou r s a n a ca d em ic m igh t b e n or m a lly
exp ect ed t o wor k d u r in g a yea r. So, wor k in g
a t “m a xim u m efficien cy ”, t u t or s sh ou ld
t ea ch gr ou p s of 30 st u d en t s for 450 h ou r s p er
yea r.
At t h is p oin t t h e sit u a t ion m igh t b e
a p p r oa ch ed a s a lin ea r p r ogr a m m in g p r ob lem wh er e t h e t u t or p a r a m et er s a r e k n ow n
con st r a in t s, t h e r ela t ive cost s of t h e d iffer en t
p a r t n er sh ip levels va r ia ble con st r a in t s a n d
t h e op t im u m n u m b er s a n d d ist r ibu t ion of
st u d en t s a r e t h e va lu es t o b e sou gh t . Th is
cou ld t h en b e p lot t ed a ga in st t h e p r icin g
p olicy in or d er t o m a xim ise r even u e,
r esou r ce u se or even p r ofit . T h ese m u lt i-level
ca lcu la t ion s wou ld b e ca r r ied ou t by a com p u t er u sin g a n a p p r op r ia t e soft w a r e p a ck a ge. Un for t u n a t ely, t h is r esea r ch er is n ot
aw a r e of t h e exist en ce of su ch a soft w a r e
p a ck a ge, t h ou gh t h e wor k of Lu cey (1996)
su ggest s t h a t t h ey a r e ava ila ble.
Sin ce a lin ea r p r ogr a m m in g a p p r oa ch is
n ot fea sible in t h is in st a n ce, it wou ld seem
a p p r op r ia t e t o u se t h e ava ila ble d ocu m en t a t ion t o ch eck u n d er ly in g a ssu m p t ion s b efor e
set t in g op er a t ion a l goa ls p r ior t o seek in g
op t im a l op er a t ion a l con d it ion s. Ma n y of t h e
op er a t in g con d it ion s a r e set by r e gu la t ion
(DF E , 1993); for exa m p le, for a d m in ist r a t ive
p u r p oses it wou ld b e m u ch less exp en sive for
t h e st u d en t s t o h ave on e, lon g p r ofession a l
p la cem en t of 24 week s (t o m a k e u p t h e
r eq u ir ed 120 d ay s in sch ool for a t h r ee-yea r
cou r se), bu t t h e r e gu la t ion s a lso r eq u ir e t h e
st u d en t t o h ave exp er ien ce of m or e t h a n on e
sch ool a n d h ave sch ool exp er ien ce in ea ch of
t h e yea r s of t h e cou r se. Beyon d t h is t h e d ecision t o m a k e t h e p la cem en t s a m ixt u r e of
ser ia l (t h e sa m e d ay ea ch week over a p er iod
of u p t o a sch ool t er m ) a n d block (com p let ely
sch ool-b a sed for a p er iod of u p t o h a lf a

Ne il Burto n
Calc ulating the c o st o f an
unde rgraduate Initial Te ac he r
Educ atio n (ITE) c o urse
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 2 / 6 [1 9 9 8 ] 2 6 0 –2 6 9

sch ool t er m ) is a r gu ed in t h e r a t ion a le of t h e
cou r se d ocu m en t a t ion (N en e Colle ge, 1996a ,
1996b ) on b ot h a ca d em ic a n d p r ofession a l
gr ou n d s (in t er m s of t h e d evelop m en t of
“r eflect ive p r a ct ice”). In a dd it ion , t h er e a r e
a lso or ga n isa t ion a l gr ou n d s, con cer n in g t h e
m ost efficien t u se of t h e ava ila ble a ccom m od a t ion – by en su r in g t h a t t h e st u d en t s a r e
“off ca m p u s” on a cer t a in d ay ea ch week
t h r ou gh ou t a com p let e t ea ch in g p er iod , t h is
w ill r ed u ce t h e d em a n d for t ea ch in g sp a ce on
t h a t d ay. By h av in g ea ch coh or t in sch ool on
a d iffer en t d ay, t h e d em a n d for t ea ch in g
sp a ce ca n b e sp r ea d t h r ou gh ou t t h e week a n d
b et t er m a n a ged .
T h e a ssu m p t ion con cer n in g t h e eq u it a ble
d ist r ibu t ion of st u d en t s b et ween su b ject s
a n d a ge p h a ses is a lso b or n e ou t by r efer en ce
t o t h e d ocu m en t a t ion – in p a r t icu la r, t h e
collect ed cu r r icu lu m v it a e of t h e cou r se
t ea m s. In or d er t o m a k e m ost effect ive u se of
t h e a ca d em ic a n d p r ofession a l st a ff ava ila ble
cer t a in st u d en t d ist r ibu t ion s a r e m or e d esir a ble t h a n ot h er s.
By r efer en ce t o ot h er sou r ces of d a t a , it is
p ossible t o d et er m in e t h e aver a ge cost of a n
ed u ca t ion t u t or – £26,000 p a . Th is figu r e is
sign ifica n t ly h igh er t h a n t h e aver a ge for
a ca d em ics in ot h er a r ea s of t h e in st it u t ion
bu t it is exp la in ed by t h e CVs of t h e st a ff, a ll
of w h om h eld sen ior p osit ion s (i.e. r ela t ively
h igh ly p a id ) in sch ools p r ior t o m ov in g in t o
h igh er ed u ca t ion . E ven so I h ave r ea son t o
b elieve t h a t t h e t r u e figu r e is h igh er st ill
a ft er t a k in g in t o a ccou n t “on cost s” su ch a s
p en sion s.
It is n ow p ossible t o b e gin t o ca lcu la t e t h e
t ot a l cost of t h e cou r se given a r a n ge of a lt er n a t ive scen a r ios. In it ia lly, r efer r in g t o t h e
“op t im a l 1” sit u a t ion in t h e Ap p en d ix, it ca n
b e ca lcu la t ed fr om t h e ava ila ble d a t a given
t h e a ssu m p t ion s con cer n in g st u d en t n u m b er s (TTA r e gu la t ed ) a n d st u d en t d ist r ibu t ion , t h a t t h e cou r se ca n b e t a u gh t a t t h e cost
of 9.71 ft e t u t or s. Given t h e sa la r y figu r es
a b ove, t h is b ecom es a d ir ect cou r se cost of
£252,460 (or £1,402 p er st u d en t ). If t h is is
com p a r ed t o t h e su b op t im a l p osit ion given in
t h e n ext exa m p le t h e cost p er st u d en t w ill
h ave r isen t o £1,668.
Beca u se of t h e con st r a in t s p la ced on t ot a l
st u d en t n u m b er s by t h e TTA, t h e p osit ion
“op t im a l 1”, is a su b op t im a l a r r a n gem en t –
t h e su b ject sp ecia list gr ou p sizes aver a ge
25.7 st u d en t s, b elow t h e m a xim u m efficien t
n u m b er of 30. To m a k e t h e p osit ion t r u ly
“op t im a l” eit h er t h e n u m b er of su b ject sp ecia list gr ou p s w ill n eed t o b e r ed u ced t o six
(a fa ct or of b ot h 180 a n d 30) or st u d en t n u m b er s w ill n eed t o b e in cr ea sed t o 210. In or d er
t o m a in t a in a n even b a la n ce b et ween t h e a ge
p h a ses a n d a n op t im u m p osit ion , st u d en t

n u m b er s w ill n eed t o b e in cr ea sed fu r t h er t o
240. T h is scen a r io, “op t im a l 2”, gives a n
aver a ge cost p er st u d en t of £1,364. Sim ila r
op t im u m p osit ion s w ill b e fou n d a t 60 st u d en t in t er va ls a b ove t h is figu r e.
T h is ju st r e p r esen t s t h e cost of t ea ch in g
w it h in colle ge; t o t h is m u st b e a d d ed t h e
cost s of in d iv id u a l t u t or ia ls a n d sch ool p la cem en t su p er v ision . By ext en d in g Ta ble II, a n d
given t h e t u t or cost of £58 p er h ou r
(£26,000/ 450), t h e cost of p la cem en t su p er v ision ca n b e ca lcu la t ed (Ta ble III). To com p let e t h e a ca d em ic a n d p r ofession a l st a ffin g
cost s of t h e cou r se a n a d d it ion a l su m of £174
(six h a lf-h ou r t u t or ia ls) m u st b e in clu d ed .
Ta ble IV sh ow s t h e m a xim u m a n d m in im u m cost s of st a ffin g t h e cou r ses u n d er t h e
con d it ion s of t h e t h r ee given scen a r ios. As
t h e cost of a ca d em ic st a ff is r e ga r d ed a s a
m a jor com p on en t of over a ll cost s it is
n ot a ble t h a t a ll of t h e t ot a ls a r e sign ifica n t ly
less t h a n t h e exp ect ed fees in com e fr om t h e
cou r se w h ich is £7,827 (£2,609 for t h r ee
yea r s).
T h er e a r e ot h er cost s d ir ect ly r ela t ed t o t h e
cou r se, t h e m ost sign ifica n t n on -st a ffin g
on es b ein g sch ool p la cem en t / p a r t n er sh ip
exp en ses a n d r e p r ogr a p h ics. T h e aver a ge
cost t o t r a n sp or t st u d en t s t o a n d fr om t h eir
p la cem en t sch ool is £2 p er d ay p er st u d en t ,
or a p p r oxim a t ely £80 p er st u d en t p er yea r
(Bu r t on , 1996). At p r esen t r e p r ogr a p h ics is
ch a r ged p er su b ject a n d , a s in d iv id u a l su b ject s a r e t a u gh t a cr oss cou r ses, a p p or t ion in g
cost s t o p a r t icu la r cou r ses is p r oblem a t ic.
Bu t even if t h e fu ll a m ou n t of t h e d elega t ed
bu d get w a s a t t a ch ed t o t h ese cou r ses it
wou ld st ill wor k ou t a t on ly £25 p er st u d en t
p er yea r (Dav ies, 1996).
It n ow b ecom es in cr ea sin gly d ifficu lt t o
a t t a ch p a r t icu la r cost s t o p a r t icu la r cou r ses,
given t h e cu r r en t a ccou n t in g sy st em u sed
w it h in t h e in st it u t ion . In t r a -cou r se cost s
(st e p fou r of Bir ch , 1989) a r e id en t ified by
m ea n s of “t op -slicin g” a ll in com e r eceived by
t h e in st it u t ion t o p ay cen t r a lly for su p p or t
a n d m a n a ger ia l st a ff, a ccom m od a t ion , a n d
a ll a d m in ist r a t ive a n d su p p or t ser v ices. T h is
a lso en a bles t h e in st it u t ion a l m a n a gem en t t o
d ir ect fu n d s t o su p p or t p a r t icu la r in it ia t ives
a n d a ct iv it ies wh ich d o n ot , d ir ect ly, gen er a t e in com e (e.g. som e for m s of in t er n a lly fu n d ed a ca d em ic r esea r ch ).
Com p a r in g t h e figu r e fr om Ta ble V w it h
t h e fees, £2,609 leaves a p p r oxim a t ely £1,500
for in t r a -cou r se cost s, esp ecia lly w h en it
m u st b e con sid er ed t h a t cer t a in “a r t s”
u n d er gr a d u a t e cou r ses on ly a t t r a ct fees in
t h e r e gion of £1,600 p.a . t o b e gin w it h .
T h e Defin it ive Cou r se Docu m en t s (N en e
Colle ge, 1996a , 1996b ) a r e a ble t o su p p ly a
sign ifica n t a m ou n t of b a ck gr ou n d

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Inte rnatio nal Jo urnal o f
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1 2 / 6 [1 9 9 8 ] 2 6 0 –2 6 9

in for m a t ion fr om w h ich ca lcu la t ion s ca n
b e gin t o b e m a d e. Cer t a in p a r a m et er s a n d
con st r a in t s ca n b e id en t ified fr om t h e t ech n ica l in for m a t ion su p p lied w it h in t h e d ocu m en t a t ion . At b est t h ou gh , t h is is on ly a
p a r t ia l v iew of t h e cost s a t t r ibu t a ble t o t h e
cou r se; ot h er d ocu m en t a t ion w ill h ave t o b e
sou gh t , p a r t icu la r ly t o d o w it h r oom cost s
a n d t h e cost of su p p or t ser v ices w it h in t h e
in st it u t ion .
In m a n y r esp ect s, a d ocu m en t a r y a n a ly sis
a p p r oa ch t o t h e cost in g of a cou r se is t h e
on ly effect ive op t ion ava ila ble. It is on ly
w h en t h e in for m a t ion is w r it t en d ow n (in a
d ocu m en t of a n y for m a t ) t h a t t h e figu r es a n d
con st r a in t s ca n b e a p p lied a n d r efer r ed b a ck
t o. F r om a gen er a l p er ce p t ion of wor k in g
w it h fin a n cia l in for m a t ion , for a n y d a t a t o
b e w r it t en d ow n a n d m a d e op en t o p u blic
scr u t in y, t h er e u su a lly h a s b een som e d e gr ee
of ch eck in g b efor eh a n d t o en su r e con fid en ce
a n d r elia b ilit y.
As w it h a ll for m s of com m u n ica t ion , t h e
d a t a a r e op en t o in t er p r et a t ion a n d t h e
Defin it ive Docu m en t s (N en e Colle ge, 1996a ,
1996b ) a r e n ot a n exce p t ion . In fa ct it is p r ecisely b eca u se of t h is op en n ess t h a t t h ey a r e
u sefu l t o t h e r esea r ch er. T h e r esea r ch er, in
a n a ly sin g t h e d a t a , m u st exp lor e t h e a lt er n a t ives in or d er t o p r op ose a p r ob a ble m ea n in g
fr om w h ich p r ed ict ion s a n d con clu sion s ca n
b e m a d e. By u sin g d ocu m en t s a s t h e b a sic
sou r ce it a llow s ot h er r esea r ch er s t o ca r r y
ou t sim ila r a n a ly ses – on e of t h e t est s for
r elia b ilit y b ein g t h a t ot h er r esea r ch er s w ill
d r aw t h e sa m e con clu sion s given t h e sa m e
data.
T h e p r oblem , in t h is p a r t icu la r ca se, is t h a t
t h er e is on ly on e r eleva n t sou r ce of d ocu m en t a r y d a t a . T r ia n gu la t ion a n d r a t ifica t ion
of t h e in for m a t ion wou ld on ly b e p ossible
fr om r ela t ed sou r ces, i.e. t h ose wh o w r ot e t h e

Table III
Co st o f plac e me nt supe rvisio n

Level
1
2
3

£

Year 1
hrs

Cost

0
5.75 £333.50
125 3.75 £342.50
250
2
£366.00

£
0
100
200

Year 2
hrs
Cost
7
4
2

£406.00
£332.00
£316.00

£
0
75
150

Year 3
hrs Cost

Cost over
three years

7 £406.00 £1145.50
5 £365.00 £1039.50
2 £266.00 £948.00

Table IV
Maximum and minimum staffing c o sts
Scenario
(per student)

Teaching

Optimal 1
Suboptimal
Optimal 2

£1402.00 £1145.50 £948.00
£1668.00 £1145.50 £948.00
£1364.00 £1145.50 £948.00

[ 266 ]

Supervision
M ax
M in

Tutorial

Total cost of staffing
M ax
M in

£174.00
£174.00
£174.00

£2721.50
£2987.50
£2683.50

£2524.00
£2790.00
£2486.00

Table V
The c o sts pe r stude nt pe r ye ar appo rtio ne d to
c o urse s
Area

Cost

Teaching – maximum suboptimal position £2,987.50/ 3
Plus transport
£80.00
Plus reprographics
£25.00
Total
£1,097.00

d ocu m en t . Th e on ly effect ive w ay in wh ich
t h e ev id en ce fr om t h e d ocu m en t ca n b e ch a llen ged is if it fa ils t o r eflect or d escr ib e t h e
op er a t ion of t h e cou r se in p r a ct ice.

Analysis in relation to approaches
to cost management
By a n a ly sin g d efin it ive cou r se d ocu m en t a t ion it is p ossible t o id en t ify a n d cost cou r ses
in t er m s of t h eir d ir ect cost s q u it e
a d eq u a t ely. Un for t u n a t ely in d ir ect , cr osscou r se a n d cen t r a lly a d m in ist er ed cost s a r e
m u ch less ea sy t o a p p or t ion a n d so b ecom e
h id d en t o t h ose wor k in g a t t h e p oin t of d eliv er y.
T h e st e p s t h a t Bir ch (1989) su ggest s for
ca lcu la t in g t h e cost of cou r ses is well st r u ct u r ed a n d sy st em a t ic. It wou ld h ave b een
in t er est in g t o com p a r e t h is a p p r oa ch w it h
t h e for m u la su p p lied by J on es (1989) bu t t h e
d ocu m en t a t ion ava ila ble w a s u n a ble t o su p p ly a ll of t h e n ecessa r y d a t a . In a n y ca se t h e
for m u la is in su fficien t ly flexible t o b e a ble t o
t a k e in t o a ccou n t st r u ct u r a l ch a n ges w it h in
t h e cou r se ca u sed by st u d en t s t a k in g d iffer en t su b ject sp ecia lism s.
F ield en a n d Pea son (1989), wh ilst n ot offer in g a p a r t icu la r a p p r oa ch t o cost in g exer cises, d o id en t ify som e of t h e p r oblem a t ic
fea t u r es t h a t wou ld h ave t o b e bu ilt in t o a n y
com p u t a t ion a l a p p r oa ch – in p a r t icu la r t h e
issu e of t h e m a r gin a l st u d en t wh o wou ld
n ecessit a t e t h e in t r od u ct ion of a n a dd it ion a l
t ea ch in g gr ou p a n d in d oin g so sign ifica n t ly
r ed u ce t h e effect ive SSR, p ot en t ia lly t o n on v ia ble levels.
ZBB m et h od s of ed u ca t ion a l bu d get in g
offer t h e n ea r est a p p r oa ch t o cost cen t r ed (a s
op p osed t o cost cen t r e) p la n n in g ava ila ble t o
m ost ed u ca t ion a l in st it u t ion s. It en cou r a ges
ed u ca t ion a list s t o con t in u a lly r ea p p r a ise t h e
cou r ses ava ila ble in t er m s of t h e va lu e t h ey
offer. Aw a r en ess of t h e cost s sh ou ld n ot b e
w it h h eld or on ly p a r t ia lly r elea sed by t h e
m a n a ger ; it is a p a r t of fu lly ow n in g a cou r se
w h et h er it b e in a cou r se m a n a gem en t ,
t ea ch in g or lea r n in g r ole.

Ne il Burto n
Calc ulating the c o st o f an
unde rgraduate Initial Te ac he r
Educ atio n (ITE) c o urse
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 2 / 6 [1 9 9 8 ] 2 6 0 –2 6 9

Coom b s a n d Ha lla k (1987) clea r ly k n ow t h e
va lu e of a ccu r a t e fin a n cia l in for m a t ion :
good ed u ca t ion a l cost a n a ly st s ca n lit er a lly
b e wor t h t h eir w eigh t in gold – p r ov id ed
t h ey a sk t h e r igh t q u est ion s a n d a r r ive a t
r esp on sible a n sw er s, a n d p r ov id ed t h e
d ecision m a k er s u n d er st a n d t h e a n sw er s
a n d t a k e t h em ser iou sly.

P r oblem s a p p ea r t o a r ise wh en t h e cost a n a ly st s a r e eit h er n ot list en ed t o or t h eir m essa ge is n ot fu lly sh a r ed w it h a ll con cer n ed
p a r t ies. Wh en m a n a ger s h ave a ccess t o t h e
in for m a t ion con cer n in g cost s, t h is w ill n eed
t o b e com m u n ica t ed t o t h e cou r se d esign a n d
d eliver y t ea m for a p p r op r ia t e a ct ion t o b e
t a k en .

The nature of financial
management in relationship to the
planning of new ITE courses
ITE cou r ses a r e, possibly, som e of th e m ost
h igh ly r e gu la ted cou r ses in Br itish h igh er
edu ca tion . Th e con ten t, str u ctu r e, a n d qu a lity th r esh old of cou r ses, th e stu den t n u m ber s
for ea ch cou r se a n d in stitu tion offer s a n d th e
fees per stu den t a r e a ll set, to a ver y su bsta n tia l de gr ee, cen tr a lly. With even gr ea ter cen tr a l con tr ol of th ese cou r ses, in ter m s of a
“N a tion a l Cu r r icu lu m ” for ITE bein g con sider ed for th e n ea r fu tu r e, in stitu tion s n eed to
be gin to con sider h ow th ey ca n con tin u e to
en su r e th a t th eir ITE cou r ses m ay con tin u e
to be seen a s distin ct fr om oth er s.
For m a n y pr ospective stu den ts, loca tion is
becom in g m or e of a n issu e a s r edu ction s in
stu den t gr a n ts m a k e ch oosin g a n in stitu tion
close to h om e a n in cr ea sin gly a ttr a ctive
pr ospect. Bu t for th e m a jor ity of stu den ts th e
m a jor im per a tive w ill be ga in in g a ccepta n ce
on th e “best” cou r se a t th e “best” in stitu tion .
With both cou r se qu a lity a n d cou r se fees
bein g “levelled”, in stitu tion s w ill h ave to
exa m in e th eir costs m ost ca r efu lly to iden tify
h ow th eir cou r se(s) w ill be a ble to a ffor d
som eth in g a bove oth er cou r ses for th em to
m a in ta in a n “edge” over th eir edu ca tion a l
r iva ls. Wh a tever th e decision – sch ools fu lly
in te gr a ted in to th e a ssessm en t pr ocess, ava ila bility of tech n ologica l r esou r ces, in ter n a tion a lly r en ow n ed tea ch in g sta ff – th er e w ill
be cost im plica tion s. It is th r ou gh ca r efu l
costin g of cou r ses fr om th e ou tset th a t th e
k n ow ledge of wh a t ca n be a ffor ded in ter m s of
“extr a s” w ill becom e ava ila ble.
In th e in sta n ce of th is ca se stu dy, th e de gr ee
of per son a l tu tor su ppor t for th e stu den t to
en su r e th eir pr ofession a l a n d a ca dem ic
pr ogr ess w a s set a t a level gr ea ter th a n it
m igh t h ave been a t a n oth er in stitu tion . Th is
a ction h a s con sider a ble cost im plica tion s in

ter m s of tu tor tim e, possibly th e m ost expen sive (per stu den t) r esou r ce th a t m ost in stitu tion s h ave to wor k w ith .

The costing of ITE courses in the
wider perspective of higher
education
If, a s in stitu tion s a r e cla im in g du r in g cu r r en t
sa la r y n e gotia tion s, pr esen t in com e is ba r ely
a dequ a te to cover costs, th en it follow s, fr om
th e ca lcu la tion s offer ed a bove, th a t th e m a jor ity of costs m u st be dir ectly th e r espon sibility
of cen tr a lly a dm in ister ed ser vices r a th er
th a n dir ectly a ttr ibu ted to in dividu a l cou r ses.
On ly £1,100 of th e £2,609 fee cou ld be
a ccou n ted for by dir ect cou r se costs.
It is a ccepted th a t “top slicin g” of fees cen tr a lly is n ecessa r y for in stitu tion s to be a ble
to oper a te a s r ecogn isa ble bodies. In stitu tion a l a im s, wh ich a r e wor k ed tow a r ds for th e
good of a ll, r equ ir e fu n din g, equ ita bly, fr om
a ll in com e gen er a tin g u n its. Bu t beyon d th e
ba sic “ta xa tion ” n eeds oth er system s a r e
possible. Th e Br itish N a tion a l Hea lth Ser vice
a n d loca l edu ca tion a u th or ities h ave dem on str a ted a n oth er option – th e “in ter n a l m a r k et” a n d “loca l m a n a gem en t” r espectively. In
both ca ses a sm a ll pr opor tion of fu n din g is
r eta in ed cen tr a lly a n d th e r est is devolved to
th e poin t of u se to en a ble ser vices to be
“bou gh t ba ck ” u su a lly fr om th e sa m e body
th a t devolved th e fu n d to th em in th e fi r st
pla ce. Th is m ay a ppea r to be ju st a ba la n ce
sh eet exer cise bu t it is th e open n ess a n d
exch a n ge of in for m a tion a n d th e h eigh ten ed
aw a r en ess of cost th a t is a t issu e.
Wh er ea s in th e N HS a n d LE As th e sh a r e of
th e fu n ds is ca lcu la ted cen tr a lly, in HE th e
fees th a t in stitu tion s r eceive for cou r ses is
k n ow n a n d, in th e ca se of ITE , r ea dily iden tifia ble. To sim ply devolve th e fees obta in ed
fr om stu den ts on a cou r se (less a n in stitu tion
“ta x”) a n d r equ ir e a ll cou r ses to pay for th e
a ca dem ic sta ff, tea ch in g a ccom m oda tion ,
libr a r y ser vices, a n d a ll of th e oth er colle ge
ser vices th a t th ey m a k e u se of, wou ld m a k e
th ose wh o design a n d deliver cou r ses a n d th e
in stitu tion m a n a ger s m u ch m or e aw a r e of
costs.
Th is a ppr oa ch m ay h ave sign ifica n t im plica tion s for som e a r ea s of a ca dem ic a ctivity,
pa r ticu la r ly in ter n a lly fu n ded r esea r ch or
doctor a l stu dies. Wou ld th ey n ow be fu n ded
on ly if th ey dir ectly su ppor ted th e wor k of, or
developm en ts in , pa r ticu la r cou r ses? Or
wou ld th ey n ow be seen a s “n on -pay” r ew a r ds
for a ca dem ic sta ff ?
Wh a tever th e a ppr oa ch fin a lly ta k en it is
clea r th a t in stitu tion s m u st becom e m or e
aw a r e of t h e sou r ces of cost s a n d t h a t m ea n s

[ 267 ]

Ne il Burto n
Calc ulating the c o st o f an
unde rgraduate Initial Te ac he r
Educ atio n (ITE) c o urse
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 2 / 6 [1 9 9 8 ] 2 6 0 –2 6 9

t h a t a ll cou r ses, in d eed a ll a ct iv it ies w it h in
a n in st it u t ion , w ill n eed t o b e ca r efu lly
cost ed . It is on ly w h en t h ese d a t a a r e r ea d ily
ava ila ble t h a t d ecision s a b ou t fu n d in g a n d
bu d get a lloca t ion s ca n b e m a d e, r ela t in g fees
t o cost s, fr om a p osit ion of st r en gt h .

References
Bir ch , D. (1989), “P r ogr a m bu dgetin g for colle ges”
in Leva cic, R. (E d.), Fin a n cia l M a n a gem en t in
Ed u ca tion , OUP, Oxfor d
Booth , C. (1996), “Cou n tin g th e sm a r t m on ey,”
T im es High er Ed u ca tion a l S u pplem en t ,
N o. 1221,