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CHAPTER 3: COSTING A COMMON SYSTEM
EXAMINATION BOARD COSTS
51. The previous chapter related to the first part of our remit, 'to consider costs of examining under the present dual system (CSE and GCE O Level)'. In this chapter we take the second part, which is to make recommendations as to how our findings 'might assist in costing possible models for a future common system of examining at 16+'. We have approached this task in the knowledge that only very generalised models can be constructed at present, and that the assumptions we make in costing them will be open to question. But as stated in Chapter 1, our aim is not to provide a definitive costing; it is to explore the range of possible costs that might be involved in operating a common system, and to provide a basis for reference and use in developing such a system. Our costings are illustrative, in that they illustrate methods of calculating possible costs rather than any precise pattern of assumed expenditure.
52. Our method in this chapter is therefore to take what seem to us the main considerations that would produce changes in expenditure under a common system, and to cost these at the highest and lowest levels of feasibility. Many of our figures are speculative, and it is not in our minds that they reflect what is likely to happen. They are intended as indicators of the cost implications of certain developments which are theoretically possible, even if often improbable in practical terms. Thus we conclude this chapter with a summary of costs which adds together all the highest figures postulated and the lowest, because without such a summary the figures may be calculated by others and quoted as if they had a reality which we do not believe they possess. Not only do most of the contributory figures contain assumptions which are themselves open to debate, but it is hardly conceivable that, even if the assumptions proved correct, all the most extreme circumstances would combine to produce a result at one end of the range, or at the other.
53. The costings in this chapter are based on the supposition that a common system of examining was in operation in 1976. The pattern of boards' expenditure on 16+ examinations in England and Wales and the levels of subject entries were as follows:
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Table 5
1976
For the purposes of this section, the administrative, salaries and premises costs of the GCE boards which cannot be directly attributed to 16+ work have been apportioned in the ratio that the boards' 16+ direct costs bear to their non-16+ direct costs. The apportionment is thus notional; it expresses the cost of 16+ examinations as a share of the boards' total costs. It does not imply that these would have been the real costs of setting up the 16+ examinations on their own.
Changes Likely Irrespective of Administrative Organisation
54. The introduction of a common system would probably influence the number of subject entries in two ways. Firstly, the elimination of double entries would reduce the total; secondly, winter entries would be likely to increase. Taking these two points in turn:
Double entries
The extent of double-entering pupils is not known but the evidence available is that it lies somewhere between a minimum of 1 per cent of total entries and a maximum of 5 per cent. These estimates imply a potential reduction in the number of subject entries of between 56,000 and 280,000.
Winter entries
These for GCE boards were just under 5 per cent of all entries (ie GCE and CSE combined) in 1976. It is not known what proportion of such entries were resits, or what effect (if any) a decision to limit winter examinations under a common system to resits in major subjects would have. It might cause a small reduction in the total; but against this must be assumed the tendency for the number to increase, as resit examinations became available to CSE (as well as GCE) candidates. A reasonable range of assumptions therefore seems to be from no increase in numbers to an increase from 5 per cent to 7.5 per cent of all entries. This would add from nil up to 140,000 subject entries.
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55. The above assumptions combine to give revised subject entries of:
(thousands) | Minimum Cost Assumption | Maximum Cost Assumption |
Existing numbers | 5,615 | 5,615 |
Double entries | -280 | -56 |
Winter examinations | Nil | 140 |
| 5,335 | 5,699 |
It is estimated that these volume changes would affect the expenditure of the examining boards to the following extent:
Table 6
Changes Likely as a Result of Changes in Administrative and Educational Arrangements
56. The guidance we have received is that examining boards are likely to come together in groups for the purpose of offering common 16+ examinations. There are certain general cost implications of board grouping which need to be considered before we explore the effects of specific administrative structures.
57. Throughout the rest of this chapter, our costings of both general and specific factors are often expressed as ranges of cost per subject entry. It is important to recognise that a seemingly small change in cost per subject entry has considerable cost implications. Thus an increase in the average cost per subject entry of 10p for an item throughout the system would add just over £0.5m to the total expenditure of boards.
General
58. Any grouping which brings different boards to work together is likely to result in both examiners and teachers within the group, and the staffs of the constituent boards, comparing the levels of payments they receive for what they regard as broadly similar work. It is of course impossible to say what the outcome would be. Payments to examiners and teachers vary between 76p and £1.34 per subject entry (average figure 96p) for CSE boards; and between 84p
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and £1.24 (average £1.00) for GCE boards. There would be a certain pressure to standardise payments and to do so at the highest rates paid by the boards within the group; certainly, boards paying markedly low rates would come under pressure to raise them. On the other hand, it may be that tasks which seem similar, and therefore deserving equal remuneration, in fact differ in important respects - for example in complexity, with implications for the time required for the task.
59. Although we assume no increase in these payments as one theoretical extreme, experience suggests that there would in fact be pressure for them to rise. If they settled around the average the increase would be about 2p; if they rose to the highest level at present paid, £1.34, the increase would be 36p. The additional cost of the first assumption would be £112,000 and of the second £2,021,000. In view of the width of this range, and the very substantial impact on costs that the higher figure represents (it is more than half the total maximum cost for any of the three models costed below - see para. 74) we considered the reality of these figures a little more closely. The figure of £112,000 seemed unduly modest, and we felt that the tendency would be for payments to examiners and teachers to rise well above this, probably to above rather than below the midpoint between the two theoretical extremes (ie £nil and £2,021,000). But the higher extreme figure seemed equally unlikely. We noted that the two most expensive boards in terms of these payments - the SREB and SWEB CSE boards - were far from typical in their styles of examining. For example, the schools in the SREB region are formed into consortia. Scripts for all modes are marked by the teachers in each school; they are then checked by teachers from another school, and a sample is checked further by the board. A per capita fee is paid for marking and moderating, and much travelling is involved. Thus the travelling costs are abnormally high. To assume that the costs of all boards would rise to the level of those for this board requires the parallel assumption that all boards would adopt a similar approach to assessment. Such an assumption can be discounted for practical purposes and the figure of £2,021,000 viewed accordingly.
60. A similar effect of any form of grouping would be the comparisons made between the salaries paid to board staffs, and it might again be argued that there would be a tendency for these to rise in certain cases. The argument is less clear here, since the salary costs per subject entry are obviously affected by the size of the board. It is therefore difficult to separate price and volume factors. If, however, it is assumed that there would be some levelling up, and if our calculations are based on present standards with no regard for changes in management, it might be reasonable to allow for a minimum of about 5 per cent and a maximum of 20 per cent. In terms of the cost per subject entry stated in the right-hand columns of the table in paragraph 53, such increases would vary between 3p and 13p, and produce an additional cost for boards between £169,000 and £730,000.
61. To be balanced against a possible increase in payment to examiners, etc, are the undoubted - although unquantifiable - savings that ought to accrue from the dialogues between constituent boards under any form of grouping, however loose. It would be strange if the dialogues did not result in boards finding that others used procedures which were less costly and/or more efficient in certain
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respects, and in boards using each other's resources or coming together to make more economic use of outside resources. Against this, however, would be a tendency in the opposite direction, for boards to want the superior facilities others already possessed.
62. The impact of a common system on the balance of board-based and school-based assessment is another factor which cannot readily be costed. The report of the Educational Study Group suggests that a wider range of assessment techniques may be necessary if a common system is to provide adequately for the range of ability now covered by O Level and CSE examinations. At present approximately 12 per cent of all 16+ subject entries are classified as Mode III. A common system might well see an increase in the already developing tendency towards a more mixed-mode approach, with many examinations containing both board-based and school-based elements; at the same time the number of pure Mode III schemes might decline. Overall, some increase in school-based assessment seems likely, and it is arguable that if this were to become a regular feature of considerably more examinations a pressure would develop for teachers to be paid for any substantial work involved, especially if participation in school-based assessment ceased to be at their individual discretion, as it is at present. The effect would be to reduce the incidence of 'hidden' costs and to increase examining board direct costs, with a consequent implication for the level of fees charged and the expenditure of the local authorities which pay them.
63. Assuming that either 15 per cent or 30 per cent more subject entries under a common system had a sufficient element of school-based assessment to justify payment; and assuming that such payments by boards to teachers ranged from 5p to 50p (the maximum payment per subject entry at present) the additional direct cost to the system would be as follows:
| (£000) % of subject entries involving teacher assessment |
| 15% | 30% |
Payment of 5p per subject entry | 42 | 421 |
Payment of 50p per subject entry | 84 | 842 |
64. We consider it reasonable to assume that under any system of board grouping some co-ordination of syllabus provision would be likely; that is to say, not all boards within a group would continue to offer syllabuses in all subjects. Even in major subjects some reduction may be possible; in minority subjects one would expect a greater degree of rationalisation, with a substantial reduction in the number of syllabuses on offer in the least popular subjects. A reduction in the number of syllabuses would of course have a substantial effect on costs. Firstly, the expenditure necessary to develop the range of new syllabuses would be affected - we cover this aspect in Chapter 4. Secondly, the annual running costs of examining would be reduced. The payments to examiners and teachers for setting papers would be lower, the printing costs would be reduced in terms of the 'setting-up' costs for papers, and boards' salary costs might be affected. We estimated that there would be a saving of £900 in annual running costs for each syllabus which ceased to be available. This amount is based on the following calculation:
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Estimated number of subject entries for each Mode I syllabus: 4700
Savings for each subject entry assumed to be:
- for payments to examiners and teachers, 10% of present payments | 8p |
- for printing and stationery, (approximately 33% of present cost) | 11p |
Total | 19p |
4700 subject entries at 19p each = £893, say £900
65. The extent of any syllabus rationalisation, however, would be likely to depend upon the administrative structure of the new system. We consider below the three possible administrative structures which you asked us to cost. For model (i) we assume that the extent of syllabus rationalisation would be so modest as not to merit costing; for model (ii) we assume a reduction of up to half in the total number of syllabuses; and for model (iii) a reduction of up to a third.
Examples of Possible Administrative Structures
(i) A structure involving a grouping of boards with some central co-ordinating machinery
66. As each board would continue to offer its examinations in the main subjects at least, it would retain all its professional and administrative staff. Provision of any central co-ordinating machinery would be likely to impose an extra cost. Liaison between boards would be considerable, and some form of liaison committee would be required which would need servicing, at an assumed annual cost (including on-costs) of £12,000 per group. The need for liaison would imply a substantial additional cost for travelling and subsistence expenses, for which we allow £10,000 per group.
67. Assuming five groups altogether, the one for Wales would require no additional expenditure as it is already federated. On the basis of four groups for England, the maximum annual extra cost for this model would thus be £48,000 for liaison plus £40,000 for expenses, giving a total of £88,000.
(ii) An integrated grouping of boards
68. This model has similarities with that at (i) above but it is assumed that central co-ordination would be stronger, and would include the processing of candidate entries. A joint academic board and a measure of centralised financing also seem likely under such a model. These would require administrative and secretarial servicing. Whilst much of the staffing requirement might be expected to come from existing resources, we assume that three administrative staff, with clerical and secretarial assistance, would be needed for each group, and cost these (on the basis of existing salaries paid by boards) at £48,000 per group. And again we assume an additional burden on travelling and subsistence expenses, costing £10,000 per group. (For this model Wales is included, but without any extra travelling and subsistence expenses assumed).
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69. For this model we assume that the number of syllabuses required overall is likely to be reduced by up to half, and in the next chapter we calculate that on the basis of present figures the maximum number of new syllabuses required (ie assuming no reduction) would be in the region of 1,200. Thus we are postulating that there might be a saving of up to 600 syllabuses at a marginal cost of £900 each. Assuming, to provide a range, a minimum reduction of 400 syllabuses as well as the maximum of 600, the total saving would be between £360,000 and £540,000.
The net effect would therefore be as follows:
Salaries: | 5 groups at £48,000 per group | £240,000 | £240,000 |
Expenses: | 4 groups at £10,000 per group | £40,000 | £40,000 |
Syllabuses: | 600 syllabuses at £900 each | £-540,000 | |
| 400 syllabuses at £900 each | | £-360,000 |
| Net effect | £-260,000 | £-80,000 |
Thus the reduction in expenditure is dependent on the assumed reduction in the number of syllabuses. For example, if only 310 syllabuses were saved, the net effect would be no change in expenditure under this model.
70. A further saving should be assumed for the likely effect on most of the constituent boards under this model of a more centralised administration. Savings might well accrue, for example, from a reduced requirement for the separate administration of minority subjects and processing subject entries. The extent of such changes is speculative, and much would depend on the administrative style adopted by each group, but if it were assumed that each reduced its staff complement by one subject secretary and one administrative assistant, a reasonable saving might be in the region of £12,000 per board, or £264,000 altogether (ie £12,000 x 22 boards).
(iii) A system involving fewer boards than at present
71. In this model the number of boards would be reduced to 15, of which one would cover Wales. For the purpose of illustration we assume that the 14 largest English boards would remain in existence. No regard has been paid to the geographical implications of this nor to the availability of staff or adequacy of premises; it is simply a convenient basis on which to cost.
72. In 1976 the 15 boards provided for 4,994,000 subject entries, ie 89 per cent of the total for England and Wales. The actual numbers were:
Wales | 286,176 |
English CSE Boards | 1,897,532 |
English GCE Boards | 2,810,184 |
| 4,993,892 |
The subject entries for the remaining six boards totalled 621,110. The following table divides 1976 expenditure into two categories:
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Table 7
| The 15 Boards | The 6 Boards | Total |
Payments to examiners and teachers | 3,966 | 489 | 4,455 |
Expenses to examiners and teachers | 954 | 112 | 1,066 |
Printing, stationery and materials | 1,751 | 131 | 1,882 |
Carriage and postage | 292 | 19 | 311 |
Salaries and wages | 3,185 | 541 | 3,726 |
Computer | 569 | 58 | 627 |
Other | 580 | 98 | 678 |
Premises | 611 | 121 | 732 |
Total expenditure | 11,908 | 1,569 | 13,477 |
73. If the 15 boards could provide for the extra 621,000 subject entries (ie an extra 12 per cent on their present load) without increasing expenditure, the total saving would be in the region of £1.5m (£1,569,000). However, certain items of expenditure, eg payments to examiners, vary more or less in proportion to the size of the subject entry, so some additional expenditure would be incurred by the 15 boards. We suggest the following revised pattern of expenditure:
Table 8
| Basis of figures in Column (4) | Total expenditure of the Boards | LESS additional expenditure to be incurred by the 15 Boards | (£000) net savings |
Column (1) | (2) | (3) | (4) | (5) |
Payments to examiners and teachers | 90% of Col (3) | 489 | 440 | 49 |
Expenses to examiners and teachers | 100% of Col (3) | 112 | 112 | - |
Printing, stationery and materials | 50% of Col (3) | 131 | 66 | 65 |
Carriage and postage | 100% of Col (3) | 19 | 19 | - |
Salaries and wages | 27½% of Col (3) | 541 | 150 | 391 |
Computer | 50% of Col (3) | 58 | 29 | 29 |
Premises | 31% of Col (3) | 121 | 38 | 83 |
Other costs | 27½% of Col (3) | 98 | 27 | 71 |
| | 1,569 | 881 | 688 |
On these assumptions the reduction in expenditure from reducing the number of boards to 15 would be in the order of £688,000.
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Summary of cost changes
74. As promised in paragraph 52 above, and with the reservations there stated, we now summarise the theoretically possible range of costs of running a common system arising from the assumptions made in this chapter.
Table 9
Items common to all models
1976
| Paragraph reference | £000 minimum cost | £000 maximum cost |
Double entries | 55 | -209 | 42 |
Winter entries | 55 | - | +325 |
Examiners' and teachers' rates | 59 | Nil | +2,021 |
Board salary rates | 60 | +169 | +730 |
Teacher assessment | 63 | +42 | +842 |
| | +2 | +3,876 |
Table 10
1976
£'000
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PREMISES COSTS
75. We were also asked to consider what the effect would be on costs if the university premises of GCE boards were not to be available for use under a common system. This section of the chapter applies only to England. With the exception of the AEB the six English GCE boards have close university links that influence their accommodation costs. With one exception their accounts do not include a charge for the amortisation of their buildings.
76. In order to estimate this effect we have had to make assumptions about:
(i) the area used for 16+ examinations work;
(ii) the cost(s) per square foot/square metre;
(iii) any amounts already included in 16+ examination costs.
Estimates of Area
77. The premises of GCE boards accommodate O Levels, A Levels, overseas examinations and private candidates. The actual space used for 16+ work is therefore not available. Four methods of estimating the likely space have been tried and are set out below. The results give a range for all the boards from 131,000 sq. ft/12,170 sq. m up to 171,000 sq. ft/15,886 sq. m.
a. Assume that each GCE subject entry requires the same area as the average CSE entry - total 131,000 sq. ft/12,170 sq. m.
b. Assume that the actual area of the six boards is split between 16+ and other examination work in the ratio of their direct expenditure - total 143,000 sq. ft/13,285 sq. m.
c. Assume that the actual area of the six boards is split between 16+ and other examination work in the ratio of their subject entries - total 158,000 sq. ft/14,678 sq. m.
d. Assume that the area derived from a. above be increased in the ratio that the average area per GCE board employee bears to the average area per CSE board employee - total 171,000 sq. ft/15,886 sq. m.
Cost Per Square Foot/Square Metre
78. The terms of leasing suitable office, sorting and storage accommodation vary greatly from one place to another and from one time to another. For example, the lowest 1976 leasing rate for CSE boards was 65p per square foot, for the SWEB, and the highest £5.14 per square foot, for the Middlesex Board (£7 and £55.43 per square metre respectively). But these were historic costs and cannot be taken as representing what the cost would have been of leasing accommodation for the first time in 1976. We therefore had inquiries made of the Chief Valuer's Office, which suggested that the range of such costs in urban areas around the country (excluding the more expensive areas of inner London) would have been from £1.95 to £6.04 per square foot (£21 and £65 per square metre) in Manchester and Croydon respectively; an intermediate cost, for both Oxford and Cambridge, would be £4.18 per sq. foot (£45 per sq. metre).
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79. On this basis the annual cost at current prices of replacing university premises used for 16+ examining work would range from:
| 131,000 sq ft (12,170 m2) at £1.95 per sq ft (£21 per sq metre) - £255,000 |
to | 171,000 sq ft (15,886 m2) at £6.04 per sq ft (£65 per sq metre) - £1,032,840 |
or | 171,000 sq ft (15,886 m2) at £4.18 per sq ft (£45 per sq metre) - £714,780 |
These figures represent 5p, 18p, and 13p per subject entry respectively.
Existing Charge
80. The London GCE board included in its 1976 accounts the rental charges for the premises they occupy. Thus the effect on 16+ examination costs of the withdrawal of university premises would not be the full amount as shown in the foregoing sub-section. It would need to be reduced by about £100,000 - an estimate based on the proportion of the London total premises costs of £343,600 that may be said to represent the rental element for 16+ examinations.
Equipment Costs
81. Closely linked to the availability of university premises is the use of the university equipment within them - computers, accounting machines, printing equipment, etc. Although these would presumably also cease to be available it would not be sensible to assume that they would all need to be provided new elsewhere. Nevertheless, some additional expenditure would be involved. Precise figures for the value of existing equipment are not available, but a total replacement cost of £4m has been suggested. Assuming that between 25 per cent and 50 per cent of this amount might be needed, and assuming also the average life of such equipment to be 10 years, the annual cost involved would be between £100,000 and £200,000, representing a range from 2p to 4p per subject entry.
External considerations
82. All the assumptions made in this chapter have been related directly to the examinations system as it operated in 1976. Obviously by the mid 1980s, when a common system might be implemented, the situation will have changed and a number of different factors will bear on whatever examining system then exists. The broad changes we envisage are declining school rolls, changes in the take-up rate of examinations, variations in subject popularity, and general economic pressures. These are not all of a kind. The first has the most obvious bearing on costs, but whilst the decline in school population itself can be forecast with reasonable accuracy, its effect on examining costs cannot. The other factors seem entirely unpredictable and we have felt unable to attempt any quantification of their effect. Nor have we seen it as being within our remit to do so, since we are concerned with how the introduction of a common system will affect costs, not with what factors will affect them irrespective of changes in examinations.
83. The decline in school rolls will of course significantly affect the number of candidates entering for 16+ examinations in the 1980s. The current estimates are that candidate numbers in summer examinations will rise from the 1976 level of 1,227,000 to 1,420,000 in 1982, but will drop thereafter each year to about 1,180,000 - and still be dropping - in 1990. But under any examining system
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payments to examiners for marking scripts will reduce in line with the decrease in candidate numbers; other payments, such as the cost of setting examination papers will probably not reduce at all; and other costs, such as boards' staff salaries, printing and stationery, will decrease but not in proportion to the reduction in numbers. The impact is therefore to reduce total costs while the average cost per subject entry (and hence fees) will tend to rise.
84. The decline in school rolls may have differing implications for the three illustrative administrative models above, and our costings of these should be considered in the light of this factor. But some savings could be envisaged whatever administrative solution was adopted.
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CHAPTER 4: CHANGEOVER COSTS
85. This term is used to cover the non-recurring effect on major items of expenditure of changing to a common system of examining. Many such will be 'hidden' costs and local education authority costs, which we have touched on in the latter part of the previous chapter. Thus we discuss here mainly the implications of changing to a common system for the examining boards, although there is much that follows that has relevance for schools and all of it is of concern to the local authorities.
Syllabus Development
86. A major factor in changing over to a common system is the need to develop a range of new syllabuses. It has been assumed that new syllabuses will need to be developed within a common system, although we make some exception to this rule when we come to Mode III syllabuses. In order to estimate syllabus development costs a number of assumptions have to be made.
a. The number of syllabuses to be developed. This must depend on the groupings and decisions on the extent to which each board provides its own syllabus(es) for each subject.
b. The amount of work involved in creating a syllabus. This will vary and the cost figures offered below are necessarily a very rough estimate of an average volume of activity. They take account of the probability that some more complex subject syllabuses may involve a great deal more work - and thus be much more costly to develop - than others.
c. The cost of subject panel/working party meetings. This is obviously dependent on b. and will again vary between subjects.
d. Consultation costs. These take the form of regional or national conferences, and postal questionnaires - either complementing each other or as alternatives. An allowance for each has been made in the model in paragraph 89 below.
e. Boards' administrative costs. These will include the issue of circulars, printing new syllabuses, extra payments to examiners and travel/ subsistence costs.
87. To arrive at the number of syllabuses that would need to be developed, we extracted figures from the schedules completed by boards at the time of the accountants' visits. These show:
Mode I Syllabuses
CSE board (8 returns) 36; 78; 35; 47; 62; 34; 28 and 25
GCE boards (7 returns) 89; 50; 62; 44; 163; 78 and 162
Mode III Syllabuses
CSE boards (12 returns) 397; 1,163; 642; 28; 358; 266; 1,400; 78; 870; 1,200; 3,000 and 154
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88. The cost of preparing a syllabus is more problematical. The May 1976 publication of the Standing Conference of Regional Examinations Boards, 'The Development of Syllabuses' offers a cost for CSE boards of £1,400. The information we have for GCE boards is more impressionistic; the AEB have suggested £5,450 but other experience suggests that a cost of between £4,000 and £5,000 would be nearer the mark for the GCE sector.
89. The wide difference between the level of cost for the two types of board is partly accounted for by the inclusion in the GCE figures of elements for overheads, staff salaries etc, not included in the CSE figures. For our purposes, the CSE approach is the more relevant, since the aim is to identify only the necessary additional cost of activities caused by changing to a common system, not to allocate total board expenditures across certain headings. Nevertheless, account has to be taken of higher GCE board costs in this respect, and allowance made for the possibility that the level of activity may be such that additional staff and/or advisers may have to be employed on a temporary basis. We also recognise that the development costs will vary greatly from one subject to another in preparing for a common system. The need to achieve a satisfactory result will always be paramount and, in the major subjects particularly, must imply wide consultations and a high level of activity. With all these considerations in mind, and after discussion with the Schools Council, we have taken a figure of £3,500 as the average cost for constructing a new syllabus under a common system.
An estimate of the cost of syllabus development:
Mode I-type syllabuses
90. By reference to the statistics above, the maximum number of new syllabuses would be in the region of 1,200 - ie based on 14 CSE boards at 40 syllabuses each, and eight GCE boards at 80 syllabuses each. But such a figure is almost certainly too high. It takes no account of the overall number of syllabuses reducing under a common system if boards form themselves into groups, nor of the possibility that some syllabuses designed for a limited ability range might not change. In Chapter 3 we postulated possible reductions in the numbers of syllabuses needed under certain administrative structures, and the same assumptions are carried through in our calculations below. Thus, on the basis of 1,200 syllabuses at a development cost of £3,500 each, we arrive at a total development cost of £4,200,000; for 800 syllabuses the total cost would be £2,800,000; and for 600 syllabuses it would be £2,100,000.
Mode III-type syllabuses
91. In terms of examining board expenditure, the development and moderation costs of Mode III syllabuses are not high. Typically, rates of £10 are paid for each of these two stages although such payments are not of course intended to reflect the economic cost of the work that has been put in; the element of 'hidden' cost in such work has been referred to earlier. Board statistics show that approximately 12,000 Mode III syllabuses exist. It is improbable that all these would need to be revised in the context of a common system; indeed a great many, particularly those devised for entirely local purposes, would not. Assuming therefore that some 5,000 would require substantial revision at a cost of £20 each, the expenditure involved would be £100,000.
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Normal development costs
92. Most examining boards have a programme of continuous revision of their syllabuses, whereby each comes up for a major review every five years. This does not mean, however, that each undergoes a substantial revision every five years. The proportion that do is not known, but we have assumed 50 per cent, ie 600, being half the 1,200 arrived at in paragraph 90. This implies that 120 major syllabus revisions would take place per year throughout the system if no work in developing common syllabuses took the place of such activity.
93. We have taken the length of time available for developing syllabuses for a common system to be either three or five years. The resultant annual costs are expressed in the table below.
Table 11
No. of Mode I syllabuses to be reviewed | 1,200 (maximum) | 800 (Model 2) | 600 (Model 3) |
Cost of Model at £3,500 each Mode III Revision | £000 4,200 100 | £000 4,200 100 | £000 2,800 100 | £000 2,800 100 | £000 2,100 100 | £000 2,100 100 |
Total cost of revision | 4,300 | 4,300 | 2,900 | 2,900 | 2,200 | 2,200 |
Annual cost incurred over 3 and 5 years respectively in each case | 1,433 | 860 | 967 | 580 | 733 | 440 |
Less current costs of a normal year 1/10th [(1200 x £3,500) + £100,000] | 430 | 430 | 430 | 430 | 430 | 430 |
Net annual cost of revision | 1,003 | 430 | 537 | 150 | 303 | 10 |
Equivalent cost per subject entry | 18p | 8p | 10p | 3p | 5p | - |
94. Thus the annual additional cost might be £10,000, if half the syllabuses were produced over a five-year period. Although the table costs the other end of the range, with 1,200 syllabuses being produced over three years, this seems to us in practice an impossible undertaking. A five-year period would surely be required, and the maximum annual cost which we regard as practicable is therefore the £537,000 representing the production of 800 syllabuses over three years.
Board Staffing
95. In Chapter 3 we costed three alternative administrative structures that were theoretically possible under a common system. It is clear in model iii, and implicit in model ii, that some reduction in the permanent staff of boards would result from the reorganisations at least in the longer term. Such reductions would flow from the reorganisation process in each case, rather than from the introduction of a common system. That is to say, they result if, for whatever reason, one board merges with another or otherwise goes out of business. It may be that in the next decade the decline in secondary school rolls would in any case oblige boards to contemplate such mergers or closures, irrespective of possible changes in the structure of examinations. Nevertheless, if it were introduced, a common system would obviously be a major factor in any rationalisation that came about and we have costed in models ii and iii the savings that
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might follow from that development in terms of staff reductions. Such reductions would be likely to occur in the rather longer term, starting only after the completion of the first period of development and preparation for a common system - a period in which we envisage boards needing all their experienced staff.
96. If staff do become redundant as a result of the introduction of a common system, the need to make appropriate provision for the individuals concerned should be seen as a changeover cost in this context. The terms of such provision are of course outside our remit. We are in no position to offer any costing for model ii, but the number of staff involved is unlikely to be great and the total expenditure would be modest; for an outcome on the lines of model iii the cost would be higher, as implied in the table in paragraph 73.
Computer Costs
97. A change to a common system of examining would have some short-term effect on boards' computer costs, in the form of additional expenditure on programming and development. This should, however, be offset, in models i and ii at least, by all boards within a group adopting similar practices and procedures derived from existing ones. As board expenditure was only £627,000 on this item, we have assumed that any net increase would be minimal.
'Hidden' Costs
98. We described in Chapter 2 the findings from the visits made to 23 schools by members of HM Inspectorate and the team of accountants, offering in effect a retrospective statement about the academic year 1976-77. In considering the likely effects on 'hidden' costs if a common system of examining were introduced it is scarcely practicable to go beyond generalised statements. In the run-in period for a new system there would clearly be a substantial increase in work on developing syllabuses, above all in those subjects not covered by the feasibility studies and joint examinations which have been mounted. A great deal of work would be required in all main subjects, representing a major 'hidden' factor in changeover costs. Teachers would be involved in preparing for the new system not only within their schools, but in board subject panel and working party meetings, and in attending regional or national consultative conferences. It is the extent to which all this activity would impinge on school time, and thus school resources, that would determine the extent of the 'hidden' costs.
School and LEA Costs
99. Other pressures on schools' and local education authorities' expenditures must also be assumed. New syllabuses imply at least the possibility that new textbooks and other teaching materials will be required, and provision of these might well show a sharp increase during the changeover period, with obvious implications for school capitation allowances. Furthermore, local education authorities would no doubt wish to take account in their in-service training programmes of the desirability of teachers being fully prepared to meet the educational requirements of the new system, including possible developments in assessment methods.
100. Undoubtedly such short-term additional costs would be felt within the schools and authorities. It seems reasonable to suppose, however, that the longer-term prospect would be more beneficial in costs terms, if the assumption is accepted that the total number of syllabuses would settle at a level below what is current in the dual system.
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ANNEX A
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Table 4
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ANNEX C
Form 1
THESE PAPERS WILL BE TREATED IN CONFIDENCE
16+ EXAMINATIONS: COST STUDY GROUP
Notes for all questions are appended
Data for Academic Year 1976-77
Name of HMI ......................... and Accountant ............................
1. No. of pupils on roll
Year I ...... | Year V ...... |
Year II ...... | Year VI ...... |
Year III ...... | Year VII ...... |
Year IV ...... | Year VIII ...... |
| Total ...... |
2. No. of teaching staff
(a) Full-time no. ..........
(b) Part-time no. ..........
(c) Part-time (FTE) ..........
3. Description of the timetable
4. Summary of teacher deployment for the whole school. Excluding invigilation.
Periods per week
(a) total no. of class teaching periods per week ..........
(b) total no. of non-teaching periods per week ..........
(c) total no. of periods per week ..........
(d) no. of periods in (b) allocated specifically for work in connection with GCE O/CSE examinations ..........
Number of periods within school hours that have been used in the year 1976-77 on:
Periods in the year
(e) work undertaken within the school in connection with GCE O/CSE examinations ..........
(f) work undertaken outside the school in connection with GCE O/CSE examinations ..........
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5. Special comments from Headteacher
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Form 1 (contd.)
7. Administrative, secretarial and clerical staff
a. total no. of staff (FTE)
b. description of examining duties and estimates of times and volumes
8. Laboratory and workshop technicians, etc
9. Printing and photocopying
10. Telephones
11. Postage
12. Packing
13. Examination materials
14. Payments received in respect of examinations
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NOTES FOR COMPLETION OF FORM 1
1. Item 1 | (No. of pupils on Roll) |
| Year I denotes 11 year olds |
| Year II denotes 12 year olds etc |
2. Item 2 | (No. of Teaching Staff) |
| Please base the full-time equivalent (FTE) numbers of part-time staff on the number of periods of attendance |
3. Item 3 | (Description of the Timetable) |
| Please indicate the number of periods and the length of each in a normal school week eg 35 periods of 40 minutes each |
4. Item 4 | (Summary of Teacher Deployment) |
| Please extract from a master timetable or from the individual teacher timetables the total class contact and non-teaching periods |
5. (a)-(d) | periods per week should be recorded |
(e)-(f) | periods per year (for 1976-77) should be recorded |
6. (e) & (f) | the number of periods that are actually used because of examination work is required. If possible details of the numbers of teachers receiving them and the reasons e'tc should be noted |
7. (f) | work undertaken outside the school: this includes, for example, agreement trials, moderation meetings and attendance at examination board subject panel meetings for which the teacher is not paid by the board |
8. Item 5 | (Special Comments from Head) |
| You may wish to comment on the number of periods spent in invigilation of actual (not 'mock') GCE O/CSE examinations.
In addition the comments may include such items as:
- who organises the examination in the school
- whether a responsibility allowance is given for work in connection
with examinations
- the extent to which colleagues cover for teachers absent on examination business
- whether supply teachers are available when staff attend board panels and meetings
- the number of weeks during which the normal timetable is adhered to
- the length of the examination season
- the incidence and effect of winter examinations
- the effect of administrative practices of the examining boards |
9. Item 6 | (Number of Subject Entries) |
| The number of all the entries for Summer 1977 Examinations is required. As far as possible the examinations should be fitted into the broad subject headings that have been entered on the form |
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10. Items 7-8 | (Administrative, Secretarial and Clerical Staff) (Laboratory and Workshop Technicians etc)
Details of the amount of time devoted to examination matters by the staff are required
eg school clerical assistant spends one week each autumn completing the entry forms or two days on the distribution of the results and certificates; also two days each year are spent typing and duplicating Mode III examination papers:
- subjects were .............., .............. and .................;
- no. of papers were .............., .............. and .................;
- no. of copies were .............., .............. and .................; |
11. Items 9-12 | (Printing/Photocopying, Telephones, Postage, Packing Costs)
Please record the actual amounts or estimates of these costs. Wherever possible the information should include the cost and quantity eg x copies, x subjects, x letters to examiners etc |
12. | Where feasible GCE O Level and CSE expenditure should be segregated. (If it is not possible to separate GCE O-from A-level expenses this must be indicated) |
13. | These items should not include any co stings of staff time |
14. Items 11-13 | Wherever they are distinguishable costs arlSmg from project/course/practical work should be separated out |
15. Item 13 | (Examination Materials)
This section should include all the materials used in the examination except those provided by the examination board. They could include, in some cases, answer books, pens and pencils, ordnance survey maps; science specimens, cookery and needlework materials etc. A distinction should be drawn between costs borne by the school and borne by parents (see Note l5 below) |
16. Item 14 | These will include payments of materials used in examinations but taken home and in some cases payments of fees (eg for double entry) |
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16+ EXAMINATIONS: COST STUDY GROUP
Form 2
1. Position in School eg Head of Department ..............................
2. Special Examination Duties ..............................
3. Subjects Taught ..............................
4. Summary of Timetable
Total number of class teaching periods per week
Year I ...... | Year V ...... |
Year II ...... | Year VI ...... |
Year III ...... | Year VII ...... |
Year IV ...... | Year VIII ...... |
(a) | Total ...... |
(b) total number of non-teaching periods per week ......
(c) grand total of periods per week ......
Number of non-teaching periods within school hours that have been used in the year 1976-7 on:
(d) work undertaken within the school in connection with GCE O/CSE examinations ......
(e) work undertaken outside the school in connection with GCE O/CSE examinations ......
PLEASE SEE NOTES FOR COMPLETION
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NOTES FOR COMPLETION OF FORM 2
1. | Each member of staff completes a separate form. |
2. Item 3 | (Subjects Taught) Please enter your main subject first. |
3. Item 4 | (Summary of Time-Table) Work outside school would include - for example - attendance at examination board subject panels, at agreement trials and undertaking necessary field work. |
4. Item 5 | (Total Time spent on Examination Work) The purpose of this part of the form is to record the total amount of time (in and out of school hours) you spend on examination duties. The nature of those duties, whether fees and expenses are received etc. |
5. Item 5 | Exclusion Time spent on examination work which is an extension of your normal duties (see vertical list of activities) should be recorded. The time spent on examination work for a Board on a purely individual basis eg on marking scripts or discharging the function of a chief or assistant Examiner .must be excluded. |
6. Item 5 | Horizontal headings Time in school hours, and time outside school hours: please estimate the annual total of hours. Advance knowledge - whether you know in advance if time is to be spent in school hours. Receipts of fees or expenses: a YES/NO answer will suffice for expenses but the actual amounts of fees paid would be helpful. |
7. Item 5 | Vertical heading |
(a)-(d) | Please exclude 'mock' examinations throughout. |
(g) | Board courses. These would be run by the Board specifically for teachers whose subjects at their respective schools were examined by a method including internal assessment. |
(k) | Administration. It would be desirable to know what time is spent on:
(i) Examination Entries
(ii) Arranging the examination time-table, and invigilation, and cover for colleagues.
(iii) Making physical arrangements eg examination rooms' layout.
(iv) Despatching of scripts etc.
(v) Receipt of results, their processing, publishing and statistical analysis. |