This report describes the Higher Education Funding Council for England (HEFCE) and its role and responsibilities. The HEFCE was formed in 1992 to administer higher education functions in England. As a nondepartmental public body, the HEFCE has some autonomy from the government even though it administers public money. The HEFCE distributes public money to universities and higher education colleges for teaching, research, and strengthening links with businesses and the wide community. For this reason, the HEFCE has a leading role in developing higher education policies, providing guidance and promoting good practice on a range of issues. Money from the government is allocated in principle to higher education over a 3-year period. Grant letters are issued annually to each institution setting out the precise allocation of funds and the objectives for the forthcoming year. About two-thirds of HEFCE funds support learning in institutions of higher education. This document describes various aspects of the HEFCE mission and its operations. (SLD)