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During 2002 and 2003, the OECD Programme on Institutional Management in Higher Education (IMHE), jointly with the Higher Education Funding Council for England (HEFCE) managed a project on financial management and governance of higher education institutions. The project examined strategic financial management needs in the changing policy and funding environment in higher education, with particular reference to the financial sustainability of institutions. This report is aimed at policy makers and senior managers and governors in higher education who are concerned about the ability of higher education institutions to deliver educational goals in a sustainable way. Eight countries participated in the project: Australia, England, Germany, Ireland, Japan, Netherlands, Sweden, and the USA. In each country, a national author produced a report on the higher education policy context, and on the systems of governance and management of higher education with particular reference to their impact on the financial viability of higher education institutions. These national reports provide a valuable base of knowledge on the current status and changing objectives of policies, governance, funding, and management of higher education institutions in these countries. The project was steered by a Task Group with representatives of the eight participating countries, the IMHE, and HEFCE.