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CURRICULUM REFORM STEERING GROUP
FINANCE PRESENTATION
10th APRIL 2008
CURRICULUM REFORM STEERING GROUP
University Income & Expenditure 2007
Income £M £MFunding Council Grants: Teaching 48.6 Research 15.2 Other 4.8
68.6Academic Fees: Home/EU 16.8
Overseas 13.5 Other 1.1
31.4Research Grants & Contracts 46.6Other Income: Residences/Catering 10.7
Health & Hospital 2.3Sports 1.0Other Services etc 9.7
23.7Endowments & Interest 2.3
172.6
CURRICULUM REFORM STEERING GROUP
University Income & Expenditure 2007
(continued)
Expenditure £M £M % of
Income
Staff Costs:
Academic Schools 54.4
Research Grants & Contracts 21.5
Academic Services 6.4
Residences & Catering 3.9
Estates 4.5
Administration 9.7
Other (Restructuring) 5.4
105.8 61%
Operating Costs 56.8 33%
Depreciation 8.9 5%
Interest Payable 1.0 1% 172.5
Revaluation Release 4.1
Surplus 4.3
CURRICULUM REFORM STEERING GROUP
University Balance Sheet
31/07/08
£M
Fixed Assets 292
Endowments 36
Cash 12
Loans/Leases 11
CURRICULUM REFORM STEERING GROUP
Financial Pressures/Risks
Long term sustainability versus short term spending reviews
• Spending review settlement for sector 2008/09 – 2010/11
2008/09 - 2.5%
2009/10 - 4.1%
2010/11 - 4.4%
• Staffing costs including pensions:
• Impact of tuition fees: student trends: international perspective:
• Efficient Government (shared services)
• Changing taxation status
• Act like a business but broad spectrum University, civic responsibilities, e.g. Chapel, Gardens, etc!!
CURRICULUM REFORM STEERING GROUP
Resource Allocation
Methodology for:
• Allocating the funding from SFC and all income streams to Schools
• Allocating the share of Central Services to Schools
• Allocating the University Central activities to Schools
(Surplus, Financial Adjustments, Strategic Investment Fund)
Central Services allocation based on:
• Use, are transparent and easy to update
• Cost drivers are based on student numbers, staff numbers, and space utilised etc.
My advice – keep it simple and incentivise at College level.
CURRICULUM REFORM STEERING GROUP
Income/Expenditure Changes
• Increase Research Grant by 10% gives £1.5M p.a.
• Increase RG&CS overheads/fEC by 10% gives £0.7M p.a.
• Increase unfundable fees by 10% gives £1.4M p.a.
• Reduce core staffing costs by 5% gives £4.1M p.a.
• Reduce core operating costs by 5% gives £1.75M p.a.
CURRICULUM REFORM STEERING GROUP
Some thoughts!
• Space utilisation poor, don’t “sweat” our assets. High infrastructure costs, opportunities to better utilise/share?
• Very little additional support costs in relation to growing activity, e.g. buildings, systems, processes all established so incremental cost only/help contribute to ‘fixed costs’. Would need infrastructure for home/EU students so overseas fee income provides the development income.
• Grow endowment funds. More posts funded from endowments, free up core budgets to assist with development/opportunities to expand
• Make Aberdeen courses/degrees more attractive, i.e. more apply and retained, reduce costs of other activities (clearing, advertising, etc)
• Stop running courses with 2 ftes! Monitor low level modules, are they covering real costs?• Being proactive in monitoring student experience• Increase levels of studentships/sponsorships, linking with local industry etc.