The money values have been taken from the published and audited University Financial Statements, but are presented so as to highlight the implications of the University’s financial planning and achievement for current and prospective students and other stakeholders. Particular attention is paid to the frequently-asked question; “How is my £9,000 tuition fee spent?”
Income and expenditure analyses
Figure 1 sets out the elements of the University’s income by money value and proportion. Funding Councils provide grant support for both Higher and Further Education but have been reducing it in recent years and will continue to do so, to be replaced by tuition fees. The proportion of total income provided by such fees increased from 55% in 2013/14 to 64% in 2014/15 and will continue to do so as grants drop. The University’s response is to target two-thirds of the income (and specifically of the £9,000 fee) to teaching, learning and academic support (as shown by Figures 3 and 4) as an integral part of its on-going Strategic Plan.
|Funding council grants||11,277||18%|
|Research grants and contracts||97||0%|
|Other operating income||9,172||15%|
|Transfer from reserves||1,650||3%|
Figure 2 sets out the expenditure analysis by payment categories, identifying that staff-related costs absorb 53% (2013/14 56%) of the available income, a typical proportion in the staff-intensive creative sector. The detail of the “Investment” value of over £5.6million (2013/14 £4.4million) shows the low level of debt redemption (loan repayments and interest) the University currently incurs, reflecting the University’s prudence in the present uncertain financial climate: of the University’s reserves of £126million at 21 July 2015, less than £3.4million (2.7%) is represented by loans. This level will increase as the improvements at the Rochester campus continue and other developments are envisaged, but is not expected to exceed £10million.
|Staff salaries & wages||26,422||43%|
|Premises including residences||9,611||16%|
|Learning support and IT services||3,233||5%|
|Academic consumable costs||4,365||7%|
|Student welfare including bursaries||3,333||5%|
|Recruitment and marketing||1,714||3%|
Figure 3 shows the division of expenditure by activity. At first glance, “Running the Estate” looks high in proportion to the other costs at 18% (2013/14 20%), but this includes provision for the future replacement of equipment assets. It should also be remembered that the University consists of four campuses spread across two counties, limiting the scope for the most efficient deployment of resource but improving the opportunity for students to access higher education through the medium of further education in their locality, an important source of undergraduate recruitment to the University. It should also be noted that while “Residences and Trading Areas” spent over £4.4million as part of the University’s health and welfare programme, the actual subsidy for 2014/15 shown in Figure 4 was nil.
|Academic including research||23,234||38%|
|Academic support including bursaries||9,865||16%|
|Library & IT services||8,512||14%|
|Running the estate||10,988||18%|
|Residences and trading areas||4,449||7%|
Figure 4 analyses the use to which a Home/EU undergraduate student’s £9,000 fee is put, with 68% (2013/14 67%) allocated directly to teaching and learning facilities and a further 9% towards investment.
|Academic including research||12,359||36%|
|Library & IT services||5,896||17%|
|Academic support including bursaries||5,083||15%|
|Running the estate||5,125||15%|
|Residences and trading areas (net)||0||0%|
|2015/16 Budget Summary:||%||£'000||£'000|
|Transfer from reserves:||.||1,650||58,430|
|New regime tuition fee income||60%||34,800||.|
|Funding body grants||16%||9,164||.|
|Transfer from reserves||3%||1,650||58,430|