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 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 64% in 2014/15 to 69% in 2015/16 and will continue to do so as grants are reduced further. The University’s response is to target over 60% of the income (and specifically tuition fee income) 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||9,266||16%|
|Research grants and contracts||104||1%|
|Other operating income||8,418||14%|
|Transfer from reserves||0||0%|
Figure 2 sets out the expenditure analysis by payment categories, identifying that staff-related costs absorb 56% (2014/15 53%) of the available income, a typical proportion in the staff-intensive creative sector: the increase arises entirely in the ‘Employer Contributions’ (to National Insurance and Pension funds), a situation replicated in the ‘Pension Provisions’ charges shown in Figure 3 resulting from sector-wide circumstances outside the University’s control. The detail of the “Investment” value of over £4.4 million (2014/15 £5.6million) shows the University’s preparations for major building developments commenced in 2015/16 and to be funded by medium-term loans.
|Staff salaries & wages||24,754||42%|
|Premises including residences||9,184||16%|
|Learning support and IT services||3,748||6%|
|Academic consumable costs||3,611||6%|
|Student welfare including bursaries||1,534||3%|
|Recruitment and marketing||2,389||4%|
Figure 3 shows the division of expenditure by activity. At first glance, “Running the Estate” looks high in proportion to the other costs at 16% (2014/15 18%), but this includes provision for the future replacement of equipment assets and is a further proportionate reduction since 2013/14 (20%). 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 provision of further education in their locality, an important source of undergraduate recruitment to the University.
|Academic including research||22,418||39%|
|Library & IT services||9,551||16%|
|Academic support including bursaries||6,091||11%|
|Residences and trading areas||5,104||9%|
|Running the estate||9,536||16%|
|Financial services inc pension provisions||1,224||2%|
Figure 4 analyses the use to which tuition fees are put, with 67% allocated directly to teaching and learning facilities (including Financial Support) in every financial year since 2013/14 and a further 9% towards investment. These proportions are expected to be maintained when the regulated fee increases to £9,250 in 2017/18.
|Academic including research||12,359||36%|
|Library, student spupport & IT services||5,896||17%|
|Marketing & recruitment||3,288||9%|
|Financial support (bursaries)||1,795||5%|
|Investment including annual surplus||3,210||9%|
|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|