curriculum reform steering group

CURRICULUM REFORM STEERING GROUP

FINANCE PRESENTATION

10th APRIL 2008


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


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


University Balance Sheet

31/07/08

£M

Fixed Assets 292

Endowments 36

Cash 12

Loans/Leases 11


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!!


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.


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.


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.

curriculum reform steering group

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