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Northumbria University

Northumbria University. Where does the money come from & how is it spent?. David Chesser DVC & FD. Presentation Aims:. To provide a better understanding of the University’s sources of income To appreciate how the income is spent

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Northumbria University

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  1. Northumbria University Where does the money come from & how is it spent? David Chesser DVC & FD

  2. Presentation Aims: • To provide a better understanding of the University’s sources of income • To appreciate how the income is spent • To understand how the University is funding it’s investment programme

  3. City Campus East

  4. Sports Facility

  5. Sources of Income

  6. Income Budget 2008/09 (£m)

  7. HEFCE – Block Grant for Teaching • On 1st December a student census is taken • Data forms the basis of the following years grant • Bids can be made for Additional Student Numbers (ASN’s) • The census also demonstrates to HEFCE whether there are too many or too few students in relation to the funding Northumbria is receiving for the current year.

  8. HEFCE - Banding • HEFCE funds students on four different levels: • Band A: Specialist Medicine (Attracts a weighting of 4.0) • Band B: Lab based e.g. Engineering or Applied Sciences (Attracts a weighing of 1.7) • Band C: Mixed Lab and Classroom e.g. Informatics (Attracts a weighing of 1.3) • Band D: Classroom based e.g. Business Studies (Attracts a weighing of 1.0)

  9. Hefce Block Grant The total income per Band per Student for 2008/9 is:

  10. Allocation to Schools

  11. Annual Planning Cycle • A key outcome is that the University Executive determine the targets by School for the future years recruitment • Student numbers are moved to reflect changes in demand and the resources follow

  12. NHS Contract (£20.4m) • Main Contract covers the provision of over 4.500 nursing and midwifery education students, split between pre and post registration. The main elements of the contract include: • Nursing and Midwifery Contract • (Pre and Post Reg.) £13.9m • BSc Degree RN/RM £2.3m • BSc Physiotherapy £1.3m • BSc Occupational Therapy £1.1m • The contract runs 1st April – 31st March • Is renewable annually • Has a 3 year term

  13. Training and Development Agency Contract (£3.4m) • Main Contract covers the provision of circa 600 Teacher Training places in the both Primary and Secondary Education. • All places are funded by the TDA between £4,000 and £6,000 per trainee • Teaching in over 20 subjects including English, Mathematics, ICT, Science, History etc. • Subject to OFSTED

  14. Top Up Fees (£20.9m) • From 2006/07 all new FT UG students where required to pay an annual fee of £3,000, 2008/09 this increased to £3,145 • Students can fund this via deferred tuition fee loan offered by the Students Loan Company (SLC) • The SLC will pay to the University in two instalments. • The estimated additional income for 2008/09 is £20.8m, of which £7.0m will be paid out in bursaries and scholarships. • HEFCE are reviewing the weightings between bands, as with top up fees the lower funding bands benefit

  15. Tuition Fees • Home Fees (£25.4m) • 23,365 undergraduates • 4,700 postgraduates • Collaborative Ventures (£6.1m) • 14 UK partners - 75 course codes; • 23 International partners - 190 course codes • 5,900 students • Overseas Fees (£21.3m) • 3,413 international students paying +/- £7,000 per year. • Recruited from across the Globe including China, Hong Kong, Malaysia, India etc. to a range of courses in the schools of NBS, CEIS, ASS, BE, SASS, Design

  16. Research and Consultancy (£11.8m) • HEFCE Research Grant (£1.3m) • Block Grant from HEFCE based on performance in 2001 Research Assessment Exercise • RAE Award based on 2008 submission of £3.3m • Research Grants and Contracts (£5.1m) • Consultancy and Short Courses (£5.0m) • Main sources if income include: • Research Councils, NHS, Local Authorities, UK and Overseas Companies, SME’s • Annual number of Research and Consultancy projects required to deliver targeted income is circa. 700 • Income includes the Egyptian Contract

  17. Other Income • Academic Income (£2.0m) • Materials £0.5m • Residential Fees £0.4m • Field Trips £0.3m • Exam Re-sits £0.1m • Registration Fees £0.1m • Service Department Income (£18.7m) • Student Residences £7.6m • Catering £3.1m • Printing and Reprographics £1.4m • Sports Facilities £1.3m • Interest Receivable £0.3m • Retail £0.4m • Car Parking £0.2m • Conferences £0.2m

  18. Key Facts • The University’s income has doubled in the last 10 years • Northumbria’s income ranks it 35th in the sector out of 159 • Health, Community & Education Studies income is greater than 42 UK HEI’s • Northumbria’s ranking on international income is 28th (2006/7 figures) • Northumbria is the 4th largest recruiter of Indian students & 7th largest for Chinese

  19. How do we spend our money? • By far the largest area of expenditure is salaries at £116.0m - 59.0% of income • Split: £m • Management 17.0 14.7% • Academic 55.6 47.9% • Support 40.1 34.6% • Other 3.2 2.8% 116.0 100% Salary growth in 2008/09 7.4% Projected growth in 2009/10 >8.9%

  20. Other Annual Expenditure (£m) Student Scholarships 7.0 Interest 3.7 Travel & subsistence 4.7 Rent, utilities, insurance 8.7 IT & Telecoms, equipment 5.0 Books & Periodicals 2.8 Student Recruitment 4.1 Public Relations 0.7 Sport Northumbria 1.1 Catering & Cleaning Materials 2.9 Building & grounds, maintenance 6.4 Research Development Fund 0.8 Other 12.1 TOTAL 60.0

  21. Income & Expenditure Account (£m) Income 196.7 Expenditure Staff 116.0 Non-staff 60.0 Depreciation 9.0 185.0 Operating Surplus 11.7 Surplus % 6.0%

  22. Cash Flow Statement (£m) Opening Cash 11.6 Surplus 11.7 Depreciation 9.0 Deferred grants released (1.9) 18.8 30.4 Loan Repayments (0.5) Capital Expenditure (35.6) (36.1) New Borrowings 7.2 Capital funding 6.5 13.7 Closing Cash 8.0

  23. Borrowings Graph

  24. Where does the money come from & how is it spent? Thank you for listening David Chesser Deputy Vice-Chancellor & Finance Director

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