Finance conference - November 2021 Understanding

Transcript:Finance conference - November 2021 Understanding:
Finance conference - November 2021 Understanding the University Financial Landscape Jane Bardell Financial Planning and Analysis Manager Some of the main topics affecting the sector and specifically OU over the next 5 years Scaling income and expenditure at the University Teaching income – Augur review what could that mean? Research Growth – what is happening to research funding? Pension cost growth – why is this hitting so hard? Other impacts Understanding the University Financial landscape Understanding the University Financial Landscape Overall Income 2019/20 Tuition fees UK, EU and Overseas students, Fees from SBS summer schools and visiting students Funding Body grants QR and other grant funding some of which is distributed by the University JRAM Research grants and contracts – includes UK govt and research council funding, EU and O/S funding , industry and charity funding Publishing services – OUP income Other income- Museums, sales from other shops, hosting events Investment income - Dividends from Endowment fund, interest from cash investments on deposit Donations and Endowments – as recognised in the year Income 5 year forecast What are the main categories? 2019/20 results Each division has a unique split of income across these categories Understanding the University Financial Landscape Expenditure 2019-20 Pay remains the largest expense for the University including Pension costs Other expenditure includes all other costs from book printing to IT, consumables, electricity and travel Interest costs includes interest on the £1bn bond Depreciation on the substantial estate owned and managed by the University IT and minor capital spend is usually targeted at £50m , pandemic years saw that significantly reduced The capital plan represents a significant annual investment in building and this level of spend is representative of historical spend These forecasts are taken from the 2019/20 OfS submission Understanding the University Financial Landscape Teaching income - The Augur review A reduction of the fee cap for HEU UGs from £9,250 to £7,500 an equivalent increase in average per-student grant funding from government, so that the average per student resource to the sector stays level in cash terms The proposals do not go as far as to suggest how the increased grant funding should be allocated, leaving that to a future review by OfS Independent panel report to the Review of Post-18 Education and Funding (The Augar Review) 30/5/19 Augur recommendations Augur outcome for OU Based on steady state assumptions in cash terms there is minimal impact