Student financial information 2014-15

This information and the pie-charts below are designed to explain the University's recent history and current financial position to readers unfamiliar with formal accounts and reports.

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.

Category £'000 %
Funding council grants 11,277 18%
Tuition fees 38,742 64%
Research grants and contracts 97 0%
Other operating income 9,172 15%
Transfer from reserves 1,650 3%
Interest receivable 54 0%
Total 60,992 100%

 

 


 

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.

Category £'000 %
Staff salaries & wages 26,422 43%
Employers' contributions 5,668 9%
Staff development 293 0%
Premises including residences 9,611 16%
Investment 5,631 9%
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%
Professional services 722 1%
Total 60,992 100%

 

 Investment analysis

Category £'000 %
Infrastructure 2,477 44%
IT equipment 2,548 45%
General equipment 270 5%
Loan repayments 247 4%
Loan interest 89 2%
Total 5,631 100%

 

 


 

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.

Category £'000 %
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%
Corporate services 3,494 6%
Financial services 450 1%
Total 60,992 100%

 

 


 

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.

Category £'000 %
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%
Investment 3,210 9%
Corporate services 3,127 9%
Residences and trading areas (net) 0 0%
Total 34,800 100%

 

 

2015/16 Budget Summary: % £'000 £'000
Operating income: . 56,780 .
Transfer from reserves: . 1,650 58,430
. . . .
Less surplus . . (982)
Total expenditure . . 57,448
. . . .
New regime tuition fee income 60% 34,800 .
Funding body grants         16% 9,164 .
Other earnings 22% 12,816 .
Transfer from reserves 3% 1,650 58,430

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