Presentation on theme: "University and Student Finance Howard Bolton Head of Student Finance Jonathan Croall Student Fee Manager Paul Cropper Deputy Director of Finance."— Presentation transcript:
University and Student Finance Howard Bolton Head of Student Finance Jonathan Croall Student Fee Manager Paul Cropper Deputy Director of Finance
Topics Part 1 – University Finances Where does the university get its money from? Where is the money spent? How is money distributed within the university? What is the financial state of the university and the sector? What is your responsibility for finances? What is the Transparency Review? Part 2 – Student Finances How are students funded and what do they pay? Where can advice and support be found?
Financial Services Mission To support the recruitment and retention of students by maximising the investment of human and physical resources devoted to teaching and learning. We will achieve this by: ensuring that the university remains financially strong achieving best value for money in all activities ensuring that decisions are taken within a framework where risk is acknowledged, monitored and controlled
Income & Expenditure – 2010/11
Where the money comes from?
What does the HEFCE pay per FTE student in 2011/12? Depends on the price group within which a module falls and the mode of study Price groupMode £ FTS 6,239 BSW (year out) 4,771 PT 6,863 FTS 4,771 CSW (year out) 4,771 PT 5,248 FTS 3,670 DSW (year out) 4,771 PT 4,037
What and where?
Balance Sheet at 31 July 2011
How is the money distributed? The DevRev model is simple, straightforward and transparent. All qualifying income is top- sliced to give the strategic provision [SP] and the remainder is split between schools and infrastructure.
How much is distributed in 2011/12? Devolved Revenue model for 2011/12:
Allocation to schools and services in 2011/12 (Including Barnsley and Oldham activity)
Financial Security of Universities (Each institution is scored on the basis of it’s financial strength)
Condition of the Estate (A and B represents good quality)
Surpluses/(Deficits) for each institution
Staff costs as a percentage of income
Teaching grant from the Funding Council as a percentage of total income
Historical cost surplus as a percentage of total income
Total staff costs as a percentage of total income
Sector Risks Admissions International students Government funding Finances and investments Capital expenditure Pay costs Pension costs Business links
Financial Context Reduced funding expected from: HEFCE Teaching grant HEFCE Research grant NHS income TDA grant Part-time fee income Increased funding expected from: Full-time Home & EU undergraduate fee per student Overseas students Research and Enterprise activity (matched by expenditure)
Financial controls “To conduct its business effectively a University needs to ensure that it has sound financial management systems in place and that they are strictly adhered to…... Compliance with the financial regulations is compulsory for all staff connected with the University.”
Financial controls - Responsibilities University Council Financial Services Individual Schools and Services
Role of Council Responsible for: Effective and efficient use of resources, the solvency of the University and for safeguarding its assets Approving annual estimates of income and expenditure Considering and approving the annual accounts These responsibilities may not be delegated. However, Council must establish a (Finance) Committee (and an Audit Committee). Also must: make financial rules to ensure the proper administration and control of the University’s resources cause to be kept accounts and records approve arrangements to determine tuition and other fees Members must declare any financial interests
Financial regulations – Financial control The Vice-Chancellor is the University’s designated accounting officer and is responsible for the regulation, direction and management of the University The Director of Finance controls day to day financial administration The Dean/Director or Head of Service is responsible for financial management in his own area – he/she is advised by Financial Services in executing his/her financial duties and assisted by management information provided by Financial Services
Financial control - Financial Services Responsible for: Annual revenue budget and capital programme During the year producing revised budgets Rolling five year financial plan Preparing financial information, monitoring and control of income and expenditure against budget Submitting budgetary reports on all aspects of the University’s finances to University committees Preparing financial statements and other financial returns and reports Ensuring that the university maintains satisfactory financial systems
Financial control - Schools & Services Responsible for: Economic, effective and efficient use of resources Safeguarding assets allocated to them Producing detailed budgets using the resources made available to them Control of income and expenditure within the agreed budget including effective day to day monitoring Reporting significant departures from agreed budgets Establishing and maintaining clear lines of responsibility within the school/service for all financial matters. Where resources are devolved to budget holders they are accountable to the dean/director or head of service for their own budget
Financial regulations – What do they contain? Guidance provided on: Financial Control Income and banking Research grants and contracts Expenditure Salaries and wages Assets Other (e.g. Risk management)
Financial regulations – Operational issues (1) Cash Receipts – all monies received must be recorded daily and paid into Financial Services at least weekly Collection of debts – all invoices must be raised promptly on official University invoices. Financial Services are responsible for implementing credit arrangements and taking swift and effective action to collect overdue debts. Petty cash – items less than £10 should be paid by purchasing card. If not possible use petty cash. Receipts or vouchers must be obtained. Each school/service is responsible for safe keeping of cash. Financial Services agree total available to each school/service and reimburse funds before total amount has been spent.
Financial regulations – Operational issues (2) Ordering goods – use orders produced from the University’s finance system (except petty cash, purchasing cards) Tendering - £3k-£25k (quotes); £25k upwards (tenders); >£139,893 (EU threshold tenders) Payment of invoices – weekly payment run by automatic transfer into suppliers bank accounts. The University’s terms of payment are 30 days from receipt of invoice Employees’ expenses – must be in accordance with Expenses and Benefits Procedures Manual, authorised by line manager. Weekly payments into account of employee
Risk management Review process: Corporate risks identified These risks are considered by the Audit Committee before going to Council The risks are included with the strategic planning contextual document circulated to Deans and Directors Deans and Directors identify the key risks they face and these are included within their planning document Corporate and local risks are reviewed during the year
Finance policies and procedures Available on the Financial Services pages of the University web site: Financial regulations Master forms Fraud and corruption response plan Expenses and benefits procedures manual Guidance notes (budgets, etc…) Treasury management policy Insurance guide
Fraud and Corruption Plan The plan defines the process to enable the University to: Prevent further loss Notify the Police of any potential criminal act Establish and secure evidence necessary for disciplinary action Notify HEFCE, if appropriate Keep all personnel with a need to know suitably informed Inform the police and establish lines of communication with them Assign responsibility for investigating the incident Review the reasons and prevent a recurrence Recover losses Take appropriate disciplinary action
Transparency Review at Huddersfield Costing the activities of the University of Huddersfield Process is driven via a web site - Assistance available from the costing team and school/service champions Objective is to minimise the burden on staff Full economic costing
Financial Support for Students Academic Year 2011/12 Onwards
Tuition Fee Rates 2011/12 Fees of up to £3,375 from 2011/12 are to be charged in respect of full-time courses at HEFCE funded institutions. Excludes NHS, TDA, post-grad, part-time courses. Part-time fees are set by each university for each course, usually pro-rata to the standard full-time fee.
Key Point Parents don’t pay tuition fees. Students don’t pay tuition fees. Graduates pay tuition fees.
Tuition Fees Universities can charge up to £3,375 per year. No student now needs to pay up front. Tuition Fee Loans to cover cost – administered by the government. Tuition fee income helps the University to improve facilities and offer a better student experience.
Student Financial Assistance Means tested Maintenance Grants of up to £2,906. Means tested University Bursaries. Student Maintenance Loans. Tuition Fees of up to £3,375 – No Means Testing.
Grants – for living expenses Means tested non repayable grant of up to £2,906 from the government. Each university will have to pay a minimum £338 bursary to students that receive the full grant. Huddersfield offers up to £500 means tested bursary
Student Maintenance Loans Available to all full time students Elsewhere - £4950 Living at Home - £3838 The amount of loan you will be eligible to apply for will depend on the amount of state grant you receive. Eg. The loan will be reduced by £0.50 for every £1 of grant the student receives up to a maximum reduction of £1453.
Financial Support (non-repayable grants) Government Grant Additional support from Huddersfield Government Grant For students with family income up to £25,000. Partial grants available for students with family income up to £50,020 Students with family income up to £25,000 per year £2,906£500 per yr
Paying it Back Income Each YearMonthly repaymentRepayment as a Percentage of Income Up to £15,00000 £16,000£ £17,000£151.1 £18,000£ £19,000£301.9
Income of Huddersfield students or their families Dotted purple line indicates anticipated grant eligibility in
Part-time students Will generally pay at half the full-time rate (of £ per 20 credit module) ie £300 per 20 credit module. Currently these fees continue to be paid “up-front” (ie are not included in the new deferred fees regime for full-time students).
2012/13 onwards Changes to the student support system We are charging £7950 per year for our undergraduate degree courses. Tuition Fee Loan covers all the fees Student Loans and Grants available as before New National Scholarship Scheme Students repay after graduation – threshold rises to £21k
Points to remember Students don’t pay fees up front Students from lower income families will be better off while they study Graduates earn an average income premium of 40% over a lifetime Not a debt – an investment!
Useful contacts – internal/external Student Fee and Bursary Manager [U] – Jonathan Croall Student Support Manager [U] – Jean Adams-Mack Student Income Manager [U] – Kirsty White Student Loans Company NHS Student Grants Unit Scholarship Search UK Educational Grants Advisory Service Inland Revenue DfES Teacher Training Disabled Students’ Allowances es/index.shtml es/index.shtml Child Tax Credit helpline National Union of Students
Want to know more about university finances? Information is available from: University web site (www.hud.ac.uk/finance/index.htm) HEFCE web site (www.hefce.ac.uk)www.hefce.ac.uk –A guide to UK HE ( –How HEFCE allocates its funds (http://www.hefce.ac.uk/pubs/hefce/2008/08_33/) Student Finance Office (level 8) Financial Services Department (level 8) Published accounts and other financial reports