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

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 2

3. City Campus East 3

4. Sports Facility 4

5. Sources of Income 5

6. Income Budget 2008/09 (£m) 6

7. HEFCE – Block Grant for Teaching On 1 st 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. 7

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) 8

9. Hefce Block Grant Grant £ Fee £ Total Income £ Band D276531455910 Band C359631456741 Band B470231457847 The total income per Band per Student for 2008/9 is: 9

10. Allocation to Schools 10

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 11

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 1 st April – 31 st March Is renewable annually Has a 3 year term 12

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 13

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 14

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 15

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 16

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 17

18. Key Facts The University’s income has doubled in the last 10 years Northumbria’s income ranks it 35 th 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 28 th (2006/7 figures) Northumbria is the 4 th largest recruiter of Indian students & 7 th largest for Chinese 18

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 Management17.014.7% Academic55.647.9% Support40.134.6% Other 3.2 2.8% 116.0100% Salary growth in 2008/09 7.4% Projected growth in 2009/10 >8.9% 19

20. Other Annual Expenditure (£m) Student Scholarships7.0 Interest3.7 Travel & subsistence4.7 Rent, utilities, insurance8.7 IT & Telecoms, equipment5.0 Books & Periodicals2.8 Student Recruitment4.1 Public Relations0.7 Sport Northumbria1.1 Catering & Cleaning Materials2.9 Building & grounds, maintenance6.4 Research Development Fund0.8 Other12.1 TOTAL60.0 20

21. Income & Expenditure Account (£m) Income196.7 Expenditure Staff116.0 Non-staff 60.0 Depreciation 9.0 185.0 Operating Surplus 11.7 Surplus % 6.0% 21

22. Cash Flow Statement (£m) Opening Cash11.6 Surplus11.7 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 6.513.7 Closing Cash 8.0 22

23. Borrowings Graph 23

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