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Income and expenditure

University income

Income  £’000 
Funding Body Grants
6,804
Tuition Fees & Education Grants
71,136
Research Grants & Contracts
1,026
Other Income (1)
12,529
Endowment & Investment Income
90
 
 91,585

 Income chart

University expenditure

Expenditure  £'000 
Staff Costs
46,943
Other Operating Expenses (2)
29,384
Depreciation & Amortisation
4,263
Interest & Other Finance Costs
3,784
 84,374

University expenditure

1. Other income

The main areas within the 'Other Income' section of the University Income chart above are as follows:

Student Accommodation
£7,486,000
Conference, Catering & Hire of Rooms
£1,334,000
Project Income - ad-hoc initatives that institutes/departments undertake for external organisations
£376,000
Car Parking & Permits
£312,000
Misc income including Print Income
£261,000

2. Included in other operating expenses

Student Accommodation - external rentals and related costs
£1,559,000
Electricity, Gas & Water for all University properties including Student Accommodation
£1,062,000
Repairs & General Maintenance to all University Property and Equipment, again including Student Accommodation
£1,648,000
Partner Colleges - cost of courses affliated to the University, for example Halesowen College
£3,514,000
Student Bursaries - including AAB, National Scholorship Scheme, University Bursaries
£5,657,000
Depreciation & Amortisation - method of allocating the cost of a tangible asset over its useful life
£1,314,000

Analysis of expenditure by activity

Staff Other Expenses
Academic Department
£27,835000
£3,306,000
Academic Services - staff within Learning Resources - Info & Learning Services, IT and The Hive
£2,760,000
£2,292,000
Administrative & Central Services - Staff from all the support services, including Registry, Time Tabling, Student Support, Comms & Participation, HR, Finance etc.
£11,548,000
£12,308,000
Premises - Facilities Staff, other exp. includes utilities, maintenance etc
£3,150,000
£7,642,000
Research - Research staff attached to different institutes
£1,505,000
£337,000
 
Residences, catering and conferences - accommodation staff
£145,000
£3,499,000
 
£46,943,000
£29,384,000
£76,327,000
Depreciation & Amortisation - method of allocating the cost of a tangible asset over its useful life
£4,263,000
Interest - cost of loans to the University for Capital Investment
£3,784,000
£84,374,000

The University’s Finances – How Do My Fees Fit In?

All universities are now encouraged to explain as transparently as possible to students both the sources of their income and how they spend their money. This is especially important now that a very large proportion of income a University receives comes from tuition fees. The information above explains where the University of Worcester receives money from and analyses the University’s expenditure. The figures relate to the 2015/16 financial year (1st August 2015 – 31st July 2016).  Firstly though, we will address some of the frequently asked questions that are posed about the University’s income and expenditure.

What proportion of the University’s income derives from tuition fees?

The University’s total income in 2015/16 was £91.6m. Of this, £64.7m (71%) came in the form of tuition fees. In addition, the University received £6.4m (a further 7%) in Education Grants, a large proportion of which came from the NHS in respect of courses in Nursing and Midwifery.

The increase in tuition fees introduced in 2012 must mean that universities have a lot more money coming in than before, yes?

No. What has happened is that the income is coming in from a different source.  Under the old funding system, a large proportion of money going to universities came from the tax payer in the form of a teaching grant via HEFCE.  By increasing tuition fees the government was able to reduce greatly the teaching grant – in effect responsibility for funding higher education has been transferred from the tax payer to the student.

Does the University make a profit?

The University is not a private or limited company and has no shareholders, only stakeholders, which includes our students. Universities are expected to make a surplus, sufficient to allow them to invest in improving facilities, new buildings etc.  In 2015/16 the University declared a surplus of £6.6m.  This is being invested in the Estate for the benefit of current and future students.  For example, the recent refurbishment of the dining facilities, improvements to the electrical and heating supply, and the acquisition of the Lakeside outdoor facility were all funded from careful management of the University’s finances to secure a surplus for re-investment.

Accounts 2015/16
Income: £91.6m
Expenditure: £85.0m
Surplus: £6.6m

So from where else does the University receive its income?

The University still receives around £7m in the form of funding body grants – to support expenditure on widening access and participation and additional funding for high cost subjects. Other important sources of income include research grants and contracts and a large sum which the accounts describe as “Other Income” – in 2015/16 this amounted to £12.5m.  60% of this comes from student accommodation, but much of this is offset by operating expenses (see below); any surplus from the leasing of student accommodation is used to fund the on-going programme of improvement and maintenance of halls of residence.

So what does the University spend its money on?

Investing in academic staff and various academic institutes is vitally important but it accounts for only part of the University’s investment. The University is very much a community, employing around 2000 staff (including around 500 student employees) and teaching more than 10,000 students. Like any community, the University needs support services – library, laboratories, specialist teaching facilities, computers and IT services, buildings, utilities, and of course a network of people to keep the University going.  Every effort is made to ensure that the University achieves Value for Money in how it uses its income from tuition fees and other sources.

The University of Worcester is recognised by the Higher Education Funding Council for England as an efficient and financially well managed institution.  A breakdown of what the University spends its money on is presented below. Please note that the University paid £3.8m in interest in 2015/16 on loans which have been taken out in the last 5 years to fund a large proportion of the costs of the City Campus, the Arena, the Riverside Campus, new Halls of Residence, new Science Laboratories, The Hive etc, all of which have contributed to the overall quality of the student experience.

So, the University has been investing in improving the campus and therefore the student experience then?

Very much so. The University has invested £67m in campus improvements and new site acquisitions over the last five years. 

Capital spend by academic year:

2011/2012  2012/2013   2013/2014  2014/2015   2015/2016 
£22.6m £12.3m £5.6m £7.6m  £19.0m

That’s great, but what about spending on teaching and research?

The University spends 51% of its income on staff costs, the overwhelming majority of which is on academic staff costs and costs relating to staff in services which relate directly to student support – Library, Information and Learning Services, Student Services, and Estates Staff who ensure that the University is a clean and safe environment in which to work and study – cleaning staff, maintenance staff, security staff, etc.  In addition, over £1.3m was spent on student bursaries and scholarships.

So, my money is being well spent?

We think so.  The University aims to give value for money to its students and to provide an experience which will allow students to flourish and to reach their full potential.  We will continue to invest in the University estate and in staff and facilities.

More details

Visit our Facts and Figures page to download Annual Accounts for recent years.

If you require any further information, please contact communications@worc.ac.uk