University income 2018/19

University income 2018/19
Income£,000
Funding Body Grants 6,472
Tuition Fees & Education Grants 76,969
Research Grants & Contracts 1,230
Other Income (1) 12,000
Endowment & Investment Income 241
   96,912

 Pie chart showing a breakdown of University income in 2018/19

 

 

University expenditure 2018/19

University expenditure 2018/19
Expenditure £'000 
Staff Costs 55,051
Other Operating Expenses (2) 32,961
Depreciation & Amortisation 4,479
Interest & Other Finance Costs 4,111
   96,602

 

 Pie chart showing University expenditure in 2018/19

 

1. Other income

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

Other income
AreaValue
Student Accommodation £6,782,000
Conference, Catering & Hire of Rooms £1,840,000
Project Income - ad-hoc initiatives that Schools/Departments undertake for external organisations £616,000
Car Parking & Permits £377,000
Print Income £66,000

2. Included in other operating expenses

Included in other operating expenses
AreaValue
Student Accommodation - external rentals and related costs £1,086,000
Catering Expenditure - costs of providing onsite catering facilities  £1,588,000
Electricity, Gas & Water for all University properties including Student Accommodation £1,968,000
Repairs & General Maintenance to all University property and equipment, including Student Accommodation £2,705,000
Partner Colleges - cost of courses affiliated to the University, for example Halesowen College £6,349,000
Student Bursaries - including AAB, National Scholarship Scheme, University Bursaries £1,781,000

Analysis of expenditure by activity

Analysis of expenditure by activity
 AreaStaffOther Expenses Totals
Academic Department £36,862,000 £15,371,000  
Academic Services - staff within Learning Resources: Library Services, IT and The Hive £2,962,000 £3,411,000  
Administrative & Central Services - Staff from all the support services, including Registry, Timetabling, Student Support, Comms & Participation, HR, Finance etc. £9,495,000 £4,289,000  
Premises - Facilities Staff, other exp. includes utilities, maintenance £2,868,000 £6,182,000  
Research - Research staff attached to different Schools £1,847,000 £344,000  
Residences, catering and conferences - accommodation staff £1,017,000 £3,364,000  
  £55,051,000 £32,961,000 £88,012,000
Depreciation & Amortisation - method of allocating the cost of a tangible asset over its useful life     £4,479,000
Interest - cost of loans to the University for Capital Investment     £4,111,000
      £96,602,000

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 2018/19 financial year (1st August 2019 – 31st July 2019).  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 2018/19 was £96.9m. Of this, £74.0m (76.4%) came in the form of tuition fees. In addition, the University received £3.0m (a further 3.1%) in Education Grants which came from the NHS in respect of courses in Nursing and Midwifery.

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 2018/19 the University declared a surplus (before other gains and losses) of £0.3m.  This is being invested in the Estate for the benefit of current and future students.  For example, the recent refurbishment of the Art House, academic equipment and facilities purchases, IT service upgrades and equipment as well as physical infrastructure upgrades were all funded from careful management of the University’s finances to secure a surplus for re-investment.

Accounts 2018/19

Income: £96.9m
Expenditure: £96.6m 
Surplus: £0.3m

So from where else does the University receive its income?

The University still receives around £6.5m 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 2018/18 this amounted to £12m.  Over 50% 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 individual staff (including over 600 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 Office for Students as an efficient and financially well managed institution. The University spent £96.6m on running the University with a breakdown below. Please note the University paid £4.1m in interest in 2018/19 on loans which have been taken out in the last 10 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. 

What does the University spend its money on?
Area £'m 
Staff costs  55.1
Payments to Partner Colleges 6.4
Student Bursaries 1.8 
Residences & General Maintenance 6.1
Books, Consumables & Laboratory expenditure 3.2
Heat, Light and Power 2.0
Depreciation 4.5
Interest  4.1
Other running costs 13.4

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

Very much so. The University has invested over £44m in campus improvements and new site acquisitions over the last six years. 

Capital spend by academic year
2018/192017/182016/172015/162014/152013/14
£3.0m £5.3m £3.5m £19.0m £7.6m £5.6m

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

The University spends 57% 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, £1.8m 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