Financial summary: 2012
City University London's financial year runs from 1st August to 31st July. In this summary, '2011' refers to the financial year from 1st August 2010 to 31st July 2011, while '2012' refers to the financial year from 1st August 2011 to 31st July 2012. Income remained level overall. While income from research grants and contracts rose slightly, Funding Council grants decreased as a result of changes in UK government policy.
The results for 2012 and comparatives for 2011 are as follows:
|Net Operating Deficit||(1.0)||(6.0)|
The University reported an underlying surplus of £0.6M, compared to a £0.8M surplus in 2011. The previous year's result included the £6.8M cost of a major University-wide restructuring scheme, with the equivalent for this year being £1.6M related to a more modest scheme. The University's share of the loss in the INTO City joint venture at £0.4M was slightly higher than anticipated but an improvement on the loss of £1.0M reported in the previous year. The overall deficit after restructuring costs and the joint venture loss was £1.0M, compared to the deficit of £6.0M reported in the previous year.
The charts below summarise the income for the past two years:
Income remained level at £179M. Net tuition fee income, excluding educational contracts, increased by £7M (8%) to £100M, with income from international (non EU) students contributing £47M or 47% of this total. Income received from contracts with the NHS was unchanged from the previous year at £22M.
Funding Council grants (HEFCE) decreased by £3M to £37M. The largest reduction was in the teaching grant which fell by 8% due to the full year impact of the reductions in recurrent funding announced in March 2011. Research grant funding was also reduced by a more modest 3%. HEFCE grants represent a diminishing proportion of our total income, now at 21% compared to a sector average for 2010/11 of 32%. Income from research grants and contracts increased slightly from £7.9M to £8.0M, representing 4% of income.
Investment income increased by £0.6M (57%), although cash and investment balances fell from £76M to £68M and UK interest rates remained depressed. We continued to move the balance of our investments in favour of longer-dated deposits with improved yields, while preserving adequate liquidity for operational purposes. The £24M proceeds from the sale of the halls of residence in August 2012 will enable us to increase investment income in the coming year. This year has continued the trend away from block grant income towards an increasing dependence on tuition fee income. Income from postgraduate and overseas students totalled £76M, an increase of £6M on the previous year.
The charts below summarise the expenditure for the past two years:
Total expenditure, excluding depreciation and restructuring, fell by 1% compared to the previous year, demonstrating the impact of the action taken to control costs and the effect of a below-inflation national pay settlement.
Staff costs, excluding restructuring, fell by £3M (2.7%) as a result of the action taken in the previous year in response to reductions in HEFCE grant funding. These included a University-wide voluntary severance programme for academic and professional staff, together with a specific restructuring exercise undertaken in the School of Health Sciences. Non-pay costs, excluding depreciation, increased by £3M (5.3%). In addition to the current high level of general inflation, this related to rent on the building to re-house the School of Health Sciences staff relocated from the Whitechapel site, an increase in the budget for backlog long-term maintenance and initial costs associated with the recruitment of academic staff as part of the implementation of the Strategic Plan.
Depreciation for the year increased from £11M to £12M partly reflecting a shortening of the estimated remaining useful lives of several refurbishment projects as a consequence of the current estates strategy. Academic and other educational related costs, excluding research and enterprise, account for £98M (54%) of the £180M total expenditure in 2011/12. If research and enterprise activity is included then these account for £105M or 58% of total expenditure.