University financial forecast

Posted by rmt22 at Jul 11, 2017 04:17 PM |
Financial predictions approved by University Council show that we are in a strong position to continue to grow our surplus.

As you will have seen in the recent Leicester In Focus video magazine, the University has had a strong financial year.

In the spring of 2016, our financial predictions showed that unless we took immediate action, we would be facing a £12 million deficit for the 2016/17 financial year. This prediction was based upon slower income growth than elsewhere in the sector alongside significant uncertainty around student recruitment.

Good financial planning is essential to be able to take action when required, and the University’s Leadership Team quickly put into place a set of activities which were aimed at ameliorating this. The impact of this action drove improvement across three key areas:

  • Our student recruitment was stronger than expected and the contingencies we made in the budget were not needed.
  • We carefully managed our staff costs during the year and these have been lower than we budgeted.
  • Some excellent work by our alumni and development team alongside the School of Medicine has resulted in around £10 million of unbudgeted donations to the University. Under new accounting rules, these donations are now recognised up front.

These improvements mean we are now forecasting a £14 million surplus for the 2016/17 financial year.

Looking forward, our future financial forecast which has just been approved by the University Council shows us continuing to grow surpluses year-on-year which is necessary to fund the capital programme and to invest into developing our student experience, research and enterprise. Obviously this is dependent on other factors, like donations and changes in the external environment, but it puts the university in a sustainable financial position, and is entirely in line with predictions made a year ago.

Martyn Riddleston, the University’s Director of Finance said: “We are very pleased that the hard work of colleagues across the institution has put us in a position to be able to forecast a surplus this year and it is testament to their dedication and innovative thinking that the University is in a robust position and ready to deal with the challenges of the changing Higher Education landscape.”

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