Financial Strategy 2010-2015

Financial Strategic Map

VISION:  To provide long-term financial sustainability to enable the University to be one of the UK’s leading campus-based University communities.

MISSION:  To provide financial leadership and guidance to the University.

VALUES: The provision of financial information and guidance based on the following principles:

  • Impartiality
  • Accuracy
  • Relevance – understanding and delivering the needs of University management
  • Timeliness

The Financial Strategy will support the strategic plan, 2010 to 2015, in particular strategic aim 6: to manage and develop resources effectively to ensure the University’s sustainability and development.

Financial Strategic Aims

STRATEGIC AIM 1:  To generate surpluses which produce sufficient cash to support the University’s strategic objectives and provide institutional sustainability

STRATEGIC OBJECTIVES:

  • To deliver the medium term aim of achieving a minimum annual surplus of 5% of income.
  • To achieve an income and expenditure reserve balance of in excess of 10% of income by 31.7.16.
  • To achieve the annual monitoring targets as agreed with HEFCE .
  • To ensure cash flow after debt service is sufficient to fund capital expenditure programmes and strategic development projects.

STRATEGIC AIM 2:  To grow and diversify income

STRATEGIC OBJECTIVES:

  • To grow student numbers to 10,000
  • To reach an international students target of international student recruitment being 15% of total student intake by 2015.
  • To grow research income and PGR students in line with agreed targets.
  • To grow commercial income and contribution to deliver financial benefit to the University

STRATEGIC AIM 3:  To operate efficiently and effectively - managing the cost of operations and delivering value for money.

STRATEGIC OBJECTIVES:

  • To seek continuous improvement in all key processes and to minimise the cost of delivery.
  • To reduce staff costs to less than 58% of income.
  • To further reduce the % staff cost to income in line with the sector median.

STRATEGIC AIM 4:  To manage capital and other strategic investment projects to deliver future financial benefit to the University.

STRATEGIC OBJECTIVES:

  • To ensure the University investments and external loan facilities are managed so as to sufficiently provide funding for capital and strategic    development projects
  • All capital and strategic development projects will be fully appraised to ensure they deliver clear benefit

STRATEGIC AIM 5:  To assess and manage risk in all University growth and development activities

STRATEGIC OBJECTIVES:

  • All proposed growth and development projects to be supported by business plans and subject to rigorous sensitivity and risk analysis.
  • To monitor the overall risk to the University of all growth and development activities
  • To monitor the performance of activities undertaken through subsidiary companies and joint ventures

STRATEGIC AIM 6:  To operate sound treasury management

STRATEGIC OBJECTIVES:

  • To efficiently manage the University funding through bank accounts and loan facilities.
  • To provide actual, forecast and budget cash flow data to support financial planning.    
  • To work with investment advisers to obtain maximum benefit from its investments

STRATEGIC AIM 7:  To closely monitor the external environment and its impact on the University

STRATEGIC OBJECTIVES:

  • To routinely monitor the external environment affecting Higher Education and the University’s position and take appropriate action to ensure continued sustainability and quality of education and research activity.