Documentation of approach to budget preparation
Overall income & expenditure
The Budget is the University's prime financial planning document. It summarises the University's budgeted income and expenditure commitments.
Each source of income is reviewed and estimated income for the year is determined. This includes:
- Funding Council grant income
- fees from Home/EU and overseas tuition fees
- research grants and contracts
- residences and catering
- interest receivable
- royalty income
Expenditure commitments include both salary and non-salary expenditure.
Salary budgets are agreed upon with the primary budget holders, taking into account current posts, likely staff movements, and anticipated salary increases. Non-salary budgets are reviewed and adjusted as necessary. The overall budgetary commitment is determined for each primary budget holder.
A number of costs are classed as strategic. Such costs are largely outside the control of any single budget holder and are considered annually by the University Executive Team.
Resource allocation
Once total income and total commitments have been identified, resources are allocated between the primary budget-holders via the University's Resource Allocation Model.
Funding Council grants and Home/EU tuition fees are allocated via the Income Allocation Model, which broadly replicates the Scottish Funding Council Model.
The budgeted Professional Services costs are allocated to departments according to use via set drivers. Budgeted Space costs are charged to departments based on space occupied with weightings for quality and fit and strategic costs are allocated based on total income.
Target outturn
For each main budget-holder, the overall commitment is compared to the income available. Agreement is reached with the budget-holder on actions to increase income and/or achieve savings to achieve the targeted outturn.
Budget allocations 2018 to 2019 and 2021 to 2022
The budget allocations agreed upon for each of the previous four years are as follows:
| Item | 2021 to 2022 | 2020 to 2021 | 2019 to 2020 | 2018 to 2019 |
|---|---|---|---|---|
| £'000 (Thousands) | £'000 | £'000 | £'000 | £'000 |
| Total income | 373,031 | 354,859 | 331,132 | 317,596 |
| Direct expenditure | ||||
| Engineering | 102,420 | 102,111 | 97,348 | 74,935 |
| Science | 65,062 | 60,063 | 55,530 | 52,124 |
| Business | 34,852 | 31,845 | 30,268 | 28,020 |
| Humanities and Social Sciences | 46,481 | 43,725 | 42,258 | 38,716 |
| Total Faculty expenditure | 248,815 | 237,744 | 224,404 | 193,795 |
| Professional Services and other University-wide costs | 128,783 | 121,027 | 118,088 | 112,266 |
| Depreciation (net of Capital Grants) | (63,229) | 1,973 | (18,310) | 795 |
| Interest payable | 1,615 | 1,938 | 3,925 | 2,716 |
| Surplus / (Deficit) | 57,047 | (7,823) | (2,025) | 8,024 |
| Exceptional gains / (losses) | 1,625 | (1,775) | 9,879 | 315 |
| Surplus / (Deficit) | 58,762 | (9,598) | (11,904) | (8,339) |