Budget Allocations

University Budget Allocations

Documentation of Approach to Budget Preparation

Overall Income and 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 and other income such as income from residences and catering, interest receivable and royalty income.

Expenditure commitments include both salary and non-salary expenditure. Salary budgets are agreed with the primary budget holders, taking account of 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 and agreement is reached with the budget-holder on actions to increase income and/or achieve savings to achieve the targeted outturn.

 

Budget Allocations 2016-17 to 2019-20

The budget allocations agreed for each of the previous four years is as follows:

   2019-20 2018-19 2017-18   2016-17
  £'000 £'000  £'000  £'000
         
 Total Income 331,132  317,596  304,950  291,958 
         
 Direct Expenditure        
 Engineering 97,348  74,935  70,572  68,126 
 Science 55,530  52,124  52,810  50,181 
 Business 30,268  28,020  25,555  25,001 
 Humanities & Social Sciences 42,258  38,716  38,285  35,601 
         
 Total Faculty Expenditure 225,404  193,795  187,222  178,909 
         

 Professional Services and
 Other University Wide Costs

118,088 

112,266  105,909 

96,940 

         
 Depreciation (net of Capital Grants) (18,310)  795  10,002  11,305 
 Interest Payable 3,925  2,716  1,811  1,804 
         
 Surplus / (Deficit)
 before exceptional items 
2,025  8,024  3,000 
         
 Exceptional gains/(losses) 9,879  315  14,602  (2,300) 
         
 Surplus / (Deficit) 11,904  8,339  14,608  700