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 2018-19 to 2021-22

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

   2021-22 2020-21 2019-20   2018-19
  £'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 & Social Sciences 46,481  43,725  42,258  38,716 
 Total Faculty Expenditure 248,815  237,744  225,404  193,795 

 Professional Services and
 Other University Wide Costs


121,027  118,088 


 Depreciation (net of Capital Grants) (63,229)  1,973  (18,310)  795 
 Interest Payable 1,615  1,938  3,925  2,716 
 Surplus / (Deficit)
 before exceptional items 
57,047  (7,823)  2,025  8,024 
 Exceptional gains/(losses) 1,625  (1,775)  9,879  315 
 Surplus / (Deficit) 58,672  (9,598)  11,904  8,339