Finance DirectorateBudget allocations

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:

Item2021 to 20222020 to 20212019 to 20202018 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)