Management Accounts
Budgetary Process

Teaching Budget Allocation Methodology

The basis of attributing budgets to Faculties has been developed to fairly reflect Teaching Costs, price Banding and Teaching Load etc. and follows as far as possible the methodology by which the University itself receives funds for Teaching.  This includes both a qualative and quantative element, covering needs based on student numbers, modes of study, standard units of resource for each price group, and other performance factors.  Details for 2008/09 are set out below:

Recurrent Budget

The budget consists of a core element, which is formula driven and based on the University's core teaching income.  The remaining elements are based either on performance factors or additional earnings.

The teaching element has been calculated as follows:

	£000s
Core element based on teaching income	2,916
Additional elements relating to:
Performance Factor	275
Additional Resources will be allocated based on estimates of income/surpluses on:
Franchised courses	80
Short course surpluses	39
Incremental overseas fees	149
Other premiums (fees charged above standard fee)	564
(figures are adjusted when actual information becomes available)
Total Teaching Allocation	4,023

Detail of allocation Methodology

1.0  Teaching income calculation

The teaching income is calculated using the HEFCE funding model and planned student numbers for 2008/09.  Every UU school is mapped to a HEFCE subject group.  Every subject group is allocated to a price band, which are weighted according to whether it is classroom or laboratory based or a mixture of both.  The price bands applicable to UU for 2008/09 are:

Subject Group	Factor	Price
Group D	1	£4,664
Group C	1.3	£6,063
Group B	1.7	£7,929

The price represents the total resources i.e. block grant plus fees.

Additional weightings are given for part-time students (10%) and long courses (25%).

The student load model (run by the Planning Department) allocates FTEs to each school depending on their input to a course.  Teaching income is then calculated by multiplying the resultant student FTEs (weighted by category full-time, part-time etc.) by the appropriate "price" for that subject and grouping.

Resultant figures are then adjusted pro-rata back to the University's actual level of block grant fees.

 

2.0	Additional Elements:
2.1	Performance Factor: Allocated to those Faculties achieving a surplus of more than 5%, as indicated by the Faculty Financial Statements for the nine months to April 2008.
2.2	Franchised Courses: The total sum available (£80k) is allocated pro-rata on 2007/08 estimated fees.
2.3	Short Course Supluses: Distribution of surplus for 2005/06 (2006/07 figures are not yet available) from the Short Course and Professional Development Unit in line with approved policy.
2.4	Incremental Overseas Fees: 50% of the differential between full-time and overseas fees, based on increased level of activity between 2006/07 and 2007/08
2.5	Other Premiums: 100% of the additional premiums earned over the standard rate per credit point.
3.0	10% Hold back: The recurrent budget has a 10% hold back which will be allocated once it is confirmed that targets against the Academic plan have been achieved.

Research Budget Allocation Methodology:

The Research Office allocates the Research recurrent budget. Please refer to the Research Office web pages

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