FINANCE DIVISION Investing in the Future: University finances in 2015/16 and beyond

Financial overview: Budget 2015/16 UniversityResearchOthertotal £m Income ,279 Payroll costs(271)(411)(682) Other costs(197)(399)(596) Total Expenditure(468)(810)(1,278) Surplus011 Income split36%64%100% Pay costs / income58%51% Page 2

Where the money comes from Page 3 HEFCE/Gov't 16% Academic Fees 23% Research funders 37% Sales & trading 3%3% Donations (including OUP) 8%8% Investment 3%3% Other 10%

How the money is spent Page 4 University- funded staff 33% Research- funded staff 20% Research- funded non- staff 15% Bursaries & scholarships 4% Premises 9%9% Depreciation 5%5% Payments to Colleges 5% Other 9%9%

Income by main funding sources Page 5

Overheads not keeping up with growth in research income

Not meeting financial target

Financial overview: Budget 2015/16 Medical Sciences DivisionResearchOthertotal £m Income Payroll costs(178)(95)(273) Other costs(127)(86)(213) Total Expenditure(305)(181)(486) Surplus044 Income split62%38%100% Pay costs / income58%51% Page 8

Financial overview: Budget 2015/16 PaediatricsResearchOthertotal £m Income Payroll costs(3.9)(1.7)(5.6) Other costs(1.7) (3.4) Total Expenditure(5.6)(3.4)(9.0) Surplus0(0.3) Income split64%36%100% Pay costs / income70%55% Page 9

Summary: points to consider  A department in deficit: financial discipline required to control the cost base and secure the future (sustainability)  Departmental reserves £3.4m as at July 2015  Strategic priorities and decision making must be set in the financial context  Greater focus on budgets and forecasts  Need accounting accuracy and reliable financial reporting to satisfy funders, auditors and the wider University  Recruitment protocols must be observed to maintain quality, timing and affordability of appointments  Remember the red line!