2009 Budget and Medium Term Plan Council July 2009
Guiding principles Set financial targets that are achievable and consistent with the University Plan Address current challenges Assure robustness Provide a platform for future development
Key Financial Outputs Operating surplus Trading surplus Operating Cash Flow
Context Current performance Current and future operating environment University development plans
Current performance A secure platform for development Operating surplus better than budget Trading result above budget Operating Cash Flow above budget Cash Flow stronger than budget and borrowing lower than projected
A secure platform for development
Operating environment Systematic risk Pensions Remuneration Energy Specific risk Credit crunch
The Credit Crunch
University Investment Plans
2009 MTP – headline numbers
Main changes since 2008 MTP Favourable
Main changes since 2008 MTP Adverse
2009 MTP Capex, Cashflow, Grants and Borrowing
2009 MTP - Risks, Ratios and Sensitivities
Key ratios
Sensitivities
2009 MTP - Summary Similar outputs but greater emphasis on income generation and control of key costs Though Cash Flow similar Borrowing higher Higher risk strategy in a higher risk environment so greater emphasis on contingency and greater dependence on active performance management
The MTP, Past Performance and the Longer Term