London Metropolitan University Financial Benchmarking Project 2009/10 23rd March 2011

Agenda  Methodology  Summary  Results

Methodology

Tribal Functional Model 25% Teaching Administration 25% Research Support 20% Admissions 30% Purchasing Mrs Jones was a Faculty Administrator for the whole year. Her role was split as follows: Overall University Associated ActivitiesCapital & FinancingIncomparable Faculties Teaching Activity Research & Enterprise Activity Support Human Resources & Staff Training Library Services IT Services Student Services Registry Services Finance Marketing Corporate Administration Facilities Estates Principal Activities

Selection of Comparisons London Group Wider Group

Summary

 Overall Teaching Income - £1.2m higher;  Overall Pay Costs - £0.2m higher;  Non-pay Costs - £1.7m lower.  Overall Income - £8.7m lower;  Pay costs - £3.6m higher;  £3.6m higher subsidy.  Overall Income - £13.1m lower;  Overall Costs - £11.7m lower;  Overall Contribution - £1.4m lower.  £2.5m lower net cost. Teaching Research & Enterprise Associated Activities Capital & Financing Support Areas  Library - £0.5m lower;  IT Services - £1.0m lower;  Student Services - £1.9m higher;  Registry - £2.5m lower;  Finance - £0.3m higher;  HR & Staff Training – in-line;  Marketing - £0.7m lower;  Corporate Admin - £0.1m lower;  Facilities - £0.9m lower;  Estates - £4.7m higher.

2009/10 Results

Overall Financial Situation 9 Principal Activities includes Teaching, Research & Enterprise, Business Development, Library Services, IT Services, Student Services, Registry, Finance, HR & Staff Training, Marketing, Corporate Administration, Facilities & Estates. Associated Activities includes Catering, Residences, Crèche, Nursery, Shops, Franchising / Licensing, Students Union, Sports, Widening Participation, Other Funding Council Grants, Lettings and Other Associated Activities. Capital & Financing includes Inherited Liabilities, Interest Income, Debt Servicing Charges, Depreciation and Bad Debts. Incomparable includes, for example, sale of assets, restructuring costs, FRS17 pensions, etc. Principal Activities Contribution £1.8 million Capital & Financing Net Cost £1.4 million Associated Activities Contribution £3.6 million Incomparable Net Cost £2.9 million

Principal Activities TEACHING RESEARCH & ENTERPRISE REGISTRY MARKETING ESTATES FACILITIES LIBRARY SERVICES IT SERVICES STUDENT SERVICES ASSOCIATED ACTIVITIES INCOMPARABLE ITEMS FINANCE HUMAN RESOURCES & STAFF TRAINING CORPORATE ADMINISTRATION CAPITAL & FINANCING

Principal Activities Year on Year 11

Principal Activities Detail 12 Compared to London Group:  Academic costs - £3.3m lower;  Support costs - £4.2m higher;  Pay costs - £1.9m lower;  Non-pay costs - £2.8m higher;  Hence surplus - £0.9m lower. Compared to London Group:  Academic costs - £3.3m lower;  Support costs - £4.2m higher;  Pay costs - £1.9m lower;  Non-pay costs - £2.8m higher;  Hence surplus - £0.9m lower.

Teaching TEACHING RESEARCH & ENTERPRISE REGISTRY MARKETING ESTATES FACILITIES LIBRARY SERVICES IT SERVICES STUDENT SERVICES ASSOCIATED ACTIVITIES INCOMPARABLE ITEMS FINANCE HUMAN RESOURCES & STAFF TRAINING CORPORATE ADMINISTRATION CAPITAL & FINANCING

Teaching Contribution Year On Year 14

Teaching Contribution - £ per Weighted FTE Student 15 Compared to London Group:  Income - £1.2m higher, higher % Overseas Fees;  Pay costs - £233,000 higher; Delivery – 11.4 FTEs higher, 2.0% higher av. pay levels; Support – 26.6 FTEs lower,7.6% lower av. pay levels;  Non-pay costs - £1.7m lower;  Hence contribution - £2.6m higher. Compared to London Group:  Income - £1.2m higher, higher % Overseas Fees;  Pay costs - £233,000 higher; Delivery – 11.4 FTEs higher, 2.0% higher av. pay levels; Support – 26.6 FTEs lower,7.6% lower av. pay levels;  Non-pay costs - £1.7m lower;  Hence contribution - £2.6m higher.

Research & Enterprise TEACHING RESEARCH & ENTERPRISE REGISTRY MARKETING ESTATES FACILITIES LIBRARY SERVICES IT SERVICES STUDENT SERVICES ASSOCIATED ACTIVITIES INCOMPARABLE ITEMS FINANCE HUMAN RESOURCES & STAFF TRAINING CORPORATE ADMINISTRATION CAPITAL & FINANCING

Research & Enterprise Activity Year On Year 17

Research & Enterprise Activity 18 Compared to London Group:  Volume of activity - £8.7m lower;  Pay costs - £3.6m higher;  Non-pay costs – in-line;  Hence, subsidy - £3.6m higher. Compared to London Group:  Volume of activity - £8.7m lower;  Pay costs - £3.6m higher;  Non-pay costs – in-line;  Hence, subsidy - £3.6m higher.

Faculty Analysis - Teaching

Teaching Income per Weighted FTE Student 20

Teaching Costs per Weighted FTE Student 21

Teaching Contribution % 22

Support Services TEACHING RESEARCH & ENTERPRISE REGISTRY MARKETING ESTATES FACILITIES LIBRARY SERVICES IT SERVICES STUDENT SERVICES ASSOCIATED ACTIVITIES INCOMPARABLE ITEMS FINANCE HUMAN RESOURCES & STAFF TRAINING CORPORATE ADMINISTRATION CAPITAL & FINANCING

Support Costs – Year On Year 24

Support Costs 25

Library Services Costs Year On Year 26

Library Services Costs 27 Compared to London Group:  Overall costs - £497,000 lower;  Pay costs - £409,000 lower, due to:  Staff numbers – 7.8 FTEs lower;  Pay levels – 4.4% lower;  Non-pay costs - £143,000 lower;  Income – £55,000 lower. Compared to London Group:  Overall costs - £497,000 lower;  Pay costs - £409,000 lower, due to:  Staff numbers – 7.8 FTEs lower;  Pay levels – 4.4% lower;  Non-pay costs - £143,000 lower;  Income – £55,000 lower.

IT Services Costs Year On Year 28

IT Services Costs 29 Compared to London Group:  Overall costs - £980,000 lower;  Pay costs - £479,000 higher, due to:  Staff numbers – 18.9 FTEs higher;  Pay levels – 7.5% lower;  Non-pay costs - £1.5m lower;  Income – £56,000 lower. Compared to London Group:  Overall costs - £980,000 lower;  Pay costs - £479,000 higher, due to:  Staff numbers – 18.9 FTEs higher;  Pay levels – 7.5% lower;  Non-pay costs - £1.5m lower;  Income – £56,000 lower.

Student Services Costs Year On Year 30

Student Services Costs 31 Compared to London Group:  Overall costs - £1.9m higher;  Pay costs - £397,000 higher, due to:  Staff numbers – 10.7 FTEs higher;  Pay levels – 2.1% lower;  Non-pay costs - £1.1m higher;  Income – £366,000 lower. Compared to London Group:  Overall costs - £1.9m higher;  Pay costs - £397,000 higher, due to:  Staff numbers – 10.7 FTEs higher;  Pay levels – 2.1% lower;  Non-pay costs - £1.1m higher;  Income – £366,000 lower.

Registry Costs Year On Year 32

Registry Costs 33 Compared to London Group:  Overall costs - £2.5m lower;  Pay costs - £2.0m lower, due to:  Staff numbers – 39.4 FTEs lower;  Pay levels – 8.8% lower;  Non-pay costs - £461,000 lower;  Income – £34,000 higher. Compared to London Group:  Overall costs - £2.5m lower;  Pay costs - £2.0m lower, due to:  Staff numbers – 39.4 FTEs lower;  Pay levels – 8.8% lower;  Non-pay costs - £461,000 lower;  Income – £34,000 higher.

Finance Costs Year On Year 34

Finance Costs 35 Compared to London Group:  Overall costs - £266,000 higher;  Pay costs - £44,000 higher, due to:  Staff numbers – 4.5 FTEs higher;  Pay levels – 5.2% lower;  Non-pay costs - £174,000 higher;  Income – £49,000 lower. Compared to London Group:  Overall costs - £266,000 higher;  Pay costs - £44,000 higher, due to:  Staff numbers – 4.5 FTEs higher;  Pay levels – 5.2% lower;  Non-pay costs - £174,000 higher;  Income – £49,000 lower.

Human Resources & Staff Training Costs Year On Year 36

Human Resources & Staff Training Costs 37 Compared to London Group:  Overall costs - £60,000 higher;  Pay costs - £535,000 higher, due to:  Staff numbers – 9.4 FTEs higher;  Pay levels – 3.4% higher;  Non-pay costs - £477,000 lower;  Income – in-line. Compared to London Group:  Overall costs - £60,000 higher;  Pay costs - £535,000 higher, due to:  Staff numbers – 9.4 FTEs higher;  Pay levels – 3.4% higher;  Non-pay costs - £477,000 lower;  Income – in-line.

Marketing Costs Year On Year 38

Marketing Costs 39 Compared to London Group:  Overall costs - £702,000 lower;  Pay costs - £167,000 lower, due to:  Staff numbers – 6.1 FTEs lower;  Pay levels – 3.1% higher;  Non-pay costs - £552,000 lower;  Income – £18,000 lower. Compared to London Group:  Overall costs - £702,000 lower;  Pay costs - £167,000 lower, due to:  Staff numbers – 6.1 FTEs lower;  Pay levels – 3.1% higher;  Non-pay costs - £552,000 lower;  Income – £18,000 lower.

Corporate Administration Costs Year On Year 40

Corporate Administration Costs 41 Compared to London Group:  Overall costs - £113,000 lower;  Pay costs - £636,000 lower, due to:  Staff numbers – 12.4 FTEs lower;  Pay levels – 12.5% higher;  Non-pay costs - £501,000 higher;  Income – £23,000 lower. Compared to London Group:  Overall costs - £113,000 lower;  Pay costs - £636,000 lower, due to:  Staff numbers – 12.4 FTEs lower;  Pay levels – 12.5% higher;  Non-pay costs - £501,000 higher;  Income – £23,000 lower.

Facilities Costs Year On Year 42

Facilities Costs 43 Compared to London Group:  Overall costs - £908,000 lower;  Pay costs - £188,000 lower, due to:  Staff numbers – 5.1 FTEs lower;  Pay levels – 4.8% lower;  Non-pay costs - £633,000 lower;  Income – £87,000 higher. Compared to London Group:  Overall costs - £908,000 lower;  Pay costs - £188,000 lower, due to:  Staff numbers – 5.1 FTEs lower;  Pay levels – 4.8% lower;  Non-pay costs - £633,000 lower;  Income – £87,000 higher.

Estates Costs Year On Year 44

Estates Costs 45 Compared to Benchmark:  Overall costs - £4.7 m higher;  Lower running costs per sqm;  More sqm. Compared to Benchmark:  Overall costs - £4.7 m higher;  Lower running costs per sqm;  More sqm.

Owned Estates Costs 46

Owned Estates Non-Pay Costs 47

Associated Activities TEACHING RESEARCH & ENTERPRISE REGISTRY MARKETING ESTATES FACILITIES LIBRARY SERVICES IT SERVICES STUDENT SERVICES ASSOCIATED ACTIVITIES INCOMPARABLE ITEMS FINANCE HUMAN RESOURCES & STAFF TRAINING CORPORATE ADMINISTRATION CAPITAL & FINANCING

Associated Activities – Year On Year 49

Associated Activities - Volume 50 Compared to London Group:  Income - £13.1m lower;  Costs - £11.7m lower;  Hence, contribution £1.4m lower. Compared to London Group:  Income - £13.1m lower;  Costs - £11.7m lower;  Hence, contribution £1.4m lower.

Associated Activities - Contribution 51

Capital & Financing 52 Compared to Benchmark:  £2.5m lower burden. Compared to Benchmark:  £2.5m lower burden.

Summary

 Overall Teaching Income - £1.2m higher;  Overall Pay Costs - £0.2m higher;  Non-pay Costs - £1.7m lower.  Overall Income - £8.7m lower;  Pay costs - £3.6m higher;  £3.6m higher subsidy.  Overall Income - £13.1m lower;  Overall Costs - £11.7m lower;  Overall Contribution - £1.4m lower.  £2.5m lower net cost. Teaching Research & Enterprise Associated Activities Capital & Financing Support Areas  Library - £0.5m lower;  IT Services - £1.0m lower;  Student Services - £1.9m higher;  Registry - £2.5m lower;  Finance - £0.3m higher;  HR & Staff Training – in-line;  Marketing - £0.7m lower;  Corporate Admin - £0.1m lower;  Facilities - £0.9m lower;  Estates - £4.7m higher.

Support Areas – Cost Summary

Support Areas – Staff Numbers Summary

Support Areas – Average Pay Levels

Next Steps?