Resource Management Group Meeting 13 October 2011 Financial update Andy NieldFinance Director

Financial Strategy Sustainable operating surplus generating cashflow Finance capital programme through: Cashflow Grants Borrowings/cash

Financial Performance 2010/11 Strong financial performance: Budget operating surplus (pre exceptional) £5m Provisional outturn £17m Major drivers of improvements: Efficiency improvements Increase in OUG and OPGT student numbers

Analysis of 2010/11 Income & Expenditure

Financial Performance 2010/11 Capital investment £m Core Programme 46 NCC Net debt at year end £m Debt 250 Cash/investments(190) Net debt 60

Budget 2011/12 Budget operating surplus £2m Change from 2010/11 outturn reflects: HEFCE grant cut Capital programme financing costs Energy costs Contingency Positive indications re student numbers

Operating Surplus Trend

Prospects 2012/13 onwards Uncertainty rules! HEFCE funding reduction/allocation mechanism Deregulation of HUG AAB student numbers – opportunity and risk New HUG fees Research funding – grants & REF Financial markets/economic turmoil Pay levels – pay awards & drift Pension costs UoB well placed Academic reputation, attractive to students Strong financial starting position Need for continuous efficiency improvements will remain

Core Capital Programme

Finance Services Post SPR structures fully operational Most posts now filled Starting to work well – have been transaction volume and learning curve issues Systems developments, delivered/in progress include: Integrated purchasing Purchasing cards, expense cards, cash passports etc Sales invoicing Financial reporting SAM Looking at Payroll/Pensions/HR

Financial Control Concerns EU FP7 grants