Heads & Managers Forum

Income Generation Update

Income Generation - Progress Update

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• Context

• Strategic Plan & Challenge

• Income Generation development & Targets

• Current Position

• Risks

• Barriers

• Next Steps

Income Generation - Context

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• Continual reduction in all exchequer funding sources

• State Grants have fallen from €94.6m in 2008/9 to €55.4m forecast for this year

• Amount of Core Grant per student down from €4,440 to €1,569 over same period

• Further reductions in exchequer funding envisaged in line with recovery of national

finances – Core Grant forecast €31m 2016/17

• While Student contribution continues to increase - No benefit to UCC’s bottom line as

tuition fee pro-rata reduced

• Trend internationally – states withdrawing from funding higher education

Income & Expenditure Overview – 08/9 to 12/13

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€'m 2008/9 2009/10 2010/11 2011/12 2012/13 State Grants 94.6 31% 79.8 28% 66.1 24% 58.7 21% 55.2 21%Tuition Fee 93.5 31% 104.1 36% 105.2 39% 109.9 40% 108.9 41%Research 87.9 29% 83.6 29% 81.4 30% 86.9 32% 79 30%Other 25.1 8% 19.1 7% 18.1 7% 18.4 7% 22.1 8%

Total 301.1 286.6 270.8 273.9 265.2

Pay 212.5 202.6 195.4 195.4 187.7Non Pay 88.2 83.3 76.5 78.3 77.5

Total 300.7 285.9 271.9 273.7 265.2

2012/13

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2008/9

State Grants

Tuition Fee

Research

Other

Strategic Plan to 2017

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• Financial Plan underpinning Strategic Plan

• Reflects expected reduction in exchequer funding sources

• Built from Colleges/Central areas own plans – Reflects planned increases in FTE

and FTE mix changes

• Higher Pay costs in plan to match increased FTE to avoid further deterioration of

SSR

• However – additional income from FTE changes not enough to compensate for

expected exchequer reductions – net deficit for each year of plan

• Focus would be on income generation to bring back to balance

Scale of challenge

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• Group established by President in 2012 chaired by E Sweeney

• Report approved 2012

• Focus on 5 main areas – Non EU FTE, PG, Advancement, CPD, E – Learning

• Implementation Plans and targets developed for 5 areas

• Responsibility assigned for delivery

• Investment and funding model approved Feb 2013 for inclusion in 2013/14 budget

• Oversight Group ( IGOG) established to primarily monitor performance versus target

Income Generation – 2012/13 activity

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Income Generation - Targets

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Income Generation Income Targets

€'m Year 1 Year 2 Year 3 Year 4 Year 5 Total E - Learning 0.13 0.655 1.35 2.045 2.045 6.225 PG FTE 0.44 0.839 1.159 1.57 1.57 5.578 Non EU FTE 0.74 1.28 3.71 3.98 5.26 14.97 CPD 0.194 0.355 0.614 0.777 0.972 2.912 Advancement 0.238 0.983 1.264 1.622 1.907 6.014 Total 1.742 4.112 8.097 9.994 11.754 35.699

• Targets may be aspirational and not achieved

• Exchequer position may deteriorate even greater than expected

• Recession burden on existing EU UG recruitment

• Investment in advance of return – exposes University to potential deficits if return not subsequently achieved

• Non EU FTE dependency on international perception of Ireland, price, rankings

• Competition

• Fatigue & Inertia

• UCC internal barriers

Risks & Exposures

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• Taken all of outputs from June H & M Forum

• Currently collated across Academic, HR, Finance, Organisational/Structural etc

• Enables easier allocation of responsibility to put in place solution

• Consistency across various outputs from the different groups

• Many are related to internal polices, procedures and how we do our business

• Majority not dependent on outside support to resolve

• Resolution to issues around incentives, workload, IEO, promotion criteria, awareness will make a real difference beyond the financial return

• Barriers must be removed - At risk is not just the incremental income – existing level of non Exchequer funding may also not be achieved

Barriers & Incentives

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• Non EU & PG FTE- Each college developing multi - annual targets by programme, market & year of strategic plan, ISG established, with support for 6 working groups

• E- Learning – Launching 6 programmes in 2013/14, further call in Jan and team exploring developing 3rd party support for E-learning IT platform and market engagement

• Advancement – Agreed Projects and Themes under review by CUF board for targeted fund raising over next 5 years

• CPD Hub – Governance model established, CPD launch in Waterford and MoU underway with institute of Training & Development

• IGOG - Developing indicators to assess performance and activity - Monitoring actual performance to target - reassessing investment if targets slip to minimise exposure

• Bringing forward series of recommendations based on H & M outputs to remove barriers and put in place incentives to give every opportunity for targets to be achieved

Progress since June & Immediate Next Steps

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In current environment of ;

continued reduction to exchequer funding for the foreseeable future

No real changes to funding model

UCC must take every opportunity to grow non exchequer income to avoid the cycle off continued cuts to budget, further

damaging quality of offering to students &

damaging long term sustainability of UCC

Conclusion

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