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 Activities Capital & Financing Incomparable

Faculties

Teaching ActivityResearch &

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

University of London - BirkbeckUniversity of London - GoldsmithsKingston University LondonLondon Southbank UniversityMiddlesex UniversityThames Valley UniversityUniversity of East LondonUniversity of the Arts London

Anglia Ruskin University Nottingham Trent UniversityAston University University of ChesterBournemouth University University of East AngliaCoventry University University of EssexEdinburgh Napier University University of GlamorganGlasgow Caledonian University University of SalfordKeele University University of SussexOxford Brookes University of West of EnglandUniversity of Reading University of WorcesterRobert Gordon University University for the Creative ArtsSheffield Hallam University

London Group

Wider Group

Summary

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.

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.

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.

Faculty Analysis - Teaching

Teaching Income per Weighted FTE Student

20

JCAMD ASD ASS LMBS COMP HALE LGIR LIFE0

1000

2000

3000

4000

5000

6000

7000

8000

Teaching Costs per Weighted FTE Student

21

JCAMD ASD ASS LMBS COMP HALE LGIR LIFE0

500

1000

1500

2000

2500

3000

3500

4000

Teaching Contribution %

22

JCAMD ASD ASS LMBS COMP HALE LGIR LIFE0

10

20

30

40

50

60

70

80

90

100

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Associated Activities - Contribution

51

Capital & Financing

52

Compared to Benchmark: § £2.5m lower burden.

Summary

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?