Crunch time: The University’s 2008-2009 financial plans remain a mystery

According to a press release published on the Warwick Insite on 14th October, Vice-Chancellor Nigel Thrift expressed his worries regarding the University’s financial position.

“We are all concerned by the current economic downturn and the impact it could have on house prices, employment and savings. Even before the credit crunch the University was planning for soaring energy prices, higher than expected wage costs and the need to invest in the University’s Vision 2015 strategy.

“I am hopeful that we will be able to confirm an acceptable budget for 08/09 although the next year promises to be extremely tight financially.”

The University refused to comment on the size of its 2008-09 budget, and therefore it remains uncertain how the funds will be managed this academic year. However, the hopes for a bright financial future are perhaps strengthened by Warwick’s economic past. According to its statement of accounts, the university had a surplus of £11.91 million in the academic year 2005-2006, out of a total income of £310.6 million. The year after that, the University’s income was £330.67 million, with a total surplus of £4.78 million. The fall in surplus from 2006 to 2007 was the result of a planned strategic investment in academic staff and research facilities, and had nothing to do with funds mismanagement or other financial problems.

Particular worries were expressed regarding how a potential reduction of funds might affect the Warwick Undergraduate Aid Programme (WUAP), which offers financial support to all students enrolled on a first degree course, paying fees at the rate of £3,225, whose family income is less than or equal to £36,000. However, Peter Dunn, Press and Media Relations Manager, reported that after 90 percent of the funds available for this purpose were spent in the 2007-2008 academic year, the University currently still has a sum of £3.6 million available for this year’s bursaries.

Despite affirming that the university’s financial position is “robust enough” to survive the crisis, Vice-Chancellor Thrift urged students and academics to try to reduce costs as far as possible, by doing simple things such as reflecting “on energy use and” making “special effort to turn off PCs and lights when not in use. “ Additionally, he reported that several fund saving plans will be released before Christmas and published on the Warwick Insite. In light of this, he added: “I would ask everyone to co-operate fully when crucial cost-savings initiatives are announced.”

The 2008-2009 financial year remains a mystery for now, as no official numbers regarding a budget or a potential surplus have been announced.