University finances in ship-shape

The University of Warwick has released its annual report for the financial year 2009/10 and figures show a resounding improvement within expenditure on facilities and academic departments, rising by approximately £14 million compared to the last financial year.

The comprehensive 60-page document which published figures up until 31 July 2010 also show a dramatically increased surplus of £9.3 million (up 250 percent), aided significantly by the increased uptake of non-EU students during the period. This totalled with ‘overseas’ undergraduate and postgraduate numbers increasing by 16.4 percent and 21.8 percent respectively.

Indeed, for the first time in the University’s history, income acquired from overseas students’ fees (£59 million) exceeded that of fees received from home or EU nationals (£57 million). Fees received from non-EU sources were up a startling 25 percent and the University made a confession in the report that the pressure for increased income was being placed on student fees. There was no suggestion either that fee rises will stop; with the expected hike in annual tuition fees to £9,000, beginning in 2012, boosting income considerably.

Despite the clear focus of the University’s orientation it has increased EU student numbers by 1.7 percent, bucking the trend shown in UCAS reports where intake of EU students decreased by 0.3 per cent in general.

Overall, the report shows University turnover grew by 8.7 percent to £408.5 million and the University’s total net assets (land, buildings, technology etc.) also grew by 9.8 percent to £259.9 million.

Although academic spending was increased, capital investment in new facilities actually decreased on the previous year to £46.8 million, down from last year’s £51.9 million. However, the University comments that building projects such as the construction of the new ‘Bluebell’ accommodation, refurbishment of the Students’ Union and expansion of the Medical School underline that it is committed to continued expansion and expenditure on facilities for the benefit of students.

In addition, it emerges in the report that the Vice-Chancellor, Professor Nigel Thrift, has taken a pay cut of £10,000 compared with a general increase in administrative staff wages. However, his annual salary is still £270,000.

Furthermore, the total academic staff numbers have increased by 27 persons to 1,769. 75 Staff redundancies have been made in all other areas of the University, reducing total staff numbers to 4,448. The student population at Warwick is 18,434. Despite the increase in places awarded to foreign students they still only comprise 23 per cent of the total student population.

In an overview of the report, the University Treasurer, Brian-Woods Scawen, commented, “The results for the year represent a strong financial performance… as we move into a period of greater financial uncertainty.” He cited “continuing pressures on public funding, a new system of student fees and continuing UK and global economic weakness…” as potential hazards in the future in what was a largely conservative statement despite the results of the report.