1994 Group Management Programme

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1994 Group Management Programme 7 January
2003 Birkbeck College planning, management
reporting David McGhie Director of Planning
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Birkbeck a brief introduction

• A distinctive mission
• to provide part-time HE courses which meet the
  educational, cultural, personal and career needs
  of adults.
• serving the London region
• maintain and develop excellence in research

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Profile

• 95 of our students attend PART-TIME
• 2001-02 Total income 45 MILLION
• 53 of income is from HEFCE recurrent grants
• Surpluses achieved every year
• but not in 2001-02 when a deficit of 690k was
  recorded!

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circa 16,500 students enrolled (headcount)
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but only 6,300 when viewed as FTEs
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Distribution of PT UG degree students across
London Boroughs
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Age Distribution of Birkbeck Students 2001/02
of students
Age group
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School / Faculty structure

• 4 Faculties
• Science 4 Schools
• Social Sciences 4 Schools
• Arts 7 Schools
• Continuing Education
• 3 Faculties headed by a Dean of Faculty who
  serves a fixed term. The post is effectively
  part-time
• Faculty of Continuing Education a full-time
  post
• Each School has a Head of School who serves a
  fixed term

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High-level management structure

• Strong central focus
• but management style is essentially light touch
• Committee structure plays essential role in
  prioritising/deciding on competing claims for
  resources
• Senior Management team (SMT) meetings monitors
  activities evaluates articulates new
  initiatives
• SMT meets every two weeks
• Financial Strategy Group - meets circa 6 times
  p.a.

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The Planning process(1)

• 4-yearly cycle currently 2002-2005
• Central Mission and objectives have not changed
• despite the many uncertainties in HE
• this provides a clear direction for Schools and
  admin departments to follow.

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The Planning process(2)

• Overall strategy for College is set centrally
  (i.e. SMT, FSG, Governors) and informs the set of
  College-wide strategies
• Growth in student numbers
• Learning and Teaching strategy,
• Information strategy,
• Estates development,
• Financial management,
• Human Resources, etc

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The Planning process(3)

• Each School compiles a planning statement
• Developments in Teaching and Research
• Constraints Problems SWOT analyses
• Identifies resource requirements
• Lack of accommodation frequently cited as the
  biggest constraint

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The Planning process(4)

• Faculty Deans shape the School statements into
  the Faculty plan which is incorporated into the
  full planning document
• Draft plan is taken through the committee cycle,
  (autumn spring terms)
• Monitoring updating of plans

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The Planning process(5)

• Value of the planning exercise?
• Originates with staff/schools and Administrative
  departments engenders sense of ownership
• Reveals problems/opportunities assists with
  resource planning
• Problems?
• Some schools are reluctant to become involved
• Difficulty in involving Governors in the process

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Resource allocation in practice(1)

• Staff costs gt60 of total expenditure
• Schools /Admin Units make bids to Staffing
  Committee, which meets 3 times a year
• Committee recommendations go for approval to
  Finance General Purposes Committee
• Salary levels set centrally
• Provides strong control of staff costs and
  security in financial planning

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Resource allocation in practice(2)

• Staffing Committee make decisions based on agreed
  criteria backed by management information
• Strategic development of Schools (e.g.
  introducing new subject areas)
• Mgt Information SSRs - Research Income Cost
  Centre outturn (surplus or deficit)
• Delegated authority (Chairmans action) when an
  immediate decision is needed

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Resource allocation in practice(3)

• Estates costs are circa 12 of expenditure
• Buildings Committee meets 3 times each year to
  agree major projects,draw up minor works
  programmes,and plans for accommodation
  reorganisation
• Recommendations made to F G P Committee
• Timing can be a problem!
• Delegate authority to Chairman and senior
  officers when appropriate

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Resourcesmanaged at School and Faculty level (1)

• Schools control non-staffing budgets
• i.e. Recurrent costs - maintenance equipment
  part-time staff short courses.
• Allocated centrally on formula basis using
  performance indicators, e.g. FTEs, RAE ratings
• Research grants
• Fixed term posts - but not permanent
• Partnerships/collaborative arrangements

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Resourcesmanaged at School and Faculty level (2)

• Faculty Deans have primary responsibility for
  budgetary control, Heads of School, secondary
• Virement of funds between budgets
• All underspends are carried forward to the next
  year

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Resourcesat School and Faculty level (3)

• Special funds schools are able to accumulate
  resources to fund their development
• Schools derive funds from Premium Fees on high
  demand courses, 25 take on Overseas fees, 75 of
  Short course and Consultancy income
• Total of 2.7 million available to schools
• Rewards schools for their enterprise
• Library and Computing Service also carry forward
  funds to aid their resource planning

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Monitoring and control (1)

• Heads of School have on-line access to Financial
  reports
• Monthly budgetary reports year to date spend
  remaining budget
• Training provided to staff new to managing
  budgets
• Finance Users Group meets regularly - informal
  forum for advice and information

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Monitoring and control (2)

• Actual course enrolments versus Targets
  reviewed each January
• Research income monitored termly by Research
  Committee and FGP Cttee
• Overview of performance of all Schools to provide
  whole College picture Cost Centre Model
• Aggregated information presented as Total
  income/expenditure for each school

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Monitoring and control (3)

• Cost Centre model produced bi-annually by
  Finance Planning Offices (Estimated and
  actual)
• Financial Strategy Group (chaired by Master)
  assesses cost centre reports
• Schools in deficit are requested to bring forward
  proposals for reducing or eliminating deficit
• e.g. new courses/enrolments/research
  activity/cost savings/discontinue unproductive
  teaching or research
• Recovery plans are they realistic?

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Birkbeck SchoolsSurplus/Deficit on DIRECT
income expenditure
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Birkbeck Schools Net Surplus/Deficit
including INDIRECT costs