Review of the Income and Expenditure Model

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Review of the Income and Expenditure Model

• Professor Chris Gaskell
• Pro Vice-Chancellor
• Vikki Goddard
• Director, Academic Planning and Teaching Quality

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Rationale

• To support and extend the changes being made to
  the overall University budget
• To reflect and reward current strategic
  priorities
• To encompass a more comprehensive coverage of
  activities across Budget Centres

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Rationale

• To incorporate the recent developments in respect
  of full economic costing
• To enable an optimal response to the challenges
  faced by the sector during a time of significant
  change
• To maximise the benefits of improved management
  information and financial reporting

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Strategic Priorities

• Corporate Plan 2004-2007
• To enhance our global presence, as a destination
  for international students
• To seek funded growth across the full range of
  research, teaching and reach-out activities
• To improve our research performance and secure
  our place amongst the elite UK research-driven
  Universities
• To consider the size and shape of the
  Universitys postgraduate research student
  population in light of our overall objectives and
  to ensure that this is optimised

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Proposed Enhancements

• A more comprehensive coverage of activities (core
  funding, other academic, research and services
  rendered)
• A more devolved model for core funding
  identifying an allocation of central costs to
  budget centres, linked to FEC
• The incorporation of incentives through a
  baseline plus model
• More timely information in relation to core
  funding e.g. through the use of student number
  forecasting

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Development

• The review of the IE is an evolutionary process,
  which will require significant development time
• More information will be made available, but
  there is no fundamental change to the core
  funding area of the IE
• There will be an interim position in relation to
  direct and indirect costs during the transition
  to FEC

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Development

• Budget Centres will be provided with a budgeted
  IE position for 2005/06 as part of the annual
  planning and budgetary process
• There will be specific support for Deans and
  Heads of Department, through the existing Support
  Teams and additional mechanisms such as this
  presentation

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Planning Statement

• The IE model is one of a series of performance
  indicators which are used as tools to support the
  Planning and Budgetary Process
• The Planning Statement is the key document in
  supporting the process
• There will be increasing use of forecasting to
  develop a forward look

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Planning Statement

• Given strategic priorities, especially around the
  RAE, important to address plans until 2008. Key
  issues are-
• Staff Planning for sustainability
• Use of the Academic reserve
• Research Council income
• Quality of students

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Further Information

• Further information can be found on the Planning
  and Development Division web site
  http//www.liv.ac.uk/PAD, including
• The slides for this presentation
• An outline timetable for the proposed changes
• An illustration of the proposed new Income and
  Expenditure Model