# Finance record 2020/21 - Key Financial Indicator (KFI) definitions

Version 1.1 Produced 2021-11-24

The KFIs shown are a set of calculations extracted from the Finance return. They are not performance indicators and take no account of higher education provider (HEP) characteristics such as the range of subjects taught or the types of provision.

HEPs should note that for working out ratios, the following should be applied to each calculation:

- For percentage ratios, multiply by 100
- For days ratios, multiply by 365

#### 1. Surplus/(deficit) as a % of total income

*Numerator*

Surplus/(deficit) before other gains/losses and share of surplus/(deficit) in joint ventures and associates

*Denominator*

Income: Total income

#### 1a. Surplus/(deficit) excl. pension adjustment as a % of total income

*Numerator*

Surplus/(deficit) before other gains/losses and share of surplus/(deficit) in joint ventures and associates

*plus*

Staff costs: Changes to pension provisions and pension adjustments (USS)

*plus*

Staff costs: Changes to pension provisions and pension adjustments (Other)

*Denominator*

Income: Total income

#### 2. Staff costs as a % of total income

*Numerator*

Expenditure: Staff costs

*Denominator*

Income: Total income

#### 2a. Staff costs excl. pension adjustment as a % of total income

*Numerator*

Expenditure: Staff costs

*minus*

Staff costs: Changes to pension provisions and pension adjustments (USS)

*minus*

Staff costs: Changes to pension provisions and pension adjustments (Other)

*Denominator*

Income: Total income

#### 3. Premises costs as a % of total costs

*Numerator*

Premises: Total premises, Other operating expenses

*Denominator*

Expenditure: Total expenditure

#### 3a. Premises costs as a % of total costs excl. pension adjustment

*Numerator*

Premises: Total premises, Other operating expenses

*Denominator*

Expenditure: Total expenditure

*minus*

Staff costs: Changes to pension provisions and pension adjustments (USS)

*minus*

Staff costs: Changes to pension provisions and pension adjustments (Other)

#### 4. Unrestricted reserves as a % of total income

*Numerator*

Unrestricted reserves: Income and expenditure reserve â€“ unrestricted

*plus*

Unrestricted reserves: Revaluation reserve

*Denominator*

Income: Total income

#### 5. External borrowing as a % of total income

*Numerator*

Creditors - amounts falling due within one year: Bank overdrafts

*plus*

Creditors - amounts falling due within one year: Bank loans and external borrowing

*plus*

Creditors - amounts falling due within one year: Obligations under finance leases and service concessions

*plus*

Creditors - amounts falling due within one year: Loans repayable to funding council

*plus*

Creditors - amounts falling due within one year: Director, inter-company and related party loans

*plus*

Creditors: amounts falling due after more than one year: Bank loans and external borrowing

*plus*

Creditors: amounts falling due after more than one year: Obligations under finance leases and service concessions

*plus*

Creditors: amounts falling due after more than one year: Loans repayable to funding council (including financial transactions)

*plus*

Creditors: amounts falling due after more than one year: Director, inter-company and related party loans

*Denominator*

Income: Total income

#### 6. Days ratio of Total net assets to total expenditure

*Numerator*

Total net assets

*Denominator*

Expenditure: Total expenditure

#### 6a. Days ratio of total net assets to total expenditure excl. pension adjustment

*Numerator*

Total net assets

*Denominator*

Expenditure: Total expenditure

*minus*

Staff costs: Changes to pension provisions and pension adjustments (USS)

*minus*

Staff costs: Changes to pension provisions and pension adjustments (Other)

#### 7. Ratio of current assets to current liabilities

*Numerator*

Current assets: Total current assets

*Denominator*

Creditors - amounts falling due within one year: Total creditors (amounts falling due within one year)

#### 8. Net cash inflow from operating activities as a % of total income

*Numerator*

Net cash inflow from operating activities

*Denominator*

Income: Total income

#### 9. Net liquidity days

*Numerator*

Current assets: Investments

*plus*

Current assets: Cash and cash equivalents

*minus*

Creditors: amounts falling due within one year: Bank overdrafts

*Denominator*

Expenditure: Total expenditure

*minus*

Expenditure: Depreciation

#### 9a. Net liquidity days excl. pension adjustment

*Numerator*Current assets: Investments

*plus*

Current assets: Cash and cash equivalents

*minus*

Creditors: amounts falling due within one year: Bank overdrafts

*Denominator*

Expenditure: Total expenditure

*minus*

Expenditure: Depreciation

*minus*

Staff costs: Changes to pension provisions and pension adjustments (USS)

*minus*

Staff costs: Changes to pension provisions and pension adjustments (Other)

#### 10. Debt service ratio

*Numerator*

Net cash inflow from operating activities

*Denominator*

Cash flows from financing activities: Interest paid

*plus*

Cash flows from financing activities: Interest element of finance lease and service concession payments

*plus*

Cash flows from financing activities: Repayments of amounts borrowed

*plus*

Cash flows from financing activities: Capital element of finance lease and service concession payments

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