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Finance record 2021/22 - Key Financial Indicator (KFI) definitions

Back to C21031

Version 1.0 Produced 2022-08-12

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 - 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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