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Introduction - Resources 2001/02

This publication is one of four reference volumes from the Higher Education Statistics Agency (HESA), which present statistics about the publicly funded higher education (HE) institutions of the United Kingdom (UK).

This volume draws on HESA's collection of data about finance and staff in HE in the financial year ending 31 July 2002. Tabulations are included which record and analyse the income and expenditure of universities and colleges (with data shown at institution level) and also about the characteristics of academic staff (including gender balance within academic subject departments, ethnicity, etc.).

The other reference volumes published by HESA are:

Students in Higher Education Institutions - which contains statistical data about all aspects of students in higher education institutions (HEIs), including their examination results. Tabulations also cover subjects of study at undergraduate and postgraduate levels. This publication is aimed at those seriously interested in finding out about issues concerning students in HE.

First Destinations of Students Leaving Higher Education Institutions - which includes statistics about the first destinations of graduates including employment rates, participation in further study and training, etc. A summary tabulation at institution level is included.

Higher Education Statistics for the United Kingdom - which is published in conjunction with the Government Statistical Service and which presents an overview of higher education (HE) from a statistical perspective, including statistics about applications, participation, institutional finance, staffing, student awards and loans.

The Agency also makes available a number of other related products. More information about these is set out at the end of this volume.

While HESA publishes extensively from the data it collects, it is recognised that specific requirements by some interested parties may not be addressed. Therefore, the Agency undertakes to provide a service to answer enquiries about the data collected, for which a charge will normally be levied.

In 2002 HESA collected finance and staff data from all publicly funded UK HEIs for the financial year 2001/02 (i.e. the period 1 August 2001 to 31 July 2002). This information was collected uniformly from all of the universities and HE colleges in the UK.

This commentary summarises and analyses the data contained within the main tables and presents summary statistics and key points for the finance data and staff data in turn.

Due to the provisions of the Data Protection Act 1998 and the Human Rights Act 1998, HESA now implements a strategy in published and released tabulations designed to prevent the disclosure of personal information about any individual. This strategy involves rounding all numbers to the nearest 5. A summary of this strategy is as follows:

  1. 0, 1, 2 are rounded to 0
  2. All other numbers are rounded to the nearest 5.

So for example 3 is represented as 5, 22 is represented as 20, 3286 is represented as 3285 while 0, 20, 55, 3510 remain unchanged.

Total figures are also subject to this rounding methodology; the consequence of which is that the sum of numbers in each row or column will rarely match the total shown precisely.

Average values, proportions and FTE values prepared by HESA are not subject to the above strategy, and will be calculated on precise raw numbers. However, percentages calculated on populations which contain less than 50 individuals will be suppressed and represented as ‘..’ as will averages based on populations of 7 or less.

Data on financial affairs of higher education institutions does not fall within the definition of ‘personal data’ under the Data Protection Act 1998, and is therefore exempt from the above provisions.

Finance Data

It should be noted that where comparisons are made between the latest financial year and a previous year, the previous year’s figures are as re-stated in the most recent financial statements available. They are not therefore necessarily reconcilable with figures for that year published in previous HESA volumes. However, it is understood that all such figures can be reconciled to the published accounts of the institutions.

On Finance Tables some of the totals do not add up to those shown due to rounding.

Key points:

Balance sheet

  • Tangible assets have increased by £996 million (7%).
  • There has been a substantial increase in short-term borrowing (£346 million) and a decrease in short-term investments (£128 million).

Income and expenditure

  • Income during the year amounted to £14.5 billion.
  • The surplus of Income over expenditure was £64 million.

Sources of income

  • Funding council grants increased by almost £351 million (6.6%).
  • The amount of income received from tuition fees & education grants & contracts increased by 9.2%. UK and EU domiciled students charged full-time HE course standard fees accounted for 37.4% of income from tuition fees & education grants & contracts.
  • Research councils provided just under a third of research grants & contracts; the largest share of the total.

Expenditure

  • Increases of £385 million in operating expenses and £451 million in staff costs largely accounted for a 6.5% rise in total expenditure

Balance sheet

A comparison of the HE sector's balance sheet at 31 July 2002 with that at 31 July 2001 shows a £346 million increase in short-term creditors while amounts due after more than one year have increased by £83 million. This increase in short-term borrowing was matched by substantial increase in debtors (£66 million).

Table A - Balance sheet

Balance (£M) as at 31 July
    2002 2001 Change % change
Fixed assets        
  Tangible assets 14806 13810 996 7.2%
  Investments 513 566 -52 9.2%
  Total 15319 14376 943 6.6%
Endowment assets        
  Cash at bank 140 142 -2 -1.2%
  Other Investments 2232 2534 -302 -11.9%
  Total 2373 2676 -304 -11.3%
Current assets        
  Stock 66 69 -3 -4.8%
  Debtors 1796 1729 66 3.8%
  Investments 1547 1419 128 9.1 %
  Cash at bank & in hand 672 605 67 11.1%
  Total 4081 3822 258 6.8%
Creditors: amounts falling due within one year 3269 2923 346 11.8%
Net current assets 821 900 -88 -9.7%
Total assets less current liabilities 18504 17952 552 3.1%
Creditors: amounts falling due after more than one year 2729 2646 83 3.1%
Provisions for liabilities & charges 420 393 27 6.9 %
Net Assets 15355 14913 442 3.0%
Deferred capital grants 3810 3273 536 16.4%
Endowments        
  Specific 1983 2233 -250 -11.2%
  General 361 449 -58 -12.9%
  Total 2374 2682 -308 -11.5%
Reserves        
  Revaluation reserve 4389 4380 9 0.2%
  Minority interest 45 42 3 5.9%
  General reserve 4737 4535 202 4.5%
  Total 9171 8957 214 2.4%
Total 15355 14913 442 3.0%

The value of tangible assets has increased by £996 million (7.2%), while endowment assets have decreased by £304 million (-11.3%). Endowments (specific and general) have decreased by £308 million from last year, compared with a decrease of £140 million from 2000 to 2001.

Income and expenditure

The income of the HE sector totalled £14.5 billion during the financial year to 31 July 2002; this compares with £13.5 billion for the previous year. The surplus/deficit of income over expenditure increased by £99.4 million from -£35.1 million in 2000/01 to £64.3 million in 2001/02.

Table B - Total Income and Expenditure, Financial Years 2001/02 and 2000/01 £ Thousands
  2001/02 2000/2001 % change
Income 14490875 13498558 7.4%
Expenditure 14426537 13533656 6.6%
Surplus/Deficit(#7) 64338 -35098 -283.3%
Surplus/Deficit as percentage of income -0.4% 0.3%  
# see relevant footnote in Notes on Tables.

To provide the context for these figures, Chart 1 shows the HE sector’s surplus/deficit (re-based and re-calculated as appropriate) for each of the years for which HESA now has data. Data were returned to HESA for financial year 1993/94 onwards; figures for previous financial years are set out in earlier editions of this volume.

Surplus/deficit of income over expenditure, 1993/94 to 2001/02

The number of individual institutions reporting a surplus or breakeven was 109 in 2001/02 compared with 100 in 2000/01. Deficits were reported by 62 institutions in 2001/02 compared with 71 institutions in 2000/01. 40 institutions reported deficits in both financial years.

The final table in this section aggregates figures for institutions funded by each of the four UK countries’ funding councils. It should be noted that in this and other tables, The Open University is counted as an institution based in England.

Table C - Income and Expenditure by UK Country £ Thousands
  Financial Year 2001/02   Financial Year 2000/2001
Location of
Institution
Income Expenditure Surplus/ Deficit % of income   Income Expenditure Surplus/ Deficit % of income
England 11837076 11782385 56691 0.5%   11046339 11064127 -17788 -0.2%
Wales 696478 685987 10491 1.5%   641364 637234 4130 0.6%
Scotland 1663461 1660569 2892 0.2%   1539887 1553871 -13984 -0.9%
Northern Ireland 291860 297596 -5736 -2.0%   270968 278424 -7456 -2.8%
Total 14490875 14426537 64338 0.4%   13498558 13533656 -35098 0.3%

Income

The table and chart below summarise institutions’ sources of income in terms of proportions contributed by each source and the growth or otherwise over time.

Table D - Sources of Income £ Thousands
  2001/02 2000/2001 % change
Funding council grants 5692090 5341317 6.6%
Tuition fees & education grants & contracts 3338194 3056585 9.2%
Research grants & contracts 2433418 2209572 10.1%
Other income 2769047 2600949 6.5%
Endowment & investment income 285126 290135 -11.0%
Total income 14490875 13498558 7.4%

Sources of income, 1997/98 to 2001/02

Funding council grants have shown a fifth consecutive increase this year and represent a 39.3% proportion of total income. Tuition fees & education grants & contracts represent a 23.0% proportion of total income.

Funding council grants

Institutional funds for academic and other purposes are allocated primarily by the higher education funding councils for England, Wales and Scotland, and by the Department of Education for Northern Ireland acting as a funding agency for the four Northern Ireland higher education institutions. Some funds are also provided by the Teacher Training Agency (TTA), and further education funding councils in England and Wales in relation to some categories of FE teaching. (In Scotland it is impossible to disaggregate the funding of FE teaching.)

Table E - Breakdown of Funding Council Grants 2001/02 £ Thousands
    % of total
Recurrent - teaching 4011202 70.5%
Recurrent - research 1085021 19.1%
Recurrent - other (inc. special funding) 417033 7.3%
Release of deferred capital grants - buildings 57900 1.0%
Release of deferred capital grants - equipment 47814 0.8%
Grants for FE provision (not applicable in Scotland) 73120 1.3%
Total funding council grants 5692090 100%

Tuition fees and education grants and contracts

The total income for tuition fees & education grants & contracts increased by 9.2% this year from £3.06 billion in 2000/01 to £3.34 billion. Income from overseas students provides 26.2% of this category's income.

Table F - Income from Tuition Fees and Education Grants and Contracts 2000/01 £ Thousands
      % of total
HE course fees    
  Full-time UK & EC domiciled students charged standard fees 1248119 37.4%
  Full-time UK & EC domiciled students charged non-standard fees 505361 15.1%
  Part-time HE course fees 405785 12.2%
  Overseas (Non EC) 875485 26.2%
  Sub-total HE course fees 3034750 90.9%
Non-credit-bearing course fees 248563 7.4%
FE course fees 25002 0.7%
Research training support grants 29879 0.9%
Total tuition fees & education grants & contracts 3338194 100.0%

Research grants and contracts

Research grants & contracts increased by 10.2% this year from £2.2 billion in 2000/01 to £2.4 billion. The Office of Science and Technology (OST) research councils continue to be the largest providers by representing a 33.1% proportion of total research grants & contracts income.

Table G - Income from Research Grants and Contracts 2001/02 £ Thousands
    % of total
OST research councils 805360 33.1%
UK based charities 606885 24.9%
UK central government bodies, local authorities, health & hospital authorities 413163 17.0%
UK industry, commerce & public corps 250232 10.3%
EU government bodies 158455 6.5%
EU other 30409 1.2%
Other overseas 115605 4.8%
Other sources 53309 2.2%
Total research grants & contracts 2433418 100.0%

Other income

This category increased by 6.5% this year from £2.6 billion in 2000/01 to £2.8 billion.

Table H - Other Income 2001/02 £ Thousands
      % of total
Other services rendered    
  Course validation fees 17791 0.6%
  Teaching companies 25638 0.9%
  UK central government bodies, local authorities, health & hospital authorities 208743 7.5%
  UK industry, commerce & public corporations 137866 5.0%
  EU government bodies 53692 1.9%
  EU other 7595 0.3%
  Other overseas 30572 1.1%
  Other sources 235289 8.5%
  Sub-total other services rendered 717186 25.9%
Residences & catering operations 967802 35.0%
Grants from local authorities 872 0.0%
Income from health & hospital authorities 227303 8.2%
Released from deferred capital grants 45858 1.7%
Income from intellectual property rights 19874 0.7%
Other operating income 790152 28.5%
Total other income 2769047 100.0%

Expenditure

The 6.5% (£882 million) rise in expenditure to £14.4 billion as shown in Table I was largely made up of an increase of £451 million in staff costs and £386 million in other operating expenses.

Table I -  Expenditure, Financial Years ending 2001/02 and 2000/2001 £ Thousands
  2001/02 2000/01 % change
Staff costs 8362162 7911111 5.7%
Other operating expenses 5193386 4807898 8.0%
Depreciation 669533 614087 9.0%
Interest payable 201456 211387 -4.7%
Total 14426537 13544483 6.5%

The percentage distribution of expenditure by activity within the total as shown in Table J has changed little from the previous year. Academic departments represent a 41.4% proportion of total expenditure and residences and catering operations represent a proportion of just 6.3%.

The clinical medicine cost centre and business & management studies cost centre continue to have the largest share of total expenditure with 9% each. They spent £567 million and £543 million respectively in 2001/02. The social studies cost centre and nursing & paramedical studies cost centre have a 8% and 7% share of total expenditure respectively. They spent £449 million and £399 million respectively in 2001/02.

Table J - Distribution of Expenditure by Activity 2001/02 £ Thousands
    % of total
Academic departments 5976479 41.4%
Academic services 1095784 7.6%
Administrative & central services 1840339 12.8%
Premises 1519501 10.5%
Residences & catering operations 905928 6.3%
Research grants & contracts 2114721 14.7%
Other expenditure 973785 6.7%
Total expenditure 14426537 100.0%

Staff data

Analysis by ‘staff grade’ is only meaningful where institutions have reported their staff within nationally recognised grade structures or within internal grade structures, which facilitate differentiation on a similar basis. Several institutions, including some large post-1992 universities, report their staff on a single grade structure, which does not have an independent category for the professor grade. Hence staff on the professor grade at institutions using the single grade scale cannot be distinguished from the senior lecturer grade, leading to the number of professors being under-counted for these institutions and for the sector as a whole. This under-counting will have a consequential effect on the proportions of professors within particular subject areas, cost centres and by gender. The Agency therefore advises caution in analysis of staff by grade.

Key points:

  • The total number of academic staff in the HE sector grew by 2.3% from 139,940 in 2000/01 to 143,150 in 2001/02.
  • 67% of all full-time posts were wholly financed by the institutions themselves. The comparative figure in 1999/2000 and 2000/01 was 69%.
  • 38% of academic staff in the HE sector in 2001/02 were women. The number of female academic staff increased from 2000/01 by 5% in comparison to a 1% increase of men.
  • A quarter of all full-time staff were employed in medicine, dentistry & health departments.
  • 79% of researchers were funded other than wholly by the institutions themselves.
  • Just under a half of full-time non-clinical wholly institutionally financed staff were aged over 45.
  • The average age of all academic staff was 42.
  • 90% of full-time non-clinical wholly institutionally financed academic staff were working in the same institution as they were in the previous year.
  • 5% of responding UK nationality staff were known to have a non-white ethnicity and 2% of responding staff of UK nationality were known to have a disability.

General

Table K - Summary - Academic Staff in all UK Institutions 2001/02

United Kingdom

    Full-time Part-time Total
Mode of employment 119900 235250 143150
Gender      
  Female 41225 12725 53955
  Male 78675 10520 89200
Principal source of salary      
  Wholly institutionally financed 80410 17810 98220
  All other sources of finance 39490 5440 44930
Primary employment function      
  Teaching/Teaching & research 80840 17465 98305
  Research only 39060 5785 44845
Grade(#12)      
  Professors 12820 990 13810
  Senior lecturers & researchers 22720 1910 24360
  Lecturers 41495 8650 50140
  Researchers 35200 5200 40400
  Other grades 7665 6505 14170
Clinical status      
  Non-clinical 113695 22345 136040
  Clinical 6205 905 7110

In this table 0, 1, 2 are rounded to 0. All other numbers are rounded up or down to the nearest 5.

# see relevant footnote in Notes on Tables.

In the academic year to 31 July 2002, the total number of academic staff employed by UK HEIs was 143,150. The 2% growth rate in staff numbers during the year was more than accounted for by continued growth in the number of those employed full-time (from 116,405 to 119,900) who comprised some 84% of staff.

While just over one third (38%) of all staff were female, women comprised just over a half (55%) of those working part-time.

67% of full-time posts were wholly financed by the institutions themselves, this proportion rising to 77% for part-time posts. 67% of full-time posts and 75% of part-time posts include teaching as a primary employment function.

Region and clinical status

Table L - Full-time Academic Staff in all UK Institutions by Location of Institution, Gender, Principle Source of Salary and Clinical Status 2001/02

United Kingdom

      Location of Institution  
      England Wales Scotland Northern
Ireland
Total
All full-time staff 96850 5770 14330 2955 119900
Female 33520 1885 4810 1005 41225
  Wholly institutionally financed 20510 1310 2515 690 25095
    Non-clinical 20160 1275 2530 685 24650
    Clinical 355 30 60 5 450
  All other sources of finance 13010 575 2225 315 16130
    Non-clinical 12030 560 2095 290 14975
    Clinical 985 15 130 25 1155
Male 63330 3885 9520 1945 78675
  Wholly institutionally financed 44285 3030 6515 1485 55315
    Non-clinical 42860 2955 6245 1475 53530
    Clinical 1430 75 270 10 1785
  All other sources of finance 19040 855 3005 465 23360
    Non-clinical 16655 775 2745 370 20545
    Clinical 2390 80 260 90 2820
In this table 0, 1, 2 are rounded to 0. All other numbers are rounded up or down to the nearest 5.

Overall, 63% of full-time clinical posts were financed other than by the institutions themselves; this compares with 31% for all full-time posts. Women made up 25% of all full-time staff with clinical status.

Full-time posts held by women were less likely to be funded wholly by the institutions themselves compared to men; 39% of such female staff were funded other than wholly by the institution compared with 30% of males. There was some variation at UK country level, most notably, 46% of full-time women employed in Scottish institutions were at least in part externally funded.

Departmental cost centres, principal source of salary and grade

Table M - Full-time Academic Staff in all UK institutions by Principal Source of Salary, Gender and Departmental Cost Centre 2001/02

United Kingdom

    Wholly Institutionally Financed   All Other Sources of Finance
    Female Male Total   Female Male Total
Departmental cost centres 25095 55315 80410   16130 23360 39490
  Medicine, dentistry & health 6925 7730 14650   8730 8135 16865
  Agriculture, forestry & veterinary science 440 1180 1625   360 375 740
  Biological, mathematical & physical science 2690 11380 14070   3880 7735 11615
  Engineering & technology 1395 9540 10930   795 4575 5550
  Architecture & planning 350 1400 1745   125 215 340
  Administrative, business & social studies 5655 12215 17870   1210 1380 2595
  Language based studies 2190 2715 4905   165 155 315
  Other arts 2475 5675 8150   345 460 805
  Education 2585 2995 5580   250 220 470
  Academic services 260 300 560   65 80 145
  Administration & central services 135 190 320   20 20 50
  Premises 0 0 0   0 0 0
  Residences & catering 0 0 0   0 0 0
In this table 0, 1, 2 are rounded to 0. All other numbers are rounded up or down to the nearest 5.

26% of all full-time staff worked in medicine, dentistry & health and a further 21% of all full-time staff worked in biological, mathematical & physical science departments.

38% of the sector's female full-time employees worked in medicine, dentistry & health while biological, mathematical & physical science departments accounted for nearly a quarter of male full-time employees.

54% of full-time staff in departments of medicine, dentistry & health and 45% in biological, mathematical & physical science were financed other than wholly by the institutions themselves. Departments with the fewest partially or wholly externally funded full-time staff were in the areas of language based studies (6%), education (8%) and other arts (9%)

Since the 2000/01 academic year, the total number of full-time academic staff working in medicine, dentistry & health departments has increased by 6% and decreased in education departments by 2%.

While overall, 33% of full-time staff were partially or wholly externally funded, 81% of full-time researchers were so financed; full-time researchers made up nearly three quarters (73%) of all staff for whom finance was received partially or wholly from outside the institution.

Table N - Full-time Academic Staff in all UK Institutions by Principal Source of Salary, Grade(#9) and Gender 2001/02

United Kingdom

    Principal Source of Salary
    Wholly institutionally financed All other sources of finance Total
Professors 11700 1120 12828
  Female 1495 190 1685
  Male 10205 935 11140
Senior lecturers & researchers 20310 2410 22720
  Female 4995 785 5780
  Male 15320 1620 16940
Lecturers 36715 4775 41495
  Female 13955 2195 16150
  Male 22760 2580 25340
Researchers 6515 28685 35200
  Female 2670 11870 14540
  Male 3845 16815 20660
Other grades 5170 2500 7665
  Female 1980 1090 3070
  Male 3185 1410 4595
Total 80410 39490 119900

In this table 0, 1, 2 are rounded to 0. All other numbers are rounded up or down to the nearest 5.

# see relevant footnote in Notes on Tables.

Age

(Note: the figures in this section and the following section relate only to full-time non-clinical staff, wholly financed by the institution).

Table P - Full-time Non-clinical Wholly Institutionally Financed Academic Staff by Grade(#12) and Age 2001/02

United Kingdom

  Professors Senior lecturers & researchers Lecturers Researchers Other grades    Total
Under 26 0 5 215 720 255 1195
26-30 10 85 2945 1735 460 5235
31-35 100 1050 6620 1475 485 9730
36-40 655 2775 7145 955 495 12020
41-45 1375 3490 5760 605 705 11940
46-50 2195 3725 5280 420 860 12485
51-55 3045 4470 4975 350 1025 13860
56-60 2285 2980 2475 180 540 8455
61-65 1095 1030 705 55 160 3040
66 + 105 50 25 10 25 210
Unknown 0 0 5 0 0 10
Total 10860 19660 36145 6505 5005 78180

In this table 0, 1, 2 are rounded to 0. All other numbers are rounded up or down to the nearest 5.

# see relevant footnote in Notes on Tables.

Of those staff whose age was known, 49% were aged over 45 and 18% were aged between 51 and 55. 42% of senior lecturers & researchers and almost half of professors (48%) were aged between 46 and 55, while three quarters (75%) of researchers were aged 40 years or under. The average mean age of all academic staff in the UK was 42.

Inflow/Outflow

During the academic year to 31 July 2002, 90% of staff were working in the same institution as they were one year earlier and a further 4% had been working in another HEI. A loss of 5,645 staff from the HE sector outnumbered the inflow of 5,050 staff. Retirement was the largest single known reason for departures and the sector gained more staff from overseas than left to work overseas. Caution should be exercised when further analysing staff flows on account of the size of the unknown category.

Table Q - Full-time Non-Clinical Wholly Institutionally Financed Academic Staff by Employment in the Previous Year and Destination 2001/02

United Kingdom

Total   Total
Employment in the previous year     Destination  
  Non-clinical 78180     Non-clinical 78180
    Current institution 70295       Current institution 71485
    UK other HEI 2835       UK other HEI 1050
  Inflow 5055     Outflow 5645
    UK 2705       UK 650
    Overseas 885       Overseas 490
    Not in regular employment 90       Not in regular employment 315
    Not known 1370       Retirement 1010
              Death 70
              Not known 3115
In this table 0, 1, 2 are rounded to 0. All other numbers are rounded up or down to the nearest 5.

Chart 3 displays graphically the inflow and outflow by age groups.

Inflow and outflow of full-time wholly institutionally financed academic staff (non-clinical) 2001/02

Ethnicity

Although ethnicity was not known for 9% of academic staff of UK nationality, of those of known ethnicity, 5% (5,460 staff) were of non-white ethnicity. Chart 4 shows the percentages of those of non-white ethnicity represented by each visible ethnic minority group.

Known non-white ethnicity of UK nationality academic staff 2001/02

Disability

Of the 95% of UK nationality staff who disclosed this information, 2% were known to be disabled.

Table R - Academic Staff of UK Nationality by Disability Status and Mode of Employment 2000/01

United Kingdom

  Not known to be disabled Disabled but not registered Registered disabled Total for whom returns were made Information not provided Total
Total 102210 1400 175 103780 5840 109620
Full-time 85360 1145 145 86650 4780 91430
Part-time 16850 255 30 17135 1060 18090
In this table 0, 1, 2 are rounded to 0. All other numbers are rounded up or down to the nearest 5.