HE Finance Plus 2012/13

Definitions

Region of institution
Institution identifiers
Income
Sources of income
Categories of expenditure
Expenditure activities
Capital expenditure
Consolidated financial statement tables
Key Financial Indicators

Coverage

The annual HESA Finance Statistics Return (FSR) is the main source of historical financial information on the total activities of all UK higher education institutions (HEIs). The FSR provides data in respect of the consolidated income and expenditure account, consolidated statement of total recognised gains and losses, consolidated balance sheet and consolidated cash flow statement. The figures recorded for the consolidated income and expenditure account, balance sheet headings, statement of recognised gains and losses and cash flow statement should be the same as those recorded in the HEI's audited/published financial statements. The financial statements should be prepared in accordance with the Statement of recommended practice: accounting for further and higher education (SORP), published by Universities UK (SORP_2007.pdf), and comply with the financial reporting requirements contained in any UK legislation relevant to their constitution, such as the Companies Act and the Charities Act. The FSR uses the principles in the SORP to analyse the financial statements in greater detail than is required for published financial statements.

A copy of the 2012/13 FSR template, used by HEIs to return their data to HESA, can be downloaded from the HESA website. The complete FSR with HE-BCI Survey Collection (2012/13) coding manual can be viewed at www.hesa.ac.uk/2012/13. This coding manual contains guidance to HEIs for the return of their finance data, and includes all supporting documentation.

All values in the FSR are returned in units of £1,000 and where necessary rounded to the nearest £1,000.

2012/13 financial data relates to the institutions' financial year 1 August 2012 to 31 July 2013.

2011/12 financial data relates to the institutions' financial year 1 August 2011 to 31 July 2012.

2010/11 financial data relates to the institutions' financial year 1 August 2010 to 31 July 2011.

Region of institution

The allocation of an HEI to a geographical region is done by reference to the administrative centre of that institution. Regions in this context are the nine England Regions (formerly Government Office Region) and Wales, Scotland and Northern Ireland.

HESA allocates HEIs to Regions as follows:

North East (NEAS), North West (NWES), Yorkshire and The Humber (YORH), East Midlands (EMID), West Midlands (WMID), East of England (EAST), London (LOND), South East (SEAS), South West (SWES), Scotland (SCOT), Wales (WALE) and Northern Ireland (NIRE).

Although The Open University teaches throughout the UK, its administrative centre is located in South East England, and except where shown separately is counted as a wholly English institution.

Institution identifiers

Institution identifier (INSTID) is the unique identifier allocated to institutions by HESA.

UK Provider Reference Number (UKPRN) is the unique identifier allocated to institutions by the UK Register of Learning Providers (UKRLP).

Income and expenditure

The categories used in the FSR for the HEI income and expenditure figures are defined below.

Income

Total income identifies the gross income position, i.e. it includes income attributable to a share in joint venture(s).

Less: share of income in joint venture(s) is used to deduct the share of income in joint venture(s) from the total income.

Net income is total income less the share of income in joint venture(s).

Joint venture is an entity in which the reporting HEI holds an interest on a long-term basis, and which is jointly controlled by the HEI and one or more ventures under a contractual arrangement. The HEI's share of income (and expenditure) should be recognised in the HEI's income (and expenditure) account.

Surplus/(deficit) for the year is calculated as net income minus total expenditure.

Sources of income

Income is analysed by five main sources:

Funding body grants
Tuition fees and education contracts
Research grants and contracts
Other income
Endowment and investment income.

The total of each of these headings should be the same as the HEI's financial statement, showing the gross position for the HEI.

1. Funding body grants

Funding body grants includes those from the Higher Education Funding Council for England (HEFCE), the Higher Education Funding Council for Wales (HEFCW), the Scottish Further and Higher Education Funding Council (SFC), the National College for Teaching and Leadership (NCTL) and the Department for Employment and Learning Northern Ireland (DEL(NI)).

Grants for HE provision (SFC grants for all provision) This includes recurrent and capital grants as defined below in respect of higher education (HE) provision, except in Scotland where this category also includes grants for further education (FE) provision.

Recurrent (Teaching) includes the total grant (or main and associated grants) for teaching, including widening participation and tuition fee compensation, as shown in the annual grant letter or additional grant letter from the funding councils.

Recurrent (Research) includes the total grant (or main and associated grants) for research as shown in the annual grant letter or additional grant letter from the funding councils.

Recurrent - Other (including special funding) includes all other recurrent grants and grants to support special initiatives as stated in the annual grant letter or additional grant letter from the funding councils. Income relating to non-capitalised expenditure, for example Learning and Teaching Capital Investment Fund or Research Capital Investment Fund (RCIF) are included in this category.

Release of deferred capital grants - Buildings comprises the release of deferred capital grants where capital funding (project or formula) has been applied to the purchase of an asset that has been capitalised. This includes grants from the RCIF, Strategic Development Fund (SDF) and the funding bodies element of the UK Research Partnership Investment Fund (UKRPIF) grants.

Release of deferred capital grants - Equipment comprises the release of deferred capital grants where the equipment grant (including grants from the Science Research Investment Fund (SRIF), SDF, Project Capital Allocation (PCA), Centres for Excellence in Teaching and Learning and the funding bodies element of the UK Research Partnership Investment Fund (UKRPIF) grants) has been applied to the purchase of furniture or other assets that have been capitalised.

Grants for FE provision (not applicable to SFC) includes all funding council grants for the provision of further education (FE). Grants from HE funding councils and FE funding councils are added together. This category does not apply to SFC funded institutions, as they do not receive separately identified grants for non-advanced/FE provision.

2. Tuition fees and education contracts

This includes all income received in respect of fees for students on all courses for which fees are charged. Where fees are waived in whole or in part, the income due, though not received, is included.

The source of tuition fees and education contracts includes the Student Loans Company (SLC), Local Education Authorities (LEA), Student Awards Agency for Scotland (SAAS), the Department for Employment and Learning Northern Ireland (DEL(NI)), the Department of Health (DH) (including the National Health Service (NHS) and NHS Trusts), Regional Offices of the NHS Executive (RONE) and the Scottish Home and Health Department (SHHD), plus other sources not listed, including individual students.

Standard rate (Scotland only) includes standard fees for full-time and sandwich undergraduate or postgraduate courses for home and European Union (EU) domiciled students.

Rest of UK de-regulated fees (Scotland only) includes fees for full-time and sandwich undergraduate or postgraduate courses for home and European Union (EU) domiciled students.

Non-standard rate (Scotland only) includes all other fees for full-time and sandwich undergraduate or postgraduate courses for home and EU domiciled students.

New (Wales only) includes fees for all full-time and sandwich undergraduate or postgraduate courses with a start date on, or after, the beginning of the current reporting period.

Continuing (Wales only) includes fees for all full-time and sandwich undergraduate or postgraduate courses with a start date prior to the current reporting period.

Non-EU domicile students includes fees for all HE courses for students whose normal residence prior to commencing their programme of study was outside the EU.

Non-credit-bearing course fees includes all fee income received in respect of non-credit-bearing liberal adult education, continuing education or extra-mural courses.

FE course fees includes fee income received for the provision of FE/non-advanced courses.

Research training support grants includes all income from charities (awarded by open competitive process) for general research studentships, and all grants made by Research Councils and other bodies in support of the training of research students, including the tuition fee element.

The Source of fee for tuition fees and education contracts is grouped into one of three categories:

SLC/LEAs/SAAS/DEL(NI) includes the Student Loans Company (SLC), Local Education Authorities (LEA), Student Awards Agency for Scotland (SAAS) and the Department for Employment and Learning Northern Ireland (DEL(NI)).

DH/RONE/SHHD includes the Department of Health (DH) (including the National Health Service (NHS) and NHS Trusts), Regional Offices of the NHS Executive (RONE) and the Scottish Home and Health Department (SHHD).

Other includes sources not covered above, including individual students.

The definitions of domicile, mode, and level of study should be those consistent with the HESA Student record and are summarised below:

Domicile

Home domicile students are those whose normal residence is in the UK and for the purpose of HESA analysis includes Guernsey, Jersey and the Isle of Man. Officially, the Crown Dependencies of Guernsey, Jersey and the Isle of Man are not part of the UK or the EU. Guernsey and Jersey in this context refer to the Bailiwicks of Guernsey and Jersey, which includes their smaller islands.

EU domicile students are those whose normal residence prior to commencing their programme of study was in countries which were European Union (EU) members (excluding the UK) at 1 December of the reporting period. This includes Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Gibraltar, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden. Croatia, having joined the EU on 1 July 2013, is not included in 'EU domicile' for 2012/13 publications but will be treated as such from 2013/14 onwards.

Mode

Full-time students are those normally required to attend an institution for periods amounting to at least 24 weeks within the year of study, on thick or thin sandwich courses, and those on a study-related year out of their institution. During that time students are normally expected to undertake periods of study, tuition or work experience which amount to an average of and at least 21 hours per week.

Part-time students are those recorded as studying part-time, or studying full-time on courses lasting less than 24 weeks, on block release, or studying during the evenings only.

Level of study

HESA classifies courses according to a framework which aligns with the framework for HE qualifications in England, Wales and Northern Ireland (FHEQ), the Scottish Credit and Qualifications Framework (SCQF) (of which the framework for qualifications of HE institutions in Scotland is a constituent part) and the International Standard Classification of Education (ISCED) and Bologna frameworks. Details are available from the HESA website 2012/13 Student.COURSEAIM field notes. It includes level M for taught masters degrees, and level H for honours degrees.

Undergraduate courses are programmes of study at level H, I, J and C including, but not limited to, first degrees (including eligibility to register to practice with a health or social care or veterinary statutory regulatory body), first degrees with Qualified Teacher Status (QTS)/registration with a General Teaching Council (GTC), postgraduate bachelors degrees at level H, enhanced first degrees, first degrees obtained concurrently with a diploma and intercalated first degrees, Professional Graduate Certificate in Education (PGCE at level H), foundation degrees, diplomas in higher education (including those leading towards obtaining eligibility to register to practice with a health or social care or veterinary statutory regulatory body), Higher National Diploma (HND), Higher National Certificate (HNC), Diploma of Higher Education (DipHE), Certificate of Higher Education (CertHE), foundation courses at higher education level, National Qualifications Framework (NQF) levels 4 and 5, post-degree diplomas and certificates at undergraduate level, professional qualifications at undergraduate level and other undergraduate diplomas and certificates including pre- and post-registration health and social care and veterinary courses. Entrants to these programmes of study do not usually require a higher education qualification.

Postgraduate courses are those leading to higher degrees, diplomas and certificates (including Postgraduate Certificate in Education (PGCE at level M) and professional qualifications) which usually require a first degree as an entry qualification (i.e. already qualified at level H).

Postgraduate taught includes doctorate and masters degrees, postgraduate bachelors degrees at level M and postgraduate diplomas or certificates not studied primarily through research, including PGCE at level M and professional qualifications.

Postgraduate research includes doctorate and masters degrees and postgraduate diplomas or certificates (not PGCE at level M) studied primarily through research.

3. Research grants and contracts

This includes all income in respect of externally sponsored research carried out by the institution or its subsidiary undertaking for which directly related expenditure has been incurred.

BIS Research Councils, the Royal Society, British Academy and The Royal Society of Edinburgh
This includes all research grants and contracts income from Research Councils sponsored by the Department for Business, Innovation and Skills (BIS), The Royal Society, British Academy and The Royal Society of Edinburgh. This may be further broken down into the following categories:

Biotechnology and Biological Sciences Research Council (BBSRC)
Medical Research Council (MRC)
Natural Environment Research Council (NERC)
Engineering and Physical Sciences Research Council (EPSRC)
Economic and Social Research Council (ESRC)
Arts and Humanities Research Council (AHRC)
Science and Technology Facilities Council (STFC)
Other (i.e. sponsored research grants and contracts income not included above).

UK-based charities includes all research grants and contracts income from all charitable foundations, charitable trusts, etc. based in the UK which are registered with the Charities Commission or those recognised as charities by the Office of the Scottish Charity Regulator (OSCR) in Scotland. Income from UK-based charities is split between those with an open competitive process for the allocation of funds and other charities.

UK-based charities (open competitive process) includes research grants or contracts income from UK-based charities that was available to more than one institution through direct competition, awarded to the institution that demonstrated the highest quality research proposal according to external peer review. It also includes grants where it can be shown that the charity took external expert advice on its choice of institution, and either the charity had made it known that it was open to grant applications from other institutions, even though an open invitation to bid for the particular grant was not issued; or the charity restricted the funding opportunity on a reasoned basis in that particular requirements of the project could only be met by a limited number of institutions (i.e. where a project required highly specialist expertise or facilities, or a specific regional focus). Income awarded by the Education Endowment Foundation is included under this heading where funding originated from grants made by non-government sources.

UK-based charities (other) includes research grants or contracts income from UK-based charities that does not meet the definition of open competition.

UK central government bodies, local authorities, health and hospital authorities includes all research grants and contract income from UK central government bodies, UK local authorities and UK health and hospital authorities, except Research Councils and UK public corporations. This includes government departments and other organisations (including registered charities) financed from central government funds. Research grants and contracts from non-departmental public bodies (NDPBs) such as the British Council are also included in this source of income. Income awarded by the Education Endowment Foundation is included under this heading where funding originated from grants made by UK government sources.

UK industry, commerce and public corporations includes all research grants and contracts income from industrial and commercial companies and public corporations (defined as publicly owned trading bodies, usually statutory organisations with a substantial degree of financial independence) operating in the UK.

EU government bodies includes all research grants and contracts income from all government bodies operating in the EU, which includes the European Commission, but excludes bodies in the UK.

EU-based charities (open competitive process) includes research grants or contracts income from EU bodies with exclusively charitable purposes (consistent with the definition set out in the Charities Act 2006 and which exists for the public benefit in a manner which is consistent with the Public Benefit Guidance published by the Charity Commission for England and Wales), that was available to more than one institution through direct competition, awarded to the institution that demonstrated the highest quality research proposal according to external peer review. It also includes grants where it can be shown that the charity took external expert advice on its choice of institution, and either the charity had made it known that it was open to grant applications from other institutions, even though an open invitation to bid for the particular grant was not issued; or the charity restricted the funding opportunity on a reasoned basis in that particular requirements of the project could only be met by a limited number of institutions (i.e. where a project required highly specialist expertise or facilities, or a specific regional focus).

EU industry, commerce and public corporations includes all research grants and contracts income from industrial and commercial companies and public corporations (defined as publicly owned trading bodies, usually statutory corporations, with a substantial degree of financial independence) operating in the EU outside of the UK.

EU other includes all research grants and contracts income from EU-based non-competitive charities and any other EU income not otherwise specified.

Non-EU-based charities (open competitive process) includes research grants or contracts income from non-EU bodies with exclusively charitable purposes (consistent with the definition set out in the Charities Act 2006 and which exists for the public benefit in a manner which is consistent with the Public Benefit Guidance published by the Charity Commission for England and Wales), that was available to more than one institution through direct competition, awarded to the institution that demonstrated the highest quality research proposal according to external peer review. It also includes grants where it can be shown that the charity took external expert advice on its choice of institution, and either the charity had made it known that it was open to grant applications from other institutions, even though an open invitation to bid for the particular grant was not issued; or the charity restricted the funding opportunity on a reasoned basis in that particular requirements of the project could only be met by a limited number of institutions (i.e. where a project required highly specialist expertise or facilities, or a specific regional focus).

Non-EU industry, commerce and public corporations includes all research grants and contracts income from industrial and commercial companies and public corporations (defined as publicly owned trading bodies, usually statutory corporations, with a substantial degree of financial independence) operating outside the EU.

Non-EU other includes all research grants and contracts income from all non-EU-based non-competitive charities and any other non-EU income not otherwise specified.

Other sources includes all research grants and contracts income not covered above. This includes income from other higher education institutions (HEIs) where the HEI is the original contractor.

Research grants and contracts income activities

Research grants and contracts income may be further analysed by the activities across which research grants and contracts income is received. This includes Academic departments, Academic services and Administration and central services.

Academic departments includes all income in respect of externally sponsored research carried out by, or on behalf of, academic departments (including departments of continuing education). There are 45 departmental cost centres to which this income can be attributed. These are listed under Expenditure activities Academic departments.

Academic services includes research grants and contracts income received by centralised academic services such as the library and learning resource centres, central computers and computer networks (including maintenance and operating costs), centrally run museums, galleries and observatories, and any other general academic services not covered elsewhere.

Administration and central services includes research grants and contracts income received for Central administration and services, General education expenditure, and Staff and student facilities as defined under Expenditure activities Administration and central services.

The following two headings are included after Total research grants and contracts income.

Less any income passed on to other institutions or organisations as part of a collaborative project or subcontracted work identifies any income passed onto subcontracting institutions by a contractor institution.

Net research grants and contracts includes the Total research grants and contracts income figure less any income passed onto subcontracting institutions by a contractor institution.

4. Other income

Other services rendered includes all income in respect of services rendered to outside bodies, including the supply of goods and consultancies.

UK central government bodies, local authorities, health and hospital authorities and EU government bodies includes all non-research income from UK central government bodies, non-departmental public bodies, UK local authorities and UK health and hospital authorities (except any included under tuition fees and education contracts), plus all non-research income from all government bodies operating in the EU, including the European Commission but excluding the UK. This includes European Social Fund (ESF) grants. Income awarded by the Education Endowment Foundation is included under this heading where funding originated from grants made by UK government sources.

Other includes all non-research income for services rendered to industrial and commercial companies and public corporations. It includes all validation fees for courses such as those run by other institutions.

Residences and catering operations (including conferences) includes the gross income from residences, catering and conference operations.

Grants from local authorities includes income from local authorities providing capital or revenue for the purpose to which the grant will be applied.

Income from health and hospital authorities (excluding teaching contracts for student provision) includes income received from UK health or hospital authorities for the funding of any employees of the institution, including posts in academic teaching, except for those relating to the provision of a service, and excluding income provided for research.

Release of deferred capital grants includes an institution’s capital grant from a source other than a Funding Council, to finance, or partly finance, the construction or acquisition of a fixed asset.

Income from intellectual property rights includes all income received from intellectual property rights such as licences and patents.

Other operating income includes all other operating income not covered above such as Trans-European Mobility Scheme for University Studies (TEMPUS) and European Community Action Scheme for the Mobility of University Students (ERASMUS) grants.

Where the heading Other income appears, this is Other income - other services rendered plus Other income - other as defined above.

5. Endowment and investment income

This includes income from specific endowment asset investments, general endowment asset investments, other investment income and other interest receivable. Any net credit from pension scheme assets and from interest on pension scheme liabilities are included in this category.

Where income is analysed by source, the following two headings are included after Total income:

Net total income excluding income passed onto other institutions or organisations for collaborative projects or subcontracted work includes the Total income figure less any income passed on to other institutions or organisations as part of a collaborative project or subcontracted work.

Categories of expenditure

Expenditure is analysed by four main categories:

Staff costs
Other operating expenses
Depreciation
Interest and other finance costs

1. Staff costs

This covers the costs of all staff for whom the institution is liable to pay Class 1 National Insurance contributions and/or who have a contract of employment with the institution, and includes any redundancy or restructuring payments (that are not treated as exceptional items) made to these staff.

Academic staff costs includes costs in respect of academic professionals as defined in the HESA Staff record, whose primary function is planning, directing and undertaking academic teaching and/or research, paid from within the budgets of academic departments and allocated to the appropriate cost centre. All academic staff are classified to this group regardless of their discipline, and this group may include medical practitioners, dentists, veterinarians and other health care professionals who undertake lecturing or research activities within the HEI.

Other staff costs includes costs in respect of all other staff paid from within the budgets of academic departments and allocated to the appropriate cost centre.

Where the heading staff costs appears, this is academic staff costs plus other staff costs as defined above.

2. Other operating expenses

Other operating expenses includes costs in respect of payments to non-contracted staff or individuals, all other non-staff costs incurred, except for depreciation and interest payable. Equipment that has not been capitalised, expenditure on maintenance contracts and telephone costs (calls, rental and non-capitalised equipment) if not charged to departments are also included in this category.

3. Depreciation

This includes depreciation costs on capitalised equipment according to where the assets being depreciated are located (i.e. academic departments, academic services, administration and central services, premises, research grants and contracts or other expenditure).

4. Interest and other finance costs

This includes costs in respect of interest payable on premises, residences and catering operations (including conferences) and other expenditure.

Expenditure activities

Categories of expenditure are further analysed by costs incurred from the activities associated with Academic departments, Academic services or Administration and central services, Premises, Residences and catering operations, Research grants and contracts and Other expenditure.

Academic departments

This includes all expenditure incurred by, or on behalf of, academic departments (including departments of continuing education), and expenditure incurred in connection with special and short courses which is not reimbursable by research councils or other bodies in respect of work carried out on their behalf. There are 45 departmental cost centres to which this expenditure can be attributed:

Medicine, dentistry & health
101 Clinical medicine
102 Clinical dentistry
103 Nursing & allied health professions
104 Psychology & behavioural sciences
105 Health & community studies
106 Anatomy & physiology
107 Pharmacy & pharmacology.

Agriculture, forestry & veterinary science
109 Veterinary science
110 Agriculture, forestry & food science.

Biological, mathematical & physical sciences
111 Earth, marine & environmental sciences
112 Biosciences
113 Chemistry
114 Physics
122 Mathematics.

Engineering & technology
115 General engineering
116 Chemical engineering
117 Mineral, metallurgy & materials engineering
118 Civil engineering
119 Electrical, electronic & computer engineering
120 Mechanical, aero & production engineering
121 IT, systems sciences & computer software engineering.

Architecture & planning
123 Architecture, built environment & planning.

Administrative & business studies
133 Business & management studies
134 Catering & hospitality management.

Social studies
124 Geography & environmental studies
127 Anthropology & development studies
128 Politics & international studies
129 Economics & econometrics
130 Law
131 Social work & social policy
132 Sociology
145 Media studies.

Humanities & language based studies & archaeology
125 Area studies
126 Archaeology
137 Modern languages
138 English language & literature
139 History
140 Classics
141 Philosophy
142 Theology & religious studies.

Design, creative & performing arts
143 Art & design
144 Music, dance, drama & performing arts.

Education
135 Education
136 Continuing education
108 Sports science & leisure studies.

Academic services

This includes expenditure incurred by centralised academic services such as the library and learning resource centres, central computers and computer networks (including maintenance and operating costs), expenditure on centrally run museums, galleries and observatories, and any other general academic services not covered elsewhere.

Administration and central services

This includes expenditure incurred by Central administration and services, General education expenditure, and Staff and student facilities.

(Note: the definitions listed below define the activities for expenditure, against which research grants and contracts income may also be attributed).

Central administration and services includes expenditure in respect of central administrative staff and such payments to Heads of Institutions, Professors, Deans, Tutors, Faculty Officers and the like as are made in respect of central (as distinct from departmental) administrative work. This category also includes expenditure associated with the running costs of an administrative computer system and the following other costs if not charged to their relevant academic cost centre: public relations, advertising, recruitment, removal expenses of all staff, publications (excluding educational publications), rating or council tax advisors, security of wages, bank charges (excluding interest), central postage, superannuation management, expenses of head of institution, legal and audit fees, general insurance costs not included elsewhere and telephone costs where centrally charged.

General education expenditure includes expenditure incurred on examinations, fellowships, scholarships, prizes and other expenditure of a general educational nature. It includes the direct costs of examinations for example of external examiners, salaries, printing, etc. Also included are fee remission and provisions for bad debts in respect of unpaid fees and the following items that cannot be appropriately charged elsewhere: educational publications, public lectures, concerts and exhibitions, subscriptions and contributions to learned societies and similar bodies, contributions to representative bodies and agencies, works of art, contributions to the institution's press, research projects not returned under other heads, representation at conferences, explorations and expeditions, administration of non-departmental arts centres, widening participation activity and student recruitment costs from home and overseas.

Staff and student facilities includes expenditure incurred on the provision of facilities and amenities for the use of students and/or staff, e.g. Careers Advisory Service, all grants to student societies, emoluments to wardens of halls of residence, accommodation office, athletic and sporting facilities (excluding maintenance), transport, OTC (including Air and Naval squadrons), chaplaincy, student counselling, crèches and the institution's health service.

Premises

This includes all expenditure incurred (whether centrally or departmentally) on the management of premises (including academic buildings, central academic services, art centres, institution’s health service premises, pavilions, sports buildings, etc.) and on roads and grounds, except residences and catering.

Repairs and maintenance expenditure includes the maintenance of premises including the pay of staff involved (including estates administrative staff) and maintenance provision charges.

Other expenditure includes rates (the uniform business rate charged by local authorities), payments made for the rental of premises, recurrent costs of energy, water and sewerage, depreciation of all buildings except residential, catering and conference buildings, costs of insuring all premises and their contents, cost of cleaning (i.e. salaries, wages and materials, and payments in respect of contract cleaning) and the cost of portering and security services.

Residences and catering operations (including conferences)

This includes the gross expenditure incurred in providing the residence, catering and any conference operations, including the cost of maintenance of residential and catering premises, salaries and any other identifiable costs relating to these operations. The depreciation costs and financing costs of these operations are included in the appropriate categories of expenditure.

Research grants and contracts

This includes the total of the direct costs attributed to research grants and contracts as detailed for Research grants and contracts income.

Other expenditure

Pension cost adjustment includes any adjustment made to staff pension costs in the income and expenditure account (i.e. the difference between actual contributions made and current service cost figure).

Other includes the total direct costs attributed to other services rendered and all other expenditure not covered above.

Capital expenditure

This covers all expenditure which increases the value of an institution's (or a subsidiary undertaking's) fixed assets, including the purchase of land, buildings, and those items of equipment which are included in the institution's register of fixed assets and shown in the balance sheet.

Capital expenditure incurred is split into Residences and catering operations (including conference operations) and Other operations (non-catering and non-conference operations), each sub-divided into expenditure incurred on Buildings (land and building projects) and the purchase of Equipment.

Sources of capital expenditure funding are categorised as:

Funding body grants includes capital grants allocated by the funding bodies, used to provide assets which have been capitalised.

Retained proceeds of sales includes the contribution from proceeds of sales of exchequer funded properties after surrendering the appropriate amount to the Treasury.

Internal funds includes the amount of internal funds utilised to finance expenditure.

Loans includes all sums borrowed from external sources to fund expenditure.

Other external sources include amounts provided as bequests, donations or all other external sources.

Consolidated financial statement tables

In addition to the HEI income sources and expenditure categories above, the FSR contains figures for the full HEIs consolidated income and expenditure account, consolidated statement of recognised gains and losses, consolidated balance sheet plus consolidated cash flow statement. The re-stated figures for the previous financial year are also included. These figures should be identical to the institution's audited financial statements, and the definition of their data requirement can be found within the Guidance for FSR tables section of the FSR with HE-BCI Survey Collection coding manual, available at www.hesa.ac.uk/C12031.

Consolidated financial statements include the affairs of the group and the institution, whether channelled through the institution as an entity or through one or more associates, joint venture entities or subsidiary undertakings.

Key Financial Indicator definitions 2012/13

Coverage

The Key Financial Indicators (KFIs) are compiled using information provided to HESA as part of the HESA Finance Statistics Return (FSR).

The annual HESA Finance Statistics Return (FSR) is the main source of historical financial information on the total activities of all UK higher education institutions (HEIs). The FSR provides data in respect of the consolidated income and expenditure account, statement of recognised gains and losses, balance sheet and cash flow statement. The figures recorded for the consolidated income and expenditure account, balance sheet headings, statement of recognised gains and losses and cash flow statement should be the same as those recorded in the HEIs audited/published financial statements. The financial statements should be prepared in accordance with the Statement of recommended practice: accounting for further and higher education (SORP), published by Universities UK (SORP_2007.pdf), and comply with the financial reporting requirements contained in any UK legislation relevant to their constitution, such as the Companies Act and the Charities Act. The FSR uses the principles in the SORP to analyse the financial statements in greater detail than is required for published financial statements.

2012/13 financial data relates to the institutions' financial year 1 August 2012 to 31 July 2013.

2011/12 financial data relates to the institutions' financial year 1 August 2011 to 31 July 2012.

2010/11 financial data relates to the institutions' financial year 1 August 2010 to 31 July 2011.

2009/10 financial data relates to the institutions' financial year 1 August 2009 to 31 July 2010.

The KFIs shown are a set of ratios extracted from the FSR. They are not performance indicators and take no account of institutional characteristics such as the range of subjects taught or the types of provision.

1. Total income in £000s
Total income (group and share of joint venture(s)).

2. Percentage ratio of total funding body grants to total income

Numerator
Income: Funding body grants

Denominator
Total income (group and share of joint venture(s)).

3. Percentage ratio of recurrent teaching grants from funding bodies for HE provision to total income

Numerator
Funding body grants: Grants for HE provision (Scottish Funding Council (SFC) grants for all provision): Recurrent (teaching).

Denominator
Total income (group and share of joint venture(s)).

4. Percentage ratio of recurrent research grants from funding bodies for HE provision to total income

Numerator
Funding body grants: Grants for HE provision (SFC grants for all provision): Recurrent (research)

Denominator
Total income (group and share of joint venture(s)).

5. Percentage ratio of recurrent (other) grants from funding bodies for HE provision to total income

Numerator
Funding body grants: Grants for HE provision (SFC grants for all provision): Recurrent - other (including special funding)

Denominator
Total income (group and share of joint venture(s)).

6. Percentage ratio of total funding body grants for HE provision to total income

Numerator
Funding body grants for HE provision are taken as
Funding body grants: Grants for HE provision (SFC grants for all provision): Recurrent (teaching)
plus
Funding body grants: Grants for HE provision (SFC grants for all provision): Recurrent (research)
plus
Funding body grants: Grants for HE provision (SFC grants for all provision): Recurrent - other (including special funding)
plus
Funding body grants: Grants for HE provision (SFC grants for all provision): Release of deferred capital grants - buildings
plus
Funding body grants: Grants for HE provision (SFC grants for all provision): Release of deferred capital grants - equipment

Denominator
Total income (group and share of joint venture(s)).

8. Percentage ratio of tuition fees and education contracts to total income

Numerator
Income: Tuition fees and education contracts

Denominator
Total income (group and share of joint venture(s)).

9. Percentage ratio of full-time home/European Union (EU) HE student fees to total income

Definition for England

Numerator
Full-time home/European Union (EU) HE student fees are taken as
HE course fees: Institutions in England only: Home and EU domicile students: Full-time undergraduate total
plus
HE course fees: Institutions in England only: Home and EU domicile students: Full-time postgraduate taught total
plus
HE course fees: Institutions in England only: Home and EU domicile students: Full-time postgraduate research total

Denominator
Total income (group and share of joint venture(s)).

Definition for Scotland

Numerator
Full-time home/European Union (EU) HE student fees are taken as
HE course fees: Institutions in Scotland only: Home and EU domicile students: Full-time undergraduate standard rate total
plus
HE course fees: Institutions in Scotland only: Home and EU domicile students: Full-time undergraduate rest of UK de-regulated fees total
plus
HE course fees: Institutions in Scotland only: Home and EU domicile students: Full-time undergraduate non-standard rate total
plus
HE course fees: Institutions in Scotland only: Home and EU domicile students: Full-time postgraduate taught standard rate total
plus
HE course fees: Institutions in Scotland only: Home and EU domicile students: Full-time postgraduate taught rest of UK de-regulated fees total
plus
HE course fees: Institutions in Scotland only: Home and EU domicile students: Full-time postgraduate research standard rate total
plus
HE course fees: Institutions in Scotland only: Home and EU domicile students: Full-time postgraduate taught non-standard rate total
plus
HE course fees: Institutions in Scotland only: Home and EU domicile students: Full-time postgraduate research non-standard rate total

Denominator
Total income (group and share of joint venture(s)).

Definition for Wales

Numerator
Full-time home/European Union (EU) HE student fees are taken as
HE course fees: Institutions in Wales only: Wales and EU domicile students: Full-time undergraduate new total
plus
HE course fees: Institutions in Wales only: Wales and EU domicile students: Full-time undergraduate continuing total
plus
HE course fees: Institutions in Wales only: Wales and EU domicile students: Full-time postgraduate taught total
plus
HE course fees: Institutions in Wales only: Wales and EU domicile students: Full-time postgraduate research total

Denominator
Total income (group and share of joint venture(s)).

Definition for Northern Ireland

Numerator
Full-time home/European Union (EU) HE student fees are taken as
HE course fees: Institutions in Northern Ireland only: Home and EU domicile students: Full-time undergraduate standard fees total
plus
HE course fees: Institutions in Northern Ireland only: Home and EU domicile students: Full-time undergraduate rest of UK de-regulated fees total
plus
HE course fees: Institutions in Northern Ireland only: Home and EU domicile students: Full-time postgraduate taught total
plus
HE course fees: Institutions in Northern Ireland only: Home and EU domicile students: Full-time postgraduate research fees total

Denominator
Total income (group and share of joint venture(s)).

10. Percentage ratio of non-EU HE course fees to total income

Numerator
Non-EU HE course fees are taken as
HE course fees: All institutions: Non-EU domicile students

Denominator
Total income (group and share of joint venture(s)).

11. Percentage ratio of income from research grants and contracts to total income

Numerator
Income: Research grants and contracts

Denominator
Total income (group and share of joint venture(s)).

12. Percentage ratio of Department for Business, Innovation and Skills (BIS) Research Council grants and contracts to total income

Numerator
Research grants and contracts: Total BIS Research Councils, The Royal Society, British Academy and The Royal Society of Edinburgh

Denominator
Total income (group and share of joint venture(s)).

14. Percentage ratio of UK industry, commerce and public corporations research grants and contracts to total income

Numerator
Research grants and contracts: UK industry, commerce and public corporations

Denominator
Total income (group and share of joint venture(s)).

16. Percentage ratio of EU research grants and contracts to total income

Numerator
EU research grants and contracts are taken as
Research grants and contracts: EU government bodies
plus
Research grants and contracts: EU-based charities (open competitive process)
plus
Research grants and contracts: EU industry, commerce and public corporations
plus
Research grants and contracts: EU other

Denominator
Total income (group and share of joint venture(s)).

18. Percentage ratio of other income to total income

Numerator
Income: Other income

Denominator
Total income (group and share of joint venture(s)).

19. Percentage ratio of total endowment and investment income to total income

Numerator
Income: Endowment and investment income

Denominator
Total income (group and share of joint venture(s)).

20. Percentage ratio of contribution from research grants and contracts to research grants and contracts income

Numerator
Contribution from research grants and contracts is taken as
Income: Research grants and contracts
minus
Total research grants and contracts total expenditure

Denominator
Income: Research grants and contracts.

22a. Percentage ratio of historical surplus/(deficit) for the year after taxation to total income

Numerator
Historical cost surplus/(deficit) for the year after taxation

Denominator
Total income (group and share of joint venture(s)).

22b. Percentage ratio of historical surplus/(deficit) for the year after taxation to total income (excluding pension cost adjustment)

Numerator
Historical surplus/(deficit) for the year after taxation (excluding pension cost adjustment) is taken as
Historical cost surplus/(deficit) for the year after taxation
plus
Other expenditure: Pension cost adjustment total expenditure

Denominator
Total income (group and share of joint venture(s)).

23. Ratio of current assets to current liabilities

Numerator
Total current assets

Denominator
Total creditors (amounts falling due within one year).

24. Ratio of liquid assets to current liabilities

Numerator
Liquid assets are taken as
Current assets: Investments
plus
Current assets: Cash at bank and in hand

Denominator
Total creditors: (amounts falling due within one year).

26a. Days ratio of net liquidity to total expenditure (excluding depreciation)

Numerator
Net liquidity is taken as
Current assets: Investments
plus
Current assets: Cash at bank and in hand
minus
Creditors: amounts falling due within one year: Bank overdrafts

Denominator
Total expenditure (excluding depreciation) is taken as
Total expenditure
minus
Expenditure: Depreciation.

26b. Days ratio of net liquidity to total expenditure (excluding depreciation and pension cost adjustment)

Numerator
Net liquidity is taken as
Current assets: Investments
plus
Current assets: Cash at bank and in hand
minus
Creditors: amounts falling due within one year: Bank overdrafts

Denominator
Total expenditure (excluding depreciation and pension cost adjustment) is taken as
Total expenditure
minus
Expenditure: Depreciation
minus
Other expenditure: Pension cost adjustment total expenditure.

27a. Days ratio of total general funds to total expenditure

Numerator
Total general funds are taken as
Endowments: Expendable
plus
Reserves: Income and expenditure account
plus
Reserves: Pension reserve

Denominator
Total expenditure.

27b. Days ratio of total general funds to total expenditure (excluding pension reserve and pension cost adjustment)

Numerator
Total general funds (excluding pension reserve) is taken as
Endowments: Expendable
plus
Reserves: Income and expenditure account

Denominator
Total expenditure (excluding pension cost adjustment) is taken as
Total expenditure
minus
Other expenditure: Pension cost adjustment total expenditure.

28. Days of current income (excluding funding body grants for HE provision (SFC for all provision)) represented by debtors

Numerator
Current assets: Debtors

Denominator
Current income (excluding funding body grants for HE provision (SFC for all provision)) is taken as
Total income (group and share of joint venture(s))
minus
(
Funding body grants: Grants for HE provision (SFC grants for all provision): Recurrent (teaching)
plus
Funding body grants: Grants for HE provision (SFC grants for all provision): Recurrent (research)
plus
Funding body grants: Grants for HE provision (SFC grants for all provision): Recurrent - other (including special funding)
plus
Funding body grants: Grants for HE provision (SFC grants for all provision): Release of deferred capital grants - buildings
plus
Funding body grants: Grants for HE provision (SFC grants for all provision): Release of deferred capital grants - equipment
).

29. Percentage ratio of total long-term borrowings to total income

Numerator
Total long-term borrowings are taken as
Creditors: amounts falling due within one year: Current portion of long-term liabilities
plus
Creditors: amounts falling due after more than one year: External borrowing

Denominator
Total income (group and share of joint venture(s)).

30a. Percentage ratio of total staff costs to total income

Numerator
Expenditure: Staff costs

Denominator
Total income (group and share of joint venture(s)).

30b. Percentage ratio of total staff costs to total income (excluding pension cost adjustment)

Numerator
Total staff costs (excluding pension cost adjustment) is taken as
Expenditure: Staff costs
minus
Other expenditure: Pension cost adjustment staff costs total

Denominator
Total income (group and share of joint venture(s)).

31. Percentage ratio of total net cash inflow from operating activities to total income

Numerator
Net cash inflow/(outflow) from operating activities

Denominator
Total income (group and share of joint venture(s)).

32a. Gearing ratio

Numerator
Creditors: amounts falling due within one year: Current portion of long-term liabilities
plus
Creditors: amounts falling due after more than one year: External borrowing

Denominator
Endowments: Expendable
plus
Reserves: Income and expenditure account
plus
Reserves: Pension reserve.

32b. Gearing ratio (excluding pension reserve)

Numerator
Creditors: amounts falling due within one year: Current portion of long-term liabilities
plus
Creditors: amounts falling due after more than one year: External borrowing

Denominator
Endowments: Expendable
plus
Reserves: Income and expenditure account.

33a. Percentage ratio of premises repairs and maintenance to total expenditure

Numerator
Premises: Repairs and maintenance total expenditure

Denominator
Total expenditure.

33b. Percentage ratio of premises repairs and maintenance to total expenditure (excluding pension cost adjustment)

Numerator
Premises: Repairs and maintenance total expenditure

Denominator
Total expenditure (excluding pension cost adjustment) is taken as
Total expenditure
minus
Other expenditure: Pension cost adjustment total expenditure.

34a. Days ratio of total net cash inflow to total expenditure (excluding depreciation)

Numerator
Total net cash inflow is taken as
Net cash inflow/(outflow) from operating activities
plus
Returns on investments and servicing of finance: Net cash inflow/(outflow) from returns on investments and servicing of finance

Denominator
Total expenditure (excluding depreciation) is taken as
Total Expenditure
minus
Expenditure: Depreciation.

34b. Days ratio of total net cash inflow to total expenditure (excluding depreciation and pension cost adjustment)

36. Percentage ratio of interest and other finance costs to total income

Numerator
Expenditure: Interest and other finance costs

Denominator
Total income (group and share of joint venture(s)).

37. Viability

Numerator
Current assets: Investments
plus
Current assets: Cash at bank and in hand

Denominator
Creditors: amounts falling due after more than one year: External borrowing
plus
Creditors: amounts falling due within one year: Current portion of long-term liabilities
plus
Creditors: amounts falling due within one year: Bank overdrafts.

38a. Percentage return on net assets

Numerator
Surplus/(deficit) for the year retained within general reserves
minus
Transfer from/(to) accumulated income in endowment funds

Denominator
Net assets excluding pension asset/(liability).

38b. Percentage return on net assets (excluding pension cost adjustment)

Numerator
Surplus/(deficit) for the year retained within general reserves
minus
Transfer from/(to) accumulated income in endowment funds
plus
Other expenditure: Pension cost adjustment total expenditure

Denominator
Net assets excluding pension asset/(liability).