This document summarizes the 2014 financial health report of the higher education sector in the UK by Grant Thornton. It finds that while the sector remains in sound financial health, uncertainties from changes in government policies will pose future challenges. Key uncertainties include student recruitment with the lifting of caps, the impact of increased student debt on part-time and graduate programs, and maintaining income from overseas students. Institutions also face rising expenditures and need to maximize other income sources and control costs to ensure future sustainability in a competitive environment with policy changes.
Pocketbook: Competitiveness in South East Europe 2018OECDglobal
The OECD has been working with the South East Europe (SEE) region since 2000 to develop and successfully implement policies for private sector development and investment. This pocketbook brochure summarises the most recent work in the region in the second edition of the Competitiveness in South East Europe: A Policy Outlook 2018. The study assessed six SEE economies in 17 policy dimensions through a highly participatory evaluation process that included in-depth, evidence-based analyses to provide guidance to governments and the private sector, and a toolkit for donors and international development agencies. For more information on the full publication, please click on this link: http://dx.doi.org/10.1787/9789264298576-en
In January–June, the return on Elo’s investments was −4.1 per cent (7.2 per cent). The market value of the investments was EUR 24.0 billion. In the second quarter, return on investments was positive at 5.9 per cent (1.9 per cent). The solvency ratio was 119.4 per cent and solvency capital was 1.4 times the solvency limit.
Key facts supporting data and facts about higher educationUniComms
Appendix 2 to the University of Sydney's June 2017 submission to the Australian Senate's inquiry into higher education funding. Full submission at http://sydney.edu.au/about/government/submissions_2017.shtml#HESLA
In January–September, the return on Elo’s investments was –1.6 per cent (9.4 per cent). The market value of the investments was EUR 24.6 billion at the end of September. In the third quarter, return on investments was 2.6 per cent (2.0 per cent). The solvency ratio was 120.6 per cent and solvency capital was 1.4 times the solvency limit.
Pocketbook: Competitiveness in South East Europe 2018OECDglobal
The OECD has been working with the South East Europe (SEE) region since 2000 to develop and successfully implement policies for private sector development and investment. This pocketbook brochure summarises the most recent work in the region in the second edition of the Competitiveness in South East Europe: A Policy Outlook 2018. The study assessed six SEE economies in 17 policy dimensions through a highly participatory evaluation process that included in-depth, evidence-based analyses to provide guidance to governments and the private sector, and a toolkit for donors and international development agencies. For more information on the full publication, please click on this link: http://dx.doi.org/10.1787/9789264298576-en
In January–June, the return on Elo’s investments was −4.1 per cent (7.2 per cent). The market value of the investments was EUR 24.0 billion. In the second quarter, return on investments was positive at 5.9 per cent (1.9 per cent). The solvency ratio was 119.4 per cent and solvency capital was 1.4 times the solvency limit.
Key facts supporting data and facts about higher educationUniComms
Appendix 2 to the University of Sydney's June 2017 submission to the Australian Senate's inquiry into higher education funding. Full submission at http://sydney.edu.au/about/government/submissions_2017.shtml#HESLA
In January–September, the return on Elo’s investments was –1.6 per cent (9.4 per cent). The market value of the investments was EUR 24.6 billion at the end of September. In the third quarter, return on investments was 2.6 per cent (2.0 per cent). The solvency ratio was 120.6 per cent and solvency capital was 1.4 times the solvency limit.
Swedbank Economic Outlook - 2010, September 21Swedbank
Swedbank was founded in 1820, as Sweden’s first savings bank was established. Today, our heritage is visible in that we truly are a bank for each and every one and in that we still strive to contribute to a sustainable development of society and our environment. We are strongly committed to society as a whole and keen to help bring about a sustainable form of societal development. Our Swedish operations hold an ISO 14001 environmental certification, and environmental work is an integral part of our business activities.
Presentation delivered by the Association of Independent Ky Colleges & Universities to the Kentucky Council on Postsecondary Education at Transylvania University, June 10, 2011.
An analysis of the Swedish property markets and its weaknesses. I researched the structure of the Swedish mortgage market, real estate valuation and household indebtedness and the covered bond market and its connection to the Swedish banking system.
Part 1 gives the macroeconomic background and looks at the structure of the local mortgage market.
This presentation by Flore-Anne Messy was made at the High-level Global Symposium on Financial Education: Promoting Long-term Savings and Investments in Korea which explored policies and good practices for supporting long-term savings and investments through financial education and financial consumer protection. Find out more at http://www.oecd.org/daf/fin/financial-education/globalsymposiumonfinancialeducationforlong-termsavingsandinvestments.htm
Budget for Outcomes - Stefan Kiss, Slovak RepublicOECD Governance
This presentation was made by Stefan Kiss, Slovak Republic, at the 40th Annual Meeting of OECD Senior Budget Officials (SBO) held in Tallinn, Estonia, on 5-6 June 2019
This presentation by Chiara Monticone was made during the 1st roundtable at the High-level Conference on Global and European Trends in Financial Education held on 22-23 May 2014 in Istanbul, which explored the role(s) of the private and not-for-profit sectors in financial education, financial literacy and innovation for young people and financial education for migrant workers and their families. Find out more at http://www.oecd.org/daf/fin/financial-education/2014-conference-global-european-trends-financial-education.htm
Swedbank Economic Outlook 29 September 2009Swedbank
Swedbank was founded in 1820, as Sweden’s first savings bank was established. Today, our heritage is visible in that we truly are a bank for each and every one and in that we still strive to contribute to a sustainable development of society and our environment. We are strongly committed to society as a whole and keen to help bring about a sustainable form of societal development. Our Swedish operations hold an ISO 14001 environmental certification, and environmental work is an integral part of our business activities.
Statement on supplementary budget's impact on basic educationSABC News
Education rights activists lament the lack of additional funding to Basic Education sector, concerned COVID-19 mitigation measures come at expense of long-term
infrastructure needs.
Swedbank Economic Outlook - 2010, September 21Swedbank
Swedbank was founded in 1820, as Sweden’s first savings bank was established. Today, our heritage is visible in that we truly are a bank for each and every one and in that we still strive to contribute to a sustainable development of society and our environment. We are strongly committed to society as a whole and keen to help bring about a sustainable form of societal development. Our Swedish operations hold an ISO 14001 environmental certification, and environmental work is an integral part of our business activities.
Presentation delivered by the Association of Independent Ky Colleges & Universities to the Kentucky Council on Postsecondary Education at Transylvania University, June 10, 2011.
An analysis of the Swedish property markets and its weaknesses. I researched the structure of the Swedish mortgage market, real estate valuation and household indebtedness and the covered bond market and its connection to the Swedish banking system.
Part 1 gives the macroeconomic background and looks at the structure of the local mortgage market.
This presentation by Flore-Anne Messy was made at the High-level Global Symposium on Financial Education: Promoting Long-term Savings and Investments in Korea which explored policies and good practices for supporting long-term savings and investments through financial education and financial consumer protection. Find out more at http://www.oecd.org/daf/fin/financial-education/globalsymposiumonfinancialeducationforlong-termsavingsandinvestments.htm
Budget for Outcomes - Stefan Kiss, Slovak RepublicOECD Governance
This presentation was made by Stefan Kiss, Slovak Republic, at the 40th Annual Meeting of OECD Senior Budget Officials (SBO) held in Tallinn, Estonia, on 5-6 June 2019
This presentation by Chiara Monticone was made during the 1st roundtable at the High-level Conference on Global and European Trends in Financial Education held on 22-23 May 2014 in Istanbul, which explored the role(s) of the private and not-for-profit sectors in financial education, financial literacy and innovation for young people and financial education for migrant workers and their families. Find out more at http://www.oecd.org/daf/fin/financial-education/2014-conference-global-european-trends-financial-education.htm
Swedbank Economic Outlook 29 September 2009Swedbank
Swedbank was founded in 1820, as Sweden’s first savings bank was established. Today, our heritage is visible in that we truly are a bank for each and every one and in that we still strive to contribute to a sustainable development of society and our environment. We are strongly committed to society as a whole and keen to help bring about a sustainable form of societal development. Our Swedish operations hold an ISO 14001 environmental certification, and environmental work is an integral part of our business activities.
Statement on supplementary budget's impact on basic educationSABC News
Education rights activists lament the lack of additional funding to Basic Education sector, concerned COVID-19 mitigation measures come at expense of long-term
infrastructure needs.
Deloitte UK Restructuring Sector Outlook 2016 - Education Industry in Unchart...Thorsten Lederer 托尔斯滕
Uncertainty on funding and government policy implications is further exacerbated by reducing student numbers which together are putting both fnancial and operational pressure on institutions. At best, these changes will require a shift in management skills and adjustment in operations but could result in some institutions being no longer viable. Excellent read.
UK Post-Study Work Permit & Graduate Visa MAC Report Insights.docxZunaisha1
The Migration Advisory Committee (MAC) has finished its quick assessment of the UK graduate route and found no proof of significant misuse.
In an important development for the sector, the report advises the government to keep the two-year visa as it is. It states that the graduate route does not compromise the integrity and quality of the UK's higher education system. Instead, it aids universities in broadening the range of courses they offer and compensates for financial deficits from domestic students and research.
The much-awaited 70-page report, led by Brian Bell, a professor at King’s College London, was requested by Home Secretary James Cleverly to conduct this investigation.
Similar to Financial Health of the Higher Education Sector 2014 (20)
2. 2 Financial health of the higher education sector
Foreword
The benefits of the additional funding,
through the first year of the introduction
of income contingent loans, enabled
most institutions to achieve their forecast
surpluses, with the projected decrease in
both home and overseas students being
avoided by the majority of institutions.
However, we note that there is a wide
variation in financial performance between
different institutions, and that the level of
debt as well as the cash generation varies
significantly across the sector.
To understand these variations, we have
for the first time carried out additional
analysis of key sub groups within the
sector, considering research intensive, post
1992 (‘new’) universities and specialist
institutions, and we have also carried out an
analysis of the separate countries within the
UK. As in previous years we have included
our health assessment of the institutions
in the UK, based on the US Department
of Education’s financial assessment
methodology, and we consider some of the
issues facing the sector in the future.
Our review highlights that the sector
remains in sound financial health. However,
the uncertainties arising from the changes
in government policies surrounding higher
education will inevitably impose further
challenges to the sector in the years ahead.
A key variable is the recruitment
of students. With the removal of the
student number cap from 2015/16 we
will be entering into a more competitive
environment. Those institutions that have
a strong market position and reputation
should be able to recruit additional
numbers. However, our view is that there
may not be a significant increase in students
wishing to enter the system and there
may therefore be a challenge to maintain
numbers at all institutions. We are also
interested to see the impact that the new
student debt burden will have on the part
time and post graduate recruitment.
We are pleasantly surprised at the
continuing increase in income from
overseas students, up almost 10% on the
previous year, against the backdrop of the
government immigration policies which
had a negative impact on the recruitment of
students to some institutions. We note that
through increasing global opportunities and
the development of other world universities,
that the pressure on maintaining this level of
income from overseas students may become
a significant issue in the future, particularly
as this income for most institutions has
become a core part of their funding.
As in previous years we note the
relatively low levels of income generated by
commercial activities and other fund raising,
such as from alumni, and we continue to
recommend that all institutions should make
sure they are maximising these sources of
additional income.
Along with these uncertainties in
relation to income, institutions will continue
to face upward pressure on expenditure –
not least in relation to pension and salary
costs. Securing future sustainability will
therefore continue to be a critical issue for
many institutions, and we are aware of
the efforts many institutions are taking to
ensure they are managing their performance
KPIs so that they are able to react quickly
to sector changes and, where necessary
reduce costs or unprofitable activities on
a timely basis.
We hope that you find this report of
interest.
David Barnes
Head of Higher Education
This is Grant Thornton’s fourth annual review of the financial health of the higher education sector in the United
Kingdom. Through these reports we aim to provide an independent analysis of the financial performance of UK higher
education institutions.
3. Financial health of the higher education sector 3
Headline statistics
Income from
overseas student
fees has grown
by 9.5% since
2011/12
Staff costs as
a percentage of
income average is
52.8%
Staff numbers
increased by 3.1%
from 2011/12
Total income
of the sector
was £29.1 billion
(2011/12:
£27.8 billion)
Average costs per
staff member:
£48k
Cash resources
of £8.9 billion at
2012/13 compared
to £8.2 billion in
2011/12
22 HEIs have
a quick ratio less
than 1
(26 in 2011/12)
HE sector
spent £3.4 billion
on capital projects
in 2012/13
HE sector
average surplus
as a percentage of
income is 3.7% (4.0%
in 2011/12)
17 HEIs
recorded a deficit
in 2012/13 (14 in
2011/12)
INCOME BREAKDOWN (%)
2012/13 2011/12
Funding council grants Research grants and contracts UK/EU tuition fees
Overseas tuition fees Other income Endowments
3024
17
28
12
18
1624
11
19
For the full report please contact:
louise.hughes@uk.gt.com
Louise Hughes