Ƶ income
2022/23

Ƶ income 2022/23
Income£,000
Funding Body Grants 7,365
Tuition Fees & Education Grants 71,981
Research Grants & Contracts 1,190
Other Income (1) 12,617
Endowment & Investment Income 2,940
   96,093

 Ƶ income chart 2022-23

 

 

 

Ƶ expenditure 2022/23

Ƶ expenditure 2022/23
Expenditure £'000 
Staff Costs 58,576
Other Operating Expenses (2) 32,306
Depreciation & Amortisation 4,443
Interest & Other Finance Costs 3,976
   99,301

 Ƶ expenditure chart 2022-23

1. Other income

The main areas within the 'Other Income' section of the Ƶ Income chart above are as follows:

Other income
AreaValue
Student Accommodation £5,948,000
Conference, Catering & Hire of Rooms £2,207,000
Project Income - ad-hoc initiatives that Schools/Departments undertake for external organisations £612,000
Car Parking & Permits £477,000
NHS Placement income £686,000

2. Included in other operating expenses

Included in other operating expenses
AreaValue
Grant to Students' Union £600,000
Catering Expenditure - costs of providing onsite catering facilities  £2,397,000
Electricity, Gas & Water for all Ƶ properties including Student Accommodation £3,153,000
Repairs & General Maintenance to all Ƶ property and equipment, including Student Accommodation £2,556,000
Partner Colleges - cost of courses affiliated to the Ƶ, for example Halesowen College £4,079,000
Student Bursaries £734,000
Library Services (including the Hive) £645,000
IT Services £3,250,000

Analysis of expenditure by activity

Analysis of expenditure by activity
 AreaStaffOther Expenses Totals
Academic Department £35,527,000 £8,561,000  
Academic Services - staff within Learning Resources: Library Services, IT and The Hive £5,262,000 £8,956,000  
Administrative & Central Services - Staff from all the support services, including Registry, Timetabling, Student Support, Comms & External Affairs, HR, Finance etc. £12,075,000 £5,160,000  
Premises - Facilities Staff, other exp. includes utilities, maintenance £2,731,000 £6,137,000  
Research - Research staff attached to different Schools £1,540,000 £533,000  
Residences, catering and conferences - accommodation staff £1,441,000 £2,959,000  
  £58,576,000 £32,306,000 £90,882,000
Depreciation & Amortisation - method of allocating the cost of a tangible asset over its useful life     £4,443,000
Interest - cost of loans to the Ƶ for Capital Investment     £3,976,000
      £99,301,000

The Ƶ’s Finances – How Do My Fees Fit In?

All universities are now encouraged to explain as transparently as possible to students both the sources of their income and how they spend their money. This is especially important now that a very large proportion of income a Ƶ receives comes from tuition fees. The information above explains where the Ƶ of Worcester receives money from and analyses the Ƶ’s expenditure. The figures relate to the 2022/23 financial year (1st August 2022 – 31st July 2023).  Firstly though, we will address some of the frequently asked questions that are posed about the Ƶ’s income and expenditure.

What proportion of the Ƶ’s income derives from tuition fees?

The Ƶ’s total income in 2022/23 was £96.1m. Of this, £72m (75%) came in the form of tuition fees & education contracts along with £7.4m (8%) from funding body grants.

Does the Ƶ make a profit?

The Ƶ is not a private or limited company and has no shareholders, only stakeholders, which includes our students. Universities are expected to make a surplus, sufficient to allow them to invest in improving facilities, new buildings etc.  2021/22 was the first year in many, where the level of surplus (before other gains and losses) reached a substantial deficit position. 2022/23 has seen this deficit position reduce slightly, however it is expected that a similar deficit will be produced in 2023/24, albeit with higher income to off-set the inevitable cost inflation. The fluctuations between years is due to elements of non-recurrent income, differences relating to the movement of pension liabilities, and more recently the on-going impacts of the pandemic, and the recent rise in inflation. 

Accounts 2022/23

Income: £96.1m
Expenditure: £99.3m 
Deficit: £(3.2)m

So, from where else does the Ƶ receive its income?

The Ƶ still receives around £7m in the form of funding body grants – to support expenditure on widening access and participation and additional funding for high cost subjects. Other important sources of income include research grants and contracts and a large sum which the accounts describe as “Other Income” – in 2022/23 this amounted to £12.6m.  Over 50% of this comes from student accommodation, but some of this is offset by operating expenses (see below); any surplus from the leasing of student accommodation is used to fund the on-going programme of improvement and maintenance of halls of residence.

So, what does the Ƶ spend its money on?

Investing in academic staff and various academic institutes is vitally important but it accounts for only part of the Ƶ’s investment. The Ƶ is very much a community, employing around 1,700 individual staff and approx 450 student employees and teaching more than 10,000 students. Like any community, the Ƶ needs support services – library, laboratories, specialist teaching facilities, computers and IT services, buildings, utilities, and of course a network of people to keep the Ƶ going.  Every effort is made to ensure that the Ƶ achieves Value for Money in how it uses its income from tuition fees and other sources.

Value for money

Every effort is made to ensure that the Ƶ achieves Value for Money in how it uses its income from tuition fees and other sources.

An efficient and financially well-managed institution

The Ƶ of Worcester is recognised by the Office for Students as an efficient and financially well managed institution. The Ƶ spent £99.3m on running the Ƶ with a breakdown below. Please note the Ƶ paid £4m in interest in 2022/23 on loans which have been taken out in the last 15 years to fund a large proportion of the costs of the City Campus, the Arena, the Riverside Campus, new Halls of Residence, new Science Laboratories, The Hive etc., all of which have contributed to the overall quality of the student experience. 

What does the Ƶ spend its money on?
Area £'m 
Staff costs  58.6
Payments to Partner Colleges 4.1
Student Bursaries 0.7 
Residences & General Maintenance 5.4
Books, Consumables & Laboratory expenditure 1.5
Heat, Light and Power 3.2
Depreciation 4.4
Interest  4.0
Other running costs 17.4

So, the Ƶ has been investing in improving the campus and therefore the student experience then?

Very much so. The Ƶ has invested over £40m in campus improvements and new site acquisitions over the last 5 years. The level of capital investment during the year is higher than that of the previous year, which is due to the creation of the new Three Counties Medical School located in the newly completed Elizabeth Garrett Anderson building along with works relating to the new International Inclusive Cricket and Education Centre. 

Capital spend by academic year
2022/232021/222020/212019/202018/19
£16.2m £12.0m £7.8m £3.7m £3.0m

That’s great, but what about spending on teaching and research?

The Ƶ spends approx. 60% of its income on staff costs, the overwhelming majority of which is on academic staff costs and costs relating to staff in services which relate directly to student support – Library, Information and Learning Services, Student Services, and Estates Staff who ensure that the Ƶ is a clean and safe environment in which to work and study – cleaning staff, maintenance staff, security staff, etc.  In addition, £0.7m was spent on student bursaries and scholarships along with a grant of £0.6m paid to the Students Union.

So, my money is being well spent?

We think so.  The Ƶ aims to give value for money to its students and to provide an experience which will allow students to flourish and to reach their full potential.  We will continue to invest in the Ƶ estate and in staff and facilities.

More details

Visit our Facts and Figures page to download Annual Accounts for recent years.

If you require any further information, please contact communications@worc.ac.uk