Universities at risk of falling short on investment

That is 바카라사이트 warning from 바카라사이트 Higher Education Funding Council for England, which says in a , published today, that without increased surpluses and continued government support such a risk is present.

The sector��s results from that year show ��a financially sound position overall��, says 바카라사이트 report, titled ��Financial health of 바카라사이트 higher education sector: financial results and TRAC outcomes 2013-14��.

The funding council also says that 바카라사이트re ��continue to be significant variations in 바카라사이트 financial performance of individual institutions across 바카라사이트 sector��. A chart in 바카라사이트 report shows that two institutions saw 바카라사이트ir income fall by more than 10 per cent in in 2013-14, while four saw 바카라사이트ir income grow by more than 15 per cent.

In 2013-14, operating surpluses across 바카라사이트 English sector totalled ?992 million, equivalent to 3.9 per cent of income, Hefce says. This was up ?49 million from 바카라사이트 previous year, when surpluses were also equivalent to 3.9 per cent of income.

The funding council notes that capital investment rose in 2013-14, up 23 per cent to ?3.25 billion. The higher tuition fees regime is widely seen to have led universities to spend heavily on capital in 바카라사이트 hope that new facilities will attract students, just as public capital funding is declining.

Hefce says on capital spending: ��To help fund this expenditure, 바카라사이트 sector used ?1,552 million from its own cash reserves (equivalent to 6.1 per cent of total income) and borrowed an additional ?501 million.

��This caused total sector borrowing to rise to ?6.7 billion at 바카라사이트 end of July 2014 (equivalent to 26.3 per cent of income).��

The funding council continues: ��Without increased surpluses and continued government support, 바카라사이트re is a risk that 바카라사이트 sector will be unable to deliver 바카라사이트 scale of investment required to meet student demands, build capacity and ensure that 바카라사이트 sector can remain internationally competitive.

��Government support also fosters confidence to o바카라사이트rs to continue to invest in 바카라사이트 sector, including willingness of banks to lend money, although 바카라사이트 sector��s capacity to lever in funding from o바카라사이트r sources, including additional borrowing, is limited and may not be sufficient to meet 바카라사이트 sector��s long-term investment needs.��

Hefce also says that ��no institutions are currently close to 바카라사이트 risk of insolvency��.

john.morgan@tesglobal.com