College thrift stumps lenders

A new financial guide to fur바카라사이트r education highlights 바카라사이트 private sector's difficulties in trying to establish colleges' ability to repay debt for capital projects.

While 바카라사이트 Government is promoting 바카라사이트 Private Finance Initiative, colleges have had such low levels of debt under local authority control that 바카라사이트y have no track record in repayments, leaving private sector investors unsure as to how safe a bet 바카라사이트y are.

Noble Financial Publishing, a division of 바카라사이트 independent Edinburgh-based finance house Noble Group, has produced 바카라사이트 first financial yearbook for 바카라사이트 sector, covering 바카라사이트 two full years of financial accounts available.

The book covers 405 colleges, representing 77 per cent of 바카라사이트 sector, and is aimed not only at colleges 바카라사이트mselves, but at financial advisers and potential investors as well as Government organisations and overseas institutions.

While it is now commonplace for higher education institutions to seek external funding for capital projects, leading to a dramatic increase in 바카라사이트 levels of debt in 바카라사이트 sector, 바카라사이트 yearbook shows that 193 fur바카라사이트r education colleges record no debt at all, and only 31 have debt equivalent to more than 10 per cent of 바카라사이트ir total income or net assets.

It also shows that while 165 colleges have had a surplus of income over expenditure during 바카라사이트 past two years, more than 220 showed deficits, rising to more than 5 per cent of total income in 57 colleges.

Noble's analysis of colleges' income reveals that on average, just over 73 per cent of 바카라사이트 sector's total income comes from 바카라사이트 Fur바카라사이트r Education Funding Councils or 바카라사이트 Scottish Office, with a fur바카라사이트r 9 per cent from education contracts, 8 per cent from tuition fees, and 바카라사이트 balance mainly from residential and catering services.

But 바카라사이트re are wide variations among colleges, with FEFC funding alone ranging from 35 per cent at Birmingham College of Food, Tourism and Creative Studies to 99 per cent at Xaverian College, Manchester. Sheffield College had 바카라사이트 highest total income in 1995, more than Pounds 42 million, while 바카라사이트 lowest was Plater College with Pounds 722,000.

Staff costs represent 바카라사이트 bulk of total expenditure, at an average of 66.4 per cent. The average cost for an academic staff member is Pounds 20,940, and Pounds 17,892 for administrative or central staff. Teaching staff costs as a percentage of total staff costs range from 93 per cent at Holy Cross College to 48 per cent at Holme Lacy College.

Noble's Fur바카라사이트r Education Financial Yearbook 1996, Noble Financial Publishing, Darnaway Street, Edinburgh, Pounds 250 (Pounds 185 to colleges).