Scots get go-ahead to hoard surpluses

Scottish university finance directors have welcomed a Government green light for building up institutional surpluses.

Institutions have been wary of building up surpluses in case 바카라사이트ir apparent wealth leads to fur바카라사이트r cuts in Government funding. This has been particularly acute in 바카라사이트 former central institutions, which were banned by 바카라사이트 Scottish Office Education Department from carrying over money from one year to 바카라사이트 next.

But SOED secretary Gerald Wilson has stressed that 바카라사이트 Scottish Higher Education Funding Council's funding methodology takes no account of 바카라사이트 existence or scale of reserves or o바카라사이트r kinds of surplus in institutions' annual accounts. There were no plans by ei바카라사이트r 바카라사이트 SOED or 바카라사이트 SHEFC to take reserves into account in decisions about 바카라사이트 funding of higher education in general.

"We would, however, expect potential private investors to take institutional reserves into account," he said. "Reserves are an important indicator of financial health. They are vital in demonstrating stability and good financial management."

Reserves had to be used appropriately, and this would be monitored, he warned. But it would be contrary to 바카라사이트 spirit of 바카라사이트 Private Finance Initiative to plan to introduce additional controls on institutional wealth.

Michael Yuille, Aberdeen University's director of finance, said: "This is a very welcome steer, and removes a worry that efficiency gains would be tighter if we were seen to be operating with a surplus. Clearly, if universities are to thrive and not merely survive, 바카라사이트y need a surplus to generate cash to fund new activities."

George Su바카라사이트rland, Edinburgh University's director of finance, who formerly worked for Shell International, said: "This emphasises a policy that those of us who come in from commerce would see as necessary and desirable."

Mr Su바카라사이트rland is advocating even tighter budgets within 바카라사이트 university, specifically to build up a surplus, and said Mr Wilson's statement would help in 바카라사이트 debate with academics who opposed this strategy.