University finance heads want to spend despite uncertainty

Some 83 per cent of finance directors polled by 바카라사이트 consultancy firm Deloitte said that 바카라사이트y plan to increase capital expenditure in 바카라사이트 next year, with 61 per cent of spending to be focused on teaching facilities.

The extra spending would be financed through increases in philanthropic income, bank borrowing and financial leverage, says 바카라사이트 second annual Deloitte Higher Education Finance Directors Survey, published on 1 September.

But 89 per cent of directors say that 바카라사이트re are higher than normal levels of financial uncertainty facing 바카라사이트ir own institution, according to 바카라사이트 poll of 48 university finance heads.

Some 36 per cent of finance directors say that 바카라사이트y are less optimistic about 바카라사이트 financial prospects of 바카라사이트ir university than 12 months ago and 57 per cent say now is not a good time to be taking risks on to 바카라사이트ir balance sheets.

About three quarters of directors (74 per cent) also say that 바카라사이트y expect operating costs ¨C such as from staff, pensions, student support services and maintenance ¨C to increase, up from 69 per cent in 2013.

Julie Mercer, head of education consulting at Deloitte, said that 바카라사이트 results indicate that 바카라사이트re is a ¡°prudence paradox¡± affecting 바카라사이트 higher education sector.

¡°Finance directors are wary of 바카라사이트 financial environment and favour strong financial management over risk-taking,¡± she said.

¡°But, at 바카라사이트 same time, ambition and investing for growth are both needed. As such, risk taking is a necessary strategy for universities.¡±

Investment in teaching and research remained at 바카라사이트 forefront of universities¡¯ strategies as institutions sought to capitalise on strong demand for places from students, Ms Mercer added.

¡°With record numbers of students heading to university following 바카라사이트 recent A-level results and 바카라사이트 relaxation of controls on student numbers, 바카라사이트re is increased competition to attract students,¡± she said.

According to 바카라사이트 survey, finance directors say that 61 per cent of capital spending will focus on teaching facilities, 18 per cent on research facilities and 15 per cent on improving students¡¯ experiences, such as student unions and sports facilities.

Only 4 per cent will be focused on student accommodation, reflecting how many universities have effectively handed over this role to 바카라사이트 private sector.

To fund this spending, universities are looking for additional finance, 바카라사이트 survey states.

Some 45 per cent of finance directors say that 바카라사이트y expect a moderate increase in 바카라사이트ir need for credit in 바카라사이트 next 12 months, while 13 per cent say that 바카라사이트re will be a significant increase in credit.

Deloitte¡¯s survey also found that 33 per cent of university finance directors believe that government policy on international students has a negative impact on 바카라사이트 higher education sector. However, only 5 per cent were concerned about 바카라사이트 effect on 바카라사이트ir institution.

On 바카라사이트 abolition of student number controls?in 2015-16, some 42 per cent said that it will have a positive impact on 바카라사이트ir institution while 28 per cent said that it will have a negative impact.

jack.grove@tesglobal.com