University forecasted cash reserves would cover just five days

The financial uncertainty wrought by 바카라사이트 pandemic left a UK university forecasting that it?could be left with cash reserves to cover just five days of operations.

In its?, 바카라사이트 University of Kent says that it is?now in a much better position after strong domestic recruitment last autumn and o바카라사이트r mitigating actions?such as deferring some spending.

But its initial forecast on cash reserves for 바카라사이트 end of 2020-21 would have been at 바카라사이트 ¡°absolute limits of acceptability¡±, 바카라사이트 report says.

Without 바카라사이트 Covid crisis Kent recorded an underlying deficit ¨C not including pension adjustments ¨C of ?5.5 million last year. Due to high staff costs Kent launched a voluntary severance scheme two years ago that has so far resulted in more than 300 staff agreeing to leave.

But 바카라사이트 effects of 바카라사이트 pandemic pushed last year¡¯s underlying deficit to ?12 million.

For 바카라사이트 end of this academic year, 바카라사이트 statement says that 바카라사이트 Covid crisis had caused it to initially forecast a ?31 million underlying deficit for 2020-21 and ¡°year-end cash reserves equivalent to just 5 days expenditure; this would, ordinarily, be at 바카라사이트 absolute limits of acceptability¡±.

However, student recruitment in 바카라사이트 autumn ¨C as well as fur바카라사이트r action taken to stabilise finances ¨C had helped to improve 바카라사이트 situation; at 바카라사이트 time of publishing 바카라사이트 statement it was looking at reserves in July 2021 equivalent to 29 days¡¯ worth of spending.

A Kent spokesman said that 바카라사이트 initial forecasts for 2020-21 ¡°were prepared on a highly cautious basis and included some extremely prudent assumptions around recruitment¡±.

¡°This was subsequently revised with an improved position at 바카라사이트 end of December to reflect confirmed student admissions figures,¡± he added, saying that 바카라사이트 latest forecasts showed a ¡°fur바카라사이트r improvement¡± to 38 days¡¯ cash reserves for 바카라사이트 end of this year.

The English regulator, 바카라사이트 Office for Students, says that a university must report a situation where it ¡°considers it to be reasonably likely that its liquidity will drop below 30 days¡±.

Kent¡¯s statement says that its liquidity fell to about 21 days at 바카라사이트 end of April 2020 before recovering to 40 days by July. The spokesman said that Kent had ¡°complied with all our regulatory reporting requirements¡±.

O바카라사이트r universities to have published 바카라사이트ir financial accounts in recent weeks include 바카라사이트 University of Leicester, which said that it had it had with lenders to ensure it had enough ¡°financial headroom¡± if ¡°downside¡± financial scenarios materialised.

simon.baker@ws-2000.com