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Reports

Report of the Council on the financial position of the Chest, recommending allocations for 1998-99

The COUNCIL beg leave to report to the University as follows:

SUMMARY

The following are the principal points of this Allocations Report:

Introduction

1. As in previous years, the purpose of this Allocations Report is to assess the financial position of the University and to recommend allocations from the Chest for the ensuing financial year to the General Board for the University Education Fund (UEF) and to the Council for all other purposes.

Revised estimates 1997-98

2. When the Council reported in May 1997 (Reporter, 1996-97, p. 768) they expected that total income for the year 1997-98 would be £270.0m, of which £138.3m would be unrestricted Chest income and £131.7m would be restricted income (research grants and contracts, trust funds, special funds, self-supporting accounts, and commercial activities). The overall position was expected to be a surplus of £1.8m on restricted income and a deficit of £0.3m on the Chest.

3. The Chest out-turn for 1997-98 is now forecast to be as follows: income £143.0m, expenditure £142.9m, surplus £0.1m. The extra income, shown in detail in Appendix 2, includes additional earmarked grants from the HEFCE and additional income from research grant overheads and other sources, including a refund of VAT (£2.5m). These changes have enabled the Council to make additional non-recurrent allocations to the Minor Works Fund (£2m) and the Buildings Maintenance Fund (£0.5m). Full details of the proposed additional expenditure are set out in Appendix 2.

4. The revised forecast for restricted income for 1997-98 is £145.8m; expenditure is now estimated at £143.9m, giving rise to a forecast surplus of £1.9m.

Forecasts for 1998-99

Achieving our mission

5. The University's mission is to provide an education of the highest quality at both undergraduate and postgraduate level and to encourage and pursue research of the highest quality over a wide range of subjects.

6. It is fundamental to Cambridge that research and teaching are integrated. The maintenance of the University's excellent ratings is dependent on the quality of the teaching staff and it is therefore essential that such staff have sufficient time and appropriate space in which to carry out research, as well as up-to-date equipment, books, and journals, and access to other sources of information. The Council are concerned to ensure that all staff at whatever level are adequately paid and supported and that their workplace accommodation is adequate and appropriate. Over the past decade the number of staff employed by the University has increased steadily. Ten-year figures were published in the 1997 Allocations Report, and Appendix 1(B) to this Report gives details of all categories of staff and student numbers for 1997-98. The balance between established staff, funded by the Chest or the University Education Fund (UEF), and unestablished staff, paid for primarily out of research grants, continues to change, with an increasing number in the latter category. However, the ratio between FTE student numbers and established academic and academic-related staff has remained remarkably constant, at least over the past five years (see the University's Annual Report, 1996-97).

7. The increase in staff numbers places increasing pressure on the University's budget, both for pay and for infrastructure. The charts set out on pp. 680-4 show in real terms the ten-year trends in income and expenditure from all sources, together with the movement over a seven-year period of the unit of resource for teaching. Despite the financial constraints which have affected the higher education sector in recent years, the Council have striven to include adequate support in the budget for the maintenance of buildings and the renewal of plant and equipment, as well as doing all they can to facilitate the support of new academic needs and the provision of new or refurbished accommodation.

Pay restructuring and early retirement schemes

8. The Council are giving attention to the need for a restructuring of senior University offices and have under consideration a number of models; it is expected that the Council and the General Board will be bringing forward major proposals during the coming year. These will take account of the recommendations of any Syndicate set up by the Regent House to reconsider these matters. The likely cost for which provision has been made in estimates or forecasts is £2.5m in 1998-99, £3.5m in 1999-2000, and £4.5m in 2000-01; thereafter costs will be in the baseline and subject to inflation increases only. An amount has also been included in the budget for 1998-99 to allow some modest restructuring of Assistant Staff posts. As there is no government funding for such a scheme (and indeed HEFCE funding is subject to an ongoing 'efficiency gain' of 1 per cent a year) it will have to be paid for by a reduction in other areas. Many of the University's heads of expenditure are already subject to rigorous value-for-money analysis. The Finance Committee will continue to oversee this work in areas falling under their responsibility, such as buildings repairs and maintenance, utilities, insurance, investment management, accounts, payroll, and pensions administration. However, it is clear that costs in these areas are already at a low level compared with most other universities and that savings probably cannot be achieved at the level required to fund such a major restructuring of pay. It will therefore be necessary to identify posts which can be removed permanently from the establishment without reducing overall income. A new selective early retirement scheme will be introduced, in order to remove up to sixty posts permanently from the establishment. As an immediate measure, the Council have agreed that a sum of £750,000 should be added to the projected savings on vacancies in 1998-99, in respect of savings to arise during that year from leaving certain posts unfilled for a period of a year.

DATA FOR TREND GRAPHS

University Income
In £M
89/90 90/91 91/92 92/93 93/94 94/95 95/96 96/97 97/98
(est)		 98/99
(est)
Funding Council Grant plus Fees 75.4 85.1 95.6 99.4 102.9 109.3 110.7 110.1 111.2 114.2
Overseas Fees 7.9 8.3 9.5 10.6 11.6 12.4 13.6 14.5 15.9 16.9
Endowments and Donations 15.2 17.8 21.1 24.2 33.1 28.0 28.4 31.0 30.7 31.7
Other Income 7.1 11.0 12.8 13.1 13.1 18.5 28.8 33.1 29.9 28.3
Research Grants and Contracts 37.8 43.4 48.5 63.7 74.9 84.2 85.7 93.6 101.2 106.0
143.4 165.6 187.5 211.0 235.6 252.4 267.2 282.3 288.9 297.1
Purchasing Power of University Income
In £M
RPI Factor 122.0 116.0 112.0 110.0 108.0 106.0 104.0 102.0 100.0 97.0
89/90 90/91 91/92 92/93 93/94 94/95 95/96 96/97 97/98
(est)		 98/99
(est)
Funding Council Grant plus Fees 92.0 98.7 107.1 109.3 111.1 115.9 115.1 112.3 111.2 110.8
Overseas Fees 9.6 9.6 10.6 11.7 12.5 13.1 14.1 14.8 15.9 16.4
Endowments and Donations 18.5 20.6 23.6 26.6 35.7 29.7 29.5 31.6 30.7 30.7
Other Income 8.7 12.8 14.3 14.4 14.1 19.6 30.0 33.8 29.9 27.5
Research Grants and Contracts 46.1 50.3 54.3 70.1 80.9 89.3 89.1 95.5 101.2 102.8
174.9 192.0 209.9 232.1 254.3 267.6 277.8 288.0 288.9 288.2
University Expenditure
In £M
89/90 90/91 91/92 92/93 93/94 94/95 95/96 96/97 97/98
(est)		 98/99
(est)
Academic Departments and Services 69.3 79.5 88.3 94.6 98.8 101.0 108.5 112.9 120.8 124.5
Research Grants and Contracts 42.7 42.0 46.7 56.3 66.6 74.4 75.9 82.5 89.0 93.2
Maintenance of Premises 8.8 12.6 14.9 17.2 19.2 24.8 20.1 23.0 23.4 22.8
Administration and Central Services 3.9 4.2 4.8 5.4 5.9 6.7 8.8 9.4 10.3 11.0
General Educational Expenditure 3.0 5.7 6.0 6.5 6.8 6.4 5.8 6.2 7.1 7.9
Capital Expenditure 8.5 10.7 18.2 15.4 18.8 21.9 28.0 22.6 16.2 12.2
Transfers from/to Reserves 0.0 3.1 (1.0) 5.1 7.7 4.3 2.6 7.6 2.9 2.5
Miscellaneous 7.1 7.6 8.4 9.6 11.2 12.1 16.3 16.6 19.0 23.8
143.3 165.4 186.3 210.1 235.0 251.6 266.0 280.8 288.7 297.9
Purchasing Power of University Expenditure
In £M
RPI Factor 122.0 116.0 112.0 110.0 108.0 106.0 104.0 102.0 100.0 97.0
89/90 90/91 91/92 92/93 93/94 94/95 95/96 96/97 97/98
(est)		 98/99
(est)
Academic Departments and Services 84.5 92.2 98.9 104.1 106.7 107.1 112.8 115.2 120.8 120.8
Research Grants and Contracts 52.1 48.7 52.3 61.9 71.9 78.9 78.9 84.2 89.0 90.4
Maintenance of Premises 10.7 14.6 16.7 18.9 20.7 26.3 20.9 23.5 23.4 22.1
Administration and Central Services 4.8 4.9 5.4 5.9 6.4 7.1 9.2 9.6 10.3 10.7
General Educational Expenditure 3.7 6.6 6.7 7.2 7.3 6.8 6.1 6.3 7.1 7.7
Capital Expenditure 10.4 12.4 20.4 16.9 20.3 23.2 29.1 23.1 16.2 11.8
Transfers from/to Reserves 0.0 3.6 (1.1) 5.6 8.3 4.6 2.7 7.8 2.9 2.4
Miscellaneous 8.7 8.8 9.4 10.6 12.1 12.8 17.0 16.9 19.0 23.1
174.9 191.8 208.7 231.1 253.7 266.8 276.7 286.6 288.7 289.0
Purchasing Power of University Income
As % of University Income
89/90 90/91 91/92 92/93 93/94 94/95 95/96 96/97 97/98
(est)		 98/99
(est)
Funding Council Grant plus Fees 52.6% 51.4% 51.0% 47.1% 43.7% 43.3% 41.4% 39.0% 38.5% 38.4%
Overseas Fees 5.5% 5.0% 5.1% 5.0% 4.9% 4.9% 5.1% 5.1% 5.5% 5.7%
Endowments and Donations 10.6% 10.7% 11.2% 11.5% 14.0% 11.1% 10.6% 11.0% 10.6% 10.7%
Other Income 5.0% 6.7% 6.8% 6.2% 5.5% 7.3% 10.8% 11.7% 10.3% 9.5%
Research Grants and Contracts 26.4% 26.2% 25.9% 30.2% 31.8% 33.4% 32.1% 33.2% 35.0% 35.7%
100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Purchasing Power of University Expenditure
As % of University Expenditure
89/90 90/91 91/92 92/93 93/94 94/95 95/96 96/97 97/98
(est)		 98/99
(est)
Academic Departments and Services 48.3% 48.1% 47.4% 45.0% 42.1% 40.1% 40.8% 40.2% 41.8% 41.8%
Research Grants and Contracts 29.8% 25.4% 25.1% 26.8% 28.3% 29.6% 28.5% 29.4% 30.8% 31.3%
Maintenance of Premises 6.1% 7.6% 8.0% 8.2% 8.2% 9.9% 7.6% 8.2% 8.1% 7.6%
Administration and Central Services 2.7% 2.6% 2.6% 2.6% 2.5% 2.7% 3.3% 3.3% 3.6% 3.7%
General Educational Expenditure 2.1% 3.4% 3.2% 3.1% 2.9% 2.5% 2.2% 2.2% 2.5% 2.7%
Capital Expenditure 5.9% 6.5% 9.8% 7.3% 8.0% 8.7% 10.5% 8.1% 5.6% 4.1%
Transfers from/to Reserves 0.0% 1.9% -0.5% 2.4% 3.3% 1.7% 1.0% 2.7% 1.0% 0.8%
Miscellaneous 5.0% 4.6% 4.5% 4.6% 4.8% 4.8% 6.1% 5.9% 6.6% 8.0%
100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

FUNDING FOR HOME STUDENTS

£M 92/93 93/94 94/95 95/96 96/97* 97/98* 98/99*
Funding Council (incl TTA) T 22.4 28.3 37.9 39.4 37.6 39.9 40.0
Home Fees 33.1 31.2 23.4 24.4 25.3 25.0 23.4
55.5 59.5 61.3 63.8 62.9 64.9 63.4
Adjusting these figures to take account of the Purchasing Power of the £ :-
RPI Factor 110.0 108.0 106.0 104.0 102.0 100.0 97.0
Funding Council (incl TTA) T 24.6 30.6 40.2 41.0 38.4 39.9 38.8
Home Fees 36.4 33.7 24.8 25.4 25.8 25.0 22.7
61.0 64.3 65.0 66.4 64.2 64.9 61.5

TOTAL FEE PAYING STUDENT NUMBERS

92/93 93/94 94/95 95/96 96/97 97/98 98/99
Home Undergraduates 9,877 10,037 10,162 10,419 10,463 10,376 10,540
Home Postgraduates 2,184 2,381 2,482 2,602 2,715 2,617 2,665
12,061 12,418 12,644 13,021 13,178 12,993 13,205

UNIT OF RESOURCE PER FULL TIME HOME STUDENT NUMBERS

£ 92/93 93/94 94/95 95/96 96/97 97/98 98/99
T plus Home Fees / Home UG and PG (FT) 4,602 4,791 4,848 4,900 4,773 4,995 4,801
As above, deflated 5,058 5,178 5,141 5,099 4,872 4,995 4,657

* For these years that element of capital funding now included within the HEFCE Grant has been removed in order to allow comparability with earlier years.

Financial prospects for 1998-99 and beyond: Income

9. The overall financial position of the University continues to be one that increasingly requires the cautious strategy referred to in previous Allocations Reports, particularly in the face of the Government's continued requirement for 'efficiency gains'.

10. The University's five main sources of revenue are as follows:

11. The amounts which accrue to the Chest and which form the subject of this Report are the unrestricted elements of these revenue sources. Total estimated income amounts to £297.1m (shown in the first diagram in Appendix 3), of which £145.3m will accrue to the Chest. Efforts continue to be made to increase the income available to the Chest and the UEF, for example by ensuring full distribution of income from the University's Amalgamated Fund, by continuing to adopt an energetic cash management policy, and by encouraging greater use of trust and special funds. However, the major portion of Chest income comes from HEFCE grant and student fees, both of which are subject to restraints. Table 1 sets out the view of the Council's Planning and Resources Committee on the likely financial position up to the year 2000-01.

12. A breakdown of the expected Chest income in 1998-99 is set out in Table 1. The following are the main components:

* Interest rates on cash balances have been at about 7 per cent for most of 1997-98, and it has been assumed for 1998-99 that they will remain at about that level.

(a) HEFCE grant
The HEFCE grant already notified is £89m, as detailed in Note 1 to Table 1. A deduction of £11.2m on account of College fees is included in the calculation of non-formula funding which is shown separately in Note 1 to Table 1. Note 1 shows the division of the grant between funds for teaching and research.
(b) TTA grant
The TTA grant is £1.5m (see paragraph 18), specifically to cover the costs of the provision of Initial Teacher Training (ITT) and In-Service Training (INSET) by the Faculty of Education.
(c) Fees: Home and EU students
The estimated income to the Chest from this source for 1998-99 is £16.7m, based on composition fees for undergraduates, which have been set by the Government at £1,000. The postgraduate fee for 1998-99 has been set by the Government at £2,610. Fee-paying student numbers are in line with current College estimates for 1998-99, at 10,540 undergraduates (including Homerton College students) and 2,665 graduates. Undergraduate numbers conform as far as practicable to the Maximum Aggregate Student Number (MASN) of 9,914 set by the HEFCE; this number plus 3 per cent is the maximum number of undergraduate and PGCE award-holders that the University is allowed to recruit without financial penalty.
(d) Fees: overseas students
The estimated income to the Chest from this source is £16.2m, which assumes 810 undergraduate students and 1,480 postgraduate students. By Grace 1 of 13 May 1998 University Composition Fees for overseas students have been increased by 4.75 per cent for 1998-99; care is being taken to ensure that additional support is available to the Cambridge Commonwealth Trust, the Cambridge Overseas Trust, and the Cambridge European Trust, to compensate them for the increased fees that they will pay on behalf of overseas students, with the aim of ensuring that there is no reduction in the number of overseas students that they can support.
(e) Endowments, income and interest receivable
£m
Interest from Amalgamated Fund representing Chest capital 3.7
Interest on short-term and other investments 2.5*
Rent (including transfers from the Estate Account) 0.7
Miscellaneous 0.5
7.4
(f) Other operating income
It is estimated that income from this source will be £5.8m, made up as follows:
£m
Annual transfer from the Local Examinations Syndicate 3.5
Annual unearmarked donation from the Cambridge Foundation 0.9
Refund of VAT 1.3
Miscellaneous 0.1
5.8
(g) Overheads on externally funded research
It is estimated that income to the Chest from this source will be £7.8m. This represents the Chest's share of overheads, which is generally two-thirds; it excludes the share of such income that is credited to the discretionary and other appropriate accounts of individual institutions in the University.

13. Paragraphs 14-19 below set out further comments on some of the Chest's main sources of income in 1998-99. Total HEFCE and TTA funding is up by 4.6 per cent overall in cash terms, a net increase of 1.8 per cent allowing for the GDP Deflator for the academical year 1998-99 (2.8 per cent) or 0.4 per cent when compared with the actual increase in the Higher Education Pay and Prices Index for January 1998 (4.2 per cent).

HEFCE funding for research

14. The quality-related component of research funding ('QR') for 1998-99 shows an increase of 5.5 per cent on the comparable figure for 1997-98, compared with the 4.4 per cent increase in the funds available for England as a whole. The much smaller component rewarding generic research ('GR') falls by 2.5 per cent, owing to a decline from 64 per cent to 57 per cent in the proportion of our total research contract income which is GR-qualifying. This arises in part from normal variations in research expenditure from year to year, but also reflects a persistent downward trend in the extent to which our contracts with UK industry and commerce are GR-eligible in terms of the criteria set by the HEFCE.

15. The only substantial change to HEFCE methodologies for 1998-99 is that Home/EU postgraduate research students beyond their first year of study are now wholly supported via funding for research. In the case of Cambridge a sum of £4.1m has accordingly been transferred from the former funding for teaching, and in future this sum will be integrated into the 'QR' element of funds. The basic 'QR' allocations reflect a further step in the phased revision of the national funding quanta - the total sums allocated to each Unit of Assessment. By 1999-2000 these will be based only on the volume of research activity to be supported and the relative cost of undertaking research in each subject area, independently of the subject's overall quality nationally as measured by the Research Assessment Exercise. It has been argued that this methodology has particularly detrimental effects for funding of the Arts, Humanities, and Social Sciences.

HEFCE funding for teaching

16. The HEFCE 'T' funding model for 1998-99 onwards differs substantially from that for earlier years, although in practice it has not affected the Cambridge grant for the year. The underlying principle of the new model is that similar academic activities should be funded at similar rates and that there should be a standard unit of resource, inclusive of tuition fee, for a full-time equivalent student in each of four Price Groups. These are groupings of subjects of comparable cost, the 'price' or resource unit attached to them being a multiple of the base price in accordance with their relative cost. For 1998-99 the base price is £2,662 per weighted FTE student; part-time students and those on courses exceeding 45 weeks a year attract relatively greater resource.

17. In practice, the aggregate standard resource for a university for the next grant year, calculated on the lines of the preceding paragraph, is compared with the current year's grant rolled forward plus estimated fee income from Home/EU students; provided that the figures are within 5 per cent of each other, no action results and the current grant becomes the baseline for the following year. In the case of Cambridge, after provision for inflation and compensation for the change to the new Government-regulated tuition fee, our 1997-98 grant together with the HEFCE estimate of next year's fee income does exceed the resource to which we might be entitled, but by less than 5 per cent. We therefore effectively receive a continuation of our 1997-98 grant but, were it not for the ±5 per cent tolerance band of the new HEFCE model, we should lose funding under it.

TTA funding for teaching (ITT and INSET)

18. The funding for Initial Teacher Training in 1998-99 is 3.1 per cent less than for this year for the same target student intake. This is a further step in the phased reduction of funding, arising from the methodology adopted by the TTA which involves a standard 'price tariff' or fixed units of funding per student per subject. The final step in the phasing may involve a drop of about 5 per cent for 1999-2000. TTA funding for In-Service Training is similarly subject to a new funding method, some 75 per cent of existing funds being guaranteed for 1998-99 and the balance being open to competitive bidding - in which Cambridge is one of a small number of successful institutions. Unfortunately, the level of guarantee will decline in further tranches of 25 per cent until 2001-02. However, discussions are in train which should result in funding for our M.Ed. course reverting to the HEFCE; the TTA are resisting such a move, which arises from our view of the nature of the course and not directly from the funding situation.

Dual support transfer

19. In previous Allocations Reports the Council have set out in detail the adverse effects on the University's financial position as a consequence of the failure of the dual support transfer to be financially neutral for the University. The overall shortfall to the Chest is now calculated to have been reduced to about £1m a year. It is, however, a cause of some satisfaction to note that the improvement in income to Departmental H8 accounts reported in 1997 has been sustained, against the overall target of £4.4m, as indicated by the out-turn figures below:
£000s
1994-95 (767)
1995-96 (588)
1996-97 194
1997-98 684 (estimate)

20. This improvement reflects both the higher level of automatic overhead paid by the Research Councils, which was increased from 40 per cent to 45 per cent of salary costs on 1 April 1997 (and subsequently to 46 per cent), and the considerable attention that has been given by the General Board and Councils of the Schools to ensuring that Heads of institutions achieve the highest rate of recovery (by claiming for all allowable costs), in order that existing levels of recurrent funding can be maintained. Significant progress has also been made towards reducing the non-recurrent deficits carried forward from the earlier years of the transfer. This work is continuing in consultation with the Heads of institutions concerned.

Financial support from the University Press

21. Since 1986 the Press Syndicate have annually transferred amounts into their Special Fund, held on behalf of the University. The income from the Special Fund has been made available to the University and the capital may, with the agreement of the Syndicate, be drawn down by the University when needed. Both income and capital are to be applied to purposes consonant with the Press's statutory objectives. The recurrent transfers have grown over the years from £600,000 in 1986 to £1,114,915 in 1996. They are additional to the amounts provided to the University annually as subsidy for the production of the Reporter, and are also additional to the £10m donation to the Development Appeal in 1994 and 1996 (which brought the total donation from Press Special Fund and General Funds together to £20m; see Reporter, 1994-95, p. 781).

22. In November 1997 the Council accepted the Press Syndicate's offer to transfer a total of £4m to the Special Fund, representing an up-front payment in respect of 1997, 1998, and 1999. The Press Special Fund is now worth approximately £6.9m and its income, expected to be about £280,500 in 1998-99, will be appropriated in aid of the University Library. In addition the Press will continue to subsidise the production costs of the Reporter, which amount to about £185,000 a year.

Quinquennial Equalization Fund

23. The QEF is available to make good any deficiency of income in a year in which the authorized expenditure of the Chest exceeds its income. The balance in the Fund at 31 July 1997 was £8.64m. If the surplus of £0.1m forecast in this Report for the current year is realized (paragraph 2), the balance in the QEF will be increased to approximately £8.7m. The effect of the deficit forecast for 1998-99 will be to reduce the balance in the Fund to about £8m, which is about 5.5 per cent of annual Chest expenditure (equivalent to twenty days' expenditure). Both balances reflect the current valuation of units of the Amalgamated Fund in which the QEF is invested, no account having been taken of the revaluation of units at 31 July 1998 and 31 July 1999 respectively; it is hoped that part of the reduction will be offset by an increase in the capital value of the units.

Expenditure

24. Draft estimates of expenditure for 1998-99 have been prepared in detail after consultation between Heads of Departments, and others responsible for submitting estimates, and the staff of the Finance Division, in accordance with general guidelines determined jointly by the Council and the General Board in the light of advice from the Resources Committee.

Funding priorities for 1998-99

25. In the Michaelmas Term 1997, the Council agreed to discharge both the Planning Committee and the Resources Committee and to replace them by a Planning and Resources Committee as a joint committee of the Council and the General Board. One intention of these arrangements is to achieve a closer relationship between the University's strategic plans and options for the deployment of resources. In the Lent Term 1998 the General Board, through the Councils of the Schools, consulted Faculties and Departments, in the context of the preparation of this Report, on their priorities for new developments and areas where savings might be made. The results of this consultation indicated that great importance was attached to measures to retain, reward, and promote staff, if necessary at the expense of some reduction in staff numbers. Respondents also expressed support for keeping up the allocations for maintenance of buildings and minor works. The General Board agreed to accord a high priority to making progress with the restructuring of academic and academic-related offices, as well as providing for temporary upgradings and personal promotions to Professorships and Readerships. Notwithstanding the difficult financial position the Board also recognize the importance of retaining some provision for funding new needs and for increased Other Charges, to continue to strengthen the infrastructure, such as technical and secretarial support, and to facilitate restructuring and reorganization that may be required in response to reviews and in readiness for the next RAE. On the recommendation of the Planning and Resources Committee, the Council have proposed that £2.5m should be allocated recurrently (subsuming the allocation of £1m in 1997-98) to meet the costs of salary restructuring.

Devolved budgeting and commitment accounting

26. The introduction of measures to achieve a greater devolution of expenditure from central sources to Departmental levels was announced in the 1997 Allocations Report. Progress in this respect should culminate in the near future in a pilot scheme involving the devolution of pay expenditure to one of the Schools (yet to be selected) as a representative section of the University; the procedures and constraints which will govern the pilot scheme are to be agreed by the General Board's Needs Committee. Recently completed comprehensive databases for the personnel records of academic, academic-related, and assistant staff will greatly assist in this exercise.

27. During the last year a significant amount of preparatory work has been carried out on the project to develop a University-wide commitment accounting system. A circular has recently been sent to all Departments informing them of the details of this project, and announcing that as an integral part of the project a consultation exercise is to be undertaken. It is anticipated that by this time next year the implementation stage of the project should be beginning.

28. A breakdown of proposed expenditure from the Chest is set out in Table 1. The following are the main components. Detailed estimates will be referred for approval to the Council in the case of Council institutions and to the General Board in the case of institutions under the supervision of the Board.

UEF Per cent1 Chest Per cent1 Total Per cent1
Expenditure £000s +/- £000s +/- £000s +/-
Academic Departments 71,280 2.7 1,058 0.4 72,338 2.6
Academic services 14,000 1.4 1,160 6.8 15,160 1.8
General educational expenditure 990 1.1 3,847 16.9 4,837 11.7
Maintenance of premises: Buildings Maintenance Fund and Head 8 3,760 1.1 17,987 8.7 21,747 6.8
Administration and central services 1,050 0.7 9,651 8.7 10,701 7.3
Student and staff facilities and amenities 1,596 2.4 1,596 2.4
Residences and catering operations 622 0.3 622 0.3
Severance costs and unfunded pensions 399 -21.8 399 -21.8
Allocations for capital expenditure (Minor Works, NBSF2, and Planning) 2,100 -49.1 2,100 -49.1
Miscellaneous expenditure 2,992 1.8 2,992 1.8
Strategic Planning Reserve 1,000 1,000
Provision for pay and price increases 4,000 4,000
Provision for salary restructuring 2,800 2,800
Provision for new recurrent needs (including inflation related increases in non-pay items) 1,000 420 1,420
Provision for non-recurrent expenditure 1,175 320 1,495
93,255 2.0 49,952 12.7 143,207 5.2
Equipment and Furniture 6,000 0.7 522 2.8 6,522 0.8
99,255 2.0 50,474 12.6 149,729 5.1

NOTES:
1 Percentage increase/decrease on comparable expenditure in 1997-98 (including supplementary allocations described in this Report).
2 New Buildings Sinking Fund.

29. Paragraphs 30-41 below set out further comments on some of the main heads of expenditure in 1998-99.

Medium term capital programme

30. No changes have been made to the estate strategy as described in the University's Strategic Plan (Reporter, 1996-97, p. 1117). A working group has, however, been set up by the Planning and Resources Committee to take that strategy forward, with funding from the Strategic Planning Reserve. Because of the pressure on recurrent funding the Council have decided that in 1998-99 there will be no contribution from the Chest to the New Buildings Sinking Fund. It is hoped that the University will be able to apply a generous gift of £500,000 from the Isaac Newton Trust towards capital purposes. Taking advantage of the very high levels of capital values in the Amalgamated Fund, the Council, advised by the Planning and Resources Committee, approved the realization of a capital gain of £5m which was transferred to the NBSF in the Michaelmas Term 1997. Notwithstanding the reduction in recurrent Chest funding for new buildings, the programme of building is expected to continue unabated, with support from the Local Examinations Syndicate and the University Press (referred to last year) and a wide range of benefactors, including individuals, companies, and charitable trusts, as indicated below.

31. The following major projects are either under consideration or in progress. In some cases proposals will be brought forward during 1998-99 for approval by the Regent House and the planning authorities, in others work will commence during the year (subject to funding, where appropriate), while in others work already in progress will continue.

(a) University Library Stage III Phase 3 (North West Corner)
(b) Scott Polar Research Institute, Shackleton Memorial Library
(c) Mathematics Phase I at Clarkson Road
(d) New building for Divinity on the Sidgwick Avenue Site
(e) Raised Faculty Building, alterations and refurbishment
(f) William H. Gates III building for the Computer Laboratory at West Cambridge
(g) Unilever Centre for Molecular Sciences Informatics
(h) Extension for Earth Sciences funded by BP
(i) Island Site Phase II
(j) Central Biomedical Services building
(k) Infrastructure works at West Cambridge, including a new sewer.

The total cost of these projects amounts to just under £90m, which will be funded as set out below:

£m
Corporate investment and donations from industry and commerce and from individual benefactors, including Cambridge Colleges 49.10
Cambridge University Press (part of £20m referred to in earlier Allocations Reports) 8.85
Local Examinations Syndicate (see the 1997 Allocations Report, para. 43) 2.50
VAT refund (see the 1997 Annual Report, para. 26) 1.50
Borrowing 2.00
Lottery funding 2.30
Land Fund 10.00
Chest (NBSF, Minor Works Fund, Maintenance Funds) 7.40
Further fund-raising 5.00

Minor capital works

32. The Minor Works Fund, which is used as a source of funds for building alterations and extensions, has continued to be subject to heavy demands. The demand for minor works continues at a high level for numerous reasons, including health and safety, the arrival of new staff, especially Professors, and in response to (or in anticipation of) Teaching Quality Assessment visits. Because of the pressure on the available funds, the Council and the General Board are concerned to ensure that the University's resources are deployed in as cost-effective a manner as possible; accordingly, schemes are subject to close scrutiny by the newly established Minor Works Review Group at all stages of development. Furthermore, the General Board and the Council routinely require contributions towards the cost of minor works from funds available to institutions; this also serves to ensure that specifications are kept to the minimum necessary to satisfy the purpose of a scheme. In the Michaelmas Term 1997 the HEFCE invited individual universities to submit proposals under two initiatives 'Improving Poor Estates' and 'Refurbishing Research Laboratories', for each of which £30m was to be allocated to support schemes selected by the Funding Council, through grants to be matched by the institutions concerned. None of the five schemes submitted by the University under the 'Poor Estates' initiative was successful. However, all five schemes submitted under the 'Research Laboratories' scheme were awarded funds, as follows:
Department £m
Chemical Engineering 1.10
Chemistry 1.31
Genetics 0.65
Oncology 0.17
Plant Sciences 0.28
3.51

These grants, with the assistance of matching funds drawn from a variety of sources, will be of considerable help in taking forward some important schemes in the minor works programme. Nevertheless, it is of concern that such funds given through targeted initiatives can support only a part of the work necessary to bring all the University's teaching and research facilities up to modern standards. Accordingly, there will continue to be a need to provide substantial funds for that purpose from the University's own resources.

33. A summary of the estimated position of the Fund in the current year and a forecast for 1998-99 is given below:

1997-98
Estimated
£m		 1998-99
Estimated
£m
Opening balance (cash) 6.36 7.53
Income
Chest allocations 5.00 2.00
Other receipts1 0.67 0.57
Sub-total 12.03 10.10
Expenditure 4.50 6.00
Closing balance (cash) 7.53 4.10
Less outstanding commitments 7.58 8.00
Uncommitted balance at 31 July (0.05) (3.90)

1 The Fund is now credited with interest on its cash balances formerly treated as Chest income.

34. Schemes where the contribution from the Minor Works Fund is in excess of £50,000, which have been approved or commenced since the last Allocations Report, include:

£m
Biochemistry: refurbishment of research accommodation 0.25
Clinical Veterinary Medicine: new post-mortem room 2.10
Clinical Medicine: SmithKline Beecham building (contributions) 0.10
Engineering: library refurbishment 0.32
refurbishment of Baker Building South Wing 0.86
Physics: chemical workstations 0.10
EMBS: conversion of Bailey Grundy Barrett Building 0.40

35. The proposed allocation of £2m to the Minor Works Fund from the Chest in 1998-99 takes account of a generous offer of £1m from the Isaac Newton Trust to be deployed in conjunction with a matching amount from the Strategic Planning Reserve Fund for projects of strategic importance.

Maintenance of buildings

36. The position of the Buildings Maintenance Fund for the years under review is estimated to be as follows:
1997-98
£m		 1998-99
£m
Balance brought forward 5.37 4.14
Allocation from the Chest 3.00 3.20
HEFCE special funding1 1.70 -
Additional allocation2 1.50 1.00
Expenditure3 (7.53) (5.23)
Balance carried forward4 4.14 3.11

NOTES
1 The final tranche of HEFCE moneys for the KDK programme is expected this year. (For an account of the KDK programme of backlog maintenance, see paragraph 20 of the 1995 Allocations Report, Reporter, 1994-95, p. 782.)
2 £1.0m relates to the fume cupboard upgrading programme and £0.5m has been earmarked for the University Identity Card and the Raised Faculty Building.
3 Includes run-off expenditure from previous years.
4 Funds are being accumulated for major refurbishments; against this balance are commitments of some £6m.

37. On the recommendation of the Finance Committee, and having regard to the need to prevent levels of maintenance expenditure falling below the level recommended in recent HEFCE guidance after the end of the KDK programme, the Council have proposed an allocation of £3.2m to the Fund in 1998-99, supplemented by the first of five additional annual allocations of £1m for the continuance of the fume cupboard upgrading programme.

38. The Maintenance and Standards Review Group have continued to monitor proposed works closely. However, many works are essential to meet statutory requirements, and offer little scope for cost savings. Major maintenance projects approved or commenced since the last Report include:

£m
Plant Sciences: fire protection 0.150
New Museums Site: external fabric repairs Phase 5 0.166
History and Philosophy of Science/Whipple Museum: fire precautions and lighting upgrade 0.130
Fitzwilliam Museum: electrical refurbishment Phase I 0.199
Physiological Laboratory: fire precautions 0.187
Old Schools: external fabric repairs Phase 3 0.276
History: electrical refurbishment Phase 3 0.216
Materials Science: Arup building fire precautions 0.247
New Museums Site: substation distribution panels 0.224
New Museums Site: external fabric repairs Phase 6 0.299
Senate-House: external fabric repairs Phase 1 0.441
2.535

39. It is expected that the KDK programme targets will have been met by the end of this financial year, although actual expenditure will be continuing, owing to the time lag for the completion of works, well into 1998-99. The final tranche of £1.797m of HEFCE money has been received in advance of the October 1998 cut-off date, reflecting HEFCE's confidence in the University's programme.

Strategic Planning Reserve Fund

40. The Strategic Planning Reserve Fund was established in 1993 in response to the need to introduce a measure of flexibility into the budget so as to make it possible to provide financial support for projects of strategic importance, as determined by the Council on the advice of the Resources Committee (now the Planning and Resources Committee) and the General Board. The Council take this opportunity to inform the University of the projects for which assistance from the Fund has been committed since the publication of the 1997 Allocations Report, as follows:
£m
Department of Plant Sciences: for refurbishment of research accommodation and teaching laboratory 0.928
School of Clinical Medicine: underwriting running costs of the Institute of Cellular and Genetic Medicine 0.414
Department of Pathology: towards research assistance and the costs of equipment and refurbishment of accommodation 0.25
University Library: towards retrospective conversion of catalogues (Greensleeves Project) 0.4

41. The uncommitted balance of the Fund at 30 April 1998 was £2.4m. The existence of the Fund continues to enable the central bodies and the Vice-Chancellor to respond rapidly and creatively in pursuit of the University's goals, especially in negotiations with new Professors and external funding bodies. The Council propose a further allocation of £1m to the Fund for 1998-99. The Council have agreed that in 1998-99 disbursements from the Fund will include the support of minor works of strategic importance, through grants to match the £1m from the Isaac Newton Trust referred to in paragraph 35.

Provision for rising costs

42. The estimates have been prepared on the basis of stipends and wages in payment on 1 January 1998, and provision has been made for estimated cost-of-living pay increases which are expected to take effect before 1 August 1999. The Council emphasize, as they have done in earlier years, that pay remains the most critical factor in the University's overall budget, representing approximately 60 per cent of total expenditure from the Chest. It is therefore essential that the overall pay budget should be contained at a level which the University can continue to afford in the long term. Changes in pay costs are a function not only of annual pay awards but also of changes in the structure of staffing throughout the University as a whole. A sum of £158m has been estimated for the University's total annual salary costs as at 1 January 1998; this includes staff numbers as follows:
1997-98 1996-97
Established academic and academic-related staff 1,824 1,815
Support staff 2,627 2,713
Unestablished staff 1,966 1,934
Total staff 6,428 6,462

Approximately £86m falls on the Chest (including the UEF), and the balance of £72m is from restricted income (research grants and contracts, trust funds, etc.).

Recommendations

43. The Council recommend:
I. That the supplementary allocations for 1997-98 referred to in this Report be approved.
II. That allocations from the Chest for the year 1998-99 be as follows:
(a) to the Council for all purposes other than the University Education Fund: £50,474,149;
(b) to the General Board for the University Education Fund: £99,255,344.
III. That the allocations for 1998-99 be adjusted to take account of any differences between actual and estimated expenditure on pensionable stipends, wages, pensions, national insurance contributions, and other personal emoluments.
IV. That any additional surplus achieved in 1997-98 and any supplementary HEFCE grants which may be received for special purposes during 1998-99 be allocated by the Council, wholly or in part, either to the General Board for the University Education Fund or to any other purpose consistent with any specification made by the HEFCE, and that the amounts contained in Recommendation II above be adjusted accordingly.

25 May 1998

ALEC N. BROERS, Vice-Chancellor BRIAN F. G. JOHNSON ONORA O'NEILL
T. S. ADKINS D. E. L. JOHNSTON PENNY PEREIRA
MARTIN BOBROW JOHN A. LEAKE SANDRA RABAN
TERENCE ENGLISH ANNE LONSDALE M. SCHOFIELD
A. L. R. FINDLAY C. T. MORLEY DAVID M. THOMPSON
DAVID HARRISON

APPENDIX 1(A) UNIVERSITY STUDENT STATISTICS (FEE-PAYING STUDENTS)

      96/97 97/98
UNDERGRADUATES
Home & EC
Arts
Arts (excl Homerton BA/BEd) 4,873 4,824
Homerton BA and BEd 469 476
Half fee students 113 110
Science
Science 4,498 4,403
Clinical
Clinical (excl 7th term MB students) 405 414
Clinical 7th term MB students 105 110
10,463 10,337
Island Students
Arts 19 25
Science 12 14
Clinical - -
31 39
Overseas
Arts
Arts (excl Homerton BA/BEd) 358 384
Homerton BA and BEd 1 1
Half fee students 1 2
Science 354 374
Clinical 14 23
728 784
Total Undergraduates 11,222 11,160
 
POSTGRADUATES
Home & EC
Postgraduate (excl PGCE & MBA) 2,471 2,390
PGCE 222 206
MBA 22 21
2,715 2,617
Overseas
Postgraduate (excl MBA) 1,373 1,403
MBA 50 64
1,423 1,467
Total Postgraduates 4,138 4,084
Total Student Numbers 15,360 15,244
Total Home Student Numbers 13,178 12,954
Total Islands Student Numbers 31 39
Total Overseas Student Numbers 2,151 2,251
15,360 15,244

APPENDIX 1(B) UNIVERSITY STAFF STATISTICS (FTEs)

      96/97 97/98
(a) Academic and academic-related staff
(i) Established Staff
Academic staff
Departmental
Professors 235 250
Readers 170 179
University Lecturers 714 706
University Assistant Lecturers 50 33
Other Academic 166 170
Total Academic Staff 1,335 1,338
Academic-related staff
Departmental
Administrative 53 52
Curators 9 8
Library 74 76
Technical 51 51
Computer 87 91
Other Academic-related 12 11
286 289
Research Staff 11 10
Central and service
University Administrative Offices 118 121
Fitzwilliam Museum 17 17
Others 18 17
153 155
Total Academic-Related Staff 450 454
(ii) Unestablished staff
Departmental and central
Academic 64 73
Academic-Related 130 153
Research 1,740 1,751
Total Unestablished Staff 1,934 1,977
Total academic and academic-related staff 3,719 3,769
(b) Support Staff
Technicians 1,149 1,123
Secretarial / Clerical / Library 1,050 1,027
Manual / Ancillary / Catering / Cleaners 404 377
Temporary (200 included at 0.5 FTE) 110 100
Total support staff 2,713 2,627
(c) Casual Staff
Casuals (65 included as 0.5 FTE) 30 32
Total casual staff 30 32
TOTAL STAFF 6,462 6,428

Notes
1 This data is a snap-shot of all known University employees in post at 4 February 1998.
2 All figures are for Full Time Equivalent (FTE) staff numbers, as opposed to headcount, in order to facilitate comparisons with pay expenditure, and time series trends.
3 Established staff at Continuing Education have been included in the appropriate Departmental category: academic (5), administrative (8), and other academic-related (2) for 1997/98; and academic (7), administrative (6), and other academic-related (2) for 1996/97.

APPENDIX 2 CHEST ESTIMATED OUT-TURN 1997/98

£000's £000's
Increase/(Decrease) in income
HEFCE Grant: Equipment and Furniture 105
Backlog Maintenance 1,797
Fees (503)
Endowment income and interest receivable 260
Other operating income: Value Added Tax refund 2,500
Research Grant overheads 575
4,734
4,734
(Increase)/Decrease in expenditure
Stipends and Wages: lower level of vacancies (600)
lower cost of 1998 pay settlement 150
Unspent balances on central reserves returned to Chest 77
(Increase)/Decrease in Allocations
Minor Works Fund (2,000)
Buildings Maintenance Fund: General income (500)
HEFCE Grant (1,797)
Equipment and Furniture (105)
Estimated balances on General Board and Council's unallocated to be returned to Chest on 31 July 1998 400
(4,375)
Excess of income over expenditure 359
Estimated (deficit) per Allocations Report (251)
Surplus now estimated £108

APPENDIX 3 ESTIMATE OF TOTAL INCOME AND EXPENDITURE 1998/99

Consult paper edition of Reporter (p. 695) for this appendix

TABLE 1 : INCOME & EXPENDITURE ACCOUNT

Revised Estimate 1997-98 Estimate 1998-99 Estimate 1999-2000 Estimate 2000-2001
Revised
Chest		 Revised
Other		 Revised
Total		 Chest Other Total Chest Other Total Chest Other Total
£000's £000's £000's £000's £000's £000's £000's £000's £000's £000's £000's £000's
INCOME
GRANTS FROM THE FUNDING COUNCIL (Note 1) 84,214 398 84,612 88,912 398 89,310 90,285 404 90,689 91,617 410 92,027
TEACHER TRAINING AGENCY 1,605 0 1,605 1,494 0 1,494 1,532 0 1,532 1,570 0 1,570
ACADEMIC FEES AND SUPPORT GRANTS (Note 2) 34,600 6,224 40,824 33,890 6,411 40,301 34,761 6,576 41,337 35,630 6,740 42,370
ENDOWMENT INCOME AND INTEREST RECEIVABLE (Note 3) 7,120 23,605 30,725 7,380 24,313 31,693 7,570 24,938 32,508 7,759 25,561 33,320
RESIDENCES AND CATERING OPERATIONS 0 3,053 3,053 0 3,145 3,145 0 3,226 3,226 0 3,307 3,307
OTHER OPERATING INCOME 8,000 9,792 17,792 5,800 10,086 15,886 5,949 10,345 16,294 6,098 10,604 16,702
RESEARCH GRANTS AND CONTRACTS 7,475 93,734 101,209 7,790 98,205 105,995 8,146 102,693 110,839 8,513 107,314 115,827
OTHER SERVICES RENDERED 0 9,019 9,019 0 9,290 9,290 0 9,529 9,529 0 9,767 9,767
TOTAL INCOME 143,014 145,825 288,839 145,266 151,848 297,114 148,243 157,711 305,954 151,187 163,703 314,890
EXPENDITURE
ACADEMIC DEPARTMENTS (Note 4) 70,704 31,570 102,274 72,338 32,832 105,170 73,290 33,676 106,966 75,422 34,518 109,940
ACADEMIC SERVICES 14,861 3,702 18,563 15,160 3,851 19,011 15,905 3,950 19,855 16,403 4,049 20,452
GENERAL EDUCATIONAL EXPENDITURE 4,218 2,905 7,123 4,837 3,021 7,858 4,961 3,099 8,060 5,085 3,176 8,261
MAINTENANCE OF PREMISES 22,401 984 23,385 21,747 1,023 22,770 22,306 1,049 23,355 22,864 1,075 23,939
ADMINISTRATION AND CENTRAL SERVICES 10,066 248 10,314 10,701 258 10,959 10,976 265 11,241 11,250 272 11,522
STUDENT AND STAFF FACILITIES AND AMENITIES 1,691 565 2,256 1,596 587 2,183 1,637 602 2,239 1,678 617 2,295
RESIDENCES AND CATERING OPERATIONS 630 2,762 3,392 622 2,873 3,495 638 2,947 3,585 654 3,021 3,675
SEVERANCE COSTS AND UNFUNDED PENSIONS 507 83 590 399 86 485 409 88 497 419 90 509
EQUIPMENT AND FURNITURE 6,613 2,867 9,480 6,522 2,982 9,504 6,690 3,059 9,749 6,857 3,135 9,992
ALLOCATIONS FOR CAPITAL EXPENDITURE (Note 5) 6,120 617 6,737 2,100 642 2,742 2,153 658 2,811 2,207 674 2,881
MISCELLANEOUS EXPENDITURE 2,927 232 3,159 2,992 241 3,233 3,069 247 3,316 3,146 253 3,399
STRATEGIC PLANNING RESERVE 1,000 0 1,000 1,000 0 1,000 1,026 0 1,026 1,052 0 1,052
RESEARCH GRANTS AND CONTRACTS (Note 6) 0 88,959 88,959 0 93,200 93,200 0 97,459 97,459 0 101,845 101,845
OTHER SERVICES RENDERED 0 8,398 8,398 0 8,734 8,734 0 8,958 8,958 0 9,182 9,182
PROVISION FOR PAY AND PRICE INCREASES 950 0 950 4,000 0 4,000 4,103 0 4,103 4,206 0 4,206
PROVISION FOR SALARY RESTRUCTURING 1,000 0 1,000 2,800 0 2,800 3,800 0 3,800 4,800 0 4,800
PROVISION FOR NEW RECURRENT NEEDS 1,020 0 1,020 1,420 0 1,420 400 0 400 410 0 410
PROVISION FOR NON-RECURRENT EXPENDITURE 1,275 0 1,275 1,495 0 1,495 1,195 0 1,195 1,225 0 1,225
145,983 143,892 289,875 149,729 *150,330 300,059 152,558 156,057 308,615 157,678 161,907 319,585
LESS ESTIMATED SAVINGS ON STIPENDS AND WAGES (3,000) 0 (3,000) (3,650) 0 (3,650) (3,744) 0 (3,744) (3,840) 0 (3,840)
TOTAL EXPENDITURE 142,983 143,892 286,875 146,079 150,330 296,409 148,814 156,057 304,871 153,838 161,907 315,745
SURPLUS/(DEFICIT) 31 1,933 1,964 (813) 1,518 705 (571) 1,654 1,083 (2,651) 1,796 (855)
TRANSFERS FROM/(TO) RESERVES 77 (1,933) (1,856) 0 (1,518) (1,518) 0 (1,654) (1,654) 0 (1,796) (1,796)
SURPLUS/(DEFICIT) AFTER TRANSFERS 108 0 108 (813) 0 (813) (571) 0 (571) (2,651) 0 (2,651)
BALANCE ON QEF 8,746 0 8,746 7,933 0 7,933 7,362 0 7,362 4,711 0 4,711
 
NOTES ON THE INCOME AND EXPENDITURE ACCOUNT
Note 1 GRANTS FROM THE FUNDING COUNCIL
(a) Recurrent grant: Teaching 40,362 0 40,362 40,533 0 40,533 41,159 0 41,159 41,766 0 41,766
(a) Recurrent grant: Research 49,779 0 49,779 56,542 0 56,542 57,415 0 57,415 58,262 0 58,262
(b) Non-consolidated Core Funds 577 0 577 0 0 0 0 0 0 0 0 0
(c) Special Factors/Non Formula Funding (8,477) 0 (8,477) (8,264) 0 (8,264) (8,392) 0 (8,392) (8,515) 0 (8,515)
(d) Special Initiatives 1,973 398 2,371 101 398 499 103 404 507 104 410 514
(e) Capital grants 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL 84,214 398 84,612 88,912 398 89,310 90,285 404 90,689 91,617 410 92,027
Note 2 ACADEMIC FEES AND SUPPORT GRANTS
(a) Full-time Home and EC Students 18,500 215 18,715 16,720 221 16,941 17,150 227 17,377 17,579 233 17,812
(b) Full-time Overseas Students 15,200 659 15,859 16,220 679 16,899 16,637 696 17,333 17,053 714 17,767
(c) Other Fees and Support Grants 900 5,350 6,250 950 5,511 6,461 974 5,653 6,627 998 5,793 6,791
TOTAL 34,600 6,224 40,824 33,890 6,411 40,301 34,761 6,576 41,337 35,630 6,740 42,370
Note 3 ENDOWMENT INCOME AND INTEREST RECEIVABLE
(a) Trust Funds 20 10,002 10,022 20 10,302 10,322 21 10,567 10,588 22 10,831 10,853
(b) Special Funds 100 11,363 11,463 110 11,704 11,814 113 12,005 12,118 115 12,306 12,421
(c) General Endowments 5,000 0 5,000 5,150 0 5,150 5,282 0 5,282 5,414 0 5,414
(d) Other Funds and Reserves 2,000 2,240 4,240 2,100 2,307 4,407 2,154 2,366 4,520 2,208 2,424 4,632
TOTAL 7,120 23,605 30,725 7,380 24,313 31,693 7,570 24,938 32,508 7,759 25,561 33,320
Note 4 ACADEMIC DEPARTMENTS EXPENDITURE
(a) School of the Arts and Humanities 9,782 1,514 11,296 9,909 1,575 11,484 10,039 1,615 11,654 10,331 1,656 11,987
(b) School of the Humanities and Social Sciences 12,782 2,950 15,732 12,936 3,068 16,004 13,106 3,147 16,253 13,488 3,226 16,714
(c) School of the Physical Sciences 16,486 5,923 22,409 16,691 6,159 22,850 16,911 6,318 23,229 17,403 6,475 23,878
(d) School of Technology 10,200 2,488 12,688 10,327 2,588 12,915 10,463 2,655 13,118 10,768 2,721 13,489
(e) School of the Biological Sciences 15,296 5,279 20,575 15,494 5,490 20,984 15,698 5,631 21,329 16,153 5,772 21,925
(f) School of Clinical Medicine 4,429 9,227 13,656 5,228 9,595 14,823 5,297 9,842 15,139 5,451 10,088 15,539
(g) Other Academic Institutions 1,729 4,189 5,918 1,753 4,357 6,110 1,776 4,468 6,244 1,828 4,580 6,408
TOTAL 70,704 31,570 102,274 72,338 32,832 105,170 73,290 33,676 106,966 75,422 34,518 109,940
Note 5 ALLOCATIONS FOR CAPITAL EXPENDITURE
(a) Minor Works Fund 5,000 0 5,000 2,000 0 2,000 2,050 0 2,050 2,101 0 2,101
(b) New Buildings Sinking Fund 1,000 0 1,000 0 0 0 0 0 0 0 0 0
(c) Planning Consultancy and Feasibility Studies 120 0 120 100 0 100 103 0 103 106 0 106
(d) Other 0 617 617 0 642 642 0 658 658 0 674 674
TOTAL 6,120 617 6,737 2,100 642 2,742 2,153 658 2,811 2,207 674 2,881
Note 6 RESEARCH GRANTS AND CONTRACTS
(a) Salaries and Wages 0 54,171 54,171 0 58,050 58,050 0 60,702 60,702 0 63,434 63,434
(b) Equipment 11,463 11,463 0 10,890 10,890 0 11,388 11,388 0 11,901 11,901 0
(c) Other 0 23,325 23,325 0 24,260 24,260 0 25,369 25,369 0 26,510 26,510
TOTAL 0 88,959 88,959 0 93,200 93,200 0 97,459 97,459 0 101,845 101,845
* Recommendation II (a) of the Report 50,474
Recommendation II (b) of the Report 99,255
149,729
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Cambridge University Reporter, 28 May 1998
Copyright © 1998 The Chancellor, Masters and Scholars of the University of Cambridge.