Accounting for Teaching Income - University of Exeter · Census data - SITS Wastage Planning Forecast Variances between previously approved budget/forecast Monitor Once actual data

Accounting for

Teaching Income

College Accounting

27th January 2010

What we aim to cover -

Teaching Income (overview – not College specifics)

UG / PGT / PGR

T Grant

3 F’s and Exchanges

Budget monitoring How actual fees and T grant gets posted

Against actual postings

Teaching Business Plan

What do we use it for?

Calculating Teaching Income

Split into student type

Student FTE

Direct fees (non-standard fees)

Charges on Teaching Income

• PSC

•41% Home/EU UG

•20% International UG

•30% T-grant

•30% International PGT

•30% Home/EU PGT

•0% PGR fee income

•0% RDP (5% in 11/12, 10% 12/13, 15% 13/14)

•SDF

•10% on income excluding research

(therefore excludes PGR & RDP)

•IF Levy

•0% Excludes research income (1% in 11/12, 2% 12/13, 3% 13/14)

•Space

•Non-rechargeable space (NRS) rate per FTE £200 11/12

•Central Bursaries

•£495 per student FTE in 10/11 (£508 in 11/12)

TBP (COGNOS)

Updates

Census data - SITS

Wastage

Planning

Forecast

Variances between previously approved budget/forecast

Monitor

Once actual data posted – Census forecast can be compared to actual

Virements input from Forecast into APTOS

(Central Accounting Team)

T Grant

Home/EU UG and PGT Only (not NHS/TDA)

HEFCE methodology

Roughly FTE x base resource x weighting

Assumed (not actual) fee deducted.

Wastage adjustment (average for last 2 years)

Band A – x4.0 – Clinical Stages of Teaching PMCD

Band B – x1.7 – Laboratory Based Subjects Biosciences, Physics, Engineering, CSM

Band C – x1.3 – High Contact, Non Lab Based Psychology, Maths, Modern Languages

Band D – x1.0 – Low Contact Hours Humanities, Finance.

HEFCE T grant per FTE 2010/11

T grant base rate 3,951

Assumed fee 1,310 650 1,300 3,951

Band Weighting UG T grant UG Erasmus UG 3 F's PGT

A 4.0 14,494 15,154 3,836 11,853

B 1.7 5,407 6,067 3,836 2,766

C 1.3 3,826 4,486 3,836 1,185

D 1.0 2,641 3,301 3,836 -

All band C

Simple T-Grant Calculation

FT UG doing 30 credit French module

Base Resource £3,951

Factor: 30/120 x 1.3 0.325

Teaching Resource (0.325 x 3721) £1,284

Assumed Fee (30/120 x £1310) £ -328

Net T Grant (£1,284 - 328) £ 956

Undergraduates

•October intake data – does not include load or

Flexible combined honours (being reviewed)

•December census data – every student & every

module

•Dum0001 modules (FT less than 120 credits –

not including 3F’s, Erasmus or JYA)

•Combined honours

•Semester students FTE/2

•Term students FTE/3 = student doing 1 full term

FAS/FAW/FIPS

Students who generate income,

but are not taught by the University

FAS – “Full-time Abroad Study” – those studying at and

educational establishment abroad, usually but not always, on an

exchange.

FAW - “Full-time Abroad Working” – those working abroad.

FIP – “Full-time Industrial Placement” – those spending a year

working for an organisation abroad. The income associated with the student is

given to the College responsible for the

student during that year.

FAS

ERASMUS – earn a reduced fee + compensating T-grant

These are all paid by HEFCE rather than student

Non-Erasmus – pay lower fee + T-grant (no compensating increase)

FAWs & FIPs

Always count as 50% FTE at band C

Numbers always included in main year by year breakdown, this

ensures roll forward is correct. Then deducted and added back in

according to which of three types they are.

Incoming exchange

Students who do not generate income, but who are taught by the University

These are students who do not pay a fee to us nor are they eligible for T-grant funding, they come into the University on an exchange programme.

The principle adopted by the University here is the HEFCE one, which assumes that the University is teaching the incoming exchange student in place of the outgoing one. This notional resource is assigned to the student by the teaching load. The cost is charged against the income from the outgoing student.

Band B 10/11

Student type Fee T grant Total

Home/EU 3,290 5,407 8,697

Erasmus 650 6,067 6,717

FAS other 1,645 3,836 5,481

FAW 1,645 3,836 5,481

FIP 1,645 3,836 5,481

Erasmus in - student does not pay fee - purely re-allocation of money around University ie 0 affect at University level.

Erasmus In 1,310 5,407 6,717

Band C 10/11


Home/EU 3,290 3,826 7,116

Erasmus 650 4,486 5,136

FAS other 1,645 3,836 5,481

FAS/FAW/FIP - T-grant is Band C irrelevant of band of department

FAW 1,645 3,836 5,481

FIP 1,645 3,836 5,481

Erasmus In 1,310 3,826 5,136

Band D 10/11


Home/EU 3,290 2,641 5,931

Erasmus 650 3,301 3,951

FAS other 1,645 3,836 5,481

FAW 1,645 3,836 5,481

FIP 1,645 3,836 5,481

Erasmus In 1,310 2,641 3,951

Complicating Factors

Most exchange arrangements are not simple, these factors can affect the IDM outcome:

•The banding of the department

•The balance of the exchange arrangement

•The level of teaching load adjustment of the incoming students

•The banding of the modules that the incoming students take

•Whether the exchange arrangement is under the Erasmus scheme or not

All of these can have positive or negative effects.

Assuming both College's are Band D

College 1 College 2 Total

Year 2

30 students have College 1 as a home College - some

modules taken in College 2 FTE £ FTE £ FTE £

Teaching Load 27 106,677 3 11,853 30 118,530

Year 3 These 30 students go abroad 30 154,080 30 154,080

30 students come back in exchange:

Teaching Load (notional income) 27 106,677 3 11,853 30 118,530

Cost of Teaching (notional charge) (30) (118,530) (30) (118,530)

Net Income to College 27 142,227 3 11,853 30 154,080

Net impact to College 1 35,550

Students out are assumed non-ERASMUS and therefore income recieved is Band C

Assuming both College 1 is Band D and College 2 is Band C


Year 2



Teaching Load 27 106,677 3 15,408 30 122,085






Net impact to College 1 (6,525) BUT teaching 10 less students

Students out are assumed non-ERASMUS and therefore income recieved is Band C

University Schemes Certain exchange schemes are underwritten by the University.

This means that any difference between the resource for the outgoing

students and the cost of teaching the incoming students is borne centrally,

and not by a school.

These schemes can appear “unfair”, but this is because there are three

factors that are not obvious:

•The school sees the loss of income for its own students, but cannot easily

see the resource for the incoming students (because they are form part of

the teaching load adjustment, and are difficult to identify separately)

•There are costs to teaching exchange students in other schools - the

school is completely unaware of these

•There is often a net deficit on these exchange programmes, which the

school does not take.

Assuming both College 1 is Band B and College 2 is Band C

College 1 College 2 University

Year 2

30 students have College 1 as a home College -

some modules taken in College 2 FTE £ FTE £ FTE £

Teaching Load 27 181,359 3 15,408 - -

Year 3 These 30 students go abroad 30 154,080


Teaching Load (notional income) 20 130,982 10 53,928

Cost of Teaching (notional charge) (30) (184,910)

Net Income to College 20 130,982 10 53,928 - (30,830)

Net impact to College 1 (50,378)


Year 2



Teaching Load 27 181,359 3 15,408 30 196,767






Net impact to College 1 (81,207)

Postgraduate Taught •October intake data – does not include load

(being reviewed)

•December census data – every student &

every module

•Dum0001 modules (FT less than 180 credits

– but assessed on individual programme

basis)

•Assume all 1 year (FT)

Postgraduate Research

•Fees calculated on years 1-3 (FT) and 1-6 (PT)

•No fees or RDP calculated on further years due to

uncertainty of whether we will receive it.

•FTE calculates RDP for following year.

•Student allocated by supervisor – no load just home

•Register throughout year

Budget Monitoring

Actual invoices posted to central code

These are allocated to College based on Census data

“Mini” Census around April

Post periodically from February – July

Each posting into the ledger will have a student number

where appropriate

T grant posted once (February)

What next? Current Census entered into Cognos

Teaching Module available for planning

NEXT FORECAST (17/02/11)

Research

Staff Costs

Non-pay and other income

Training and procedure notes from the College Accounting Team can be

found at http://admin.exeter.ac.uk/finance/academic/college/training.shtml

http://admin.exeter.ac.uk/finance/academic/college/training.shtml

Handover process –

where are we now?

• College will have full responsibility for

Budget monitoring of all areas and

producing forecasts in line with time table

• FBP’s will meet with each College to

discuss where further support maybe

required to enable the above to be done

Documents

Accounting for Teaching Income - University of Exeter · Census data - SITS Wastage Planning Forecast Variances between previously approved budget/forecast Monitor Once actual data