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Budget Process is : Transparent/Performance Based/Integrated Planning

2007 ESTIMATES OF INCOME AND DISTRIBUTION Presentation to University Managers’ Group 16 November 2006. Budget Process is : Transparent/Performance Based/Integrated Planning Strategic Plan, OPP, Academic Profile, Admissions and Quota Policy Cycle of Planning and Accountability

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Budget Process is : Transparent/Performance Based/Integrated Planning

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  1. 2007 ESTIMATES OFINCOME AND DISTRIBUTION Presentation to University Managers’ Group 16 November 2006

  2. Budget Process is: • Transparent/Performance Based/Integrated Planning • Strategic Plan, OPP, Academic Profile, Admissions and Quota Policy • Cycle of Planning and Accountability • Income Estimates & Distribution, Bottom Up Budget Process

  3. Balanced Budget in 2007 • Income to increase by $59.5M or 11.6% • General Purpose income as % of total income declines from 52.9% in 2006 to 50.7% in 2007

  4. Directional Focus • Continue to provide core funding to all areas of the Budget • Continue to Support Priority areas such as:- • Increase $9.801M Core Fund for Faculties/Cent Admin + Library • Increase HDR Int Enrolments by add 20 SIRF Awards $0.400m • Increase Uni Postgrad Awards/Schols $1.526M (CRA)

  5. Increase Uni Facilities by $2.225M Compliance • Increase infrastructure by $1.M • Increase Student Experience by $0.7M • Increase Maintenance from $7.M in 2006 to $7.4M in 2007 • Financial Assistance of $1.M re Salary Supplementation

  6. INCOME INCREASE Additional $59.5m (11.6%) for 2007:-

  7. Additional Income Distribution

  8. Commonwealth Supported Places • 2007 Projected Student Load • UWA Load = 10,487 EFTSL • DEST Target Load = 10,466 EFTSL • Variance in % Load of 0.2 of 1% or 21 • Variance within DEST Limits

  9. International Students • Coursework Increase of 67 EFTSL or 3.7% • Higher Degree by Research Increase of 16 EFTSL or 7.9% • Average Price Increase of 3% - 5% • Estimated Increase in Income of $2.319M

  10. BUDGET REVIEW • Teaching Weights • Field of Education (FOE) Weights • Complete Review – Simplify + Reduce • Course type Weights • Removal of Domestic Fee Pay P/Grad Subsidy 0.25 • Removal of Honours Project Units Weight of 0.3 • Research Cost Discipline Weights • Removal of Mid Cost Band

  11. Salary Supplementation removed • Fee Distribution adjusted • Interest on Term Deposits • Items included in 2007 Estimates but not recurrently funded:- • 50% SIMS Project $0.743M (ex USF) • Undergrad Scholarships $0.701M (ex USF) • Items not included in 2007 Estimates • Funding to replace/update Uni-wide systems

  12. THE FUTURE • Continuing Cost Pressures • Ongoing Enterprise Bargaining Increases • Increasing Uni Facilities Costs (Energy/Building Maintenance/Minor Works/Compliance etc.) • Increasing Demands on Discretionary Funds + Reduction in 2007 Allocation

  13. Uncertainty In Investment/Equity Markets • Gross Earnings Rates Used in 2007 Budget re Investment Funds • Long Term Pool 7.96% • Short Term Pool 6.80%

  14. LTP Distribution Rate • For 2006 = 6.37% • For 2007 – Est 6.58% • Less than full indexation of DEST CGS Grant – Higher Education Index Factor of 2.0% vs CPI of approx 4%

  15. INCOME/DISTRIBUTIONS – 3 YEARS 2005 – 2007

  16. INVESTMENT INCOME (5 YEARS)

  17. BUDGET DISTRIBUTION

  18. RESERVES 2003-2005

  19. CHALLENGES • All areas to review their 2007 anticipated Expenditure Levels and Adjust downwards where applicable • Lower Growth patterns re International (Onshore) enrolments and dollars • Lower Investment Fund Returns caused by a Reduction in Contributor Balances (GP Funds)

  20. Less than Satisfactory Indexation Mechanism • GP Funds decreasing and SP Funds increasing as % of Total Funds • End of Additional 2.5% EFTSL Funding as at 31.12.2007 ie $6.225M • Reduction of Workplace Reform Grant of approx $1.065m as at 31.12.2007 (residual component)

  21. Inadequate Capital Works Funding • Likely Borrowing Programme in 07/08 • Items to be Mainstreamed into 2007 Estimates • SIMS Project 50% or $0.743M • UWA U/Grad Scholarships 50% or $0.701M • Items not currently Centrally Funded • Replacement of Uni-wide systems 16 November 2006

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