05 Feb 10

The colleges have published their financial statements for the year ended 31 July 2009.  

Overall, the colleges have reported a small surplus at the operating level, and a 7% fall in endowments. This is a lesser decline than that experienced by many of their North American peers, but of concern nevertheless given potential cuts in public funding for higher education.

Although colleges receive, via the University, some public funding to support their teaching and research activities, this covers less than half of the cost. The shortfall is funded from the colleges’ own resources, principally the return on endowments, fundraising income and surpluses on conference activities.

In aggregate, the colleges returned a surplus for the year of £6m on total income of £281m. Publicly funded tuition and research income fell by 0.7%. However, overall, academic income rose by 7.8%, boosted by growth in fees from overseas students. Staff costs, which account for half of total expenditure, rose by 8.1%, reflecting above-inflation national pay awards for academic staff and higher pension contribution rates.

Endowment transfers to fund core activities were £90m. This compares with fees, tuition income and research grants for the period of £69m. The total return on endowment assets was -5.6% in a 12-month period which saw the FTSE 100 fall by 15%. Colleges also received £53m in new endowments.  At year-end, total endowments amounted to £2.38bn, 7% lower than at the start of the year.

Donations grew strongly. In addition to the £53m contribution to endowments, colleges received £18m in income gifts and £8m in capital gifts. Conference profits contributed an estimated £10m.