The key financial objectives of the University are to provide the long-term resources to strengthen and further its pre-eminent position – nationally and internationally – as a place of outstanding learning, teaching, and research; and to enable it to provide additional support to its three core priorities of students, academic posts, and buildings.
The University of Oxford’s funding comes from five main sources.
1. The largest source – £522.9m, which accounts for 43% of total income* – is external research funding, from bodies such as research councils, charities, trusts, foundations, and industry. Oxford consistently has the highest external research income of any university in the UK.
2. 15% comes from government grants through the Higher Education Funding Council for England and the National College for Teaching and Leadership.
3. Other income includes annual transfers from Oxford University Press, income from the commercialisation of research, and philanthropic support (19%).
4. Academic fees, from both undergraduates and postgraduates (21%).
5. Investment income (2%).
*excluding exceptional income from the Research and Development Expenditure Credit and the Oxford University Press special transfer
University consolidated income and expenditure account 2014/15
Funding body grants
Academic fees and support grants
Research grants and contracts
Research and Development Expenditure Credit
Oxford University Press special transfer
Endowment and investment income
Donation of heritage assets (eg works of art, historical antiquities)
Other operating expenses
Interest and other finance costs
The colleges of Oxford University (apart from Kellogg and St Cross) are independent, self-governing and financially autonomous. In 2014-15, the total annual incoming resources (including donations for capital projects or endowment) of the 36 colleges amounted to £432m. Teaching, research and residential income accounts for 43% of incoming resources, while legacies and donations, towards both annual expenditure and endowment, account for around a quarter. Income is also derived from investments, and from trading activity such as vacation conferences.
Total resources expended amounted to about £360m in 2014/15. 86% of this expenditure was directly attributable to core activities, including teaching, research and residential services. The balance was split between the costs of fundraising, running trading activities such as conferences and tourism, and investment management costs.
The University has endowment assets of £834m. Individual colleges have their own endowment assets, which amount to more than £3.8bn.