Vice Chancellor’s Bulletin March 2002

This is the second in a series of bulletinsthrough which I aimto keep you informed about the changing external circumstances we, along with many other universities, are facing. In the first bulletin I discussed how budgets are becoming tighter and how national and local competition for studentshas increased. I explained that, rather than wait to see what happens or for increased government funding, we are taking our future into our own hands and are reshaping our profile and our financial position. (The first bulletin is available at )

Our immediate priority is to ensure that, in the current financial year and on an ongoing basis, we are able to balance our books by reducing our costs. At the same time we need to begin to put in place the process of changing the profile of our work and thereby to secure our future income.

Balancing the Budget

1.Half Year Budget Position

Our accounts for the first six months of the financial year indicate that Schools and Services will fulfil their commitment to keep expenditure within approved budgets. I am grateful for the hard work this represents. However, there is a remaining budget problem of approximately £250,000 which arises from a number of factors over which we have little or no control. For example, insurance premiums for the University have risen sharply, in line with national trends. We also have, for the first time, significant vacancies in our halls of residences and thus a loss in income. Whilst we are doing all we can to fill the places, we have no option but to plan to meet the budget deficit. The University’s overall budget has to balance at the end of the year. Executive is working with your Deans and Directors to make the extra savings where we can.

2.Impact of Staffing Controls

In my first bulletin I explained that as part of the actions required to balance the 2001/02 budget we needed to introduce more rigorous control of new staffing appointments since the majority of our spending is on staff. These special arrangements were introduced in November, and during the past three months it is clear that they have helped to reduce the level of new staff appointments and make vital savings. As well as reducing our overall staffing costs, these controls are important as part of our planning to maintain job security and minimise the prospect of job losses.

3.Review of University Professional Services

Ken Sproston, the University Secretary, is leading this review on behalf of Executive. He has already held meetings with half of the senior management teams across the University and the remaining twelve meetings will take place over the next few weeks. The discussions are proving to be very constructive. The initial findings of the Review should be ready in early April. It will identify a range of efficiency improvements including more productive use of staff time, avoiding duplication, and opportunities to reduce our base operating costs.

Ken will be returning for a further series of meetings in the summer to feedback on the findings of the review and to outline an action plan. I will keep you informed of the progress of the review but if you have any comments or questions about it please email Ken at .

4.Recruitment 2002/03

The latest data from UCAS shows that applications to Staffordshire are down by about 19%. Almost all new Universities have suffered significant falls in applications against a small increase in total applications nationally. There appear to be a number of reasons for this. There has been a shift of applications towards old universities and there is uncertainty about student finance which is more significant to our client group than to some others. There is, on the other hand, very good news for some of our newer programmes such as Forensic Science. We know that competition for students will be strong again this year and a successful clearing campaign in the summer will be crucial to us. We will be focussing particularly on local students and others who may be postponing their decisions until later in the cycle. Our very successful widening participation policies support us in this work. We are all, in our various ways, involved in the recruitment and the equally important retention of students. All the feedback tells us that the staff care for students and potential students is one of our greatest strengths.

Changing our Profile

What I have described so far are the steps which we are taking to balance our budget for 2001/2 and to secure the budget for 2002/3. Meanwhile we are making good progress in developing the medium term strategies which I outlined in paragraph 3.2 of my first bulletin and which will reshape the University and build a new future for us.

1.Research

The result of the RAE was very good for the University. However, as you will be aware from the press, funding will go predominantly to the ‘research rich’ universities and we will almost certainly receive not more but less funding for our improved position, unfair as this is! The new research institutes have now been approved and plan to generate external income. Whilst research, scholarship and professional practice for all our academic and many of our professional staff is core to the University’s work, in the new national funding regime for research it is even more important that we use our limited resources for research and scholarship as effectively as possible.

2.Postgraduate Recruitment

We are currently heavily dependent on undergraduate recruitment and thus vulnerable to competition and fluctuations in the market. We need to diversify and we have set an ambitious target for growth in postgraduate student numbers over the next two years. Plans are being developed to enable the university to attract 500 more full time equivalent students by 2004. The first steps will be a new marketing campaign and a revised fee and bursary structure. This summer we will be launching an innovative module which will accredit prior learning at both Undergraduate and Postgraduate level. The ‘Make your Experience Count’ programme will enable us to attract many people who have not previously considered University learning at either level.

3. Curriculum and Awards Strategy

The strategy begins to set a new framework within which our programmes can meet the radically changing needs of students. It moves the emphasis away from traditional full-time undergraduate courses to more flexible ones that are accessible to a much wider range of students. There will be more emphasis on Professional Development and more customer focus as well as more opportunities for accreditation of prior learning and a greater use of work based learning. The plans for increased postgraduate numbers are integral to this strategy.

4.International Recruitment

The recruitment of international students brings us both cultural and financial benefits. In the short run we will be looking to maximise the number of international students coming to the University next year. We have appointed new agents and have updated the terms under which they work to give extra incentives for successful recruitment. We are also incentivising our collaborative partners to encourage them to route students who have already experienced Staffordshire University courses towards our UK based programmes. Some Schools are experimenting with semester two start dates to enable us to compete more effectively. We are also looking to improve our connections in continental Europe as a source of new students. We would expect to see considerably more fee paying international students at Staffordshire next year and in subsequent years.

We face a lot of challenges and these impact daily on all our working lives; life is becoming more competitive and the financial regime ever harder. We are, however, not sitting back passively. It will be tough to cut our costs and to reach new and different students and alternative sources of income but I have no doubt that the commitment, hard work and flair of our community will enable us to succeed. Thank you very much for the part you are playing. As ever, I will be very pleased to hear from you with your comments/ideas and I will keep you updated on our progress.

Christine

Professor Christine King

Vice Chancellor