PracticeConsultingOxford given debt warning

Oxford given debt warning

Oxford University will be wallowing in #600m debt by the year 2015, according to a financial model from KPMG Consulting, writes Jonah Bloom.

The model commissioned by university chief Peter North predicts Oxford’s 1995/96 surplus of #76m will plummet to a deficit of #90m by 2005. By 2015 the deficit could hit #600m, although KPMG admitted the models’ accuracy decreases over time.

Based on the continuation of present trends, the consultants’ scenario shows a dramatic decline in spending on teaching over the next few years.

‘Teaching falls from 28% of activity to 16% in ten years, and by year 25 becomes a marginal activity at less than 6% of total expenditure,’ says the report.

Sponsored research appears to have an inverse relationship with teaching, its predicted share of expenditure rising to a total of 90% in 2015.

A spokesman for Oxford University said: ‘Scenario modelling is a useful tool for us. But at the end of the day it is just that. The results do, however, point out how the university finances might develop and the university is grappling with those issues.’

Michael Sibley, Oxford’s senior assistant registrar, commented: ‘This is simple modelling focusing on current trends. No one is for a minute suggesting that this is a forecast of our finances. The university is looking at money raising, but that has not been prompted by this report.

‘The problem the report highlights is common to a lot of universities,’ he continued. ‘Research councils and charities only meet a proportion of the cost of research contracts, so clearly the whole issue relates to the research.’

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer