financially sustainable universities – diversifying income streams
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Financially sustainable Universities – Diversifying Income Streams. Thomas Estermann Head of Unit Governance, Autonomy & Funding Financing the Students’ Future (FINST) Consultation Seminar Liverpool, United Kingdom 25 November 2011. Profile of EUA. Established in 2001 - PowerPoint PPT PresentationTRANSCRIPT
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Financially sustainable Universities – Diversifying Income Streams
Thomas EstermannHead of Unit
Governance, Autonomy & Funding
Financing the Students’ Future (FINST) Consultation Seminar
Liverpool, United Kingdom25 November 2011
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Profile of EUAEstablished in 2001Non-governmental membership organisation 850 individual university members35 National Rectors’ Conferences Members46 countriesIndependent voice for the university sector
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Financial Sustainability
Identifying costs of all
activities and projects
-“Towards full costing..”
- EUIMA - Full Costing
Diversification of income streams
- “EUDIS”
Sufficient and sustainable
public funding
- Monitoring of the crisis
UniversitiesFunders
Public authorities
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State of playOn average, almost ¾ of universities’ funding comes from public funding sources
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Additional income sources• diverse opportunities – some generate up to 25%
Contracts with the private sector
• Importance of competitive funding from foundationsPhilantropic funding
• Renting of facilities, catering, conferencing services, consultancy, merchandisingServices
• Treasury management (strategic investments)Financial management
• Framework programmes, Structural Funds, LLLEuropean Funding
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Funding challenge 1:
Complex financial management
Some universities have more than a 100 funding sources! Different accountability regimes – high costs of compliance!
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Funding challenge 2: Increasing co-funding
Do not cover the full costs of an activity Widens the FUNDING GAP
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Funding challenge 3:European funding schemes: co-funding and
complexity
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Impact of the economic crisis on higher education in Europe
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How to improve the situation and foster diversification?
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What can authorities do?Implement smart funding incentives: Matched funding schemes: instrument with much potential, under-
used in Europe
Improve funding modalities: Simplification of funding schemes Funding on a full cost basis
Support the development of full costing in universities
Improve framework conditions – autonomy and governance reformsSupport leadership development and professionalisation of management
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What can universities do?1. Integrate income diversification in the overall
strategy2. Identify the strengths & specificities of the
university to develop a branding strategy 3. Analyse perspectives for income generation of
your activities4. Invest in people, leadership and management5. Communicate (internally and externally)6. Change structures and organisation 7. Provide internal incentives
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Efficiency measuresInternal: Restructuring of academic units Centralising services Outsourcing services
Cooperation Sharing services, equipment, facilities Public private partnerships
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Some aspects to keep in mind
1. Additional funding cannot replace sufficient public funding
2. To foster diversification, upfront investments are necessary
3. All actors need to work together!