Balancing the budgetBy Sir Andrew Likierman
We have just reached the end of the School’s annual budgeting round and it will go to Management Board for approval in a few days’ time. The objective each year is for the operating budget (sales less costs) to balance.
As a not-for-profit organisation; we don’t look for a surplus and the Higher Education Funding Council requires that we don’t make a loss. Balancing the budget exactly is a challenge because there are many claims each year for extra resources. So choices have to be made between bids that can be accepted before the year starts. There is still an opportunity during the course of the year for additional bids as long as planned income is higher or expenditure is lower than budget. Fundraising does not affect the budget directly as most of it is for capital expenditure, scholarships or faculty chairs, none of which form part of the operating budget.
The School has a well-deserved reputation for high quality financial planning and control based on our record over many years. This reputation is important in making sure that those who contribute to the School are confident about our ability to manage our resources.