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2022 Financial Statements Review of Performance
For the 2021/22 financial year, UCL is reporting an operating margin of £90.6m or 5.2% of total income. This is closely in line with the £92m forecast for the year, and reflects a continued focus on the management of our cost base combined with the release of additional in-year investment where opportunity allowed.
This additional investment included £5m in funding for extra teaching staff to accommodate an increased undergraduate intake, £2.5m to fund an associated expansion of student welfare support and the need for additional equipment, and an additional £3m to supplement strategic maintenance of the estate.
As with previous years, and in line with the principles underpinning our financial strategy, the cash generated by the 2021-22 operating margin will be wholly reinvested back into the University and used to sustain investment in our strategic priorities, including: infrastructure and the digital estate, supporting the University’s operations, enhancing the student experience and enabling delivery of UCL’s academic mission.
Comparison to 2020/21
The equivalent operating margin for the previous financial year was £128.3m or 8.0% of income. The impact of Covid was especially notable in the reported performance for that period however, during which operations were hampered by national lockdown, travel restrictions and disruption to the global supply chain.
As a result, costs were unable to be incurred as planned and this is reflected in the heightened operating margin achieved. The result also included a £30m gain of the value of UCL’s investment portfolio, reflecting a period of strong market recovery. For both reasons, the University did not expect to reproduce the same level of financial performance year-on-year, once normal operating conditions had returned.
Future Focus
The financial year for 2021-22 represented a more stable operating environment, and the operating margin achieved is an encouraging sign of UCL’s financial resilience, particularly as we enter another period of significant cost pressure brough about by steeply rising inflation.
Whilst £90.6m represents a small increase in absolute terms against the £86.8m achieved in the most recent ‘pre-pandemic’ financial year of 2018-19, it is a decrease in relative terms (5.2% of income as opposed to 6.0%). The University’s focus will need to remain on cost management therefore as a core element of its financial planning.
Current Annual Report and Financial Statements
Remuneration Reporting
In line with Higher Education’s framework of good governance - and specially the Senior Staff Remuneration Code as set by the Committee of University Chairs (CUC) – the 2021-22 annual report from UCL’s Remuneration and HR Strategy Committee (RHRSC) is available below. In addition to disclosures made within the annual financial statements, this document sets out the policy, process and the rationale for the setting of senior staff pay as well as a list of those post holders who have fallen within the remit of RHRSC during the year.
Archive of Annual Report and Financial Statements
UCL's Investment Portfolios as at 30th June 2022
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