International History
Q: Regarding Part time teaching aka Dept additional expenditure on CSB: Will the budget cut be based on what was spent last year or on what your initial budget was?
A: Depends on student recruitment but expect to spend less than last year. Ioannis has now sent proposed budgets around to departments. If they create significant problems, please speak to your FP&A manager.
South East Asia Centre
Q: Is there a way of remotely accessing Statements5 for historical financial records. As far as I’m aware these reports are only accessible on campus PCs (and nothing prior to 18/19 has been copied over to One Finance yet) so it would be really helpful if there’s a way we can access the data from home.
A: This is available via LSE desktop.
US Centre
Q: Different Centre’s are on different funding models, but my understanding is most don’t get money centrally from the School. How should Centre’s interpret this request?
A: If it’s entirely external money, ok to spend but you need to consider carefully if there is discretion available in external funding as any requirement for School funds in future may not be forthcoming.
Marshall
Q: Is the directive to reduce non-pay budgets by 10% would apply to us?
A: If it’s entirely external money, ok to spend but you need to consider carefully if there is discretion available in external funding as any requirement for School funds in future may not be forthcoming.
Africa Centre
Q: We are concerned about not being able to carry forward our RIIF budget balance from this financial year. We have a significant budget this year that we haven’t been able to deploy given the lack of travel for research. However, given the projected outlook we will almost certainly need it for researcher contract extensions for next financial year. It would be great to have some clarity on what will be happening with Centre RIIF budgets for 20/21?
A: Interesting point, the hires will need to go to Simon Hix and you will need a good justification for him to approve.
Latin America Centre
Q: As we are a small Centre, two members of our team are going on maternity leave before the summer. We won’t be able to meet the Maternity costs without School support, but we haven’t received any confirmation that under the current circumstance we will still be able to recover those payments?
A: Current policy applies – no change in policy – maternity pay is a contractual right which the School will honour.
School of Public Policy
Q: We are aware of the need to cut non-pay spend in 2019/20 by 10% (presumably more if possible). Will FP&A managers be getting in touch to confirm revised budgets?
A: Yes, FP&A managers will be getting in touch.
Q: Not all colleagues are sufficiently confident with OneFinance to look this up or look up YTD expenditure.
A: Please ask your FP&A manager for help with using OneFinance.
Q: As not being on campus this will mean reduced spend anyway, so most departments will meet this by default. Does that matter?
A: No, of course not, but it does help.
Q: I have recently heard of the 10% in year saving (Andrew mentioned it on the call last week). I’ve have not heard this via my HOD, yet. Have HODs been told?
A: Yes, HOD’s have been informed.
Q: Will unspent balances from previous years (i.e. 2018/19 and before) be available in 2020/21?
A: We want to avoid this wherever possible, if there are specific problems created by this restriction please speak to FP&A in the first instance.
Q: Will unspent balances from the current year 2019/20 (except the 10% saving) be available in 2020/21?
A: These balances will be carried forwards to 2021 as usual, but then subject to the carry forward expenditure freeze for the moment.
Q: Will surpluses from exec degrees in 2019/20 be treated the same way as previous years (60/40 rule)?
A: Yes and where there is income deferred we will make adjustments based on estimated revenue, to ensure you don’t lose out. However, given the risk that income will be significantly down, you should hold off on any non-essential spending and prior year brought forward balances are frozen.
Q: Are we able to accrue at year end any funds that would normally have been spent in 2019/20 that will now take place in 2020/21 (exec degree modules that were supposed to happen in 2019/20 but which got postponed to 2020/21)The expenditure ought to be recognised in 19/20, even if the activity is in 2020/21 otherwise the 2019/20 figures will be distorted in both years?
A: Please see response above.
Methodology
Q: I think all we have so far about the 10% budget cut is this, from Minouche’s update:
‘Cut the total non-pay budget by 10%. Different parts of the organisation may face bigger cuts than others, as we continue to focus efforts on enhancing strategic priorities across education, research and operations to help us prepare for an uncertain future and the start of the next academic year’
A: All HOD’s have been advised, however should you have any queries, please do contact your FP&A manager.
Statistics
Q: Which types of department budgets does this apply to, e.g. department allocations, premium fee, special factor, SRF, etc.?
A: Although Premium fee allocations will be impacted by student number falls as well. Where costs can’t be reduced proportionately please refer to FP&A.
Q: Will individual SRF allocations for next year be reduced?
A: An announcement is due shortly.
Q: Are unspent balances on department budgets at the end of this financial year likely to revert to the School rather than being carried forward as they usually do (if so, which budgets)?
A: No, we are seeking to delay spending not take balances away, but please don’t rush to spend balances now.
Q: When our Finance Manager was chatting with our FP&A Manager last week, it was unclear whether we would be able to spend from our international programmes and summer school income because although we received it in 2019/20, it was earned the previous year. It would be a huge amount to lose from our spendable income. Can we get some clarification on that, please?
A: Please see above response.
International Relations
Q: Clarity on use of OSFs – is there a 10% reduction here (although some of us will lose a lot of that income anyway, with no summer school this year, so may have to do 100% cost reduction for some initiatives).
A: No, 10% applied to centrally allocated budgets but brought forward balances are frozen subject to significant issues – check with FP&A.
Q: Clarity on SRFs and Personal Outside Funds – what should we be advising faculty about on this? If we top up funds SRFs with Department funding, should we still be committing to this next year?
A: Ideally no or at least delay until October.
Q: What if we have made commitments to PhDs as to fieldwork/conference allowances – are we still committed to this, or are we expected to reduce this
A: We can honour commitments made.
Q: Carry forwards/brought forward balances – this links into a broader point of that poor reporting facility on OneFinance, which actually makes this more difficult than it used to be. More guidance/assistance from FP&A managers needed.
A: Please feell free to request help and raise it at your regular meeting with your FP&A manager.
Q: It isn’t so straightforward to just say reduce by 10% now – some things are committed and promised, and other things we are just not delivering so there is a much bigger reduction. Is the reality that we are just expected to be conscious about what we spending, and only approve what is committed to, as opposed to a blanket 10% cut. It seems the messaging has been aimed at Service Divisions, so hopefully Mike and Naomi can provide a bit more clarity for academic departments.
A: Appreciate this is difficult, academic department budgets are more complex because of local flexibility. We are looking for an overall cut of 10% in non-pay spend, so view your department as a whole and plan for that. Your FP&A manager would be pleased to take a look at your plan to confirm, if that is useful.
Management
Q: When will the GTA budget be allocated to Departments and what will that look like. Will we be able to appoint GTs independently of the approval process?
A: Now done. Separate discussions are now in progress with Management and Economics.
Q: Regarding 10% budget cuts etc, can we all be given clarity of what this will look like across all our budgets as soon as possilbe, so we can plan, plus will there be any changes to SRF allocations for 20/21?
A: SRF remain at historic levels. With regards the 10% cuts, please plan on a reduction in your School allocations of 10%. However, please be aware that these will also flex in line with your student numbers, as usual.