The University of Manchester received £829,000 from BAe Systems plc in the 2023-24 financial year, as shown in the University’s financial statements released on December 2.
The 2023-24 financial statement outlines that between August 1 2023 and July 31 2024, the University of Manchester registered £829,000 as “income recognised within the financial statements” from BAe Systems plc.
As of July 31 2024, a remaining £167,000 “balance due to the University recognised within the financial statement” was recorded.
According to a University spokesperson, “balance due” is in reference to income that has yet to be received by the University as of 31 July 2024.
In the 2022/23 financial statement £822,000 was outlined as “income recognised” from BAe whilst £187,000 was considered “balance due”.
Additionally a FOI from November 2024 states that as of July 31 the University held £124,512 (market value) worth of shares in BAE Systems.
The report also discloses that “One member of the senior leadership team is a member of the University of Manchester Framework Partnership board member [sic]”, in the section discussing BAe systems.
An FOI from the University of Manchester sent in April 2024 declares that no such board exists that is responsible for conducting the partnership between the University and BAe systems.
When asked for clarification, a University spokesperson clarified that there is no “formal board” but a “steering group” where representatives from BAe systems and an (unnamed) ambassador for the University of Manchester attend meetings.
Described as a provider of “some of the world’s most advanced, technology-led defence, aerospace and security solutions” working with partners to “deliver military capability, protect national security, and keep critical information and infrastructure secure”.
BAe Systems plc originally partnered with The University of Manchester in 2017. This partnership was characterised as a chance to build a “long-term relationship in research, education and consultancy”.
At the original signing ceremony in 2017, Professor Martin Schröder (Vice-President and Dean of the Faculty of Science and Engineering) asserted “We are therefore delighted to sign this framework agreement with BAe Systems which will ensure our relationship will grow even stronger in the future and we look forward to working with BAe Systems on exciting research and education innovations”.
The University made a 1.5% increase on the previous year’s income, reaching a total annual income of £1.4 billion.
This includes a £42 million surplus, a £65 million decrease from last year.
Increased income was attributed to “An increase in international tuition fees of £53.9 million” as well as an increase in interest on various deposits.
Various avenues make up the University’s income with 5% (£67 million) being brought in from “Residential and catering operations”.
These operations cost the University £59 million, revealing an £8 million profit made from these operations.
The report gives a breakdown of “Income from tuition fees” which during the 2023-2024 year “increased by £54.4m or 8.2%”.
Tuition fees make up 52% of the total income (£714 million) with 37% coming from domestic student fees and 63% (53.9 million increase from last year) from international fees.
These numbers are a significant departure from the 2022-23 report that saw 42% of the tuition fee income from UK students and 58% international fees.
When it comes to expenditure, £526 million was spent on academic departments (a £29 million increase on last year).
Other costs include running the University’s estate (£201 million) and research costs (£213 million).
Staff costs made up the largest proportion of spending (52% of total expenditure) at £692 million. Per month this equates to £58 million.
Increased spending is attributed to a rise in pension costs as well as increased numbers of staff.
One of the outlined costs was a £3.3 million “investment” into the Fallowfield Campus Redevelopment which intends to increase the amount (up to 3,300 bedspaces) and quality of student accommodation.
The full report can be read online.
