- This Statement on Value for Money for Students (Statement) is designed to show clearly how the University’s resources and income are used and the steps taken to ensure that Northeastern University – London (the University) delivers value for money. This Statement sets out how money is spent and used to ensure that student experiences are as beneficial as possible, both immediately and throughout their lives.
- The benefits of gaining a degree are numerous both in terms of future career prospects, but also in terms of a student’s personal development and the wider contribution they can make to society. Considering these lifetime advantages, the value for money of study for a degree in the UK is clear.
- This Statement has been submitted to the Office for Students (OfS) and is available to all current and prospective students.
Background to Resourcing and Delivering Value for Money
- The founding concept of the University is to provide a world-class education establishment and this conception is articulated in the University’s mission:
‘Northeastern University London is where the power of learning and discovery through limitless global connections are unleashed. This will be manifested by building on the institution’s current foundations to build differentiation in the UK market, to be a laboratory for global innovation and to become the European hub for the Northeastern network.’
- Since its inception, the University has followed a strategy to deliver the vision articulated by Professor Grayling. This approach is made up of a three-phased staged approach.
- The first phase established the University through its foundation and as it started to teach. It saw the creation of a high-quality educational institution from nothing which educated students who were then able to pursue meaningful career choices. This required significant investment by a core group of shareholders.
- The second phase focuses on the University achieving self-sustainability. This phase includes the growth of student numbers and attainment of taught degree awarding powers. This growth goes hand in hand with retaining the current student learning opportunities as well as the teaching and learning culture that delivers a high-quality experience, which translates into excellent National Student Survey scores.
- The third phase is building on the first two stages with the further expansion of students and resources to teach them and the ability to replicate and adapt the University’s approach to student learning to deliver a self-sustaining financial picture.
- The University is owned by a well-established American university, Northeastern University (NU). NU’s wealth of experience and the alignment to the University’s mission will enable the University to further develop its vision.
The University’s Approach to Delivering Value for Money
- The University has been focused since its inception on the student experience and the benefits derived from that for its students.
- The approach of the University is to achieve its mission through the appropriate use of resources, which are directed towards teaching and learning costs.
- The location of the University in Central London means that, where possible, it looks to source resources on a cost-to-use basis rather than an investment basis. For example, in relation to library services, the University has an arrangement with City of London Corporation for its staff and students to gain access to their resources.
- The process to allocate the University’s resources is set out in the Resource Allocation Policy and how that allocation is then managed/governed is set out in the Financial Management Strategy.
- The University regularly seeks students’ views on this Statement as part of its student feedback processes.
How Resources and Income are Used
- The figures below relate to the financial year 2021-22.
- The resources of the University are made up of a combination of fees paid by students either directly or via the Student Loans Company and by NU. These resources added up to approximately £21.85m.
- These resources were then used in the following ways to deliver the University’s excellent student learning experience.
- The overall delivery costs were £12.4m
- Academic costs of University degrees and the Diploma Program (including salaries of academic staff and student and academic support teams): £12.4m
- The other major areas of cost added up to £9.42m
- Direct student financial support and widening participation investment (scholarships, bursaries, etc.): £0.2m
- Marketing and recruitment costs: £1.83m – this is currently high while the University makes prospective students aware of its excellent degrees and student experience and to build its reputation in the marketplace and with potential employers.
- Building costs: £5.48m
- Other operating costs: £1.96m
|Academic – salary costs||£6.4m||29%|
|Academic – non salary costs||£6.02m||28%|
|Student Financial Support||£0.2m||1%|
|Marketing and Recruitment||£1.83m||8%|
Remuneration of Staff
- Northeastern London Board is responsible for the setting of budgets and delegates the responsibility to executing the budgets to the Executive Committee (ExCo).
- Northeastern London Board is focused on delivering value for money for students and balances that need to ensure costs are controlled against the imperative of securing staff with the necessary skills to maintain the University’s excellent student experience. Following the Committee of University Chairs Higher Education Code of Governance, the University has remuneration committees to consider and determine staff remuneration. The University’s Terms of Reference – Remuneration Committee outlines the membership, roles and responsibilities of the remuneration committees. The Governance Structure diagram demonstrates that the University has two remuneration committees:
- Remuneration Committee (ExCo) the committee’s membership is made up of members of the Northeastern London Board who are not employees of the University.
- Remuneration Committee (Staff) – the committee’s membership is made up of all members of Executive Committee, the Director of Finance, and a representative of Human Resources.
- The Remuneration Committees refer to internal and/or external benchmarks or systems to inform the setting of remunerations, benefits and performance pay. The Committees are also able to obtain external advice when necessary.
- As part of this exercise, the University monitors the multiple of the highest paid member of staff’s basic salary divided by the median basic salary of all the permanent members of staff. This is an exercise recommended by the Committee of University Chairs’ code of remuneration. For the University, this is a multiple of 5.3, which compares favourably to the sector average of between 6 and 8 times.
- The University community will be notified of any fundamental changes to this Statement and we will update it on a yearly basis.
What Can I do If I Have a Question?
- If you have any questions or concerns about the contents of this document, you can raise them either by email or in person with the Chief Executive Officer.
- If you believe that they have tried to answer your question or concern honestly or fully but not to your satisfaction, you can raise the issue with the Office of the Independent Adjudicator once you have exhausted the University’s Complaints Procedure for Students.
|Title: Statement on Value for Money for Students
Approved by: Northeastern London Board
Location: Academic Handbook
|Version Number||Date Approved||Date Published||Owner||Proposed Next Review Date|
|23.5.0||July 2023||July 2023||Chief Executive Officer||June 2024|
|Version numbering system revised March 2023|
|4.0||October 2022||December 2022||Chief Executive Officer||October 2023|
|3.1||October 2021||–||CEO||October 2022|
|3.0||April 2020||April 2020||CEO||April 2021|
|2.0||February 2019||February 2019||COO||February 2020|
|1.0||April 2018||April 2018||COO||April 2019|
|Referenced documents||Governance Structure Terms of Reference; Governance Structure Diagram; Complaints Procedure for Students|
|External Reference Point(s)||Committee for University Chairs HE Code of Governance; OfS information on senior staff renumeration data 2019/20 (https://www.officeforstudents.org.uk/advice-and-guidance/regulation/senior-staff-pay/); Office of the Independent Adjudicator|