The Financial Operating Strategy

How finance works ... at the University of Sheffield

The University’s Financial Operating Strategy is agreed by Finance Committee. This strategy sets out the financial objectives for the University and the measures which will be used to ensure the objectives are met.

The overall financial objective of the University is:

To provide a robust, solvent and sustainable financial position that supports the University’s core activities and which facilitates the strategic planning, development and implementation of activities and decision making in all academic and support areas to achieve the University’s vision.

To help the University meet its objective, the University will operate to:

ensure that the University’s financial strategy targets are met
ensure that financial risks associated with all ongoing activities and new opportunities are managed in accordance with the University’s stated risk policy
ensure high standards of financial probity and accountability through robust financial processes and provision of professional financial services
increase the value and diversity of income from sustainable, unrestricted sources
ensure that the University is able to maintain and improve its facilities and infrastructure in order to sustain and increase its productive capability and its competitive position consistent with its corporate plan
ensure that the financial consequences of activities are fully evaluated and embedded within corporate and departmental level planning and decision making and that this is supported by relevant and timely financial information
ensure that the University achieves Value for Money in all its core and supporting activities

The University also has an agreed set of financial targets that it aims to achieve to ensure that it is operating on a financially sound basis:

Operating surplus of 3% of income	Each year the University aims to generate a surplus from its operating activities (before any profit from sale of assets and before taxation) of at least 3% of the income that it has generated in that year.
Current ratio of 1.28:1	At all times the University aims to have available cash or assets that can easily be converted into cash that in total are at least 1.2 times higher than the amount that the University owes to other organisations.
30 days liquidity	At all times the University aims to have available cash or assets that can easily be converted into cash (known as liquid assets) that are sufficient to cover expenditure for an average 30 days.

Need help or more information?

Who to contact
A Finance Manager supports Academic Departments or Professional Services Departments with queries relating to departmental expenditure and budgets for non-research activities.