Comment 024 May 1987

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King's College London (KQC) newsletter

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OVER THE HILL... In the second of a erie of three campus briefing, the Principal and the Finance Officer pelt out to Strand taff the full eriousne of the College' financial ituation. The dual purpo e of the meeting, held on 20 May in the ew Theatre, was to make a wide a ection of taff a po ible aware of the full fact and also to reinforce a ense of participation, both collective and individual, in the College' plan for financial tability. King' pre ent ituatJOn wa~ de 'cri bed by thl:. Prim:ipal a "very eriou .. , and whill' acknowledging that il reflected a natlonal problem, he pointed out that we were m dIffIculties in two pecific respect, FIrStly, an accumulated deficit has built up, brought by each of the three constituent ollege in the merger; econdly. academic activity i currently split over three ites whIch both cau e and exacerbate financial problems. The College is already acting on the 'econd powt, having raIsed the IS ue at the la l (ourt meeting and the Principal having made our case lO the Ice-Chancellor, Lord Flowers. Members of tafT WIll doublle also be aware of our success m obtaining governmental permission to purchase the lea e of Cornwall Hou 'e. The 'e positIve moves may well have a favourable effect. financially, in the long term, but that pro peet doe n't dimini h the need to make immediate avings, from I ugu, t, the beginl1lng of the new financial year.

On pril 29 the College ho ted the laun h of Irginia Gamba' book, The falklandsl Mah'inas War - A fodel for, orth-South Crisis Prel·ention. irginia Gamba i Director of the Strategic StudIes In titute in Bueno Aire and currently a VI it1l1g 31:.ademic 111 the Department of War Studie hil t this i her fifth book on the subJed, it i the fir t to be written in nglish.

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David Ball, the ollege Finance Officer, gave taft an overview of our iluation which encompas ed hi torical background, a review of resource allocation and indications for the future. The three pre-merger Colleges all suffered in the 1982 round of cuts, meaning that the corn bined College started its working life in debt de pite a merger enhancement grant. Until thi session, however, there had been room for some optimi m; the 1982 cuts had been coped with and the annual deficit had been reduced from £ I ,526,000 in that year to £65,000 in 1986. By this time, though multi-site operation was taking its toll, and thi ses ion both the new London resource allocation system and significant unfunded salary increases have served to reverse sharply the previous trend towards recovery. Only 3.5% was built in to this year's budget for salary inflation, set against actual ettlements of 24% (over three years) for academic and related staff,S. % for technician and a likely comparable award for clerical and related tafL This anomaly has obviou Iy led to a major escalation in deficit with the re ult that our cumulative deficit will be un ustainably large by the end of the current financial year. The prognosis for the future is not any brighter; our block recurrent grant for 19 7-8 announced by the University Court represents an increa e of only 1.7% (the base line of the 'safety net' the Court is operating) on the 1986-87 amount - a full 2% less than expected. So our totaJ available non-medical re ource of £32.6 million will be significantly overspent which in turn will add further to the cumulative deficit. We have also been given provisional figures by the Court for the years up to the 19 9/90 session which indicate the equivalent of a real cut of over 20% in the next three years in our block grant. The implication of such cuts are clearly horrendous, but the ollege will have critical problem of liquidity well in advance of their implementation. An overdrait iacility of £2 million has been arranged with our bankers which gives a 'breathing spa_c' but thi is at best a debt and i certainly not a solu tion. A part of a course of action to obviate such a cri is the ollege has put in train a resource allocation system which mirrors the University' . A t present the University formcontinued in ide, p.2

The launch, held in the Committee Room, wa introduced by Professor Lawrence Freedman Head of the Department of War Studies. Responding, Profe or Gamba emphasised the important nature of her work, which thi year has extra significance a it marks the fifth anniver ary of the commencement of the conflict. Approximately 30 people attended, reflecting a wide spectrum of interest; the media, academic institu tion , council, family and friend were all represented. Virginia Gam ba's work on the conflict has aroused much attention with articles in the Indepen dent and the Times Higher J::ducation Supplement, radio interviews and po sible involvement with an edition of Panorama. Copies of the book, published by UnwinHyman Ltd, are available from most good bookshops, priced it5.00 for hardback and £ .95 for paperback.

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Comment 024 May 1987 by King's College London - Issuu