A survey of 48 finance directors (FDs) of higher-education institutions (HEI), representing 37% of the sector, has revealed that 36% of them feel less positive about the financial prospects of their institutions compared with the previous year, whereas 23% are more optimistic. Asked to describe their “general level of external or financial economic uncertainty,” 89% stated it was above the normal level or higher. Their HEI’s level of financial risk was viewed as unchanged from last year by 57%, to have increased by 33% and to have decreased by 15%. Asked if it was a good time to take on greater financial risk, 43% said yes. A top priority is improving infrastructure by increasing capital spending. Eighty-three percent of respondents expect capital spending to increase over the next year, with 61% and 18% indicating that it will be used over the next 10 years for teaching facilities and research facilities, respectively.

Source: Deloitte