University Cash Flow: Transaction Timeline
University Cash Flow Events
A timeline of discrete financial events. The top chart tracks the resulting cash reserves. The bottom chart visualises individual transactions: income (positive spikes) and expenditure (negative spikes).
Inflows: Receipt Periodicity
Home Tuition Fees
Periodicity: Tranches in Oct (25%), Feb (25%), May (50%).
These dates are dictated by the Student Loans Company (SLC). The massive 50% tranche in May is critical; it is the "harvest" that must sustain the university through the long, income-dry summer months until October.
International Fees
Periodicity: Seasonal spikes (Sept/Oct & Jan).
Unlike Home fees, these are paid directly by students. They cluster around the start of the academic year and the January intake. This income is highly volatile, dependent on visa issuance speeds and global banking transfers.
Research Income
Periodicity: Quarterly (Block Grant) & Irregular (Projects).
The "Quality Related" (QR) block grant arrives reliably every quarter (Aug, Nov, Feb, May). However, specific project grants (e.g., from UKRI or charities) arrive irregularly, creating unpredictable cash injections.
Outflows: Payment Periodicity
Staff Payroll
Periodicity: Monthly (Fixed Date, e.g., 28th).
This is the single largest and most rigid outflow. It represents academic and professional staff salaries, taxes, and pensions. Unlike commercial businesses that might reduce labour costs during quiet periods, university payroll remains constant year-round.
Operational Costs
Periodicity: Bi-weekly Batch Runs.
Universities typically process supplier invoices in "payment runs" (e.g., mid-month and end-month) to maintain efficiency. This covers utilities, security, cleaning, and software licensing. Note the spike in late winter due to higher heating costs.
Accommodation
Periodicity: Termly (Start of Terms).
While technically income, this is often ring-fenced to service the debt on the buildings. The inflows coincide with student loan drops, as students use their maintenance loans to pay rent immediately.