Halls of Residence Budget Process

The Halls of Residence fees (residential and administration fees) received from residents represents the primary source of income for the Halls of Residence. Additional income is generated by the Campus Conference Unit from conferences, casual accommodation and function catering.

All of the Halls of Residence budget income line items are listed below:
Student Residential fee
Application & Reapplication fee
Activities fees (includes Resclub & UQ Sport)
PO Box rental
Registration fee
Building Development
Conference Unit
Residential Schools
Sundry Income

 

Below is a chart summarising the Halls of Residence Budget Income for 2017:

 

As can be seen 87% of the Halls of Residence income is represented by fees paid by residents.

As income from residents represents the Halls of Residence primary source of income, expenditure on resident related functions is also the primary source of expenditure for the Halls of Residence.

Listed below are the budget expenditure line items for the Halls of Residence:

Student Catering Cleaning
Conference Unit Maintenance
Electricity Office Expenses
Employees Post Office Boxes
Halls Furnishings Res Club Membership (includes O'Week)
Financial Charges                     Scholarships
UQ Sport Travel

 

Below is a chart summarising the Halls of Residence Budget Expenditure for 2017:

As can be seen 81% of the Halls of Residence expenditure is represented by wages (Halls staff, Residential staff and tutorials), catering and service level agreements (maintenance and cleaning of the Halls).

The budget process for setting the Halls of Residence fees, is to firstly determine or forecast what each expenditure line item amount will be. Most small expenditure line items are easy to determine and control. Whereas the major expenditure line items of catering, wages and service level agreements are determine by market forces and are harder to control.

Wages (Halls staff, Residential staff and tutorials) and service level agreements increases are set by The University of Queensland and agreed with the Industrial Relations Tribunal. Catering increases are determined by food costs and hospitality staff wage increases.

The Halls then complete the budget for each line item, limiting expenditure items where it can, and accepting those that it cannot control (the major expenditure items representing 81% of all expenditure).

This then provides the Halls of Residence budget forecast expenditure.

The Halls of Residence in order to achieve a budget surplus (not being funded from The University of Queensland) must increase its budget income by an amount necessary to offset expenditure and provide a small operating surplus.

The increase in Halls of Residence budget income is generated from residential fees. The Halls of Residence restricts the increase in residential fees to the extent that the Halls only budgets a minimal surplus of less than 3% per annum.

To achieve the Halls of Residence budget surplus for 2017, the Halls of Residence introduced a small increase in residential fees for 2017.