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You are a newly-appointed Finance Manager of an Educational Institution that is mainly government-funded, having moved from a similar post in a service company in the private sector. The objective, or mission statement, of this Institution is shown in its publicity material as:

'To achieve recognised standards of excellence in the provision of teaching and research'.

The only financial performance measure evaluated by the government is that the Institution has to remain within cash limits. The cash allocation each year is determined by a range of non-financial measures such as the number of research publications the Institution's staff have achieved and official ratings for teaching quality.

However, almost 20% of total cash generated by the Institution is now from the provision of courses and seminars to private sector companies, using either its own or its customers' facilities. These customers are largely unconcerned about research ratings and teaching quality as they relate more to academic awards such as degrees.The Head of the Institution aims to increase the percentage of income coming from the private sector to 50% over the next five years. She has asked you to advise on how the management team can evaluate progress towards achieving this aim as well as meeting the objective set by government for the activities it funds.

Required

(a) Discuss the main issues that an Institution such as this has to consider when setting objectives.

Advise on:

(i)

Whether such objectives should be made public

(b) The following is a list of financial and non-financial performance measures that were in use in your previous company: Required; Choose two of each type of measure, explain their purpose and advise on how they could be used by the Educational Institution over the next five years to assess how it is meeting the Head of the Institution's aims. [10] Note: A report format is NOT required in answering this question. (b) The following is a list of financial and non-financial performance measures that were in use in your previous company: Required; Choose two of each type of measure, explain their purpose and advise on how they could be used by the Educational Institution over the next five years to assess how it is meeting the Head of the Institution's aims. [10] Note: A report format is NOT required in answering this

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