OUSU Counts the Cost
OUSU has been left in a "precarious" financial position after serious mismanagement of advertising revenues last term. An official assessment raises grave concerns over the funding of new sabbatical posts and the worrying dependence on uncertain sources of revenue.
Alex Freudmann, the current Vice-President (Finance), predicts that last year's accounts will show a deficit, although final figures will not be released until next term. Although the students' union has reserves to "wipe out" losses, Alex explained that such a situation should not have occurred in the midst of "good economic conditions and static staff levels", as the contingency funds may be needed in times of recession or emergency.
Last year OUSU council voted to fund a new sabbatical officer for Access and Academic Affairs, which will take up another £11,000 for salary and start-up costs in the next academic year. The post is seen as a very important one, intended to tackle the apparent reluctance of Oxford University to look into teaching standards. The creation of this new sabbatical post was fervently supported by Paul Campy, the previous VP (Finance). OUSU finances are however already being stretched by the need to fund the new post of Professional Student Adviser, created last year in order to take some of the pressure off the VP (Women) and in particular the VP (Welfare), who were increasingly being expected to provide counselling services for which they were not fully qualified. The present holder of this position, Ms Nicola Colao is contracted until 2001, which will mean OUSU has to fund the two new posts simultaneously. This problem may be further compounded by issues of funding for the three-year-old post of VP (Graduates), which the university agreed to pay for only temporarily. If funding is withdrawn, OUSU may well have to find the £10,000 salary itself in the future.
The official financial assessment, written by Alex Freudmann, states that a "dent" was made in last year's income by the "administrative incompetence" of the previous Business Manager, Richard Atkinson, who failed to collect money for adverts already printed in OUSU's wide range of publications. £40,000 of invoices were left uncollected, which caused great difficulties for the publications supposed to come out over the summer. One publication, the Oxbridge Law Careers Handbook, had to be abandoned because it was "six months behind schedule, and half the copy and contracts were missing." Richard Atkinson admits to making mistakes but cites as a mitigating circumstance the fact that he was "almost killed in a car crash after being awake for 36 hours" on official OUSU business at the end of Trinity term.
A report by James Littlefair, Mr Atkinson's successor, accepts that the accident was "unfortunate" but nevertheless comments that "this level of mismanagement is inexcusable...this situation went unmonitored, and more importantly unchecked, for a substantial length of time." The report suggests that students' interests as a whole have been harmed by the fiasco, as "the Cherwell and the Guild got (to the advertising) first", and these institutions do not spend the revenues they receive on welfare and representation.
Richard Atkinson and Alex Freudmann both expressed serious concerns about the long-term financial viability of OUSU, pointing out the fact that it depends on advertising for nearly half its revenue, as opposed to the vast majority of students' unions which have control of student venues from which bar and entrance profits can be raised." His financial assessment states that "everything we do beyond paying salaries is paid for from this unstable revenue stream." Alex Freudmann described the graduate recruitment advertising market as "a pie that is getting smaller, and one that more and more people want a piece of. Careers services are being used more, and more publications are carrying adverts directed at graduates", he explained. "Five years ago, the Oxbridge Careers Handbook was the only one, but now many more universities are producing them, and even JCRs are getting sponsorship from companies. At the moment advertising is a very successful source of revenue, but in the worst case scenario it can always disappear.
Alex Freudmann acknowledges that other sources of revenue will have to be found and exploited, although he strongly believes that raising subscriptions from JCRs would not be the answer. Following the "not very well run" COCKSOC event last year, OUSU is planning to use its "vast advertising potential" to promote end of term events, with a view to holding more regular club nights later on. Despite its lack of financial muscle, Alex Freudmann is keen to stress that OUSU has got a very advanced service structure: "if it could combine the two it could be the most successful students' union in the country. Last year was not run well, but I see the publishing of this report as a positive step - there is a trend in OUSU to be reticent about finances, but there's no need for it to be shrouded in mystery."
7th Oct 1999