Heriot-Watt student union on brink of financial crisis

Heriot-Watt University Student Association (HWUSA) has called for an independent review of its financial position following cuts in funding that have forced the association to significantly reduce its services.

The Journal understands that HWUSA has suggested to university authorities that association funding and resource allocation be referred to an external consultant.

With savings already made through substantial cut backs across the organisation, HWUSA officials told The Journal they cannot make any further reductions in spending without directly affecting student services.

Simon Eltringham, president of HWUSA, said: “At the moment, the cuts are not affecting students—we have maintained the same level of service but have no money to invest in new projects, and have money tied up in activities and services which students do not value. This is extremely frustrating and unsustainable.”

According to internal documents obtained by The Journal, Heriot-Watt University have cut funding to non-academic organisations by six percent since the academic year 2008/9, with a further six per cent cut expected in 2010/11.

HWUSA has recorded substantial losses in trading income since 2004, with losses blamed on 'changes in student lifestyle'.

After costly measures to save the association, which included the appointment of a financial controller by the university, 2006/7 saw a deficit of £80,000, followed by a surplus of £30,000 in 2007/8.

The students' association made a loss again in 2008/9. HWUSA insiders told The Journal the organisation would have been in surplus were it not for the continuing funding cuts.

In comparison, 90 percent of UK universities awarded their students' associations an increase in funding this academic year.

HWUSA's union building was built in 1991 and is in need of refurbishment. In particular, the toilets urgently need to be upgraded to comply with the Licensing Act 2003, which sets out the standards for entertainment premises serving alcohol.

The ‘Watts On’ magazine has already been forced to cease publication and campus bar 'Liberty’s' is now closed most evenings.

Following a personnel review HWUSA has amalgamated six departments, together employing just three senior managers.

HWUSA has also had to remove a sabbatical role, as Mr Eltringham explained: “Three years ago, the vice-president services & communications role was changed from a sabbatical position to a part time officer position.

The other sabbaticals, two at the Edinburgh campus and one based in the Borders, "who have a huge workload already, are needing to take on additional work because we do not have the student officers to do it."

The review is being conducted by John Martin, a former member of the Association of University Administrators' Executive.

Mr Martin is expected to meet with several members of HWUSA staff and officers and will be mandated to consult confidential documents.

The process is expected to take three months and the results will be analysed by the HWUSA executive. HWUSA aim to form a long-term financial strategy from Mr Martin's recommendations.

Mr Eltringham said: “I hope that the review will give the association a clear direction and a workable strategy that will not only kick start our financial recovery but allow us to deliver the service that students and the wider university community deserve.”