Forecast
In the period to 2014, KIMEP will undergo a major reorientation. The forecast below sets out the key student, human resource and financial implications of implementing our goals. The key assumptions are:
- Annual inflation of 8%;
- The total student population is projected to increase to 3,700 by 2013-2014, up 11% on 2011-2012 (Figure 3);
- Tuition will increase at 10% per annum;
- The core faculty will all be academically and/or professionally qualified;
- Realignment of support services will provide higher quality services at lower cost.
Figure 3: Projected Enrollment
As noted in Figure 4, far and away the greatest expenditure is currently on human resources. For 2011-2012, payroll as a percentage of total revenue is 85%. This is not sustainable. The target is to move this key efficiency ratio to 60% by 2014, with reductions of 25% in the core full-time faculty by enforcing higher quality standards and across all support services, including academic support services. Further, the goal is to improve efficiency at the same time as revenues increase – from $21.6m to $28m by 2014.
This will move KIMEP to a net positive situation from its current deficit, with a surplus for reinvestment in capital improvements and rewards for high-performing employees.
Figure 4: Forecast: Key Financials ($ 000)
These figures clearly illustrate that by refocusing on its strengths, KIMEP can assure its financial viability.
