estate strategy 2007-2017 - Publication Scheme - University of Stirling

financial issuesbeen transferred to bids for recurrent funding asthey do not meet the capitalisation criteria, andothers have been set aside as they are the subjectof specific bids for external funding. If this fundingis not forthcoming these projects are unlikely toproceed in the planning period.As noted above, the University has a £20mRCF, which is convertible into a term loan. Theaffordability analysis is based on the £20m facilitybeing converted into a term loan repayable over15 years through annual amortising interest andcapital payments.Under the new FM conditions the University hasthe scope to borrow up to £35m before referralto the Funding Council is required. However theanalysis to date suggests that the University wouldbe unable to afford the annual financing costs onthis level of borrowing. In addition the Universityis required to adhere to the financial covenantsimposed by the RCF.At the current time the University does not haveany formal arrangements in place to manageinterest rate risk. However, such measurers will beput in place as and when the RCF is converted toterm loans.The current revenue budget strategy includes theassumption that the maintenance budget willcontinue at its current level but subject to thenormal assessment of affordability arising at thetime of agreeing the detailed annual budget.46