The full level of fee income associated with the fee rate is known as Gross Fee Income. Scholarships and certain other items are also relevant to the measurement of Fee Income. These items are named Fee-Related Expenditure and are subtracted from the Gross Fee Income to calculate Net Fee Income.
The concept is that Fee Income of €20,000, with a university-funded scholarship of €5,000 represents €15,000 of real income (regardless of whether the scholarship is funded by the school, the college or centrally). Therefore the Net Fee Income amount of €15,000 is that amount that is used for financial comparisons against Target.