Cambridge University Reporter Special No 5 - Financial Management Information
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CAMBRIDGE UNIVERSITY REPORTER S PECIAL N O 5 T HUR S D AY 12 J A N UARY 2017 VOL CXLVII Financial Management Information for the year ended 31 July 2016 PUBLISHED BY AUTHORITY Financial Management Information for the year ended 31 July 2016 This Financial Management Information report has been prepared to complement the University’s Financial Statements for the year ended 31 July 2016 which were published on 8 December 2016 (Reporter, 6448, 2016–17, pp. 221–265). This report does not form part of the Financial Statements and is unaudited. The report is intended to provide a source of information for members of the University and has been divided into the following sections: Page Financial statements Section A: Unaudited accounts in respect of academic activities 3 Section B: Summary of consolidation and segmental analysis 18 Expenditure and income Section C: Expenditure by Institution (summary) 21 Section D: Expenditure by Institution (detailed) 24 Section E: Expenditure by activity 27 Section F: Funding body grants 29 Reserves and endowments Section G: Analysis of reserves 30 Section H: Strategic Planning Reserve Fund 31 Section I: Endowments 32 Section J: Trust funds 33 Section K: Special funds 52 Research sponsors Section L: Research grants and contracts 53 Investments Section M: Investments 59 Cambridge University Endowment Fund: Section N: Reports and financial statements to 30 June 2016 61 Section O: Investment performance 82 Notices for publication in the Reporter, or queries concerning content, should be sent to the Editor, Cambridge University Reporter, Registrary’s Office, The Old Schools, Cambridge, CB2 1TN (tel. 01223 332305, [email protected] ). 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CAMBRIDGE UNIVERSITY REPORTER SPECIAL NO 5 - FINANCIAL MANAGEMENT INFORMATION Section A: Unaudited accounts in respect of academic activities The scope and basis of preparation differ from the University’s financial statements for 2015-16 in that these unaudited accounts exclude the income and expenditure, assets and liabilities of Cambridge Assessment (the Local Examinations Syndicate and its subsidiary undertakings) and of Cambridge University Press, and also exclude from consolidation the associated Trusts. In order to distinguish these accounts from the University’s financial statements they are referred to as unaudited accounts in respect of academic activities. The unaudited accounts have been prepared following the same accounting policies as the audited financial statements for the year ended 31 July 2016. Investment income includes the full value of distributions from the Cambridge University Endowment Fund. The Group accounts included below reflect the consolidated position of the Academic University together with the 14 subsidiary undertakings listed against "Academic" in Section B. UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME IN RESPECT OF ACADEMIC ACTIVITIES FOR THE YEAR ENDED 31 JULY 2016 Group Group University University Year ended Year ended Year ended Year ended Note 31 July 2016 31 July 2015 31 July 2016 31 July 2015 £m £m £m £m Income Tuition fees and education contracts i 262.8 226.1 250.1 214.3 Funding body grants ii 193.0 203.8 193.0 203.8 Research grants and contracts iii 469.0 412.3 462.4 408.6 Exceptional income: RDEC iv 1.3 53.7 1.3 53.7 Donations and endowments v 62.0 49.7 67.3 59.9 Other income vi 130.7 126.5 110.6 111.9 Investment income vii 72.5 71.5 71.8 71.4 Total income 1,191.3 1,143.6 1,156.5 1,123.6 Expenditure Staff costs viii 551.5 553.9 541.8 545.4 Other operating expenses ix 448.2 410.6 426.1 391.1 Depreciation ix, xii 67.9 60.8 67.6 60.6 Interest and other finance costs x 28.3 28.7 28.3 28.7 Total expenditure 1,095.9 1,054.0 1,063.8 1,025.8 Surplus before other gains and losses 95.4 89.6 92.7 97.8 Gain on investments xiv 116.6 201.2 114.2 195.9 Surplus before tax 212.0 290.8 206.9 293.7 Taxation xi (0.3) (11.7) (0.3) (11.7) Surplus for the year 211.7 279.1 206.6 282.0 Actuarial loss (145.2) (4.6) (145.2) (4.6) Total comprehensive income for the year 66.5 274.5 61.4 277.4 Represented by: Endowment comprehensive income for the year xxii 94.0 133.0 93.8 132.8 Restricted comprehensive income for the year xxiii 65.8 86.2 65.7 86.3 Unrestricted comprehensive income for the year (93.3) 55.3 (98.1) 58.3 66.5 274.5 61.4 277.4 Section A Page 3 CAMBRIDGE UNIVERSITY REPORTER SPECIAL NO 5 - FINANCIAL MANAGEMENT INFORMATION UNAUDITED STATEMENT OF CHANGES IN RESERVES IN RESPECT OF ACADEMIC ACTIVITIES FOR THE YEAR ENDED 31 JULY 2016 Endowment Restricted Unrestricted Total £m £m £m £m Group Balance at 1 August 2014 1,069.9 56.7 1,946.5 3,073.1 – Surplus for the year ended 31 July 2015 133.0 86.2 59.9 279.1 Other comprehensive income – – (4.6) (4.6) Total comprehensive income for the year ended 31 July 2015 133.0 86.2 55.3 274.5 Release of restricted capital funds spent in the year ended 31 July 2015 – (61.5) 61.5 – Balance at 31 July 2015 1,202.9 81.4 2,063.3 3,347.6 – Surplus for the year ended 31 July 2016 94.0 65.8 51.9 211.7 Other comprehensive income – – (145.2) (145.2) Total comprehensive income for the year ended 31 July 2016 94.0 65.8 (93.3) 66.5 Release of restricted capital funds spent in the year ended 31 July 2016 – (68.5) 68.5 – Balance at 31 July 2016 1,296.9 78.7 2,038.5 3,414.1 University Balance at 1 August 2014 1,067.7 56.6 1,939.8 3,064.1 Surplus for the year ended 31 July 2015 132.8 86.3 62.9 282.0 Other comprehensive income – – (4.6) (4.6) Total comprehensive income for the year ended 31 July 2015 132.8 86.3 58.3 277.4 Release of restricted capital funds spent in the year ended 31 July 2015 – (61.5) 61.5 – Balance at 31 July 2015 1,200.5 81.4 2,059.6 3,341.5 – Surplus for the year ended 31 July 2016 93.8 65.7 47.1 206.6 Other comprehensive income – – (145.2) (145.2) Total comprehensive income for the year ended 31 July 2016 93.8 65.7 (98.1) 61.4 Release of restricted capital funds spent in the year ended 31 July 2016 – (68.5) 68.5 – Balance at 31 July 2016 1,294.3 78.6 2,030.0 3,402.9 Section A Page 4 CAMBRIDGE UNIVERSITY REPORTER SPECIAL NO 5 - FINANCIAL MANAGEMENT INFORMATION UNAUDITED BALANCE SHEETS IN RESPECT OF ACADEMIC ACTIVITES AS AT 31 JULY 2016 Group Group University University 31 July 2016 31 July 2015 31 July 2016 31 July 2015 Note £m £m £m £m Non-current assets Fixed assets xii 2,001.3 1,872.1 2,003.0 1,873.7 Heritage assets xiii 65.1 60.9 65.1 60.9 Investments xiv 2,279.7 2,100.4 2,269.2 2,092.4 4,346.1 4,033.4 4,337.3 4,027.0 Current assets Stocks and work in progress xv 1.7 1.8 1.3 1.4 Trade and other receivables xvi 197.0 203.7 196.0 206.4 Investments xvii 855.1 800.1 857.6 802.5 Cash and cash equivalents xviii 255.9 289.5 240.2 272.8 1,309.7 1,295.1 1,295.1 1,283.1 Creditors: amounts falling due within one year xix (1,291.2) (1,197.5) (1,280.4) (1,186.5) Net current assets 18.5 97.6 14.7 96.6 Total assets less current liabilities 4,364.6 4,131.0 4,352.0 4,123.6 Creditors: amounts falling due after more than one year xx (342.5) (342.4) (342.5) (342.4) Pension liabilities xxi (608.0) (441.0) (606.6) (439.7) Total net assets 3,414.1 3,347.6 3,402.9 3,341.5 Restricted reserves Income and expenditure reserve - endowment xxii 1,296.9 1,202.9 1,294.3 1,200.5 Income and expenditure reserve - restricted xxiii 78.7 81.4 78.6 81.4 Unrestricted reserves Income and expenditure reserve - unrestricted 2,038.5 2,063.3 2,030.0 2,059.6 Total reserves 3,414.1 3,347.6 3,402.9 3,341.5 Section A Page 5 CAMBRIDGE UNIVERSITY REPORTER SPECIAL NO 5 - FINANCIAL MANAGEMENT INFORMATION NOTES TO THE UNAUDITED ACCOUNTS IN RESPECT OF ACADEMIC ACTIVITIES 2016 2015 2016 2015 Group Group University University £m £m £m £m i Tuition fees and education contracts Full-time home / EU students 122.0 102.0 122.0 102.0 Full-time overseas (non-EU) students 87.8 75.6 87.8 75.6 Other course fees 25.2 23.4 12.5 11.6 Research Training Support Grants 27.8 25.1 27.8 25.1 262.8 226.1 250.1 214.3 ii Funding body grants Higher Education Funding Council for England (HEFCE) Recurrent grant: teaching 20.7 24.5 20.7 24.5 Recurrent grant: research 120.0 124.4 120.0 124.4 Other revenue grants 7.5 6.0 7.5 6.0 Total revenue grants 148.2 154.9 148.2 154.9 Capital grants recognised in the year 44.8 48.9 44.8 48.9 193.0 203.8 193.0 203.8 ii i Income: Research grants and contracts Research council s 161.1 125.8 161.1 125.8 UK based charities 127.3 128.7 127.2 128.7 European Commission 61.5 58.3 61.5 58.2 UK industry 23.6 19.0 22.2 17.5 UK Government 49.6 37.8 49.3 37.3 Other bodies 45.9 42.7 41.1 41.1 469.0 412.3 462.4 408.6 Total research grants and contracts income includes grants of £7.8m (2015: £10.9m) towards the cost of buildings and £38.6m (2015: £13.4m) for the purchase of equipment.