The University Not Only to Adapt to Challenging Times but Also to Contribute to National Efforts to Combat COVID-19
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DocuSign Envelope ID: 5B7BEA18-9471-4703-9A43-21B687347228 Reports and Financial Statements 2020 DocuSign Envelope ID: 5B7BEA18-9471-4703-9A43-21B687347228Polar Sciences, PhD candidate, Prem Gill, in the Map Room at the Scott Polar Research Institute DocuSign Envelope ID: 5B7BEA18-9471-4703-9A43-21B687347228 Reports and Financial Statements 2020 A brief overview 4 Financial review 10 Corporate governance 27 Members of the Council 29 Statement of internal control 30 Statement of the responsibilities of the Council 31 Independent auditor’s report to the Council 32 Consolidated and University statement of comprehensive income 39 Consolidated and University statement of changes in reserves 40 Consolidated and University statement of financial position 41 Consolidated statement of cash flows 42 Notes to the accounts 43 Appendix 1 92 University of Cambridge Annual Report 2020 3 Reports and Financial Statements DocuSign Envelope ID: 5B7BEA18-9471-4703-9A43-21B687347228 A brief overview I would like to express my enormous gratitude to all our students, staff, alumni and friends, whose resilience and forbearance have allowed the University not only to adapt to challenging times but also to contribute to national efforts to combat COVID-19. We have maintained our critical research capacity, and significantly enhanced our use of remote education and online teaching. The collegiate University has provided accommodation for key workers and deployed critical equipment to help national testing efforts. Cambridge scientists have offered valuable expertise to help the public – and the government – better understand the disease. The recovery process will be long, and we must be prepared for future contingencies. Our community’s collective response to the crisis gives me great confidence that we will be able to face such contingencies with a strengthened sense of purpose. Professor Stephen Toope Vice-Chancellor University of Cambridge Annual Report 2020 4 Reports and Financial Statements DocuSign Envelope ID: 5B7BEA18-9471-4703-9A43-21B687347228 A brief overview Financial highlights The University’s audited financial statements for the year ended 31 July 2020 are included after this overview and will be published in the Cambridge University Reporter. The following analyses, extracted from those financial statements and the accompanying financial review, summarise the University’s sources of income , surplus for the year and the factors affecting net assets. Group income Year ended 31 July 2020 2020 2019 £m £m £2,075m Research grants, and contracts 579 592 Year ended 31 July 2019 Examination and assessment services 377 479 Tuition fees and education contracts 335 320 £2,192m Publishing services 318 334 Funding body grants 205 182 Endowment and investment income 151 The Group's income has fallen by £117m (down 107 5%) compared to the prior year. The trading Other income 154 134 revenues and surpluses (see below) of Cambridge Assessment and Cambridge University Press 27.0+21.815.214.68.376+G have both been impacted by COVID-19 as has income generated through research. 28.1+18.316.315.41076+M Group surplus for the year Year ended 31 July 2020 Year ended 31 July 2019 £85m £117m The Group generated a surplus for the year of £85m which £104m included a significant benefit from the non cash pension credit on the 2018 USS deficit recovery scheme valuation. After Cambridge Assessment* adjusting for this and other unrealised fair value adjustments, capital grants and significant one-off endowments the HEI, Trusts and other underlying measure for the Group , the “adjusted operating Cambridge University Press* deficit” was £(90)m. £49m £33m 14.5+0 0+ £30m Adjusted operating surplus / (deficit) for the year ** £3m Year ended 31 July 2020 £(90)m Year ended 31 July 2019 £16m 48+33+3 88.9+0£(17)m +25.6 * Stated before contributions and transfers made to the University ** See Appendix 1 The Group’s net assets totalled £5,069m as at 31 July Group net assets 2020 (2019: £5,145m). The decrease in net assets largely reflects a decrease in the value of investments, Year ended 31 July 2020 increases in the Group’s total pension liabilities and fair valuation of the 2018 CPI bond, and movements in £5,069m working capital. Year ended 31 July 2019 2020 2019 £m £m £5,145m HEI, Trusts and other 4,492 4,344 Cambridge Assessment 522 697 88.684.4+13.52G +10.31.1M Cambridge University Press 55 104 University of Cambridge Annual Report 2020 5 Reports and Financial Statements DocuSign Envelope ID: 5B7BEA18-9471-4703-9A43-21B687347228 A brief overview Fighting COVID-19 2020 has been dominated by one issue alone: COVID-19. Cambridge has made an extraordinary contribution to tackling COVID-19. Scores of researchers are focusing on the nature and transmission of the disease, the development of therapeutics and a vaccine, and the impact of the pandemic on all aspects of society from mental health to education and economics to working practices. Meanwhile, Cambridge epidemiologists, pathologists, immunologists, mathematicians and veterinary scientists are helping the government – and the public – better understand the disease. Together with partners AstraZeneca and GSK, the University rapidly established a new laboratory to support the UK network of testing centres. “Never did I expect that my very niche scientific skill set could ever be useful at a national scale. One of our newest institutes – the Cambridge Institute of Therapeutic Immunology and Infectious Disease on I wanted to be of help in any way possible during the Cambridge Biomedical Campus – pivoted almost the this difficult time.” entirety of its research towards studying COVID-19. With May Yeo, Edwige Moyroud group research assistant and over 150 scientists and clinicians, the UK’s largest academic lab Manager, Sainsbury Laboratory Containment Level 3 Facility, and a range of collaborators from across the UK and beyond, the institute aims to AI models to predict demands on the NHS at hospital and understand the relationship between this infectious disease even individual patient level. and our immune systems – and why coronavirus affects some people more than others. Meanwhile, researchers at the Department of Veterinary Medicine have developed a vaccine candidate, DIOS- Our researchers are also at the heart of a major nationwide CoVax2, which could begin clinical trials in early 2021. Their initiative, the COVID-19 Genomics UK Consortium, led by approach has been to insert synthetic DNA encoding viral our University and the nearby Wellcome Sanger Institute. proteins within different vaccine delivery systems. The They have used genomic surveillance to inform infection body’s immune cells take up the vector, decode the vaccine control measures and reduce the number of hospital- antigen and use the information to program the rest of the acquired infections at Cambridge University Hospitals NHS immune system to produce antibodies against it. Foundation Trust (CUH). Other researchers have focused on the particular Also helping CUH manage the disease has been a new rapid challenges faced by low- and middle-income countries – diagnostic test for COVID-19 developed by Cambridge for instance, designing a low-cost, open-source ventilator spin-out Diagnostics for the Real World. These SAMBA that can be cheaply and quickly manufactured from readily II testing devices provide a diagnosis within an average available components. The ventilator was designed by time of 2.6 hours compared with 26.4 hours for standard a team from the Department of Engineering’s Whittle laboratory tests. The average length of time patients had Laboratory, working with colleagues from the Institute for to spend on a COVID-19 ‘holding’ ward almost halved and Manufacturing and in collaboration with a manufacturer in 11 ward closures were prevented in the ten days after South Africa. implementation. The impact of the pandemic has been far-reaching and Other research projects have focused on NHS capacity, will be felt for some time. Our researchers have been personal protective equipment (PPE), emergency hospital considering its effects on mental health, social behaviour, design, and the logistics and supply chains for frontline manufacturing, food insecurity, work, educational equality resources in the UK. Among these, researchers are training and, vitally, how we can prevent future pandemics. University of Cambridge Annual Report 2020 6 Reports and Financial Statements DocuSign Envelope ID: 5B7BEA18-9471-4703-9A43-21B687347228 Cambridge Zero – a bold response to the world’s greatest challenge November 2019 saw the launch of Cambridge Zero, the University’s response to the climate crisis. Responding to climate change will require huge changes in the structures of our society. Every sector will need to be reimagined: from how we travel, how we live, and even how we measure our prosperity. Creating a sustainable society poses a great challenge but also a great opportunity. We have a unique chance to create a future that is not only sustainable, but is also resilient, equitable and fair. Cambridge Zero brings together the collective expertise of the University - from science and engineering to law and philosophy - to offer integrated, holistic and practical solutions to climate change and to bring these developments to bear at international, national and local levels. It is also at the heart of the academic networks involved in advising the host British government in the run-up to the UN’s COP26 Climate Conference in 2021. Sustainability is also at the heart of the new National Centre for Propulsion and Power, based at the Whittle Laboratory, which is due to open in 2022. It will help Cambridge lead the push towards massively reducing the carbon emissions of the aviation industry, while creating jobs and economic opportunities in our region and across the country. In addition, the University is also examining its own practices, and has now committed to cutting its greenhouse gas emissions to zero by 2038 - more Dr Emily Shuckburgh, Director of than a decade before the target date set by the UK government.