University of Salford Annual Report and Financial Statements for the year ended 31st July 2006 Contents Page Annual Report 1 Vice-Chancellor’s Introduction 2-3 Sharing knowledge forging partnerships 4-6 Shaping graduates – supporting society 7-8 Nurturing experiences – creating opportunities 9-10 Maximising research – tackling issues 11-14 Thinking globally – broadening horizons 15-17 Encouraging recognition – celebrating success 18-21 Statistics 22 Financial Statements 23 Membership of the Council 2005 - 06 24 Financial Review 25-26 Group Structure 26 Statement of Primary Responsibilities 27 Corporate Governance Statement 28-29 Statement of the Council’s Responsibilities and Internal Control 30-31 Report of the Independent Auditors to the Council of the University of Salford 32-33 Consolidated Income and Expenditure Account 34 Consolidated Statement of Historical Cost Surpluses and Deficits 35 Consolidated Statement of Total Recognised Gains and Losses 35 Consolidated Balance Sheet 36 University Balance Sheet 37 Consolidated Cash Flow Statement 38 Statement of Principal Accounting Policies 39-40 Notes to the Accounts 41-65 Annual Report & Financial Statements Annual Report Annual Report & Vice-Chancellor’s introduction Financial Statements Vice-Chancellor’s introduction Taking stock – looking ahead Our programmes to educate and develop highly employable graduates and to draw on all those who can benefit from The academic year 2005 – 2006 witnessed considerable higher education are also included. As you will also see, our achievements for the University in all aspects of its activity. striking and highly successful engagement with ‘real world research’ continues to grow and, reflecting a new strategic Last year the University adopted a new and radically revised goal, we are committed to internationalising all aspects of Strategic Framework for development over the next decade. the University. The Strategic Framework 2005-2015 (available at www.planning.salford.ac.uk) aims to clearly set out how we intend to pursue our mission as an ‘enterprising university’. The financial report and accounts show that the underlying performance of the University was sound, continuing the pattern of income growth that has been sustained in recent We intend to achieve internationally recognised excellence in: years. From 2006-7 our income will be further boosted by the ■ Education for capability. advent of the new undergraduate student fee arrangements. ■ Research for the real world. However, much of this extra income will be needed to meet the substantial rises in staff pay that have been agreed, ■ Partnership with business and the community. following the resolution of the lengthy and difficult industrial dispute in 2005-6 as well our plans for greatly increased As a leading enterprising university we will: expenditure on our campus. ■ Harness the skills, imagination and enthusiasm of our staff and students to work in close alliances with our The first stages of this investment have been completed with external partners. the official opening of our new £22m Mary Seacole building for the Faculty of Health & Social Care by Dame Tanni ■ Be innovative and effective in the application of new Grey-Thompson in May 2006, and the extensive refurbishment knowledge to individual, social and economic of our Peel Park site. Work now continues to provide new development, working across traditional disciplinary student housing on campus, our £10m Law School building and professional boundaries. and brand new accommodation for our Faculty of Arts, Media ■ Seek continuous improvement in all aspects of our activities & Social Sciences. and in our responsiveness to the changing needs of our students, staff and external partners. ■ Adopt a friendly, customer focused ethos, delivering to students an excellent experience of higher education; to staff, a rewarding and developing career; and to external partners, an effective and timely response to their changing needs. This Annual Report highlights some of the many ways in which we are already delivering these aspirations, with examples taken from our widening and increasingly internationally recognised work in Academic Enterprise. 2 The Mary Seacole building Annual Report & Vice-Chancellor’s introduction Financial Statements Finally, I would like to thank all those staff and students who made our success over the past year possible. Several long serving and valued members of staff retired during this period and they leave with our special thanks and best wishes for the future. While it is not possible to list all those who have left us, I must make special mention of Dr Malcolm Winton, who retired in May 2006. Malcolm spent most of his career at Salford, for the last 14 years as our Registrar (only the second in the University’s history). He saw the University through some difficult times and we are all greatly in his debt. He is succeeded by Dr Adrian Graves who comes to us from Robert Gordon University and who has had a distinguished career in The proposed new Law School academic administration in the UK and Australia. For the past two years we have been intensively examining how we organise and manage the University. The final report of the Deciding the Future group, which I chaired, was Michael Harloe approved by Senate and Council at the end of 2006, following December 2006 an intensive period of staff consultation on its recommendations. These are far-reaching and will be progressively implemented over the next two to three years. We recognise that many of the ways in which a ‘traditional’ university like Salford has operated in the past are no longer suitable for modern times and especially for a university committed to enterprise in all that it does. New ways need to be found both to strengthen and improve our management and to engage staff and foster a real feeling of involvement in the institution and in helping to shape its future. Staff support for change is evident in all parts of the University and now we shall work hard to deliver it. 3 Annual Report & Sharing knowledge – forging partnerships Financial Statements Sharing knowledge - forging partnerships At the University of Salford, we know that real life presents In November 2005 the CFS team were presented with the daily challenges to business, industry and the community. Times Higher Education Supplement Award for research and That is why we are perfectly positioned to form effective development of these Trusts. partnerships – and to share and promote this knowledge and expertise at every opportunity. Speaking about the award, Liz Thomas, Senior Advisor on Widening Participation for the Higher Education Academy, We have always maintained strong links with business and said: “This is an exciting and very impressive project that has been rooted in the community. We play a valuable role in had an impact on communities across the UK. It is an facilitating constructive knowledge sharing amongst excellent example of using research to inform practical organisations and society. Whether it’s through developing developments at the local level and political change at the business partnerships, linking with community groups or national level.” encouraging collaboration amongst industries, the past year has consolidated our reputation as experts at ‘reaching out’ to Pioneering practices business and the community. Our Academic Enterprise division has developed a unique Supporting society benchmarking partnership called UPBEAT – University Partnership to Benchmark Enterprise Activities and The University of Salford is committed to contributing to the Technologies. This pioneering assessment tool is led by the economic, social and cultural life of the community. University in partnership with four UK universities and a Community Finance Solutions (CFS) was established after a consortium of European universities in order to drive team of Salford researchers developed a radical model for continuous improvement in all outreach activities to business providing affordable credit. They use community-based and the community. financial institutions to help individuals, small businesses and communities acquire financial security. The project was developed when staff at our Academic Enterprise division discovered that, apart from monitoring the Now a thriving national organisation, CFS offers practical financial success of outreach work, there was no holistic way solutions to this problem – schemes like Community of measuring the social and economic benefits of a project. Reinvestment Trusts (CRTs), high street shops providing flexible, Using a unique four-scale matrix system, UPBEAT has the affordable loans and banking services. The Trusts provide a ability to accurately assess what difference outreach projects way of offering instant and affordable credit to people have made business and the community. who usually have to rely on legal, but unscrupulous ‘doorstep moneylenders’. During the past year, the UPBEAT team has worked with several initiatives to evaluate their success and is in the process There are now ten urban and three rural CRTs in the UK, and of collaborating with another five universities on the project. they lend £5m to more than 6,000 people. This year, the Treasury has made them a priority initiative as part of its financial inclusion strategy. 4 Annual Report & Sharing knowledge – forging partnerships Financial Statements Innovation Cells CAMPUS At Salford, we continuously develop and extend new The University’s business club - the first of