Reports and Financial statements 2009 - the University Offices ...

Financial Review
of £25m from Cambridge Assessment (including a £12m special transfer) in support of
academic activities. Expenditure increased by £65m to £746m with increased research activity,
an above-budget general pay increase of 5% in the year, and general cost pressures, notably
in utility costs.
The Cambridge Assessment group is organized into three main business streams: University
of Cambridge International Examinations (CIE), Oxford Cambridge and RSA Examinations
(OCR), and University of Cambridge ESOL Examinations (Cambridge ESOL). Services are
provided to customers in around 160 countries. Income from its examination fees and other
educational and assessment services grew to £237m from £216m due to increased demand
across all three business streams, resulting in a healthy surplus.The English language
business was particularly strong. Investment continues to be made in information technology,
increasingly important in the delivery and administration of assessment services, and in
logistical systems.
Cambridge University Press is organized into two main business streams: Academic
publishing of books and journals; and Cambridge Learning, which covers English Language
Teaching and educational publishing. Its geographic regions are Europe, Middle East and
Africa; Americas; and Asia-Pacific.The Press continued its favourable trend with good
increases in sales, which exceeded £200m, aided by a strengthening US dollar. English
Language Teaching publishing was the Press’s highest growth business and academic and
professional publishing held up well. During the period the Press scaled down its printing
business in response to changing market conditions. Overall the Press maintained a small
operating surplus.
Change in financial position
Table 3 below gives the movement in net assets showing the capital flows into the group, analysed
into its three main segments, and the impact of changes in the values of investment assets.
Table 3
Movement in net assets
Education Cambridge Cambridge University Total
and Assessment University Pension
research Press Scheme
£m £m £m £m £m
Net assets at 31 July 2008 2,183 191 62 (115) 2,321
(Deficit)/surplus on continuing operations (24) 14 1 (6) (15)
Currency adjustments – – 4 – 4
New endowment capital 47 – – – 47
External funding for capital expenditure 16 – – – 16
Actuarial loss on retirement benefits – (1) (31) (62) (94)
Decrease in investment values (93) (4) – – (97)
Net assets at 31 July 2009 2,129 200 36 (183) 2,182
Further capital inflows were received for endowments and in support of the building
programme.The adverse investment markets had a major impact on the long-term
invest-ment assets of the endowment fund and pension fund assets.
60 University of Cambridge Annual Report 2009