2006 Annual Report - University of Salford
2006 Annual Report - University of Salford
2006 Annual Report - University of Salford
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<strong>University</strong> <strong>of</strong> <strong>Salford</strong><br />
<strong>Annual</strong> <strong>Report</strong> and Financial Statements<br />
for the year ended 31st July <strong>2006</strong>
Contents<br />
Page<br />
<strong>Annual</strong> <strong>Report</strong> 1<br />
Vice-Chancellor’s Introduction 2-3<br />
Sharing knowledge forging partnerships 4-6<br />
Shaping graduates – supporting society 7-8<br />
Nurturing experiences – creating opportunities 9-10<br />
Maximising research – tackling issues 11-14<br />
Thinking globally – broadening horizons 15-17<br />
Encouraging recognition – celebrating success 18-21<br />
Statistics 22<br />
Financial Statements 23<br />
Membership <strong>of</strong> the Council 2005 - 06 24<br />
Financial Review 25-26<br />
Group Structure 26<br />
Statement <strong>of</strong> Primary Responsibilities 27<br />
Corporate Governance Statement 28-29<br />
Statement <strong>of</strong> the Council’s Responsibilities and Internal Control 30-31<br />
<strong>Report</strong> <strong>of</strong> the Independent Auditors to the Council <strong>of</strong> the <strong>University</strong> <strong>of</strong> <strong>Salford</strong> 32-33<br />
Consolidated Income and Expenditure Account 34<br />
Consolidated Statement <strong>of</strong> Historical Cost Surpluses and Deficits 35<br />
Consolidated Statement <strong>of</strong> Total Recognised Gains and Losses 35<br />
Consolidated Balance Sheet 36<br />
<strong>University</strong> Balance Sheet 37<br />
Consolidated Cash Flow Statement 38<br />
Statement <strong>of</strong> Principal Accounting Policies 39-40<br />
Notes to the Accounts 41-65
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
<strong>Annual</strong> <strong>Report</strong>
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Vice-Chancellor’s introduction<br />
Vice-Chancellor’s introduction<br />
Taking stock – looking ahead<br />
The academic year 2005 – <strong>2006</strong> witnessed considerable<br />
achievements for the <strong>University</strong> in all aspects <strong>of</strong> its activity.<br />
Last year the <strong>University</strong> adopted a new and radically revised<br />
Strategic Framework for development over the next decade.<br />
The Strategic Framework 2005-2015 (available at<br />
www.planning.salford.ac.uk) aims to clearly set out how we<br />
intend to pursue our mission as an ‘enterprising university’.<br />
We intend to achieve internationally recognised excellence in:<br />
■ Education for capability.<br />
■ Research for the real world.<br />
■ Partnership with business and the community.<br />
As a leading enterprising university we will:<br />
■ Harness the skills, imagination and enthusiasm <strong>of</strong> our<br />
staff and students to work in close alliances with our<br />
external partners.<br />
■ Be innovative and effective in the application <strong>of</strong> new<br />
knowledge to individual, social and economic<br />
development, working across traditional disciplinary<br />
and pr<strong>of</strong>essional boundaries.<br />
■ Seek continuous improvement in all aspects <strong>of</strong> our activities<br />
and in our responsiveness to the changing needs <strong>of</strong> our<br />
students, staff and external partners.<br />
Our programmes to educate and develop highly employable<br />
graduates and to draw on all those who can benefit from<br />
higher education are also included. As you will also see, our<br />
striking and highly successful engagement with ‘real world<br />
research’ continues to grow and, reflecting a new strategic<br />
goal, we are committed to internationalising all aspects <strong>of</strong><br />
the <strong>University</strong>.<br />
The financial report and accounts show that the underlying<br />
performance <strong>of</strong> the <strong>University</strong> was sound, continuing the<br />
pattern <strong>of</strong> income growth that has been sustained in recent<br />
years. From <strong>2006</strong>-7 our income will be further boosted by the<br />
advent <strong>of</strong> the new undergraduate student fee arrangements.<br />
However, much <strong>of</strong> this extra income will be needed to meet<br />
the substantial rises in staff pay that have been agreed,<br />
following the resolution <strong>of</strong> the lengthy and difficult industrial<br />
dispute in 2005-6 as well our plans for greatly increased<br />
expenditure on our campus.<br />
The first stages <strong>of</strong> this investment have been completed with<br />
the <strong>of</strong>ficial opening <strong>of</strong> our new £22m Mary Seacole building<br />
for the Faculty <strong>of</strong> Health & Social Care by Dame Tanni<br />
Grey-Thompson in May <strong>2006</strong>, and the extensive refurbishment<br />
<strong>of</strong> our Peel Park site. Work now continues to provide new<br />
student housing on campus, our £10m Law School building<br />
and brand new accommodation for our Faculty <strong>of</strong> Arts, Media<br />
& Social Sciences.<br />
■ Adopt a friendly, customer focused ethos, delivering to<br />
students an excellent experience <strong>of</strong> higher education; to<br />
staff, a rewarding and developing career; and to external<br />
partners, an effective and timely response to their<br />
changing needs.<br />
This <strong>Annual</strong> <strong>Report</strong> highlights some <strong>of</strong> the many ways in<br />
which we are already delivering these aspirations, with<br />
examples taken from our widening and increasingly<br />
internationally recognised work in Academic Enterprise.<br />
2<br />
The Mary Seacole building
Vice-Chancellor’s introduction<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Finally, I would like to thank all those staff and students who<br />
made our success over the past year possible. Several long<br />
serving and valued members <strong>of</strong> staff retired during this period<br />
and they leave with our special thanks and best wishes for<br />
the future.<br />
The proposed new Law School<br />
For the past two years we have been intensively examining<br />
how we organise and manage the <strong>University</strong>. The final report<br />
<strong>of</strong> the Deciding the Future group, which I chaired, was<br />
approved by Senate and Council at the end <strong>of</strong> <strong>2006</strong>, following<br />
an intensive period <strong>of</strong> staff consultation on its recommendations.<br />
These are far-reaching and will be progressively implemented<br />
over the next two to three years.<br />
While it is not possible to list all those who have left us, I must<br />
make special mention <strong>of</strong> Dr Malcolm Winton, who retired in<br />
May <strong>2006</strong>. Malcolm spent most <strong>of</strong> his career at <strong>Salford</strong>, for<br />
the last 14 years as our Registrar (only the second in the<br />
<strong>University</strong>’s history). He saw the <strong>University</strong> through some<br />
difficult times and we are all greatly in his debt. He is<br />
succeeded by Dr Adrian Graves who comes to us from Robert<br />
Gordon <strong>University</strong> and who has had a distinguished career in<br />
academic administration in the UK and Australia.<br />
Michael Harloe<br />
December <strong>2006</strong><br />
We recognise that many <strong>of</strong> the ways in which a ‘traditional’<br />
university like <strong>Salford</strong> has operated in the past are no longer<br />
suitable for modern times and especially for a university<br />
committed to enterprise in all that it does. New ways need to<br />
be found both to strengthen and improve our management<br />
and to engage staff and foster a real feeling <strong>of</strong> involvement in<br />
the institution and in helping to shape its future. Staff support<br />
for change is evident in all parts <strong>of</strong> the <strong>University</strong> and now we<br />
shall work hard to deliver it.<br />
3
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Sharing knowledge – forging partnerships<br />
Sharing knowledge - forging partnerships<br />
At the <strong>University</strong> <strong>of</strong> <strong>Salford</strong>, we know that real life presents<br />
daily challenges to business, industry and the community.<br />
That is why we are perfectly positioned to form effective<br />
partnerships – and to share and promote this knowledge and<br />
expertise at every opportunity.<br />
We have always maintained strong links with business and<br />
been rooted in the community. We play a valuable role in<br />
facilitating constructive knowledge sharing amongst<br />
organisations and society. Whether it’s through developing<br />
business partnerships, linking with community groups or<br />
encouraging collaboration amongst industries, the past year<br />
has consolidated our reputation as experts at ‘reaching out’ to<br />
business and the community.<br />
Supporting society<br />
The <strong>University</strong> <strong>of</strong> <strong>Salford</strong> is committed to contributing to the<br />
economic, social and cultural life <strong>of</strong> the community.<br />
Community Finance Solutions (CFS) was established after a<br />
team <strong>of</strong> <strong>Salford</strong> researchers developed a radical model for<br />
providing affordable credit. They use community-based<br />
financial institutions to help individuals, small businesses and<br />
communities acquire financial security.<br />
Now a thriving national organisation, CFS <strong>of</strong>fers practical<br />
solutions to this problem – schemes like Community<br />
Reinvestment Trusts (CRTs), high street shops providing flexible,<br />
affordable loans and banking services. The Trusts provide a<br />
way <strong>of</strong> <strong>of</strong>fering instant and affordable credit to people<br />
who usually have to rely on legal, but unscrupulous<br />
‘doorstep moneylenders’.<br />
There are now ten urban and three rural CRTs in the UK, and<br />
they lend £5m to more than 6,000 people. This year, the<br />
Treasury has made them a priority initiative as part <strong>of</strong> its<br />
financial inclusion strategy.<br />
In November 2005 the CFS team were presented with the<br />
Times Higher Education Supplement Award for research and<br />
development <strong>of</strong> these Trusts.<br />
Speaking about the award, Liz Thomas, Senior Advisor on<br />
Widening Participation for the Higher Education Academy,<br />
said: “This is an exciting and very impressive project that has<br />
had an impact on communities across the UK. It is an<br />
excellent example <strong>of</strong> using research to inform practical<br />
developments at the local level and political change at the<br />
national level.”<br />
Pioneering practices<br />
Our Academic Enterprise division has developed a unique<br />
benchmarking partnership called UPBEAT – <strong>University</strong><br />
Partnership to Benchmark Enterprise Activities and<br />
Technologies. This pioneering assessment tool is led by the<br />
<strong>University</strong> in partnership with four UK universities and a<br />
consortium <strong>of</strong> European universities in order to drive<br />
continuous improvement in all outreach activities to business<br />
and the community.<br />
The project was developed when staff at our Academic<br />
Enterprise division discovered that, apart from monitoring the<br />
financial success <strong>of</strong> outreach work, there was no holistic way<br />
<strong>of</strong> measuring the social and economic benefits <strong>of</strong> a project.<br />
Using a unique four-scale matrix system, UPBEAT has the<br />
ability to accurately assess what difference outreach projects<br />
have made business and the community.<br />
During the past year, the UPBEAT team has worked with<br />
several initiatives to evaluate their success and is in the process<br />
<strong>of</strong> collaborating with another five universities on the project.<br />
4
Sharing knowledge – forging partnerships<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Innovation Cells<br />
CAMPUS<br />
At <strong>Salford</strong>, we continuously develop and extend new<br />
partnership arrangements in order to maintain our position as<br />
an enterprising university at the leading edge. Our ‘Innovation<br />
Cells’ project puts external organisations in touch with staff<br />
and students in order to get good ideas <strong>of</strong>f the ground – and<br />
transform them into realistic business propositions.<br />
The <strong>University</strong>’s business club - the first <strong>of</strong> its kind in the UK -<br />
celebrated its 25 year anniversary in June <strong>2006</strong>. The Campaign<br />
to Promote the <strong>University</strong> <strong>of</strong> <strong>Salford</strong> (CAMPUS) was created in<br />
1981 to promote links between the <strong>University</strong> and its external<br />
partners, and through those links to help support the<br />
<strong>University</strong>’s goals and aspirations.<br />
Each ‘Cell’ – or group – enables small teams <strong>of</strong> like-minded<br />
creative people from across the <strong>University</strong> to develop real<br />
products and services that are ready for market,<br />
Innovation Cells meet regularly and, using the programme’s<br />
unique step-by-step process, consider issues such as problem<br />
solving, idea generation and patenting. Each Cell member has<br />
access to useful business contacts, academic expertise and a<br />
small budget.<br />
The organisation provides members with access to the<br />
<strong>University</strong>’s wide-ranging expertise and facilities, and organises<br />
a varied programme <strong>of</strong> events for them. There are now over<br />
170 organisations enjoying membership and over 300<br />
associates and supporting members. In November 2005<br />
Pr<strong>of</strong>essor Peter Bowker was appointed as CAMPUS’s fourth<br />
director to replace Mike Goldsmith, who retired.<br />
Worldwide partnerships<br />
One member recently launched his idea to commercialise<br />
veterinary prosthetics – the development <strong>of</strong> artificial limbs for<br />
animals. With the support <strong>of</strong> the Innovation Cells, what<br />
started as a good idea has now been developed into a<br />
fully-functioning brand – and has already started trading<br />
with veterinary practices across the UK.<br />
From affordable art and educational games to aqua-natal<br />
classes and childbirth DVDs, in the past year our Innovation<br />
Cells have helped business and industry to really take<br />
advantage <strong>of</strong> our commercially viable products and services.<br />
The <strong>University</strong> develops and maintains many strong links with<br />
organisations abroad as well as in the UK. In the past year, for<br />
example, we have forged partnerships with Cyprus College in<br />
the country’s capital, Nicosia. <strong>Salford</strong> now has an agreement<br />
with the College whereby Cypriot students spend their third<br />
year studying on our English Language, Computer Science or<br />
Music programmes.<br />
In July, the School <strong>of</strong> Media, Music & Performance’s Dr Mick<br />
Wilson was invited to Cyprus College to help establish a new<br />
BA Music Performance degree. <strong>Salford</strong> was selected because<br />
<strong>of</strong> our music programmes’ strong international reputation<br />
and Mick provided expertise in music teaching and<br />
curriculum development.<br />
Artificial limbs for animals<br />
5
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Sharing knowledge – forging partnerships<br />
Leading edge facilities<br />
At <strong>Salford</strong>, we optimise our state-<strong>of</strong>-the-art facilities for the<br />
mutual benefit <strong>of</strong> our partners and ourselves. In February <strong>2006</strong><br />
a new addition to our ever-increasing resources was the Think<br />
Lab, a cutting edge laboratory enabling staff across the<br />
<strong>University</strong> to engage in the latest research supported by<br />
advanced Information and Communications Technology.<br />
Featuring interactive exchanges, virtual displays and video<br />
conferencing, the Think Lab is the most advanced facility <strong>of</strong> its<br />
kind in Europe. It combines futuristic interior design with the<br />
very latest in communication and virtual reality technology.<br />
The brainchild <strong>of</strong> staff from the Institute <strong>of</strong> the Built & Human<br />
Environment and the Information Research Institute, the<br />
£1.3m centre was funded by the Science Research and<br />
Investment Fund.<br />
To begin the process, the KTP team at <strong>Salford</strong> is approached<br />
by a company, based anywhere in the country, that needs help<br />
with a strategic problem – the launch or development <strong>of</strong> a<br />
product, for example.<br />
Once they’ve approached the <strong>University</strong>, a source <strong>of</strong> expert<br />
knowledge is identified – in the form <strong>of</strong> a <strong>University</strong> <strong>of</strong> <strong>Salford</strong><br />
academic –who is going to help them. When the initial<br />
contact between the company and the academic has been<br />
made we develop the proposal for submission to the<br />
Department <strong>of</strong> Trade and Industry. To date, all our<br />
submissions have been approved.<br />
During the past year our KTPs have gone from strength to<br />
strength, with staff and students joining forces with four new<br />
businesses including The Hilly Clothing Company,<br />
manufacturers <strong>of</strong> hi-tech running apparel, and local<br />
wholesalers Valves Instruments Plus.<br />
It has already gained the attention <strong>of</strong> high pr<strong>of</strong>ile business<br />
people, including former BBC broadcaster and North West<br />
Development Agency Director, Felicity Goodey, who sits on the<br />
Think Lab Advisory Group.<br />
Knowledge Transfer Partnerships<br />
<strong>Salford</strong> was one <strong>of</strong> only two universities to pilot Knowledge<br />
Transfer Partnerships (KTPs) exactly 30 years ago. KTPs are<br />
Government-funded three-way collaborations between an<br />
academic, a company that needs their expertise and a recent<br />
graduate recruited to work on a project for that business. It is<br />
the job <strong>of</strong> our Academic Enterprise division to bring all three<br />
together and establish the partnership.<br />
The Think Lab<br />
6
Shaping graduates – supporting society<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Shaping graduates – supporting society<br />
At <strong>Salford</strong>, we’re committed to producing graduates with the<br />
skills, creativity, confidence and adaptability to succeed in the<br />
workplace and make a positive contribution to society.<br />
<strong>Salford</strong> graduates are prominent in business, industry and<br />
non-governmental organisations worldwide. It’s no surprise<br />
that over 90% <strong>of</strong> our graduates gain employment or go on to<br />
further study within six months <strong>of</strong> graduating.<br />
Employability strategy<br />
Our new Employability Strategy is designed to consolidate and<br />
enhance existing initiatives within the <strong>University</strong> and to ensure<br />
that all our students have the opportunity to engage in<br />
learning that enhances their employability.<br />
The Strategy recognises how we have led the way in this<br />
regard and consolidates our long-standing experience<br />
developing opportunities for both work-related and<br />
work-based learning opportunities within our degree<br />
programmes. It also aims to ensure that all <strong>of</strong> our students<br />
have the opportunity to engage in learning that develops their<br />
key enterprise and employability skills.<br />
In addition, the Strategy further develops and enhances good<br />
curriculum design, informed by engagement with employers<br />
and pr<strong>of</strong>essional bodies, as well as access to careers education,<br />
information and guidance; opportunities for volunteering; and,<br />
through the provision <strong>of</strong> structured and supported processes,<br />
personal and pr<strong>of</strong>essional development planning.<br />
The introduction <strong>of</strong> this Strategy therefore builds on existing<br />
good practice at the <strong>University</strong> and demonstrates our ongoing<br />
commitment to the enhancement <strong>of</strong> the employability <strong>of</strong> all<br />
our graduates.<br />
Personal Development Planning<br />
All students at <strong>Salford</strong> are provided with opportunities to<br />
invest in their personal and academic development through a<br />
process called Personal Development Planning (PDP). This<br />
provides a framework within which students are encouraged<br />
to reflect upon their own learning, performance and<br />
achievement and to plan for their personal, educational and<br />
career development.<br />
In the last year we continued implementing processes <strong>of</strong> PDP<br />
in line with the <strong>University</strong>’s aim to make processes available to<br />
all students. The introduction <strong>of</strong> PDP demonstrates our<br />
ongoing commitment to ensuring our graduates are provided<br />
with opportunities to develop the necessary skills required to<br />
become successful ‘lifelong learners’.<br />
Key Skills<br />
Key skills are sometimes referred to as 'transferable skills'.<br />
The ability to articulate, evidence and transfer the key skills<br />
<strong>of</strong> communication, numeracy, information technology, team<br />
work, problem solving and managing one’s own learning,<br />
has been recognised by employers and universities as being<br />
essential to improving employability and supporting personal<br />
development and lifelong learning.<br />
The <strong>Salford</strong> Key Skills Project initiated the development <strong>of</strong><br />
the curriculum to embed key skills in all aspects <strong>of</strong> teaching,<br />
learning and assessment, to ensure our graduates will be<br />
better prepared to succeed in a competitive and fast-moving<br />
job market. This year, work undertaken through the Key Skills<br />
project informed our Employability Strategy.<br />
7
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Shaping graduates – supporting society<br />
Volunteering@<strong>Salford</strong><br />
First destination statistics<br />
Our Volunteering@<strong>Salford</strong> scheme promotes and supports<br />
volunteering by staff and students in local communities.<br />
Volunteering has a number <strong>of</strong> benefits for both staff and<br />
students, including increasing employability, acquiring new<br />
skills and building confidence, and making a difference to<br />
local communities.<br />
Students who have undertaken volunteering placements as<br />
part <strong>of</strong> Independent Learning Modules have spoken <strong>of</strong> having<br />
gained valuable experience, and the majority have continued<br />
to volunteer with the organisations. Volunteering has also<br />
been shown to be popular with employers, (in research<br />
undertaken by TimeBank in 2004). Indeed, 81% <strong>of</strong> employers<br />
surveyed viewed employees who do voluntary work positively.<br />
Our careers advisors collect data on the first destination <strong>of</strong><br />
leavers (as at six months after graduation). The figures for<br />
those who graduated in 2005 entering employment have<br />
remained strong in a graduate market that has not been as<br />
buoyant as the previous year.<br />
Once again, the statistics show a below average level <strong>of</strong><br />
unemployment. This figure is down slightly this year, matched<br />
by an equivalent rise in people going into further study and<br />
training. There continues to be a high proportion <strong>of</strong> <strong>Salford</strong><br />
graduates finding work in the North West region, many with<br />
small and medium sized companies and in the public and<br />
health sectors.<br />
One recent example <strong>of</strong> a Volunteering@<strong>Salford</strong> project is<br />
Summerville Primary School, the first school in <strong>Salford</strong> to be<br />
awarded a Green Flag as an Eco School. Our volunteers<br />
developed a nature area in the school grounds – including a<br />
wildlife pond and woodland walk. The partnership continues<br />
to grow between the school and the <strong>University</strong>, with related<br />
projects in development.<br />
Work is also underway to develop themed volunteering<br />
events and projects, and there are new initiatives to support<br />
student-led volunteering, including environmental volunteering<br />
and an International Conversation Club to support the<br />
relationship between international and home students.<br />
Graduates at the Lowry<br />
8
Nurturing experiences – creating opportunities<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Nurturing experiences – creating opportunities<br />
The <strong>University</strong> <strong>of</strong> <strong>Salford</strong> is committed to providing a top<br />
quality learning and working experience for everyone,<br />
regardless <strong>of</strong> background. We focus on attracting and<br />
retaining all students who are able to benefit from our<br />
excellent learning opportunities.<br />
The last year has provided many opportunities for further<br />
improving the staff and student experience and opening up<br />
new opportunities for learning.<br />
<strong>Salford</strong> Young People’s <strong>University</strong><br />
It was another good year for <strong>Salford</strong> Young People’s <strong>University</strong><br />
(SYPU), our unique residential summer school giving<br />
youngsters who wouldn’t normally consider higher education<br />
a taste <strong>of</strong> university life. This summer an unprecedented 331<br />
young people aged 11 to 15 took part in three programmes.<br />
For the first time, all ten boroughs <strong>of</strong> Greater Manchester<br />
attended the Year 8 programme (ages 11-12), making this the<br />
first regional summer school programme funded by Aimhigher<br />
Greater Manchester. The participants enjoyed courses in<br />
sports, art, performing art and technology and were<br />
supervised by our team <strong>of</strong> 32 student group leaders.<br />
The Year 8 graduation ceremony was again very popular with<br />
over 800 people attending. Paul George, a <strong>Salford</strong> graduate<br />
from Leisure Management, spoke at the graduation about his<br />
life as a world championship body builder and how university<br />
had helped him realise his dreams <strong>of</strong> owning and running<br />
a gym.<br />
Feedback from the young people’s parents revealed that 83%<br />
<strong>of</strong> them had not attended university and that 99% strongly<br />
agreed or agreed that they now felt more confident about<br />
their child going on into higher education.<br />
SYPU is planning to involve undergraduates in a research<br />
programme to track and measure the impact <strong>of</strong> SYPU over the<br />
past seven years. This work will provide a basis for further<br />
development and provide essential data to bid for additional<br />
funding. It will also <strong>of</strong>fer further opportunities for our<br />
undergraduates to gain invaluable work experience and<br />
increase their employability.<br />
Student experience<br />
To reinforce our commitment to providing our students with<br />
the best possible experience during their time at <strong>Salford</strong>, we<br />
have formed a dedicated Student Experience Group. The<br />
Group has been looking at initiatives designed to further<br />
improve students’ overall time with us – during both their<br />
study and their leisure time.<br />
A total <strong>of</strong> 21 Student Liaison Representatives (SLRs) were<br />
appointed for the <strong>2006</strong>-07 academic year. A joint initiative<br />
between the <strong>University</strong> and the Students’ Union, the positions<br />
are funded by our Academic Development Fund and involve<br />
the SLRs being paid for their time. Each SLR acts as a conduit<br />
between their particular School and the wider <strong>University</strong> and<br />
provides valuable feedback on general issues, ensuring that<br />
the voice <strong>of</strong> the students is considered at the strategic<br />
planning stage.<br />
The <strong>University</strong> is also implementing <strong>Salford</strong>’s first ever Student<br />
Experience Survey from October <strong>2006</strong> to provide staff with<br />
valuable information about the student experience. The<br />
Student Experience Survey will comprise two stages –<br />
qualitative (eg focus groups/in-depth interviews) and<br />
quantitative (where students rate services, etc online). The<br />
Survey is intended to help the <strong>University</strong> develop an<br />
understanding <strong>of</strong> our students’ expectations and perceptions.<br />
This, in turn, will enable us to set goals for service<br />
improvement which could be used to monitor progress.<br />
With other initiatives underway, including a Vice-Chancellor’s<br />
newsletter to students, an improved student intranet channel<br />
and a new-look induction pack, the Student Experience Group<br />
continues its work to enhance our students’ time at <strong>Salford</strong>.<br />
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<strong>Annual</strong> <strong>Report</strong> &<br />
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Nurturing experiences – creating opportunities<br />
Staff awards<br />
Innovative courses<br />
At <strong>Salford</strong>, we aim to instil a sense <strong>of</strong> achievement within all<br />
our staff by recognising and rewarding outstanding success.<br />
Every year, dedicated teams <strong>of</strong> staff and individuals throughout<br />
the <strong>University</strong> are presented with merit awards. Teams can<br />
nominate themselves or be nominated by others and<br />
individuals are put forward by their managers. The criteria<br />
include outstanding job performance, achievement <strong>of</strong> a<br />
significant objective, attitude to work and service provided.<br />
Last year’s awards were highly successful, with a large number<br />
<strong>of</strong> strong nominations from both academic and support staff.<br />
Director <strong>of</strong> Personnel Malcolm Willis said: “We were delighted<br />
with the number <strong>of</strong> nominations. It’s all about recognising<br />
and rewarding the teams that have put in the extra effort to<br />
make a difference. The quality <strong>of</strong> the nominations was a real<br />
tribute to all the teams concerned.”<br />
<strong>Salford</strong> is renowned for its relevant, ground-breaking<br />
programmes which effectively prepare students for the world<br />
<strong>of</strong> work. We were the first university in the country to <strong>of</strong>fer a<br />
course in Popular Music and our pioneering Stand-Up Comedy<br />
module boasts Phoenix Nights comedian Peter Kay as one <strong>of</strong><br />
its graduates.<br />
The past year has seen several new additions to our portfolio<br />
<strong>of</strong> innovative courses. New for <strong>2006</strong> is our unique BA<br />
Journalism and War Studies – the only undergraduate degree<br />
combining the two disciplines in the UK. This course combines<br />
the expertise <strong>of</strong> pr<strong>of</strong>essional journalists with one <strong>of</strong> the largest<br />
teams <strong>of</strong> military historians in the country. Ideal for budding<br />
war correspondents, students have access to a fully equipped<br />
modern newsroom with all the latest technology.<br />
We have teamed up with Preston-based Myerscough College<br />
to launch a new foundation degree in Watersports Leisure<br />
Management. The degree was developed due to the job<br />
opportunities created by the popularity <strong>of</strong> England’s northern<br />
lakes. The course will focus on the business side <strong>of</strong> the<br />
industry, covering issues such as book-keeping, safety<br />
and the environment.<br />
Team awards<br />
<strong>Salford</strong> is now one <strong>of</strong> only a handful <strong>of</strong> universities <strong>of</strong>fering a<br />
course in Zoology, the study <strong>of</strong> animals and their biological<br />
processes. The degree features practical training and students<br />
are encouraged to take a placement year – for which no<br />
tuition fees are payable for new students – with a major<br />
company linked to a public health laboratory, wildlife trust or<br />
research organisation.<br />
10
Maximising research – tackling issues<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
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Maximising research – tackling issues<br />
At <strong>Salford</strong>, we are renowned for carrying out excellent<br />
research in multidisciplinary areas <strong>of</strong> study. Our academics<br />
have never been afraid <strong>of</strong> embracing real-world problems by<br />
utilising our highly-rated research capabilities to provide<br />
practical solutions that make a positive difference.<br />
In September <strong>2006</strong> and for the second year running, The<br />
Sunday Times rated <strong>Salford</strong> as a Gold Standard <strong>of</strong> Excellence<br />
for its ‘elite’ research in the field <strong>of</strong> the Built Environment. The<br />
ranking was based on the <strong>University</strong>’s Built & Human<br />
Environment (BuHu) Research Institute’s 5* rating in both the<br />
1996 and 2001 Research Assessment Exercise (RAE). BuHu is<br />
the only built environment research institute to achieve this<br />
status – and the largest in its field in the UK.<br />
This consolidates our reputation for outstanding research<br />
capability. We are in the top third <strong>of</strong> universities for research<br />
and are one <strong>of</strong> only 32 to be awarded the highest possible<br />
rating <strong>of</strong> 6* for aspects <strong>of</strong> our research. In addition to BuHu,<br />
our Informatics Research Institute (IRIS) achieved this status.<br />
A 6* rating is awarded when the majority <strong>of</strong> work in a<br />
research area assessed in the last two RAEs has been <strong>of</strong><br />
international importance.<br />
More generally, this year saw the culmination <strong>of</strong> a five year<br />
effort during which the number <strong>of</strong> research active staff has<br />
increased by more than 50%, whilst maintaining our high<br />
quality level. During the past year our researchers have<br />
undertaken many high-pr<strong>of</strong>ile research projects, with a<br />
particular focus on current and emergent real life issues.<br />
Model car to solve energy crisis<br />
With the pressure on to find alternatives to petrol and diesel<br />
which add to global warming, a tiny model car prototype is<br />
helping our scientists to develop life-sized hydrogen-fuelled<br />
cars.<br />
Pr<strong>of</strong>essor Keith Ross and a team from the Institute for<br />
Materials Research, were awarded a £500,000 European<br />
Commission grant in April to investigate ways to store<br />
hydrogen in vehicles.<br />
They developed the model to show a possible way <strong>of</strong> keeping<br />
the gas - which could take industry one step closer to<br />
manufacturing hydrogen cars.<br />
Keith said: “Hydrogen is already known as a potentially safer,<br />
more economical and more environmentally-friendly<br />
alternative to petrol-powered cars.<br />
“We will be co-ordinating international research over the next<br />
five years to solve the one remaining problem – how to store<br />
hydrogen on board a car. This represents the final piece <strong>of</strong><br />
the jigsaw in the quest to manufacture eco-friendly cars.”<br />
Pr<strong>of</strong>essor Keith Ross with his hydrogen powered car<br />
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<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Maximising research – tackling issues<br />
Best foot forward for the MoD<br />
New development in the fight against super-bugs<br />
Our researchers are helping the Ministry <strong>of</strong> Defence (MoD) to<br />
improve things for soldiers’ feet and backs – a project which<br />
could ultimately save their lives in combat situations.<br />
Earlier this year a team <strong>of</strong> <strong>Salford</strong> researchers invented a<br />
unique coating to be used in the fight against antibioticresistant<br />
super-bugs such as MRSA.<br />
Scientists from the Institutes <strong>of</strong> Health & Social Care Research<br />
(IHSCR) and Materials Research (IMR) have worked with<br />
machines, computers and human volunteers to enhance the<br />
army’s combat footwear and backpacks in order to improve<br />
infantry performance.<br />
The team, headed by Pr<strong>of</strong>essor David Sheel, devised a novel<br />
coating system which, when applied to a surface, forms a<br />
durable coating that kills bacteria within minutes. What’s<br />
more, the coating continues to destroy bacteria for a long<br />
period afterwards due to its ability to ‘regenerate’.<br />
The results have recently been submitted to the MoD and<br />
<strong>University</strong> staff anticipate it won’t be too long before British<br />
foot soldiers across the globe are benefiting from<br />
biomechanically proven boot and backpack designs.<br />
Regeneration occurs when ultraviolet rays - present in sunlight<br />
- are used on the surface for a few hours to return the<br />
antibacterial effect. The coating will then continue to kill<br />
bacteria alighting on the surface.<br />
The Institute <strong>of</strong> Materials Research’s Dr Moji Moatamedi led<br />
the team investigating footwear performance.<br />
“Our brief was to study how tread patterns – the intricate<br />
design on outer shoe soles – affect the performance <strong>of</strong><br />
soldiers’ combat boots. The MoD gave us five different boot<br />
designs to compare and contrast. From that information, we<br />
were able to recommend the most effective tread pattern.”<br />
The team used machinery to simulate the human foot and<br />
measure how each boot design responded to skidding on s<strong>of</strong>t<br />
surfaces like mud, sand and snow. This information was then<br />
translated into a 3D computer simulation.<br />
The coating is extremely durable despite being only a few tens<br />
<strong>of</strong> nanometres thick. It also resists wear and tear which would<br />
compromise many other antibacterial coatings.<br />
With recent publicity concerning MRSA and the ineffectiveness<br />
<strong>of</strong> many hospitals in maintaining regular cleaning practices,<br />
this technology <strong>of</strong>fers a simple solution.<br />
David is now exploring how this technology can be spread.<br />
He said: “This substance can be used in areas where biocidal<br />
surfaces are beneficial; such as hospitals, where it could help<br />
to make a real difference to patients.”<br />
12<br />
Biomechanically proven boot
Maximising research – tackling issues<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
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Parasite researchers visit ‘ro<strong>of</strong> <strong>of</strong> the world’<br />
Skin-to-skin contact affects babies’ futures<br />
In May a team <strong>of</strong> <strong>Salford</strong> researchers visited Tibet to help the<br />
Chinese Government to save lives in semi-nomadic Tibetan<br />
communities through field-work tracking the spread <strong>of</strong> the<br />
life-threatening parasite Echinococcus.<br />
The Biosciences Research Institute team discovered that the<br />
parasite is widespread among people in the region known as<br />
the ‘ro<strong>of</strong> <strong>of</strong> the world’.<br />
The scientists investigated how Echinococcus is spread by<br />
infected dogs, livestock and small mammals to the human<br />
population. The parasite causes hydatid cysts which may form<br />
in the brain, bones, lungs or liver. It can lie dormant for up to<br />
20 years, making it difficult to detect in areas which have poor<br />
access to modern medical facilities.<br />
The team are currently reporting their work to the Chinese<br />
Government which has made tackling the parasite a top<br />
priority for health improvement in western China.<br />
Our midwifery lecturer Mary Price received her doctorate in<br />
August for research into cuddling.<br />
Mary, who teaches at the School <strong>of</strong> Health Care Pr<strong>of</strong>essions,<br />
spent five years studying mother and baby relationships<br />
at Rochdale Infirmary to see what effect early physical<br />
contact has.<br />
She found that there are huge benefits to be had by mothers<br />
making skin-to-skin contact with their babies – especially in<br />
the hour just after birth.<br />
She believes that without this initial contact a child’s whole<br />
future life could be affected. Her findings have been adopted<br />
by Rochdale Infirmary’s maternity unit and she hopes they will<br />
soon be spread to other hospitals across the country.<br />
Since the story has been released in the media, Mary has been<br />
in high demand, with articles published in national<br />
newspapers and even as far away as Mumbai and Turkey;<br />
meaning that even more hospitals could adopt her findings.<br />
At <strong>Salford</strong>, we are committed to furthering the<br />
Mary Price and the importance <strong>of</strong> skin-to-skin contact<br />
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<strong>Annual</strong> <strong>Report</strong> &<br />
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Maximising research – tackling issues<br />
New game for Ordsall Hall<br />
Visitors to <strong>Salford</strong>’s historic Ordsall Hall can now discover even<br />
more about the way life would have been in Tudor times,<br />
thanks to a new game from <strong>Salford</strong> designers.<br />
The new game allows visitors to walk around a virtual model<br />
<strong>of</strong> the hall and examine objects. Each object is accompanied<br />
by information to help visitors gain a real appreciation <strong>of</strong> life in<br />
a Tudor manor house.<br />
For the more anarchic visitors there is also a part <strong>of</strong> the game<br />
which allows people to run around the hall in the role <strong>of</strong> an<br />
archer, shooting targets and scoring points.<br />
The team believe that this provides visitors with a more<br />
accessible and fun way <strong>of</strong> learning about Ordsall Hall’s exhibits<br />
- especially for the numerous school parties who go to the hall<br />
each year.<br />
Ordsall Hall<br />
Programme Leader for the Master’s Programme in Creative<br />
Games, Mathias Fuchs, said: "Projects like this are part <strong>of</strong> a<br />
major growth industry known as ‘serious games’. They really<br />
help make museum exhibits more effective and more fun.”<br />
14
Thinking globally – broadening horizons<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
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Thinking globally – broadening horizons<br />
At <strong>Salford</strong> we are commited to furthering the internationalisation<br />
<strong>of</strong> the <strong>University</strong> and encouraging everyone to ‘think<br />
internationally’ in all their activities. Whether it’s through<br />
making the curriculum and our research more international,<br />
developing partnership arrangements with overseas institutions<br />
or establishing a regional presence abroad, internationalisation<br />
is one <strong>of</strong> our major priorities.<br />
The past year has consolidated the work <strong>of</strong> our International<br />
Strategy Committee, with a number <strong>of</strong> positive international<br />
developments within the <strong>University</strong>.<br />
Top quality for European exchanges<br />
In April we received an internationally recognised award for<br />
the high quality <strong>of</strong> our European exchange programmes, one<br />
<strong>of</strong> only 12 in the UK and 38 across the whole <strong>of</strong> Europe.<br />
The European Quality (E-Quality) Label recognises the<br />
<strong>University</strong>’s excellent management and promotion <strong>of</strong> the<br />
Erasmus programme, the European Commission’s mobility<br />
programme for higher education students, teachers and<br />
institutions.<br />
<strong>Salford</strong> branches out to China<br />
Earlier this year <strong>Salford</strong> expanded its business activity to<br />
Chengdu, South West China. The <strong>University</strong> now develops and<br />
manages networks and partnerships in Chengdu to enhance<br />
its pr<strong>of</strong>ile in teaching and applied research. It also supports<br />
new initiatives and provides the <strong>University</strong> with regular news<br />
and updates about educational developments<br />
in China.<br />
The initiative – which is in partnership with <strong>Salford</strong> City<br />
Council – is running as part <strong>of</strong> the China-Britain Business<br />
Council’s Launchpad scheme, which helps British organisations<br />
do business in China.<br />
Mr Xu Dongsheng (Tiger) was appointed as Project Manager<br />
<strong>of</strong> the venture. Formerly Head <strong>of</strong> Foreign Affairs at the Office<br />
for British Higher Education Programmes and the Chinese<br />
Service Centre for Scholarly Exchange, Tiger will be responsible<br />
for overseeing all <strong>of</strong> the <strong>University</strong>’s activity in China.<br />
The E-Quality assessment panel named <strong>Salford</strong> as a ‘dynamic<br />
organisation’ for the administration and promotion <strong>of</strong><br />
Erasmus. In particular, the ‘excellent materials’, ‘good use <strong>of</strong><br />
ICT’ and the ‘daily message facility’ were commended.<br />
In recognising the <strong>University</strong>’s award, David Hibler, Assistant<br />
Director <strong>of</strong> the UK Socrates-Erasmus Council, said: "The<br />
European E-Quality Label provides wider recognition <strong>of</strong> the<br />
work which universities undertake for Erasmus and European<br />
activities. The quality <strong>of</strong> the applications was high, and we<br />
hope that this award will contribute to raising the pr<strong>of</strong>ile <strong>of</strong><br />
the Erasmus programme."<br />
Mr Xu Dongsheng (Tiger)<br />
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<strong>Annual</strong> <strong>Report</strong> &<br />
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Thinking globally – broadening horizons<br />
<strong>Salford</strong> welcomes Malaysian research dignitaries<br />
United nations<br />
A host <strong>of</strong> dignitaries and higher education chiefs were at the<br />
<strong>University</strong> in June for a major event at which top UK and<br />
Malaysian universities launched a new research collaboration<br />
initiative. Political figures and university vice-chancellors<br />
convened for the International Conference <strong>of</strong> the Malaysian<br />
Research Group (MRG), which this year was hosted by <strong>Salford</strong>.<br />
MRG is a network <strong>of</strong> Malaysian researchers worldwide.<br />
The event culminated in a ceremony, at which the <strong>University</strong> <strong>of</strong><br />
<strong>Salford</strong> signed a memorandum <strong>of</strong> understanding with several<br />
Malaysian universities, pledging to collaborate on future<br />
academic research activity. The agreement is aimed at<br />
strengthening research ties between <strong>Salford</strong> and its<br />
counterparts in Malaysia.<br />
Malaysia’s Government is keen to develop the country as a<br />
regional educational research hub and the conference will<br />
explore this potential. In addition, Brian Iddon, MP for Bolton<br />
South East, delivered an opening speech on the opportunities<br />
and challenges facing the UK and international academic<br />
research communities.<br />
Vice-Chancellor Pr<strong>of</strong>essor Michael Harloe, said: “We are<br />
delighted to host this event and to have been chosen as a<br />
preferred partner for research collaboration. This is recognition<br />
<strong>of</strong> our world-class research standing and we look forward to<br />
working further with our Malaysian partners on this important<br />
and groundbreaking initiative.”<br />
Our inaugural Overseas Consultants’ Conference in March<br />
helped to reinforce <strong>Salford</strong>’s commitment to students from<br />
outside the UK who choose to study here with us.<br />
International consultants from Bolivia, Bulgaria, China, Cyprus,<br />
Hong Kong, India, Jordan, Malaysia, Nigeria and Turkey were<br />
invited for the five day event to learn the latest about student<br />
life and the <strong>University</strong>’s programmes in order that they can<br />
<strong>of</strong>fer advice to those around the world who want to come and<br />
study in the UK.<br />
The <strong>University</strong> employs experienced advisors throughout the<br />
world from Amman to Zhejiang to help students select the<br />
most appropriate programme <strong>of</strong> study, apply for a visa and<br />
complete the application process.<br />
<strong>Salford</strong> staff top the jet-set<br />
<strong>Salford</strong> came top <strong>of</strong> all UK universities in July for the number<br />
<strong>of</strong> our academic staff who travel to European partner<br />
institutions to deliver Erasmus sponsored guest lectures.<br />
Figures from UK Socrates-Erasmus, the scheme which<br />
encourages student and teacher travel, revealed that a total <strong>of</strong><br />
49 <strong>Salford</strong> academics took part in a teaching staff exchange<br />
in 2003-04.<br />
The data included 146 higher education institutions active in<br />
Erasmus exchanges that year, <strong>of</strong> which 92 sent fewer than<br />
seven staff and 30% sent between eight and 19 staff.<br />
Exchanges are part <strong>of</strong> a proactive approach by the <strong>University</strong><br />
to encourage both staff and students to develop an<br />
international outlook and dimension to their work.<br />
16<br />
Conference <strong>of</strong> the Malaysian Research Group<br />
Piera Gerrard, Head <strong>of</strong> the <strong>University</strong>’s International Relations<br />
Office, said: “We are delighted to be leading the way in this<br />
area with so many <strong>of</strong> our staff developing European links and<br />
travelling overseas. We are keen to encourage our new<br />
students to do the same - they won’t have to pay any tuition<br />
fees for the 12 months they work during a placement<br />
year abroad.”
Thinking globally – broadening horizons<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Academic advises French Prime Minister<br />
Asia-Link<br />
In May a <strong>Salford</strong> academic was invited to join a commission<br />
organised by the Prime Minister <strong>of</strong> France to reform the<br />
university system.<br />
Pr<strong>of</strong>essor John Keiger was appointed by the Prime Minister,<br />
Dominique de Villepin, to help counter the high levels <strong>of</strong><br />
unemployment amongst the French youth. This is a major<br />
issue in France and has recently led to protests and disorder on<br />
the streets <strong>of</strong> Paris.<br />
John was appointed because <strong>of</strong> his in-depth knowledge <strong>of</strong> the<br />
British and French education systems. He was the only<br />
foreigner on the group which is made up <strong>of</strong> vice-chancellors,<br />
industrialists, academics and a journalist. The commission<br />
interviewed student groups, trade unions, industrialists and<br />
civil servants before submitting a report in June.<br />
Mission to China<br />
In May Vice-Chancellor Pr<strong>of</strong>essor Michael Harloe accompanied<br />
Minister for Higher Education Bill Rammell MP to China. The<br />
delegation, which also included the Vice-Chancellors <strong>of</strong><br />
Nottingham and Liverpool Universities, visited Beijing and<br />
Shanghai, as well as Hong Kong, where the Minister signed an<br />
agreement pledging closer cooperation with Hong Kong<br />
universities. The trip will be followed up in November, when<br />
Pr<strong>of</strong>essor Harloe and Pro-Vice-Chancellor for Teaching and<br />
Learning, Jane Hanstock have been invited to take part<br />
in a mission to Hong Kong strengthening university-touniversity<br />
links.<br />
In March the School <strong>of</strong> Art & Design took part in the<br />
prestigious international design management symposium, D2B<br />
in Shanghai. The conference brought together design<br />
management academics and pr<strong>of</strong>essionals from across<br />
the world.<br />
Our involvement was the culmination <strong>of</strong> an Asia-Link<br />
Programme led by <strong>Salford</strong> in which the <strong>University</strong> worked with<br />
Copenhagen Business School, Denmark; Politecnico di Milano,<br />
Italy; <strong>University</strong> <strong>of</strong> Stockholm, Sweden; Tsinghua <strong>University</strong>, P.R.<br />
China; Shanghai Jiao Tong <strong>University</strong>, P.R. China; Harbin<br />
Institute <strong>of</strong> Technology, P.R. China; King Mongkut’s Institute <strong>of</strong><br />
Technology, Ladkrabang, Thailand – amongst the top<br />
universities in their respective countries.<br />
The Europe-Asia Design Management Network was a unique<br />
two year EU funded project focussing on curriculum<br />
development <strong>of</strong> postgraduate design management<br />
programmes within EU and Asia; and to foster sustainable<br />
educational links between EU, Chinese and Thai higher<br />
education institutions. As well as the D2B symposium, our<br />
involvement included the reciprocal exchange <strong>of</strong> academic<br />
staff in order to assess teaching and develop new Masters<br />
taught modules in International Design Management.<br />
17
<strong>Annual</strong> <strong>Report</strong> &<br />
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Encouraging recognition – celebrating success<br />
Encouraging recognition – celebrating success<br />
‘Dream come true’ for fashion student<br />
Students scoop top prize at TV awards<br />
<strong>Salford</strong> student Laura Kay has designs on a long career in<br />
fashion after scooping a top national award.<br />
Laura, from Burnley, took a step closer to fulfilling her dream<br />
<strong>of</strong> becoming a top designer when she was crowned Clothes<br />
Show Live Young Designer <strong>of</strong> the Year in December. Asked to<br />
design an outfit inspired by the glitz and glamour <strong>of</strong> Las<br />
Vegas, Laura beat <strong>of</strong>f competition from 300 other entrants<br />
and was in the line-up <strong>of</strong> just ten wannabe designer finalists.<br />
Her victory means she will have a head start to a career in<br />
fashion design, with £2,000 prize money and a two-week<br />
internship with leading British designer Julien MacDonald.<br />
Public servant success<br />
Complementary therapist Peter Mackereth won the<br />
Guardian newspaper’s Public Servant <strong>of</strong> the Year 2005<br />
award in November.<br />
A group <strong>of</strong> <strong>Salford</strong> media students was awarded a top prize at<br />
the prestigious annual Royal Television Society Awards at the<br />
Midland Hotel in Manchester in November.<br />
The successful students – all budding filmmakers, presenters<br />
and journalists – joined the ranks <strong>of</strong> the BBC’s Gordon Burns<br />
as they won Best Regional Current Affairs Programme and<br />
Best Newcomer Award.<br />
Master’s degree documentary, Displaced, a film about Russian<br />
immigrants living in Manchester, beat the BBC into second<br />
place by winning Best Regional Current Affairs Programme.<br />
The Society broke with tradition for Best Newcomer by<br />
awarding joint first place to all three Channel M nominations -<br />
Laura Fogg (reporter, Channel M News), Gerard McLaughlin<br />
(presenter, Interference & Reel North) and the Reel North<br />
Production Crew 2004/05. The latter two nominations<br />
originate from <strong>Salford</strong> <strong>University</strong>, whilst Laura Fogg accepted<br />
the award on behalf <strong>of</strong> Channel M News.<br />
Peter, who splits his work between the School <strong>of</strong> Community,<br />
Health Sciences & Social Care, at <strong>Salford</strong>, and Manchester’s<br />
Christie Hospital, scooped the prestigious national honour at<br />
an awards ceremony.<br />
The prize was for his work at the Christie Hospital, where he<br />
has single-handedly transformed the complementary therapy<br />
service for cancer patients.<br />
Peter said: “I’m totally bowled over and honoured. After<br />
beavering away for years, this award is the most wonderful<br />
affirmation that we’re providing something patients want,<br />
value and see as part <strong>of</strong> their treatment at the Christie.”<br />
The Royal Television Society Awards<br />
18
Encouraging recognition – celebrating success<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Young Investigator brings WWII documents to life<br />
Julie’s design for life<br />
A <strong>Salford</strong> scientist was awarded the title <strong>of</strong> Outstanding Young<br />
Investigator in January for his groundbreaking work providing<br />
instant access to digitally restored archives - including those<br />
from Second World War Nazi concentration camps.<br />
The Informatics Research Institute’s Dr Apostolos<br />
Antonacopoulos created digital technology able to analyse<br />
paperwork from the Polish Stutth<strong>of</strong> concentration camp,<br />
extract historical data and create a ‘virtual archive’ – so<br />
archivists can access information at the click <strong>of</strong> a button. The<br />
project is the outcome <strong>of</strong> EU funding.<br />
Apostolos is the first UK researcher to have won the title. He<br />
said: “Previously, archivists have had to search through<br />
mountains <strong>of</strong> paperwork to retrieve information. Our<br />
technology allows them to retrieve this information<br />
electronically in a fraction <strong>of</strong> the time.”<br />
When Julie Trueman decided to change careers from doctor to<br />
interior designer she could never have guessed that success in<br />
her new field would come so quickly.<br />
But in May, the <strong>Salford</strong> interior design student found out that<br />
she’d won the prestigious RSA (Royal Society for the<br />
Encouragement <strong>of</strong> Arts, Manufactures and Commerce) award<br />
for best Design for Patient Safety.<br />
Julie was presented with a £3,000 cheque to spend on future<br />
projects. What’s more, she also had the bed that she created<br />
as part <strong>of</strong> an innovative new hospital ward shown on the front<br />
cover <strong>of</strong> the April edition <strong>of</strong> the RSA journal.<br />
Sexual health ‘mystery shoppers’ win NHS award<br />
Stutth<strong>of</strong> was one <strong>of</strong> the few concentration camps whose<br />
paper records were not destroyed by the SS. The number <strong>of</strong><br />
victims is estimated at 85,000.<br />
A ‘mystery shopper’ initiative in which 19 young people went<br />
undercover to put sexual health services in Tameside and<br />
Glossop to the test won a Greater Manchester NHS Award<br />
in April.<br />
The <strong>University</strong> <strong>of</strong> <strong>Salford</strong> spin-out company, Contraception<br />
Education, was the sexual health trainer for the Tameside and<br />
Glossop Mystery Shopper Project. Organisers were presented<br />
with a finalist award in the Stop, Look and Listen category at a<br />
ceremony at the New Century Hall, Manchester.<br />
The ‘mystery shoppers’, a team <strong>of</strong> 19 young people, were<br />
trained in sexual health by the <strong>University</strong>’s nursing lecturer,<br />
Barbara Hastings-Asatourian. They then visited a series <strong>of</strong><br />
drop-in centres in the area – acting as ordinary members <strong>of</strong><br />
the public in order to rate the service they received.<br />
Dr Apostolos Antonacopoulos awarded the title <strong>of</strong><br />
Outstanding Young Investigator<br />
The young people’s findings resulted in seven key<br />
recommendations for the improvement in services in the area.<br />
This report, based on the mystery shoppers’ experiences and<br />
observations, has been incorporated into NHS plans.<br />
19
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Encouraging recognition – celebrating success<br />
Sibling success for annual fund<br />
World Cup footballer graduates from <strong>Salford</strong><br />
Our <strong>2006</strong> <strong>Annual</strong> Fund student callers pledged a whopping<br />
£60,396 for the <strong>University</strong> in March – and brother and sister<br />
Roy and Sonia Chohan drummed up record-breaking amounts.<br />
Together, the Chohans raised £7,200 worth <strong>of</strong> pledges, and<br />
were each awarded Caller <strong>of</strong> the Week during the six week<br />
telephone campaign to raise cash pledges from ex-students.<br />
It might not have equalled the pressure <strong>of</strong> having over a billion<br />
fans cheering him on, but for former Chinese international<br />
footballer Maozhen Su, receiving his MSc in Management in<br />
July rated as one <strong>of</strong> his most memorable achievements.<br />
And he’s now hoping his new-found skills will help him<br />
become the new Alex Ferguson.<br />
The funds raised by the team – including the Chohans – is<br />
already benefitting students and staff by contributing towards<br />
scholarships and bursaries; student clubs; buildings and<br />
facilities; and academic research, among other things.<br />
Maozhen had an illustrious playing career, making over 50<br />
appearances for his country and playing in China’s first ever<br />
World Cup finals game in 2002. He spent most <strong>of</strong> his career<br />
playing in China but had trials with Manchester United.<br />
His familiarity with the city and recommendations from friends<br />
led him to start a Graduate Diploma in Management and<br />
English in 2004 after injuries forced him to retire from football.<br />
He said: “I was so happy at <strong>Salford</strong> that I thought I should stay<br />
for my Master’s. My next step is to use my new management<br />
skills to become the greatest coach in China. My target is<br />
to be as good as Sir Alex Ferguson, Jose Mourinho and<br />
Arsene Wenger.”<br />
The Chohans raised £7,200 worth <strong>of</strong> pledges<br />
20<br />
Former Chinese international footballer Maozhen Su,
Encouraging recognition – celebrating success<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Financial Statements<br />
for the year ended 31st July 2004<br />
<strong>Salford</strong> student launches glossy African magazine<br />
A journalism student from the <strong>University</strong> <strong>of</strong> <strong>Salford</strong> launched<br />
the first ever African celebrity magazine in the UK in August.<br />
Student editor Gitau wa Njenga was been backed by the<br />
<strong>University</strong> to develop JAMBO magazine – a 68 page full colour<br />
glossy featuring African content including news and features<br />
on celebrity gossip, fashion, lifestyle and health.<br />
The first run <strong>of</strong> 15,000 issues were be distributed in over 200<br />
outlets across the UK, mainland Europe, sub-saharan Africa<br />
and America for the first issue. The launch is being supported<br />
by extensive investment and circulation is expected to reach<br />
25,000 per month after the first quarter.<br />
Gitau said: “JAMBO will put African celebrities on the<br />
international map through first-class photo-journalism. Our<br />
aim is to reach diverse African communities around the globe<br />
who seek an intelligent read that gives them a broader<br />
perspective on the world.”<br />
Front cover <strong>of</strong> the first issue <strong>of</strong> JAMBO<br />
Student editor Gitau wa Njenga<br />
21
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Statistics<br />
Statistics<br />
Student numbers by mode<br />
2005/06<br />
2004/05<br />
Full<br />
time<br />
Part<br />
time<br />
Total<br />
Full<br />
time<br />
Part<br />
time<br />
Total<br />
Undergraduate<br />
12,915<br />
3,235<br />
16,150<br />
12,854<br />
2,982<br />
15,836<br />
Postgraduate – taught<br />
1,145<br />
2,311<br />
3,456<br />
1,105<br />
2,540<br />
3,645<br />
Postgraduate – research<br />
318<br />
260<br />
578<br />
309<br />
309<br />
618<br />
Total<br />
14,378<br />
5,806<br />
20,184<br />
14,268<br />
5,831<br />
20,099<br />
Full-time students by domicile<br />
2005/06<br />
2004/05<br />
Undergraduate<br />
Home<br />
12,222<br />
O/seas<br />
693<br />
Total<br />
12,915<br />
Home<br />
12,028<br />
O/seas<br />
826<br />
Total<br />
12,854<br />
Postgraduate – taught<br />
Postgraduate – research<br />
699<br />
159<br />
446<br />
159<br />
1,145<br />
318<br />
565<br />
150<br />
540<br />
159<br />
1,105<br />
309<br />
Total<br />
13,080<br />
1,298<br />
14,378 12,743<br />
1,525<br />
14,268<br />
Male:Female student ratio among all full-time undergraduates and postgraduates<br />
Sex<br />
2005/06 2004/05<br />
Male<br />
Female<br />
48%<br />
53%<br />
48%<br />
53%<br />
Known destinations <strong>of</strong> UK/EU graduates<br />
Destination<br />
2005 Leavers<br />
2004 Leavers<br />
Entered employment<br />
Employment and study<br />
Further study or training<br />
Believed unemployed<br />
70.5%<br />
12.5%<br />
12.5%<br />
4.5%<br />
71.3%<br />
12.7%<br />
10.2%<br />
5.8%<br />
22
Financial Statements<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Financial Statements<br />
for the year ended 31st July <strong>2006</strong><br />
23
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Membership <strong>of</strong> the Council 2005 - 06<br />
Membership <strong>of</strong> the Council 2005-06<br />
Ex-<strong>of</strong>ficio Members<br />
Chancellor<br />
Sir Martin Harris<br />
Pro-Chancellor<br />
Mr R Batters<br />
Vice-Chancellor<br />
Pr<strong>of</strong>essor M Harloe<br />
Pro-Vice-Chancellors<br />
Pr<strong>of</strong>essor P S Barrett<br />
Mr M Garrity<br />
Miss H J Hanstock<br />
Pr<strong>of</strong>essor J A Powell<br />
Representative Members<br />
<strong>Salford</strong> City Council<br />
Councillor W B Pennington<br />
Association <strong>of</strong> Greater Manchester Authorities<br />
Councillor D Lancaster<br />
Appointed Members (Court)<br />
Dr N Chamberlain<br />
Ms F Goodey<br />
Mr D C Longley<br />
Dr C Tyler<br />
Mr C Wells (Vice-Chair <strong>of</strong> Council and Chair <strong>of</strong> Estates<br />
Committee)<br />
Appointed Members (Senate)<br />
Pr<strong>of</strong>essor S Donnelly<br />
Mrs M Butler<br />
Pr<strong>of</strong>essor S Donnelly<br />
Pr<strong>of</strong>essor B Longhurst<br />
Pr<strong>of</strong>essor C A Roberts<br />
Pr<strong>of</strong>essor D Storey<br />
Pr<strong>of</strong>essor R Towell<br />
Co-opted Members<br />
Members co-opted by the Council<br />
Mr T Britten<br />
Ms L Clarke<br />
Mr A Gibson (Chair <strong>of</strong> Council)<br />
Mr J Greenough (Chair <strong>of</strong> Finance Committee)<br />
Mrs J Procter (Chair <strong>of</strong> Personnel Committee)<br />
Mr N Renfrew<br />
Mr K Simmons (Chair <strong>of</strong> Audit Committee)<br />
Mr J C Willis<br />
One member <strong>of</strong> the Academic Related Staff <strong>of</strong><br />
the <strong>University</strong><br />
Mrs C Hughes<br />
One member <strong>of</strong> the Non-Academic Staff <strong>of</strong> the<br />
<strong>University</strong> not paid on academic related scales<br />
Miss J Yates<br />
Two members <strong>of</strong> the Students’ Union<br />
Ms T Robert<br />
Ms S Winter<br />
24
Financial Review<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Financial Review<br />
Scope <strong>of</strong> the Financial Statements<br />
1 The Financial Statements comprise the consolidated<br />
(Group) results <strong>of</strong> the <strong>University</strong> <strong>of</strong> <strong>Salford</strong> (<strong>University</strong>) and<br />
its subsidiary undertakings. The Group structure is set out<br />
on page 26.<br />
Income and Expenditure Account<br />
2 The Group Income and Expenditure for the years to 31<br />
July are summarised as follows:-<br />
2005-06<br />
Restated<br />
2004-05<br />
£m £m<br />
Income 146.8 141.4<br />
Expenditure – Recurrent 145.5 141.5<br />
Surplus/(Deficit) before Arts &<br />
Media Development Costs 1.3 (0.1)<br />
Expenditure – Arts & Media<br />
Development Costs 3.9 -<br />
(Deficit) before Exceptional<br />
Property Costs and Company<br />
Disposals (2.6) (0.1)<br />
3 The <strong>University</strong>’s income in 2005-06 rose by £5.4m (3.8%)<br />
compared with the previous year. The main increases were<br />
in Funding Council grants and education contracts with<br />
the National Health Service.<br />
4 Recurrent Expenditure increased by £4.0m (2.8%). Staffing<br />
costs, excluding the cost <strong>of</strong> early retirements and voluntary<br />
severance, rose by £2.8m (3.5%) reflecting annual pay<br />
increases and internal promotions. The recurrent pay bill<br />
represents some 58.4% <strong>of</strong> expenditure which is slightly<br />
less than the average for the sector. There was a fall <strong>of</strong><br />
£0.8m in retirement and severance costs. Other Operating<br />
Expenses increased by £1.0m (2.1%).<br />
5 There was, however, expenditure <strong>of</strong> £3.9m relating to the<br />
development costs on a proposed Arts and Media Centre.<br />
The scheme is currently under review due to a need to<br />
control costs. In the light <strong>of</strong> this, capitalisation <strong>of</strong><br />
expenditure is not currently considered appropriate.<br />
6. The underlying result for the year, a Surplus <strong>of</strong> £1.3m<br />
before Arts & Media development costs and exceptional<br />
charges, represents a sound performance. Exceptional<br />
charges <strong>of</strong> £1.6m related to the impairment costs and<br />
demolition <strong>of</strong> a number <strong>of</strong> redundant buildings. The<br />
Group’s result assessed on the basis <strong>of</strong> historical cost, that<br />
is excluding depreciation charges which result from<br />
property valuations, was a deficit <strong>of</strong> £2.4m (2005: surplus<br />
£1.5m). The result has reduced income and expenditure<br />
reserves excluding pension liabilities to £39.3m which<br />
exceeds the net pension liability <strong>of</strong> £26.3m leaving net<br />
reserves <strong>of</strong> £13m.<br />
Balance Sheet<br />
7. On 31 July <strong>2006</strong> the <strong>University</strong>’s land and buildings were<br />
re-valued by Dunlop Haywards, Chartered Surveyors. These<br />
assets were valued at £152.6m compared to an original<br />
Net Book Value <strong>of</strong> £125.3m and the Revaluation Reserve<br />
was therefore increased by £27.3m.<br />
8. The Group made capital investments during the year <strong>of</strong><br />
£12.9m (2005:£28.8m). Of this amount some £8.3m was<br />
invested in buildings, including the completion <strong>of</strong> a new<br />
Health Faculty Building, which was opened in October<br />
2005, and a continuing programme <strong>of</strong> major<br />
refurbishments. The <strong>University</strong>’s Peel Park Campus and<br />
Allerton Building have been upgraded and the Meadow<br />
Road Campus was vacated and demolished. Some £4.6m<br />
was spent on major equipment purchases.<br />
9. Of the capital investment £4.2m was financed through<br />
capital grants received and the remainder was financed<br />
from internal resources pending the draw down <strong>of</strong> loan<br />
finance and the generation <strong>of</strong> capital receipts from the<br />
disposal <strong>of</strong> some land and student residences. The Group’s<br />
net liquid funds reduced temporarily by £12.8m to £4.2m.<br />
10. The <strong>University</strong>’s long term borrowings are comparatively<br />
low within the Higher Education Sector and the <strong>University</strong><br />
plans to finance further capital investment through<br />
borrowing. The <strong>University</strong> has facilities with Barclays Bank<br />
to borrow £6m for the Law School and £50m to finance<br />
the revised Arts and Media Centre in due course.<br />
25
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Financial ReviewFinancial Review<br />
Student Numbers<br />
11. The numbers <strong>of</strong> students attending the <strong>University</strong> in 2005-<br />
06 are detailed in the Statistics section <strong>of</strong> the <strong>Annual</strong><br />
<strong>Report</strong>.<br />
Pr<strong>of</strong>essional Advisors<br />
12. Bankers Barclays Bank plc<br />
Internal Auditors Universities Internal Audit<br />
Consortium<br />
External Auditors Grant Thornton UK LLP<br />
Investment Managers Royal London Asset Management<br />
Tilney Fund Management<br />
Employment <strong>of</strong> Disabled Persons<br />
13. Applications for employment by disabled persons are<br />
always fully considered, bearing in mind the aptitudes <strong>of</strong><br />
the applicant concerned. In the event <strong>of</strong> existing<br />
employees becoming disabled every effort is made to<br />
ensure that their employment with the <strong>University</strong> continues<br />
and that appropriate training is arranged. It is the policy <strong>of</strong><br />
the <strong>University</strong> that the training, career development and<br />
promotion <strong>of</strong> disabled persons should, as far as possible,<br />
be identical with that <strong>of</strong> other employees.<br />
Employee Involvement<br />
14. The <strong>University</strong> places considerable value on the<br />
involvement <strong>of</strong> its employees and on good communication<br />
with them. The <strong>University</strong> publishes an <strong>of</strong>ficial newsletter<br />
which is made available to all staff and separate<br />
supplements are published when the need arises. Staff are<br />
encouraged to participate in formal and informal<br />
consultation at <strong>University</strong>, Faculty and School level,<br />
sometimes through the membership <strong>of</strong> formal<br />
Committees.<br />
Conclusion<br />
15. The Council is satisfied that the Group has adequate<br />
resources to continue in operation for the foreseeable<br />
future and, for this reason, the going concern basis<br />
continues to be adopted in the preparation <strong>of</strong> the Financial<br />
Statements. The <strong>University</strong> intends to maintain its sound<br />
underlying financial position through sustained income<br />
generation and affordable investment in new<br />
developments.<br />
Pr<strong>of</strong>essor M H Harloe<br />
Vice-Chancellor<br />
12 December <strong>2006</strong><br />
Group Structure<br />
The principal subsidiaries <strong>of</strong> the <strong>University</strong> at 31 July <strong>2006</strong> are set out below:-<br />
<strong>University</strong> <strong>of</strong> <strong>Salford</strong><br />
<strong>University</strong> <strong>of</strong> <strong>Salford</strong><br />
(Health Services Training) Limited<br />
(Training)<br />
<strong>University</strong> <strong>of</strong> <strong>Salford</strong><br />
Enterprises Limited<br />
(Business Development, Consultancy<br />
and Investment Management)<br />
Skyscope Limited<br />
(Property Development<br />
- Dormant)<br />
26<br />
Crescent Purchasing Limited<br />
(Purchasing Services)<br />
<strong>Salford</strong> S<strong>of</strong>tware Limited<br />
(S<strong>of</strong>tware Marketing)
Statement <strong>of</strong> Primary Responsibilities<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Statement <strong>of</strong> Primary Responsibilities<br />
The Council is the executive governing body responsible for<br />
the finance, property, investments and general business <strong>of</strong> the<br />
<strong>University</strong> and for setting the general strategic direction <strong>of</strong> the<br />
institution. Its primary responsibilities may be summarised as<br />
follows: -<br />
1. Strategic planning<br />
(a) Considering and approving the mission and strategic plans<br />
<strong>of</strong> the institution, longer-term business plans, key<br />
performance indicators and annual budgets, and ensuring<br />
that these meet the interests <strong>of</strong> stakeholders.<br />
2. Monitoring effectiveness and performance<br />
(a) Ensuring the establishment and monitoring <strong>of</strong> systems <strong>of</strong><br />
control and accountability, including financial and<br />
operational controls and risk assessment.<br />
(b) Monitoring institutional performance against plans and<br />
approved key performance indicators which, wherever<br />
possible and appropriate, are benchmarked against<br />
other institutions.<br />
(c) Monitoring its own effectiveness as a governing body and<br />
reporting thereon.<br />
(d) Putting in place suitable arrangements for monitoring the<br />
performance <strong>of</strong> the Vice-Chancellor and Registrar and<br />
Secretary.<br />
3. Finance<br />
(a) Ensuring the solvency <strong>of</strong> the <strong>University</strong> and safeguarding its<br />
assets.<br />
(b) Approving the financial strategy and the overall annual<br />
budget.<br />
(c) Receiving and approving annual accounts.<br />
4. Audit<br />
(a) Directing and overseeing the <strong>University</strong>’s arrangements for<br />
internal and external audit.<br />
5. Estate management<br />
(a) Approving and keeping under review an estates strategy<br />
that identifies the property and space requirements needed<br />
to fulfil the objectives <strong>of</strong> the <strong>University</strong>’s strategic plan.<br />
(b) Providing for a planned programme <strong>of</strong> maintenance for the<br />
<strong>University</strong>’s estate.<br />
(c) Considering and approving all capital projects and all<br />
disposals <strong>of</strong> land and property.<br />
6. Human resource management<br />
(a) Approving the <strong>University</strong>’s staffing strategy and policies,<br />
including remuneration policy.<br />
(b) Ensuring the <strong>University</strong> has clear procedures for handling<br />
internal grievances and for managing conflicts <strong>of</strong> interest.<br />
(c) Appointing the Vice-Chancellor and the Registrar and<br />
Secretary and setting the terms and conditions for these<br />
posts.<br />
7. Equality and diversity<br />
(a) Ensuring that the <strong>University</strong> has non-discriminatory systems<br />
in place to provide equality <strong>of</strong> opportunity for staff and<br />
students.<br />
(b) Approving the <strong>University</strong>’s access agreement with the<br />
Office for Fair Access and monitoring institutional<br />
performance against widening participation targets set<br />
therein.<br />
8. Health and safety<br />
(a) Oversight <strong>of</strong> the <strong>University</strong>’s arrangements for ensuring the<br />
health and safety <strong>of</strong> staff, students and other individuals<br />
while they are on the <strong>University</strong>’s premises and in other<br />
places where they may be affected by its operations.<br />
(b) Ensuring that the institution has a written statement <strong>of</strong><br />
policy on health and safety.<br />
9. Students’ Union<br />
(a) Ensuring that the Students’ Union operates in a fair and<br />
democratic manner and is accountable for its finances.<br />
27
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Corporate Governance Statement<br />
Corporate Governance Statement<br />
1. The <strong>University</strong> is committed to best practice in all aspects <strong>of</strong><br />
corporate governance and seeks, in particular, to apply the<br />
principles set out in Part 1 <strong>of</strong> the Committee <strong>of</strong> <strong>University</strong><br />
Chairmen (CUC) Guide for Members <strong>of</strong> Higher Education<br />
Governing Bodies in the UK published in November 2004.<br />
The purpose <strong>of</strong> this summary is to help the reader <strong>of</strong> the<br />
financial statements understand how the principles have<br />
been applied.<br />
2. In the opinion <strong>of</strong> the Council, the <strong>University</strong> currently<br />
complies with all the principles set out in the Guide with<br />
one exception. Current <strong>University</strong> <strong>of</strong> <strong>Salford</strong> practice<br />
diverges from CUC guidance in relation to the size <strong>of</strong> the<br />
Council. The <strong>University</strong> Council has reviewed this matter<br />
and considers that the present size <strong>of</strong> membership at<br />
<strong>Salford</strong> (37) is appropriate for an institution <strong>of</strong> the size and<br />
with the range <strong>of</strong> stakeholders and activities that this<br />
<strong>University</strong> has. To ensure that the <strong>University</strong> has access to<br />
the range <strong>of</strong> knowledge and skills that external members<br />
bring, that the Council retains a lay majority, and that<br />
internal stakeholder groups: management, staff and<br />
students are adequately represented necessitates a Council<br />
membership <strong>of</strong> the present order.<br />
3. The <strong>University</strong> is an independent corporation, whose legal<br />
status derives from a Royal Charter originally granted in<br />
1967. Its objects, powers and framework <strong>of</strong> governance are<br />
set out in the Charter and its supporting statutes, the<br />
latest version <strong>of</strong> which was approved by the Privy Council<br />
in 2004.<br />
4. The Charter and Statutes require the <strong>University</strong> to have<br />
three separate bodies, each with clearly defined functions<br />
and responsibilities, to oversee and manage its activities, as<br />
follows:-<br />
(a) The Council – is the executive governing body, responsible<br />
for the finance, property, investments and general business<br />
<strong>of</strong> the <strong>University</strong>, and for setting the general strategic<br />
direction. A statement <strong>of</strong> the primary responsibilities <strong>of</strong> the<br />
Council is provided on page 30. It has a majority <strong>of</strong><br />
members from outside the <strong>University</strong>, described as lay<br />
members, from whom its Chairman and Vice-Chairman<br />
must be drawn. A full statement <strong>of</strong> the membership for the<br />
year 2005-06 is provided on page 24. None <strong>of</strong> the lay<br />
members receive any payment, apart from the<br />
reimbursement <strong>of</strong> expenses, for the work which they do for<br />
the <strong>University</strong>.<br />
(b) The Senate – is the academic authority <strong>of</strong> the <strong>University</strong><br />
and draws its membership from the academic staff and the<br />
students <strong>of</strong> the institution. Its role is to direct and regulate<br />
the teaching and research work <strong>of</strong> the <strong>University</strong>.<br />
(c) The Court – is a large, mainly formal body (somewhat akin<br />
to the shareholders’ meeting <strong>of</strong> a large public company). It<br />
<strong>of</strong>fers a means whereby the wider interests served by the<br />
<strong>University</strong> can be associated with the institution, and<br />
provides a public forum where members <strong>of</strong> the Court can<br />
raise any matters about the <strong>University</strong>. The Court normally<br />
meets once a year to receive the <strong>Annual</strong> <strong>Report</strong> and<br />
Financial Statements <strong>of</strong> the <strong>University</strong>. In addition, major<br />
changes to the constitution <strong>of</strong> the <strong>University</strong> require the<br />
approval <strong>of</strong> the Court before they can be submitted to the<br />
Privy Council. A majority <strong>of</strong> the members <strong>of</strong> the Court must<br />
be from outside the <strong>University</strong>, representing the local<br />
community and other designated bodies with an interest in<br />
the work <strong>of</strong> the <strong>University</strong>, but the membership also<br />
includes representatives <strong>of</strong> the staff <strong>of</strong> the <strong>University</strong> (both<br />
academic and non-academic) and the student body.<br />
5. The principal academic and administrative <strong>of</strong>ficer <strong>of</strong> the<br />
<strong>University</strong> is the Vice-Chancellor who has a general<br />
responsibility to the Council for maintaining and promoting<br />
the efficiency and good order <strong>of</strong> the <strong>University</strong>. Under the<br />
terms <strong>of</strong> the Financial Memorandum between the <strong>University</strong><br />
and the Higher Education Funding Council for England, the<br />
Vice-Chancellor is the Designated Officer <strong>of</strong> the <strong>University</strong><br />
and in that capacity can be summoned to appear before the<br />
Public Accounts Committee <strong>of</strong> the House <strong>of</strong> Commons.<br />
6. Although the Council meets at least four times each<br />
academic year, much <strong>of</strong> its detailed work is initially handled<br />
by committees, in particular the Finance Committee, the<br />
Personnel Committee, the Estates Committee, the <strong>University</strong><br />
Services Committee, the Nominations Committee, the<br />
Remuneration Committee and the Audit Committee. The<br />
decisions and recommendations <strong>of</strong> these committees are<br />
reported to the Council. These committees are formally<br />
28
Corporate Governance Statement<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
constituted with written terms <strong>of</strong> reference and specified<br />
membership, including a significant proportion <strong>of</strong> lay<br />
members (from whom the Chairman is selected). The<br />
Finance Committee inter alia recommends to the Council<br />
the <strong>University</strong>’s annual revenue and capital budget and<br />
monitors performance in relation to the approved budgets.<br />
The Remuneration Committee determines the remuneration<br />
<strong>of</strong> the Vice-Chancellor and the Registrar and Secretary and<br />
sets the remuneration policy for senior staff.<br />
10. The <strong>University</strong> maintains a register <strong>of</strong> interests <strong>of</strong> members<br />
<strong>of</strong> the Council and Senior Officers, which may be<br />
consulted by arrangement with the Registrar and<br />
Secretary. The Statutes <strong>of</strong> the <strong>University</strong> specify that the<br />
Registrar and Secretary should act as Secretary <strong>of</strong> the<br />
Council. Any enquiries about the constitution and<br />
governance <strong>of</strong> the <strong>University</strong> should be addressed to the<br />
Registrar and Secretary.<br />
7. The Audit Committee meets at least three times a year, with<br />
the <strong>University</strong>’s external and internal auditors in attendance.<br />
The Committee considers detailed reports together with<br />
recommendations for the improvement <strong>of</strong> the <strong>University</strong>’s<br />
systems <strong>of</strong> internal control and management’s responses<br />
and implementation plans. It also receives and considers<br />
reports from the Higher Education Funding Council for<br />
England as they affect the <strong>University</strong>’s business and<br />
monitors adherence to the regulatory requirements. Whilst<br />
Senior Officers attend meetings <strong>of</strong> the Audit Committee as<br />
necessary, they are not members <strong>of</strong> the Committee and the<br />
Committee has power to meet the external auditors or<br />
internal auditors for independent discussions.<br />
8. As Principal Officer <strong>of</strong> the <strong>University</strong>, the Vice-Chancellor<br />
exercises considerable influence upon the development <strong>of</strong><br />
strategy, the identification and planning <strong>of</strong> new<br />
developments and the shaping <strong>of</strong> the ethos <strong>of</strong> the<br />
institution. The Pro-Vice-Chancellors and the Senior Officers<br />
who comprise the Executive Group all contribute in various<br />
ways to this aspect <strong>of</strong> the institution, but the ultimate<br />
responsibility for what is done rests with the Council. The<br />
Executive Group and the Audit Committee receive regular<br />
reports from the internal auditors, which include<br />
recommendations for improvement.<br />
9. The <strong>University</strong> has embarked on a comprehensive review <strong>of</strong><br />
its committee and management structures and this work<br />
will continue in <strong>2006</strong>-07 with a view to introducing revised<br />
arrangements in 2007-08.<br />
29
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Statement <strong>of</strong> the Council’s Responsibilities and Internal Control<br />
Statement <strong>of</strong> the Council’s Responsibilities<br />
and Internal Control<br />
1. As the Council <strong>of</strong> <strong>University</strong> <strong>of</strong> <strong>Salford</strong>, we have<br />
responsibility for maintaining a sound system <strong>of</strong> internal<br />
control that supports the achievement <strong>of</strong> policies, aims and<br />
objectives, while safeguarding the public and other funds<br />
and assets for which we are responsible, in accordance with<br />
the responsibilities assigned to the Council in the Charter<br />
and Statutes and the Financial Memorandum with the<br />
Higher Education Funding Council for England.<br />
2. The Council is responsible for keeping proper accounting<br />
records which disclose with reasonable accuracy at any time<br />
the financial position <strong>of</strong> the Group and to enable it to<br />
ensure that the Financial Statements are prepared in<br />
accordance with the <strong>University</strong>’s Charter <strong>of</strong> Incorporation,<br />
the Statement <strong>of</strong> Recommended Practice on Accounting in<br />
Further and Higher Education Institutions and other relevant<br />
Accounting Standards. In addition, within the terms and<br />
conditions <strong>of</strong> the Financial Memorandum agreed between<br />
the Higher Education Funding Council for England and the<br />
Council <strong>of</strong> the <strong>University</strong>, the Council, through its<br />
designated <strong>of</strong>ficer, the Vice-Chancellor, is required to<br />
prepare Financial Statements for each financial year which<br />
give a true and fair view <strong>of</strong> the state <strong>of</strong> affairs <strong>of</strong> the<br />
<strong>University</strong> and Group and <strong>of</strong> the surplus or deficit, and cash<br />
flows for that year.<br />
3. In causing the Financial Statements to be prepared the<br />
Council ensures that:-<br />
(a) suitable accounting policies have been selected and applied<br />
consistently;<br />
(b) judgements and estimates have been made that are<br />
reasonable and prudent;<br />
(c) applicable Accounting Standards have been followed,<br />
subject to any material departures disclosed and explained<br />
in the Financial Statements;<br />
(d) Financial Statements have been prepared on the going<br />
concern basis, unless it is inappropriate to presume that the<br />
Group will continue in operation. The Council is satisfied<br />
that it has adequate resources to continue in operation for<br />
the foreseeable future: for this reason the going concern<br />
basis continues to be adopted in the preparation <strong>of</strong> the<br />
Financial Statements.<br />
4. The Council takes reasonable steps to:-<br />
(a) ensure that funds from the Higher Education Funding<br />
Council for England are used only for the purposes for<br />
which they have been given and in accordance with the<br />
Financial Memorandum with the Higher Education Funding<br />
Council for England and any other conditions which the<br />
Higher Education Funding Council for England may from<br />
time to time prescribe;<br />
(b) ensure that there are appropriate financial and<br />
management controls in place to safeguard public funds<br />
and funds from other sources;<br />
(c) safeguard the assets <strong>of</strong> the Group and prevent and<br />
detect fraud;<br />
(d) secure the economical, efficient and effective management<br />
<strong>of</strong> the <strong>University</strong>’s resources and expenditure.<br />
5. The key elements <strong>of</strong> the Group’s system <strong>of</strong> internal financial<br />
controls, which is designed to discharge the responsibilities<br />
set out above include the following:<br />
(a) clear definitions <strong>of</strong> the responsibilities <strong>of</strong>, and the authority<br />
delegated to, heads <strong>of</strong> academic and administrative<br />
departments;<br />
(b) a medium or short term planning process supplemented by<br />
annual budgets;<br />
(c) regular reviews <strong>of</strong> academic and support service<br />
performance;<br />
(d) clearly defined and formalised requirements for approval<br />
and control <strong>of</strong> expenditure, with capital expenditure being<br />
subject to formal detailed appraisal and review according<br />
to approval levels set by the <strong>University</strong> Council;<br />
(e) comprehensive Financial Regulations, detailing financial<br />
controls and procedures, approved by the Finance<br />
Committee;<br />
6. The system <strong>of</strong> internal control is designed to manage rather<br />
than eliminate the risk <strong>of</strong> failure to achieve policies, aims<br />
and objectives. It can therefore only provide reasonable and<br />
not absolute assurance <strong>of</strong> effectiveness.<br />
30
Statement <strong>of</strong> the Council’s Responsibilities and Internal Control<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
7. The system <strong>of</strong> internal control is based on an ongoing<br />
process designed to identify the principal risks to the<br />
achievement <strong>of</strong> policies, aims and objectives; to evaluate the<br />
nature and extent <strong>of</strong> those risks; and to manage them<br />
efficiently and economically. These procedures have been in<br />
operation throughout the year ended 31 July <strong>2006</strong>.<br />
8. We have undertaken the following actions to embed our<br />
risk management strategy: -<br />
(a) Held a risk management workshop for senior staff to<br />
review the institution’s objectives and risks, and determine<br />
a control strategy for each <strong>of</strong> the significant risks.<br />
(b) Charged the <strong>University</strong>’s Senior Management Team with<br />
overseeing the management <strong>of</strong> risk.<br />
(c) Requested the Audit Committee to provide advice on the<br />
effectiveness <strong>of</strong> risk management.<br />
(d) Requested that the internal auditors adapt their audit<br />
planning arrangements, methodology and approach, so<br />
that the audit conforms to the latest pr<strong>of</strong>essional standards<br />
reflecting the adoption <strong>of</strong> risk management.<br />
9. We have ensured that our meeting calendar and agendas<br />
enable risk management and internal control to be<br />
considered on a regular basis during the year. Risk<br />
management has been incorporated more fully into the<br />
corporate planning and decision making processes <strong>of</strong> the<br />
institution.<br />
10. We receive periodic reports from the Audit Committee<br />
concerning internal control, and we require regular reports<br />
from managers on the steps they are taking to manage<br />
risks in their areas <strong>of</strong> responsibility, including progress<br />
reports on key projects.<br />
11. The <strong>University</strong>’s internal audit service is provided by<br />
Universities Internal Audit Consortium (UNIAC) which<br />
operates to standards defined in the Higher Education<br />
Funding Council for England Audit Code <strong>of</strong> Practice and<br />
which was last reviewed for effectiveness by the Higher<br />
Education Funding Council for England Audit Service in<br />
May 2002. The internal auditors submit regular reports<br />
which include the head <strong>of</strong> internal audit’s independent<br />
opinion on the adequacy and effectiveness <strong>of</strong> the system<br />
<strong>of</strong> internal control, together with recommendations for<br />
improvement.<br />
12. During the year the <strong>University</strong> has changed its external<br />
auditors from KPMG LLP to Grant Thornton UK LLP and<br />
from 1 August <strong>2006</strong> KPMG LLP will take over as internal<br />
auditors from UNIAC.<br />
13. Our review <strong>of</strong> the effectiveness <strong>of</strong> the system <strong>of</strong> internal<br />
control is informed by the work <strong>of</strong> the internal auditors<br />
and the senior managers within the <strong>University</strong> who have<br />
responsibility for the development and maintenance <strong>of</strong><br />
the internal control framework and by comments made<br />
by the external auditors in their management letter and<br />
other reports.<br />
Mr A Gibson<br />
Chairman<br />
12 December <strong>2006</strong><br />
31
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
<strong>Report</strong> <strong>of</strong> the Independent Auditors to the Council <strong>of</strong> the <strong>University</strong> <strong>of</strong> <strong>Salford</strong><br />
<strong>Report</strong> <strong>of</strong> the Independent Auditors to the<br />
Council <strong>of</strong> the <strong>University</strong> <strong>of</strong> <strong>Salford</strong><br />
We have audited the financial statements <strong>of</strong> the <strong>University</strong> <strong>of</strong><br />
<strong>Salford</strong> for the year ended 31 July <strong>2006</strong> which comprise the<br />
income and expenditure account, the statement <strong>of</strong> historical<br />
cost surpluses and deficits, the statement <strong>of</strong> total recognised<br />
gains and losses, the balance sheets, the cash flow statement,<br />
principal accounting polices and notes 1 to 40 which have<br />
been prepared under the historical cost convention (as<br />
modified by the revaluation <strong>of</strong> certain fixed assets) and the<br />
accounting policies set out in the statement <strong>of</strong> principal<br />
accounting policies.<br />
This report is made solely to the Council as a body. Our audit<br />
work has been undertaken so that we might state to the<br />
Council those matters we are required to state to them in an<br />
auditor's report and for no other purpose. To the fullest extent<br />
permitted by law, we do not accept or assume responsibility to<br />
anyone other than the <strong>University</strong> and the Council as a body,<br />
for our audit work, for this report, or for the opinions we<br />
have formed.<br />
Respective responsibilities <strong>of</strong> the council<br />
and Auditors<br />
As described in the statement <strong>of</strong> the Council's responsibilities<br />
and internal control, the Council is responsible for the<br />
preparation <strong>of</strong> financial statements in accordance with the<br />
Accounts Direction issued by the Higher Education Funding<br />
Council for England, the Statement <strong>of</strong> Recommended Practice<br />
- Accounting for Further and Higher Education, applicable law,<br />
and United Kingdom Accounting Standards. Our responsibility<br />
is to audit the financial statements in accordance with relevant<br />
legal and regulatory requirements and International Standards<br />
on Auditing (UK and Ireland).<br />
We report to you our opinion as to whether the financial<br />
statements give a true and fair view and are properly prepared<br />
in accordance with the Statement <strong>of</strong> Recommended Practice-<br />
Accounting for Further and Higher Education. We also report<br />
to you whether in our opinion, monies expended out <strong>of</strong> funds<br />
from whatever source administered by the <strong>University</strong> for<br />
specific purposes were properly applied for those purposes and<br />
where relevant managed in accordance with appropriate<br />
legislation and whether monies expended out <strong>of</strong> funds<br />
provided by the Higher Education Funding Council were<br />
applied in accordance with the financial memorandum and<br />
any other terms and conditions attached thereto.<br />
We also report to you our opinion as to whether the<br />
information given in the Financial Review is consistent with the<br />
financial statements. We also report to you if, in our opinion,<br />
the <strong>University</strong> has not kept proper accounting records, if we<br />
have not received all the information and explanations we<br />
require for our audit.<br />
We read the Financial Review and the Corporation<br />
Governance Statement and consider the implications for our<br />
report if we become aware <strong>of</strong> any apparent misstatement<br />
within it. Our responsibilities do not extend to any<br />
other information.<br />
Basis <strong>of</strong> audit opinion<br />
We conducted our audit in accordance with International<br />
Standards on Auditing (UK and Ireland) issued by the Auditing<br />
Practices Board and the HEFCE Code <strong>of</strong> Practice. An audit<br />
includes examination on a test basis, <strong>of</strong> evidence relevant to<br />
the amounts and disclosures in the financial statements. It<br />
also includes an assessment <strong>of</strong> the significant estimates and<br />
judgements made by the <strong>University</strong>'s Council in the<br />
preparation <strong>of</strong> the financial statements, and <strong>of</strong> whether the<br />
accounting policies are appropriate to the <strong>University</strong>'s<br />
circumstances, consistently applied and adequately disclosed.<br />
We planned and performed our audit so as to obtain all the<br />
information and explanations which we considered necessary<br />
in order to provide us with sufficient evidence to give<br />
reasonable assurance that the financial statements are free<br />
from material misstatement, whether caused by fraud or any<br />
other irregularity or error. In forming our opinion we also<br />
evaluated the overall adequacy <strong>of</strong> the presentation <strong>of</strong><br />
information in the financial statements.<br />
32
<strong>Report</strong> <strong>of</strong> the Independent Auditors to the Council <strong>of</strong> the <strong>University</strong> <strong>of</strong> <strong>Salford</strong><br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Opinion<br />
In our opinion:<br />
• The financial statements give a true and fair view <strong>of</strong> the<br />
state <strong>of</strong> affairs <strong>of</strong> the <strong>University</strong> <strong>of</strong> <strong>Salford</strong> and the group as<br />
at 31 July <strong>2006</strong>, and <strong>of</strong> the deficit <strong>of</strong> income over<br />
expenditure <strong>of</strong> the group for the year then ended; and the<br />
statements have been properly prepared in accordance with<br />
the Statement <strong>of</strong> Recommended Practice-Accounting for<br />
Further and Higher Education; the information given in the<br />
Financial Review is consistent with the financial statements<br />
• In all material respects, income from the Higher Education<br />
Funding Council for England and income for specific<br />
purposes and from other restricted funds administered by<br />
the institution have been applied only for the purposes for<br />
which they were received.<br />
• In all material respects, funds have been applied in<br />
accordance with the <strong>University</strong>'s Statutes and where<br />
appropriate in accordance with the financial memorandum<br />
with the Higher Education Funding Council for England.<br />
Grant Thornton UK LLP<br />
Registered Auditors<br />
Chartered Accountants<br />
Manchester<br />
12 December <strong>2006</strong><br />
33
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Consolidated Income and Expenditure Account<br />
Consolidated Income and Expenditure Account<br />
for the Year Ended 31 July <strong>2006</strong><br />
Note<br />
Before<br />
Exceptional<br />
Items<br />
Exceptional<br />
Items<br />
Total<br />
2005-06<br />
Restated<br />
2004-05<br />
Income<br />
£’000<br />
£’000<br />
£’000<br />
£’000<br />
Funding Council Grants<br />
1<br />
57,929<br />
57,929<br />
53,337<br />
Tuition Fees and Education Contracts<br />
2<br />
52,307<br />
52,307<br />
49,526<br />
Research Grants and Contracts<br />
3<br />
7,456<br />
7,456<br />
9,164<br />
Other Income<br />
4<br />
28,448<br />
28,448<br />
28,122<br />
Endowment and Investment Income<br />
5<br />
612<br />
612<br />
1,243<br />
Total Income<br />
146,752<br />
-<br />
146,752<br />
141,392<br />
Expenditure<br />
Staff Costs<br />
Other Operating Expenses<br />
Depreciation<br />
Interest Payable<br />
Total Expenditure<br />
6<br />
7<br />
8<br />
9<br />
10<br />
86,351<br />
49,011<br />
8,210<br />
1,926<br />
145,498<br />
3,845<br />
3,845<br />
86,351<br />
52,856<br />
8,210<br />
1,926<br />
149,343<br />
84,308<br />
47,991<br />
7,542<br />
1,609<br />
141,450<br />
Deficit Before Exceptional Items, Tax and Minority Interest<br />
1,254<br />
(3,845)<br />
(2,591)<br />
(58)<br />
Share <strong>of</strong> operating surplus in associated undertakings<br />
16<br />
-<br />
16<br />
-<br />
Deficit on Continuing Operations After Depreciation <strong>of</strong> Fixed<br />
Assets at Valuation and Before Exceptional Items and Taxation<br />
1,270<br />
(3,845)<br />
(2,575)<br />
(58)<br />
Exceptional Items<br />
11<br />
-<br />
(1,610)<br />
(1,610)<br />
(4)<br />
Deficit on Continuing Operations After Depreciation <strong>of</strong> Fixed<br />
Assets at Valuation and Disposal <strong>of</strong> Assets but before Taxation<br />
and Minority Interests<br />
1,270<br />
(5,455)<br />
(4,185)<br />
(62)<br />
Taxation<br />
12<br />
-<br />
-<br />
-<br />
-<br />
Equity Minority Interests<br />
-<br />
-<br />
-<br />
(1)<br />
Deficit on Continuing Operations After Depreciation <strong>of</strong> Fixed<br />
Assets at Valuation, Disposal <strong>of</strong> Assets, Taxation and<br />
Minority Interests<br />
1,270<br />
(5,455)<br />
(4,185)<br />
(63)<br />
Transfer from Accumulated Income within Specific Endowments<br />
25<br />
63<br />
-<br />
63<br />
215<br />
(Deficit)/Surplus for the Year Retained within General Reserves<br />
27<br />
1,333<br />
(5,455)<br />
(4,122)<br />
152<br />
The results for the year ended 31 July 2005 have been restated to reflect the full implementation <strong>of</strong> FRS17 (See Note 13).<br />
34
Consolidated Statements<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Consolidated Statement <strong>of</strong> Historical Cost<br />
Surpluses and Deficits<br />
for the Year Ended 31 July <strong>2006</strong><br />
Restated<br />
Note 2005-06 2004-05<br />
£’000 £’000<br />
Deficit on Continuing Operations before Taxation and<br />
Minority Interests (4,185) (62)<br />
Difference between Historical Cost Depreciation and<br />
the Actual Charge for the Year calculated on the<br />
Revalued Amount 26 1,267 1,394<br />
Release from Revaluation reserve relating to disposals and<br />
demolitions 26 503 -<br />
Historical Cost (Deficit)/Surplus for the Year before<br />
Taxation and Minority Interests (2,415) 1,332<br />
Historical Cost (Deficit)/Surplus for the Year after Taxation,<br />
Exceptional Items , Minority Interests and Transfers in Respect<br />
<strong>of</strong> Specific Endowments (2,352) 1,546<br />
Consolidated Statement <strong>of</strong> Total<br />
Recognised Gains and Losses<br />
for the Year Ended 31 July <strong>2006</strong><br />
Restated<br />
Note 2005-06 2004-05<br />
£’000 £’000<br />
Deficit on Continuing Operations after<br />
Depreciation <strong>of</strong> Fixed Assets at Valuation, Disposal <strong>of</strong> Assets<br />
and Taxation before Minority Interests (4,185) (62)<br />
Endowment Interest 25 35 44<br />
Endowment Donations 25 49 122<br />
Revaluation <strong>of</strong> Property 26 27,322 -<br />
Disposal <strong>of</strong> SUBEL Minority Interest 11 - (45)<br />
Actuarial Gain/(Loss) Recognised on the Pension Schemes 38(b) 47 (2,187)<br />
Total Recognised Gains/(Losses) for the Year 23,268 (2,128)<br />
Prior Year Adjustment 13 (16,375) -<br />
Total Recognised Gains/(Losses) for the Year since the<br />
last Financial Statements 6,893 (2,128)<br />
Reconciliation<br />
Opening Reserves, Endowments and Minority Interests as Originally <strong>Report</strong>ed 70,683 69,995<br />
Less Prior Year Adjustment 13 (16,375) (13,559)<br />
Restated Reserves, Endowments & Minority Interests 54,308 56,436<br />
Total Recognised Gains/(Losses) for the Year 23,268 (2,128)<br />
Closing Reserves, Endowments and Minority Interests 77,576 54,308<br />
35
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Consolidated Balance Sheet<br />
Consolidated Balance Sheet<br />
as at 31 July <strong>2006</strong><br />
Restated<br />
Note <strong>2006</strong> 2005<br />
£’000 £’000<br />
Fixed Assets<br />
Tangible Assets 14 162,520 132,119<br />
Investments 15 80 58<br />
162,600 132,177<br />
Endowment Asset Investments 16 838 817<br />
Current Assets<br />
Stock 17 183 124<br />
Debtors 18 12,001 12,964<br />
Investments 19 3,909 15,843<br />
Cash at Bank and in Hand 306 1,219<br />
16,399 30,150<br />
Creditors: Amounts Falling Due Within One Year 20 (24,635) (29,876)<br />
Net Current Liabilities/Assets (8,236) 274<br />
Total Assets Less Current Liabilities 155,202 133,268<br />
Creditors: Amounts Falling Due After More Than One Year 21 (21,103) (22,953)<br />
Provisions for Liabilities 23 (621) (1,989)<br />
Net Assets Excluding Net Pension Liability 133,478 108,326<br />
Net Pension Liability 38(d) (26,288) (25,415)<br />
Net Assets Including Net Pension Liability 107,190 82,911<br />
Deferred Capital Grants 24 29,614 28,603<br />
Specific Endowments 25 838 817<br />
Reserves<br />
Revaluation Reserve 26 63,716 38,164<br />
Income and Expenditure Reserve 27 39,310 40,742<br />
Pension Reserve 28 (26,288) (25,415)<br />
Total Funds 107,190 82,911<br />
The Financial Statements on pages 34 to 65 were approved by the Council on 12 December <strong>2006</strong> and signed<br />
on its behalf by:-<br />
Pr<strong>of</strong>essor M Harloe<br />
Vice-Chancellor<br />
Mr J Greenough FCA, CPFA Chairman <strong>of</strong> Finance Committee<br />
Mr R Corner CPFA<br />
Director <strong>of</strong> Finance<br />
36
<strong>University</strong> Balance Sheet<br />
<strong>University</strong> Balance Sheet<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
<strong>University</strong> Balance Sheet<br />
as at 31 July <strong>2006</strong><br />
Restated<br />
Note <strong>2006</strong> 2005<br />
£’000 £’000<br />
Fixed Assets<br />
Tangible Assets 14 162,509 132,068<br />
Investments 15 2 2<br />
162,511 132,070<br />
Endowment Asset Investments 16 838 817<br />
Current Assets<br />
Stock 17 131 124<br />
Debtors 18 9,170 11,039<br />
Investments 19 3,909 15,843<br />
Cash at Bank and in Hand 219 1,084<br />
13,429 28,090<br />
Creditors: Amounts Falling Due Within One Year 20 (22,571) (28,545)<br />
Net Current Liabilities (9,142) (455)<br />
Total Assets Less Current Liabilities 154,207 132,432<br />
Creditors: Amounts Falling Due After More Than One Year 21 (21,103) (22,828)<br />
Provisions for Liabilities and Charges 23 (621) (1,989)<br />
Net Assets Excluding Net Pension Liability 132,483 107,615<br />
Net Pension Liability 38(d) (26,288) (25,415)<br />
Net Assets Including Net Pension Liability 106,195 82,200<br />
Deferred Capital Grants 24 29,614 28,603<br />
Specific Endowments 25 838 817<br />
Reserves<br />
Revaluation Reserve 26 63,716 38,164<br />
Income and Expenditure Reserve 27 38,315 40,031<br />
Pension Reserve 28 (26,288) (25,415)<br />
Total Funds 106,195 82,200<br />
The Financial Statements on pages 34 to 65 were approved by the Council on 12 December <strong>2006</strong> and signed on its<br />
behalf by:-<br />
Pr<strong>of</strong>essor M Harloe<br />
Vice-Chancellor<br />
Mr J Greenough FCA, CPFA Chairman <strong>of</strong> Finance Committee<br />
Mr R Corner CPFA<br />
Director <strong>of</strong> Finance<br />
37
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Consolidated Cash Flow Statement<br />
Consolidated Cash Flow Statement<br />
for the Year Ended 31 July <strong>2006</strong><br />
Restated<br />
Note 2005-06 2004-05<br />
£’000 £’000<br />
Cash (Outflow)/Inflow from Operating Activities 32 (1,694) 6,614<br />
Returns on Investments and Servicing <strong>of</strong> Finance 33 (1,279) (322)<br />
Capital Expenditure and Financial Investment 34 (8,651) (24,597)<br />
Disposal <strong>of</strong> SUBEL 11 - (49)<br />
Management <strong>of</strong> Liquid Resources 35 11,679 10,567<br />
Financing 36 (968) 8,429<br />
(Decrease)/Increase in Cash in the Year (913) 642<br />
Reconciliation <strong>of</strong> Net Cash Flow to increase in<br />
Net Debt to the year ended 31 July <strong>2006</strong><br />
(Decrease)/Increase in Cash in the Year 37 (913) 642<br />
Decrease in Investments 37 (11,679) (10,567)<br />
New Loans 36 - (14,000)<br />
Repayment <strong>of</strong> Loans and Leases 36 968 5,571<br />
Movement in Net Debt in the Year 37 (11,624) (18,354)<br />
Net Debt at 1 August 2005 37 (7,283) 11,071<br />
Net Debt at 31 July <strong>2006</strong> 37 (18,907) (7,283)<br />
38
Statement <strong>of</strong> Principal Accounting Policies<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Statement <strong>of</strong> Principal Accounting Policies<br />
1. Basis <strong>of</strong> Preparation<br />
These Financial Statements have been prepared in<br />
accordance with the Revised Statement <strong>of</strong> Recommended<br />
Practice (SORP): Accounting in Further and Higher<br />
Education Institutions and in accordance with applicable<br />
Accounting Standards. They conform to guidance<br />
published by Higher Education Funding Council<br />
for England.<br />
2. Basis <strong>of</strong> Accounting<br />
The Financial Statements are prepared under the historical<br />
cost convention modified by the revaluation <strong>of</strong> certain<br />
fixed assets.<br />
In preparing the financial statements for the current year,<br />
the <strong>University</strong> has adopted the following Financial<br />
<strong>Report</strong>ing Standards:<br />
the final transition arrangements requiring full adoption <strong>of</strong><br />
FRS17 “ Retirement Benefits”<br />
FRS21 “ Events after the balance sheet date”<br />
FRS25 “ Financial Instruments : Disclosure and Presentation”<br />
FRS28 “ Corresponding amounts”<br />
FRS17 “ Retirement Benefits”<br />
During the year the <strong>University</strong> has changed the accounting<br />
policy with respect to retirement benefits, following the<br />
mandatory full implementation <strong>of</strong> FRS 17 "Retirement<br />
Benefits". FRS 17 requires that financial statements reflect<br />
at fair value the assets and liabilities arising from an<br />
employer's retirement benefit obligations and any related<br />
funding. The operating costs <strong>of</strong> providing retirement<br />
benefits are recognised in the period in which they are<br />
earned, together with any related finance costs and<br />
changes in the value <strong>of</strong> related assets and liabilities. The<br />
results for <strong>2006</strong> have been prepared on the revised basis,<br />
and the 2005 results have been restated to reflect this<br />
change in accounting policy. The impact <strong>of</strong> the prior year<br />
adjustment is disclosed in note 13 to the financial<br />
statements. Financial <strong>Report</strong>ing Standards 21,25 and 28<br />
had no impact on the <strong>University</strong>.<br />
3. Basis <strong>of</strong> Consolidation<br />
The consolidated Financial Statements include the<br />
<strong>University</strong> and its subsidiary undertakings. The results <strong>of</strong><br />
subsidiaries acquired or disposed <strong>of</strong> during the period are<br />
included in the consolidated income and expenditure<br />
account from the date <strong>of</strong> acquisition or up to the date <strong>of</strong><br />
disposal. Intra-group sales and pr<strong>of</strong>its are eliminated fully<br />
on consolidation. In accordance with Financial <strong>Report</strong>ing<br />
Standard (FRS) 2, the activities <strong>of</strong> the Student Union have<br />
not been consolidated because the <strong>University</strong> does not<br />
control those activities.<br />
4. Recognition <strong>of</strong> Income<br />
Income from research grants, contracts and other services<br />
rendered is included to the extent <strong>of</strong> the completion <strong>of</strong> the<br />
contract or service concerned. This is generally equivalent<br />
to the sum <strong>of</strong> the relevant expenditure incurred during the<br />
year and any related contributions towards overhead costs.<br />
All income from short-term deposits is credited to the<br />
income and expenditure account in the period in which it is<br />
earned. Income from specific endowments and donations is<br />
included to the extent <strong>of</strong> the relevant expenditure incurred<br />
during the year, together with any related contributions<br />
towards overhead costs. Recurrent grants from the Funding<br />
Councils are recognised in the period in which they are<br />
receivable. Non-recurrent grants from Funding Councils or<br />
other bodies received in respect <strong>of</strong> the acquisition or<br />
construction <strong>of</strong> fixed assets are treated as deferred capital<br />
grants and amortised in line with depreciation over the life<br />
<strong>of</strong> the assets. All other income is credited to the Income<br />
and Expenditure Account in the period in which it<br />
is earned.<br />
5. Maintenance <strong>of</strong> Premises<br />
The <strong>University</strong> has a rolling long term maintenance plan,<br />
which forms the basis <strong>of</strong> the ongoing maintenance <strong>of</strong> the<br />
estate. The costs <strong>of</strong> long term and routine corrective<br />
maintenance are charged to the income and expenditure<br />
account as incurred.<br />
6. Foreign Currency Translation<br />
Transactions denominated in foreign currencies are<br />
recorded at the rate <strong>of</strong> exchange ruling at the dates <strong>of</strong> the<br />
transactions. Monetary assets and liabilities denominated in<br />
foreign currencies are translated into sterling either at year<br />
end rates or, where there are related forward exchange<br />
contracts, at contract rates. The resulting exchange<br />
differences are dealt with in the determination <strong>of</strong> income<br />
and expenditure for the financial year.<br />
7. Pension Schemes<br />
The three principal pension schemes for the <strong>University</strong>’s<br />
staff are the Universities Superannuation Scheme (USS),<br />
Greater Manchester Pension Fund (GMPF) and the Teachers<br />
Pension Scheme (TPS). All are defined benefit schemes<br />
which are externally funded and contracted out <strong>of</strong> the<br />
State Earnings Related Pension Scheme. Pension costs are<br />
assessed on the latest actuarial valuations <strong>of</strong> the schemes’<br />
and in the case <strong>of</strong> USS and TPS (both multi-employer<br />
39
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Statement <strong>of</strong> Principal Accounting Policies<br />
schemes’) the contributions are charged directly to the<br />
income and expenditure account as if the schemes’ were<br />
defined contribution schemes’. In the case <strong>of</strong> GMPF the<br />
schemes’ assets are included at market value and scheme<br />
liabilities are measured on an actuarial basis using the<br />
projected unit method; these liabilities are discounted at the<br />
current rate <strong>of</strong> return on AA rated corporate bonds. The<br />
post-retirement benefit surplus or deficit is included on the<br />
<strong>University</strong>’s balance sheet, net <strong>of</strong> the related amount <strong>of</strong><br />
deferred tax. Surpluses are only included to the extent that<br />
they are recoverable through reduced contributions in the<br />
future or through refunds from the schemes. The current<br />
service cost and any past service costs are included in the<br />
pr<strong>of</strong>it and loss account within operating expenses and the<br />
expected return on the schemes’ assets, net <strong>of</strong> the impact <strong>of</strong><br />
the unwinding <strong>of</strong> the discount on scheme liabilities, is<br />
included within other finance income. Actuarial gains and<br />
losses, including differences between the expected and<br />
actual return on scheme assets, are recognised, net <strong>of</strong> the<br />
related deferred tax, in the statement <strong>of</strong> total recognised<br />
gains and losses.<br />
8. Land and Buildings<br />
Land and Buildings are valued every 5 years in accordance<br />
with FRS15. The basis <strong>of</strong> valuation is a combination <strong>of</strong> the<br />
depreciated replacement cost and open market value.<br />
Additions in the intervening 5 years, prior to valuation are<br />
valued at cost. Land which is held freehold is not depreciated<br />
as it has an indefinite life. Buildings are depreciated over<br />
their expected useful lives up to a maximum <strong>of</strong> 50 years.<br />
Where building works are carried out to improve buildings,<br />
the refurbishment costs are capitalised and depreciated over<br />
their useful economic life. Where buildings are acquired with<br />
the aid <strong>of</strong> specific grants they are capitalised and depreciated<br />
as above. The related grants are treated as deferred capital<br />
grants and released to income over the expected useful life<br />
<strong>of</strong> the buildings. A review for impairment <strong>of</strong> fixed assets is<br />
carried out if there are significant events, or changes in<br />
circumstances which indicate that the carrying amount <strong>of</strong> the<br />
fixed assets may not be recoverable.<br />
9. Equipment<br />
Equipment, including computers and s<strong>of</strong>tware, costing more<br />
than £20,000 per individual item or group <strong>of</strong> related items is<br />
capitalised in the year <strong>of</strong> acquisition. Capitalised equipment<br />
is stated at cost and depreciated on a straight line basis over<br />
its expected useful life <strong>of</strong> between 3 and 20 years.<br />
Equipment which is not capitalised is charged to the Income<br />
and Expenditure Account as incurred. Where equipment is<br />
acquired with the aid <strong>of</strong> specific grants (except for research<br />
grants) it is capitalised and depreciated as above. The related<br />
grants are treated as deferred capital grants and released to<br />
income over the expected useful life <strong>of</strong> the equipment. In<br />
the case <strong>of</strong> research grants the equipment is capitalised and<br />
depreciated over the period <strong>of</strong> the research grants. The<br />
related research grants are treated as deferred capital grants<br />
and released to income over the life <strong>of</strong> the research grant.<br />
10. Leased Assets<br />
Costs in respect <strong>of</strong> operating leases are charged on a<br />
straight line basis over the lease term.<br />
11. Investments<br />
Fixed asset investments that are not listed on a recognised<br />
stock exchange are carried at historical cost less any<br />
provision for impairment in their value. Endowment asset<br />
investments are included in the balance sheet at market<br />
value. Current asset investments are included in the<br />
balance sheet at the lower <strong>of</strong> their original cost and net<br />
realisable value.<br />
12. Stocks<br />
Stocks are estimated at the lower <strong>of</strong> their cost and net<br />
realisable value. Where necessary, provision is made for<br />
obsolete, slow moving and defective stocks.<br />
13. Taxation<br />
The <strong>University</strong> is an exempt charity within the meaning <strong>of</strong><br />
schedule 2 <strong>of</strong> the Charities Act 1993 and as such is a charity<br />
within the meaning <strong>of</strong> section 506 (1) <strong>of</strong> the Income and<br />
Corporation Taxes Act (ICTA) 1988. Accordingly, it is<br />
potentially exempt from taxation in respect <strong>of</strong> income or<br />
capital gains received within categories covered by section<br />
505 <strong>of</strong> the ICTA 1988 or section 256 <strong>of</strong> the Taxation <strong>of</strong><br />
Chargeable Gains Act 1992, to the extent that such income<br />
or gains are applied to exclusively charitable purposes. The<br />
<strong>University</strong> receives no similar exemption in respect <strong>of</strong> Value<br />
Added Tax (VAT). The <strong>University</strong>’s subsidiary companies are<br />
subject to Corporation Tax and VAT in the same way as any<br />
commercial organisation.<br />
14. Liquid Resources<br />
Liquid resources include sums on short-term deposits<br />
with recognised banks and building societies and<br />
government securities.<br />
15. Provisions<br />
Provisions are recognised when the Group has a present<br />
legal or constructive obligation as a result <strong>of</strong> a past event<br />
and it is probable that a transfer <strong>of</strong> economic benefit will be<br />
required to settle the obligation and a reliable estimate can<br />
be made <strong>of</strong> the amount <strong>of</strong> the obligation.<br />
40
Notes to the Accounts<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Notes to the Accounts<br />
1 Funding Council Grants 2005-06 2004-05<br />
£’000 £’000<br />
Higher Education Funding Council<br />
Teaching Funds 43,104 41,850<br />
Research Funds 7,923 6,201<br />
Other 4,459 3,140<br />
Release <strong>of</strong> Land & Buildings Grants (Note 24) 1,230 1,109<br />
Release <strong>of</strong> Equipment Grants (Note 24) 1,213 1,037<br />
57,929 53,337<br />
2 Tuition Fees and Education Contracts 2005-06 2004-05<br />
£’000 £’000<br />
Full-time Students 12,156 11,509<br />
Full-time Students Charged Overseas Fees 10,853 10,741<br />
Part-time Students 4,719 4,189<br />
Research Training Support Grants 501 544<br />
Other Teaching Contracts 23,587 21,940<br />
Short Courses 491 603<br />
52,307 49,526<br />
3 Research Grants and Contracts 2005-06 2004-05<br />
£’000 £’000<br />
Research Councils 2,900 3,461<br />
UK Charities 465 292<br />
Central Government 2,037 2,022<br />
Industry 96 287<br />
European Union Central 1,607 2,190<br />
European Union Other 92 213<br />
Other Overseas 148 181<br />
Release <strong>of</strong> Equipment Grants (Note 24) 111 518<br />
7,456 9,164<br />
4 Other Income 2005-06 2004-05<br />
£’000 £’000<br />
Residencies, Catering and Conferences 8,419 7,941<br />
Other Services Rendered 15,483 16,242<br />
Other Income Generating Activities 4,246 3,614<br />
Release <strong>of</strong> Land & Buildings Grants (Note 24) 195 208<br />
Release <strong>of</strong> Equipment Grants (Note 24) 105 117<br />
28,448 28,122<br />
41
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Notes to the Accounts<br />
5 Endowment and Investment Income<br />
Restated<br />
2005-06 2004-05<br />
£’000 £’000<br />
Investment Income and Other Interest Receivable 518 1,321<br />
Allocated to Standardisation <strong>of</strong> Pension Benefits to<br />
Former <strong>University</strong> College Staff Provision (Note 23) (34) (34)<br />
Allocated to Specific Endowments (Note 25) (35) (44)<br />
Net return on pension scheme 163 -<br />
612 1,243<br />
6 Staff Costs 2005-06 2004-05<br />
Number Number<br />
The staff numbers by major category (including senior post holders)<br />
employed by the <strong>University</strong> during the period, expressed as full-time equivalent:-<br />
Academic 1,063 1,083<br />
Administrative, including clerical and manual 1,530 1,481<br />
2,593 2,564<br />
Restated<br />
2005-06 2004-05<br />
£’000 £’000<br />
Wages and Salaries 70,211 68,531<br />
Social Security Costs 5,756 5,471<br />
Other Pension Costs (Note 38) 8,998 8,100<br />
84,965 82,102<br />
Early Retirement and Voluntary Severance 1,386 2,206<br />
86,351 84,308<br />
Emoluments <strong>of</strong> the Vice-Chancellor 2005-06 2004-05<br />
£’000 £’000<br />
Salary 189 168<br />
Benefits in Kind 1 1<br />
Sub Total 190 169<br />
Pension Contributions 51 24<br />
Total Emoluments 241 193<br />
In 2004-05 the <strong>University</strong>’s contributions on behalf <strong>of</strong> the Vice–Chancellor to the <strong>University</strong> Superannuation<br />
Scheme (USS) were paid at the same rates as for the other academic staff and amounted to £23,546. In<br />
2005-06 the <strong>University</strong> reviewed the Vice-Chancellor’s pension arrangements in anticipation <strong>of</strong> the introduction<br />
<strong>of</strong> pension simplification legislation on 6 April <strong>2006</strong>. The <strong>University</strong> agreed to revise the Vice-Chancellor’s<br />
arrangements on the basis that no additional costs should be incurred by the <strong>University</strong>. This resulted in the<br />
Vice-Chancellor leaving the superannuation scheme with effect from 31 March <strong>2006</strong>. The savings made by the<br />
<strong>University</strong> in terms <strong>of</strong> the employer’s contribution have been paid to the Vice-Chancellor in the form <strong>of</strong> the<br />
purchase <strong>of</strong> “added years” in 2005-06 (£34,309) and enhanced salary with effect from 1 April <strong>2006</strong><br />
(approximately 7% per annum).<br />
42
Notes to the Accounts<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Remuneration <strong>of</strong> Other Higher Paid Staff Over £70,000 2005-06 2004-05<br />
(Including employer’s pension contributions, but excluding Number Number<br />
employer’s National Insurance)<br />
£ 70,001 - £ 80,000 15 13<br />
£ 80,001 - £ 90,000 8 2<br />
£ 90,001 - £100,000 1 2<br />
£100,001 - £110,000 2 2<br />
£110,001 - £120,000 1 -<br />
£120,001 - £130,000 - 1<br />
£170,000 - £180,000 1 -<br />
In 2005-06 a higher paid member <strong>of</strong> staff took early retirement. Additional pension contributions <strong>of</strong> £63,765<br />
were paid to USS and this is included in the relevant remuneration disclosure band.<br />
7 Other Operating Expenses 2005-06 2004-05<br />
£’000 £’000<br />
Fees and Invoiced Staff 2,173 2,501<br />
Staff Expenses (including travel, hospitality and conferences) 3,657 3,273<br />
Student Expenses 3,272 2,652<br />
Marketing 808 766<br />
Vehicle and Transport Costs 532 427<br />
Consumables 1,138 912<br />
Information Services 5,757 5,008<br />
Communications 1.208 1,105<br />
Stationery/Photocopying/Printing 1,849 1,809<br />
Equipment and Furniture 2,061 1,561<br />
Fees and Expenses 7,755 8,456<br />
Licences/Insurance/Subscriptions 2,241 2,138<br />
Catering 858 822<br />
Household Expenses 232 212<br />
Financial Charges 647 772<br />
Security 679 674<br />
Utilities/Rates/Rents 3,671 3,565<br />
Premises Maintenance 5,631 7,149<br />
Arts & Media Development Costs 3,845 -<br />
Subsidiary Company Expenditure 4,842 4,189<br />
52,856 47,991<br />
The status <strong>of</strong> a scheme to develop an Arts and Media Centre is currently under review. In the light <strong>of</strong> this,<br />
capitalisation <strong>of</strong> expenditure is not considered appropriate and the costs incurred to date have been written<br />
<strong>of</strong>f to expenditure.<br />
43
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Notes to the Accounts<br />
7 Other Operating Expenses (Continued) 2005-06 2004-05<br />
£’000 £’000<br />
Fees and Expenses includes:-<br />
External Auditors’ Remuneration 45 46<br />
Other Services from External Auditor 25 56<br />
Internal Auditors’ Remuneration 142 106<br />
8 Depreciation 2005-06 2004-05<br />
£’000 £’000<br />
The depreciation charge has been funded by:-<br />
Deferred Capital Grant (Note 24) 2,854 2,989<br />
Revaluation Reserve (Note 26) 1,267 1,394<br />
General Income 4,089 3,159<br />
8,210 7,542<br />
Restated<br />
9 Interest Payable 2005-06 2004-05<br />
£’000 £’000<br />
Net Interest on Pension Schemes (Note 38c) 427 393<br />
Students’ Union Deposit Interest 66 70<br />
Bank and Other Loans not Wholly Repayable within Five Years 1,432 1,145<br />
Loan Interest Payable 1,925 1,608<br />
Other Interest Payable 1 1<br />
1,926 1,609<br />
The Students’ Union deposits funds with the <strong>University</strong> for onward investment with Royal London Asset<br />
Management and Tilney Investment Management.<br />
44
Notes to the Accounts<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
10. Analysis <strong>of</strong> Expenditure by Activity<br />
Staff Costs Other Depreciation Interest Total<br />
Operating<br />
Expenses<br />
Restated Restated<br />
05/06 04/05 05/06 04/05 05/06 04/05 05/06 04/05 05/06 04/05<br />
£000 £000 £000 £000 £000 £000 £000 £000 £’000 £’000<br />
Academic<br />
Departments 50,154 47,665 12,030 11,528 1,060 864 - 33 63,244 60,090<br />
Academic Services 5,508 5,170 5,031 4,274 531 509 - 15 11,070 9,968<br />
Administration 11,665 10,510 8,347 7,638 338 708 - 19 20,350 18,875<br />
Premises 5,484 5,200 9,183 10,420 4,962 3,878 1,433 996 21,062 20,494<br />
Exceptional<br />
Premises Costs - - 3,845 - - - - - 3,845 -<br />
Residencies,<br />
Catering and<br />
Conferences 2,596 2,388 4,418 3,861 1,092 929 - 167 8,106 7,345<br />
Research Grants<br />
and Contracts 3,767 4,714 1,603 2,310 111 518 - - 5,481 7,542<br />
Other Expenses 7,177 8,661 8,399 7,960 116 136 493 379 16,185 17,136<br />
86,351 84,308 52,856 47,991 8,210 7,542 1,926 1,609 149,343 141,450<br />
45
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Notes to the Accounts<br />
11 Exceptional Items 2005-06 2004-05<br />
£’000 £’000<br />
Demolition <strong>of</strong> Meadow Road Campus 313<br />
Loss on demolition <strong>of</strong> Venables Building 434<br />
Impairment on anticipated demolition <strong>of</strong> Allerton Annexe 627<br />
Impairment on anticipated demolition <strong>of</strong> Lankester Building 214<br />
Disposal <strong>of</strong> 60% <strong>of</strong> Unity Marketplace Ltd 22<br />
Loss on liquidation <strong>of</strong> <strong>Salford</strong> <strong>University</strong> Business Enterprises Ltd (SUBEL) in<br />
2004/05<br />
Net Assets Disposed:-<br />
Cash 122<br />
Less Minority Interest (45)<br />
Less Disposal Proceeds (73)<br />
Total Exceptional Items 1,610 4<br />
12 Taxation<br />
There is no UK Corporation tax payable by the various organisations within the Group.<br />
13 Prior Year Adjustment<br />
The prior year adjustment has arisen due to the full implementation <strong>of</strong> FRS 17, as disclosed within the<br />
principal accounting policies and the re-analysis <strong>of</strong> accumulated income within specific endowments.<br />
Consolidated Income and 2004-05 Re-analysis <strong>of</strong> FRS 17 2004-05<br />
Expenditure Account Original Endowment Restatement Restated<br />
Accounts Transfer Accounts<br />
£’000 £’000 £’000 £’000<br />
Endowment & Investment Income (959) 215 (499) (1,243)<br />
Staff Costs 83,573 - 735 84,308<br />
Interest Payable 1,216 - 393 1,609<br />
Transfer from Accumulated Income<br />
Within Specific Endowments - (215) - (215)<br />
Net Consolidated Income and<br />
Expenditure Impact 83,830 - 629 84,459<br />
46
Notes to the Accounts<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Consolidated Balance Sheet 2005 Original FRS17 2005 Restated<br />
Accounts Restatement Accounts<br />
£’000 £’000 £’000<br />
Fixed Assets 132,177 - 132,177<br />
Endowments 817 - 817<br />
Net Current Assets 274 - 274<br />
Creditors: Amounts Falling Due After More<br />
Than One Year (22,953) - (22,953)<br />
Provisions for Liabilities and Charges (11,029) 9,040 (1,989)<br />
Net Assets Excluding Pension Deficit 99,286 9,040 108,326<br />
Pension Deficit - (25,415) (25,415)<br />
Net Assets Including Pension Deficit 99,286 (16,375) 82,911<br />
Deferred Capital Grants 28,603 - 28,603<br />
Specific Endowments 817 - 817<br />
Revaluation Reserve 38,164 - 38,164<br />
Income and Expenditure Reserve 31,702 9,040 40,742<br />
Pension Reserve - (25,415) (25,415)<br />
Total Funds 99,286 (16,375) 82,911<br />
<strong>University</strong> Balance Sheet 2005 Original FRS17 2005 Restated<br />
Accounts Restatement Accounts<br />
£’000 £’000 £’000<br />
Fixed Assets 132,070 - 132,070<br />
Endowments 817 - 817<br />
Net Current Liabilities (455) - (455)<br />
Creditors: Amounts Falling Due After More<br />
Than One Year (22,828) - (22,828)<br />
Provisions for Liabilities and Charges (11,029) 9,040 (1,989)<br />
Net Assets Excluding Pension Deficit 98,575 9,040 107,615<br />
Pension Deficit - (25,415) (25,415)<br />
Net Assets Including Pension Deficit 98,575 (16,375) 82,200<br />
Deferred Capital Grants 28,603 - 28,603<br />
Specific Endowments 817 - 817<br />
Revaluation Reserve 38,164 - 38,164<br />
Income and Expenditure Reserve 30,991 9,040 40,031<br />
Pension Reserve - (25,415) (25,415)<br />
Total Funds 98,575 (16,375) 82,200<br />
47
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Notes to the Accounts<br />
14 Tangible Assets Land & Buildings Assets in the Equipment Total<br />
Course <strong>of</strong><br />
Construction<br />
Consolidated £’000 £’000 £’000 £’000<br />
Historical Cost/Valuation<br />
At 1 August 2005 124,099 20,616 25,212 169,927<br />
Revaluation at 31 July <strong>2006</strong> 8,975 - - 8,975<br />
Additions 6,384 5,754 4,588 16,726<br />
Transfers 22,092 (22,092) - -<br />
Exceptional Arts & Media Development Costs - (3,845) - (3,845)<br />
Disposals (7,773) - (1,315) (9,088)<br />
At 31 July <strong>2006</strong> 153,777 433 28,485 182,695<br />
Depreciation<br />
At 1 August 2005 20,653 - 17,155 37,808<br />
Revaluation at 31 July <strong>2006</strong> (18,347) - - (18,347)<br />
Charge for the Year 5,499 - 2,711 8,210<br />
Exceptional Impairment charge 1,200 - - 1,200<br />
Disposals (7,390) - (1,306) (8,696)<br />
At 31 July <strong>2006</strong> 1,615 - 18,560 20,175<br />
Net Book Value<br />
At 31 July <strong>2006</strong> 152,162 433 9,925 162,520<br />
At 1 August 2005 103,446 20,616 8,057 132,119<br />
Land and Buildings with a net book value <strong>of</strong> £53,481,000 and have been funded from Treasury<br />
sources.Should these Land and Buildings be sold the <strong>University</strong> would either have to surrender the proceeds<br />
to the Treasury or use them in accordance with the <strong>University</strong>’s Financial Memorandum with the Higher<br />
Education Funding Council for England.The Land and Building assets <strong>of</strong> the <strong>University</strong> are freehold and were<br />
revalued on 31 July <strong>2006</strong> by Dunlop Haywards (Property Consultants).<br />
<strong>2006</strong> 2005<br />
£’000 £’000<br />
The net book value <strong>of</strong> the Land and Buildings can be analysed as:-<br />
<strong>2006</strong> Valuation Market Value 14,102 -<br />
<strong>2006</strong> Valuation Depreciated Replacement Cost 137,941 -<br />
2004 Valuation Market Value - 6,922<br />
2001 Valuation Depreciated Replacement Cost - 83,186<br />
2001 Valuation Market Value - 2,400<br />
Historical Cost (Including Assets in the Course <strong>of</strong> Construction) 552 31,554<br />
152,595 124,062<br />
48
Notes to the Accounts<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Land & Buildings Assets in the Equipment Total<br />
Course <strong>of</strong><br />
Construction<br />
<strong>University</strong> £’000 £’000 £’000 £’000<br />
Historical Cost/Valuation<br />
At 1 August 2005 124,099 20,616 24,481 169,196<br />
Revaluation at 31 July <strong>2006</strong> 8,975 - - 8,975<br />
Additions 6,384 5,754 4,563 16,701<br />
Transfers 22,092 (22,092) - -<br />
Exceptional Arts & Media Development Costs - (3,845) - (3,845)<br />
Disposals (7,773) - (863) (8,636)<br />
At 31 July <strong>2006</strong> 153,777 433 28,181 182,391<br />
Depreciation<br />
At 1 August 2005 20,653 - 16,475 37,128<br />
Revaluation at 31 July <strong>2006</strong> (18,347) - - (18,347)<br />
Charge for the Year 5,499 - 2,655 8,154<br />
Exceptional Impairment Charge 1,200 - - 1,200<br />
Disposals (7,390) - (863) (8,253)<br />
At 31 July <strong>2006</strong> 1,615 - 18,267 19,882<br />
Net Book Value<br />
At 31 July <strong>2006</strong> 152,162 433 9,914 162,509<br />
At 1 August 2005 103,446 20,616 8,006 132,068<br />
15 Investments <strong>2006</strong> 2005<br />
£’000 £’000<br />
Consolidated<br />
Trade Investments 49 58<br />
Investments in associated undertakings 31 -<br />
80 58<br />
<strong>University</strong><br />
Trade Investments 2 2<br />
49
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Notes to the Accounts<br />
Shares in Group Undertakings at 31 July <strong>2006</strong> represent investments, by the <strong>University</strong> and/or <strong>University</strong> <strong>of</strong> <strong>Salford</strong> Enterprises<br />
Limited in the following Companies which are all registered and operating in England and Wales.<br />
Company Name Principal Activity Class <strong>of</strong> Shares % Held % Held<br />
by the by the<br />
<strong>University</strong> Group<br />
<strong>Salford</strong> S<strong>of</strong>tware Limited S<strong>of</strong>tware Marketing Ordinary - 100.0<br />
<strong>University</strong> <strong>of</strong> <strong>Salford</strong> (Health Services Training)<br />
Limited Training Ordinary 100.0 100.0<br />
<strong>University</strong> <strong>of</strong> <strong>Salford</strong> Enterprises Limited Business Development ,<br />
Consultancy and Investment<br />
Management Ordinary 100.0 100.0<br />
Skyscope Limited Dormant Ordinary 100.0 100.0<br />
Crescent Purchasing Limited Purchasing Services Ordinary - 100.0<br />
On 31 January <strong>2006</strong> Unity Marketplace Ltd (a group company that was 100% owned at 31 July 2005) issued further shares<br />
to e – Government Solutions Limited. The effect <strong>of</strong> this was to dilute the Group’s effective share holding from100% to 40%.<br />
This investment is accounted for using the equity method <strong>of</strong> accounting.<br />
Trade investments by <strong>University</strong> <strong>of</strong> <strong>Salford</strong> Enterprises Limited and/or <strong>University</strong> <strong>of</strong> <strong>Salford</strong> in Companies registered and<br />
operating in England and Wales comprise:-<br />
Photonics Research Systems Limited Consultancy Ordinary - 24.0<br />
AUR Hydropower Limited Dormant Ordinary - 14.8<br />
The Incubation Partnership Limited Dormant Limited by Guarantee - 25.0<br />
Super Services Limited Marketing Ordinary 2.0 2.0<br />
Sustainability North WestLimited Research Limited by Guarantee 50.0 50.0<br />
Video Arts Limited Media Training Ordinary - 0.2<br />
CVD Technology Limited Industrial Processes Ordinary - 20.0<br />
Learning Expanse Limited E-Learning S<strong>of</strong>tware Ordinary - 20.0<br />
The Protocol Lab Limited Construction Industry S<strong>of</strong>tware Ordinary - 20.0<br />
Unity Marketplace Limited S<strong>of</strong>tware Development Ordinary 40.0 40.0<br />
NFAB Limited Nanotechnology Ordinary 3.1 3.1<br />
Contraception Education Limited Board Game Ordinary - 7.5<br />
Foodparks UK Limited Business Parks Ordinary - 10.0<br />
One Central Park Limited Business Parks Ordinary - 20.0<br />
Innomet Limited Wire Manufacture Ordinary - 10.0<br />
The <strong>University</strong> also has a small shareholding in CVCP properties plc, a company set up by Universities UK to own its head<br />
<strong>of</strong>fice building in central London. The Group’s share <strong>of</strong> the turnover <strong>of</strong> this company is not considered to be material.<br />
50
Notes to the Accounts<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
16 Endowment Asset Investments <strong>2006</strong> 2005<br />
£’000 £’000<br />
Consolidated and <strong>University</strong><br />
At 1 August 2005 817 866<br />
Increase/(Decrease) 21 (49)<br />
At 31 July <strong>2006</strong> 838 817<br />
All the endowment funds are invested in Short Term Investments in<br />
accordance with the treasury management policy <strong>of</strong> the <strong>University</strong>.<br />
17 Stock <strong>2006</strong> 2005<br />
£’000 £’000<br />
Consolidated<br />
Building and Engineering Stores 109 100<br />
Catering Stock 22 24<br />
Work in Progress 48 -<br />
Goods for sale 4 -<br />
183 124<br />
<strong>University</strong><br />
Building and Engineering Stores 109 100<br />
Catering Stock 22 24<br />
131 124<br />
18 Debtors <strong>2006</strong> 2005<br />
£’000 £’000<br />
Consolidated<br />
Amounts Falling Due Within One Year:<br />
Trade Debtors 5,413 6,323<br />
Amounts Due on Research Grants and Contracts 1,239 1,071<br />
Accrued Income 4,054 4,026<br />
Prepayments 1,295 1,544<br />
12,001 12,964<br />
<strong>University</strong><br />
Amounts Falling Due Within One Year:<br />
Trade Debtors 3,629 4,628<br />
Amounts Due on Research Grants and Contracts 1,239 1,071<br />
Accrued Income 3,076 3,998<br />
Prepayments 1,226 1,277<br />
Amounts Owed by Subsidiary Undertakings - 65<br />
9,170 11,039<br />
51
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Notes to the Accounts<br />
19 Investments <strong>2006</strong> 2005<br />
£’000 £’000<br />
Consolidated and <strong>University</strong><br />
Short Term Investments 4,747 16,660<br />
Allocated to Endowment Investments (Note 16) (838) (817)<br />
3,909 15,843<br />
20 Creditors: Amounts Falling Due Within One Year <strong>2006</strong> 2005<br />
£’000 £’000<br />
Consolidated<br />
Students’ Union Deposit 1,294 1,549<br />
Current Portion <strong>of</strong> Long Term Creditors 1,255 1,137<br />
Research Contract Payments Received on Account 1,920 2,082<br />
Trade Creditors 4,001 2,938<br />
Social Security and Other Taxation Payable 2,662 2,699<br />
Other Payroll Creditors 1,085 994<br />
Accruals 5,675 9,465<br />
Other Creditors 189 199<br />
Deferred Income 6,554 8,813<br />
24,635 29,876<br />
<strong>University</strong><br />
Students’ Union Deposit 1,294 1,549<br />
Current Portion <strong>of</strong> Long Term Creditors 1,255 1,087<br />
Research Contract Payments Received on Account 1,920 2,082<br />
Trade Creditors 3,177 2,617<br />
Social Security and Other Taxation Payable 1,892 1,824<br />
Other Payroll Creditors 1,085 994<br />
Accruals 5,473 9,214<br />
Other Creditors 189 210<br />
Deferred Income 4,786 5,783<br />
Amounts Due to Subsidiary Undertakings 1,500 3,185<br />
22,571 28,545<br />
52
Notes to the Accounts<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
21 Creditors: Amounts Falling Due After More Than One Year <strong>2006</strong> 2005<br />
£’000 £’000<br />
Consolidated<br />
Deferred Income 280 240<br />
Other Creditors - 929<br />
Repayable Grant from HEFCE 125 125<br />
Mortgages Secured on Residential and Other Property 20,698 21,659<br />
21,103 22,953<br />
<strong>University</strong><br />
Deferred Income 280 240<br />
Other Creditors - 929<br />
Repayable Grant from HEFCE 125 -<br />
Mortgages Secured on Residential and Other Property 20,698 21,659<br />
21,103 22,828<br />
22 Borrowings <strong>2006</strong> 2005<br />
22 (a) Bank Loans and Mortgages £’000 £’000<br />
Consolidated<br />
Amounts Falling Due Within 1 Year 1,130 1,137<br />
Amounts Falling Due Within 1 to 2 Years 1,181 1,130<br />
Amounts Falling Due Within 2 to 5 Years 2,533 3,714<br />
Amounts Falling Due After 5 Years or More 16,984 16,815<br />
21,828 22,796<br />
<strong>University</strong><br />
Amounts Falling Due Within 1 Year 1,130 1,087<br />
Amounts Falling Due Within 1 to 2 Years 1,181 1,130<br />
Amounts Falling Due Within 2 to 5 Years 2,533 3,714<br />
Amounts Falling Due After 5 Years or More 16,984 16,815<br />
21,828 22,746<br />
22 (b) Analysis <strong>of</strong> Loans<br />
Date Loan Security Date Interest Balance<br />
Obtained Repayable Rate £’000<br />
1996 Centenary Building 2021 Variable on Libor 3,208<br />
2001 None 2011 Variable on Libor 2,130<br />
2004 Mary Seacole Building 2030 Fixed at 5.86% 16,490<br />
<strong>University</strong> & Consolidated Total 21,828<br />
The <strong>University</strong> has also arranged for a £50m loan facility at a fixed rate to be drawn down by December 2008.<br />
53
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Notes to the Accounts<br />
23 Provisions for Liabilities and Charges<br />
Provision for Enhanced Pension Standardisation Total<br />
Residential Benefits Payable <strong>of</strong> Pension<br />
Accommodation to Retired Staff Benefits to Former<br />
Lease<br />
<strong>University</strong> College<br />
<strong>Salford</strong> Staff<br />
£’000 £’000 £’000 £’000<br />
Consolidated and <strong>University</strong><br />
As previously reported at 1 August<br />
2005 1,366 9,040 623 11,029<br />
Prior Year Adjustment - (9,040) - (9,040)<br />
Restated at 1 August 2005 1,366 - 623 1,989<br />
Expenditure in Year (1,366) - (127) (1,493)<br />
Interest on Funds (Note 5) - - 34 34<br />
Transfer from Income and<br />
Expenditure Account - - 91 91<br />
As at 31 July <strong>2006</strong> - - 621 621<br />
The prior year adjustment relates to the introduction <strong>of</strong> FRS 17 and the reclassification <strong>of</strong> enhanced pension<br />
benefits payable to retired staff within the pension scheme deficit.<br />
24 Deferred Capital Grants<br />
Land & Buildings Equipment Total<br />
£’000 £’000 £’000<br />
Consolidated and <strong>University</strong><br />
Higher Education Funding Council Grants<br />
At 1 August 2005 20,977 2,004 22,981<br />
Grant Received 1,767 2,398 4,165<br />
Released to Income and Expenditure (Note 1) (1,230) (1,213) (2,443)<br />
Exceptional Release on anticipated demolition <strong>of</strong><br />
Lankester Building (Note 11) (359) - (359)<br />
At 31 July <strong>2006</strong> 21,155 3,189 24,344<br />
Other Grants<br />
At 1 August 2005 5,173 449 5,622<br />
Grant Received - 59 59<br />
Released to Income and Expenditure (Notes 3,4) (195) (216) (411)<br />
At 31 July <strong>2006</strong> 4,978 292 5,270<br />
Total<br />
At 31 July <strong>2006</strong> 26,133 3,481 29,614<br />
At 1 August 2005 26,150 2,453 28,603<br />
54
Notes to the Accounts<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
25 Specific Endowments 2005-06 2004-05<br />
£’000 £’000<br />
Consolidated and <strong>University</strong><br />
At 1 August 2005 817 866<br />
Additions 49 122<br />
Interest (Note 5) 35 44<br />
Expenditure for Year (63) (215)<br />
At 31 July <strong>2006</strong> 838 817<br />
2005-06 2004-05<br />
£’000 £’000<br />
Representing:<br />
Prize Funds 251 231<br />
Chair and Lectureship Funds 112 124<br />
Other Funds 475 462<br />
At 31 July <strong>2006</strong> 838 817<br />
26 Revaluation Reserve <strong>University</strong> Consolidated<br />
£’000 £’000<br />
At 1 August 2005 38,164 38,164<br />
Transferred to Income and Expenditure Account (Note 27) (1,267) (1,267)<br />
Transfer to Income and Expenditure Account on disposal and demolition <strong>of</strong> buildings (503) (503)<br />
Revaluation <strong>of</strong> properties at 31 July <strong>2006</strong> (Note 14) 27,322 27,322<br />
At 31 July <strong>2006</strong> 63,716 63,716<br />
27 Income and Expenditure Reserve <strong>University</strong> Consolidated<br />
£’000 £’000<br />
Balance previously reported at 1 August 2005 30,991 31,702<br />
Prior Year Adjustment (Note 13) 9,040 9,040<br />
Restated Balance at 1 August 2005 40,031 40,742<br />
Transferred from Revaluation Reserve (Note 26) 1,267 1,267<br />
Transfer from Revaluation Reserve on disposal and demolition <strong>of</strong> buildings 503 503<br />
Transfer to Pension Reserve (Note 28) 920 920<br />
Deficit for the Financial Year (4,406) (4,122)<br />
As at 31 July <strong>2006</strong> 38,315 39,310<br />
28 Pension Reserve <strong>University</strong> Consolidated<br />
£’000 £’000<br />
Balance previously reported at 1 August 2005 - -<br />
Prior Year Adjustment (Note 13) (25,415) (25,415)<br />
Restated Balance at 1 August 2005 (25,415) (25,415)<br />
Actuarial Gain (Note 38b) 47 47<br />
Transferred from Income and Expenditure Reserve (Note 27) (920) (920)<br />
Pension Reserve at 31 July <strong>2006</strong> (26,288) (26,288)<br />
55
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Notes to the Accounts<br />
29 Financial Commitments <strong>2006</strong> 2005<br />
£’000 £’000<br />
At 31 July the annual commitments under non-cancellable<br />
operating leases were as follows:<br />
Consolidated<br />
Land and Buildings<br />
Within One Year 279 1,583<br />
Between Two and Five Years 134 358<br />
Over Five Years 57 57<br />
470 1,998<br />
Other<br />
Within One Year 100 -<br />
Between Two and Five Years 461 660<br />
Over Five Years - -<br />
561 660<br />
<strong>University</strong><br />
Land and Buildings<br />
Within One Year 279 1,583<br />
Between Two and Five Years 134 358<br />
Over Five Years 21 21<br />
434 1,962<br />
Other<br />
Within One Year - -<br />
Between Two and Five Years 100 660<br />
Over Five Years 461 -<br />
561 660<br />
30 Capital Commitments <strong>2006</strong> 2005<br />
£’000 £’000<br />
Consolidated and <strong>University</strong><br />
Commitments Contracted at 31 July 7,376 15,262<br />
Authorised but not Contracted at 31 July 64,849 53,275<br />
31 Contingent Liability<br />
Recent decisions handed down by the European Court <strong>of</strong> Justice (ECJ) may increase the liability for pension <strong>of</strong><br />
UK part time employers, such as the <strong>University</strong> <strong>of</strong> <strong>Salford</strong>. The implications <strong>of</strong> the ECJ decision are unclear<br />
and clarification is still awaited, following appeals lodged as a result <strong>of</strong> test cases through an employment<br />
tribunal. In view <strong>of</strong> this uncertainty, no financial provision has been made in the financial statements in<br />
relation to this matter.<br />
56
Notes to the Accounts<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
32 Reconciliation <strong>of</strong> Consolidated Operating Deficit to<br />
Restated<br />
Net Cash (Outflow)/Inflow from Operating Activities 2005-06 2004-05<br />
£’000 £’000<br />
Deficit before Taxation (4,185) (62)<br />
Depreciation 8,210 7,542<br />
Exceptional Fixed Assets Charges 1,583 -<br />
Disposal <strong>of</strong> Unity Marketplace Ltd/SUBEL (Note 11) 22 4<br />
Deferred Capital Grants Released to Income (Note 24) (3,213) (2,989)<br />
Investment Income (Note 5) (612) (1,243)<br />
Interest Payable and Similar Charges (Note 9) 1,926 1,609<br />
Increase in Stocks (59) (23)<br />
Decrease/(Increase) in Debtors 891 (3,206)<br />
(Decrease)/Increase in Creditors (5,809) 4,966<br />
Decrease in Provisions (1,368) (1,306)<br />
Difference Between Pension Charge and Pension Contributions (Note 27) 920 1,322<br />
Net Cash (Outflow)/Inflow from Operating Activities (1,694) 6,614<br />
Restated<br />
33 Returns on Investments and Servicing <strong>of</strong> Finance 2005-06 2004-05<br />
£’000 £’000<br />
Income from Endowments (Note 25) 35 44<br />
Income from Short Term Investments (Note 5) 612 1,243<br />
Interest Paid (Note 9) (1,926) (1,609)<br />
(1,279) (322)<br />
34 Capital Expenditure and Financial Investment 2005-06 2004-05<br />
£’000 £’000<br />
Tangible Assets Acquired (Note 14) (12,881) (28,826)<br />
Endowment Assets (Purchased)/Disposed (Note 16) (21) 49<br />
Investments (Purchased)/Disposed (Note 15) (22) 30<br />
Deferred Capital Grants Received (Note 24) 4,224 4,028<br />
Endowments Received (Note 25) 49 122<br />
(8,651) (24,597)<br />
35 Management <strong>of</strong> Liquid Resources 2005-06 2004-05<br />
£’000 £’000<br />
Movement in Students’ Union Deposit (255) 320<br />
Movement in Investments 11,934 10,247<br />
Net Cash Inflow from Management <strong>of</strong> Liquid Resources 11,679 10,567<br />
57
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Notes to the Accounts<br />
36 Analysis <strong>of</strong> Changes in Consolidated Financing 2005-06 2004-05<br />
£’000 £’000<br />
At 1 August 2005 22,796 14,367<br />
Loan from Barclays Bank Repayable by 2030 - 14,000<br />
Repayments <strong>of</strong> Amounts Borrowed (968) (5,571)<br />
Net Amount Borrowed during the year (968) 8,429<br />
At 31 July <strong>2006</strong> 21,828 22,796<br />
37 Analysis <strong>of</strong> Changes in 1 August 2005 Cash Flow 31 July <strong>2006</strong><br />
Consolidated Net Funds £’000 £’000 £’000<br />
Investments 15,843 (11,934) 3,909<br />
Students’ Union Deposit (1,549) 255 (1,294)<br />
14,294 (11,679) 2,615<br />
Cash at Bank and in Hand 1,219 (913) 306<br />
Debt Due Within One Year (1,137) 7 (1,130)<br />
Debt Due Over One Year (21,659) 961 (20,698)<br />
(7,283) (11,624) (18,907)<br />
38 Pension Schemes<br />
The three principal schemes for the <strong>University</strong>’s staff are the Universities Superannuation Scheme (USS), the<br />
Teacher’s Pension Scheme (TPS) and the Greater Manchester Pension Fund (GMPF).<br />
The total pension cost for the <strong>University</strong> and its subsidiaries was:-<br />
2005-06 2004-05<br />
£’000 £’000<br />
USS -Note 38(a) 5,026 4,736<br />
GMPF-Note 38(b) 3,029 2,375<br />
TPS -Note 38(c) 933 965<br />
Other Pension Schemes 10 24<br />
Ongoing Pension Costs (Note 6) 8,998 8,100<br />
USS Early Retirement Costs 592 502<br />
GMPF Curtailments and Settlements 66 31<br />
TPS Curtailments and Settlements 144 901<br />
Total Pension Costs 9,800 9,534<br />
58
Notes to the Accounts<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
38(a) Universities Superannuation Scheme (USS)<br />
The <strong>University</strong> participates in the Universities Superannuation Scheme, a defined benefit scheme, which is<br />
externally funded and contracted out <strong>of</strong> the State Second Pension. The assets <strong>of</strong> the scheme are held in a<br />
separate trustee administered fund. Under the definitions set out in FRS 17 (Retirement Benefits) the USS is a<br />
multi-employer pension scheme and the <strong>University</strong> is unable to identify its share <strong>of</strong> the underlying assets and<br />
liabilities <strong>of</strong> the scheme. Accordingly the <strong>University</strong> has taken advantage <strong>of</strong> the exemption in FRS 17 and has<br />
accounted for its contributions to the scheme as if it were a defined contribution scheme. The cost<br />
recognised within the Income and Expenditure Account is therefore equal to the contributions payable to the<br />
scheme for the year.<br />
The latest actuarial valuation was at 31 March 2005.The main results and assumptions <strong>of</strong> the valuation <strong>of</strong> the<br />
USS are as follows:-<br />
Latest Actuarial Valuation date 31 March 2005<br />
Valuation method<br />
Projected Unit<br />
Value <strong>of</strong> assets<br />
£21,740m<br />
Value <strong>of</strong> past service liabilities<br />
£28,308m<br />
Deficit<br />
£6,568m<br />
Funding level for accrued benefits 77%<br />
Investment return per annum for past service liabilities 4.5 %<br />
Salary increase per annum for past service liabilities 3.9%<br />
Pension increases per annum for past service liabilities 2.9%<br />
Investment return per annum for future service liabilities 6.2%<br />
Salary increases per annum for future service liabilities 3.9%<br />
Pension increases per annum for future service liabilities 2.9%<br />
The actuary also valued the scheme on a number <strong>of</strong> other bases as at the valuation date. Using the Minimum<br />
Funding Requirement prescribed assumptions introduced by the Pensions Act 1995, the scheme was 126%<br />
funded at that date; under the Pension Protection Fund regulations introduced by the Pensions Act 2004 it<br />
was 110% funded; on a buy-out basis (i.e. assuming the Scheme had discontinued on the valuation date) the<br />
assets would have been approximately 74% <strong>of</strong> the amount necessary to secure all the USS benefits with an<br />
insurance company; and using the FRS17 formula as if USS was a single employer scheme, the actuary<br />
estimated that the funding level would have been approximately 90%.<br />
The <strong>University</strong> contribution rate required for future service benefits alone at the date <strong>of</strong> valuation was 14.3%<br />
<strong>of</strong> salaries but it was agreed that the <strong>University</strong> contribution rate will be maintained at 14% <strong>of</strong> salaries.<br />
Surpluses or deficits which arise at future valuations may impact on the institution’s future contribution<br />
commitment. An additional factor which could impact the funding level <strong>of</strong> the scheme is that with effect<br />
from 16 March <strong>2006</strong>, USS positioned itself as a “last man standing” scheme so that in the event <strong>of</strong> the<br />
insolvency <strong>of</strong> any <strong>of</strong> the participating employers in USS, the amount <strong>of</strong> any pension funding shortfall (which<br />
cannot otherwise be recovered) in respect <strong>of</strong> that employer will be spread across the remaining participant<br />
employers and reflected in the next actuarial valuation for the scheme.<br />
59
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Notes to the Accounts<br />
38(b) Greater Manchester Pension Fund (GMPF)<br />
The <strong>University</strong> participates in the GMPF, which is an externally funded defined benefit pension scheme, which<br />
is contracted out <strong>of</strong> the State Second Pension, where contributions payable are held in a trust separately from<br />
the <strong>University</strong>.<br />
The following information is based upon a full actuarial valuation <strong>of</strong> the fund as at 31 March 2004 updated<br />
to 31 July 2005 and 31 July <strong>2006</strong> and a full actuarial valuation at 31 March 2001 updated 31 July 2004 by a<br />
qualified independent actuary (Hymans Robertson).<br />
31 July <strong>2006</strong> 31 July 2005 31 July 2004<br />
Inflation 3.1% 2.8% 2.9%<br />
Rate <strong>of</strong> increase in salaries 4.6% 4.3% 4.4%<br />
Rate <strong>of</strong> increase in pensions 3.1% 2.8% 2.9%<br />
Discount rate for liabilities 5.1% 5.0% 5.8%<br />
The assets in the scheme, <strong>of</strong> which the <strong>University</strong>’s share is estimated at 0.96% (2004/2005 0.95%, 2003/04<br />
0.98%), and the expected rates <strong>of</strong> return were:<br />
Value at Value at Value at<br />
31 July <strong>2006</strong> 31 July 2005 31 July 2004<br />
£’000 £’000 £’000<br />
Equities 5,515,700 5,043,000 4,190,000<br />
Bonds 1,408,100 1,188,000 1,019,000<br />
Property 794,000 684,000 618,000<br />
Cash 617,300 595,000 359,000<br />
Total Market Value <strong>of</strong> Assets 8,335,100 7,510,000 6,186,000<br />
Long term Long term Long term<br />
Rate <strong>of</strong> Return Rate <strong>of</strong> Return Rate <strong>of</strong> Return<br />
Expected at Expected at Expected at<br />
31 July <strong>2006</strong> 31 July 2005 31 July 2004<br />
Equities 7.7% 7.3% 7.9%<br />
Bonds 4.7% 4.7% 5.4%<br />
Property 5.7% 5.4% 6.7%<br />
Cash 4.8% 4.5% 4.5%<br />
<strong>2006</strong> 2005 2004<br />
£’000 £’000 £’000<br />
<strong>University</strong>’s Estimated Asset Share 80,081 71,350 60,602<br />
Present Value <strong>of</strong> Scheme Liabilities (93,874) (84,431) (72,033)<br />
Present Value <strong>of</strong> Unfunded Liabilities (4,617) (4,568) (4,252)<br />
Total Value <strong>of</strong> Liabilities (98,491) (88,999) (76,285)<br />
Deficit in the Scheme (18,410) (17,649) (15,683)<br />
60
Notes to the Accounts<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Analysis <strong>of</strong> the Amount Charged to the Income and Expenditure Account<br />
2005-06 2004-05<br />
£’000 £’000<br />
Service Cost 2,993 2,258<br />
Past Service Cost 36 117<br />
Curtailments and Settlements 66 31<br />
Total Operating Charge 3,095 2,406<br />
Analysis <strong>of</strong> Net Return on Pension Scheme<br />
2005-06 2004-05<br />
£’000 £’000<br />
Expected Return on Pension Scheme Assets 4,647 4,352<br />
Interest on Pension Scheme Liabilities (4,484) (4,444)<br />
Net Return 163 (92)<br />
Amounts Recognised in the Statement <strong>of</strong> Recognised Gains and Losses<br />
2005-06 2004-05<br />
£’000 £’000<br />
Actual Return Less Expected Return on Pension Scheme Assets 3,642 8,402<br />
Experience Gains and Losses Arising on the Scheme Liabilities (52) 415<br />
Change in Financial and Demographic Assumptions Underlying the<br />
Scheme Liabilities (3,543) (10,205)<br />
Actuarial Gain/(Loss) recognised in Statement <strong>of</strong> Gains and Losses 47 (1,388)<br />
Movements in Deficit during Year<br />
2005-06 2004-05<br />
£’000 £’000<br />
(Deficit) in Scheme at beginning <strong>of</strong> year (17,649) (15,683)<br />
Current Service Charge (2,993) (2,258)<br />
Contributions 1,827 1,637<br />
Contributions in respect <strong>of</strong> Unfunded Benefits 297 283<br />
Past Service Costs (36) (117)<br />
Impact <strong>of</strong> Settlements and Curtailments (66) (31)<br />
Net Interest/Return on Assets 163 (92)<br />
Actuarial Gain/(Loss) 47 (1,388)<br />
(Deficit) in Scheme at end <strong>of</strong> year (18,410) (17,649)<br />
61
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Notes to the Accounts<br />
(38(b) Greater Manchester Pension Fund (GMPF) Continued)<br />
History <strong>of</strong> Experience Gains or Losses<br />
2005-06 2004-05 2003-04 2002-03 2001-02<br />
Difference Between the Expected and<br />
Actual Return on Assets: £’000’s 3,642 8,402 2,029 (6) (9,467)<br />
% <strong>of</strong> Scheme Assets 4.5% 11.8% 3.3% 0.0% (18.8%)<br />
Experience Gains/(Losses) on Scheme<br />
Liabilities: £’000’s (52) 415 29 (4,448) 576<br />
% <strong>of</strong> Scheme Liabilities (0.1%) 0.5% 0.0% (6.2%) 1.1%<br />
Total Amounts Recognised in Statement<br />
<strong>of</strong> Gains and Losses Amounts - £’000’s 47 (1,388) 1,964 (12,592) (4,455)<br />
% <strong>of</strong> Scheme Liabilities 0.0% (1.6%) 2.6% (17.7%) (8.3%)<br />
38(c) Teachers’ Pension Scheme (TPS)<br />
Under the definitions set out in FRS 17 (Retirement Benefits), the TPS is a multi-employer pension scheme. The <strong>University</strong> is<br />
unable to identify its share <strong>of</strong> the underlying assets and liabilities <strong>of</strong> the scheme. Accordingly, the <strong>University</strong> has taken<br />
advantage <strong>of</strong> the exemption in FRS 17 and has accounted for its current service contributions to the scheme as if it were a<br />
defined contribution scheme.<br />
The Teachers’ Pension Scheme is an unfunded defined benefit scheme. Contributions on a “pay as you go” basis are credited to<br />
the Exchequer under arrangements governed by the Superannuation Act 1972.The pension cost is assessed every five years in<br />
accordance with the advice <strong>of</strong> the Government Actuary. The assumptions and other data that have the most significant effect<br />
on the determination <strong>of</strong> the contribution levels are as follows:-<br />
Latest actuarial valuation 31 March 2001<br />
Actuarial method<br />
Prospective Benefits<br />
Investment returns per annum 7.0%<br />
Salary scale increases per annum 5.0%<br />
Market value <strong>of</strong> notional assets at date <strong>of</strong> last valuation<br />
£102,010m<br />
Proportion <strong>of</strong> members’ accrued benefits covered by the actuarial value <strong>of</strong> the assets 100%<br />
62
Notes to the Accounts<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Following the implementation <strong>of</strong> Teachers’ Pensions (Employers’ Supplementary Contributions) Regulations 2000, the<br />
Government Actuary carried out a further review on the level <strong>of</strong> employers’ contributions. The <strong>University</strong> paid contributions <strong>of</strong><br />
13.5% from 1 April 2003 to 31 July <strong>2006</strong>.<br />
A number <strong>of</strong> early retirement benefits have been granted to TPS members and in this case the <strong>University</strong> is able to identify its<br />
share <strong>of</strong> the liabilities relating to early retirement. Prior to the introduction <strong>of</strong> FRS17 this was shown as part <strong>of</strong> the enhanced<br />
benefits payable to retired staff in Note 23.<br />
The major assumptions used were: -<br />
31 July <strong>2006</strong> 31 July 2005 31 July 2004<br />
Total Interest Rate for Calculating Interest on<br />
Pension Liabilities 6% 6% 6%<br />
Net Interest Rate to Discount Scheme Liabilities 2.5% 2.5% 3%<br />
<strong>2006</strong> 2005 2004<br />
£’000 £’000 £’000<br />
Present Value <strong>of</strong> Unfunded Liabilities 7,879 7,766 6,222<br />
Analysis <strong>of</strong> the Amount Charged to the Income<br />
and Expenditure Account<br />
2005-06 2004-05<br />
£’000 £’000<br />
Curtailments and Settlements 144 901<br />
Analysis <strong>of</strong> Net Return on TPS Scheme Early<br />
Retirements<br />
2005-06 2004-05<br />
£’000 £’000<br />
Interest on Pension Liabilities 427 301<br />
Analysis <strong>of</strong> Amounts Recognised in Statement<br />
<strong>of</strong> Recognised Gains and Losses<br />
2005-06 2004-05<br />
£’000 £’000<br />
Changes in Financial & Demographic Assumptions<br />
Underlying the Scheme Liabilities - (799)<br />
63
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Notes to the Accounts<br />
38(c) Teachers’ Pension Scheme (TPS) (Continued)<br />
Movements in Deficit During Year 2005-06 2004-05<br />
£’000 £’000<br />
(Deficit) in Scheme at Beginning <strong>of</strong> Year (7,766) (6,223)<br />
Contributions in respect <strong>of</strong> Unfunded Benefits 459 458<br />
Impact <strong>of</strong> Settlements and Curtailments (144) (901)<br />
Interest and Pension Liabilities (427) (301)<br />
Actuarial Gain/(Loss) - (799)<br />
(Deficit) in Scheme at End <strong>of</strong> Year (7,878) (7,766)<br />
History <strong>of</strong> Experience Gains or Losses<br />
2005-06 2004-05 2003-04 2002-03 2001-02<br />
Total Amounts Recognised<br />
in Statement <strong>of</strong> Gains and<br />
Losses Amounts - £’000’s - (799) (70) (72) (1,035)<br />
% <strong>of</strong> Scheme Liabilities - (10.29%) (1.12%) (1.16%) (18.23%)<br />
38(d)<br />
Pension Scheme Summary<br />
The implementation <strong>of</strong> FRS 17 ‘Retirement Benefits’ resulted in the pension scheme deficits and actuarial<br />
(losses)/gains being included in the Financial Statements as follows:-<br />
2005-06 2004-05<br />
£’000 £’000<br />
Balance Sheet – Pension Scheme Deficits<br />
Greater Manchester Pension Fund – Note 38(b) (18,410) (17,649)<br />
Teachers Pension Scheme Early Retirement – Note 38(c ) (7,878) (7,766)<br />
(26,288) (25,415)<br />
2005-06 2004-05<br />
£’000 £’000<br />
Statement <strong>of</strong> Total Recognised Gains & Losses<br />
Actuarial Gains/(Losses)<br />
Greater Manchester Pension Fund – Note 38(b) 47 (1,388)<br />
Teachers Pension Scheme Early Retirement – Note 38(c) - (799)<br />
47 (2,187)<br />
64
Notes to the Accounts<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
39 Access Funds<br />
2005-06 2004-05<br />
£’000 £’000<br />
Balance Brought Forward 182 238<br />
HEFCE Grants 1,294 1,402<br />
Interest Earned 25 33<br />
Administration Costs (66) (29)<br />
Disbursed to Students (1,254) (1,462)<br />
Balance Carried Forward 181 182<br />
Access Funding Council grants are available solely for students and the <strong>University</strong> acts only as paying agent.<br />
The grants and related disbursements are therefore excluded from the Income and Expenditure Account.<br />
40 Related Party Transactions<br />
Due to the nature <strong>of</strong> the <strong>University</strong>’s operations and the composition <strong>of</strong> the Council, being drawn from local<br />
public and private sector organisations it is inevitable that transactions will take place with organisations in<br />
which a member <strong>of</strong> the Council may have an interest.In particular Mr W B Pennington is Councillor <strong>of</strong> <strong>Salford</strong><br />
City Council and Mr D Lancaster is a Councillor <strong>of</strong> <strong>Salford</strong> City Council representing the Association <strong>of</strong><br />
Greater Manchester Authorities.<br />
All transactions involving organisations in which a member <strong>of</strong> the Council may have an interest are declared<br />
and conducted at arms length, in accordance with the <strong>University</strong>’s Financial Regulations and normal<br />
procurement procedures.<br />
The <strong>University</strong> has taken advantage <strong>of</strong> the exemption allowed by Financial <strong>Report</strong>ing Standard 8 not to<br />
disclose transactions between group companies.<br />
The <strong>Salford</strong> <strong>University</strong> Students’ Union has a close relationship with the <strong>University</strong>. The financial transactions<br />
between the two organisations can be summarised as:-<br />
2005-06 2004-05<br />
£’000 £’000<br />
<strong>Annual</strong> Grant Paid to Students’ Union from <strong>University</strong> 715 669<br />
Travel Agency and Other Services Paid to Students’ Union from <strong>University</strong> 188 466<br />
Payments made to the <strong>University</strong> from Students’ Union for Services Provided (152) (141)<br />
At the 31 July <strong>2006</strong> Student’s Union had £1,294,000 (2005: £1,549,000) invested with the <strong>University</strong> <strong>of</strong><br />
<strong>Salford</strong> as detailed in Note 20.<br />
65
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Notes<br />
Notes<br />
66
Notes<br />
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Notes<br />
67
<strong>Annual</strong> <strong>Report</strong> &<br />
Financial Statements<br />
Notes<br />
Notes<br />
68