2006 Annual Report - University of Salford

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Annual Report & Financial Statements Membership of the Council 2005 - 06 Membership of the Council 2005-06 Ex-officio Members Chancellor Sir Martin Harris Pro-Chancellor Mr R Batters Vice-Chancellor Professor M Harloe Pro-Vice-Chancellors Professor P S Barrett Mr M Garrity Miss H J Hanstock Professor J A Powell Representative Members Salford City Council Councillor W B Pennington Association of Greater Manchester Authorities Councillor D Lancaster Appointed Members (Court) Dr N Chamberlain Ms F Goodey Mr D C Longley Dr C Tyler Mr C Wells (Vice-Chair of Council and Chair of Estates Committee) Appointed Members (Senate) Professor S Donnelly Mrs M Butler Professor S Donnelly Professor B Longhurst Professor C A Roberts Professor D Storey Professor R Towell Co-opted Members Members co-opted by the Council Mr T Britten Ms L Clarke Mr A Gibson (Chair of Council) Mr J Greenough (Chair of Finance Committee) Mrs J Procter (Chair of Personnel Committee) Mr N Renfrew Mr K Simmons (Chair of Audit Committee) Mr J C Willis One member of the Academic Related Staff of the University Mrs C Hughes One member of the Non-Academic Staff of the University not paid on academic related scales Miss J Yates Two members of the Students’ Union Ms T Robert Ms S Winter 24
Financial Review Annual Report & Financial Statements Financial Review Scope of the Financial Statements 1 The Financial Statements comprise the consolidated (Group) results of the University of Salford (University) and its subsidiary undertakings. The Group structure is set out on page 26. Income and Expenditure Account 2 The Group Income and Expenditure for the years to 31 July are summarised as follows:- 2005-06 Restated 2004-05 £m £m Income 146.8 141.4 Expenditure – Recurrent 145.5 141.5 Surplus/(Deficit) before Arts & Media Development Costs 1.3 (0.1) Expenditure – Arts & Media Development Costs 3.9 - (Deficit) before Exceptional Property Costs and Company Disposals (2.6) (0.1) 3 The University’s income in 2005-06 rose by £5.4m (3.8%) compared with the previous year. The main increases were in Funding Council grants and education contracts with the National Health Service. 4 Recurrent Expenditure increased by £4.0m (2.8%). Staffing costs, excluding the cost of early retirements and voluntary severance, rose by £2.8m (3.5%) reflecting annual pay increases and internal promotions. The recurrent pay bill represents some 58.4% of expenditure which is slightly less than the average for the sector. There was a fall of £0.8m in retirement and severance costs. Other Operating Expenses increased by £1.0m (2.1%). 5 There was, however, expenditure of £3.9m relating to the development costs on a proposed Arts and Media Centre. The scheme is currently under review due to a need to control costs. In the light of this, capitalisation of expenditure is not currently considered appropriate. 6. The underlying result for the year, a Surplus of £1.3m before Arts & Media development costs and exceptional charges, represents a sound performance. Exceptional charges of £1.6m related to the impairment costs and demolition of a number of redundant buildings. The Group’s result assessed on the basis of historical cost, that is excluding depreciation charges which result from property valuations, was a deficit of £2.4m (2005: surplus £1.5m). The result has reduced income and expenditure reserves excluding pension liabilities to £39.3m which exceeds the net pension liability of £26.3m leaving net reserves of £13m. Balance Sheet 7. On 31 July 2006 the University’s land and buildings were re-valued by Dunlop Haywards, Chartered Surveyors. These assets were valued at £152.6m compared to an original Net Book Value of £125.3m and the Revaluation Reserve was therefore increased by £27.3m. 8. The Group made capital investments during the year of £12.9m (2005:£28.8m). Of this amount some £8.3m was invested in buildings, including the completion of a new Health Faculty Building, which was opened in October 2005, and a continuing programme of major refurbishments. The University’s Peel Park Campus and Allerton Building have been upgraded and the Meadow Road Campus was vacated and demolished. Some £4.6m was spent on major equipment purchases. 9. Of the capital investment £4.2m was financed through capital grants received and the remainder was financed from internal resources pending the draw down of loan finance and the generation of capital receipts from the disposal of some land and student residences. The Group’s net liquid funds reduced temporarily by £12.8m to £4.2m. 10. The University’s long term borrowings are comparatively low within the Higher Education Sector and the University plans to finance further capital investment through borrowing. The University has facilities with Barclays Bank to borrow £6m for the Law School and £50m to finance the revised Arts and Media Centre in due course. 25
Page 1 and 2: University of Salford Annual Report
Page 3 and 4: Annual Report & Financial Statement
Page 5 and 6: Vice-Chancellor’s introduction An
Page 7 and 8: Sharing knowledge - forging partner
Page 9 and 10: Shaping graduates - supporting soci
Page 11 and 12: Nurturing experiences - creating op
Page 13 and 14: Maximising research - tackling issu
Page 15 and 16: Maximising research - tackling issu
Page 17 and 18: Thinking globally - broadening hori
Page 19 and 20: Thinking globally - broadening hori
Page 21 and 22: Encouraging recognition - celebrati
Page 23 and 24: Encouraging recognition - celebrati
Page 25: Financial Statements Annual Report
Page 29 and 30: Statement of Primary Responsibiliti
Page 31 and 32: Corporate Governance Statement Annu
Page 33 and 34: Statement of the Council’s Respon
Page 35 and 36: Report of the Independent Auditors
Page 37 and 38: Consolidated Statements Annual Repo
Page 39 and 40: University Balance Sheet University
Page 41 and 42: Statement of Principal Accounting P
Page 43 and 44: Notes to the Accounts Annual Report
Page 69 and 70: Notes Annual Report & Financial Sta

2006 Annual Report - University of Salford

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