No 6329
Tuesday 10 December 2013
Vol cxliv No 12
pp. 156–217
The commentary that follows is intended to give the readers of the financial statements an overview of the finances and operations of the University group including Cambridge Assessment and Cambridge University Press. It should be read in conjunction with the Annual Report of the Council and the Annual Report of the General Board to the Council for the academical year 2012–13, which are published alongside these financial statements. The financial position of the teaching and research activities of the University may be seen more clearly in the Financial Management Information published in the Reporter. Further detailed information about the finances and operations of Cambridge Assessment and Cambridge University Press is given in the annual reports of those entities which are also published.
The consolidated financial statements cover the teaching and research activities of the University, its subsidiary companies which undertake activities which for legal or commercial reasons are more appropriately carried out by limited companies, Cambridge Assessment and Cambridge University Press and their subsidiary companies and joint ventures, the Gates Cambridge Trust, and certain other Trusts (the ‘Associated Trusts’).
Cambridge Assessment and Cambridge University Press are constituent parts of the corporation known as the Chancellor, Masters, and Scholars of the University of Cambridge. Cambridge Assessment’s primary work is the conduct and administration of examinations in schools and for persons who are not members of the University. Cambridge University Press is the publishing house of the University dedicated to publishing for the advancement of knowledge, education, and learning worldwide.
The Gates Cambridge Trust and the Associated Trusts are separately constituted charities. They are deemed to be subsidiary undertakings of the University since the University appoints the majority of the trustees of each trust. The purposes of these trusts are to support the University by enabling persons from outside the United Kingdom to benefit from education in the University by the provision of scholarships and grants and otherwise.
The mission of the University of Cambridge is to contribute to society through the pursuit of education, learning, and research at the highest international levels of excellence.
Its principal activities are teaching and learning, research, stewardship of collections and ancient buildings, and the activities of Cambridge Assessment and Cambridge University Press.
The sources of income of the University:
•the government, which through the Higher Education Funding Council for England (HEFCE) provides a block grant for teaching and a grant determined by the quality and volume of research through the Research Assessment Exercise last carried out in 2008;
•students through fees charged for instruction and facilities;
•research income from publicly funded Research Councils, charitable foundations, European Union funding, and through collaborations with the private sector;
•benefactions and donations for current use;
•investment income from our accumulated endowment and other assets;
•income from services provided to external customers, including the customers of Cambridge Assessment and Cambridge University Press;
•a small but increasing income from commercialization of intellectual property.
The main investment pool generating endowment and investment income is the Cambridge University Endowment Fund (CUEF). The CUEF is managed on a total return basis, such that the amount distributed for budgetary expenditure is determined by a formula which has regard to the total return reasonably to be expected in the long term. The CUEF’s portfolio is largely invested indirectly through fund managers with this approach intended to maximize total investment return. A substantial proportion of the CUEF’s current investments yield little or no income in the form of dividends, interest, and rents. In the year ended 31 July 2013, distributions by the CUEF exceeded the income received from its underlying investments by £61m (2012: £54m), the balance of the distributions being funded by drawing on long-term capital growth.
In these financial statements total endowment and investment income includes the income from CUEF’s underlying investments rather than the distributions made by the CUEF. The impact is that endowment and investment income is £61m less than it would have been had it been based on distribution, with a corresponding increase in capital gains (reflected in the statement of recognized gains and losses). For the individual trust funds and other endowment funds which have invested capital in the CUEF, the full distribution remains available as income.
The consolidated results for the year ended 31 July 2013 are summarized in Table 1.
|
Table 1 Consolidated results |
2012–13 £m |
2011–12 £m |
Change % |
|
Income |
1,438 |
1,322 |
+8.8% |
|
Expenditure |
(1,415) |
(1,317) |
+7.4% |
|
Surplus on continuing operations |
23 |
5 |
|
|
Minority interests |
– |
(1) |
|
|
Transfer from restricted endowments |
50 |
44 |
|
|
Surplus for the year retained within general reserves |
73 |
48 |
|
|
Net assets |
3,074 |
2,641 |
+16.4% |
Corresponding figures including the element of CUEF distributions funded out of long-term capital growth, as explained above, are:
|
2012–13 £m |
2011–12 £m |
||
|
Income |
1,499 |
1,376 |
|
|
Surplus for the year retained within general reserves |
99 |
70 |
This consolidated position is built up from the University’s three main segments: its core academic activities and the assessment and publishing activities carried out by Cambridge Assessment and Cambridge University Press respectively. Within the group there are a number of intra-group transactions, principally the financial and other support for the University’s academic activities made by both Cambridge Assessment and the Press. Table 2 gives segmental information.
|
Table 2 Surplus / (deficit) on continuing operations |
Income £m |
Expenditure £m |
Surplus / (deficit) £m |
||
|
Results by segment |
Education and research |
857 |
895 |
(38) |
|
|
Cambridge Assessment |
324 |
287 |
37 |
||
|
Cambridge University Press |
275 |
261 |
14 |
||
|
Financial support to the University from Cambridge Assessment |
(16) |
(16) |
– |
||
|
Financial support to the University from Cambridge University Press |
(2) |
(2) |
– |
||
|
Pension scheme and other adjustments |
– |
(10) |
10 |
||
|
1,438 |
1,415 |
23 |
|||
The education and research activities of the University group were in deficit for the year, after accounting for investment income as described above. The recurrent and special grants from HEFCE reduced by £12m with a reduction in funding for teaching as the new funding regime for Home/EU undergraduates was introduced. This was more than offset by an increase of £34m in academic fees and support grants.
Research grants and contracts income increased by £38m, a little over 13%, which includes research income arising from research units transferred in the year to the University from Cancer Research UK and the Medical Research Council. Charity and European Commission sources of research grant income continued their steady growth, although income from Research Councils remained broadly flat.
The University’s international exams group Cambridge Assessment designs and delivers assessments to over eight million learners in over 170 countries. Cambridge Assessment offers these qualifications through three exam boards: Cambridge English Language Assessment, Cambridge International Examinations, and Oxford Cambridge and RSA Examinations (OCR).
Income from its examination and assessment services was £317m (2012: £300m) in the year. The international businesses of English language testing and of international examinations remain particularly strong, with the IELTS qualification continuing good growth, offsetting a difficult environment for OCR which is subject to the volatility of national policy on qualifications in the UK. Cambridge Assessment transferred £16m (2012: £33m) during the year in support of the University’s teaching and research activities.
The Cambridge University Press is the University’s publishing arm. Its mission is to further through publication the University’s objective of advancing learning, knowledge, and research worldwide. The Press is organized into three main streams: Academic books and journals, English Language teaching materials, and Education publishing. The Press has a growing programme of digital products in academic books and journals, and has expanded its collaboration with Cambridge Assessment in English language materials and testing. Revenues from publishing and printing services increased over 2012–13 to £263m (2012: £241m), and after an accounting gain of £6m on disposal of its US warehouse, increased its surplus.
The University receives and generates significant Other Income, including contributions from Health and hospital authorities, income from intellectual property managed primarily through Cambridge Enterprise Limited, unrestricted donations of £14m (2012: £14m), rents from its non-operational properties, and donations of, and for the purchase of, heritage assets. This latter item was particularly material at £16m in 2012–13, mainly arising from the acquisition by the Fitzwilliam Museum of Poussin’s Extreme Unction.
Table 3 below gives the movement in net assets showing the capital flows into the group, analyzed into its three main segments, and the impact of changes in the values of investment assets.
|
Table 3 Movement in net assets |
Education and research |
Cambridge Assessment |
Cambridge University Press |
University Assistants Pension scheme |
Total |
|
£m |
£m |
£m |
£m |
£m |
|
|
Net assets at 31 July 2012 |
2,607 |
294 |
6 |
(266) |
2,641 |
|
Surplus / (deficit) on continuing operations |
(38) |
37 |
14 |
10 |
23 |
|
Currency adjustments |
– |
– |
(3) |
– |
(3) |
|
New endowment capital |
41 |
– |
– |
– |
41 |
|
External funding for capital expenditure |
9 |
– |
– |
– |
9 |
|
Actuarial loss on retirement benefits |
– |
– |
27 |
(35) |
(8) |
|
Increase in investment values |
346 |
25 |
– |
– |
371 |
|
Net assets at 31 July 2013 |
2,965 |
356 |
44 |
(291) |
3,074 |
Increases in values of endowment and other financial assets, in a strong year for investment markets, inflows to the endowment from benefactions and donations, together with surpluses from its assessment and publishing activities, brought the University’s net assets to over £3 billion for the first time.
The University continues its investment in refreshing, renewing, and expanding its academic estate and equipment and in the physical facilities and IT infrastructure for Cambridge Assessment and Cambridge University Press. This continual investment in infrastructure is essential if the University is to remain globally competitive.
Major capital expenditure projects, mainly new buildings, are funded from a combination of sources including operating cash flows, government funding through HEFCE, and external donations. Equipment is funded mainly by research grant sponsors, supplemented by operating cash flows. The University’s capital planning framework schedules buildings and large equipment purchases over a planning period of up to 20 years to match academic priorities and to take account of inter-dependencies between projects. Cambridge Assessment and the Press similarly have major programmes of capital expenditure on office and logistics buildings and on enhanced business systems.
Over the year the University’s total capital expenditure on property, plant, and equipment was £117m, of which £88m was in respect of the University’s academic activities. In addition heritage assets were acquired at a value of £16m provided or funded mainly through donations.
Major items of expenditure incurred in the year are set out in Table 4, and include early works on the North West Cambridge development, new buildings for Materials Science and Metallurgy and for Chemical Engineering and Biotechnology, the new Sports Centre, the Battcock Centre of Astrophysics, and contributions to the new MRC Laboratory of Molecular Biology on the Addenbrooke’s site.
Other investment was made over a number of projects across the University’s main sites, and in expenditure, primarily on business systems by Cambridge Assessment and Cambridge University Press. During the year the Press disposed of a warehouse in the US for proceeds of £16m.
|
Table 4 |
£m |
|
|
Materials Science and Metallurgy building |
20 |
|
|
Sports Centre |
13 |
|
|
New Chemical Engineering and Biotechnology building |
7 |
|
|
MRC Laboratory of Molecular Biology 2 |
6 |
|
|
Other new build, improvements, and refurbishment |
14 |
|
|
Total academic estate buildings |
60 |
|
|
Equipment for academic purposes |
14 |
|
|
Heritage assets (excluding donated assets) |
5 |
|
|
North West Cambridge |
14 |
|
|
Cambridge Assessment total |
19 |
|
|
Cambridge University Press total |
10 |
|
|
Total additions excluding donated assets |
122 |
The University is developing its site at North West Cambridge, currently comprising primarily agricultural land. Outline planning consent for the overall site was granted in mid-2012. The proposals include site infrastructure and landscaping, University housing for letting to staff, market housing for sale and let, supermarket and retail units, and further sites for research. This will contribute to the strategic need to provide affordable and high quality housing for post-doctoral research staff and others at the beginning of their careers with the University. The development will add to the long-term strategy of the University in allowing further expansion of academic activities. The market housing, which will number 1,500 units, and retail and commercial developments, contribute significantly to the viability of the development.
The University is progressing with a first phase of the development comprising some 530 residential units for University and related staff, approximately 300 postgraduate accommodation units, development sites for approximately 500 units for market sale to residential developers, and a local centre with shops, a supermarket, and other facilities. This first phase is expected to involve a peak investment by the University of approximately £250 million by 2015.
The University’s endowment and other investments support posts and activities and gives important financial assistance to students. The investment assets are managed in three principal pools:
The majority of fixed asset investments and endowment assets are held in the CUEF, which is managed by the University’s Investment Office with the advice and oversight of the Investment Board. The CUEF is managed on a total return basis with a long-term investment objective of RPI plus 5.25%. The amount distributed for expenditure in the operating budget is determined by a formula based on underlying capital values combined with factors which smooth the rate of spending changes from year to year, allowing a degree of certainty for planning purposes.
Colleges and other charities linked with the University are permitted to invest in the CUEF, to gain from its scale, diversification, and professional management. The Gates Cambridge Trust and the Associated Trusts are substantially invested in the CUEF, and a number of Colleges have made investments.
As at 31 July 2013 the CUEF had a market value of £2,137m (2012: £1,651m), of which £72m was invested by Colleges. The increase was a result of investment performance and new funds invested during the year less the amounts distributed for spend on operations.
The investment performance of the CUEF is monitored to a 30 June year-end. The CUEF’s investment return was 20.0% in the year to June 2013, and an annualized 8.3% for the five years to 30 June 2013. Both the short and medium-term results were ahead of the Fund’s long-term investment objective and ahead of its principal benchmarks. The rolling three-year volatility of the fund, based on quarterly numbers, was 9.3% to June 2013, compared to 15.2% for the MSCI All Country World index in sterling.
The CUEF operates an evolving asset allocation and the proposed changes over the following twelve months are revised quarterly in discussion with the Investment Board. Over the year, the fund’s broad asset allocation was not changed materially, but there was a measured increase in investment in less liquid credit markets. As at 30 June 2013, the actual asset allocation was global equities 65%, absolute return 13%, private investments 9%, credit 3%, real assets including property 9%, and fixed income including cash 1%. Through the year the exposure to assets denominated in sterling was approximately 50%.
The majority of the University and Group current asset investments are invested in the deposit pool. This pool is managed by the Finance Division according to guidelines on diversification, exposure, and credit quality agreed by the Finance Committee and subject to external advice. The investments are principally short-term deposits with banks and similar institutions.
Some long-term investments are held outside the CUEF including certain investment properties in Cambridge, other securities, and equity investments in spin-out companies overseen by the University’s technology transfer company Cambridge Enterprise.
Staff costs make up 43% of the University group’s total operating expenditure and 56% in respect of the University’s teaching and research activities. Staff costs increased by 4.5% over the prior year to £605m. There was continuing pay restraint in the uncertain economic conditions, although staff numbers increased with the transfer of staff from Cancer Research UK and MRC units and staff costs of Cambridge Assessment again increased slightly in line with its business growth.
The costs and risks of the pension schemes to which the University is exposed remain of concern. The Universities Superannuation Scheme (USS) is a very large multi-employer scheme. The scheme actuary has estimated the funding ratio of USS at 31 March 2013 at 77% with a deficit of £11.5 billion. The deficit of the USS is not reflected in the University’s balance sheet but is a major exposure for the University. Changes have been introduced by the USS in benefits in respect of future service in order to make the scheme affordable and sustainable. The University’s contribution to the USS continues at 16% of pensionable pay.
The University group has three other major schemes: the Cambridge University Assistants’ Contributory Pension Scheme (CPS) for assistant staff of the teaching and research activities of the University, and two schemes for staff of the Cambridge University Press. The CPS is a defined benefit scheme open to new joiners and to future accrual. The University is making deficit-recovery contributions to the scheme of £14.6m per annum for fourteen years commencing August 2011. Certain changes to future service benefits were introduced from 1 January 2013 in order to reduce risk and cost to the University in the interests of making the CPS affordable and sustainable. The Cambridge University Press defined benefit schemes are closed to new joiners and are subject to annual recovery plan payments currently at £4.4m and rising over the course of the plan period.
The CPS and the Press’s schemes, being single-employer schemes, are included in the financial statements following Financial Reporting Standard 17 (FRS 17). The total pension liability under FRS 17 is £364m (2012: £369m), of which £73m relates to the Press’s schemes.
The benefits of philanthropy are long-term, strengthening Cambridge’s financial security for posterity at a time of intensifying global competition and uncertainty. The University and the Cambridge Colleges are committed to continued investment in fundraising and in building close relationships with alumni and supporters internationally. In the course of 2012–13 the University received £41m (2012: £43m) in new endowment capital and £14m (2012: £14m) as unrestricted donations.
On 17 October 2012 the University issued £350m of 3.75% unsecured bonds due October 2052. The bonds are listed on the London Stock Exchange. The net proceeds of the issue of £342m are for general corporate purposes, including investment in research facilities, accommodation, and other assets. Pending application to the capital programme and in the North West Cambridge development, the funds raised are invested in the CUEF and other investment vehicles.
The University is rated Aaa (stable) by Moody’s Investor Services.
The financial landscape is evolving as policy changes in student funding are implemented and government policy for higher education funding develops, in part due to constraints on public spending. The recurrent grants from HEFCE are likely to remain a core part of the University’s income, though the teaching grant continues to reduce, offset by an increase in home student tuition fees. The University’s undergraduate numbers will remain constant whilst graduate numbers are expected to continue to follow the historic trend of around 2 per cent growth per annum. This, in conjunction with a continuing revision of our post-graduate fees, should provide a steady net increase in funding.
The HEFCE recurrent grant for research remains broadly level but there are increasing challenges in replacing the significant reduction in its capital funding stream.
Cambridge Assessment’s overseas activities are expected to continue to thrive and the closer collaboration with the Press in Cambridge English is proving successful. The OCR business stream is subject to policy and regulatory changes in the UK but is investing for the future. Cambridge Assessment is maintaining its programme of investment in systems and in office and other facilities. Cambridge University Press continues to find its markets demanding, particularly in the US, and the acceleration of digital publishing and concentration of its customers is a challenge. However, the Press is well on track to increase steadily its turnover and its surplus, so that it remains in a good position to continue to invest for the future.
Investment returns were strong over 2012–13, with favourable impact on the University’s investment assets and the assets of its pension schemes. However, global economic uncertainties remain, the impact of the removal of quantitative easing and the inflation outlook all make the returns at the target levels challenging over the near future.
The principal risks the University must address do not change: its long-term ability to maintain and develop its research funding, to attract the best staff and students, and to maintain and renew its physical facilities. The activities of Cambridge Assessment and the Press are subject to the pressures of international competition, and they must balance the need to generate sufficient net income to ensure that they thrive with the need to support the University’s core academic activities whenever possible.
The key financial uncertainties and risks are:
– the possibility of further cuts to government support for teaching and research;
– the outcome of the Research Excellence Framework exercise in 2014, which will have a major impact on the University’s research funding;
– the impact of government policy on immigration, affecting both students and staff;
– funding of sponsored research by charities and foundations, and their unwillingness to cover the full costs, and an increase in EU-sponsored research also at a level below full economic costs;
– movements in investment markets reducing the value of the endowment and other investment assets;
– increasing and uncertain costs of pension provision;
– pay inflation, against a background of pay restraint in recent years;
– the ability to continue to invest in physical facilities, against a background of reduced government and research council capital funding;
– the support by benefactors for endowment, capital expenditure, and for current use; and
– the economic success of Cambridge Assessment and the Press, which operate in challenging international markets. Cambridge Assessment provides an increasingly important source of unrestricted funding for the University.
The University group’s financial operating performance has allowed a surplus to be retained in general reserves for future investment. Academic activities remained finely balanced, but Cambridge Assessment’s operations were again at a significant surplus, and the Cambridge University Press is on an upward trajectory. Operating cash flows remain strong and there was a strong performance by the University’s investments in the year.
The immediate uncertainties in government funding have been resolved, although the future comprehensive spending review is likely to be challenging for the UK higher education sector. The new undergraduate fee regime has now been through its first year and has been absorbed satisfactorily. The result of the 2014 Research Excellence Framework will be critical for the University, and in sponsored research we are seeing good growth and the mix of funding sources has widened.
The University is one of the world’s leading academic institutions and has a reputation for outstanding academic achievement. This reputation has been built up over a long time and is an important factor in attracting the best academic staff and the best students. Maintaining the financial ability to continue to attract and retain the best staff and to provide research and teaching facilities commensurate with our standing as one of the world’s leading universities remains an ongoing challenge. Funding the strategic capital programme against a backdrop of reduced government support is demanding, although the proceeds of the bond issue and recent investment gains give more flexibility in financing the programme.
In the longer term, the University continues to build and diversify its income streams, and is focusing in particular on building its philanthropic income.
Professor Steve Young
Senior Pro-Vice-Chancellor
1. The following statement is provided by the Council to enable readers of the financial statements to obtain a better understanding of the arrangements in the University for the management of its resources and for audit.
2. The University endeavours to conduct its business in accordance with the seven principles identified by the Committee on Standards in Public Life (selflessness, integrity, objectivity, accountability, openness, honesty, and leadership) and within the general principles of the Guidance to Universities which has been provided by the Committee of University Chairmen and its ‘Guide for Members of Governing Bodies of Universities and Colleges in England, Wales and Northern Ireland’. Further information is given at paragraph 9 below.
Under the Statutes, the Governing Body of the University is the Regent House, which comprises the resident senior members of the University and the Colleges, together with the Chancellor, the High Steward, the Deputy High Steward, and the Commissary. Subject to the Regent House, the Council of the University is the principal executive and policy-making body of the University, with general responsibility for the administration of the University, for the planning of its work, and for the management of its resources. The membership of the Council includes four external members, one of whom chairs the Audit Committee (see paragraph 7 below). The Statutes provide for the appointment of a Deputy Chairman of the Council, normally one of the external members, to take the chair as necessary or when it would be inappropriate for the Vice-Chancellor to do so, in particular in relation to the Vice-Chancellor’s own accountability. The General Board of the Faculties is responsible, subject to the Regent House and to the responsibilities of the Council, for the academic and educational policy of the University.
3. The University is an exempt charity and is subject to regulation by the Higher Education Funding Council for England. The members of the University Council are the charity trustees and are responsible for ensuring compliance with charity law.
4. The Council is advised in carrying out its duties by a number of Committees, including the Planning and Resources Committee, the Finance Committee, the Audit Committee, the Remuneration Committee, the Investment Board, and the Risk Steering Committee. The Planning and Resources Committee is a joint committee of the Council and the General Board. Its responsibilities include the development and oversight of the University’s Strategic Plan, and the preparation of the University’s budget. The Finance Committee is chaired by the Vice-Chancellor and advises the Council on the management of the University’s assets, including real property, monies, and securities, and on the care and maintenance of all University sites and buildings. The Audit Committee, which has a majority of external members, governs the work of the Internal and External Auditors, reporting on these matters directly to the Council. The Remuneration Committee is chaired by an external member of the Council and advises the Council on the remuneration of senior staff in the University. The Investment Board, which has a majority of external members, advises the Council on the management of the University’s investment assets. The Risk Steering Committee is responsible to the Council for the identification of the major corporate risks and their management.
5. Under the terms of the Financial Memorandum between the University and the Higher Education Funding Council for England, the Vice-Chancellor is the Accountable Officer of the University.
6. Under the Statutes, it is the duty of the Council to exercise general supervision over the finances of all institutions in the University other than the University Press (which is governed by the Council and the Press Syndicate through separate statutory arrangements); to keep under review the University’s financial position and to make a report thereon to the University at least once in each year; to recommend bankers for appointment by the Regent House; and to prepare and publish the annual accounts of the University in accordance with UK-applicable accounting standards such that the accounts give a true and fair view of the state of affairs of the University.
7. It is the duty of the Audit Committee to keep under review the effectiveness of the University’s internal systems of financial and other controls; to advise the Council on the appointment of external and internal auditors; to consider reports submitted by the auditors, both external and internal; to monitor the implementation of recommendations made by the internal auditors; to satisfy themselves that satisfactory arrangements are adopted throughout the University for promoting economy, efficiency, and effectiveness; to establish appropriate performance measures and to monitor the effectiveness of external and internal audit; to make an annual report to the Council, the Vice-Chancellor, and the Higher Education Funding Council for England; to receive reports from the National Audit Office and the Higher Education Funding Council for England. Membership of the Audit Committee includes as a majority five external members (including the chair of the Committee), appointed by the Council with regard to their professional expertise and experience in comparable roles in corporate life.
8. There are Registers of Interests of Members of the Council, the General Board, the Finance Committee and the Audit Committee, and of the senior administrative officers. Declarations of interest are made systematically at meetings.
9. The University is a self-governing community whose members act in accordance with the seven principles of public life (see paragraph 2 above) and in pursuit of the objectives and purposes of the University as set out in its Statutes. The University complies with most but not all of the voluntary Governance Code of Practice published in November 2004 by the Committee of University Chairmen. In particular the Vice-Chancellor is chair of the Council, which does not have a majority of external members, and the Council is subject to the statutory authority of the Regent House. The University has no immediate plans to change these arrangements, which have proved reliable over many years in enabling the University to achieve its academic objectives.
Lord Sainsbury of Turville
Professor Sir Leszek Borysiewicz
Sir Christopher Hum (to 31 December
2012)
Professor Francis
Kelly
Professor Robert
Lethbridge
Professor Ian White (from 1 January
2013)
Professor A. David
Yates
Professor David Abulafia (to 31
December 2012)
Professor Dame Athene
Donald
Professor Nicholas
Gay
Professor Andrew
Hopper
Professor Fiona Karet (from 1 January
2013)
Dr Nick
Bampos
Dr Richard Barnes (to 31 December
2012)
The Reverend Jeremy Caddick (from 1 January
2013)
Dr Stephen
Cowley
Mr Robert Dowling (to 31 December
2012)
Mr Ian Du
Quesnay
Dr David
Good
Dr Rebecca Lingwood (from 1 January
2013)
Dr Rachael
Padman
Dr Susan
Oosthuizen
Mr Charles Bell (to 30 June
2013)
Ms Rosalyn
Old
Ms Flick Osborn (from 1 July
2013)
Mr Richard Jones (from 1 July
2013)
Mr Sam Wakeford (to 30 June
2013)
Mr Dominic Casserley (to 31 December
2012)
Dr Vanessa Lawrence (to 31 December
2012)
Mr Mark Lewisohn (from 1 January
2013)
Dame Mavis McDonald (Deputy
Chair)
Professor Shirley Pearce CBE (from 1 January
2013)
Mr John
Shakeshaft
The Chancellor, external members, student members, Sir Christopher Hum, Professor Lethbridge, Professor Yates, Mr Du Quesnay, and Mr Caddick are not employees of the University. Professor Lethbridge is an employee of the Gates Cambridge Trust, a subsidiary undertaking. The other members of the Council are employees of the University. No member of the Council receives payment for serving as a member of the Council.
The University is an exempt charity subject to regulation by the HEFCE under the Charities Act 2006. The University reports annually on the ways in which it has delivered charitable purposes for the public benefit.
The Council, in reviewing the University’s activities in this regard, has taken into account the Charity Commission’s guidance on public benefit. The Council is satisfied that the activities of the University as described in these Reports and Financial Statements, and in the Annual Report of the Council, fully meet the public benefit requirements.
The Mission of the University is ‘to contribute to society through the pursuit of education, learning and research at the highest international levels of excellence’. The University makes a significant contribution, through these activities, directly and most obviously to the advancement of education, research and dissemination of knowledge.
The University is widely recognized as one of the leading research universities in the world both in terms of quality and in terms of scope and breadth. Research is undertaken at the highest level across a wide range of areas. The University takes seriously its obligations to disseminate and make publicly accessible the outcomes of its academic research activities through publication, teaching, conferences, consultancy, and other knowledge transfer and outreach activities. It therefore offers public benefit through the continued advancement of knowledge across the sciences, medicine, arts, humanities, culture, and heritage.
A substantial proportion of the research undertaken in the University across the fields of clinical medicine, biomedicine, physics of medicine, and engineering leads directly to the advancement of health and the saving of lives. Research is also carried out in the area of sustainability, environmental protection, and improvement.
Research work in the University is focused at local, national, and international levels. The products of this research have a wide-ranging influence through the advancement of understanding and its application in scientific and technological advances, and through informing public debate on policy. The impact of the University’s research extends to governments, public sector bodies, and charities.
The University’s research activities feed directly into its teaching at every level. Around 19,000 students, of whom 12,000 are undergraduates, pursue courses across a wide range of disciplines. The quality of the education (and, as importantly, the educational experience) which the University provides is consistently recognized by the University’s status at or near the top of national and international rankings.
The University is committed to admitting students of the highest intellectual potential, irrespective of social, racial, religious, financial, or other considerations. The University ensures that individuals from all backgrounds can benefit from the opportunities afforded by a first-rate education and are not unreasonably excluded from those opportunities by the charging of fees. The University ensures that bursaries are available where necessary and outreach activities are undertaken to improve participation by under-represented groups. Financial support is provided to students from overseas through University funds and by trusts associated with the University. Further information is available at: http://www.admin.cam.ac.uk/univ/cambridgebursary/ and http://www.admin.cam.ac.uk/offices/gradstud/fees/funding/new.html.
The University is aware that there are significant variations in the educational opportunities, information, and support available to individuals. It therefore invests significant resource and effort into its access and widening participation activities. The University encourages applications from people with disabilities and from mature students.
For the wider community a broad range of lectures, seminars, and courses provide the opportunity for members of the wider public to share in the University’s educational provision. The University’s Institute of Continuing Education offers short non-credit courses, residential and summer schools.
The University is committed to equipping those who participate in its educational programmes with the highest quality of teaching and pastoral, infrastructural, and academic support. It is fundamental to the University’s mission that its students are personally, academically, and professionally equipped to contribute positively to society. In this regard, the quality and depth of their student experience benefits them directly but also benefits the societies to which they will contribute, through their participation in the workforce and as informed and questioning citizens.
The University’s publishing house, the Cambridge University Press, contributes to the University’s commitment to make publicly accessible the outcomes of academic research activities in Cambridge and from across the world by publishing peer-reviewed academic material and other educational publications. Through Cambridge Assessment the University develops and delivers a range of widely used and respected examinations, benefiting the UK and world-wide community by offering internationally recognized qualifications, raising aspirations, and transforming lives.
1. The Council is responsible for maintaining a sound system of internal control which supports the achievement of policies, aims, and objectives, while safeguarding the public and other funds and assets for which the Council is responsible, in accordance with the Statutes and Ordinances and the Financial Memorandum with the HEFCE.
2. The system of internal control is designed to manage rather than eliminate the risk of failure to achieve policies, aims, and objectives; it therefore provides reasonable but not absolute assurance of effectiveness.
3. The system of internal control is designed to identify the principal risks to the achievement of policies, aims, and objectives; to evaluate the nature and extent of those risks; and to manage them efficiently, effectively, and economically. This process was in place for the year ended 31 July 2013 and up to the date of approval of the financial statements, and accords with HEFCE guidance.
4. The Council is responsible for reviewing the effectiveness of the system of internal control. The following processes have been established:
(a)The Council meets eleven times throughout the year to consider the plans and strategic direction of the University.
(b)The Council receives periodic reports from the Chairman of the Audit Committee concerning internal control and the minutes of all meetings of the Audit Committee.
(c)The Council’s Risk Steering Committee oversees risk management. The Council receives periodic reports from the Chairman of the Risk Steering Committee and the minutes of all meetings of the Risk Steering Committee.
(d)The Audit Committee receives regular reports from the internal auditors, which include the internal auditors’ independent opinion on the adequacy and effectiveness of the University’s system of internal control and risk management, together with recommendations for improvement. Risk management is a standing item on the Audit Committee agenda.
(e)The University provides information (primarily through web-based resources) to those who own or manage central or School risks.
(f)A system of indicators has been developed for the University’s key strategic risks.
The Council’s review of the effectiveness of the system of internal control is informed by the work of the internal auditors, Deloitte LLP.
5. The Council’s review of the effectiveness of the system of internal control is also informed by the work of the senior officers and the risk owners within the University, who have responsibility for the development and maintenance of the internal control framework, and by comments made by the external auditors in their management letter and other reports.
1. Under the University’s Statutes and Ordinances it is the duty of the Council to prepare and to publish the annual accounts of the University in accordance with UK-applicable accounting standards such that the accounts give a true and fair view of the state of affairs of the University.
2. The Council is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the University.
3. In preparing the financial statements the Council is required to:
(a)select suitable accounting policies and then apply them consistently;
(b)make judgements and estimates that are reasonable and prudent;
(c)state whether applicable accounting standards have been followed;
(d)prepare the financial statements on a going concern basis unless it is inappropriate to presume that the University will continue to operate;
(e)ensure that income has been applied in accordance with the University’s Statutes and Ordinances, and its Financial Memorandum with the HEFCE and the funding agreement with the National College for Teaching and Leadership; and
(f)safeguard the assets of the University and take reasonable steps to prevent and detect fraud and other irregularities.
We have audited the group and University financial statements (the ‘financial statements’) of the University of Cambridge for the year ended 31 July 2013 which comprise the Consolidated income and expenditure account, the note of consolidated historical cost result, the Consolidated statement of total recognized gains and losses, the Group and University Balance sheets, the Consolidated cash flow statement, the Statement of principal accounting policies, and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
As explained more fully in the Statement of the Responsibilities of the Council set out on page 181 the Council is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.
This report, including the opinions, has been prepared for and only for the Council as a body in accordance with the Statutes and Ordinances of the University and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Group’s and University’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Council; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in pages 172 to 181 and in the Annual Reports of the Council and of the General Board to the Council to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
In our opinion the financial statements:
•give a true and fair view of the state of the Group’s and University’s affairs as at 31 July 2013 and of the Group’s income and expenditure, recognized gains and losses and cash flows for the year then ended;
•have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
•have been prepared in accordance with the Statement of Recommended Practice – Accounting for Further and Higher Education.
In our opinion, in all material respects:
•funds from whatever source administered by the institution for specific purposes have been properly applied to those purposes and, if relevant, managed in accordance with relevant legislation;
•income has been applied in accordance with the Statutes and Ordinances of the University; and
•funds provided by HEFCE have been applied in accordance with the Financial Memorandum and any other terms and conditions attached to them.
We have nothing to report in respect of the following matter where the HEFCE Audit Code of Practice issued under the Further and Higher Education Act 1992 requires us to report to you if, in our opinion, the statement of internal control is inconsistent with our knowledge of the University and Group.
PricewaterhouseCoopers
LLP
Chartered Accountants and Statutory
Auditors
Cambridge
25
November
2013
(a)The maintenance and integrity of the University of Cambridge’s website is the responsibility of the Council; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.
(b)Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
The financial statements have been prepared in accordance with applicable United Kingdom accounting standards and the Statement of Recommended Practice: Accounting for Further and Higher Education (the SORP).
The income and expenditure account includes captions additional to those specified by the SORP in order to present an appropriate overview for the specific circumstances of the University.
The financial statements have been prepared under the historical cost convention, modified in respect of the treatment of investments and certain operational properties which are included at valuation.
The consolidated financial statements include the University and its subsidiary undertakings including the Gates Cambridge Trust and other Associated Trusts. Details of the subsidiary undertakings included are given in note 31. Intra-group transactions and balances are eliminated on consolidation.
The consolidated financial statements do not include the accounts of the 31 Colleges in the University (‘the Colleges’), each of which is an independent corporation. Transactions with the Colleges are disclosed in note 33.
The consolidated financial statements do not include the accounts of Cambridge University Students’ Union or of the Cambridge University Graduate Union, as these are separate bodies in which the University has no financial interest and over whose policy decisions it has no control.
Recurrent grant is received from the Higher Education Funding Council for England (HEFCE) and the Teaching Agency. Recurrent grant is recognized as income in the period to which it relates.
Grants are received for restricted purposes, principally from HEFCE and research sponsors. Restricted grants are recognized as income to the extent that relevant expenditure has been incurred.
Charitable donations are recognized on receipt or where there is certainty of future receipt and the value can be measured reliably. The accounting treatment of a donation depends on the nature and extent of restrictions specified by the donor. Donations with no substantial restrictions are recognized as income in the income and expenditure account. Donations which are to be retained for the future benefit of the University, and other donations with substantially restricted purposes, other than for the acquisition or construction of tangible fixed assets, are recognized in the statement of total recognized gains and losses as new endowments.
Grants and donations are received for the purposes of funding the acquisition and construction of tangible fixed assets. In the case of depreciable assets these are credited to deferred capital grants and released to income over the expected useful life of the respective assets in line with the depreciation policy. Grants and donations of, or for the acquisition of, freehold land or heritage assets, which are non-depreciable assets, are credited to income in the year of acquisition.
Tuition fees for degree courses are charged to students by academic term. Income is recognized for academic terms falling within the period. For short courses, fees are charged in advance for the entire course and income is recognized to the extent that the course duration falls within the period.
Income from examination-based assessments is recognized when services are rendered and substantially complete. Income from qualifications not based on examination sessions is recognized in proportion to the number of modules achieved by candidates.
In the case of books and other print publications, income is recognized on delivery of the goods to the customer. Income generated from electronic publishing, including the provision of perpetual access, is recognized when the material is initially made available. Subscriptions income is recognized evenly over subscription periods. Journals income is recognized when the journals are published and shipped.
Income is received from a range of activities including residences, catering, conferences, and other services rendered. Income is recognized on the exchange of the relevant goods or services.
All investment income is credited to the income and expenditure account in the period in which it is earned. Income from restricted endowments not expended in accordance with the restrictions of the endowment is transferred from the income and expenditure account to restricted endowments.
Transactions denominated in foreign currencies are recorded at the rate of exchange ruling at the date of the transactions. Where foreign branches and subsidiaries of Cambridge University Press accounting in foreign currencies operate as separate businesses, all their assets and liabilities are translated into sterling at year-end rates and the net effect of currency adjustments is taken directly to reserves. Otherwise, monetary assets and liabilities denominated in foreign currencies are translated into sterling at year-end rates and translation differences are taken to the income and expenditure account.
Operational land and buildings are included in the financial statements at their 1994 valuation with subsequent additions at cost. On the adoption of Financial Reporting Standard (FRS) 15 (Tangible fixed assets), the University followed the transitional provision to retain the book value of land and buildings, which had last been revalued on 1 August 1994 on the basis of market value for existing use, but not to adopt a policy of revaluations of these properties in the future.
No depreciation is provided on freehold land or on assets in construction. Freehold buildings are written off on a straight line basis over their estimated useful lives, which are between 15 and 50 years, and leasehold properties are written off over the length of the lease.
Equipment costing less than £30,000 per individual item is written off in the year of purchase. All other equipment is capitalized and depreciated so that it is written off on a straight line basis over its estimated useful life of between four and ten years.
The University holds and conserves a number of collections, exhibits, artefacts, and other assets of historical, artistic, or scientific importance. In accordance with FRS 15 and FRS 30 (Heritage assets), heritage assets acquired before 1 August 1999 have not been capitalized, since reliable estimates of cost or value are not available on a cost-benefit basis. Acquisitions since 1 August 1999 have been capitalized at cost or, in the case of donated assets, at expert valuation on receipt. In line with the accounting policy in respect of equipment, the threshold for capitalizing assets is £30,000. Heritage assets are not depreciated since their long economic life and high residual value mean that any depreciation would not be material.
Goodwill arises on consolidation and is based on the fair value of the consideration given for the subsidiary and the fair value of its assets at the date of acquisition. Goodwill is amortized over its estimated economic life of between five and ten years on a straight line basis. Where there is impairment in the carrying value of goodwill, the loss is included in the results of the period.
Fixed asset investments and endowment assets are included in the balance sheet at market value, except for investments in subsidiary undertakings, which are stated in the University’s balance sheet at cost and eliminated on consolidation. Properties held for investment purposes are valued annually on the basis of estimated open market values on an existing use basis by Knight Frank or, in the case of local non-operational properties, by chartered surveyors employed by the University. Marketable securities are valued at midmarket valuation on 31 July. Investments in spin-out companies are valued in accordance with the International Private Equity and Venture Capital Guidelines, and other non-marketable securities are included at valuation by the Council. Current asset investments are included in the balance sheet at the lower of cost and net realizable value.
Stocks are stated at the lower of cost and net realizable value after making provision for slow moving and obsolete items. In respect of publishing and printing services, (a) direct costs incurred prior to publication are included in stocks and work in progress and are written off over a period of up to three years from the publication date; and (b) the University makes full provision against the cost of stocks in excess of one and a half times the most recent year’s sales on all publications dated more than two years before the reporting date.
The Bond liabilities are the unsecured Bonds issued by the University in October 2012 and listed on the London Stock Exchange. The Bonds are initially measured at the proceeds of issue less all transaction costs directly attributable to the issue. After initial recognition, the Bonds are measured at amortized cost using the effective interest rate method.
Endowment funds are classified under three headings:
•Where the donor has specified that the fund is to be permanently invested to generate an income stream for the general purposes of the University, the fund is classified as an unrestricted permanent endowment.
•Where the donor has specified that the fund is to be permanently invested to generate an income stream to be applied for a restricted purpose, the fund is classified as a restricted permanent endowment.
•Where the donor has specified a particular objective other than the acquisition or construction of tangible fixed assets, and that the University must or may convert the donated sum into income, the fund is classified as a restricted expendable endowment.
The University contributes to a number of defined benefit pension schemes and accounts for the costs in relation to these schemes in accordance with FRS 17 (Retirement benefits).
Where the University is unable to identify its share of the underlying assets and liabilities in a scheme on a reasonable and consistent basis, it accounts as if the scheme were a defined contribution scheme, so that the cost is equal to the total of contributions payable in the year.
For other defined benefit schemes, the assets of each scheme are measured at fair value, and the liabilities are measured on an actuarial basis using the projected unit method and discounted at an appropriate rate of return. The University’s share of the surplus or deficit of the scheme is recognized as an asset or liability on the balance sheet. The current service cost, being the actuarially determined present value of the pension benefits earned by employees in the current period, and the past service cost, are included within staff costs. Endowment and investment income includes the net of the expected return on assets, being the actuarial forecast of total return on the assets of the scheme, and the interest cost being the notional interest cost arising from unwinding the discount on the scheme liabilities. All changes in the pension surplus or deficit due to changes in actuarial assumptions or differences between actuarial forecasts and the actual out-turn are reported in the statement of total recognized gains and losses.
The University operates in a number of different classes of business. For the purpose of segmental reporting as required by Statement of Standard Accounting Practice 25 (Segmental reporting), classes of business have been identified by reference to the nature of activity, the nature of funding, and the management organization.
|
Year ended 31 July 2013 |
Year ended 31 July 2012 |
|||
|
Note |
£m |
£m |
||
|
Income |
||||
|
Funding body grants |
1 |
184 |
197 |
|
|
Academic fees and support grants |
2 |
182 |
149 |
|
|
Research grants and contracts |
3 |
332 |
293 |
|
|
Examination and assessment services |
4 |
317 |
300 |
|
|
Publishing and printing services |
263 |
241 |
||
|
Other income |
5 |
140 |
123 |
|
|
Endowment and investment income |
6 |
20 |
19 |
|
|
Total income |
1,438 |
1,322 |
||
|
Expenditure |
||||
|
Staff costs |
7 |
605 |
579 |
|
|
Other operating expenses |
8 |
714 |
656 |
|
|
Depreciation |
8 |
77 |
71 |
|
|
Interest and other finance costs |
8 |
19 |
11 |
|
|
Total expenditure |
8 |
1,415 |
1,317 |
|
|
Surplus on continuing operations |
23 |
5 |
||
|
Minority interests in results of subsidiary undertakings |
– |
(1) |
||
|
Surplus on continuing operations after minority interest |
23 |
4 |
||
|
Transfer from restricted endowments |
23 |
50 |
44 |
|
|
Surplus for the year retained in general reserves |
24 |
73 |
48 |
The income and expenditure account is in respect of continuing activities.
|
Note |
Year ended 31 July 2013 £m |
Year ended 31 July 2012 £m |
||
|
Surplus on continuing operations |
23 |
4 |
||
|
Realization of gains on disposal of fixed asset investments |
24 |
37 |
11 |
|
|
Depreciation on revaluation element of tangible fixed assets |
24 |
6 |
6 |
|
|
Historical cost surplus for the year |
66 |
21 |
|
Additional information: Total income and surplus on continuing operations as stated above do not include the element of Cambridge University Endowment Fund distributions funded out of long-term capital growth, as described in note 6, amounting to £61m (2012: £54m). The surplus retained in general reserves does not include the proportion of this element relating to reserves, amounting to £26m (2012: £22m). The corresponding figures including these elements are:
|
|
Year ended 31 July 2013 |
Year ended 31 July 2012 |
|||
|
Note |
£m |
£m |
||
|
Surplus on continuing operations |
23 |
4 |
||
|
Valuation gains on investments |
||||
|
Endowment assets |
23 |
204 |
39 |
|
|
Fixed asset investments |
13, 24 |
166 |
27 |
|
|
New endowment capital |
23 |
41 |
43 |
|
|
Loss arising on foreign currency translation |
24 |
(3) |
(1) |
|
|
Actuarial loss |
24 |
(8) |
(66) |
|
|
Total recognized gains relating to the year |
423 |
46 |
||
|
Total gains since the last annual report |
423 |
|||
|
Reconciliation |
||||
|
Opening reserves and endowments |
2,138 |
|||
|
Total gains since the last annual report |
423 |
|||
|
Closing reserves and endowments |
2,561 |
|
Group 31 July 2013 |
Group 31 July 2012 |
University 31 July 2013 |
University 31 July 2012 |
|||
|
Note |
£m |
£m |
£m |
£m |
||
|
Fixed assets |
||||||
|
Intangible assets |
11 |
6 |
5 |
3 |
2 |
|
|
Tangible assets |
12 |
1,194 |
1,156 |
1,193 |
1,154 |
|
|
Investments |
13 |
1,100 |
705 |
892 |
530 |
|
|
2,300 |
1,866 |
2,088 |
1,686 |
|||
|
Endowment assets |
14 |
1,252 |
1,057 |
1,039 |
873 |
|
|
Current assets |
||||||
|
Stocks and work in progress |
15 |
60 |
59 |
50 |
50 |
|
|
Debtors |
16 |
273 |
260 |
302 |
238 |
|
|
Investments |
||||||
|
University |
17 |
374 |
197 |
305 |
163 |
|
|
Held on behalf of others |
17 |
78 |
50 |
566 |
443 |
|
|
Cash at bank and in hand |
61 |
51 |
37 |
28 |
||
|
846 |
617 |
1,260 |
922 |
|||
|
Creditors: amounts falling due within one year |
18 |
(588) |
(506) |
(1,002) |
(825) |
|
|
Net current assets |
258 |
111 |
258 |
97 |
||
|
Total assets less current liabilities |
3,810 |
3,034 |
3,385 |
2,656 |
||
|
Creditors: amounts falling due after more than one year |
19 |
(348) |
(3) |
(346) |
– |
|
|
Pension liabilities |
20 |
(364) |
(369) |
(72) |
(104) |
|
|
Other retirement benefits liability |
21 |
(24) |
(21) |
(24) |
(21) |
|
|
Total net assets |
3,074 |
2,641 |
2,943 |
2,531 |
||
|
Represented by: |
||||||
|
Deferred capital grants |
22 |
511 |
502 |
511 |
502 |
|
|
Endowments |
||||||
|
Expendable endowments |
23 |
430 |
362 |
218 |
180 |
|
|
Permanent endowments |
23 |
822 |
695 |
821 |
693 |
|
|
23 |
1,252 |
1,057 |
1,039 |
873 |
||
|
Reserves |
||||||
|
General reserves |
24 |
922 |
818 |
1,066 |
931 |
|
|
Operational property revaluation reserve |
24 |
121 |
127 |
121 |
127 |
|
|
Fixed asset investment revaluation reserve |
24 |
266 |
136 |
206 |
98 |
|
|
24 |
1,309 |
1,081 |
1,393 |
1,156 |
||
|
Reserves and endowments |
2,561 |
2,138 |
2,432 |
2,029 |
||
|
Minority interest in subsidiary undertakings |
2 |
1 |
– |
– |
||
|
Total |
3,074 |
2,641 |
2,943 |
2,531 |
The financial statements on pages 183 to 217 were approved by the Council on 25 November 2013 and signed on its behalf by:
|
Professor Sir Leszek Borysiewicz Vice-Chancellor |
John Shakeshaft Member of Council |
Andrew Reid Director of Finance |
|
Year ended 31 July 2013 |
Year ended 31 July 2012 |
|||
|
Note |
£m |
£m |
||
|
Net cash inflow from operating activities |
26 |
69 |
25 |
|
|
Returns on investments and servicing of finance |
27 |
13 |
19 |
|
|
Capital expenditure and financial investment |
27 |
(418) |
(37) |
|
|
Cash (outflow) / inflow before use of liquid resources and financing |
(336) |
7 |
||
|
Management of liquid resources: Decrease in short-term deposits |
28 |
– |
– |
|
|
Financing |
27 |
341 |
(1) |
|
|
Increase in cash in the year |
5 |
6 |
|
Year ended 31 July 2013 |
Year ended 31 July 2012 |
|||
|
Note |
£m |
£m |
||
|
Increase in cash |
5 |
6 |
||
|
Cash outflow from liquid resources |
– |
– |
||
|
Movement in net funds in the year |
5 |
6 |
||
|
Net funds at 1 August |
54 |
48 |
||
|
Net funds at 31 July |
28 |
59 |
54 |