University College Dublin
National University of Ireland, Dublin
Consolidated Financial Statements and Funding Statement
Year Ended 30 September 2004
University College Dublin
National University of Ireland, Dublin
Financial Statements
Consolidated Financial Statements 2004
CONTENTS
Page
PRESIDENT'S REPORT
STATEMENT OF GOVERNING AUTHORITY'S RESPONSIBILITIES
INDEPENDENT AUDITOR’S REPORT
STATEMENT OF ACCOUNTING POLICIES
2-4
5
6-7
8 - 10
CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT
11
CONSOLIDATED BALANCE SHEET
12
CONSOLIDATED CASH FLOW STATEMENT
13
NOTES TO THE ACCOUNTS
14 – 30
ADDITIONAL INFORMATION
31
HEA FUNDING STATEMENT
32 - 46
RECONCILIATION WITH FUNDING STATEMENT
47 - 48
1
University College Dublin
National University of Ireland, Dublin
Financial Statements
PRESIDENT'S REPORT
Scope of the Financial Statements
The financial statements consolidate the results of the University and its subsidiary undertakings.
In accordance with best accounting practice, the activities of the Student’s Unions have not been
consolidated because the University does not control these activities. The financial statements of
the University Foundation, Pension Fund and Trust Funds are also excluded as they are not
controlled by the University.
Results for the Year
The Consolidated Income and Expenditure Account for the year ended 30 September 2004 shows
a net surplus from continuing operations of €9.4 million, up from €3.3 million in the previous year.
During the year the University disposed of land at St Catherine’s in Lucan, generating net proceeds
of €7.9 million and when this exceptional item is taken into account, the overall retained surplus for
the year was €17.3 million.
Income
Total consolidated income increased from €276.4 million to €306.4 million during the year,
representing an increase of 10.8%. Student fees were a major contributor to the growth in total
income during the year, showing an increase from €90.2 million to €99.9 million. The proportion of
state grants to total income continues to decline and now accounts for 39.5% of total operating
income. It is encouraging to note that the grant allocation for special initiatives under the HEA
targeted funding programme was maintained during the year at a figure of €4.8 million.
The level of contract research income continued to grow during the year and reached a record level
of €39.4 million, up 23% on the previous year.
The University generated €34.9 million in other operating income, reflecting the important
contribution from subsidiary companies and ancillary activities.
Recurrent Expenditure
Total expenditure increased from €273 million to €297 million in the year, with pay costs
representing 66% of the total expenditure.
Staff costs rose by 12% during the year, partly reflecting the additional costs for the University as a
result of the implementation of the Protection of Employees (Fixed Term Work) Act 2003, which
grants pension and other entitlements to fixed term contract employees.
Treasury Management
The University had a net cash inflow from operating activities of €18.621 million. In accordance
with the University’s Treasury Management Policy, the investment objective is to achieve the best
possible return while minimising risk.
At 30 September 2004, the University held short-term deposits of €113.5 million whilst total long
term borrowings increased by €47.6 million to €76.4 million.
Deposit interest earnings amounted to €1.5 million reflecting the prevailing low interest rate
environment and loan interest payments amounted to €1.6 million, most of which is at fixed interest
rates.
2
University College Dublin
National University of Ireland, Dublin
Financial Statements
PRESIDENT'S REPORT - continued
Capital Projects
The University continues to invest significantly in capital development. The year saw the
completion of an extensive number of capital projects in addition to the ongoing buildings
maintenance and refurbishment programme.
The construction of Health Sciences Phase 1 will provide a facility tailor-made to meet the
requirements of the College of Life Sciences. This new building marks the achievement of a longterm objective to relocate schools within the Faculty of Medicine to the Belfield Campus.
Health Sciences Phase 2, which started at the year-end, will enable the remainder of the Medical
Faculty to move to the Belfield Campus by December 2006.
Other building projects that were initiated during the year included the new Centre for Synthesis
and Chemical Biology which is a purpose designed facility for researchers and includes the
provision of NMR and Mass Spectroscopy technologies. The construction of the Proby student
residences at the Blackrock Campus under the Section 50 tax incentive scheme resulted in an
additional 118 beds for student accommodation. This project also incorporated the complete
refurbishment of Liguori House, which will be used for staff accommodation.
Student Population
Student numbers increased from 21,339 to 22,108 placing a heavy burden on the limited resources
of the University.
UCD graduates are now achieving a very high success rate in securing employment, which is a
tribute to the high academic standards of the University.
The University continued to actively address the under-representation of students from
economically and socially deprived areas of the community through the New Era Programme.
The University has continued its commitment to support students with disabilities. The Access
Programme is successfully co-ordinating an extensive range of services for disabled students.
Physical accessibility for these students has also been improved.
UCD remains committed to widening participation and to the creation of a socially inclusive, equal
opportunities learning environment for all students at the University.
Research
Research activity at the University performed excellently during the year generating a record
income level of €39.4 million.
The establishment of UCD Research has significantly increased the research profile of the
University and UCD is aiming to build an environment that attracts and encourages world-class
researchers from many research disciplines.
UCD must continue to succeed in attracting increasing levels of research funding so that it will
become a preferred destination for commercial partnerships.
Participation in the EU Framework 6 remains steady. The University welcomes the drive for
sustainability of research and the funding programmes available through Science Foundation
Ireland (SFI).
The Annual Overhead Investment Plan funding introduced by SFI during the year will enable the
provision of enhanced support services within the University for the research mission.
3
University College Dublin
National University of Ireland, Dublin
Financial Statements
PRESIDENT'S REPORT - continued
Conclusion
The University remains committed to its objective of providing a centre of excellence for teaching
and research, which is internationally recognised.
The successes of the University as ever can only be achieved through the commitment and positive
efforts of both academic and support staff, all of whom are engaged in delivering the objectives of
the strategic plan.
_______________
President
21 March 2006
4
University College Dublin
National University of Ireland, Dublin
Financial Statements
STATEMENT OF GOVERNING AUTHORITY’S RESPONSIBILITIES
The Governing Authority is required to comply with the Universities Act, 1997, and to keep in such form as
may be approved of by An t-Údarás um Ard-Oideachas all proper and usual accounts of money received and
expended by it. The Governing Authority is also responsible for preparing the annual report and the financial
statements for each financial year which give a true and fair view of the state of affairs of the University and
the University Group and the surplus or deficit of the University Group for that period.
In preparing those accounts, the Governing Authority is required to:

select suitable accounting policies and then apply them consistently;

make judgments and estimates that are reasonable and prudent;

disclose and explain any material departures from applicable accounting standards; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
University will continue in operation.
The Governing Authority is responsible for keeping proper books of account which disclose with reasonable
accuracy at any time the financial position of the University and which enable it to ensure that its financial
statements comply with the Universities Act, 1997, and are prepared in accordance with accounting standards
generally accepted in Ireland and the most recent Harmonisation of Accounts Agreement.
The Governing Authority is responsible for ensuring that the business of the University is conducted in a
proper and regular manner and for safeguarding all assets under its operational control and hence for taking
reasonable steps for the prevention and detection of fraud and other irregularities.
On behalf of the Governing Authority,
______________________
President
______________________
Bursar
5
INDEPENDENT AUDITORS’ REPORT TO THE GOVERNING AUTHORITY OF UNIVERSITY COLLEGE
DUBLIN, NATIONAL UNIVERSITY OF IRELAND, DUBLIN
We have audited the financial statements on pages 8 to 30.
Respective responsibilities of the Governing Authority and auditors
The Governing Authority’s responsibility for preparing the annual report and the financial statements in
accordance with the Universities Act, 1997, the most recent Harmonisation of Accounts Agreement and
accounting standards generally accepted in Ireland are set out on page 5 in the statement of the Governing
Authority’s responsibilities.
Our responsibility is to audit the financial statements in accordance with relevant regulatory requirements and
auditing standards issued by the Auditing Practices Board applicable in Ireland. This report, including the
opinion, has been prepared for and only for the members of the Governing Authority as a body and for no
other purpose. We do not, in giving this opinion, 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.
We report to you our opinion as to whether the financial statements give a true and fair view and are properly
prepared. We report whether the financial statements prepared in accordance with the most recent
Harmonisation of Accounts Agreement have been properly extracted from the books and records of the
University. We state whether we have obtained all the information and explanations we consider necessary
for the purposes of our audit.
Basis of audit opinion
We conducted our audit in accordance with auditing standards issued by the Auditing Practices Board except
that the scope of our work was limited as explained below. An audit includes examination, on a test basis, of
evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment
of the significant estimates and judgments made by the members of the Governing Authority in the
preparation of the financial statements, and of whether the accounting policies are appropriate to the
University’s circumstances, consistently applied and adequately disclosed.
We planned our audit so as to obtain all the information and explanations which we considered necessary in
order to provide us with sufficient evidence to give reasonable assurance that the financial statements are
free from material misstatement, whether caused by fraud or other irregularity or error. As explained in the
Basis of Preparation note on page 8 of the financial statements, the University prepared consolidated financial
statements in accordance with generally accepted accounting principles in Ireland for the first time in respect
of the year ended 30 September 2003 and it was not possible for us to obtain sufficient evidence as regards:
(a) the University and University Group tangible fixed assets and depreciation at 30 September 2002 and
for subsequent years because of insufficient information at 30 September 2002, due to the absence of
a fixed asset register in respect of land and buildings as described in note 11, and as a result of
insufficient information on the calculation of depreciation at 30 September 2002 and in subsequent
years;
(b) the University and University Group capital grants and amortisation at 30 September 2002 and for
subsequent years because of insufficient information regarding grants received at 30 September 2002
as described in note 19;
(c)
the actuarial basis for pension costs in accordance with Statement of Standard Accounting Practice 24;
and
(d) the University and University Group revenue reserves at 30 September 2002 and subsequent years
arising from the preparation of financial statements in accordance with generally accepted accounting
principles for the first time in respect of year-ended 30 September 2003 as described in the Basis of
Preparation note on page 8.
6
INDEPENDENT AUDITORS’ REPORT TO THE GOVERNING AUTHORITY OF UNIVERSITY COLLEGE
DUBLIN, NATIONAL UNIVERSITY OF IRELAND, DUBLIN - continued
Basis of audit opinion - continued
Any adjustment to capital grants, tangible fixed assets or pension costs above would have a consequential
effect on the surplus for the years ended 30 September 2004 and 30 September 2003. An adjustment to
creditors and debtors at 30 September 2002 would have a consequential effect on the reported surplus and
cash flows for the year ended 30 September 2003.
In forming our opinion we also evaluated the overall adequacy of the presentation of information in the
financial statements.
Qualified opinion arising from non-compliance with accounting standards and limitation in audit
scope.
Except for:
(i)
the adjustments to the income and expenditure account and balance sheets that might have been
found to be necessary had we been able to obtain sufficient evidence concerning depreciation
and tangible fixed assets as explained in note 11 to the financial statements;
(ii)
the adjustments to the income and expenditure account and balance sheets that might have been
found to be necessary had we been able to obtain sufficient evidence concerning amortisation
and capital grants as explained in note 19 to the financial statements;
(iii)
the income and expenditure account and balance sheets adjustments that might have been found
to be necessary to comply with the accounting requirements and the failure to provide the
information to comply with the disclosure requirements of Statement of Standard Accounting
Practice 24;
(iv)
the adjustments to revenue reserves that might have been found to be necessary had we been
able to obtain sufficient evidence concerning the matters in (i) to (iii) above and;
in our opinion the financial statements on pages 8 to 30 give a true and fair view of the state of affairs of the
University and the University Group at 30 September 2004 of the surplus and cash flows of the University
Group for the year ended 30 September 2004.
The evidence available to us was limited as regards the matters set out in (a) to (d) within basis of audit
opinion above. Except for this we have obtained all the information and explanations we consider necessary
for the purposes of our audit.
In our opinion the financial statements on pages 34 to 46 which have been prepared in accordance with the
most recent Harmonisation of Accounts Agreement have been properly extracted from the books and records
of the University.
Accounting Standards generally accepted in Ireland vary in certain significant respects from the accounting
basis applied in the preparation of the Higher Education Funding Statement Revenue Account on page 36
prepared in accordance with the most recent Harmonisation of Accounts Agreement referred to above. In our
opinion the application of accounting standards generally accepted in Ireland would have affected the
determination of the Higher Education Authority Funding Statement Revenue Account to the extent
summarised on page 48 except for the matters noted above at (i), (ii) and (iv).
PricewaterhouseCoopers
Chartered Accountants and Registered Auditors
Dublin
21 March 2006
7
University College Dublin
National University of Ireland, Dublin
Financial Statements
STATEMENT OF ACCOUNTING POLICIES
The significant accounting policies adopted by the University are as follows:
Basis of preparation
The financial statements have been prepared in accordance with accounting standards generally accepted in
Ireland and the Statement of Recommended Practice: Accounting for Further and Higher Education
Institutions. Accounting standards generally accepted in Ireland in preparing financial statements giving a true
and fair view are those published by the Institute of Chartered Accountants in Ireland and issued by the
Accounting Standards Board.
The University prepared consolidated financial statements in accordance with generally accepted accounting
principles in Ireland, for the first time, in respect of the year ended 30 September 2003.
Accounting convention
The accounts have been prepared under the historical cost convention.
Basis of consolidation
The consolidated financial statements include the University and its subsidiary undertakings and other
undertakings in which the University has a financial interest. The results of subsidiaries acquired or disposed
of during the period are included in the consolidated income and expenditure account from the date of
acquisition or up to the date of disposal. Intra-group sales and profits are eliminated fully on consolidation.
In accordance with FRS 2 – Accounting for Subsidiary Undertakings, the activities of the Students’ Union of
University College Dublin have not been consolidated because the University does not control those activities.
The financial statements of the University Foundations, Pension Fund and Trust Fund are also excluded as
they are not controlled by the University.
Recognition of income
Recurrent grants from the Higher Education Authority are recognised in the period in which they are
receivable, to the extent of the related expenditure incurred during the year.
Non-recurrent grants from the Higher Education Authority or other bodies received in respect of the
acquisition or construction of fixed assets are treated as deferred capital grants and amortised in line with
depreciation over the life of the assets.
Income from research grants, contracts and other services rendered is included to the extent of the
completion of the contract or service concerned. This is generally equivalent to the sum of the relevant
expenditure incurred during the year and any related contributions towards overhead costs.
Income from specific endowments and donations is included to the extent of the relevant expenditure incurred
during the year, together with any related contributions toward overhead costs.
All income from short-term deposits is credited to the income and expenditure account in the period in which it
is earned.
Foreign currency translation
Transactions denominated in foreign currencies are recorded at the rate of exchange ruling at the dates of the
transactions. Monetary assets and liabilities denominated in foreign currencies are translated into euro either
at year end rates or, where they are related forward foreign exchange contracts, at contract rates. The
resulting exchange differences are dealt with in the determination of income and expenditure for the financial
year.
8
University College Dublin
National University of Ireland, Dublin
Financial Statements
STATEMENT OF ACCOUNTING POLICIES - continued
Tangible fixed assets
(a) Land and buildings
The University’s buildings are stated at cost less accumulated depreciation. Freehold buildings are
depreciated over their expected useful economic life to the University of 50 years. Leasehold buildings
are included in the balance sheet at cost and depreciated over the term of the lease. Freehold land is not
depreciated.
Where land and buildings are acquired with the aid of specific grants they are capitalised and depreciated
as above. The related grants are credited to a deferred capital grant account and are released to the
income and expenditure account over the expected useful economic life of the related asset on a basis
consistent with the depreciation policy.
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that
the carrying amount of the fixed asset may not be recoverable.
Buildings under construction are accounted for at cost, based on the value of architects' certificates and
other direct costs incurred to the financial year end. They are not depreciated until they are brought into
use.
(b) Equipment and minor works
Equipment costing less than €3,175 per individual item is written off to the income and expenditure
account in the year of acquisition. All other equipment is capitalised at cost. Capitalised equipment is
depreciated over its useful economic life as follows:
Leased assets
Computer equipment
Equipment
Minor works
20 years or primary lease period, if shorter
3 years
5 years
10 years
Where equipment is acquired with the aid of specific grants it is capitalised and depreciated in
accordance with the above policy, with the related grant being credited to a deferred capital grant account
and released to income and expenditure account over the expected useful economic life of the related
equipment.
(c) Donations
The University receives on occasion benefits in kind such as gifts of equipment. Items of a significant
value donated to the University, which, if purchased, the University would treat as tangible fixed assets,
are capitalised at their current value and depreciated in accordance with the policy set out above. The
value of the donation is treated as a deferred capital grant.
Leased assets
Leasing agreements that transfer to the University substantially all the benefits and risks of ownership of an
asset are treated as if the asset had been purchased outright. The assets are included in fixed assets and the
capital element of the leasing commitments is shown as obligations under finance leases. The lease rentals
are treated as consisting of capital and interest elements. The capital element is applied to reduce the
outstanding obligations and the interest element is charged to the income and expenditure account in
proportion to the reducing capital element outstanding. Assets held under finance leases are depreciated
over the shorter of the lease term or the useful economic lives of equivalent owned assets.
Assets which are held under hire purchase contracts which have the characteristics of finance leases are
depreciated over their useful lives.
Rental costs under operating leases are charged to expenditure in equal annual amounts over the period of
the lease.
9
University College Dublin
National University of Ireland, Dublin
Financial Statements
STATEMENT OF ACCOUNTING POLICIES - continued
Financial assets
Current asset investments are included in the balance sheet at the lower of their original cost and net
realisable value.
Stocks
Stocks are stated at the lower of their cost and net realisable value. Where necessary, provision is made for
obsolete, slow moving and defective stock. Expenditure incurred by the University on books and consumable
stocks financed from recurrent grants are charged to the income and expenditure account.
Taxation
As an exempt charity, the University is not liable for Corporation Tax or Income Tax on any of its charitable
activities. It is registered for Value Added Tax, but since the supply of education is an exempt activity on
which no output tax is charged it is unable to recover input tax on the majority of its purchases.
Trading activities undertaken by the University are administered through its subsidiary companies, which as
commercial organisations are liable to Corporation Tax.
Deferred taxation
In subsidiary companies, who do not hold a charitable status, deferred taxation is provided on all timing
differences that have originated but not reversed at the balance sheet date where transactions or events that
result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the
balance sheet date.
Timing differences are temporary differences between profits as computed for taxation purposes and profits
as stated in the financial statements which arise because certain items of income and expenditure in the
financial statements are dealt with in different periods for taxation purposes.
Deferred tax is measured at the tax rates that are expected to apply in the years in which the timing
differences are expected to reverse, based on tax rates and laws that have been enacted or substantively
enacted by the balance sheet date. Deferred tax is not discounted.
Provisions
Provisions are recognised when the University has a present legal or constructive obligation as a result of a
past event, it is probable that a transfer of economic benefit will be required to settle the obligation, and a
reliable estimate can be made of the amount of the obligation.
Pensions
The University operates a defined benefit pension scheme with assets held in a separately administered fund.
The basic retirement pensions of University staff are funded by contributions to the University Pension Fund at
a pre-determined rate of pensionable pay. Increases in basic retirement pensions are charged as pension
supplementation in the income and expenditure account as incurred.
Treasury Management
The University’s treasury management policy is for bank balances surplus to immediate requirements, to be
invested short term with authorised counter parties in a manner, which maximises returns with no risk to
capital.
10
University College Dublin
National University of Ireland, Dublin
Financial Statements
CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT
Year Ended 30 September 2004
2004
€'000
2003
€'000
120,894
99,907
39,446
9,786
34,895
1,515
114,353
90,207
32,076
8,467
29,827
1,512
306,443
276,442
197,077
83,226
1,587
15,100
175,590
77,998
961
18,550
296,990
273,099
Surplus on continuing operations after depreciation of fixed
assets and before taxation
9,453
3,343
Surplus on disposal of land
7,901
-
17,354
3,343
Notes
Income
State grants
Academic fees
Research grants and contracts
Amortisation of deferred capital grants
Other income
Interest income
1
2
3
4
5
Total income
Expenditure
Staff costs
Other operating expenses
Interest payable
Depreciation
6
7
8
Total expenditure
Surplus on continuing operations after depreciation of fixed
assets and disposal of fixed assets and before taxation
Taxation
9
(32)
(9)
Surplus after depreciation of assets, disposal of fixed assets and
after taxation
10
17,322
3,334
__________________
President
__________________
Bursar
11
University College Dublin
National University of Ireland, Dublin
Financial Statements
CONSOLIDATED BALANCE SHEET
As at 30 September 2004
Notes
Fixed assets
Tangible assets
Financial assets
Current assets
Stocks
Debtors
Cash at bank
Creditors: Amounts falling due within
one year
11
12
13
14
15
16
Net current assets/(liabilities)
Total assets less current liabilities
Consolidated
2004
2003
€'000
€'000
University
2004
2003
€'000
€'000
371,083
192
305,704
188
346,707
192
252,845
188
371,275
305,892
346,899
253,033
687
40,859
120,746
659
42,778
79,607
687
63,670
113,745
659
89,909
72,309
162,292
123,044
178,102
162,877
(122,791)
(133,940)
(119,088)
(125,980)
39,501
(10,896)
59,014
36,897
410,776
294,996
405,913
289,930
Creditors: Amounts falling due after
one year
17
(76,443)
(28,839)
(76,443)
(28,839)
Net provisions for liabilities and
charges
21
(10,375)
(1,486)
(10,375)
(1,486)
Net assets
323,958
264,671
319,095
259,605
Deferred capital grants
19
239,729
197,764
240,513
197,764
Represented by:
Revenue reserves
20
84,229
66,907
78,582
61,841
323,958
264,671
319,095
259,605
Total
__________________
President
__________________
Bursar
12
University College Dublin
National University of Ireland, Dublin
Financial Statements
CONSOLIDATED CASH FLOW STATEMENT
Year Ended 30 September 2004
Notes
2004
€’000
2003
€’000
Net cash inflow from operating activities
23
18,621
37,938
Returns on investments and servicing of finance
Taxation paid
Capital expenditure and financial investment
24
(76)
(25)
(20,828)
548
(27)
(26,991)
(2,308)
11,468
40,310
22,561
38,002
34,029
38,002
(40,310)
34,029
(22,561)
25
Net cash (outflow)/inflow before use of liquid resources and
financing
Financing
26
Decrease in cash in the period
Reconciliation of net cash flow to movement in net funds/debt
Increase in cash in the period
Cash inflow from increase in debt and lease financing
Movement in net debt in period
Net funds at 1 October
27
27
(2,308)
39,396
11,468
27,928
Net funds at 30 September
27
37,088
39,396
13
University College Dublin
National University of Ireland, Dublin
Financial Statements
NOTES TO THE ACCOUNTS - continued
1
State grants
State grants allocated for recurrent purposes
2004
€'000
2003
€'000
120,894
114,353
Grant income of €1,758,489 (2003: €1,329,000) was received from the Eastern Regional Health Authority
in 2004. All other grant income was received from the Higher Education Authority.
2
Academic fees
2004
€'000
2003
€'000
Academic fee income
Miscellaneous fee income
99,287
620
89,598
609
Total fees paid by or on behalf of individual students
99,907
90,207
A total of €41,977,000 (2003: €38,800,000) included in academic fee income was paid directly by the
Higher Education Authority.
3
4
Research grants and contracts
2004
€'000
2003
€'000
State and semi-state
European Union
Industry
Other
17,202
3,506
1,137
20,021
21,289
2,367
1,240
8,130
Contribution in respect of overheads
41,866
(2,420)
33,026
(950)
39,446
32,076
2004
€'000
2003
€'000
3,684
5,631
1,517
8,249
13,510
2,304
3,328
4,023
1,522
8,036
12,067
851
34,895
29,827
Other income
Catering and conferences
Residences
Other rental income
Medical testing income
Academic facilities and departments
Other operating income
14
University College Dublin
National University of Ireland, Dublin
Financial Statements
NOTES TO THE ACCOUNTS - continued
5
6
Interest income
2004
€’000
2003
€’000
Interest income
1,515
1,512
Staff costs
The average weekly number of persons (including senior post-holders) employed by the College during
the period, expressed as full-time equivalent was:
Teaching and research
Technical
Central administration and services
Other
Salaries and wages
Social welfare costs
Employer pension costs
7
Other operating expenses
Research (Nonpay)
Maintenance and security
Lab supplies
Professional fees
External contract costs
Travel and hospitality
Computer supplies
Printing, stationary and audio visual
Books and periodicals
Light and heat
Student facilities
Rent, rates and insurance
Equipment
Training and development
Communications
Advertising and promotions
Other operating costs
2004
Number
2003
Number
1,977
402
1,028
221
1,882
387
997
232
3,628
3,498
2004
€'000
2003
€'000
168,126
9,354
19,597
148,285
8,721
18,584
197,077
175,590
2004
€'000
2003
€'000
13,901
9,048
6,688
6,605
6,309
5,934
5,759
4,413
4,356
3,758
1,927
1,887
1,618
1,295
1,252
1,181
7,295
13,439
7,879
6,897
5,332
6,162
5,031
3,770
4,443
4,130
3,358
2,845
1,877
957
1,197
1,401
1,621
7,659
83,226
77,998
15
University College Dublin
National University of Ireland, Dublin
Financial Statements
NOTES TO THE ACCOUNTS - continued
7
2004
€'000
2003
€'000
250
424
134
144
293
128
2004
€'000
2003
€'000
1,587
961
Other operating expenses - continued
Other operating expenses include:
Auditors’ remuneration:
- External audit
- Accountancy, taxation and secretarial
- Other services
8
Interest payable
On bank loans, overdrafts and other loans:
Repayable wholly or partly in more than 5 years
Interest is payable on loans drawn down to build new residential accommodation for students. This
activity is carried out by subsidiary undertakings.
9
Taxation
2004
€'000
2003
€'000
(a) Current taxation:
Irish corporation tax on surplus for the year
Adjustments in respect of prior years
18
-
5
(1)
Current tax charge for the year
18
4
14
5
32
9
Deferred tax:
Origination and reversal of timing differences
16
University College Dublin
National University of Ireland, Dublin
Financial Statements
NOTES TO THE ACCOUNTS - continued
9
Taxation - continued
(b) The current tax charge for the year is lower than the current charge that would result from applying
the standard rate of Irish corporation tax to the surplus for the year. The differences are explained
below:
Surplus for year before taxation
Surplus before taxation multiplied by the average rate of Irish
corporation tax for the year of 12.5% (2003: 13.375%)
Effects of:
Utilisation of tax losses
Group loss relief
Surpluses not subject to Irish corporation tax
Other timing differences
Disallowable expenses
Capital allowances in excess of depreciation
Trading losses forward
Adjustment to tax charge in respect of prior years
2004
€’000
2003
€’000
17,354
3,343
2,169
447
(2)
(4)
(2,157)
4
13
9
-
(403)
6
6
(48)
1
32
9
2004
€'000
2003
€'000
University’s surplus for the year
Surplus generated by the subsidiary undertakings and transferred to the
University
16,741
3,268
581
66
Total (note 20)
17,322
3,334
Current tax charge for the year
10 Surplus for the year
The surplus for the year is made up as follows:
17
University College Dublin
National University of Ireland, Dublin
Financial Statements
NOTES TO THE ACCOUNTS - continued
11 Tangible fixed assets
Land and
buildings
Assets in
course of
construction
€’000
€’000
Minor
works
Computer
equipment
Equipment Fixtures and
fittings
Total
€’000
€’000
€’000
€’000
€’000
CONSOLIDATED
Cost or valuation
At 1 October 2003
Additions
Transfers from assets in course of construction
290,858
51,770
33,829
56,468
20,904
(33,829)
5,325
355
-
18,069
1,115
-
52,040
6,308
-
282
28
-
423,042
80,480
-
At 30 September 2004
376,457
43,543
5,680
19,184
58,348
310
503,522
Depreciation
At 1 October 2003
Depreciation for year
56,856
7,336
-
5,325
36
16,292
1,145
38,772
6,558
93
26
117,338
15,101
At 30 September 2004
64,192
-
5,361
17,437
45,330
119
132,439
Net book value
At 30 September 2003
234,002
56,468
-
1,777
13,268
189
305,704
At 30 September 2004
312,265
43,543
319
1,747
13,018
191
371,083
Details of capital grant funding received in respect of tangible fixed assets are detailed in note 19.
Land and buildings includes €1,615k in respect of freehold land which is not depreciated. This category also includes €46,244k (2003: €13,921k) in relation to land and
buildings which have been accounted for in accordance with the Financial Reporting Standard 5 - Reporting the substance of transactions, issued by the Accounting Standards
Board. These land and buildings are legally owned by special finance purpose companies. The commercial effect of the transactions surrounding the sale and ultimate
repurchase of these buildings is that the University continues to bear all significant benefits and risks relating to the land and buildings.
The University does not maintain a fixed asset register and consequently, cost and depreciation at 1 October 2002 and the charge for the years ended 30 September 2003 and
2004 are not fully verifiable. The University does however maintain a register of all equipment, which cost €1,270 or more.
18
University College Dublin
National University of Ireland, Dublin
Financial Statements
NOTES TO THE ACCOUNTS - continued
11 Tangible fixed assets - continued
Land and
buildings
€’000
Assets under
construction
€’000
Minor
works
€’000
Computer
equipment
€’000
Equipment
Total
€’000
€’000
UNIVERSITY
Cost
At 1 October 2003
Additions
Transfer from assets under construction
285,320
80,125
5,638
8,993
20,904
(5,638)
5,325
355
-
18,057
1,111
-
52,314
6,290
-
370,009
108,785
-
At 30 September 2004
371,083
24,259
5,680
19,168
58,604
478,794
Depreciation
At 1 October 2003
Charge for year
56,788
7,198
-
5,325
36
16,281
1,142
38,770
6,547
117,164
14,923
At 30 September 2004
63,986
-
5,361
17,423
45,317
132,087
Net book value
At 30 September 2003
228,532
8,993
-
1,776
13,544
252,845
At 30 September 2004
307,097
24,259
319
1,745
13,287
346,707
19
University College Dublin
National University of Ireland, Dublin
Financial Statements
NOTES TO THE ACCOUNTS - continued
11 Tangible fixed assets – continued
Tax based property schemes
The University has entered into arrangements with various investors whereby the investors obtain tax
relief arising on the construction costs of buildings and share the benefit of this relief with UCD.
All of these tax based property schemes where legal title has not yet passed to the University have been
included in the financial statements at historical cost in accordance with Financial Reporting Standard No.
5 – Reporting the substance of transactions as issued by the Accounting Standards Board.
The principal reliefs availed of in relation to UCD properties are as follows:
a) “Section 23” relief which was availed of in relation to the Merville and Roebuck student residences.
Full legal ownership of these properties passed to the University in 2000 and 2003 respectively and
are reflected in the balance sheet at 30 September 2004 at historical cost.
b) “Section 50” relief which was availed of in relation to the Glenomena phase 1 and 2 of the student
residences and the Proby student residences. Full legal ownership of these properties is due to pass
to UCD under option agreements in the years 2012, 2013 and 2014 respectively. These properties
have been reflected in the balance sheet at 30 September 2004 at the historical cost of €37.029m in
accordance with Financial Reporting Standard No. 5 – Reporting the substance of transactions as
issued by the Accounting Standards Board as the risks and rewards of ownership accrue to UCD over
these periods.
c) “Section 843” relief which was availed of in relation to the Conway Institute of Biomedical and
Biomolecular Research, the Dublin Molecular Medicine Centre and the Institute for the Study of Social
Change. Full legal ownership of these properties is due to pass to UCD under option agreement in
the year 2010 and 2008 respectively. These properties have been reflected in the balance sheet at
30 September 2004 at their historical cost of €32.323m and €3.467m respectively in accordance with
Financial Reporting Standard No. 5 – Reporting the substance of transactions as issued by the
Accounting Standards Board as the risks and rewards of ownership accrue to UCD over these
periods.
Future Asset
The Belgrove student residences have not been included in the balance sheet of the University on the
basis that UCD does not hold legal title to these premises, does not benefit from the income currently
generated by these residences and does not bear any financial risk in relation to the operation of
these residences.
However, under an option agreement, the University is due to acquire full legal ownership of the
residences in the year 2010 for a nil consideration sum.
The original construction cost of these premises in 1990 was €10.475 million.
20
University College Dublin
National University of Ireland, Dublin
Financial Statements
NOTES TO THE ACCOUNTS - continued
12 Financial assets
Consolidated
2004
2003
€'000
€'000
University
2004
2003
€'000
€'000
Investments at the year end were held as
follows:
Other
192
188
192
188
The University holds an interest in the following subsidiary and associate undertakings:
Subsidiary undertakings
Mapleview Limited
UCD O’Reilly Hall Limited
UCD Student Centre Limited
UCD Property Development Company
Limited
UCD Nova Limited
Foster Residences Limited
UCD Educational Services Limited
Campus Trust Limited
Associated undertakings
Dublin Molecular Medicine Centre
13 Stocks
Raw materials and consumables
Finished goods for resale
Principal activity
Interest
%
Registered office/
place of business
Accommodation rental
Management of O’Reilly Hall
Management of Student Centre
100%
100%
100%
100%
Belfield, Dublin 4
Belfield, Dublin 4
Belfield, Dublin 4
Belfield, Dublin 4
Property development
Development of Nova Building
Accommodation rental
Dormant
Dormant
100%
100%
100%
100%
Belfield, Dublin 4
Belfield, Dublin 4
Belfield, Dublin 4
Belfield, Dublin 4
Research
50%
Belfield, Dublin 4
Consolidated and University
2004
€’000
2003
€’000
441
246
419
240
687
659
There is no material difference between the balance sheet amount of stocks and its replacement cost.
21
University College Dublin
National University of Ireland, Dublin
Financial Statements
NOTES TO THE ACCOUNTS - continued
14 Debtors
Trade debtors
Research grants and contracts receivable
State grant receivable
Other capital funding receivable
Academic fees receivable
Prepayments
Amounts due from subsidiary undertakings
Other debtors
Deferred tax asset (note 21)
Consolidated
2004
2003
€'000
€'000
University
2004
2003
€'000
€'000
3,306
16,017
14,846
545
508
407
5,230
-
3,861
14,170
5,716
13,935
579
50
4,453
14
3,306
16,017
14,846
545
508
401
24,265
3,782
-
3,085
14,170
5,716
7,071
579
36
56,119
3,133
-
40,859
42,778
63,670
89,909
15 Cash at Bank
Consolidated
2004
2003
€’000
€’000
81,530
76,195
39,216
3,412
Cash at bank including balances held on short term deposit
Restricted bank balances
120,746
79,607
Restricted bank balances represent amounts set aside as sinking funds under the original financing
agreement associated with the Section 843 funding of the Conway Institute of Biomedical and
Biomolecular Research, the Dublin Molecular Medicine Centre and the Institute of the Study of Social
Change. The purpose of these sinking funds is to generate sufficient funds to acquire full ownership of
these assets at future dates.
16 Creditors: Amounts falling due within
one year
Trade creditors
Research grants and contracts in advance
Academic fees received in advance
State grant received in advance
Other capital funding received in advance
Accruals
Obligations under finance leases (note 18)
Bank loans and overdrafts (note 18)
Amounts owed to subsidiary undertakings
Corporation tax
Other taxation and social security
Other creditors
Other amounts received in advance
Consolidated
2004
2003
€'000
€'000
University
2004
2003
€'000
€'000
2,471
26,209
25,695
23,938
10,490
15,353
6
7,209
9
4,699
2,864
3,848
2,256
19,793
23,369
29,929
24,897
12,853
20
11,352
2
3,892
1,280
4,297
1,874
26,209
25,695
23,938
10,490
11,842
6
7,209
1,922
4,699
2,758
2,446
2,186
19,793
23,369
29,929
18,033
10,133
20
11,352
1,780
3,809
1,279
4,297
122,791
133,940
119,088
125,980
22
University College Dublin
National University of Ireland, Dublin
Financial Statements
NOTES TO THE ACCOUNTS - continued
17 Creditors: Amounts falling due after one
year
Bank loans (note 18)
Obligations under finance leases (note 18)
18 Borrowings
Consolidated
2004
2003
€'000
€'000
University
2004
2003
€'000
€'000
76,441
2
28,831
8
76,441
2
28,831
8
76,443
28,839
76,443
28,839
Consolidated
2004
2003
€'000
€'000
University
2004
2003
€'000
€'000
(a) Bank loans and overdrafts
Bank loans and overdrafts are
repayable as follows:
In one year or less
In five years or more
7,209
76,441
11,352
28,831
7,209
76,441
11,352
28,831
Total
83,650
40,183
83,650
40,183
(b) Finance leases
Consolidated
2004
2003
€'000
€'000
University
2004
2003
€'000
€'000
The net finance lease obligations to
which the institution is committed are:
In one year or less
Between one and five years
6
2
20
8
6
2
20
8
Total
8
28
8
28
State Other grants
and
benefactors
€'000
€'000
Total
19 Deferred capital grants
€'000
Consolidated
At 1 October 2003
Buildings
Equipment
109,480
11,278
68,611
8,395
178,091
19,673
Total
120,758
77,006
197,764
Cash received
Buildings
Equipment
32,462
4,980
14,062
247
46,524
5,227
Total
37,442
14,309
51,751
23
University College Dublin
National University of Ireland, Dublin
Financial Statements
NOTES TO THE ACCOUNTS - continued
19 Deferred capital grants – continued
State Other grants
and
benefactors
€'000
€'000
Total
€'000
Released to income and expenditure
Buildings
Equipment
3,153
3,252
1,653
1,728
4,806
4,980
Total
6,405
3,381
9,786
At 30 September 2004
Buildings
Equipment
138,789
13,006
81,020
6,914
219,809
19,920
Total
151,795
87,934
239,729
Consolidated – continued
In addition, amounts received in advance are included in creditors (note 16). These balances represent
monies received in advance of building work and have not been amortised.
State Other grants
and
benefactors
€'000
€'000
Buildings
872
Total
€'000
10,490
11,362
State Other grants
and
benefactors
€'000
€'000
Total
€'000
University
At 1 October 2003
Buildings
Equipment
109,480
11,278
68,611
8,395
178,091
19,673
Total
120,758
77,006
197,764
Cash received
Buildings
Equipment
32,141
4,980
14,862
247
47,003
5,227
Total
37,121
15,109
52,230
24
University College Dublin
National University of Ireland, Dublin
Financial Statements
NOTES TO THE ACCOUNTS - continued
19 Deferred capital grants – continued
State Other grants
and
benefactors
€'000
€'000
Total
€'000
Released to income and expenditure
Buildings
Equipment
2,832
3,252
1,669
1,728
4,501
4,980
Total
6,084
3,397
9,481
At 30 September 2004
Buildings
Equipment
138,789
13,006
81,804
6,914
220,593
19,920
Total
151,795
88,718
240,513
University – continued
The University prepared consolidated financial statements in accordance with generally accepted accounting
principles in Ireland, for the first time in respect of the year ended 30 September 2003. In arriving at the
amount of capital grants at 1 October 2002, an estimate of the historical funding of fixed assets from each of i)
State ii) Other grants and benefactors and iii) Internal funding was made and consequently the opening
deferred capital grants at 1 October 2002 is not fully verifiable.
20 Reconciliation of movement of revenue reserves
2004
€’000
2003
€’000
Consolidated
At 1 October
Surplus
66,907
17,322
63,573
3,334
At 30 September
84,229
66,907
University
At 1 October
Surplus
61,841
16,741
58,573
3,268
At 30 September
78,582
61,841
21 Provisions for liabilities and charges
University and Consolidated
At 1 October 2003
Provided during the year
At 30 September 2004
Provisions
for liabilities
and charging
€’000
1,486
8,889
10,375
Provision of €10.375 million has been recognised in respect of costs relating to the implementation of the
Protection of Employees (Fixed Term Work) Act 2003. The Act grants entitlements to fixed term
25
University College Dublin
National University of Ireland, Dublin
Financial Statements
NOTES TO THE ACCOUNTS - continued
21
Provisions for liabilities and charges – continued
(contract) employees to ensure their terms of employment are no less favourable than a comparable
permanent employee. Under the terms of the legislation, the University is required to make financial
provision for pension costs in respect of fixed term employees.
Deferred
tax asset
€’000
Consolidated
At 1 October 2003 (note 14)
Utilised during the year
14
(14)
-
At 30 September 2004 (note 14)
2004
€’000
2003
€’000
Deferred tax asset
Capital allowances in excess of depreciation
Losses forward
-
10
4
Deferred tax asset (note 14)
-
14
22 Capital commitments
Contracted for but not provided
Authorised but not contracted out
Consolidated
2004
2003
€'000
€'000
University
2004
2003
€'000
€'000
65,408
8,922
78,573
5,148
73,708
8,922
26,427
2,252
74,330
83,721
82,630
28,679
2004
€’000
2003
€’000
Surplus on continuing operations after depreciation of assets at valuation
Depreciation
Deferred capital grants released to income
Increase in stocks
Decrease/(increase) in debtors
(Decrease)/Increase in creditors
Increase in provisions
Interest income
Interest payable
9,453
15,101
(9,786)
(28)
1,919
(6,999)
8,889
(1,515)
1,587
3,343
18,550
(8,467)
(106)
(6,845)
30,528
1,486
(1,512)
961
Net cash inflow from operating activities
18,621
37,938
23 Reconciliation of consolidated operating surplus to net cash inflow
from operating activities
26
University College Dublin
National University of Ireland, Dublin
Financial Statements
NOTES TO THE ACCOUNTS - continued
24 Returns on investments and servicing of finance
Income from investments
Other interest received
Interest paid
Net cash inflow from returns on investments and servicing of finance
25 Capital expenditure and financial investment
2004
€’000
2003
€’000
(4)
1,515
(1,587)
(3)
1,512
(961)
(76)
548
2004
€’000
2003
€’000
Purchase of tangible fixed assets
Payments to acquire investments
Sales of tangible fixed assets
Deferred capital grants received
(80,480)
7,901
51,751
(58,260)
(90)
31,359
Net cash outflow from capital expenditure and financial investment
(20,828)
(26,991)
2004
€’000
2003
€’000
7,280
14
23
26 Financing
Debt due within one year:
Decrease in short term borrowings
Lease repayments
Debt due beyond one year:
Increase in long term borrowings
Repayment of amounts borrowed
Capital element of finance lease rental payments
(49,415)
1,805
6
(23,178)
574
20
Net cash (outflow) from management of liquid resources
(40,310)
(22,561)
27 Analysis of changes in net debt
Cash in hand, and at bank
Overdrafts
Debt due within 1 year
Debt due after 1 year
Finance leases due within 1 year
Finance lease due after 1 year
Total
At 1 Oct
2003
€’000
Cashflows
€’000
At 30 Sept
2004
€’000
79,607
(4,072)
41,139
(3,137)
120,746
(7,209)
(7,280)
(28,831)
(20)
(8)
7,280
(47,610)
14
6
(76,441)
(6)
(2)
39,396
(2,308)
37,088
27
University College Dublin
National University of Ireland, Dublin
Financial Statements
NOTES TO THE ACCOUNTS - continued
28 Related parties
Transactions with subsidiaries of the University have been eliminated on consolidation and no disclosure
of these transactions has therefore been given. The University has no related party transactions which
require disclosure under Financial Reporting Standard 8 - Related Party Transactions.
29 Retirement benefits
The University has a separately administered defined benefit pension scheme which was established
under Statute XCVI and is administrated as an Exempt Approved Scheme in the terms of Chapter II of
Part 1 of the Finance Act 1972. Actuarial valuations of the scheme are conducted at three year intervals
with the latest formal actuarial valuation carried out at 30 September 2004 using the projected unit method
of valuation.
The pension entitlements of certain employees under the defined benefit scheme are based on final
pensionable pay and are secured by contributions by the University and the employees. The University’s
contribution is limited due to a restriction imposed by the HEA on the level of the University’s contribution
rate and this restriction prevents the University complying with SSAP 24: Accounting for Pension Cost s.
Post-retirement pension increases paid to pensioners are funded by the University and charged to the
income and expenditure account on a ‘pay as you go’ basis.
The following disclosures comply with those required under FRS 17: Retirement Benefits. FRS 17
stipulates the exact assumptions to be used in calculating the scheme liabilities that may be different at a
point in time compared to those used for the tri-annual actuarial valuation referred to above. In addition,
as FRS 17 requires disclosure of the University’s full pension liability, the liability of the post-retirements
pension augmentation payments paid to pensioners must be determined and included with the liability of
the defined benefit pension scheme.
The valuation of the Scheme benefits for the purposes of FRS 17 disclosures have been based on the
results of the most recent actuarial valuation completed at 1 October 2002. The full awards due under
benchmarking have also been included in the liabilities, although only 75% of these awards have been
paid at the accounting date. The valuation assumptions have been amended to take account of the
requirements of FRS 17.
The financial assumptions used to calculate the retirement liabilities under FRS 17 as at 30 September
2004 and as at 30 September 2003 were as follows:
Financial Assumptions
Valuation method
Discount rate
Inflation rate
Salary increases
Pension supplementation
30/9/2004
30/9/2003
Projected Unit
5.00%
2.50%
4.50%
3.50%
Projected Unit
5.50%
2.50%
4.50%
3.50%
28
University College Dublin
National University of Ireland, Dublin
Financial Statements
NOTES TO THE ACCOUNTS - continued
29 Retirement benefits - continued
Assets are included at the mid-market valuation at the accounting date. The details of the assets have
been extracted from audited pension fund financial statements for the year ended 30 September 2004.
The market value of the assets in the pension scheme, the expected rate of return, and the schemes’
liabilities as at 30 September 2004 and for comparison purposes 30 September 2003 were:
Equities
Bonds
Property
Cash
Expected
Return
%
At year-end
30/9/2004
€’000
Expected
Return
%
At year-end
30/9/2003
€’000
7.50%
4.00%
6.50%
2.00%
319,188
72,973
43,030
21,742
7.50%
4.00%
6.50%
1.60%
260,898
84,655
38,442
23,658
Total market value of assets
456,933
407,653
Actuarial value of liability
(776,770)
(677,447)
Pension (deficit)
(319,837)
(269,794)
Movement in deficit during the year
2004
€’000
Deficit at beginning of year
Current service cost
Contributions
Past service costs
Net internal cost
Actuarial loss
(269,794)
(21,456)
19,597
(11,482)
(36,702)
Deficit at end of year
(319,837)
2004
€’000
Consolidated net assets
Net pension liability (FRS 17)
Consolidated net asset/(liability) after net pension liability
Consolidated revenue reserves
Net pension liability (FRS 17)
Revenue reserves deficit after net pension liability
323,607
(319,837)
3,770
83,878
(319,837)
(235,959)
2003
€’000
265,364
(269,794)
(4,430)
67,600
(269,794)
(202,194)
29
University College Dublin
National University of Ireland, Dublin
Financial Statements
NOTES TO THE ACCOUNTS - continued
29 Retirement benefits – continued
If FRS 17 had been fully adopted in these financial statements the pension costs for the defined benefit
scheme would be:
Analysis of amount charged to operating profit
2004
€’000
Current service cost
Past service cost
21,476
-
Total operating charge
21,476
Analysis of return on pension fund
2004
€’000
Expected return on pension scheme assets
Interest on pension liabilities
25,811
(37,294)
Net return
(11,483)
Analysis of total recognised gains and losses
2004
€’000
Actual return less expected return on assets
Experience gains and (losses) on liabilities
Changes in assumptions
24,093
(60,795)
Actuarial loss
(36,702)
The last actuarial valuation of the scheme was conducted on the 30 September 2004.
The pension entitlements of certain other employees arise under a defined contribution pension scheme
and are secured by contribution by the University and the employees to a separately administered
pension fund.
The pension charge for the year was €19,597k (2003: €18,584k).
30 Approval of financial statements
The financial statements were approved by the Governing Authority on the 21st March 2006.
30
University College Dublin
National University of Ireland, Dublin
Financial Statements
ADDITIONAL INFORMATION
1. Deferred income
2004
€’000
2003
€’000
State recurrent grant:
- received in respect of current year
- deferred from prior accounting year
- deferred to subsequent accounting years
126,460
17,501
(23,067)
120,199
11,655
(17,501)
State recurrent grant per financial statements (Note 1)
120,894
114,353
State funding is received on a calendar year basis. The University financial year is based on the
academic year from October to September. In accordance with the University’s accounting policies
recurrent grants have been recognised on an accruals basis. In any accounting year, therefore, an
element of funding will be deferred to subsequent accounting periods in order to match the funding to the
related expenditure.
2. Student services charge
2004
€’000
2003
€’000
Income
Income from student services charge
9,238
8,192
Expenditure
Student services costs
Examination costs
Space costs associated with student facilities
Costs relating to registration, fees, admissions and records
4,686
3,234
1,401
1,104
4,112
3,101
1,315
1,072
Total expenditure
10,425
9,600
Shortfall
(1,187)
(1,408)
31
University College Dublin
National University of Ireland, Dublin
Funding Statement
University College Dublin
National University of Ireland, Dublin
HEA Funding Statement and Reconciliation
Year ended 30 September 2004
32
University College Dublin
National University of Ireland, Dublin
Funding Statement
CONTENTS
Page
STATEMENT OF ACCOUNTING POLICIES
34 - 35
REVENUE ACCOUNT
36
BALANCE SHEET
37
CASH FLOW STATEMENT
38
NOTES TO THE FINANCIAL STATEMENTS
39 - 46
RECONCILIATION OF HEA FUNDING STATEMENT WITH CONSOLIDATED
FINANCIAL STATEMENTS
47 - 48
33
University College Dublin
National University of Ireland, Dublin
Funding Statement
STATEMENT OF ACCOUNTING POLICIES
Scope of funding statement
The financial statements reflect the teaching, research and related service activities of the University. The net
results of ancillary services (as defined below) are included in the Revenue Account and shown as a
movement on the General Reserve, reflecting the most recent “Harmonisation of Accounts” agreement as
adopted by all Irish Universities. The financial statements of the University’s Pension Fund, Trust Funds,
Foundation and of financially independent ancillary activities (incorporated subsidiary undertakings) are
prepared and audited separately.
Accounting convention
The financial statements are prepared under the historical cost convention. They are presented in
accordance with the existing Harmonisation of Financial Statements agreement as adopted for all Irish
Universities except for capital grants which are recognised on an accruals basis rather than on a cash receipts
basis. A review of the Harmonisation agreement by the universities, in consultation with the Higher Education
Authority and the Comptroller and Auditor General, is nearing completion and will result in a new agreed
harmonised format.
Ancillary services
The ancillary services are activities which do not receive direct HEA funding. Such activities support core
services on a cost recovery basis or are operated on a commercial basis. The net results for such activities
are shown in the Revenue Account with a matching amount shown in debtors and creditors.
State grants for recurrent expenditure
The recurrent grant has been recognised on an accruals basis. The recurrent grant, which has been used for
the purchase of fixed assets, is transferred to the General Reserve.
State grants for capital expenditure
State grants approved by the HEA for capital expenditure are included in the financial statements of the period
on an accruals basis.
Approved allocations and departmental funds
The revenue account is charged with approved allocations within particular headings. The amounts unspent
at the year end are recorded as departmental funds within creditors. Departmental funds debit balances are
recorded within debtors.
General reserve
The General Reserve represents the value of funding, after amortisation, applied for capital purposes together
with the results from 1 October 1996 on ancillary services.
Amortisation of capital funding and reserves
Capital funding and reserves included in the General Reserve are amortised at the same level as the related
fixed assets are depreciated.
Fee income
Fee income is accounted for on an accruals basis and reported at EU fee levels. Non EU Fee income is
included up to the EU level with any excess (up to the 2003/2004 related unit cost) being reported under
Other Income. Any further excess over the 2003/2004 related unit cost was transferred to capital reserves.
Stocks
Expenditure on books and consumable stocks financed by recurrent grants are charged in full to the revenue
account as incurred. Farm, horticulture and restaurant stocks are shown in the balance sheet and are valued
as follows:
Livestock:
Cattle
Other
Farm and horticulture stock
Restaurant stock
Market value less 40%
Market value less 25%
Lower of cost or market value
Lower of cost or market value
34
University College Dublin
National University of Ireland, Dublin
Funding Statement
STATEMENT OF ACCOUNTING POLICIES - continued
Investments
Investments are shown in the balance sheet using the following valuation basis:
Quoted and unquoted investments - lower of cost and net realisable value.
Foreign currency
Income and expenditure denominated in foreign currencies are translated at the exchange rates ruling at the
dates of the transactions. Assets and liabilities denominated in foreign currencies are translated into Euro at
the rate of exchange ruling at the balance sheet date. The resulting profits or losses are dealt with in the
revenue account.
Fixed assets and depreciation
All fixed assets are stated at cost and depreciation is charged on all fixed assets excluding land. The
estimated useful lives of fixed assets by reference to which depreciation has been calculated on a straight-line
basis are as follows:
Buildings
Minor works
Equipment
Computer equipment
Leased assets
50 years
10 years
5 years
3 years
20 years or primary lease period, if shorter
Research grants
Income from contract research grants is included in the revenue account to the extent that the related
expenditure has been incurred in the period. Expenditure is shown net of the contribution to the University.
Contract research contribution to the University’s indirect costs is included in other income.
From 1 October 1997 fixed assets financed from research grants are capitalised in the balance sheet.
Finance leases
Assets held under finance leases are capitalised in the balance sheet and depreciated over the life of the
primary lease. Finance lease payments are met from recurrent income.
Pensions
The basic retirement benefits of staff are funded by contributions from the University to the Pension Fund at a
pre-determined rate of pensionable pay and are included under the various salary and wage headings of the
revenue account.
Increases to the initial pension of staff are charged as pension supplementation in the revenue account as
incurred. Separate financial statements are prepared annually for the Pension Fund.
Taxation
No provision has been made for taxation as the University holds tax-exempt status.
Restricted reserves
Restricted reserves comprise the unused portion of funds made available to the University for specified
purposes.
University residences
University residences and the related financing are accounted for in accordance with the legal form rather
than the commercial substance of these transactions.
35
University College Dublin
National University of Ireland, Dublin
Funding Statement
REVENUE ACCOUNT
Year Ended 30 September 2004
Notes
2004
€000
2003
€000
Income
State grants
Academic fees
Other income
1
2
3
120,894
88,220
13,528
116,188
79,283
12,116
Contract research
4
222,642
37,026
207,587
34,732
259,668
242,319
147,375
21,019
24,164
2,634
11,461
7,316
4,686
7,210
1,523
127,277
23,583
22,680
4,849
10,205
6,792
4,112
6,683
911
Total income
Expenditure
Academic faculties and departments
Academic and other services
Premises
Amount allocated for capital purposes
Central administration and services
General educational expenditure
Student services
Pension supplementation
Term loan interest
5
6
7
8
9
10
11
Contract research
4
227,388
37,026
207,092
34,732
Total expenditure
12
264,414
241,824
(Deficit)/Surplus for year before amortisation of capital reserves
and grants, ancillary services and depreciation of fixed assets
Surplus on ancillary services
Depreciation of fixed assets
General reserve movement
(4,746)
13
15
14
448
(14,886)
14,438
(4,746)
Net (deficit)/surplus for the year
Transfer to the strategic initiative and innovation reserve
Revenue reserves at start of year
20
22
Revenue reserves at end of year
22
(181)
1,590
(3,337)
495
711
(18,151)
17,440
495
(191)
1,286
1,590
The statement of accounting policies, on pages 34 to 35 and the cash flow statement and notes from page 38
to page 46 form part of these financial statements.
____________________
President
____________________
Bursar
36
University College Dublin
National University of Ireland, Dublin
Funding Statement
BALANCE SHEET
As at 30 September 2004
2004
€000
2003
€000
348,322
241,834
130
130
-
3,174
127
19,611
74,197
68,930
687
68,215
82,059
658
143,814
150,932
(161,938)
(120,165)
Net current assets
(18,124)
30,767
Long term liabilities
Creditors due after one year
Long term loans
(2)
(36,023)
(7)
(28,831)
(36,025)
(28,838)
294,430
266,678
297,640
127
(3,337)
245,477
19,611
1,590
294,430
266,678
Notes
Fixed assets
15
Investments
Deposit on student residences
16
Restricted bank balances
Current assets
Bank balances and cash
Debtors and prepayments
Stocks
17
18
Current liabilities
Creditors and accrued expenditure
19
Represented by:
General reserve
Restricted reserves
Revenue reserves
20
21
22
The statement of accounting policies, on pages 34 to 35 and the cash flow statement and notes from page 38
to page 46 form part of these financial statements.
____________________
President
____________________
Bursar
37
University College Dublin
National University of Ireland, Dublin
Funding Statement
CASH FLOW STATEMENT
Year Ended 30 September 2004
2004
€000
2003
€000
48,667
41,751
1,722
2,835
Capital expenditure
Payments to acquire tangible fixed assets
(80,956)
(56,191)
Net cash outflow before financing
(30,567)
(11,605)
Financing
HEA capital grants
Non HEA capital funding
Recurrent funding transfer
Repayment of pension fund loan
New long term loans
30,337
(12,620)
11,640
7,192
(8,294)
23,256
7,668
(6,227)
28,831
36,549
45,234
5,982
33,629
5,982
33,629
Notes
Net cash inflow from operating activities
23
Returns on investments and services of finance
Interest received (net)
Net cash inflow from financing
Net cash inflow after financing
Increase in cash and cash equivalents
24
The notes on pages 39 to 46 form part of these financial statements.
38
University College Dublin
National University of Ireland, Dublin
Funding Statement
NOTES TO THE FINANCIAL STATEMENTS
1
2
3
State grants
2004
€000
2003
€000
Recurrent grant
Targeted funding for special initiatives
Minor works grant
115,772
4,782
340
111,034
4,369
785
Total
120,894
116,188
2004
€000
2003
€000
Academic fees
Miscellaneous fee income
87,600
620
78,674
609
Total
88,220
79,283
Other income
2004
€000
2003
€000
Interest receivable (net)
Funded posts
Rent, concessions and other charges
Non-EU fees
Contract research contribution
Contribution from subsidiary companies
1,722
1,949
404
5,509
2,420
1,524
2,835
1,874
464
5,082
950
911
13,528
12,116
2004
€000
2003
€000
37,026
34,732
Academic fees
Total
4
Contract research
Research grants
Income from contract research grants is included in the revenue account to the extent that the related
expenditure has been incurred in the period. Expenditure is shown net of University contribution.
Contract research contribution to the University’s indirect costs is included in other income.
39
University College Dublin
National University of Ireland, Dublin
Funding Statement
NOTES TO THE FINANCIAL STATEMENTS - continued
5
Academic faculties and departments
2004
Staff costs
€000
2004
Non pay
€000
2004
Total
€000
2003
Total
€000
Academic staff
Technical staff
Administration support staff
Departmental materials, equipment and
travel
Miscellaneous
99,462
12,219
14,090
-
99,462
12,219
14,090
82,020
12,692
13,137
86
20,707
811
20,707
897
18,410
1,018
125,857
21,518
147,375
127,277
Academic and other services
2004
Staff costs
€000
2004
Non pay
€000
2004
Total
€000
2003
Total
€000
Computer services
Library
Language laboratory
Audio visual centre
Electron microscopy unit
Biomedical facility
Archives
University industry programme
Lyons Estate field station
3,792
5,356
188
639
174
573
792
710
3,947
3,908
55
(62)
56
45
105
700
41
7,739
9,264
243
577
230
618
897
700
751
11,511
8,369
235
514
247
536
735
659
777
12,224
8,795
21,019
23,583
2004
Staff costs
€000
2004
Non pay
€000
2004
Total
€000
2003
Total
€000
Premises maintenance
General services
Minor works
Rent and rates
Insurance
Energy costs
2,735
3,023
-
11,017
1,026
340
487
1,591
3,945
13,752
4,049
340
487
1,591
3,945
12,367
3,917
785
489
1,700
3,422
Total
5,758
18,406
24,164
22,680
Total
6
Total
7
Premises
40
University College Dublin
National University of Ireland, Dublin
Funding Statement
NOTES TO THE FINANCIAL STATEMENTS - continued
8
9
Amount allocated for capital purposes
2004
Staff costs
€000
2004
Non pay
€000
2004
Total
€000
2003
Total
€000
Capital projects
Equipment
-
1,635
999
1,635
999
3,899
950
Total
-
2,634
2,634
4,849
2004
Staff costs
€000
2004
Non pay
€000
2004
Total
€000
2003
Total
€000
Administration staff
Expenses
Professional charges
Miscellaneous
8,458
261
807
1,456
479
8,458
807
1,456
740
7,740
758
938
769
Total
8,719
2,742
11,461
10,205
2004
Staff costs
€000
2004
Non pay
€000
2004
Total
€000
2003
Total
€000
Examination expenses
Scholarships/prizes/fellowships
NUI capitation
Miscellaneous expenses
2,486
733
748
851
667
1,831
3,234
851
667
2,564
3,101
1,083
696
1,912
Total
3,219
4,097
7,316
6,792
2004
Staff costs
€000
2004
Non pay
€000
2004
Total
€000
2003
Total
€000
Central administration and services
10 General educational expenditure
11 Student services
Capitation and other grants
Student services
Careers office
Health and counselling
Sports facilities and recreation
1,285
377
634
810
1,235
342
51
53
(101)
1,235
1,627
428
687
709
1,125
1,390
413
640
544
Total
3,106
1,580
4,686
4,112
41
University College Dublin
National University of Ireland, Dublin
Funding Statement
NOTES TO THE FINANCIAL STATEMENTS – continued
12 Composition of total expenditure
Academic and related services
Research grants
2004
Staff costs
€000
2004
Non pay
€000
2004
Total
€000
2003
Total
€000
166,093
23,125
61,295
13,901
227,388
37,026
207,092
34,732
189,218
75,196
264,414
241,824
A contribution from subsidiary companies of €1,524,000 (2003: €911,000) is included in other income
(note 3) to cover interest arising on term loans of €1,524,000 (2003: €911,000) included above. Included
above are pension supplementation costs of €7,210,000 (2003 €6,683,000).
13 Ancillary services summary
Catering
Student residences
Other activities
2004
Income
2004
Expenditure
€000
2004
Surplus/
(deficit)
€000
2003
Surplus/
(deficit)
€000
€000
3,025
4,966
87,745
2,995
4,795
87,498
30
171
247
592
119
95,736
95,288
448
711
448
711
2004
€000
2003
€000
14,886
18,151
Surplus – ancillary services
14 General reserve movement
Amortisation in line with depreciation
Surplus on ancillary services from revenue account to general revenue
account
(448)
14,438
(711)
17,440
42
University College Dublin
National University of Ireland, Dublin
Funding Statement
NOTES TO THE FINANCIAL STATEMENTS – continued
15 Fixed assets
2004
Land and
buildings
€000
Assets under
construction
€000
Minor
works
€000
Computer
equipment
€000
Equipment
Total
Total
€000
€000
€000
271,678
97,254
368,932
8,993
15,266
24,259
5,325
5,325
18,057
1,111
19,168
52,314
7,743
60,057
356,367
121,374
477,741
299,825
56,542
356,367
Depreciation
At start of year
Charge for year
54,157
7,197
-
5,325
-
16,281
1,142
38,770
6,547
114,533
14,886
96,382
18,151
At end of year
61,354
-
5,325
17,423
45,317
129,419
114,533
Net book value at start of year
217,521
8,993
-
1,776
13,544
241,834
203,443
Net book value at end of year
307,578
24,259
-
1,745
14,740
348,322
241,834
Cost at start of year
Additions
Cost at end of year
Fixed assets have been stated at historical cost.
43
University College Dublin
National University of Ireland, Dublin
Funding Statement
NOTES TO THE FINANCIAL STATEMENTS - continued
16 Deposit on student residences
At start of year
Interest
Transfer to capital reserves
At end of year
2004
€000
3,174
(3,174)
-
2003
€000
6,227
62
(3,115)
3,174
The deposit on student residences relates to the Merville student residences, which were acquired by the
University subsequent to the year-end.
17 Debtors and prepayments
Contract research grants and projects recoverable
State recurrent grant receivable
State capital grant receivable
Academic fees receivable
Other debtors and prepayments
Internal balances:
- Pension fund
- Trust fund
- Departmental funds and ancillary services
- Ancillary services surpluses from 1 October 1996
18 Stocks
Livestock
Horticulture and farm stock
Restaurant stock
Virus Reference Laboratory
2004
€000
2003
€000
15,145
6,214
10,382
507
7,773
13,298
1,886
1,014
579
4,236
559
53
24,604
3,693
1,010
509
56,421
3,106
68,930
82,059
2004
€000
2003
€000
149
266
26
246
138
246
34
240
687
658
44
University College Dublin
National University of Ireland, Dublin
Funding Statement
NOTES TO THE FINANCIAL STATEMENTS - continued
19 Creditors and accrued expenditure
Contract research grants and projects unexpended
State grant for recurrent expenditure received in advance
State capital grant received and accruals
Academic fees received in advance
Other creditors and accruals
Internal balances:
- Unexpended approved allocations
- Departmental funds and ancillary services
20 General reserve
State capital grants
Recurrent funding transfer from October
1996
Capital reserves
Student centre levy
Ancillary services
Strategic initiative and innovation reserve
Amortisation
Amortisation
Amortisation - leased assets
Opening Current year
balance
movement
€000
€000
2004
€000
2003
€000
25,537
23,066
872
25,694
49,914
19,121
17,501
23,369
22,862
16,556
20,299
16,760
20,552
161,938
120,165
Closing
balance
€000
2003
€000
193,279
30,337
223,616
193,279
30,328
126,959
6,229
3,106
846
11,640
23,162
1,281
448
181
41,968
150,121
7,510
3,554
1,027
30,328
126,959
6,229
3,106
846
360,747
67,049
427,796
360,747
(115,986)
716
(14,886)
-
(130,872)
716
(115,986)
716
245,477
52,163
297,640
245,477
Capital reserves represent capital donations, surpluses on disposal of property, recurrent grants allocated
to capital expenditure up to 1 October 1996 and funding from research grants after 1 October 1997 for the
purchase of equipment.
21 Restricted reserves
At start of year
Additions during the year
At end of year
2004
€000
19,611
(19,484)
127
2003
€000
16,825
2,786
19,611
45
University College Dublin
National University of Ireland, Dublin
Funding Statement
NOTES TO THE FINANCIAL STATEMENTS - continued
22 Revenue reserves
2004
€000
2003
€000
At start of year
Surplus for year
Transfer to the strategic initiative and innovation reserve
1,590
(4,746)
(181)
1,286
495
(191)
At end of year
(3,337)
1,590
2004
€000
2003
€000
23 Reconciliation of revenue account surplus to net cash outflow from
operating activities
Surplus for the year
Less interest received (net)
Depreciation of fixed assets
Amortisation of general reserve
Transfer to the strategic initiative and innovation reserve
Decrease in investment
Decrease in debtors
Increase in stocks
Increase in creditors and accruals
Surplus on ancillary services
Net cash inflow from operating activities
24 Analysis of net debt
Cash in hand, at bank
Debt due within one year
Debt due after one year
At 1 Oct
2003
€’000
(4,746)
(1,722)
14,887
(14,887)
(181)
13,129
(29)
41,768
448
495
(2,835)
18,151
(18,151)
(191)
22,319
(241)
21,493
711
48,667
41,751
Cashflow
€’000
At 30 Sept
2004
€’000
68,215
(28,831)
5,982
(7,192)
74,197
(36,023)
39,384
(1,210)
38,174
25 Approval of the financial statements
The financial statements were approved by the Governing Authority on 21 March 2006.
46
University College Dublin
National University of Ireland, Dublin
Reconciliation with Funding Statement
University College Dublin
National University of Ireland, Dublin
HEA Funding Statement and Reconciliation
Year ended 30 September 2004
Reconciliation with Funding Statement
47
University College Dublin
National University of Ireland, Dublin
Reconciliation with Funding Statement
RECONCILIATION OF HEA FUNDING STATEMENT WITH CONSOLIDATED FINANCIAL STATEMENTS
Year ended 30 September 2004
Consolidated
financial
statements
Subsidiary Unincorporated
companies
Ancillary
activities
€'000
€'000
€'000
120,894
99,907
39,446
-
-
9,786
7,901
34,895
1,515
79,968
-
Total income
314,344
EXPENDITURE
Staff costs
Other operating expenses
Interest payable
Depreciation
Total expenditure
INCOME
State grants
Academic fees
Research grants and contracts
Amortisation of deferred capital
grants
Disposal of St. Catherines
Other operating income
Interest income
Surplus for the year before
taxation
GAAP
adjustments
HEA funding
statement
€'000
€'000
120,894
88,220
37,026
10,731
-
(11,687)
(2,420)
5,100
(7,901)
(113,788)
207
79,968
10,731
(130,489)
274,554
197,077
83,226
1,587
15,100
711
78,915
178
4,335
6,045
-
(12,905)
(94,513)
(64)
(392)
189,218
73,673
1,523
14,886
296,990
79,804
10,380
(107,874)
279,300
17,354
164
351
(22,615)
14,886
11,806
1,722
(4,746)
48