University College Dublin
National University of Ireland, Dublin
Consolidated Financial Statements and Funding Statement
Year Ended 30 September 2003
University College Dublin
National University of Ireland, Dublin
Financial Statements
Consolidated Financial Statements 2003
CONTENTS
Page
PRESIDENT'S REPORT
STATEMENT OF GOVERNING AUTHORITY'S RESPONSIBILITIES
INDEPENDENT AUDITORS' REPORT
STATEMENT OF ACCOUNTING POLICIES
2-4
5
6-7
8 - 10
CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT
11
CONSOLIDATED BALANCE SHEET
12
NOTES TO THE ACCOUNTS
13 - 25
HEA FUNDING STATEMENT
26 - 40
RECONCILIATION WITH FUNDING STATEMENT
41 - 42
1
University College Dublin
National University of Ireland, Dublin
Financial Statements
PRESIDENT'S REPORT
Scope of the Financial Statements
The financial statements comprise the consolidated results of the University and its wholly owned subsidiary
companies. The financial statements of the University’s Pension Fund, Trust Funds, Student’s Union and
Foundation are prepared and audited separately and are not included in the consolidated results for the year as
they are not controlled by the University.
These financial statements have been prepared in accordance with generally accepted accounting standards.
Previously, the financial statements of the University were in a format which had been agreed with the Higher
Education Authority (HEA) known as the “Harmonisation of Accounts” agreement as adopted by all Irish
universities.
In order to permit continued comparison across the university sector, the harmonised accounts format is
included with the consolidated financial statements, titled HEA Funding Statement, and is shown on pages 26
to 40.
A reconciliation of the surplus from the HEA Funding Statement to the surplus in the consolidated financial
statements is shown on page 42.
Results for the Year
The University’s consolidated income and expenditure and net surplus for the year to 30 September 2003 is
shown on page 11 of the financial statements. Total income increased by 8% during the year from €256.0m
to €276.4m. Student fees showed an increase of €15.08m to €90.2m. State grant funding, while increasing
during the year to €114.0m, represented 41% of total income, thus illustrating the importance of other nonstate funded income generating activities for the University.
Total expenditure increased by €24.67m (9.93%) to €273m, with staff costs increasing by €21.6m (14%) to
€175.59m.
The overall result was a modest surplus of €3.3m for the year, which represents a margin of just 1.21% on
total income and shows a significant reduction on the surplus achieved in the previous year of €7.5m.
Treasury Management
The University’s cash balances increased during the year from €41.5m to €75.5m and in accordance with the
University’s treasury management policy, the investment objective is to achieve the best possible return while
minimising risk.
The increase in cash balances at the year end is largely attributed to the draw down of bank term loans to
replace treasury funds used to bridge capital work-in-progress in the previous year.
Long term borrowing increased from €13.5m to €28.8m during the year.
Capital Expenditure
During the financial year 2002/03 the University incurred €50.2m expenditure on building projects.
A number of major developments occurred during the year, most notably the completion of the Conway
Institute of Biomolecular and Biomedical Research. This major research facility was funded as part of the
State’s Programme for Research in Third Level Institutions and will act as an international centre of
excellence that will advance knowledge in the biosciences and enhance Ireland’s position in medical and
scientific research.
2
University College Dublin
National University of Ireland, Dublin
Financial Statements
PRESIDENT'S REPORT
Other building projects that were completed during the year include the Centre for Research in Infectious
Diseases and the first phase of the new NovaUCD Centre which provides incubation units where technology
and knowledge intensive enterprises can be nurtured. Construction of the second phase of the new
Glenomena student residences was also completed during the year with additional residences scheduled for
completion in 2004 on the Blackrock Campus.
The purchase by the University of the Philips site in December 2002, comprising 9.22 acres at Clonskeagh,
represents the acquisition of a valuable site which will enhance and extend the Belfield Campus. This site
containing buildings suitable for research and teaching purposes will be used to accommodate the
Engineering Departments currently located in Earlsfort Terrace.
Student Population
Student numbers increased from 20,895 to 21,339 placing a heavy burden on the limited resources of the
University.
The numbers applying for undergraduate courses continues to increase, reflecting the University’s ability to
maintain high standards in student tuition and services.
Destination figures for UCD primary degree graduates show a fall in the number seeking employment.
During the year there have been some changes in the employment market with the ICT and engineering
sectors showing signs of recovery and a resurgence of interest in jobs in teaching, public service and
professional training.
Over the past three years, the numbers of primary degree graduates going on to further study or training has
increased. This is largely driven by the improved range of attractive postgraduate coursework available and
we are greatly encouraged by this.
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. Access for students with
disabilities also improved significantly and the University now offers a range of support structures for these
students.
Students on the New ERA Programme can avail of a wide range of supports while in college which include
one to one advice and guidance, liaison person in each faculty and department, equipment assistance and
additional tuition and financial support.
Research
Research income increased from €27.8m to €32.1m during the year.
Irish Foundations continued to be the main direct source of funded research during the year, particularly
Science Foundation Ireland.
The university sector has agreed, after extensive consultation with State agencies, an indirect cost funding
level of 30%. Science Foundation Ireland has provided indirect cost funding at this level since the inception
of its programmes and most national funding agencies are now expected to introduce this level of indirect
cost funding on a phased basis.
The range and diversification of research has now reached a level that enables the University’s staff to
participate in major international and national programmes.
The Office of Funded Research Support Services continues to provide valuable support to researchers in
sourcing appropriate funding opportunities and in the negotiation and management of contracts.
3
University College Dublin
National University of Ireland, Dublin
Financial Statements
PRESIDENT'S REPORT
Conclusion
The University remains committed to its objective of providing its students with the highest quality of
education which is internationally recognised.
During the year under review the pace of change, the level of achievement and the number of developments
in the University have been commendable given the severe cuts in funding imposed by the State on the
University.
In the year under review the University operated under considerable budgetary constraints to accommodate
the cuts in Government funding during that period. The pursuit of a quality educational and research service
at a competitive price continues. The commitment to improve the management of resources both human and
physical remains a major priority despite the lack of financial resources
The HEA report on the review of the financial position of the Irish universities and the recent OECD report
on university funding recommended substantially increased resources for the universities. If this increased
level of funding is not made available soon, then it will not be possible for the Irish universities to offer
students a diversified range of teaching and research activities that will stand comparison with our
international competitors.
________________
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 judgements 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
University College Dublin
National University of Ireland, Dublin
Financial Statements
INDEPENDENT AUDITORS’ REPORT TO THE GOVERNING AUTHORITY OF UNIVERITY COLLEGE
DUBLIN, NATIONAL UNIVERSITY OF IRELAND, DUBLIN
We have audited the financial statements on pages 8 to 25.
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 year
ended 30 September 2003 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 year ended
30 September 2003 because of insufficient information regarding grants received at 30 September 2002 as
described in note 18;
(c)
the actuarial basis for pension costs in accordance with Statement of Standard Accounting Practice 24 and
Financial Reporting Standard 17; and
(d)
the University and University Group revenue reserves at 30 September 2002 and 30 September 2003 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 at.
Any adjustment to capital grants, tangible fixed assets or pension costs above would have a consequential effect on the
surplus for the year ended 30 September 2003. An adjustment to creditors and debtors at 30 September 2002 would
have a consequential effect of the reported surplus for the year ended 30 September 2003.
The financial statements do not provide the cash flow statement required by Financial Reporting Standard 1 nor the
disclosures required by Financial Reporting Standard 17.
In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial
statements.
6
University College Dublin
National University of Ireland, Dublin
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 18 to the financial statements;
(iii)
the adjustments to the income and expenditure account and balance sheets 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 the surplus for the year and 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
to creditors and debtors at 30 September 2002;
(v)
the failure to provide the cash flow statement as required by Financial Reporting Standard 1; and
(vi)
the failure to provide the disclosures required by Financial Reporting Standard 17;
in our opinion the financial statements on pages 8 to 25 give a true and fair view of the state of affairs of the University
and the University Group at 30 September 2003 of the surplus of the University Group for the year ended 30
September 2003.
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 27 to 40 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 30 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 42 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.
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.
Group financial statements have been prepared for the first time in the current year.
Recognition of income
Recurrent grants from the Higher Education Authority are recognised in the period in which they are receivable.
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.
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.
8
University College Dublin
National University of Ireland, Dublin
Financial Statements
STATEMENT OF ACCOUNTING POLICIES
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 assets 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.
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.
9
University College Dublin
National University of Ireland, Dublin
Financial Statements
STATEMENT OF ACCOUNTING POLICIES
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 2003
Notes
Income
State grants
Student 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 for the year before taxation
Taxation
9
Surplus for the year after taxation
10
Consolidated
2003
€'000
Consolidated
2002
€'000
114,353
90,207
32,076
8,467
29,827
1,512
104,189
75,121
27,836
8,857
37,559
2,405
276,442
255,967
175,590
77,998
961
18,550
153,989
83,205
1,036
10,198
273,099
248,428
3,343
7,539
(9)
3,334
(12)
7,527
The surplus for the year arose solely from continuing operations.
______________________
President
_______________________
Bursar
11
University College Dublin
National University of Ireland, Dublin
Financial Statements
CONSOLIDATED BALANCE SHEET
As at 30 September 2003
Notes
Fixed assets
Tangible assets
Financial assets
University
2003
€'000
2002
€'000
305,704
188
265,994
95
252,845
188
216,077
95
305,892
266,089
253,033
216,172
659
42,778
79,607
553
35,933
41,506
659
89,909
72,309
553
86,280
34,605
123,044
77,992
162,877
121,438
(133,940)
(92,101)
(125,980)
(90,630)
Net current assets/(liabilities)
(10,896)
(14,109)
36,897
30,808
Total assets less current liabilities
294,996
251,980
289,930
246,980
(13,535)
(28,839)
(13,535)
Current assets
Stocks
Debtors
Cash at bank
Creditors: Amounts falling due within one
year
11
12
Consolidated
2003
2002
€'000
€'000
13
14
15
Creditors: Amounts falling due after one
year
16
(28,839)
Net provisions for liabilities and charges
20
(1,486)
Net assets
-
(1,486)
-
264,671
238,445
259,605
233,445
Deferred capital grants
18
197,764
174,872
197,764
174,872
Represented by:
Revenue reserves
19
66,907
63,573
61,841
58,573
264,671
238,445
259,605
233,445
Total
______________________
President
_______________________
Bursar
12
University College Dublin
National University of Ireland, Dublin
Financial Statements
NOTES TO THE ACCOUNTS
1
State grants
State grants allocated for recurrent purposes
2003
€'000
2002
€'000
114,353
104,189
Grant income of €1,329,000 was received from the Eastern Regional Health Authority in 2003. All other grant
income was received from the Higher Education Authority.
2
Academic fees
2003
€'000
2002
€'000
Academic fee income
Miscellaneous fee income
89,598
609
74,578
543
Total fees paid by or on behalf of individual students
90,207
75,121
A total of €38,800,000 (2002: €36,603,000) included in academic fee income was paid directly by the Higher
Education Authority.
3
4
Research grants and contracts
2003
€'000
2002
€'000
State and semi-state
European Union
Industry
Other
21,289
2,367
1,240
8,130
18,097
4,498
1,773
4,817
Contribution in respect of overheads
33,026
(950)
29,185
(1,349)
32,076
27,836
2003
€'000
2002
€'000
3,328
4,023
1,522
8,036
12,067
851
4,190
5,066
1,917
10,119
15,195
1,072
29,827
37,559
Other income
Catering and conferences
Residences
Other rental income
Medical testing income
Academic facilities and departments
Other operating income
13
University College Dublin
National University of Ireland, Dublin
Financial Statements
NOTES TO THE ACCOUNTS - continued
5
6
Interest income
2003
€’000
2002
€’000
Interest income
1,512
2,405
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 (non-pay)
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
2003
Number
2002
Number
1,882
387
997
232
1,899
377
943
229
3,498
3,448
2003
€'000
2002
€'000
148,285
8,721
18,584
129,377
7,634
16,978
175,590
153,989
2003
€'000
2002
€'000
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
14,336
8,405
7,357
5,688
6,573
5,367
4,022
4,740
4,406
3,582
3,035
2,002
1,021
1,277
1,495
1,729
8,170
77,998
83,205
14
University College Dublin
National University of Ireland, Dublin
Financial Statements
NOTES TO THE ACCOUNTS - continued
Other operating expenses include:
Auditors’ remuneration:
- External audit
- Accountancy, taxation and secretarial
- Other services
8
Interest payable
144
293
128
82
54
-
2003
€'000
2002
€'000
961
1,036
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
2003
€'000
2002
€'000
(a) Current taxation:
Irish corporation tax on surplus for the year
Adjustments in respect of prior years
Current tax charge for the year
5
(1)
15
-
4
15
5
(3)
9
12
Deferred tax:
Origination and reversal of timing differences
(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 on continuing operations after depreciation of assets and before
taxation
Surplus before taxation multiplied by the average rate of Irish corporation tax
for the year of 13.375% (2002: 17%)
2003
€’000
2002
€’000
3,343
7,539
447
1,282
15
University College Dublin
National University of Ireland, Dublin
Financial Statements
NOTES TO THE ACCOUNTS - continued
9
Taxation - continued
Effects of:
Surpluses not subject to Irish corporation tax
Higher rate of tax on passive income
Disallowable expenses
Capital allowances in excess of depreciation
Trading losses forward
Adjustment to tax charge in respect of prior years
(403)
6
6
(48)
1
(1,282)
10
10
(2)
(6)
-
9
12
2003
€'000
2002
€'000
University’s surplus for the year
Surplus generated by the subsidiary undertakings and transferred to the University
3,268
66
6,716
811
Total (note 19)
3,334
7,527
Current tax charge for the year
10 Surplus on continuing operations for the year
The surplus on continuing operations for the year is made up as follows:
16
University College Dublin
National University of Ireland, Dublin
Financial Statements
NOTES TO THE ACCOUNTS - continued
11 Tangible fixed assets
Minor
works
Computer
equipment
Equipment
Fixtures and
fittings
Total
€’000
Assets in
course of
construction
€’000
€’000
€’000
€’000
€’000
€’000
Cost or valuation
At 1 October 2002
Additions
Transfers from assets in course of construction
233,738
5,363
51,757
64,046
44,179
(51,757)
5,325
-
16,933
1,136
-
44,620
7,420
-
120
162
-
364,782
58,260
-
At 30 September 2003
290,858
56,468
5,325
18,069
52,040
282
423,042
Depreciation
At 1 October 2002
Depreciation for year
51,355
5,501
-
5,325
-
14,019
2,273
28,025
10,747
64
29
98,788
18,550
At 30 September 2003
56,856
-
5,325
16,292
38,772
93
117,338
Net book value
At 30 September 2002
182,383
64,046
-
2,914
16,595
56
265,994
At 30 September 2003
234,002
56,468
-
1,777
13,268
189
305,704
CONSOLIDATED
Land and
buildings
Details of capital grant funding received in respect of tangible fixed assets are detailed in note 18.
Land and buildings includes €1,615,000 in respect of freehold land which is not depreciated. This category also includes €13,921,000 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.
17
University College Dublin
National University of Ireland, Dublin
Financial Statements
NOTES TO THE ACCOUNTS - continued
11 Tangible fixed assets - continued
UNIVERSITY
Land and
buildings
€’000
Assets under
construction
€’000
Minor
works
€’000
Computer
equipment
€’000
Equipment
Total
€’000
€’000
Cost
At 1 October 2002
Additions
Transfer from assets under construction
234,573
5,083
45,664
13,352
41,305
(45,664)
5,325
-
16,921
1,136
-
44,620
7,694
-
314,791
55,218
-
At 30 September 2003
285,320
8,993
5,325
18,057
52,314
370,009
Depreciation
At 1 October 2002
Charge for year
51,355
5,433
-
5,325
-
14,009
2,272
28,025
10,745
98,714
18,450
At 30 September 2003
56,788
-
5,325
16,281
38,770
117,164
Net book value
At 30 September 2002
183,218
13,352
-
2,912
16,595
216,077
At 30 September 2003
228,532
8,993
-
1,776
13,544
252,845
During 2003, the estimated useful life of equipment was changed from ten years to five years, This results in an additional depreciation charge in the income and expenditure account of
€7,413,000 in 2003.
18
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.
c)
“Section 843” relief which was availed of in relation to the Institute for the Study of Social Change. Full legal
ownership of this property is due to pass to UCD under option agreement in the year 2008. This property has
been reflected in the balance sheet at 30 September 2003 at historical cost of €3.467m in accordance with
Financial Reporting Standard No. 5 – Reporting the substance of transactions as issued by the Accounting
Standards Board
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.
19
University College Dublin
National University of Ireland, Dublin
Financial Statements
NOTES TO THE ACCOUNTS - continued
12 Financial assets
Consolidated
2003
2002
€'000
€'000
University
2003
€'000
2002
€'000
188
95
Investments at the year end were held as
follows:
Other
188
95
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
2003
2002
€’000
€’000
419
240
419
134
659
553
There is no material difference between the balance sheet amount of stocks and its replacement cost.
20
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 20)
15 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 17)
Bank loans and overdrafts (note 17)
Amounts owed to subsidiary undertakings
Corporation tax
Other taxation and social security
Other creditors
Other amounts received in advance
16 Creditors: Amounts falling due after one
year
Bank loans (note 17)
Loan from pension fund
Obligations under finance leases (note 17)
Consolidated
2003
2002
€'000
€'000
University
2003
€'000
2002
€'000
3,861
14,170
5,716
13,935
579
50
4,453
14
4,923
9,511
6,669
5,683
288
764
8,076
19
3,085
14,170
5,716
7,071
579
36
56,119
3,133
-
4,490
9,511
6,669
5,683
288
764
57,541
1,334
-
42,778
35,933
89,909
86,280
Consolidated
2003
2002
€'000
€'000
2003
€'000
2002
€'000
University
2,256
19,793
23,369
29,929
24,897
12,853
20
11,352
2
3,892
1,280
4,297
1,258
15,355
20,740
19,339
19,121
8,151
43
20
3,572
3,437
1,065
2,186
19,793
23,369
29,929
18,033
10,133
20
11,352
1,780
3,809
1,279
4,297
968
15,355
20,740
19,339
19,121
6,330
43
651
3,547
3,471
1,065
133,940
92,101
125,980
90,630
Consolidated
2003
2002
€'000
€'000
2003
€'000
2002
€'000
University
28,831
8
7,280
6,227
28
28,831
8
7,280
6,227
28
28,839
13,535
28,839
13,535
21
University College Dublin
National University of Ireland, Dublin
Financial Statements
NOTES TO THE ACCOUNTS - continued
17 Borrowings
Consolidated
2003
2002
€'000
€'000
University
2003
€'000
2002
€'000
(a) Bank loans and overdrafts
Bank loans and overdrafts are repayable as
follows:
In one year or less
In five years or more
11,352
28,831
13,507
11,352
28,831
13,507
Total
40,183
13,507
40,183
13,507
The loan of €6,227,000 from the University College Dublin pension fund had no fixed repayment date. This
was repaid to the University College Dublin pension fund during 2003.
(b) Finance leases
Consolidated
2003
2002
€'000
€'000
University
2003
€'000
2002
€'000
The net finance lease obligations to which
the institution is committed are:
In one year or less
Between one and five years
20
8
43
28
20
8
43
28
Total
28
71
28
71
Other grants
& benefactors
€'000
€'000
Total
18 Deferred capital grants
State
€'000
Consolidated and University
At 1 October 2002
Buildings
Equipment
103,954
11,216
53,557
6,145
157,511
17,361
Total
115,170
59,702
174,872
7,807
2,882
16,292
4,378
24,099
7,260
10,689
20,670
31,359
Cash received
Buildings
Equipment
Total
22
University College Dublin
National University of Ireland, Dublin
Financial Statements
NOTES TO THE ACCOUNTS - continued
18 Deferred capital grants – continued
State
Other grants
& benefactors
€'000
€'000
Total
Released to income and expenditure
Buildings
Equipment
2,281
2,820
1,238
2,128
3,519
4,948
Total
5,101
3,366
8,467
At 30 September 2003
Buildings
Equipment
109,480
11,278
68,611
8,395
178,091
19,673
Total
120,758
77,006
197,764
€'000
Consolidated and University – continued
In addition, amounts received in advance are included in creditors (note 15). These balances represent monies
received in advance of building work and have not been amortised.
Other grants
State & benefactors
Total
€'000
€'000
€'000
24,897
37,325
2003
€’000
2002
€’000
Consolidated
At 1 October
Surplus
63,573
3,334
56,046
7,527
At 30 September
66,907
63,573
University
At 1 October
Surplus
58,573
3,268
51,857
6,716
At 30 September
61,841
58,573
Buildings
19 Reconciliation of movement of revenue reserves
12,428
23
University College Dublin
National University of Ireland, Dublin
Financial Statements
NOTES TO THE ACCOUNTS - continued
20 Provisions for liabilities and charges
Provisions
for liabilities
and charging
€’000
University and Consolidated
At 1 October 2002
Provided during the year
1,486
At 30 September 2003
1,486
Provision of €1.486 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 (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 2002 (note 14)
Utilised during the year
19
(5)
At 30 September 2003 (note 14)
14
2003
€’000
2002
€’000
Deferred tax asset
Capital allowances in excess of depreciation
Losses forward
10
4
10
9
Deferred tax asset (note 14)
14
19
24
University College Dublin
National University of Ireland, Dublin
Financial Statements
NOTES TO THE ACCOUNTS - continued
21 Capital commitments
Contracted for but not provided
Authorised but not contracted out
Consolidated
2003
2002
€'000
€'000
University
2003
€'000
2002
€'000
78,573
5,148
48,526
59,225
26,427
2,252
1,363
51,493
83,721
107,751
28,679
52,856
22 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.
23 Retirement benefits
The disclosure requirements of Financial Reporting Standard 17 (“FRS 17”) Retirement Benefits and the accounting
and disclosure requirements of Statement of Standard Accounting Practice 24 (“SSAP 24”) Accounting for Pension
Costs have not been presented in these financial statements. FRS 17 and SSAP 24 have implications for the public
sector generally which are currently under consideration.
The basic retirement benefits of staff are funded by contributions from the University to the pension fund at a predetermined rate of pensionable pay and are included under the various salary and wage headings of the income and
expenditure account.
Increases to the initial pension of staff are charged as pension supplementation in the income and expenditure
account as incurred. Separate financial statements are prepared annually for the University pension fund.
The pension supplementation charge for the year was €6,683,000 (2002: €6,143,000). An amount of €1,010,000
(2002: €171,000) was due from the pension fund at year end.
24
Subsequent events
On 2 December 2003 the University exercised its option to acquire full legal title of the Merville student residences
for a consideration of €7.28m. The original cost of the Merville student residences was reflected in the balance sheet
at the 30th September 2003 in accordance with Financial Reporting Standard 5 – Reporting the substance of
transactions issued by the Accounting Standards Board.
25 Cash flow statement
A statement of cash flows as required by Financial Reporting Standard 1 Cash Flow Statements is not presented in
these financial statements. Financial statements, prepared in accordance with generally accepted accounting
principles in Ireland, are only prepared by the University group for the first time for the year ended 30 September
2003. Comparative information prepared on a consistent basis for 30 September 2002 and 2001 is not available.
26 Approval of financial statements
The financial statements were approved by the Governing Authority on the 21 March 2006.
25
University College Dublin National University of Ireland, Dublin
Funding Statement
Year ended 30 September 2003
University College Dublin
National University of Ireland, Dublin
HEA Funding Statement and Reconciliation
26
University College Dublin National University of Ireland, Dublin
Funding Statement
Year ended 30 September 2003
HEA Funding Statement
Year ended 30 September 2003
CONTENTS
STATEMENT OF ACCOUNTING POLICIES
28 - 29
REVENUE ACCOUNT
30
BALANCE SHEET
31
CASH FLOW STATEMENT
32
NOTES TO THE FINANCIAL STATEMENTS
33 - 40
RECONCILIATION OF HEA FUNDING STATEMENT WITH
CONSOLIDATED FINANCIAL STATEMENTS
41 - 42
27
University College Dublin National University of Ireland, Dublin
Funding Statement
Year ended 30 September 2003
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 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 yearend 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 2002/2003 related unit cost) being reported under Other Income. Any further excess
over the 2002/2003 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
28
University College Dublin National University of Ireland, Dublin
Funding Statement
Year ended 30 September 2003
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 predetermined 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.
29
University College Dublin National University of Ireland, Dublin
Funding Statement
Year ended 30 September 2003
REVENUE ACCOUNT
Notes
2003
€000
2002
€000
Income
State grants
Academic fees
Other income
1
2
3
116,188
79,283
12,116
106,040
66,086
10,683
Contract research
4
207,587
34,732
182,809
26,959
242,319
209,768
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
12
12
127,277
23,583
22,680
4,849
10,205
6,792
4,112
6,683
911
114,988
17,572
19,115
4,750
10,065
6,196
3,630
6,143
-
Contract research
4
207,092
34,732
182,459
26,959
Total expenditure
12
241,824
209,418
495
350
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
13
15
14
Net surplus for the year
711
(18,151)
17,440
142
(10,152)
10,010
495
350
Transfer to the strategic initiative and innovation reserve
Revenue reserves at start of year
22
22
(191)
1,286
(190)
1,126
Revenue reserves at end of year
22
1,590
1,286
The statement of accounting policies, on pages 28 to 29 and the cash flow statement and notes from page 32 to page 40
form part of these financial statements.
____________________
President
____________________
Bursar
30
University College Dublin National University of Ireland, Dublin
Funding Statement
Year ended 30 September 2003
BALANCE SHEET
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
Net current assets
Long term liabilities
Creditors due after one year
Long term loans
Represented by:
General reserve
Restricted reserves
Revenue reserves
20
21
22
2003
€000
2002
€000
241,834
203,443
130
130
3,174
6,227
19,611
17,176
68,215
82,059
658
34,586
104,378
419
150,932
139,383
(120,165)
(98,653)
30,767
40,730
(7)
(28,831)
(28)
(6,227)
(28,838)
(6,255)
266,678
261,451
245,477
19,611
1,590
243,340
16,825
1,286
266,678
261,451
The statement of accounting policies, on pages 28 to 29 and the cash flow statement and notes from page 32 to page 40
form part of these financial statements.
____________________
President
____________________
Bursar
31
University College Dublin National University of Ireland, Dublin
Funding Statement
Year ended 30 September 2003
CASH FLOW STATEMENT
Notes
Net cash inflow/(outflow) from operating activities
23
2003
€000
2002
€000
41,751
(49,336)
2,835
2,918
(56,191)
-
(58,126)
(351)
(56,191)
(58,477)
(11,605)
(104,895)
(8,294)
23,256
7,668
(6,227)
28,831
39,406
19,557
5,861
-
Net cash inflow from financing
45,234
64,824
Net cash inflow/(outflow) after financing
33,629
(40,071)
33,629
(40,071)
Returns on investments and services of finance
Interest received (net)
Capital expenditure
Payments to acquire tangible fixed assets
Deposit to acquire tangible fixed assets
Net cash outflow before financing
Financing
HEA capital grants
Non HEA capital funding
Recurrent funding transfer
Repayment of pension fund loan
New long term loans
Increase/(decrease) in cash and cash equivalents
24
24
24
The notes on pages 33 to 40 form part of these financial statements.
32
University College Dublin National University of Ireland, Dublin
Funding Statement
Year ended 30 September 2003
NOTES TO THE FINANCIAL STATEMENTS
1
2
3
State grants
2003
€000
2002
€000
Recurrent grant
Targeted funding for special initiatives
Minor works grant
111,034
4,369
785
99,196
6,083
761
Total
116,188
106,040
2003
€000
2002
€000
Academic fees
Miscellaneous fee income
78,674
609
65,543
543
Total
79,283
66,086
Other income
2003
€000
2002
€000
Interest receivable (net)
Funded posts
Rent, concessions and other charges
Non-EU fees
Contract research contribution
Contribution from subsidiary companies
2,835
1,874
464
5,082
950
911
2,918
1,746
451
3,666
1,349
553
12,116
10,683
2003
€000
2002
€000
34,732
26,959
Student 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.
33
University College Dublin National University of Ireland, Dublin
Funding Statement
Year ended 30 September 2003
NOTES TO THE FINANCIAL STATEMENTS - continued
5
Academic faculties and departments
Academic staff
Technical staff
Administration support staff
Departmental materials, equipment and travel
Miscellaneous
Total
6
Academic and other services
Computer services
Library
Language laboratory
Audio visual centre
Electron microscopy unit
Biomedical facility
Archives
University industry programme
Lyons estate field station
2003
Non pay
€000
2003
Total
€000
2002
Total
€000
82,020
12,692
13,137
80
18,410
938
82,020
12,692
13,137
18,410
1,018
72,703
10,439
9,465
21,295
1,086
107,929
19,348
127,277
114,988
2003
Staff costs
€000
2003
Non pay
€000
2003
Total
€000
2002
Total
€000
11,511
8,369
235
514
247
536
735
659
777
6,133
8,091
213
411
226
562
767
381
788
3,311
4,545
201
629
188
577
669
713
8,200
3,824
34
(115)
59
(41)
66
659
64
10,833
12,750
23,583
17,572
2003
Staff costs
€000
2003
Non pay
€000
2003
Total
€000
2002
Total
€000
Premises maintenance
General services
Minor works
Rent and rates
Insurance
Energy costs
2,357
2,905
-
10,010
1,012
785
489
1,700
3,422
12,367
3,917
785
489
1,700
3,422
9,792
3,876
760
507
845
3,335
Total
5,262
17,418
22,680
19,115
Total
7
2003
Staff costs
€000
Premises
34
University College Dublin National University of Ireland, Dublin
Funding Statement
Year ended 30 September 2003
NOTES TO THE FINANCIAL STATEMENTS - continued
8
9
Amount allocated for capital purposes
2003
Staff costs
€000
2003
Non pay
€000
2003
Total
€000
2002
Total
€000
Capital projects
Equipment
-
3,899
950
3,899
950
3,530
1,220
Total
-
4,849
4,849
4,750
2003
Staff costs
€000
2003
Non pay
€000
2003
Total
€000
2002
Total
€000
Administration staff
Expenses
Professional charges
Miscellaneous
7,740
227
758
938
542
7,740
758
938
769
7,239
998
810
1,018
Total
7,967
2,238
10,205
10,065
2003
Staff costs
€000
2003
Non pay
€000
2003
Total
€000
2002
Total
€000
Examination expenses
Scholarships/prizes/fellowships
NUI capitation
Miscellaneous expenses
2,179
646
922
1,083
696
1,266
3,101
1,083
696
1,912
2,735
1,260
667
1,534
Total
2,825
3,967
6,792
6,196
2003
Staff costs
€000
2003
Non pay
€000
2003
Total
€000
2002
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
4
1,006
352
595
754
1,121
384
61
45
(210)
1,125
1,390
413
640
544
1,177
1,035
379
563
476
Total
2,711
1,401
4,112
3,630
35
University College Dublin National University of Ireland, Dublin
Funding Statement
Year ended 30 September 2003
NOTES TO THE FINANCIAL STATEMENTS – continued
12 Composition of total expenditure
Academic and related services
Research grants
2003
Staff costs
€000
2003
Non pay
€000
2003
Total
€000
2002
Total
€000
144,212
21,293
62,880
13,439
207,092
34,732
182,459
26,959
165,505
76,319
241,824
209,418
A contribution from subsidiary companies of €911,000 is included in other income (note 3) to cover interest arising
on term loans of €911,000 included above. Included above are pension supplementation costs of €6,683,000 (2002:
€6,143,000).
13 Ancillary services summary
Catering
Student residences
Other activities
2003
Income
2003
Expenditure
€000
€000
2003
Surplus/
(deficit)
€000
2002
Surplus/
(deficit)
€000
3,349
4,023
53,563
(3,349)
(3,431)
(53,444)
592
119
(463)
605
60,935
(60,224)
711
142
711
142
2003
€000
2002
€000
18,151
(711)
10,152
(142)
17,440
10,010
Surplus – ancillary services
14 General reserve movement
Amortisation in line with depreciation
Surplus on ancillary services from revenue account to general revenue account
36
University College Dublin National University of Ireland, Dublin
Funding Statement
Year ended 30 September 2003
NOTES TO THE FINANCIAL STATEMENTS – continued
15 Fixed assets
Land and
buildings
€000
Assets under
construction
€000
Minor
works
€000
Computer
equipment
€000
2003
2002
Equipment
€000
Total
€000
Total
€000
Cost at start of year
Additions
Transfer from assets under construction
219,607
40,233
11,838
13,352
7,479
(11,838)
5,325
-
16,921
1,136
-
44,620
7,694
-
299,825
56,542
-
243,152
58,126
-
Cost at end of year
271,678
8,993
5,325
18,057
52,314
356,367
301,278
Depreciation
At start of year
Charge for year
49,023
5,134
-
5,325
-
14,009
2,272
28,025
10,745
96,382
18,151
87,683
10,152
At end of year
54,157
-
5,325
16,281
38,770
114,533
97,835
Net book value at start of year
170,584
13,352
-
2,912
16,595
203,443
155,469
Net book value at end of year
217,521
8,993
-
1,776
13,544
241,834
203,443
Fixed assets have been stated at historical cost.
37
University College Dublin National University of Ireland, Dublin
Funding Statement
Year ended 30 September 2003
NOTES TO THE FINANCIAL STATEMENTS - continued
16 Deposit on student residences
At start of year
Interest
Transfer to capital reserves (see note 20)
At end of year
2003
€000
2002
€000
6,227
62
(3,115)
5,739
488
-
3,174
6,227
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
2003
€000
2002
€000
13,298
1,886
1,014
579
4,236
7,805
1,784
25,543
288
2,884
1,010
509
56,421
3,106
171
63,508
2,395
82,059
104,378
2003
€000
2002
€000
138
246
34
240
142
246
31
-
658
419
38
University College Dublin National University of Ireland, Dublin
Funding Statement
Year ended 30 September 2003
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
Academic fees received in advance
Other creditors and accruals
Internal balances:
- Unexpended approved allocations
- Departmental funds and ancillary services
- Trust fund
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 at start of year
Amortisation to revenue account for year
Amortisation at end of year
Amortisation - leased assets
Opening
balance
€000
Current year
movement
€000
2003
€000
2002
€000
19,121
17,501
23,369
22,862
15,544
11,655
20,740
21,742
16,760
20,552
-
5,695
23,132
145
120,165
98,653
Closing
balance
€000
2002
€000
201,573
22,660
108,509
4,667
2,395
655
(8,294)
7,668
18,450
1,562
711
191
193,279
30,328
126,959
6,229
3,106
846
201,573
22,660
108,509
4,667
2,395
655
340,459
20,288
360,747
340,459
(97,835)
716
(18,151)
-
(115,986)
716
(97,835)
716
243,340
2,137
245,477
243,340
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
2003
€000
2002
€000
At start of year
Additions during the year
16,825
2,786
11,490
5,335
At end of year
19,611
16,825
Of this amount €16,198,433 represents accumulated reserves generated by Phase 1 and Phase 2 of the student
residences, which under the original financing agreement have to be set aside as sinking funds. The purpose of these
sinking funds is to generate sufficient funds to acquire full ownership of the student residences at future dates.
39
University College Dublin National University of Ireland, Dublin
Funding Statement
Year ended 30 September 2003
NOTES TO THE FINANCIAL STATEMENTS - continued
21 Restricted reserves - continued
The balance €3,412,488 represents reserves to fund the acquisition of the Institute for the Study of Social Change at
a future date.
22 Revenue reserves
2003
€000
2002
€000
At start of year
Surplus for year
Transfer to the strategic initiative and innovation reserve
1,286
495
(191)
1,126
350
(190)
At end of year
1,590
1,286
2003
€000
2002
€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/(increase) in debtors
Decrease/(increase) in stocks
Increase in creditors and accruals
Surplus on ancillary services
Net cash inflow/(outflow) 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 October
2002
€’000
495
(2,835)
18,151
(18,151)
(191)
22,319
(241)
21,493
711
350
(2,918)
10,152
(10,152)
(190)
52
(57,402)
42
10,588
142
41,751
(49,336)
Cashflow
€’000
At
30 September
2003
€’000
34,586
(6,227)
-
33,629
6,227
(28,831)
68,215
(28,831)
28,359
11,025
39,384
25 Approval of the financial statements
The financial statements were approved by the Governing Authority on 21 March 2006.
40
University College Dublin National University of Ireland, Dublin
Reconciliation with Funding Statement
Year ended 30 September 2003
University College Dublin
National University of Ireland, Dublin
HEA funding statement and reconciliation
Year ended 30 September 2003
Reconciliation with funding statement
41
University College Dublin National University of Ireland, Dublin
Reconciliation with Funding Statement
Year ended 30 September 2003
RECONCILIATION OF HEA FUNDING STATMENT WITH CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED 30 SEPTEMBER 2003
Consolidated
financial
statements
€'000
Subsidiary Unincorporated
companies
ancillary
activities
€'000
€'000
GAAP
adjustments
HEA funding
statement
€'000
€'000
INCOME
State grants
Student fees
Research grants and contracts
Amortisation of deferred capital
grants
Other operating income
Interest income
114,353
90,207
32,076
-
-
1,835
(10,924)
2,656
116,188
79,283
34,732
8,467
29,827
1,512
44,837
-
14,283
-
9,684
(79,666)
1,323
18,151
9,281
2,835
Total income
276,442
44,837
14,283
(75,092)
260,470
Staff costs
Other operating expenses
Interest payable
Depreciation
175,590
77,998
961
18,550
658
43,775
93
5,660
8,200
1
-
(16,403)
(54,565)
(51)
(492)
165,505
75,408
911
18,151
Total expenditure
273,099
44,526
13,861
(71,511)
259,975
3,343
311
422
(3,581)
495
EXPENDITURE
Surplus for the year before taxation
42