Cniversity College Cork National University of Ireland Cork
Consolidated Financial Statements
Ycar Ended 30 Septemher 2004
lninrsity CoIlegt Cork CHllsolidated Financial Stattlllellts 21104 arional Cniversiry of Ireland Cork
COTETS
Page
HUORARY TREASURERS REPORT
ST- T[1[T OF GOVERNING BODYS RESPO~SIBILlTIES
IDEPE~DET AlDrrORS REPORT
STTEllElT OF ACCOLNTlNG POLICIES S 1
Cc)SOLIDATED I1COME AND EXPETDITURE ACCOUNT 11
COlSOLIDTED BALAJlCE SHEET
COSOLlDxrED STATEMENT OF HISTORIC COST SURPLUSES AND DEFICITS
5TTEMET OF TOTL RECOGNISED GAINS AND LOSSES 1 ~
CONSOLIDTED CSH FLo STATEMET 14
NOTES TO THE ACCOUNTS ] 30
HE Fl~DlNG STATElvlENT AND RECONCILIATION 31
lninTsit~ College Cork atiouallniversit)middot of ireland Cork
HOORARY TREASCRERS REPORT
Format of Accounts
For veraJ Years the financial statements of the Ul1lcTsnies have been prepared on a tailor-made basis agreed between the univcrsitIes and the Higher Education Authorin LHpound) FollowlIlg detaded consultatlon with the HEA and the Cl1lrtroJicr and Auditor-GeneraL It has heen agreed that th published finanClal ~tatements wilL from the vear ended Ie September 0(3 he prepared on the hasis or Generally ACC(1uming PrinCIples (GAAP) and these Clre the ~tatcmcnts that are now appended The previous hasis will continue to he used to prepare a HEA Funding Statement lC
a lnanlUl report whIch reflets the fundmg requIrements of the untverslles
There are Slgt1tilcam differences beteen the tW(l formms of finanCIal statemems Under the Funding Statelllem arr~lllgemenL II was agreed that a proportion of fee IIlcome (related to economIC fcc income from non-FU swdents and fcc lenes paid bv ail students) was treated as capltalmcome W be used for deC~lopment purposes and not IIlcluded in the recurrent mcome of the Uniersit Unspent depanmental balances were previoush accrued 10 expenditure hut under Ci--P are treated as a reduction in expendllure Certain non-recurring lIlcome eg arismg on sale of land l~ treated as 11~ll11e under CiAv) There are also SIgnificant differences 111 the treatment relating 10 depreCIatIOn and amortisatIon of capllal recelpls A number of other mmor differences in treatment also anse
The net result will tend le be that under GAAP the surplusdefiCIt s1uation will bc more advantageous than 111 the HEn FU1dmg Statement but the latter more accurately refkcts the lJ11lVersllYs funding requirements
Current Account
Thgt out-tum for the vear on current account is a dcficit of f2646m While this deficit IS histOrIcally very large It I~
slgmficantly better than had been forecast by the UniversllY to the BEA following the Govemments unprecedented dC~lslOn to freeze umverslly recurrent grants in 2004 an Issue I highlighted in my previous report Under the Fundlllg Swtcment basis th defICit IS euro5R92m mclusive of a provision for the impact of recent employment legIslation on the PrC1ISlon of pension benefit for contract staff amountmg to EA4m the funding of thIS amount is the subject of olJ-gomg dISCUSSIons with the HEA This leaves the remaining fundmg deficit at approXImately fl5m some one million eun less than had been forecast The proJslon for pensIOn benefll for contract staff III the GAAP financial statements is E6035m dll to an mcrease in the rate of contribution required which was IdentIfied after the Funding Statement had been approved The aprarel1tly better out-tum under GAlu is for the reasons outlllled above including the availability of a n(m-re~~urring Illcome item lf E2649m arising on the sale of lane
In-ome at f 133m shows an mcrease of II06~o on the prevlou year ExpendIture at euro IS 9m represents an IIlcrease Llf 11 ~( D accounted for in pan by pay and other innation but also arises as a consequence of continuing devclopment suh as the progression of ne programmcs III Nursing Pham1Glcy Occupational Therapy and Speech amp Languag Thrapv
Capital Expenditure
Enhancement to thegt physical estate of the University continues to grow apace with th major building programme and equipment acquisilJon resulting 111 an Illestmelll ofell 86m lprevious veal E6ml A total of (5047m was reeivcd dunng the vear in the form of capital grants The FlEA contributed C7 21 m The balance of f2296rn was provided 1 other funding agencies and benefactors
Thc expenditure reflects the investment ID tht MedICaL Therapies and Nursing buildings on the Brookfield site which I hJC alread mClllC1ned as well as the Environmental Research Institute building the completion of the Glucksman Art
pWJect and the wint acqmsition of the irish Distillers SHe with the MerC University Hospital (Cork) Limited
Ctpltal expenditure continue5 to rely heavily on non-State fundmg In splle of the publication of the Kelly Repllr on U11lversIt capItal needs little or ill new building proleet fundmg hus been made available l1 spite of the strong case made in the Kelly Report Of mawr eoneem I tbe IJck of a Governmcnt deCIsion to finalise fundlllg for the InfonmlllUn Technohgy buildmg planned for the Greyhound Track itc on cstem Road
lt~ tIm ~middotontexl the U1llverSIl contl11ues tll bcnefIt from the fund-rals1l1g activities of Cork l]11lersity Foundauor Lm1Hed Once agam I express the LmerSli apprceiatJ(l] fur this 8UPP()r hich is vllal for the contllluin)C essentIal
development of Its infrastructure
lniersiry College Cork atilmal Lniycrsity of Ireland Cork
HOORARY TREASURERS REPORT
Start Gnlllt
III the ear under rCle State Grant contributed f-24i-6m a~ agall1st f7(gtCl5m in the preious VeaL Tbi reflects a
nKrt ll1creasc of 13 reilccllng tllc cxtraordlllar dcci-)(lD tn freeze cre State Grant in 2004 State Grams no clntnbutc ()8 orLnivers1ty income as against 3696 in the prejous vear
Fees PoJitY
Fcc ll1come no stands at f63445m and represent 2974deg of IOta incomc PrelOUS year were (3 79m ~llld 20 ~Ro IJ lnd-r the GovemIl1ent~ free fee~ inilial1Yt 11105t of the fees In r~spect of full-1inle undergraduate student trl1m Fe coumnes are paJd fClr by the State
maJor rccommendauon in the OECD report on Irish third ce1 education commisslOned by the Goemment and publtshcd 111 20(l4 ad(lcates the re-lDtroducuon (lj fees to be paid by students as a means of ecurlllg much needed addltwllal fundmg [or the univcrsJlie The Government has decided not to do so
Research income
Once agam I am happ to report furtber success on the generation of I11come from funded research grant~ and contracts Under the G-p convention research Income is reponed as recurrent Income exclusive of amounts received to be expended on equlpmenL The income figure for the year under reie is f4750 I111 or 22270 of total reCUlTent lllComc IprclOUS year figures were f41303m or 215 I ~l
TIllS ery satisfactory outcome is due (l the diligence and dedicalJon of large numhers of academlc staff who as pnncipal investigators generate this mcome Such income is no earned on a seriously competitive basis UCC has been sll1gularly successful in the competitive awards under the Programme for Research in Third Leel Institutions (PRTLl) and Science Foundation Ireland (SFI) programmes
I referred III my previom report w the slgl1lficant development arising on the establishment of a Centre for SCience Engineering and Technologv (CSET) under the aegi~ of SFI and the involvement therein of an indigenou~ spm-out c(mpany Alimentary Health Lll111ted this project continues to gro successfully Another more recent major
declopment is the secunng of funding suppol1 from SFI for the restructuring of malOr research functions preloush earned (ut under the of the NatlOnal Microelectronics Research Centre and of several academic depal1ment mcIudlllg Physic~ Electrlcal amp Electronic Engineering and IVllcroelectronic Engineering under a new organisationa structure Tvndall iational lnsutute
)cnsiuns
PensIOn costs are now a malor lssue in the economy generally and the university system 1 no exception The UCC
Pension Scheme in defmed henefil schemel whlCh applies to mosl stall is partIally funded There is a separate defined comnbutlon scheme for contract stafT The funding sltUallOn is thc subject of on-going d1scussions between the UlllersIles and the HEA In thIS context also the Issue relallng to the ccst (r pension proision for contract siaff pr(lided for II1 recent employment legIslation is of maJor conccm
In the ltlCCc)lll1ts under rCmiddotle there is for the firt ]111C a requlremenl to II1clude a of note the total hability of ~l
pen~wn fund calculated in a speClfic a as reqUIred ov Financ1al Reporting Standard 17 (FRS i i~ lth nwsl pellSlOn funds and pamcularl since the UCC ~chel11e IS a pal1ially funded one a significant deficiency is recorded HceVcT it must he noted that the partlcular method or lakulalJon rcqUlred FRS 1 - tend (l use antiCipated rate~ of rGlUm on penswn fund mvestment whieh arc coniderably lower than actually rcaltsed
Th iue of pensIOn fundmg will contll1ue ( be dlscusscd ith the H EA
The Future
The success of UCC in resear2h fundmg takes pla~e III the contet oj a huge llKreasc ]]l Stat lllestment oer the last
ears under the aegIS of the HEA and SfI fillS increase in hmdmg 1 m stark contrast to the pauett oi fundmg rlf recurrent purposes ThI dlsconnect I dinlcult to understand In the shOI1 term II means that the ll1creastd resc aClllt ansmg 011 liCCs success piaus huge demands 011 the Cniverils inadtquare mfrastructurc In the longer leTn
Luinrsity College Cork ational tni(rsity of Ireland Cork
HOORARY TREASLRERS REPORT
till un~ati~fatCry state of afralr~ lhreatem 0 damage the reqUIrement to pwdu2C young res~arehers w staff the future
re~ar~i1 need~ of the economy
I am ~Iare that there are on-golllg diSCUSSIOns takmg place between the uniersities and the State agencies 111 an cffon 0
~eure the neccsary funding already advocated by the Kelly Repon and the OEeD Report I referred tel above It I
onh way of a PC)SlllVe reponse (1 these ll1ltiaties will Ireland be able l0 develop the ul1Jersny system Jl needs to
sUIPClfl the need of our future SOCiCl)
In the meannme I am confident that III spite of the serioU5 finanCIal SltuatJOll now pertaining UCC will be well (1
It wk 1I1 suppDning the economic cultural and SOCIal dCHJopment of lrish S(CJCty~
Dennot 0 l1ahone l-IOI10ra Treasurer
Juh 2006
t niwrsin C011lt(1lt Cork ational tniYersity of Ireland Cork
S1TpoundIpoundT OF GOVERIIIG BODYS RESPOSIBILlTIES
The Ci0C11mg Bdy is required to comply iilb the Umvcrsitics Act 1QCl( and to keep in such form a5 nWi h ~pproved 11 t(darls um ArdOideachas all proper and usual lecounts of mOlle rccIvcd and expended by II
In preparing th0se accounts he G(iemmg Bod is required lc
bull s1ct suitable policies and then app them wnsIstcntly
bull 111ake Judgements lnd estimates thal are reasonable and prudellt
bull dIsclose md explain any matcnal departures from appk~able accC1ullting standards and
bull prepare the financial statements on the gCiing C0nCefl] basis unless It j- ll1appropnatC l(l presume that the lniverll will continue m (iperation
The GOcTnmg Body is responsible ror keeping proper books of account vrllch dIsclose with reasonabk accuran at any tilll the finmeial posItion of the UnIversIty and which enable l W ensure that Its fmancull statements comply WIth the ll1lrsities Act 1997 [he Statement of Recommended Practice on Accounting in Hlghcr Educallon InstltUllOnS and are prpared m accordance wIlh accounting standard generally accepted 111 Ireland
The Governing Bod i responsible for ensunng that the busmess of the University is conducted ill proper and regular manner and for safeguardlllg all assets under Its operatJOnal control and hence for taking reasonable steps for the pnYemion and detectlon of fraud and other irr~gtgulantles
Deloitte Dcicltte amp T()(lC~e ChJrtereu At (ountan) amp Resistered Audno~)
IDEPE1DENT ACDITORS REPORT TO THE GOYER1I1G BODY OF CiIYERSITY COLLEGE CORK
e hae audited the financial statements of unJcrsJty College Cork for thc vear ended 0 September 20(14 hich compnse th consclidated income and expenditure account the balance sheet of the Ul1Iversity and of the LJJllversJty and its sulJS1diary undertakings (the Group balance sheet) the consolidated cash flow statement the statment of total recognised gains and losses and the related notes 1 w 3 1 These finanCIal statementgt have been prepared under the accounting policies set out therein
Tl115 repon is made solely to the members of the Govemmg BodY of LJniversity College Cork as a body OUf
audn work has been undertaken so that we might state to the members of the Govemmg Body thos matters c state to them in our auditors repon and for no other purpose To the fullest extent permitted by law we dc not accept or assume responsibihty 10 anyone other than tbe member or the Govemmg Bod for our audit work lor this report or for the opinions we have formed
Respective responsibilities of the Governin~ Body and auditors The Govemmg Bodys responsibility for preparing the annual repon and the financial statements 11l
accordance WIth the umverSItles Act 1997 and wah 8ccountmg standard gencrall accepted Il1 Ireland l set out on page Il1 the statement of the Govemmg Bods responsibilities
Our respomibilit IS to audit the financial statements in accordance WIth relevant regulator requirements and lUdltll1g standards Issued by the auditmg Practices Board applIcahle in Ireland
We repon to yOU our opimon as te whether the financial statements gIve a true and i1ir ICW and are pwperiv prepared Ve report whether the finanCIal statements prepared in accordance with generally accepted accountll1g principles have been properly extracted from the books and records of the Universlv Ve state whether we have obtallled all the information and eplanatlons we consider necessary for the purposes of our audit
Basis of audit opinion We conducted our audJl II accordance with audltll1g standards Issued by the Audning Practices Board and generallv accepted in Ireland An audIt ll1c1udes examinatlon on a test basls of eVIdence releant to the amounts and disclosure m the finanCIal statements It also includes an assessment of the slgl1lficant estImates and judgements made b the members of the Govemll1g Bod III the preparation of the fll13nclal statements and of whether the accounting pohcies are appropriate (l the Universit circumstances cOl1SIQently applied and adequately disclosed
(COJ1linued on rhe lieXI page
MernJ(f Deloitte Touche Tohmatsu
Deloitte
t plannd and re~forrnd our audll so as W ontam al] tht mfCrn1G110n and explanatloflS whIch we
COflSldered necessar) m order [( provide u with sufficient cYlcience 10 rcaonahle assurance that the rinancxal statement 3re free from mmenal misstatement whether aused h fraud or other megularity 0
~ITOr 1n fOITmng our Opll1lOD we also evaluated the oyerall adequac) of the presentalon of informauon Hi [h~
financIal Slnemenrs
Qualified opinion arising from non lomplianc( with alcouIHillg and disclo~ure requirements of Statement of Standard Accounting Practice 24 Aclounting for Pension Costs
Til Cniverslt has not complIed with the accounllng and dIsclosure reqUlremellls of Statement of Standard
A~counl1ng Pral1cc 24 Accoummg for PenslOn COftS pamcularh m respect of pension supplementation 111
respect of mcreases III penSIOns payable It IS not pracllcable to quantify the impact of this non-complwnce
lll the reponed finanCIal position of th~ limversllY
fo~ the failure [e provide the dIsclosure aud the adlustmel1l that mIght have heen found tll be
necessary [( compiy Ith the accountmi2 and dIsclosure reqUIrements 0 Stllemem 01 Standard Accountmg Pracuc 4 in ou opimon the finanCIal tatements on pages 1 [(1 30 a true 3nd fair viev 0 the stale of Gflai-s of the UIllverSl and the Umversny Group at 3(l Septemher 2(l(i4 and of the deficit of the UmverSl Group for the year then euded and han heen prepGred lJ1 accordance WIth generally accepted accountmg
Dnnclples
- have obtamed all the mforrnanon and explanatIOns Wt consider necessary for the purposes of our audlL
III our opInIOn proper book of account hae been kept by the Ul1vcrsll The halance sheCI of the tll ersit 1 111 dffcemCll WIth the hook~ of account
Deloitte amp Touche l Lapp (lUi1V
Cork
Dare
Lninrsit~ College Cork ational Llliversity oflrcIand Cork
STA TElET OF ACCO(TIG POLICIES
The ~l=niflca1l accounting poiJies adopted b~ the UI1lVerSI are as f(lbws
Basi~ of preparation The fil1Jncwi statements have been prepared in accordance Wilh accounting standards generally accepted in Ireland md the SWltmenl of Recommended Praclice-Accountmg for Further and Highcr Education lnstltUlions ccountmg swnci1rds generally accepted in lreland in preparing financ131 statements a true and fair vie (Ire thOse publihed h the lnSmlc of Chartered ccoumants in Ireland and Issued hy the Ac~counl1ng Standards Board
ccounting convention The aCoullts hlve been preplred under the hIstorical cost C(11vcntwn modIfied h the reyalu1tion of certam land and hUlldmgs
Basis of consolidation The consolidated financial statements l11clude the li111verSl and llS suhsldlary undertakings and other undertakings 1ll
hi11 the Umverslt has a financial InteresL as indICated III nOll 11 The results of subsidianes acquired or dIsposed of dunng the penod are included in the consolidated Income and expendllure account from the date of acquisition (lr up te th~ dale of dIsposaL lntra-group sales and profits are climinatltd fully on consolidatlon
in accordance with FRS2 the actiities of the Students Umons have not heen consolJdated because the University docs not control those aCllvIlle The financial statements of Cork l111ersiry Foundatlon Limited Unicrsity Cork Ptnsion Fund and Trust Fund arc also excluded as they are not controlled by the Ljmcrsl
Rccognition of income Rc~urrent grants trom the Fhgher Education Authority an recognised 111 the period in which they are receivable
NL)n-rCcurrent grants from the Higher Educallon iuthority or other bodies receied in respect of the acqmsllion or -l]1struellon or fixed assets are treated a deferred capital grants and amonJsed III lllle with depreciation oer the life of thtmiddot asets
Income from research grants contracts and other se1ices rendered is Illcluded to the extent of the completion of the contract llr S(1ICe conecmed TillS is generally equivalent to the sum of the relevant expcndlture incurred during the year and any related contrihutions towards ocrheld costs Allmcome from sllOrt-tcrm deposas IS crcdlted to the income ll1J expendnurc account 111 the penod m wlllch 1l 1 eamed
ln~omc from endowments and donations IS l11cJuded to the extent of the relevant expendIture incurred dunng the yeaL together wah any related cnntributions toward overhead costs
Foreign currency translation TransactIOns denominated m foreIgn currencies are recorded at the rate of exchange ruling at the dates of the transaction Monetary assets and ilabilities denominated III foreIgn currencies arc transl3ted mtll euro eJlher at vear end rltes OL where there are related forward exchange contracts at contract rates The resultmg difference Ire dealt WIth in the determmalOIl of income and expenditure for the financial year
Tangible fixed assets
(a) Land and buildings The l)niverslty buildmgs arc valued at deprecIated replacement cost Land and buildl1g~ arc stated III the balall~c Sh-Cl at aluallon 011 the basis of depreciated replacement cost as they are specialised buildings and therefore it I~ not appropnate to value them 01 the basis of open market value The last aluarioll was carrid out on 3(1 September 1OQ-l The tniverlty has fixed the value of the Ind and huildlf]g~ a at 3( September 1994 as tIllS was the first veal of the implementatloll of generally lccepted accountng pnnciples in resped of Fixed ssets m presenting the fmanelal srawmcJ1Is of the lJi11versl1y Land and buildings acqulled SHlCC the vaiuation an included in the balance sheet at c(s Freehold land IS not depreciated FreelKtld huddings are deprecIated oel their expc~ted useful cconomlC hit Il the University of (1 ycars
llliersjt~ Colle Cork ationaI CniYersity of ireland Cork
STATEIE1 OF ACCOCTING POLICIES - coutinued
Tangihle fixed assets continued
(a I Land aud buildings - continued
here land and buildmgs are lcquired lth the ud of specIfic grants they are capItalIsed and deprecIated a aboe
The related grams are credIted Q a deferred capltai grant account and are released ((1 the IIlcomc and expenditure
account over the expected useful eCDnomlC llfc of the related asset on a basis consIstent with the depreciation POlICY
Fmancc costs hKh are directly attributable w the COl1structlOn of land and buildings are not capitalised as part of th cost ([ those Jssets
nlew for impJirment of a fixed asset is carned out If ecnts or changs in clrcumstanccs indIcate that the amount of the fixed asset may l1l)t be recocrable
Buildmgs under construction are accounted for at cost bascd on the Yllue of architect~ certificates and other direct ClqS mcurred to the financill velr end They are not dcpreewed until th(~ arc brought mto use
(ill Equipment 111 eqUlpment IS apnalised at cost Clpllaiised equIpment i depreCIated over Its useful economIc iife as fllows
Computer equipment 3 year~
Equipment 5 ye-ars
Where equipment is acquired with the aid of specific grams it is capitalised and depreCIated m accordance Ith the abo( policy with the related grant being credited to a defened capnal grant account and released to income and expendlfurc account over the expected useful economic life of the related equipment
Financial assets hxed asset Illvestments that arc listed on a reeogJ1lsed stock exchange are canied at market value The II1vestment 11 the
L lllverslfY T echnok)gv Centre PartnershIp has been revalued dunng the year to thc value u[ the tJniversl s share In the
plftnershlp Those that are not listed are canied at hIstorical cost less any proVIsion for impainnent in theIr value
Current a~sel in(~st1lents are included in the baiance sheet at the lower of their original cost and net reahsable value
Stocks Sto-b are Slated at the lower of their cost and net realisable alue -here necessary proVIsion is made for obsolete
skw mOing and defective Stock Expenditure incurred by tbe University on booki and consumable stocks finaned
(rc1m recunent grams are charged to the Income and Expenditure JccounL
Taxlltion -S an exempt charity thc University is not lIable for Corporation Tax or Income Tax on an ofns chantable actIVItIeS It b regIstered [or -alue Added Tax but smce the supply of edu~atlOn is an exempt acmity on whIch no output tax IS -harged Il IS unable to recover input tax on the maJonty of its purchases
Tradmg JclJvllles undertaken b the Cniversity an admllllstered through IlS subSIdiary compames whle11 as commerciai
(lrganisatlOns are hable to Corporation Tax
Liquid resources LIqUId reSlurcs include sums on short-term deposits with recugnlsed banks and buIlding societies and gocmmcm
SCUflllt=
Provisions ProvlslOns are recognised when the U1Ivcrslty has a present legal or eonslruclje oblIgatIOn as a result of a past event I 1 probable that j transfer cf economic benefit i11 be required to settic the oblIgation and il relIable CSlImate can be made
of the amount of the obligatIOn
tninrsity College Cork alional Cniersity of Ireland Cork
STATEIEiT OF ACCOl-TIiG POLICIES - continued
Pensiolls The CnlrsJ[ operates a diined benefit pensIon scheme Ililh assets held in a separately admll1islered fund The b~SIC rCl1rCmCDl pensions of Cniversit) staff are funded by comnbutiom 1(1 the ul1Iverst PensIOn Fund (the penion fund I
a a pre-determmed rate of penSIOnable pay Increases m baSIC retirement penSIOns hlch are pltlld through the pm101
fund arc repaid to the pensIOn fund by the umversity The penSlOl1 fund is valued acuarialh once III every three ears TiK las such alUatlOIl was carried OUI as at i October 2004
Pension benefits for ccnain other employees are met b pavlllems (1 a defined contribution pension scheme
CClllribullOns (ire charged to the income and expenditure account III the veal in willch th( fall duc
lllinrsity College Cork ational Cniversity of Ireland Cork
COSOLIDATED ICOME AD EXPEDlTCRE ACCOFT Year Ended 30 September 2004
1oles
Consolidattd 21104
pound000
Consolidated 2003
(OOll
Income
Srat rants
SlUJ~nl f~
Rs~arch grants and contract
AmortIsation of deferred capital grants
Olhr lpcrating income
Inters ll1ome
Ishy
4
~A~6
63-+4 4-01 II 1~Ibull ~ ___1
1831 7
7(0
~--3-q
11303
12AXO Q430
Total income 21 ~3(l~ IQ~ri~
Expenditure
Staff OSb
Olbr operallng expenses
DepreciatIon
Total expenditure
Deficit for the year after depreciatioll of assets before taxation
rJXJtion
Drfieit for the year after depreciation of assets and after taxation
Th~ d~jicit for the year aroe soleh from contInuing opcratiom
The fInancial ztatemems lln pages 8 w 3( were approvd the- G(YCn1111g Body on 1(l October 2006 and wer SIgned (l1
Its hehalf by
Signcd Professor Wrixon Dermot OMahoney Prcsldent j-llt)norar Treasurer
1
lnhersity College Cork ational blhersity of Ireland Cork
COSOLIDATED BAlACE SHEET 30 September 2004
otes
Consolidated
2004 CO(lO
2003 COOO
lnilrsit~
20()4 COOO
2lHl3 coou
Fhed assets
1 anglh Ie asset
Flnanci3 LSScl~ 10
11
Current assets
Swcks 12 314 351 291 3~)
Dchwr~ 1 L 32deg(11 1wCJRx 41206 J9~ J2
Ca~h al bank
3330- 5 ~37 41497 469]
Creditors AmOUlllS fallmg due wnhm nne
year (10UAX6) (76923)
et current liabilities
Total assets less current liabilities 301307 25C)6c)7 25756 114900
Creditors Amoums falling due after nne
vear l=
0 fC et assets 1(1)gt ll~flt 4 CHi4 A
123552Deferred capital grants
Represented by
Revenue rescrvcs C) 1l2396 (9750)
ReitJumion reserve If)
Total
The financwl mncmenb on pages ~ 10 3(1 were appr0cd bv the GOcming B0dv on ] () OCC1ber 20C6 and wcre OIl
I1s hehall
SIgned Professor Wrixon Dermot OMahoney Prcsidcnt Honorarv Treasurer
lninrsity College Cork ational lniycrsity of Ireland Cork
COSOLUHTED CASH FLOW STATEMENT OF HISTORIC COST SLRPLlSES AD DEFICITS Year Ended 30 September 004
h I~ 11) possihle to determine the difference hetween hlstoncal ost depreCHllion and the actual charge due w the facl thal
th 111ston~al cost infomlation IS not aailahl
STATDIET OF TOTAL RECOGISED GAIS AN)) LOSSES Year Ended 30 September ()()4
2004 fOOO
2003 fOOO
Defill all COlll1l1UIIlg operatIons after depre~lalon of assets at aluali(lfL
(t IsseIS and laX (2646)
Unrcdlsed surplus on revaluation of financial assets
Ttllal rcognised gail15 relatmg 10 the year
Reconciliation
126lCJO
gams (losses) for the year
Closmg resenes
lniHrsiry Colegt Cork alional Cniersity of I relund Cork
COSOLIDATED CASH FLOW STATE]lElT Year Ended 30 September 20(14
et cash outflow from operating activities
Returns on investments and seIleing of finance
expenditure and finanial mcstmem
e( cash outflow befon financing
Fmll1cmg
Decrease in cash in the period
Reconciliation of net cash flow to movement in net fundsdebt
Decrclse in cash m the period
Ctsh (luttlO from mcrease in debt and lease financmg
Change 111 nel debt resultlIlg from cashflows
on ash changes
(lemel1l 111 net debt in period
Cl debt at i October 2003
et ckbt CIt 30 September 2004
otes
24
21104 E()()O
(761)
( 18680
( 390U I
26
26
(341021
(0361)41---shy
lninrsity College Cork ational [niersit~ of Ireland Cork
ons TO THE ACCOCTS
Stale grants 20()4 2003 COOO COOO
)t1 grams allclcatcd for recurrent pllrrO~CS
Thc al-gt( gLlOt mome wa~ neclved from the Higher Educltlon Aulloril anc Ihe DcpanmeIH of J-kJllh amp Chldrell
2 Academic fees 200-1 2003 COOO CO()()
-cadcmic fee inccme
Total fces pale hy o[ on behalf of mdiyidual studems
- lOla ofC5073-lO 2003euro3084g(l23) lIlcluded in aCiJdemic icc income was pJld dIrectly by the lllgher Educalon uthorilY
Research grants and contracts
European Umon InduSlf
Other
-1 Other incollle
Other rental l11C(lme
Funded pClst lIlCOll1t
SlUdent rsidenccs 1OC0111C
Proflt on compulsory iJcqUlsition oj lands Profit on sale of lands Leisure facilitie InCOme
Demal IlOSPlliJl I1come
Other income
= Interest income
Inttres mcome
2()0-1 2U03 fOOO coon
3 i 078 023
3S33
2()0-1 2003 pound000 ClWO
19 ~()~ 3U5
391()
l(1Ci
(I(i
2213 X6(1
2305 2(
laquo242 UOCi
1 Sl i~
200~ 200J COOO COOU
6
tlliwrsi Colle[c Cork arional Lnhersity of Ireland Cork
OTES TO THE ACCOFTS - continued
Staff costs
rh~ 3Crage veekh number of perSClJ1S (mcludlllg senior jwsl-h(ldcrs) emploved by tht
cpresscd as full-urne equlalcm was
reahing and rsearch
TechmcJI
entral adnllnistraIon and serices
Other
Salaries and wages
Social welfare costs
Other pension costs
Other operating expenses
Consumables
BeaL light aler and power
Research consumables
R(palfS and general mailllcnallce
Audn and professional
Rent and rates
Other expenses
Other opcratmg expenses in~1 ude
Auditors remuneraIon
EXlcmal audit
Other seryices fro111 external audit
during the
UH4 umber
201)4
(000
119538
666
14LA7C)
2(1)4
(000
15A7 4 2603
1(L933 376
138 j
L531
2004 [000
cq
IF
2003 umber
1246
63
2003 fO()()
]05379
200] C(lIiO
2003 COOO
jll
1U-
14312
lnhersin Colle~( Cork arional lniversity of Ireland Cork
OTES TO THE ACCOtTS - continued
S Taxation
taXJllOll charge arises as the UlllvCrSll and il~ principal subndJar companies are exempt chantle and are not
hable for corporation tax or mcome tax on any of its charitabk actlvitles
I) Deficit on cOlltinuin~ operations for the year 20(14 2U(J3 [(IOU COOO
The deii-l on continuing operalJons for the vcar is made up a~ flllows
UniC~rslfS deficit for the vear
Surplus generated bv the subsidIary undenakmgs and transferred to the Univcrslt
Total
1
I uinlsity (olltj( (olk ~atiollall illi(rsil~ 01 Irdalltl Cork
NOI ES TO TilE A((OINTS
10 Tal~ihl( fix(d ass(ls
(( )NS()f J lgtAnl)
(0lt1 or valnation
At t ()cohcr200)
Additiotls
At
Is 311 21104
i)epncialioll
At 1 Oct(hcr 2(J03
(I Cd
tl) 2(11)1
Nrl hook aim
t I letobe WOJ
It Ill 211()4
fOlllillll((1
Land alld
hllildill~S
CHon
I 7ti6
57(iY
((l3)
379]
(() Ll
273I1U3
27350X
COIIIJlIII(middotr
(qlliplJI(lIt
(000
2(d~59
i23
1 JJ
2J 425
71 II
1434
4X39
EqllipllltlIl
COOO
iltU172 6+31
30514
9Y)()
20]X8
17331
Assets ill ((HI 1St or
COllstnldioll
ClUW
151)9
54512
109
Total
CIIOO
4IltX() 7Ui7
l) 1Yh2
IlI121
II
312(118
3(1)30
LamJ alld huiltiillll alld cquipnlCllt IIKludc assets valucd in Iljl)4 (In a dCpleCI1tet 1Cj111ccmcllt cosl hasis fL1 1lIOJ()) respectivelY land alld huildillils ami lssel in course (II cOllstructi(lil includes UX]X I IJ(IO
include C 51ltJ07()O() (lOll CJ1)I(lI()()()) in relatioll tn land and tile ACC(1l111tillg Standards Board Iliese land ami
ftilcsc buildillls IS that tlte
( ) nlccr oUTgt nUI(( I (~(() C127721J IO()) and CI 1 IlIeH 10 (2()(3
(11 Ii ecl(1ld Iaml willch is Iwl
The COlllllwlcial ellce of the trallsactiolls Slln
issued lire salv alld ulllllwtc
tll 1he lam] ami
~
--
- -
~
~
~
-
-=
shy
- = shy~
7
=-= -
Z
7 ~
~ - lt shy shy shy
shy
Z shy
Z
r X r
-
r
-= oJ c
= 0 ~
= -~-=
ti= ~
shy = =
~
~
t= Z
~
51
- Z ~ lt
0
r-~
(J n r--ltIoc r-
x
v ~ r l j r1 r- if
rr
T M rlt
r = j
= -j =
C
shy -
~ v ~ ~
shy shy
- - -
-0
lt - lt )
Z lt
1 0 x T x)C
F n ~
0middot1 r1~~
r -
r~
lt
0 lr ~ r1 n(1
l r~
ltj~
tniVCfsiry College Cork ttional Lniversiry of Ireland Cork
OTES TO THE ACC()l]TS - continued
11 Financial assets Consolid ated
2UO-l 2003 ((WO f(lOO
t nhersity 2004 2003
COOO COOO
InnSlInents at the veal end were held as follovs
( lthcr
3450
The investment in the Lmversllv Technology Centre Partnership ha~ been re31ued during the year tc the 3lue 0shythe Llmycrsny share inlhe partnership as at 31 December 2003
The tnhersity held an interest in the following subsidiary undertakings
Subsidhlry undertakings
Incorporated
Propem ianagement (LeC) Limited
Campm ccommOdali(111 C) Limned
Art Gallery (liCC) Limiled
Brcnard Limited
1ardykc LeIsure (U ce) Limited
At Ie Press Limited
(iivlC Holding~ Limlled
11 Stocks
Consumables
FIlllshed goods for resale
Prindplil activity
Property development
Accommodation rcntal
11 gallery
Leasing or lands
PublIshing
Dornnnt
Interest 0 0
J00
100
100
100
1(lOo
Consolidated
2004 2003 COOO (0110
65
Registered officeplace of business
City Chamhers 4
Cork
limversl1Y Cork Aestern Road Cork University Cork Vestern Road Cork University College Cork Western Road Cork liniversiry College Cork Western Road Cork Crawford Business Park Crosses Green Cork St Kildas Western Road Cork
Clliversity
O()4 2001 [(lOU COOO
36
fhere io no malcnal difference between the balance sheet amount of slOcks and Its replacement cost
13 Debtors
Trad- debtors
Res-arh grants and colllraCls receiabk
nwunts due from suhsldmrv undertakings
Slale gr~ml reciabk
(lther tJJtWIl and s(lcial Illsurancc
Other deotiJrs
C ollsolida ted Llliycrsif
2(104 2003 2004 200 [000 COOO COOO f(I00
S34 -Li06 67U
601 753 6015 j J0(
1~S26 766 12S~6
11 -- 3 f~ 51 t
lJ
~ q()l --l12(j( ~ ~
CnhlIsit~ College Cork ationallniersity of Ireland Cork
OTES TO THE CCOCTS - continued
1-1 Creditors Amounts fallillg due within Dill year Consolidated lnjyersit~
20114 2003 2004 2003 COOO COOO [000 C(lOU
Trad rcdjtor~ 7501 Cl295 (702
Research grants and contracts III advance I(i5 5 1150i 1U5~ -cademic fee~ receied in advance 11(1()4 QOM 110CJ4 ()01gt4
State grant receied m advance 118 I 1535 513~ Bank loans 8 overdrafts (note 16) 3O 39 416 1606 333~
Amounts owed to subsidiary undenakmgs -113 4SS~
Other taxatIOn and SOCIal security -+394 0 41 42()9 SAl (i
Deftrred incJll1e 19(3 9131
Other creditors 8 accruals lOOARA R9~~
15 Creditors Amounts falling due after one year Consolidated linivcrsi t)
200-1 2003 2004 20U3 ((lOO COOO (000 COOO
Bank loans (note 16) ~ 1 - -_-
16 Borrowings Consolidated University
2004 2003 2004 2003 (000 (000 fOOO (IOU
Bank loans and overdrafts
Bank loan and oerdrafts are repayable as follows
III one year or less 3073Q 41 6 8606 33~
O~(Between one and twe veal 221 1693 1ampshy
Between two ard 11 H years 872 (i 104 604Q 3+05
In fiC y~ar or more
TCHal 6360 1 3400( I ~~ ~
ature and Securiry of Borrowings stated tn Note 10 F1Xed Assets hae been accounted for in accordance with FRS 5 The ab[)vc liabilIl16 represent the uhimate lwbilitie to repurchase the assct~ concerned The borrowJI1gs arc secured bv title until the repurchae takes place
lniYlrsit Colleu ( Cork -ational lniversity of Ireland Cork
-OTES TO THE ACCOCTS - continued
1~ Deferred capital grants HEA
COOO
Other grants and
benefactors (000
Total
COOO
C olsolida ted
At 1 October 2003
BuJldmg~
EJuipment
Tota
414 45677 8-31
Cash received Buildmg
Equipment
Tolal
b53-l 153~5 -l U59
Released to income and expenditure
Buildmgs
Equipment
TClaj
1449 )
~
9~3
1-1 ---
) iii _) shy
1L~~~
At 3() Septemher 20()t
B u ild 1111
Equipmem
T pta I
66639
7(91
600 i 9
-09A
I 6-] ~
14UltC)
l ni(~rsit C olieo ( Cork arional Cnhersity of Ireland Cork
OTES TO THE ACCOl1TS - continued
1i Deferred capital grants continued HEA
(non
t niersity
At 1 October 21Hl3
B uil dlllb
Eqmpmem
Total
Cash received
Buddmggt EqUIpment
TOla
Released to income and expenditur( 1 1 7Buildmg )
Equipmcl1l
Total )S3
At 30 September 200
Buildll1g~ 61324
EqUlpmcm Tora (~=5
IS Revaluation reser( Consolidated
2004 2003 (lOO ((lOU
At 1 October as pcr nOle 10) 135940
Reuluatlons or inesrmerm in the penod InOle I 1
t W Serlember
Other gran IS Total and
henefactors (000 COOO
3515 -=37(J
81 2149
4465 7i ~
XXh(1
51627 112951
~65(1
6()
Lnjcrsity 200 20()3
f ono C 000
35040
lniYcrsiry Collegl Cork iarional Llliycrsit~ of Ireland Cork
iOTES TO THE ACCOl1TS - continued
1(J Reconciliation of movcment of reservcs Revenue Revaluation Total reserves reserves
COOO pound1000 ooo
Consolidattd
1 I October 211(0shy 6]90
D(bcll on comlllumg l)perations revaluation
I ( Septemher 20(14
middott I Octoher 2003 13940 126241
Deficll or eommumg operations revaluation
3( September 2004 1RR~]
W Contingencies
The U11lversil from tIme ll time is party to yariow legal proceedings The Offieers of the University havc been mlormed hy then legal advisors that it is not possibie at this time to make a rellable estimme of the finanCIal effects (if an~l of tiles cases
t 3( September 2004 a cO1ll1gent lIabIlity existed in respect of potential Value Added Tax in the amoum of C2 rmbon together with substantial potential imeresl and penalties This potentIa] habilItv was setllc~d in January 006 at a lesser amount and the effect on the Income and Expenditure -ecount is no material
21 Capital commitments Consolidatcd Univcrsity
2004 2003 2004 2003 (000 (000 COOO (000
Comracted for but nO promiddotided 69143
Authorised but not omracted out 18304 i 49]Q
tninrsity College Cork ationa lniversity of Ireland Cork
OTES TO THE AccorTS - (ontillucmiddotd
Reconciliation of consolidated operating deficit to net cash outflow from operating activities
Dilcit on conlJnuing operalJons afier depreciation of assets at valuatlOn Dcpr(clat10n D~fcfT(d apital grants released W income Proiit on dIsposal of tangible fixed as~ets D~rcase m stocks Increase m debtors
Drcflse m creditors
on cash changes lmerest receivable Imerest em Iiabiliy 10 Investors under FRS Increase m invcstment aluation
et cash outflow from opernt1l1g aClivilJes
23 Returns on inwstments and servicing of finance
Other lterest received Interes paid on habihty to investors under FRSS
ct cash inGow from returns on lllvestments and senlcing of finance
24 Capital expenditure and financial illYestment
iurh3se of tangible fixed assets Sak of tangible fixed assets (see note 10) Deferred capnal grants receIved
Net cash outflow from capital expendllure and finanClallllestmcm
2()l4
CIIOO
12(46) 1C) ~ 21
( 11253 ) (64 0 )
(]3006) f~(24)
15 (3011 11)62
11
( 14 361
2004 (000
301 ( 1(1621
7611
2004 C()(l()
S57 70(1
SC)4T
ISoRO
lniversit~ College Cork arional tniversity of Ireland Cork
OTES TO THE ACCOCTS - continued
15 Financing 200-1 (000
Dht due within ant year Drclse 111 shon term hononn~
Dent due lyand one year Increase in long tenl1 borw1I1g
1et -ash inflow frorr financing
26 nalsis of changes in net debt At CashOows Other At I October Non cash 30 September
2003 changes 2004 POOH (000 POOO COOO
C~sh 111 hand and at hank 5 3 9Z l)vcrdrafts
539( (21)5021
Deht due within I year (-US6) 1C)[9 (~37)
Debt due after J vear 62R) (19) (7241 Llabilll to invctors under FRS (125) (24231 i
125 163f()4iTCltal
27 Related parties
Transactions Jh suhsidlanes of the UlllversllY have been eillninated on consdidauon and 11(1 disclosure or these transactIOn has therefore been gIven The Lnlerslty had the following transactIOns with related panics on 1 DeCember 1995 Irish Universitl Student Trust entered into a twent five year lease or AnlS 113 Mac Lemn from Lmverslty College Cork at an annual rental dE44A4J pel annum The trustees oflnsh UnirSH Studem Trust are the PrerdenL Secreta and Bursar and Fllance Officer elf ljmvcrsll Cork
l ninrsit College Cork ationaJ lininrsit~ of Ireland Cork
OTES TO THE ACC01T5 - COli tinned
8 Pcnsions
3 ~ PenSIon for substantiaEy all employees are funded through a defined henefit pension schemelt
The lniwrsl oper3tes a defined henefit penSlOll scheme wllh assets held 111 a separately admmlstered fund The total pension cost w the UniversHy ltas f14J)-4 Q 4J (2003 f12(J]-~13L The Illost recen uctuanul
aluation as undenaken as at 1 Octoher 2004 hy consuting actuanes uS1l1g the attained age methodlt The
princIpal assumptIon used in the actuarial valuatlOn was that the long-term annual rale of return on 1I1vestment would exceedtbe mcrease 111 pensionable earnIngs by 2) The 1ens1On and Trust Funds are not included 1I1
the Balance Sheet hecause they arc funds w1111 a separate COHSlltu1l0n from the general assets and ltabilJtie~ of the t11lerSlllaquo
t the date of tbe last actuaria I valuation the market aluc of the scheme s assets was sufTiclCl1t to cover 9lt
of the accrued liabilitleslt based on currcnt eammgs and also allowlllg for expected future mcreascs m eammgslt
The ul1lversny also operates a defmed contributIon penslOn scheme that covers cenain empl(1yees of the
ul11ersirvlt The assets of the scheme are invested by independent trustees for the benefit of these emplovees
ContributIOns to tim pension scheme for the year amounted to C02(il15 (2003 fJ A4F788I
b Financial Reporting STandard 1- Retirement Bellefirs disclosures
The alual1on of the Superannuation Plan benefits for the purposes of FRS 10 disclosures was based on the
results of the actuanal valuation ~aITlcd out as at 0 1102004 suItably adjusted to ~Onr()m1 to the requirements
of FRS 1- The impact of the penSlOn obligations of benchmarkmg awards due but not vet paid has been
mcluded The financlal assumptions used w calulate the retIrement cbltgatJons under FRS I were as follows
2004 2003
Valuation method Projected Projected Luit Luit
Dicou11l rate ) JlOdeg) )lt50
In118tio11 rale 250deg(1 250middot
Satan 1I1lTeases LO 450deg()
PenSlOll Supplemel1latlon 350l~middott 350o (J
t nhersity Coll(ge Cork gtational Lniversity of Ireland Cork
gtOTpound5 TO THE ACCOlgtTS continued
b Financial ReporrillK Standard 1- Rctircmcnr Bcncfirs discloswc (coltinued)
Th market value of the assets 111 the penSIOn schenk the expected rates of return and the hllgallOns as at 300920(11 togethe WIth the pnor vear arc ShC11 belo
2004 2003 cooo coon
Equities ~ ~5deg iJ 11Q708 800 1~346
Bonds -f ~()(I( 22456 150[0 lfd29
PropertY 65degu ImiddotUP 00( 14330
)Clsh 21 O()~() 2]0
TOW market alue of assets 1GL933 166623
Actual Value of Labilny
PenSlun Deficll
Related deferred tax Iiabiit~
et PellSlOn Llabi hty
Analysis of the amount that would have heen charg(d HI operating profit under FRS 17 is as foil () s
2004 2003 COOO (000
Curren Selce Cost 1710 1
Past SeTyice Cost
Tow Operatmg Charge
Analysis of the amount that would lUlVe been credited to other finance income under FRS]7 is as
follows
2004 2003 (000 COOIl
retum 011 s-heme asct~ 1U104
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
lninrsity CoIlegt Cork CHllsolidated Financial Stattlllellts 21104 arional Cniversiry of Ireland Cork
COTETS
Page
HUORARY TREASURERS REPORT
ST- T[1[T OF GOVERNING BODYS RESPO~SIBILlTIES
IDEPE~DET AlDrrORS REPORT
STTEllElT OF ACCOLNTlNG POLICIES S 1
Cc)SOLIDATED I1COME AND EXPETDITURE ACCOUNT 11
COlSOLIDTED BALAJlCE SHEET
COSOLlDxrED STATEMENT OF HISTORIC COST SURPLUSES AND DEFICITS
5TTEMET OF TOTL RECOGNISED GAINS AND LOSSES 1 ~
CONSOLIDTED CSH FLo STATEMET 14
NOTES TO THE ACCOUNTS ] 30
HE Fl~DlNG STATElvlENT AND RECONCILIATION 31
lninTsit~ College Cork atiouallniversit)middot of ireland Cork
HOORARY TREASCRERS REPORT
Format of Accounts
For veraJ Years the financial statements of the Ul1lcTsnies have been prepared on a tailor-made basis agreed between the univcrsitIes and the Higher Education Authorin LHpound) FollowlIlg detaded consultatlon with the HEA and the Cl1lrtroJicr and Auditor-GeneraL It has heen agreed that th published finanClal ~tatements wilL from the vear ended Ie September 0(3 he prepared on the hasis or Generally ACC(1uming PrinCIples (GAAP) and these Clre the ~tatcmcnts that are now appended The previous hasis will continue to he used to prepare a HEA Funding Statement lC
a lnanlUl report whIch reflets the fundmg requIrements of the untverslles
There are Slgt1tilcam differences beteen the tW(l formms of finanCIal statemems Under the Funding Statelllem arr~lllgemenL II was agreed that a proportion of fee IIlcome (related to economIC fcc income from non-FU swdents and fcc lenes paid bv ail students) was treated as capltalmcome W be used for deC~lopment purposes and not IIlcluded in the recurrent mcome of the Uniersit Unspent depanmental balances were previoush accrued 10 expenditure hut under Ci--P are treated as a reduction in expendllure Certain non-recurring lIlcome eg arismg on sale of land l~ treated as 11~ll11e under CiAv) There are also SIgnificant differences 111 the treatment relating 10 depreCIatIOn and amortisatIon of capllal recelpls A number of other mmor differences in treatment also anse
The net result will tend le be that under GAAP the surplusdefiCIt s1uation will bc more advantageous than 111 the HEn FU1dmg Statement but the latter more accurately refkcts the lJ11lVersllYs funding requirements
Current Account
Thgt out-tum for the vear on current account is a dcficit of f2646m While this deficit IS histOrIcally very large It I~
slgmficantly better than had been forecast by the UniversllY to the BEA following the Govemments unprecedented dC~lslOn to freeze umverslly recurrent grants in 2004 an Issue I highlighted in my previous report Under the Fundlllg Swtcment basis th defICit IS euro5R92m mclusive of a provision for the impact of recent employment legIslation on the PrC1ISlon of pension benefit for contract staff amountmg to EA4m the funding of thIS amount is the subject of olJ-gomg dISCUSSIons with the HEA This leaves the remaining fundmg deficit at approXImately fl5m some one million eun less than had been forecast The proJslon for pensIOn benefll for contract staff III the GAAP financial statements is E6035m dll to an mcrease in the rate of contribution required which was IdentIfied after the Funding Statement had been approved The aprarel1tly better out-tum under GAlu is for the reasons outlllled above including the availability of a n(m-re~~urring Illcome item lf E2649m arising on the sale of lane
In-ome at f 133m shows an mcrease of II06~o on the prevlou year ExpendIture at euro IS 9m represents an IIlcrease Llf 11 ~( D accounted for in pan by pay and other innation but also arises as a consequence of continuing devclopment suh as the progression of ne programmcs III Nursing Pham1Glcy Occupational Therapy and Speech amp Languag Thrapv
Capital Expenditure
Enhancement to thegt physical estate of the University continues to grow apace with th major building programme and equipment acquisilJon resulting 111 an Illestmelll ofell 86m lprevious veal E6ml A total of (5047m was reeivcd dunng the vear in the form of capital grants The FlEA contributed C7 21 m The balance of f2296rn was provided 1 other funding agencies and benefactors
Thc expenditure reflects the investment ID tht MedICaL Therapies and Nursing buildings on the Brookfield site which I hJC alread mClllC1ned as well as the Environmental Research Institute building the completion of the Glucksman Art
pWJect and the wint acqmsition of the irish Distillers SHe with the MerC University Hospital (Cork) Limited
Ctpltal expenditure continue5 to rely heavily on non-State fundmg In splle of the publication of the Kelly Repllr on U11lversIt capItal needs little or ill new building proleet fundmg hus been made available l1 spite of the strong case made in the Kelly Report Of mawr eoneem I tbe IJck of a Governmcnt deCIsion to finalise fundlllg for the InfonmlllUn Technohgy buildmg planned for the Greyhound Track itc on cstem Road
lt~ tIm ~middotontexl the U1llverSIl contl11ues tll bcnefIt from the fund-rals1l1g activities of Cork l]11lersity Foundauor Lm1Hed Once agam I express the LmerSli apprceiatJ(l] fur this 8UPP()r hich is vllal for the contllluin)C essentIal
development of Its infrastructure
lniersiry College Cork atilmal Lniycrsity of Ireland Cork
HOORARY TREASURERS REPORT
Start Gnlllt
III the ear under rCle State Grant contributed f-24i-6m a~ agall1st f7(gtCl5m in the preious VeaL Tbi reflects a
nKrt ll1creasc of 13 reilccllng tllc cxtraordlllar dcci-)(lD tn freeze cre State Grant in 2004 State Grams no clntnbutc ()8 orLnivers1ty income as against 3696 in the prejous vear
Fees PoJitY
Fcc ll1come no stands at f63445m and represent 2974deg of IOta incomc PrelOUS year were (3 79m ~llld 20 ~Ro IJ lnd-r the GovemIl1ent~ free fee~ inilial1Yt 11105t of the fees In r~spect of full-1inle undergraduate student trl1m Fe coumnes are paJd fClr by the State
maJor rccommendauon in the OECD report on Irish third ce1 education commisslOned by the Goemment and publtshcd 111 20(l4 ad(lcates the re-lDtroducuon (lj fees to be paid by students as a means of ecurlllg much needed addltwllal fundmg [or the univcrsJlie The Government has decided not to do so
Research income
Once agam I am happ to report furtber success on the generation of I11come from funded research grant~ and contracts Under the G-p convention research Income is reponed as recurrent Income exclusive of amounts received to be expended on equlpmenL The income figure for the year under reie is f4750 I111 or 22270 of total reCUlTent lllComc IprclOUS year figures were f41303m or 215 I ~l
TIllS ery satisfactory outcome is due (l the diligence and dedicalJon of large numhers of academlc staff who as pnncipal investigators generate this mcome Such income is no earned on a seriously competitive basis UCC has been sll1gularly successful in the competitive awards under the Programme for Research in Third Leel Institutions (PRTLl) and Science Foundation Ireland (SFI) programmes
I referred III my previom report w the slgl1lficant development arising on the establishment of a Centre for SCience Engineering and Technologv (CSET) under the aegi~ of SFI and the involvement therein of an indigenou~ spm-out c(mpany Alimentary Health Lll111ted this project continues to gro successfully Another more recent major
declopment is the secunng of funding suppol1 from SFI for the restructuring of malOr research functions preloush earned (ut under the of the NatlOnal Microelectronics Research Centre and of several academic depal1ment mcIudlllg Physic~ Electrlcal amp Electronic Engineering and IVllcroelectronic Engineering under a new organisationa structure Tvndall iational lnsutute
)cnsiuns
PensIOn costs are now a malor lssue in the economy generally and the university system 1 no exception The UCC
Pension Scheme in defmed henefil schemel whlCh applies to mosl stall is partIally funded There is a separate defined comnbutlon scheme for contract stafT The funding sltUallOn is thc subject of on-going d1scussions between the UlllersIles and the HEA In thIS context also the Issue relallng to the ccst (r pension proision for contract siaff pr(lided for II1 recent employment legIslation is of maJor conccm
In the ltlCCc)lll1ts under rCmiddotle there is for the firt ]111C a requlremenl to II1clude a of note the total hability of ~l
pen~wn fund calculated in a speClfic a as reqUIred ov Financ1al Reporting Standard 17 (FRS i i~ lth nwsl pellSlOn funds and pamcularl since the UCC ~chel11e IS a pal1ially funded one a significant deficiency is recorded HceVcT it must he noted that the partlcular method or lakulalJon rcqUlred FRS 1 - tend (l use antiCipated rate~ of rGlUm on penswn fund mvestment whieh arc coniderably lower than actually rcaltsed
Th iue of pensIOn fundmg will contll1ue ( be dlscusscd ith the H EA
The Future
The success of UCC in resear2h fundmg takes pla~e III the contet oj a huge llKreasc ]]l Stat lllestment oer the last
ears under the aegIS of the HEA and SfI fillS increase in hmdmg 1 m stark contrast to the pauett oi fundmg rlf recurrent purposes ThI dlsconnect I dinlcult to understand In the shOI1 term II means that the ll1creastd resc aClllt ansmg 011 liCCs success piaus huge demands 011 the Cniverils inadtquare mfrastructurc In the longer leTn
Luinrsity College Cork ational tni(rsity of Ireland Cork
HOORARY TREASLRERS REPORT
till un~ati~fatCry state of afralr~ lhreatem 0 damage the reqUIrement to pwdu2C young res~arehers w staff the future
re~ar~i1 need~ of the economy
I am ~Iare that there are on-golllg diSCUSSIOns takmg place between the uniersities and the State agencies 111 an cffon 0
~eure the neccsary funding already advocated by the Kelly Repon and the OEeD Report I referred tel above It I
onh way of a PC)SlllVe reponse (1 these ll1ltiaties will Ireland be able l0 develop the ul1Jersny system Jl needs to
sUIPClfl the need of our future SOCiCl)
In the meannme I am confident that III spite of the serioU5 finanCIal SltuatJOll now pertaining UCC will be well (1
It wk 1I1 suppDning the economic cultural and SOCIal dCHJopment of lrish S(CJCty~
Dennot 0 l1ahone l-IOI10ra Treasurer
Juh 2006
t niwrsin C011lt(1lt Cork ational tniYersity of Ireland Cork
S1TpoundIpoundT OF GOVERIIIG BODYS RESPOSIBILlTIES
The Ci0C11mg Bdy is required to comply iilb the Umvcrsitics Act 1QCl( and to keep in such form a5 nWi h ~pproved 11 t(darls um ArdOideachas all proper and usual lecounts of mOlle rccIvcd and expended by II
In preparing th0se accounts he G(iemmg Bod is required lc
bull s1ct suitable policies and then app them wnsIstcntly
bull 111ake Judgements lnd estimates thal are reasonable and prudellt
bull dIsclose md explain any matcnal departures from appk~able accC1ullting standards and
bull prepare the financial statements on the gCiing C0nCefl] basis unless It j- ll1appropnatC l(l presume that the lniverll will continue m (iperation
The GOcTnmg Body is responsible ror keeping proper books of account vrllch dIsclose with reasonabk accuran at any tilll the finmeial posItion of the UnIversIty and which enable l W ensure that Its fmancull statements comply WIth the ll1lrsities Act 1997 [he Statement of Recommended Practice on Accounting in Hlghcr Educallon InstltUllOnS and are prpared m accordance wIlh accounting standard generally accepted 111 Ireland
The Governing Bod i responsible for ensunng that the busmess of the University is conducted ill proper and regular manner and for safeguardlllg all assets under Its operatJOnal control and hence for taking reasonable steps for the pnYemion and detectlon of fraud and other irr~gtgulantles
Deloitte Dcicltte amp T()(lC~e ChJrtereu At (ountan) amp Resistered Audno~)
IDEPE1DENT ACDITORS REPORT TO THE GOYER1I1G BODY OF CiIYERSITY COLLEGE CORK
e hae audited the financial statements of unJcrsJty College Cork for thc vear ended 0 September 20(14 hich compnse th consclidated income and expenditure account the balance sheet of the Ul1Iversity and of the LJJllversJty and its sulJS1diary undertakings (the Group balance sheet) the consolidated cash flow statement the statment of total recognised gains and losses and the related notes 1 w 3 1 These finanCIal statementgt have been prepared under the accounting policies set out therein
Tl115 repon is made solely to the members of the Govemmg BodY of LJniversity College Cork as a body OUf
audn work has been undertaken so that we might state to the members of the Govemmg Body thos matters c state to them in our auditors repon and for no other purpose To the fullest extent permitted by law we dc not accept or assume responsibihty 10 anyone other than tbe member or the Govemmg Bod for our audit work lor this report or for the opinions we have formed
Respective responsibilities of the Governin~ Body and auditors The Govemmg Bodys responsibility for preparing the annual repon and the financial statements 11l
accordance WIth the umverSItles Act 1997 and wah 8ccountmg standard gencrall accepted Il1 Ireland l set out on page Il1 the statement of the Govemmg Bods responsibilities
Our respomibilit IS to audit the financial statements in accordance WIth relevant regulator requirements and lUdltll1g standards Issued by the auditmg Practices Board applIcahle in Ireland
We repon to yOU our opimon as te whether the financial statements gIve a true and i1ir ICW and are pwperiv prepared Ve report whether the finanCIal statements prepared in accordance with generally accepted accountll1g principles have been properly extracted from the books and records of the Universlv Ve state whether we have obtallled all the information and eplanatlons we consider necessary for the purposes of our audit
Basis of audit opinion We conducted our audJl II accordance with audltll1g standards Issued by the Audning Practices Board and generallv accepted in Ireland An audIt ll1c1udes examinatlon on a test basls of eVIdence releant to the amounts and disclosure m the finanCIal statements It also includes an assessment of the slgl1lficant estImates and judgements made b the members of the Govemll1g Bod III the preparation of the fll13nclal statements and of whether the accounting pohcies are appropriate (l the Universit circumstances cOl1SIQently applied and adequately disclosed
(COJ1linued on rhe lieXI page
MernJ(f Deloitte Touche Tohmatsu
Deloitte
t plannd and re~forrnd our audll so as W ontam al] tht mfCrn1G110n and explanatloflS whIch we
COflSldered necessar) m order [( provide u with sufficient cYlcience 10 rcaonahle assurance that the rinancxal statement 3re free from mmenal misstatement whether aused h fraud or other megularity 0
~ITOr 1n fOITmng our Opll1lOD we also evaluated the oyerall adequac) of the presentalon of informauon Hi [h~
financIal Slnemenrs
Qualified opinion arising from non lomplianc( with alcouIHillg and disclo~ure requirements of Statement of Standard Accounting Practice 24 Aclounting for Pension Costs
Til Cniverslt has not complIed with the accounllng and dIsclosure reqUlremellls of Statement of Standard
A~counl1ng Pral1cc 24 Accoummg for PenslOn COftS pamcularh m respect of pension supplementation 111
respect of mcreases III penSIOns payable It IS not pracllcable to quantify the impact of this non-complwnce
lll the reponed finanCIal position of th~ limversllY
fo~ the failure [e provide the dIsclosure aud the adlustmel1l that mIght have heen found tll be
necessary [( compiy Ith the accountmi2 and dIsclosure reqUIrements 0 Stllemem 01 Standard Accountmg Pracuc 4 in ou opimon the finanCIal tatements on pages 1 [(1 30 a true 3nd fair viev 0 the stale of Gflai-s of the UIllverSl and the Umversny Group at 3(l Septemher 2(l(i4 and of the deficit of the UmverSl Group for the year then euded and han heen prepGred lJ1 accordance WIth generally accepted accountmg
Dnnclples
- have obtamed all the mforrnanon and explanatIOns Wt consider necessary for the purposes of our audlL
III our opInIOn proper book of account hae been kept by the Ul1vcrsll The halance sheCI of the tll ersit 1 111 dffcemCll WIth the hook~ of account
Deloitte amp Touche l Lapp (lUi1V
Cork
Dare
Lninrsit~ College Cork ational Llliversity oflrcIand Cork
STA TElET OF ACCO(TIG POLICIES
The ~l=niflca1l accounting poiJies adopted b~ the UI1lVerSI are as f(lbws
Basi~ of preparation The fil1Jncwi statements have been prepared in accordance Wilh accounting standards generally accepted in Ireland md the SWltmenl of Recommended Praclice-Accountmg for Further and Highcr Education lnstltUlions ccountmg swnci1rds generally accepted in lreland in preparing financ131 statements a true and fair vie (Ire thOse publihed h the lnSmlc of Chartered ccoumants in Ireland and Issued hy the Ac~counl1ng Standards Board
ccounting convention The aCoullts hlve been preplred under the hIstorical cost C(11vcntwn modIfied h the reyalu1tion of certam land and hUlldmgs
Basis of consolidation The consolidated financial statements l11clude the li111verSl and llS suhsldlary undertakings and other undertakings 1ll
hi11 the Umverslt has a financial InteresL as indICated III nOll 11 The results of subsidianes acquired or dIsposed of dunng the penod are included in the consolidated Income and expendllure account from the date of acquisition (lr up te th~ dale of dIsposaL lntra-group sales and profits are climinatltd fully on consolidatlon
in accordance with FRS2 the actiities of the Students Umons have not heen consolJdated because the University docs not control those aCllvIlle The financial statements of Cork l111ersiry Foundatlon Limited Unicrsity Cork Ptnsion Fund and Trust Fund arc also excluded as they are not controlled by the Ljmcrsl
Rccognition of income Rc~urrent grants trom the Fhgher Education Authority an recognised 111 the period in which they are receivable
NL)n-rCcurrent grants from the Higher Educallon iuthority or other bodies receied in respect of the acqmsllion or -l]1struellon or fixed assets are treated a deferred capital grants and amonJsed III lllle with depreciation oer the life of thtmiddot asets
Income from research grants contracts and other se1ices rendered is Illcluded to the extent of the completion of the contract llr S(1ICe conecmed TillS is generally equivalent to the sum of the relevant expcndlture incurred during the year and any related contrihutions towards ocrheld costs Allmcome from sllOrt-tcrm deposas IS crcdlted to the income ll1J expendnurc account 111 the penod m wlllch 1l 1 eamed
ln~omc from endowments and donations IS l11cJuded to the extent of the relevant expendIture incurred dunng the yeaL together wah any related cnntributions toward overhead costs
Foreign currency translation TransactIOns denominated m foreIgn currencies are recorded at the rate of exchange ruling at the dates of the transaction Monetary assets and ilabilities denominated III foreIgn currencies arc transl3ted mtll euro eJlher at vear end rltes OL where there are related forward exchange contracts at contract rates The resultmg difference Ire dealt WIth in the determmalOIl of income and expenditure for the financial year
Tangible fixed assets
(a) Land and buildings The l)niverslty buildmgs arc valued at deprecIated replacement cost Land and buildl1g~ arc stated III the balall~c Sh-Cl at aluallon 011 the basis of depreciated replacement cost as they are specialised buildings and therefore it I~ not appropnate to value them 01 the basis of open market value The last aluarioll was carrid out on 3(1 September 1OQ-l The tniverlty has fixed the value of the Ind and huildlf]g~ a at 3( September 1994 as tIllS was the first veal of the implementatloll of generally lccepted accountng pnnciples in resped of Fixed ssets m presenting the fmanelal srawmcJ1Is of the lJi11versl1y Land and buildings acqulled SHlCC the vaiuation an included in the balance sheet at c(s Freehold land IS not depreciated FreelKtld huddings are deprecIated oel their expc~ted useful cconomlC hit Il the University of (1 ycars
llliersjt~ Colle Cork ationaI CniYersity of ireland Cork
STATEIE1 OF ACCOCTING POLICIES - coutinued
Tangihle fixed assets continued
(a I Land aud buildings - continued
here land and buildmgs are lcquired lth the ud of specIfic grants they are capItalIsed and deprecIated a aboe
The related grams are credIted Q a deferred capltai grant account and are released ((1 the IIlcomc and expenditure
account over the expected useful eCDnomlC llfc of the related asset on a basis consIstent with the depreciation POlICY
Fmancc costs hKh are directly attributable w the COl1structlOn of land and buildings are not capitalised as part of th cost ([ those Jssets
nlew for impJirment of a fixed asset is carned out If ecnts or changs in clrcumstanccs indIcate that the amount of the fixed asset may l1l)t be recocrable
Buildmgs under construction are accounted for at cost bascd on the Yllue of architect~ certificates and other direct ClqS mcurred to the financill velr end They are not dcpreewed until th(~ arc brought mto use
(ill Equipment 111 eqUlpment IS apnalised at cost Clpllaiised equIpment i depreCIated over Its useful economIc iife as fllows
Computer equipment 3 year~
Equipment 5 ye-ars
Where equipment is acquired with the aid of specific grams it is capitalised and depreCIated m accordance Ith the abo( policy with the related grant being credited to a defened capnal grant account and released to income and expendlfurc account over the expected useful economic life of the related equipment
Financial assets hxed asset Illvestments that arc listed on a reeogJ1lsed stock exchange are canied at market value The II1vestment 11 the
L lllverslfY T echnok)gv Centre PartnershIp has been revalued dunng the year to thc value u[ the tJniversl s share In the
plftnershlp Those that are not listed are canied at hIstorical cost less any proVIsion for impainnent in theIr value
Current a~sel in(~st1lents are included in the baiance sheet at the lower of their original cost and net reahsable value
Stocks Sto-b are Slated at the lower of their cost and net realisable alue -here necessary proVIsion is made for obsolete
skw mOing and defective Stock Expenditure incurred by tbe University on booki and consumable stocks finaned
(rc1m recunent grams are charged to the Income and Expenditure JccounL
Taxlltion -S an exempt charity thc University is not lIable for Corporation Tax or Income Tax on an ofns chantable actIVItIeS It b regIstered [or -alue Added Tax but smce the supply of edu~atlOn is an exempt acmity on whIch no output tax IS -harged Il IS unable to recover input tax on the maJonty of its purchases
Tradmg JclJvllles undertaken b the Cniversity an admllllstered through IlS subSIdiary compames whle11 as commerciai
(lrganisatlOns are hable to Corporation Tax
Liquid resources LIqUId reSlurcs include sums on short-term deposits with recugnlsed banks and buIlding societies and gocmmcm
SCUflllt=
Provisions ProvlslOns are recognised when the U1Ivcrslty has a present legal or eonslruclje oblIgatIOn as a result of a past event I 1 probable that j transfer cf economic benefit i11 be required to settic the oblIgation and il relIable CSlImate can be made
of the amount of the obligatIOn
tninrsity College Cork alional Cniersity of Ireland Cork
STATEIEiT OF ACCOl-TIiG POLICIES - continued
Pensiolls The CnlrsJ[ operates a diined benefit pensIon scheme Ililh assets held in a separately admll1islered fund The b~SIC rCl1rCmCDl pensions of Cniversit) staff are funded by comnbutiom 1(1 the ul1Iverst PensIOn Fund (the penion fund I
a a pre-determmed rate of penSIOnable pay Increases m baSIC retirement penSIOns hlch are pltlld through the pm101
fund arc repaid to the pensIOn fund by the umversity The penSlOl1 fund is valued acuarialh once III every three ears TiK las such alUatlOIl was carried OUI as at i October 2004
Pension benefits for ccnain other employees are met b pavlllems (1 a defined contribution pension scheme
CClllribullOns (ire charged to the income and expenditure account III the veal in willch th( fall duc
lllinrsity College Cork ational Cniversity of Ireland Cork
COSOLIDATED ICOME AD EXPEDlTCRE ACCOFT Year Ended 30 September 2004
1oles
Consolidattd 21104
pound000
Consolidated 2003
(OOll
Income
Srat rants
SlUJ~nl f~
Rs~arch grants and contract
AmortIsation of deferred capital grants
Olhr lpcrating income
Inters ll1ome
Ishy
4
~A~6
63-+4 4-01 II 1~Ibull ~ ___1
1831 7
7(0
~--3-q
11303
12AXO Q430
Total income 21 ~3(l~ IQ~ri~
Expenditure
Staff OSb
Olbr operallng expenses
DepreciatIon
Total expenditure
Deficit for the year after depreciatioll of assets before taxation
rJXJtion
Drfieit for the year after depreciation of assets and after taxation
Th~ d~jicit for the year aroe soleh from contInuing opcratiom
The fInancial ztatemems lln pages 8 w 3( were approvd the- G(YCn1111g Body on 1(l October 2006 and wer SIgned (l1
Its hehalf by
Signcd Professor Wrixon Dermot OMahoney Prcsldent j-llt)norar Treasurer
1
lnhersity College Cork ational blhersity of Ireland Cork
COSOLIDATED BAlACE SHEET 30 September 2004
otes
Consolidated
2004 CO(lO
2003 COOO
lnilrsit~
20()4 COOO
2lHl3 coou
Fhed assets
1 anglh Ie asset
Flnanci3 LSScl~ 10
11
Current assets
Swcks 12 314 351 291 3~)
Dchwr~ 1 L 32deg(11 1wCJRx 41206 J9~ J2
Ca~h al bank
3330- 5 ~37 41497 469]
Creditors AmOUlllS fallmg due wnhm nne
year (10UAX6) (76923)
et current liabilities
Total assets less current liabilities 301307 25C)6c)7 25756 114900
Creditors Amoums falling due after nne
vear l=
0 fC et assets 1(1)gt ll~flt 4 CHi4 A
123552Deferred capital grants
Represented by
Revenue rescrvcs C) 1l2396 (9750)
ReitJumion reserve If)
Total
The financwl mncmenb on pages ~ 10 3(1 were appr0cd bv the GOcming B0dv on ] () OCC1ber 20C6 and wcre OIl
I1s hehall
SIgned Professor Wrixon Dermot OMahoney Prcsidcnt Honorarv Treasurer
lninrsity College Cork ational lniycrsity of Ireland Cork
COSOLUHTED CASH FLOW STATEMENT OF HISTORIC COST SLRPLlSES AD DEFICITS Year Ended 30 September 004
h I~ 11) possihle to determine the difference hetween hlstoncal ost depreCHllion and the actual charge due w the facl thal
th 111ston~al cost infomlation IS not aailahl
STATDIET OF TOTAL RECOGISED GAIS AN)) LOSSES Year Ended 30 September ()()4
2004 fOOO
2003 fOOO
Defill all COlll1l1UIIlg operatIons after depre~lalon of assets at aluali(lfL
(t IsseIS and laX (2646)
Unrcdlsed surplus on revaluation of financial assets
Ttllal rcognised gail15 relatmg 10 the year
Reconciliation
126lCJO
gams (losses) for the year
Closmg resenes
lniHrsiry Colegt Cork alional Cniersity of I relund Cork
COSOLIDATED CASH FLOW STATE]lElT Year Ended 30 September 20(14
et cash outflow from operating activities
Returns on investments and seIleing of finance
expenditure and finanial mcstmem
e( cash outflow befon financing
Fmll1cmg
Decrease in cash in the period
Reconciliation of net cash flow to movement in net fundsdebt
Decrclse in cash m the period
Ctsh (luttlO from mcrease in debt and lease financmg
Change 111 nel debt resultlIlg from cashflows
on ash changes
(lemel1l 111 net debt in period
Cl debt at i October 2003
et ckbt CIt 30 September 2004
otes
24
21104 E()()O
(761)
( 18680
( 390U I
26
26
(341021
(0361)41---shy
lninrsity College Cork ational [niersit~ of Ireland Cork
ons TO THE ACCOCTS
Stale grants 20()4 2003 COOO COOO
)t1 grams allclcatcd for recurrent pllrrO~CS
Thc al-gt( gLlOt mome wa~ neclved from the Higher Educltlon Aulloril anc Ihe DcpanmeIH of J-kJllh amp Chldrell
2 Academic fees 200-1 2003 COOO CO()()
-cadcmic fee inccme
Total fces pale hy o[ on behalf of mdiyidual studems
- lOla ofC5073-lO 2003euro3084g(l23) lIlcluded in aCiJdemic icc income was pJld dIrectly by the lllgher Educalon uthorilY
Research grants and contracts
European Umon InduSlf
Other
-1 Other incollle
Other rental l11C(lme
Funded pClst lIlCOll1t
SlUdent rsidenccs 1OC0111C
Proflt on compulsory iJcqUlsition oj lands Profit on sale of lands Leisure facilitie InCOme
Demal IlOSPlliJl I1come
Other income
= Interest income
Inttres mcome
2()0-1 2U03 fOOO coon
3 i 078 023
3S33
2()0-1 2003 pound000 ClWO
19 ~()~ 3U5
391()
l(1Ci
(I(i
2213 X6(1
2305 2(
laquo242 UOCi
1 Sl i~
200~ 200J COOO COOU
6
tlliwrsi Colle[c Cork arional Lnhersity of Ireland Cork
OTES TO THE ACCOFTS - continued
Staff costs
rh~ 3Crage veekh number of perSClJ1S (mcludlllg senior jwsl-h(ldcrs) emploved by tht
cpresscd as full-urne equlalcm was
reahing and rsearch
TechmcJI
entral adnllnistraIon and serices
Other
Salaries and wages
Social welfare costs
Other pension costs
Other operating expenses
Consumables
BeaL light aler and power
Research consumables
R(palfS and general mailllcnallce
Audn and professional
Rent and rates
Other expenses
Other opcratmg expenses in~1 ude
Auditors remuneraIon
EXlcmal audit
Other seryices fro111 external audit
during the
UH4 umber
201)4
(000
119538
666
14LA7C)
2(1)4
(000
15A7 4 2603
1(L933 376
138 j
L531
2004 [000
cq
IF
2003 umber
1246
63
2003 fO()()
]05379
200] C(lIiO
2003 COOO
jll
1U-
14312
lnhersin Colle~( Cork arional lniversity of Ireland Cork
OTES TO THE ACCOtTS - continued
S Taxation
taXJllOll charge arises as the UlllvCrSll and il~ principal subndJar companies are exempt chantle and are not
hable for corporation tax or mcome tax on any of its charitabk actlvitles
I) Deficit on cOlltinuin~ operations for the year 20(14 2U(J3 [(IOU COOO
The deii-l on continuing operalJons for the vcar is made up a~ flllows
UniC~rslfS deficit for the vear
Surplus generated bv the subsidIary undenakmgs and transferred to the Univcrslt
Total
1
I uinlsity (olltj( (olk ~atiollall illi(rsil~ 01 Irdalltl Cork
NOI ES TO TilE A((OINTS
10 Tal~ihl( fix(d ass(ls
(( )NS()f J lgtAnl)
(0lt1 or valnation
At t ()cohcr200)
Additiotls
At
Is 311 21104
i)epncialioll
At 1 Oct(hcr 2(J03
(I Cd
tl) 2(11)1
Nrl hook aim
t I letobe WOJ
It Ill 211()4
fOlllillll((1
Land alld
hllildill~S
CHon
I 7ti6
57(iY
((l3)
379]
(() Ll
273I1U3
27350X
COIIIJlIII(middotr
(qlliplJI(lIt
(000
2(d~59
i23
1 JJ
2J 425
71 II
1434
4X39
EqllipllltlIl
COOO
iltU172 6+31
30514
9Y)()
20]X8
17331
Assets ill ((HI 1St or
COllstnldioll
ClUW
151)9
54512
109
Total
CIIOO
4IltX() 7Ui7
l) 1Yh2
IlI121
II
312(118
3(1)30
LamJ alld huiltiillll alld cquipnlCllt IIKludc assets valucd in Iljl)4 (In a dCpleCI1tet 1Cj111ccmcllt cosl hasis fL1 1lIOJ()) respectivelY land alld huildillils ami lssel in course (II cOllstructi(lil includes UX]X I IJ(IO
include C 51ltJ07()O() (lOll CJ1)I(lI()()()) in relatioll tn land and tile ACC(1l111tillg Standards Board Iliese land ami
ftilcsc buildillls IS that tlte
( ) nlccr oUTgt nUI(( I (~(() C127721J IO()) and CI 1 IlIeH 10 (2()(3
(11 Ii ecl(1ld Iaml willch is Iwl
The COlllllwlcial ellce of the trallsactiolls Slln
issued lire salv alld ulllllwtc
tll 1he lam] ami
~
--
- -
~
~
~
-
-=
shy
- = shy~
7
=-= -
Z
7 ~
~ - lt shy shy shy
shy
Z shy
Z
r X r
-
r
-= oJ c
= 0 ~
= -~-=
ti= ~
shy = =
~
~
t= Z
~
51
- Z ~ lt
0
r-~
(J n r--ltIoc r-
x
v ~ r l j r1 r- if
rr
T M rlt
r = j
= -j =
C
shy -
~ v ~ ~
shy shy
- - -
-0
lt - lt )
Z lt
1 0 x T x)C
F n ~
0middot1 r1~~
r -
r~
lt
0 lr ~ r1 n(1
l r~
ltj~
tniVCfsiry College Cork ttional Lniversiry of Ireland Cork
OTES TO THE ACC()l]TS - continued
11 Financial assets Consolid ated
2UO-l 2003 ((WO f(lOO
t nhersity 2004 2003
COOO COOO
InnSlInents at the veal end were held as follovs
( lthcr
3450
The investment in the Lmversllv Technology Centre Partnership ha~ been re31ued during the year tc the 3lue 0shythe Llmycrsny share inlhe partnership as at 31 December 2003
The tnhersity held an interest in the following subsidiary undertakings
Subsidhlry undertakings
Incorporated
Propem ianagement (LeC) Limited
Campm ccommOdali(111 C) Limned
Art Gallery (liCC) Limiled
Brcnard Limited
1ardykc LeIsure (U ce) Limited
At Ie Press Limited
(iivlC Holding~ Limlled
11 Stocks
Consumables
FIlllshed goods for resale
Prindplil activity
Property development
Accommodation rcntal
11 gallery
Leasing or lands
PublIshing
Dornnnt
Interest 0 0
J00
100
100
100
1(lOo
Consolidated
2004 2003 COOO (0110
65
Registered officeplace of business
City Chamhers 4
Cork
limversl1Y Cork Aestern Road Cork University Cork Vestern Road Cork University College Cork Western Road Cork liniversiry College Cork Western Road Cork Crawford Business Park Crosses Green Cork St Kildas Western Road Cork
Clliversity
O()4 2001 [(lOU COOO
36
fhere io no malcnal difference between the balance sheet amount of slOcks and Its replacement cost
13 Debtors
Trad- debtors
Res-arh grants and colllraCls receiabk
nwunts due from suhsldmrv undertakings
Slale gr~ml reciabk
(lther tJJtWIl and s(lcial Illsurancc
Other deotiJrs
C ollsolida ted Llliycrsif
2(104 2003 2004 200 [000 COOO COOO f(I00
S34 -Li06 67U
601 753 6015 j J0(
1~S26 766 12S~6
11 -- 3 f~ 51 t
lJ
~ q()l --l12(j( ~ ~
CnhlIsit~ College Cork ationallniersity of Ireland Cork
OTES TO THE CCOCTS - continued
1-1 Creditors Amounts fallillg due within Dill year Consolidated lnjyersit~
20114 2003 2004 2003 COOO COOO [000 C(lOU
Trad rcdjtor~ 7501 Cl295 (702
Research grants and contracts III advance I(i5 5 1150i 1U5~ -cademic fee~ receied in advance 11(1()4 QOM 110CJ4 ()01gt4
State grant receied m advance 118 I 1535 513~ Bank loans 8 overdrafts (note 16) 3O 39 416 1606 333~
Amounts owed to subsidiary undenakmgs -113 4SS~
Other taxatIOn and SOCIal security -+394 0 41 42()9 SAl (i
Deftrred incJll1e 19(3 9131
Other creditors 8 accruals lOOARA R9~~
15 Creditors Amounts falling due after one year Consolidated linivcrsi t)
200-1 2003 2004 20U3 ((lOO COOO (000 COOO
Bank loans (note 16) ~ 1 - -_-
16 Borrowings Consolidated University
2004 2003 2004 2003 (000 (000 fOOO (IOU
Bank loans and overdrafts
Bank loan and oerdrafts are repayable as follows
III one year or less 3073Q 41 6 8606 33~
O~(Between one and twe veal 221 1693 1ampshy
Between two ard 11 H years 872 (i 104 604Q 3+05
In fiC y~ar or more
TCHal 6360 1 3400( I ~~ ~
ature and Securiry of Borrowings stated tn Note 10 F1Xed Assets hae been accounted for in accordance with FRS 5 The ab[)vc liabilIl16 represent the uhimate lwbilitie to repurchase the assct~ concerned The borrowJI1gs arc secured bv title until the repurchae takes place
lniYlrsit Colleu ( Cork -ational lniversity of Ireland Cork
-OTES TO THE ACCOCTS - continued
1~ Deferred capital grants HEA
COOO
Other grants and
benefactors (000
Total
COOO
C olsolida ted
At 1 October 2003
BuJldmg~
EJuipment
Tota
414 45677 8-31
Cash received Buildmg
Equipment
Tolal
b53-l 153~5 -l U59
Released to income and expenditure
Buildmgs
Equipment
TClaj
1449 )
~
9~3
1-1 ---
) iii _) shy
1L~~~
At 3() Septemher 20()t
B u ild 1111
Equipmem
T pta I
66639
7(91
600 i 9
-09A
I 6-] ~
14UltC)
l ni(~rsit C olieo ( Cork arional Cnhersity of Ireland Cork
OTES TO THE ACCOl1TS - continued
1i Deferred capital grants continued HEA
(non
t niersity
At 1 October 21Hl3
B uil dlllb
Eqmpmem
Total
Cash received
Buddmggt EqUIpment
TOla
Released to income and expenditur( 1 1 7Buildmg )
Equipmcl1l
Total )S3
At 30 September 200
Buildll1g~ 61324
EqUlpmcm Tora (~=5
IS Revaluation reser( Consolidated
2004 2003 (lOO ((lOU
At 1 October as pcr nOle 10) 135940
Reuluatlons or inesrmerm in the penod InOle I 1
t W Serlember
Other gran IS Total and
henefactors (000 COOO
3515 -=37(J
81 2149
4465 7i ~
XXh(1
51627 112951
~65(1
6()
Lnjcrsity 200 20()3
f ono C 000
35040
lniYcrsiry Collegl Cork iarional Llliycrsit~ of Ireland Cork
iOTES TO THE ACCOl1TS - continued
1(J Reconciliation of movcment of reservcs Revenue Revaluation Total reserves reserves
COOO pound1000 ooo
Consolidattd
1 I October 211(0shy 6]90
D(bcll on comlllumg l)perations revaluation
I ( Septemher 20(14
middott I Octoher 2003 13940 126241
Deficll or eommumg operations revaluation
3( September 2004 1RR~]
W Contingencies
The U11lversil from tIme ll time is party to yariow legal proceedings The Offieers of the University havc been mlormed hy then legal advisors that it is not possibie at this time to make a rellable estimme of the finanCIal effects (if an~l of tiles cases
t 3( September 2004 a cO1ll1gent lIabIlity existed in respect of potential Value Added Tax in the amoum of C2 rmbon together with substantial potential imeresl and penalties This potentIa] habilItv was setllc~d in January 006 at a lesser amount and the effect on the Income and Expenditure -ecount is no material
21 Capital commitments Consolidatcd Univcrsity
2004 2003 2004 2003 (000 (000 COOO (000
Comracted for but nO promiddotided 69143
Authorised but not omracted out 18304 i 49]Q
tninrsity College Cork ationa lniversity of Ireland Cork
OTES TO THE AccorTS - (ontillucmiddotd
Reconciliation of consolidated operating deficit to net cash outflow from operating activities
Dilcit on conlJnuing operalJons afier depreciation of assets at valuatlOn Dcpr(clat10n D~fcfT(d apital grants released W income Proiit on dIsposal of tangible fixed as~ets D~rcase m stocks Increase m debtors
Drcflse m creditors
on cash changes lmerest receivable Imerest em Iiabiliy 10 Investors under FRS Increase m invcstment aluation
et cash outflow from opernt1l1g aClivilJes
23 Returns on inwstments and servicing of finance
Other lterest received Interes paid on habihty to investors under FRSS
ct cash inGow from returns on lllvestments and senlcing of finance
24 Capital expenditure and financial illYestment
iurh3se of tangible fixed assets Sak of tangible fixed assets (see note 10) Deferred capnal grants receIved
Net cash outflow from capital expendllure and finanClallllestmcm
2()l4
CIIOO
12(46) 1C) ~ 21
( 11253 ) (64 0 )
(]3006) f~(24)
15 (3011 11)62
11
( 14 361
2004 (000
301 ( 1(1621
7611
2004 C()(l()
S57 70(1
SC)4T
ISoRO
lniversit~ College Cork arional tniversity of Ireland Cork
OTES TO THE ACCOCTS - continued
15 Financing 200-1 (000
Dht due within ant year Drclse 111 shon term hononn~
Dent due lyand one year Increase in long tenl1 borw1I1g
1et -ash inflow frorr financing
26 nalsis of changes in net debt At CashOows Other At I October Non cash 30 September
2003 changes 2004 POOH (000 POOO COOO
C~sh 111 hand and at hank 5 3 9Z l)vcrdrafts
539( (21)5021
Deht due within I year (-US6) 1C)[9 (~37)
Debt due after J vear 62R) (19) (7241 Llabilll to invctors under FRS (125) (24231 i
125 163f()4iTCltal
27 Related parties
Transactions Jh suhsidlanes of the UlllversllY have been eillninated on consdidauon and 11(1 disclosure or these transactIOn has therefore been gIven The Lnlerslty had the following transactIOns with related panics on 1 DeCember 1995 Irish Universitl Student Trust entered into a twent five year lease or AnlS 113 Mac Lemn from Lmverslty College Cork at an annual rental dE44A4J pel annum The trustees oflnsh UnirSH Studem Trust are the PrerdenL Secreta and Bursar and Fllance Officer elf ljmvcrsll Cork
l ninrsit College Cork ationaJ lininrsit~ of Ireland Cork
OTES TO THE ACC01T5 - COli tinned
8 Pcnsions
3 ~ PenSIon for substantiaEy all employees are funded through a defined henefit pension schemelt
The lniwrsl oper3tes a defined henefit penSlOll scheme wllh assets held 111 a separately admmlstered fund The total pension cost w the UniversHy ltas f14J)-4 Q 4J (2003 f12(J]-~13L The Illost recen uctuanul
aluation as undenaken as at 1 Octoher 2004 hy consuting actuanes uS1l1g the attained age methodlt The
princIpal assumptIon used in the actuarial valuatlOn was that the long-term annual rale of return on 1I1vestment would exceedtbe mcrease 111 pensionable earnIngs by 2) The 1ens1On and Trust Funds are not included 1I1
the Balance Sheet hecause they arc funds w1111 a separate COHSlltu1l0n from the general assets and ltabilJtie~ of the t11lerSlllaquo
t the date of tbe last actuaria I valuation the market aluc of the scheme s assets was sufTiclCl1t to cover 9lt
of the accrued liabilitleslt based on currcnt eammgs and also allowlllg for expected future mcreascs m eammgslt
The ul1lversny also operates a defmed contributIon penslOn scheme that covers cenain empl(1yees of the
ul11ersirvlt The assets of the scheme are invested by independent trustees for the benefit of these emplovees
ContributIOns to tim pension scheme for the year amounted to C02(il15 (2003 fJ A4F788I
b Financial Reporting STandard 1- Retirement Bellefirs disclosures
The alual1on of the Superannuation Plan benefits for the purposes of FRS 10 disclosures was based on the
results of the actuanal valuation ~aITlcd out as at 0 1102004 suItably adjusted to ~Onr()m1 to the requirements
of FRS 1- The impact of the penSlOn obligations of benchmarkmg awards due but not vet paid has been
mcluded The financlal assumptions used w calulate the retIrement cbltgatJons under FRS I were as follows
2004 2003
Valuation method Projected Projected Luit Luit
Dicou11l rate ) JlOdeg) )lt50
In118tio11 rale 250deg(1 250middot
Satan 1I1lTeases LO 450deg()
PenSlOll Supplemel1latlon 350l~middott 350o (J
t nhersity Coll(ge Cork gtational Lniversity of Ireland Cork
gtOTpound5 TO THE ACCOlgtTS continued
b Financial ReporrillK Standard 1- Rctircmcnr Bcncfirs discloswc (coltinued)
Th market value of the assets 111 the penSIOn schenk the expected rates of return and the hllgallOns as at 300920(11 togethe WIth the pnor vear arc ShC11 belo
2004 2003 cooo coon
Equities ~ ~5deg iJ 11Q708 800 1~346
Bonds -f ~()(I( 22456 150[0 lfd29
PropertY 65degu ImiddotUP 00( 14330
)Clsh 21 O()~() 2]0
TOW market alue of assets 1GL933 166623
Actual Value of Labilny
PenSlun Deficll
Related deferred tax Iiabiit~
et PellSlOn Llabi hty
Analysis of the amount that would have heen charg(d HI operating profit under FRS 17 is as foil () s
2004 2003 COOO (000
Curren Selce Cost 1710 1
Past SeTyice Cost
Tow Operatmg Charge
Analysis of the amount that would lUlVe been credited to other finance income under FRS]7 is as
follows
2004 2003 (000 COOIl
retum 011 s-heme asct~ 1U104
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
lninTsit~ College Cork atiouallniversit)middot of ireland Cork
HOORARY TREASCRERS REPORT
Format of Accounts
For veraJ Years the financial statements of the Ul1lcTsnies have been prepared on a tailor-made basis agreed between the univcrsitIes and the Higher Education Authorin LHpound) FollowlIlg detaded consultatlon with the HEA and the Cl1lrtroJicr and Auditor-GeneraL It has heen agreed that th published finanClal ~tatements wilL from the vear ended Ie September 0(3 he prepared on the hasis or Generally ACC(1uming PrinCIples (GAAP) and these Clre the ~tatcmcnts that are now appended The previous hasis will continue to he used to prepare a HEA Funding Statement lC
a lnanlUl report whIch reflets the fundmg requIrements of the untverslles
There are Slgt1tilcam differences beteen the tW(l formms of finanCIal statemems Under the Funding Statelllem arr~lllgemenL II was agreed that a proportion of fee IIlcome (related to economIC fcc income from non-FU swdents and fcc lenes paid bv ail students) was treated as capltalmcome W be used for deC~lopment purposes and not IIlcluded in the recurrent mcome of the Uniersit Unspent depanmental balances were previoush accrued 10 expenditure hut under Ci--P are treated as a reduction in expendllure Certain non-recurring lIlcome eg arismg on sale of land l~ treated as 11~ll11e under CiAv) There are also SIgnificant differences 111 the treatment relating 10 depreCIatIOn and amortisatIon of capllal recelpls A number of other mmor differences in treatment also anse
The net result will tend le be that under GAAP the surplusdefiCIt s1uation will bc more advantageous than 111 the HEn FU1dmg Statement but the latter more accurately refkcts the lJ11lVersllYs funding requirements
Current Account
Thgt out-tum for the vear on current account is a dcficit of f2646m While this deficit IS histOrIcally very large It I~
slgmficantly better than had been forecast by the UniversllY to the BEA following the Govemments unprecedented dC~lslOn to freeze umverslly recurrent grants in 2004 an Issue I highlighted in my previous report Under the Fundlllg Swtcment basis th defICit IS euro5R92m mclusive of a provision for the impact of recent employment legIslation on the PrC1ISlon of pension benefit for contract staff amountmg to EA4m the funding of thIS amount is the subject of olJ-gomg dISCUSSIons with the HEA This leaves the remaining fundmg deficit at approXImately fl5m some one million eun less than had been forecast The proJslon for pensIOn benefll for contract staff III the GAAP financial statements is E6035m dll to an mcrease in the rate of contribution required which was IdentIfied after the Funding Statement had been approved The aprarel1tly better out-tum under GAlu is for the reasons outlllled above including the availability of a n(m-re~~urring Illcome item lf E2649m arising on the sale of lane
In-ome at f 133m shows an mcrease of II06~o on the prevlou year ExpendIture at euro IS 9m represents an IIlcrease Llf 11 ~( D accounted for in pan by pay and other innation but also arises as a consequence of continuing devclopment suh as the progression of ne programmcs III Nursing Pham1Glcy Occupational Therapy and Speech amp Languag Thrapv
Capital Expenditure
Enhancement to thegt physical estate of the University continues to grow apace with th major building programme and equipment acquisilJon resulting 111 an Illestmelll ofell 86m lprevious veal E6ml A total of (5047m was reeivcd dunng the vear in the form of capital grants The FlEA contributed C7 21 m The balance of f2296rn was provided 1 other funding agencies and benefactors
Thc expenditure reflects the investment ID tht MedICaL Therapies and Nursing buildings on the Brookfield site which I hJC alread mClllC1ned as well as the Environmental Research Institute building the completion of the Glucksman Art
pWJect and the wint acqmsition of the irish Distillers SHe with the MerC University Hospital (Cork) Limited
Ctpltal expenditure continue5 to rely heavily on non-State fundmg In splle of the publication of the Kelly Repllr on U11lversIt capItal needs little or ill new building proleet fundmg hus been made available l1 spite of the strong case made in the Kelly Report Of mawr eoneem I tbe IJck of a Governmcnt deCIsion to finalise fundlllg for the InfonmlllUn Technohgy buildmg planned for the Greyhound Track itc on cstem Road
lt~ tIm ~middotontexl the U1llverSIl contl11ues tll bcnefIt from the fund-rals1l1g activities of Cork l]11lersity Foundauor Lm1Hed Once agam I express the LmerSli apprceiatJ(l] fur this 8UPP()r hich is vllal for the contllluin)C essentIal
development of Its infrastructure
lniersiry College Cork atilmal Lniycrsity of Ireland Cork
HOORARY TREASURERS REPORT
Start Gnlllt
III the ear under rCle State Grant contributed f-24i-6m a~ agall1st f7(gtCl5m in the preious VeaL Tbi reflects a
nKrt ll1creasc of 13 reilccllng tllc cxtraordlllar dcci-)(lD tn freeze cre State Grant in 2004 State Grams no clntnbutc ()8 orLnivers1ty income as against 3696 in the prejous vear
Fees PoJitY
Fcc ll1come no stands at f63445m and represent 2974deg of IOta incomc PrelOUS year were (3 79m ~llld 20 ~Ro IJ lnd-r the GovemIl1ent~ free fee~ inilial1Yt 11105t of the fees In r~spect of full-1inle undergraduate student trl1m Fe coumnes are paJd fClr by the State
maJor rccommendauon in the OECD report on Irish third ce1 education commisslOned by the Goemment and publtshcd 111 20(l4 ad(lcates the re-lDtroducuon (lj fees to be paid by students as a means of ecurlllg much needed addltwllal fundmg [or the univcrsJlie The Government has decided not to do so
Research income
Once agam I am happ to report furtber success on the generation of I11come from funded research grant~ and contracts Under the G-p convention research Income is reponed as recurrent Income exclusive of amounts received to be expended on equlpmenL The income figure for the year under reie is f4750 I111 or 22270 of total reCUlTent lllComc IprclOUS year figures were f41303m or 215 I ~l
TIllS ery satisfactory outcome is due (l the diligence and dedicalJon of large numhers of academlc staff who as pnncipal investigators generate this mcome Such income is no earned on a seriously competitive basis UCC has been sll1gularly successful in the competitive awards under the Programme for Research in Third Leel Institutions (PRTLl) and Science Foundation Ireland (SFI) programmes
I referred III my previom report w the slgl1lficant development arising on the establishment of a Centre for SCience Engineering and Technologv (CSET) under the aegi~ of SFI and the involvement therein of an indigenou~ spm-out c(mpany Alimentary Health Lll111ted this project continues to gro successfully Another more recent major
declopment is the secunng of funding suppol1 from SFI for the restructuring of malOr research functions preloush earned (ut under the of the NatlOnal Microelectronics Research Centre and of several academic depal1ment mcIudlllg Physic~ Electrlcal amp Electronic Engineering and IVllcroelectronic Engineering under a new organisationa structure Tvndall iational lnsutute
)cnsiuns
PensIOn costs are now a malor lssue in the economy generally and the university system 1 no exception The UCC
Pension Scheme in defmed henefil schemel whlCh applies to mosl stall is partIally funded There is a separate defined comnbutlon scheme for contract stafT The funding sltUallOn is thc subject of on-going d1scussions between the UlllersIles and the HEA In thIS context also the Issue relallng to the ccst (r pension proision for contract siaff pr(lided for II1 recent employment legIslation is of maJor conccm
In the ltlCCc)lll1ts under rCmiddotle there is for the firt ]111C a requlremenl to II1clude a of note the total hability of ~l
pen~wn fund calculated in a speClfic a as reqUIred ov Financ1al Reporting Standard 17 (FRS i i~ lth nwsl pellSlOn funds and pamcularl since the UCC ~chel11e IS a pal1ially funded one a significant deficiency is recorded HceVcT it must he noted that the partlcular method or lakulalJon rcqUlred FRS 1 - tend (l use antiCipated rate~ of rGlUm on penswn fund mvestment whieh arc coniderably lower than actually rcaltsed
Th iue of pensIOn fundmg will contll1ue ( be dlscusscd ith the H EA
The Future
The success of UCC in resear2h fundmg takes pla~e III the contet oj a huge llKreasc ]]l Stat lllestment oer the last
ears under the aegIS of the HEA and SfI fillS increase in hmdmg 1 m stark contrast to the pauett oi fundmg rlf recurrent purposes ThI dlsconnect I dinlcult to understand In the shOI1 term II means that the ll1creastd resc aClllt ansmg 011 liCCs success piaus huge demands 011 the Cniverils inadtquare mfrastructurc In the longer leTn
Luinrsity College Cork ational tni(rsity of Ireland Cork
HOORARY TREASLRERS REPORT
till un~ati~fatCry state of afralr~ lhreatem 0 damage the reqUIrement to pwdu2C young res~arehers w staff the future
re~ar~i1 need~ of the economy
I am ~Iare that there are on-golllg diSCUSSIOns takmg place between the uniersities and the State agencies 111 an cffon 0
~eure the neccsary funding already advocated by the Kelly Repon and the OEeD Report I referred tel above It I
onh way of a PC)SlllVe reponse (1 these ll1ltiaties will Ireland be able l0 develop the ul1Jersny system Jl needs to
sUIPClfl the need of our future SOCiCl)
In the meannme I am confident that III spite of the serioU5 finanCIal SltuatJOll now pertaining UCC will be well (1
It wk 1I1 suppDning the economic cultural and SOCIal dCHJopment of lrish S(CJCty~
Dennot 0 l1ahone l-IOI10ra Treasurer
Juh 2006
t niwrsin C011lt(1lt Cork ational tniYersity of Ireland Cork
S1TpoundIpoundT OF GOVERIIIG BODYS RESPOSIBILlTIES
The Ci0C11mg Bdy is required to comply iilb the Umvcrsitics Act 1QCl( and to keep in such form a5 nWi h ~pproved 11 t(darls um ArdOideachas all proper and usual lecounts of mOlle rccIvcd and expended by II
In preparing th0se accounts he G(iemmg Bod is required lc
bull s1ct suitable policies and then app them wnsIstcntly
bull 111ake Judgements lnd estimates thal are reasonable and prudellt
bull dIsclose md explain any matcnal departures from appk~able accC1ullting standards and
bull prepare the financial statements on the gCiing C0nCefl] basis unless It j- ll1appropnatC l(l presume that the lniverll will continue m (iperation
The GOcTnmg Body is responsible ror keeping proper books of account vrllch dIsclose with reasonabk accuran at any tilll the finmeial posItion of the UnIversIty and which enable l W ensure that Its fmancull statements comply WIth the ll1lrsities Act 1997 [he Statement of Recommended Practice on Accounting in Hlghcr Educallon InstltUllOnS and are prpared m accordance wIlh accounting standard generally accepted 111 Ireland
The Governing Bod i responsible for ensunng that the busmess of the University is conducted ill proper and regular manner and for safeguardlllg all assets under Its operatJOnal control and hence for taking reasonable steps for the pnYemion and detectlon of fraud and other irr~gtgulantles
Deloitte Dcicltte amp T()(lC~e ChJrtereu At (ountan) amp Resistered Audno~)
IDEPE1DENT ACDITORS REPORT TO THE GOYER1I1G BODY OF CiIYERSITY COLLEGE CORK
e hae audited the financial statements of unJcrsJty College Cork for thc vear ended 0 September 20(14 hich compnse th consclidated income and expenditure account the balance sheet of the Ul1Iversity and of the LJJllversJty and its sulJS1diary undertakings (the Group balance sheet) the consolidated cash flow statement the statment of total recognised gains and losses and the related notes 1 w 3 1 These finanCIal statementgt have been prepared under the accounting policies set out therein
Tl115 repon is made solely to the members of the Govemmg BodY of LJniversity College Cork as a body OUf
audn work has been undertaken so that we might state to the members of the Govemmg Body thos matters c state to them in our auditors repon and for no other purpose To the fullest extent permitted by law we dc not accept or assume responsibihty 10 anyone other than tbe member or the Govemmg Bod for our audit work lor this report or for the opinions we have formed
Respective responsibilities of the Governin~ Body and auditors The Govemmg Bodys responsibility for preparing the annual repon and the financial statements 11l
accordance WIth the umverSItles Act 1997 and wah 8ccountmg standard gencrall accepted Il1 Ireland l set out on page Il1 the statement of the Govemmg Bods responsibilities
Our respomibilit IS to audit the financial statements in accordance WIth relevant regulator requirements and lUdltll1g standards Issued by the auditmg Practices Board applIcahle in Ireland
We repon to yOU our opimon as te whether the financial statements gIve a true and i1ir ICW and are pwperiv prepared Ve report whether the finanCIal statements prepared in accordance with generally accepted accountll1g principles have been properly extracted from the books and records of the Universlv Ve state whether we have obtallled all the information and eplanatlons we consider necessary for the purposes of our audit
Basis of audit opinion We conducted our audJl II accordance with audltll1g standards Issued by the Audning Practices Board and generallv accepted in Ireland An audIt ll1c1udes examinatlon on a test basls of eVIdence releant to the amounts and disclosure m the finanCIal statements It also includes an assessment of the slgl1lficant estImates and judgements made b the members of the Govemll1g Bod III the preparation of the fll13nclal statements and of whether the accounting pohcies are appropriate (l the Universit circumstances cOl1SIQently applied and adequately disclosed
(COJ1linued on rhe lieXI page
MernJ(f Deloitte Touche Tohmatsu
Deloitte
t plannd and re~forrnd our audll so as W ontam al] tht mfCrn1G110n and explanatloflS whIch we
COflSldered necessar) m order [( provide u with sufficient cYlcience 10 rcaonahle assurance that the rinancxal statement 3re free from mmenal misstatement whether aused h fraud or other megularity 0
~ITOr 1n fOITmng our Opll1lOD we also evaluated the oyerall adequac) of the presentalon of informauon Hi [h~
financIal Slnemenrs
Qualified opinion arising from non lomplianc( with alcouIHillg and disclo~ure requirements of Statement of Standard Accounting Practice 24 Aclounting for Pension Costs
Til Cniverslt has not complIed with the accounllng and dIsclosure reqUlremellls of Statement of Standard
A~counl1ng Pral1cc 24 Accoummg for PenslOn COftS pamcularh m respect of pension supplementation 111
respect of mcreases III penSIOns payable It IS not pracllcable to quantify the impact of this non-complwnce
lll the reponed finanCIal position of th~ limversllY
fo~ the failure [e provide the dIsclosure aud the adlustmel1l that mIght have heen found tll be
necessary [( compiy Ith the accountmi2 and dIsclosure reqUIrements 0 Stllemem 01 Standard Accountmg Pracuc 4 in ou opimon the finanCIal tatements on pages 1 [(1 30 a true 3nd fair viev 0 the stale of Gflai-s of the UIllverSl and the Umversny Group at 3(l Septemher 2(l(i4 and of the deficit of the UmverSl Group for the year then euded and han heen prepGred lJ1 accordance WIth generally accepted accountmg
Dnnclples
- have obtamed all the mforrnanon and explanatIOns Wt consider necessary for the purposes of our audlL
III our opInIOn proper book of account hae been kept by the Ul1vcrsll The halance sheCI of the tll ersit 1 111 dffcemCll WIth the hook~ of account
Deloitte amp Touche l Lapp (lUi1V
Cork
Dare
Lninrsit~ College Cork ational Llliversity oflrcIand Cork
STA TElET OF ACCO(TIG POLICIES
The ~l=niflca1l accounting poiJies adopted b~ the UI1lVerSI are as f(lbws
Basi~ of preparation The fil1Jncwi statements have been prepared in accordance Wilh accounting standards generally accepted in Ireland md the SWltmenl of Recommended Praclice-Accountmg for Further and Highcr Education lnstltUlions ccountmg swnci1rds generally accepted in lreland in preparing financ131 statements a true and fair vie (Ire thOse publihed h the lnSmlc of Chartered ccoumants in Ireland and Issued hy the Ac~counl1ng Standards Board
ccounting convention The aCoullts hlve been preplred under the hIstorical cost C(11vcntwn modIfied h the reyalu1tion of certam land and hUlldmgs
Basis of consolidation The consolidated financial statements l11clude the li111verSl and llS suhsldlary undertakings and other undertakings 1ll
hi11 the Umverslt has a financial InteresL as indICated III nOll 11 The results of subsidianes acquired or dIsposed of dunng the penod are included in the consolidated Income and expendllure account from the date of acquisition (lr up te th~ dale of dIsposaL lntra-group sales and profits are climinatltd fully on consolidatlon
in accordance with FRS2 the actiities of the Students Umons have not heen consolJdated because the University docs not control those aCllvIlle The financial statements of Cork l111ersiry Foundatlon Limited Unicrsity Cork Ptnsion Fund and Trust Fund arc also excluded as they are not controlled by the Ljmcrsl
Rccognition of income Rc~urrent grants trom the Fhgher Education Authority an recognised 111 the period in which they are receivable
NL)n-rCcurrent grants from the Higher Educallon iuthority or other bodies receied in respect of the acqmsllion or -l]1struellon or fixed assets are treated a deferred capital grants and amonJsed III lllle with depreciation oer the life of thtmiddot asets
Income from research grants contracts and other se1ices rendered is Illcluded to the extent of the completion of the contract llr S(1ICe conecmed TillS is generally equivalent to the sum of the relevant expcndlture incurred during the year and any related contrihutions towards ocrheld costs Allmcome from sllOrt-tcrm deposas IS crcdlted to the income ll1J expendnurc account 111 the penod m wlllch 1l 1 eamed
ln~omc from endowments and donations IS l11cJuded to the extent of the relevant expendIture incurred dunng the yeaL together wah any related cnntributions toward overhead costs
Foreign currency translation TransactIOns denominated m foreIgn currencies are recorded at the rate of exchange ruling at the dates of the transaction Monetary assets and ilabilities denominated III foreIgn currencies arc transl3ted mtll euro eJlher at vear end rltes OL where there are related forward exchange contracts at contract rates The resultmg difference Ire dealt WIth in the determmalOIl of income and expenditure for the financial year
Tangible fixed assets
(a) Land and buildings The l)niverslty buildmgs arc valued at deprecIated replacement cost Land and buildl1g~ arc stated III the balall~c Sh-Cl at aluallon 011 the basis of depreciated replacement cost as they are specialised buildings and therefore it I~ not appropnate to value them 01 the basis of open market value The last aluarioll was carrid out on 3(1 September 1OQ-l The tniverlty has fixed the value of the Ind and huildlf]g~ a at 3( September 1994 as tIllS was the first veal of the implementatloll of generally lccepted accountng pnnciples in resped of Fixed ssets m presenting the fmanelal srawmcJ1Is of the lJi11versl1y Land and buildings acqulled SHlCC the vaiuation an included in the balance sheet at c(s Freehold land IS not depreciated FreelKtld huddings are deprecIated oel their expc~ted useful cconomlC hit Il the University of (1 ycars
llliersjt~ Colle Cork ationaI CniYersity of ireland Cork
STATEIE1 OF ACCOCTING POLICIES - coutinued
Tangihle fixed assets continued
(a I Land aud buildings - continued
here land and buildmgs are lcquired lth the ud of specIfic grants they are capItalIsed and deprecIated a aboe
The related grams are credIted Q a deferred capltai grant account and are released ((1 the IIlcomc and expenditure
account over the expected useful eCDnomlC llfc of the related asset on a basis consIstent with the depreciation POlICY
Fmancc costs hKh are directly attributable w the COl1structlOn of land and buildings are not capitalised as part of th cost ([ those Jssets
nlew for impJirment of a fixed asset is carned out If ecnts or changs in clrcumstanccs indIcate that the amount of the fixed asset may l1l)t be recocrable
Buildmgs under construction are accounted for at cost bascd on the Yllue of architect~ certificates and other direct ClqS mcurred to the financill velr end They are not dcpreewed until th(~ arc brought mto use
(ill Equipment 111 eqUlpment IS apnalised at cost Clpllaiised equIpment i depreCIated over Its useful economIc iife as fllows
Computer equipment 3 year~
Equipment 5 ye-ars
Where equipment is acquired with the aid of specific grams it is capitalised and depreCIated m accordance Ith the abo( policy with the related grant being credited to a defened capnal grant account and released to income and expendlfurc account over the expected useful economic life of the related equipment
Financial assets hxed asset Illvestments that arc listed on a reeogJ1lsed stock exchange are canied at market value The II1vestment 11 the
L lllverslfY T echnok)gv Centre PartnershIp has been revalued dunng the year to thc value u[ the tJniversl s share In the
plftnershlp Those that are not listed are canied at hIstorical cost less any proVIsion for impainnent in theIr value
Current a~sel in(~st1lents are included in the baiance sheet at the lower of their original cost and net reahsable value
Stocks Sto-b are Slated at the lower of their cost and net realisable alue -here necessary proVIsion is made for obsolete
skw mOing and defective Stock Expenditure incurred by tbe University on booki and consumable stocks finaned
(rc1m recunent grams are charged to the Income and Expenditure JccounL
Taxlltion -S an exempt charity thc University is not lIable for Corporation Tax or Income Tax on an ofns chantable actIVItIeS It b regIstered [or -alue Added Tax but smce the supply of edu~atlOn is an exempt acmity on whIch no output tax IS -harged Il IS unable to recover input tax on the maJonty of its purchases
Tradmg JclJvllles undertaken b the Cniversity an admllllstered through IlS subSIdiary compames whle11 as commerciai
(lrganisatlOns are hable to Corporation Tax
Liquid resources LIqUId reSlurcs include sums on short-term deposits with recugnlsed banks and buIlding societies and gocmmcm
SCUflllt=
Provisions ProvlslOns are recognised when the U1Ivcrslty has a present legal or eonslruclje oblIgatIOn as a result of a past event I 1 probable that j transfer cf economic benefit i11 be required to settic the oblIgation and il relIable CSlImate can be made
of the amount of the obligatIOn
tninrsity College Cork alional Cniersity of Ireland Cork
STATEIEiT OF ACCOl-TIiG POLICIES - continued
Pensiolls The CnlrsJ[ operates a diined benefit pensIon scheme Ililh assets held in a separately admll1islered fund The b~SIC rCl1rCmCDl pensions of Cniversit) staff are funded by comnbutiom 1(1 the ul1Iverst PensIOn Fund (the penion fund I
a a pre-determmed rate of penSIOnable pay Increases m baSIC retirement penSIOns hlch are pltlld through the pm101
fund arc repaid to the pensIOn fund by the umversity The penSlOl1 fund is valued acuarialh once III every three ears TiK las such alUatlOIl was carried OUI as at i October 2004
Pension benefits for ccnain other employees are met b pavlllems (1 a defined contribution pension scheme
CClllribullOns (ire charged to the income and expenditure account III the veal in willch th( fall duc
lllinrsity College Cork ational Cniversity of Ireland Cork
COSOLIDATED ICOME AD EXPEDlTCRE ACCOFT Year Ended 30 September 2004
1oles
Consolidattd 21104
pound000
Consolidated 2003
(OOll
Income
Srat rants
SlUJ~nl f~
Rs~arch grants and contract
AmortIsation of deferred capital grants
Olhr lpcrating income
Inters ll1ome
Ishy
4
~A~6
63-+4 4-01 II 1~Ibull ~ ___1
1831 7
7(0
~--3-q
11303
12AXO Q430
Total income 21 ~3(l~ IQ~ri~
Expenditure
Staff OSb
Olbr operallng expenses
DepreciatIon
Total expenditure
Deficit for the year after depreciatioll of assets before taxation
rJXJtion
Drfieit for the year after depreciation of assets and after taxation
Th~ d~jicit for the year aroe soleh from contInuing opcratiom
The fInancial ztatemems lln pages 8 w 3( were approvd the- G(YCn1111g Body on 1(l October 2006 and wer SIgned (l1
Its hehalf by
Signcd Professor Wrixon Dermot OMahoney Prcsldent j-llt)norar Treasurer
1
lnhersity College Cork ational blhersity of Ireland Cork
COSOLIDATED BAlACE SHEET 30 September 2004
otes
Consolidated
2004 CO(lO
2003 COOO
lnilrsit~
20()4 COOO
2lHl3 coou
Fhed assets
1 anglh Ie asset
Flnanci3 LSScl~ 10
11
Current assets
Swcks 12 314 351 291 3~)
Dchwr~ 1 L 32deg(11 1wCJRx 41206 J9~ J2
Ca~h al bank
3330- 5 ~37 41497 469]
Creditors AmOUlllS fallmg due wnhm nne
year (10UAX6) (76923)
et current liabilities
Total assets less current liabilities 301307 25C)6c)7 25756 114900
Creditors Amoums falling due after nne
vear l=
0 fC et assets 1(1)gt ll~flt 4 CHi4 A
123552Deferred capital grants
Represented by
Revenue rescrvcs C) 1l2396 (9750)
ReitJumion reserve If)
Total
The financwl mncmenb on pages ~ 10 3(1 were appr0cd bv the GOcming B0dv on ] () OCC1ber 20C6 and wcre OIl
I1s hehall
SIgned Professor Wrixon Dermot OMahoney Prcsidcnt Honorarv Treasurer
lninrsity College Cork ational lniycrsity of Ireland Cork
COSOLUHTED CASH FLOW STATEMENT OF HISTORIC COST SLRPLlSES AD DEFICITS Year Ended 30 September 004
h I~ 11) possihle to determine the difference hetween hlstoncal ost depreCHllion and the actual charge due w the facl thal
th 111ston~al cost infomlation IS not aailahl
STATDIET OF TOTAL RECOGISED GAIS AN)) LOSSES Year Ended 30 September ()()4
2004 fOOO
2003 fOOO
Defill all COlll1l1UIIlg operatIons after depre~lalon of assets at aluali(lfL
(t IsseIS and laX (2646)
Unrcdlsed surplus on revaluation of financial assets
Ttllal rcognised gail15 relatmg 10 the year
Reconciliation
126lCJO
gams (losses) for the year
Closmg resenes
lniHrsiry Colegt Cork alional Cniersity of I relund Cork
COSOLIDATED CASH FLOW STATE]lElT Year Ended 30 September 20(14
et cash outflow from operating activities
Returns on investments and seIleing of finance
expenditure and finanial mcstmem
e( cash outflow befon financing
Fmll1cmg
Decrease in cash in the period
Reconciliation of net cash flow to movement in net fundsdebt
Decrclse in cash m the period
Ctsh (luttlO from mcrease in debt and lease financmg
Change 111 nel debt resultlIlg from cashflows
on ash changes
(lemel1l 111 net debt in period
Cl debt at i October 2003
et ckbt CIt 30 September 2004
otes
24
21104 E()()O
(761)
( 18680
( 390U I
26
26
(341021
(0361)41---shy
lninrsity College Cork ational [niersit~ of Ireland Cork
ons TO THE ACCOCTS
Stale grants 20()4 2003 COOO COOO
)t1 grams allclcatcd for recurrent pllrrO~CS
Thc al-gt( gLlOt mome wa~ neclved from the Higher Educltlon Aulloril anc Ihe DcpanmeIH of J-kJllh amp Chldrell
2 Academic fees 200-1 2003 COOO CO()()
-cadcmic fee inccme
Total fces pale hy o[ on behalf of mdiyidual studems
- lOla ofC5073-lO 2003euro3084g(l23) lIlcluded in aCiJdemic icc income was pJld dIrectly by the lllgher Educalon uthorilY
Research grants and contracts
European Umon InduSlf
Other
-1 Other incollle
Other rental l11C(lme
Funded pClst lIlCOll1t
SlUdent rsidenccs 1OC0111C
Proflt on compulsory iJcqUlsition oj lands Profit on sale of lands Leisure facilitie InCOme
Demal IlOSPlliJl I1come
Other income
= Interest income
Inttres mcome
2()0-1 2U03 fOOO coon
3 i 078 023
3S33
2()0-1 2003 pound000 ClWO
19 ~()~ 3U5
391()
l(1Ci
(I(i
2213 X6(1
2305 2(
laquo242 UOCi
1 Sl i~
200~ 200J COOO COOU
6
tlliwrsi Colle[c Cork arional Lnhersity of Ireland Cork
OTES TO THE ACCOFTS - continued
Staff costs
rh~ 3Crage veekh number of perSClJ1S (mcludlllg senior jwsl-h(ldcrs) emploved by tht
cpresscd as full-urne equlalcm was
reahing and rsearch
TechmcJI
entral adnllnistraIon and serices
Other
Salaries and wages
Social welfare costs
Other pension costs
Other operating expenses
Consumables
BeaL light aler and power
Research consumables
R(palfS and general mailllcnallce
Audn and professional
Rent and rates
Other expenses
Other opcratmg expenses in~1 ude
Auditors remuneraIon
EXlcmal audit
Other seryices fro111 external audit
during the
UH4 umber
201)4
(000
119538
666
14LA7C)
2(1)4
(000
15A7 4 2603
1(L933 376
138 j
L531
2004 [000
cq
IF
2003 umber
1246
63
2003 fO()()
]05379
200] C(lIiO
2003 COOO
jll
1U-
14312
lnhersin Colle~( Cork arional lniversity of Ireland Cork
OTES TO THE ACCOtTS - continued
S Taxation
taXJllOll charge arises as the UlllvCrSll and il~ principal subndJar companies are exempt chantle and are not
hable for corporation tax or mcome tax on any of its charitabk actlvitles
I) Deficit on cOlltinuin~ operations for the year 20(14 2U(J3 [(IOU COOO
The deii-l on continuing operalJons for the vcar is made up a~ flllows
UniC~rslfS deficit for the vear
Surplus generated bv the subsidIary undenakmgs and transferred to the Univcrslt
Total
1
I uinlsity (olltj( (olk ~atiollall illi(rsil~ 01 Irdalltl Cork
NOI ES TO TilE A((OINTS
10 Tal~ihl( fix(d ass(ls
(( )NS()f J lgtAnl)
(0lt1 or valnation
At t ()cohcr200)
Additiotls
At
Is 311 21104
i)epncialioll
At 1 Oct(hcr 2(J03
(I Cd
tl) 2(11)1
Nrl hook aim
t I letobe WOJ
It Ill 211()4
fOlllillll((1
Land alld
hllildill~S
CHon
I 7ti6
57(iY
((l3)
379]
(() Ll
273I1U3
27350X
COIIIJlIII(middotr
(qlliplJI(lIt
(000
2(d~59
i23
1 JJ
2J 425
71 II
1434
4X39
EqllipllltlIl
COOO
iltU172 6+31
30514
9Y)()
20]X8
17331
Assets ill ((HI 1St or
COllstnldioll
ClUW
151)9
54512
109
Total
CIIOO
4IltX() 7Ui7
l) 1Yh2
IlI121
II
312(118
3(1)30
LamJ alld huiltiillll alld cquipnlCllt IIKludc assets valucd in Iljl)4 (In a dCpleCI1tet 1Cj111ccmcllt cosl hasis fL1 1lIOJ()) respectivelY land alld huildillils ami lssel in course (II cOllstructi(lil includes UX]X I IJ(IO
include C 51ltJ07()O() (lOll CJ1)I(lI()()()) in relatioll tn land and tile ACC(1l111tillg Standards Board Iliese land ami
ftilcsc buildillls IS that tlte
( ) nlccr oUTgt nUI(( I (~(() C127721J IO()) and CI 1 IlIeH 10 (2()(3
(11 Ii ecl(1ld Iaml willch is Iwl
The COlllllwlcial ellce of the trallsactiolls Slln
issued lire salv alld ulllllwtc
tll 1he lam] ami
~
--
- -
~
~
~
-
-=
shy
- = shy~
7
=-= -
Z
7 ~
~ - lt shy shy shy
shy
Z shy
Z
r X r
-
r
-= oJ c
= 0 ~
= -~-=
ti= ~
shy = =
~
~
t= Z
~
51
- Z ~ lt
0
r-~
(J n r--ltIoc r-
x
v ~ r l j r1 r- if
rr
T M rlt
r = j
= -j =
C
shy -
~ v ~ ~
shy shy
- - -
-0
lt - lt )
Z lt
1 0 x T x)C
F n ~
0middot1 r1~~
r -
r~
lt
0 lr ~ r1 n(1
l r~
ltj~
tniVCfsiry College Cork ttional Lniversiry of Ireland Cork
OTES TO THE ACC()l]TS - continued
11 Financial assets Consolid ated
2UO-l 2003 ((WO f(lOO
t nhersity 2004 2003
COOO COOO
InnSlInents at the veal end were held as follovs
( lthcr
3450
The investment in the Lmversllv Technology Centre Partnership ha~ been re31ued during the year tc the 3lue 0shythe Llmycrsny share inlhe partnership as at 31 December 2003
The tnhersity held an interest in the following subsidiary undertakings
Subsidhlry undertakings
Incorporated
Propem ianagement (LeC) Limited
Campm ccommOdali(111 C) Limned
Art Gallery (liCC) Limiled
Brcnard Limited
1ardykc LeIsure (U ce) Limited
At Ie Press Limited
(iivlC Holding~ Limlled
11 Stocks
Consumables
FIlllshed goods for resale
Prindplil activity
Property development
Accommodation rcntal
11 gallery
Leasing or lands
PublIshing
Dornnnt
Interest 0 0
J00
100
100
100
1(lOo
Consolidated
2004 2003 COOO (0110
65
Registered officeplace of business
City Chamhers 4
Cork
limversl1Y Cork Aestern Road Cork University Cork Vestern Road Cork University College Cork Western Road Cork liniversiry College Cork Western Road Cork Crawford Business Park Crosses Green Cork St Kildas Western Road Cork
Clliversity
O()4 2001 [(lOU COOO
36
fhere io no malcnal difference between the balance sheet amount of slOcks and Its replacement cost
13 Debtors
Trad- debtors
Res-arh grants and colllraCls receiabk
nwunts due from suhsldmrv undertakings
Slale gr~ml reciabk
(lther tJJtWIl and s(lcial Illsurancc
Other deotiJrs
C ollsolida ted Llliycrsif
2(104 2003 2004 200 [000 COOO COOO f(I00
S34 -Li06 67U
601 753 6015 j J0(
1~S26 766 12S~6
11 -- 3 f~ 51 t
lJ
~ q()l --l12(j( ~ ~
CnhlIsit~ College Cork ationallniersity of Ireland Cork
OTES TO THE CCOCTS - continued
1-1 Creditors Amounts fallillg due within Dill year Consolidated lnjyersit~
20114 2003 2004 2003 COOO COOO [000 C(lOU
Trad rcdjtor~ 7501 Cl295 (702
Research grants and contracts III advance I(i5 5 1150i 1U5~ -cademic fee~ receied in advance 11(1()4 QOM 110CJ4 ()01gt4
State grant receied m advance 118 I 1535 513~ Bank loans 8 overdrafts (note 16) 3O 39 416 1606 333~
Amounts owed to subsidiary undenakmgs -113 4SS~
Other taxatIOn and SOCIal security -+394 0 41 42()9 SAl (i
Deftrred incJll1e 19(3 9131
Other creditors 8 accruals lOOARA R9~~
15 Creditors Amounts falling due after one year Consolidated linivcrsi t)
200-1 2003 2004 20U3 ((lOO COOO (000 COOO
Bank loans (note 16) ~ 1 - -_-
16 Borrowings Consolidated University
2004 2003 2004 2003 (000 (000 fOOO (IOU
Bank loans and overdrafts
Bank loan and oerdrafts are repayable as follows
III one year or less 3073Q 41 6 8606 33~
O~(Between one and twe veal 221 1693 1ampshy
Between two ard 11 H years 872 (i 104 604Q 3+05
In fiC y~ar or more
TCHal 6360 1 3400( I ~~ ~
ature and Securiry of Borrowings stated tn Note 10 F1Xed Assets hae been accounted for in accordance with FRS 5 The ab[)vc liabilIl16 represent the uhimate lwbilitie to repurchase the assct~ concerned The borrowJI1gs arc secured bv title until the repurchae takes place
lniYlrsit Colleu ( Cork -ational lniversity of Ireland Cork
-OTES TO THE ACCOCTS - continued
1~ Deferred capital grants HEA
COOO
Other grants and
benefactors (000
Total
COOO
C olsolida ted
At 1 October 2003
BuJldmg~
EJuipment
Tota
414 45677 8-31
Cash received Buildmg
Equipment
Tolal
b53-l 153~5 -l U59
Released to income and expenditure
Buildmgs
Equipment
TClaj
1449 )
~
9~3
1-1 ---
) iii _) shy
1L~~~
At 3() Septemher 20()t
B u ild 1111
Equipmem
T pta I
66639
7(91
600 i 9
-09A
I 6-] ~
14UltC)
l ni(~rsit C olieo ( Cork arional Cnhersity of Ireland Cork
OTES TO THE ACCOl1TS - continued
1i Deferred capital grants continued HEA
(non
t niersity
At 1 October 21Hl3
B uil dlllb
Eqmpmem
Total
Cash received
Buddmggt EqUIpment
TOla
Released to income and expenditur( 1 1 7Buildmg )
Equipmcl1l
Total )S3
At 30 September 200
Buildll1g~ 61324
EqUlpmcm Tora (~=5
IS Revaluation reser( Consolidated
2004 2003 (lOO ((lOU
At 1 October as pcr nOle 10) 135940
Reuluatlons or inesrmerm in the penod InOle I 1
t W Serlember
Other gran IS Total and
henefactors (000 COOO
3515 -=37(J
81 2149
4465 7i ~
XXh(1
51627 112951
~65(1
6()
Lnjcrsity 200 20()3
f ono C 000
35040
lniYcrsiry Collegl Cork iarional Llliycrsit~ of Ireland Cork
iOTES TO THE ACCOl1TS - continued
1(J Reconciliation of movcment of reservcs Revenue Revaluation Total reserves reserves
COOO pound1000 ooo
Consolidattd
1 I October 211(0shy 6]90
D(bcll on comlllumg l)perations revaluation
I ( Septemher 20(14
middott I Octoher 2003 13940 126241
Deficll or eommumg operations revaluation
3( September 2004 1RR~]
W Contingencies
The U11lversil from tIme ll time is party to yariow legal proceedings The Offieers of the University havc been mlormed hy then legal advisors that it is not possibie at this time to make a rellable estimme of the finanCIal effects (if an~l of tiles cases
t 3( September 2004 a cO1ll1gent lIabIlity existed in respect of potential Value Added Tax in the amoum of C2 rmbon together with substantial potential imeresl and penalties This potentIa] habilItv was setllc~d in January 006 at a lesser amount and the effect on the Income and Expenditure -ecount is no material
21 Capital commitments Consolidatcd Univcrsity
2004 2003 2004 2003 (000 (000 COOO (000
Comracted for but nO promiddotided 69143
Authorised but not omracted out 18304 i 49]Q
tninrsity College Cork ationa lniversity of Ireland Cork
OTES TO THE AccorTS - (ontillucmiddotd
Reconciliation of consolidated operating deficit to net cash outflow from operating activities
Dilcit on conlJnuing operalJons afier depreciation of assets at valuatlOn Dcpr(clat10n D~fcfT(d apital grants released W income Proiit on dIsposal of tangible fixed as~ets D~rcase m stocks Increase m debtors
Drcflse m creditors
on cash changes lmerest receivable Imerest em Iiabiliy 10 Investors under FRS Increase m invcstment aluation
et cash outflow from opernt1l1g aClivilJes
23 Returns on inwstments and servicing of finance
Other lterest received Interes paid on habihty to investors under FRSS
ct cash inGow from returns on lllvestments and senlcing of finance
24 Capital expenditure and financial illYestment
iurh3se of tangible fixed assets Sak of tangible fixed assets (see note 10) Deferred capnal grants receIved
Net cash outflow from capital expendllure and finanClallllestmcm
2()l4
CIIOO
12(46) 1C) ~ 21
( 11253 ) (64 0 )
(]3006) f~(24)
15 (3011 11)62
11
( 14 361
2004 (000
301 ( 1(1621
7611
2004 C()(l()
S57 70(1
SC)4T
ISoRO
lniversit~ College Cork arional tniversity of Ireland Cork
OTES TO THE ACCOCTS - continued
15 Financing 200-1 (000
Dht due within ant year Drclse 111 shon term hononn~
Dent due lyand one year Increase in long tenl1 borw1I1g
1et -ash inflow frorr financing
26 nalsis of changes in net debt At CashOows Other At I October Non cash 30 September
2003 changes 2004 POOH (000 POOO COOO
C~sh 111 hand and at hank 5 3 9Z l)vcrdrafts
539( (21)5021
Deht due within I year (-US6) 1C)[9 (~37)
Debt due after J vear 62R) (19) (7241 Llabilll to invctors under FRS (125) (24231 i
125 163f()4iTCltal
27 Related parties
Transactions Jh suhsidlanes of the UlllversllY have been eillninated on consdidauon and 11(1 disclosure or these transactIOn has therefore been gIven The Lnlerslty had the following transactIOns with related panics on 1 DeCember 1995 Irish Universitl Student Trust entered into a twent five year lease or AnlS 113 Mac Lemn from Lmverslty College Cork at an annual rental dE44A4J pel annum The trustees oflnsh UnirSH Studem Trust are the PrerdenL Secreta and Bursar and Fllance Officer elf ljmvcrsll Cork
l ninrsit College Cork ationaJ lininrsit~ of Ireland Cork
OTES TO THE ACC01T5 - COli tinned
8 Pcnsions
3 ~ PenSIon for substantiaEy all employees are funded through a defined henefit pension schemelt
The lniwrsl oper3tes a defined henefit penSlOll scheme wllh assets held 111 a separately admmlstered fund The total pension cost w the UniversHy ltas f14J)-4 Q 4J (2003 f12(J]-~13L The Illost recen uctuanul
aluation as undenaken as at 1 Octoher 2004 hy consuting actuanes uS1l1g the attained age methodlt The
princIpal assumptIon used in the actuarial valuatlOn was that the long-term annual rale of return on 1I1vestment would exceedtbe mcrease 111 pensionable earnIngs by 2) The 1ens1On and Trust Funds are not included 1I1
the Balance Sheet hecause they arc funds w1111 a separate COHSlltu1l0n from the general assets and ltabilJtie~ of the t11lerSlllaquo
t the date of tbe last actuaria I valuation the market aluc of the scheme s assets was sufTiclCl1t to cover 9lt
of the accrued liabilitleslt based on currcnt eammgs and also allowlllg for expected future mcreascs m eammgslt
The ul1lversny also operates a defmed contributIon penslOn scheme that covers cenain empl(1yees of the
ul11ersirvlt The assets of the scheme are invested by independent trustees for the benefit of these emplovees
ContributIOns to tim pension scheme for the year amounted to C02(il15 (2003 fJ A4F788I
b Financial Reporting STandard 1- Retirement Bellefirs disclosures
The alual1on of the Superannuation Plan benefits for the purposes of FRS 10 disclosures was based on the
results of the actuanal valuation ~aITlcd out as at 0 1102004 suItably adjusted to ~Onr()m1 to the requirements
of FRS 1- The impact of the penSlOn obligations of benchmarkmg awards due but not vet paid has been
mcluded The financlal assumptions used w calulate the retIrement cbltgatJons under FRS I were as follows
2004 2003
Valuation method Projected Projected Luit Luit
Dicou11l rate ) JlOdeg) )lt50
In118tio11 rale 250deg(1 250middot
Satan 1I1lTeases LO 450deg()
PenSlOll Supplemel1latlon 350l~middott 350o (J
t nhersity Coll(ge Cork gtational Lniversity of Ireland Cork
gtOTpound5 TO THE ACCOlgtTS continued
b Financial ReporrillK Standard 1- Rctircmcnr Bcncfirs discloswc (coltinued)
Th market value of the assets 111 the penSIOn schenk the expected rates of return and the hllgallOns as at 300920(11 togethe WIth the pnor vear arc ShC11 belo
2004 2003 cooo coon
Equities ~ ~5deg iJ 11Q708 800 1~346
Bonds -f ~()(I( 22456 150[0 lfd29
PropertY 65degu ImiddotUP 00( 14330
)Clsh 21 O()~() 2]0
TOW market alue of assets 1GL933 166623
Actual Value of Labilny
PenSlun Deficll
Related deferred tax Iiabiit~
et PellSlOn Llabi hty
Analysis of the amount that would have heen charg(d HI operating profit under FRS 17 is as foil () s
2004 2003 COOO (000
Curren Selce Cost 1710 1
Past SeTyice Cost
Tow Operatmg Charge
Analysis of the amount that would lUlVe been credited to other finance income under FRS]7 is as
follows
2004 2003 (000 COOIl
retum 011 s-heme asct~ 1U104
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
lniersiry College Cork atilmal Lniycrsity of Ireland Cork
HOORARY TREASURERS REPORT
Start Gnlllt
III the ear under rCle State Grant contributed f-24i-6m a~ agall1st f7(gtCl5m in the preious VeaL Tbi reflects a
nKrt ll1creasc of 13 reilccllng tllc cxtraordlllar dcci-)(lD tn freeze cre State Grant in 2004 State Grams no clntnbutc ()8 orLnivers1ty income as against 3696 in the prejous vear
Fees PoJitY
Fcc ll1come no stands at f63445m and represent 2974deg of IOta incomc PrelOUS year were (3 79m ~llld 20 ~Ro IJ lnd-r the GovemIl1ent~ free fee~ inilial1Yt 11105t of the fees In r~spect of full-1inle undergraduate student trl1m Fe coumnes are paJd fClr by the State
maJor rccommendauon in the OECD report on Irish third ce1 education commisslOned by the Goemment and publtshcd 111 20(l4 ad(lcates the re-lDtroducuon (lj fees to be paid by students as a means of ecurlllg much needed addltwllal fundmg [or the univcrsJlie The Government has decided not to do so
Research income
Once agam I am happ to report furtber success on the generation of I11come from funded research grant~ and contracts Under the G-p convention research Income is reponed as recurrent Income exclusive of amounts received to be expended on equlpmenL The income figure for the year under reie is f4750 I111 or 22270 of total reCUlTent lllComc IprclOUS year figures were f41303m or 215 I ~l
TIllS ery satisfactory outcome is due (l the diligence and dedicalJon of large numhers of academlc staff who as pnncipal investigators generate this mcome Such income is no earned on a seriously competitive basis UCC has been sll1gularly successful in the competitive awards under the Programme for Research in Third Leel Institutions (PRTLl) and Science Foundation Ireland (SFI) programmes
I referred III my previom report w the slgl1lficant development arising on the establishment of a Centre for SCience Engineering and Technologv (CSET) under the aegi~ of SFI and the involvement therein of an indigenou~ spm-out c(mpany Alimentary Health Lll111ted this project continues to gro successfully Another more recent major
declopment is the secunng of funding suppol1 from SFI for the restructuring of malOr research functions preloush earned (ut under the of the NatlOnal Microelectronics Research Centre and of several academic depal1ment mcIudlllg Physic~ Electrlcal amp Electronic Engineering and IVllcroelectronic Engineering under a new organisationa structure Tvndall iational lnsutute
)cnsiuns
PensIOn costs are now a malor lssue in the economy generally and the university system 1 no exception The UCC
Pension Scheme in defmed henefil schemel whlCh applies to mosl stall is partIally funded There is a separate defined comnbutlon scheme for contract stafT The funding sltUallOn is thc subject of on-going d1scussions between the UlllersIles and the HEA In thIS context also the Issue relallng to the ccst (r pension proision for contract siaff pr(lided for II1 recent employment legIslation is of maJor conccm
In the ltlCCc)lll1ts under rCmiddotle there is for the firt ]111C a requlremenl to II1clude a of note the total hability of ~l
pen~wn fund calculated in a speClfic a as reqUIred ov Financ1al Reporting Standard 17 (FRS i i~ lth nwsl pellSlOn funds and pamcularl since the UCC ~chel11e IS a pal1ially funded one a significant deficiency is recorded HceVcT it must he noted that the partlcular method or lakulalJon rcqUlred FRS 1 - tend (l use antiCipated rate~ of rGlUm on penswn fund mvestment whieh arc coniderably lower than actually rcaltsed
Th iue of pensIOn fundmg will contll1ue ( be dlscusscd ith the H EA
The Future
The success of UCC in resear2h fundmg takes pla~e III the contet oj a huge llKreasc ]]l Stat lllestment oer the last
ears under the aegIS of the HEA and SfI fillS increase in hmdmg 1 m stark contrast to the pauett oi fundmg rlf recurrent purposes ThI dlsconnect I dinlcult to understand In the shOI1 term II means that the ll1creastd resc aClllt ansmg 011 liCCs success piaus huge demands 011 the Cniverils inadtquare mfrastructurc In the longer leTn
Luinrsity College Cork ational tni(rsity of Ireland Cork
HOORARY TREASLRERS REPORT
till un~ati~fatCry state of afralr~ lhreatem 0 damage the reqUIrement to pwdu2C young res~arehers w staff the future
re~ar~i1 need~ of the economy
I am ~Iare that there are on-golllg diSCUSSIOns takmg place between the uniersities and the State agencies 111 an cffon 0
~eure the neccsary funding already advocated by the Kelly Repon and the OEeD Report I referred tel above It I
onh way of a PC)SlllVe reponse (1 these ll1ltiaties will Ireland be able l0 develop the ul1Jersny system Jl needs to
sUIPClfl the need of our future SOCiCl)
In the meannme I am confident that III spite of the serioU5 finanCIal SltuatJOll now pertaining UCC will be well (1
It wk 1I1 suppDning the economic cultural and SOCIal dCHJopment of lrish S(CJCty~
Dennot 0 l1ahone l-IOI10ra Treasurer
Juh 2006
t niwrsin C011lt(1lt Cork ational tniYersity of Ireland Cork
S1TpoundIpoundT OF GOVERIIIG BODYS RESPOSIBILlTIES
The Ci0C11mg Bdy is required to comply iilb the Umvcrsitics Act 1QCl( and to keep in such form a5 nWi h ~pproved 11 t(darls um ArdOideachas all proper and usual lecounts of mOlle rccIvcd and expended by II
In preparing th0se accounts he G(iemmg Bod is required lc
bull s1ct suitable policies and then app them wnsIstcntly
bull 111ake Judgements lnd estimates thal are reasonable and prudellt
bull dIsclose md explain any matcnal departures from appk~able accC1ullting standards and
bull prepare the financial statements on the gCiing C0nCefl] basis unless It j- ll1appropnatC l(l presume that the lniverll will continue m (iperation
The GOcTnmg Body is responsible ror keeping proper books of account vrllch dIsclose with reasonabk accuran at any tilll the finmeial posItion of the UnIversIty and which enable l W ensure that Its fmancull statements comply WIth the ll1lrsities Act 1997 [he Statement of Recommended Practice on Accounting in Hlghcr Educallon InstltUllOnS and are prpared m accordance wIlh accounting standard generally accepted 111 Ireland
The Governing Bod i responsible for ensunng that the busmess of the University is conducted ill proper and regular manner and for safeguardlllg all assets under Its operatJOnal control and hence for taking reasonable steps for the pnYemion and detectlon of fraud and other irr~gtgulantles
Deloitte Dcicltte amp T()(lC~e ChJrtereu At (ountan) amp Resistered Audno~)
IDEPE1DENT ACDITORS REPORT TO THE GOYER1I1G BODY OF CiIYERSITY COLLEGE CORK
e hae audited the financial statements of unJcrsJty College Cork for thc vear ended 0 September 20(14 hich compnse th consclidated income and expenditure account the balance sheet of the Ul1Iversity and of the LJJllversJty and its sulJS1diary undertakings (the Group balance sheet) the consolidated cash flow statement the statment of total recognised gains and losses and the related notes 1 w 3 1 These finanCIal statementgt have been prepared under the accounting policies set out therein
Tl115 repon is made solely to the members of the Govemmg BodY of LJniversity College Cork as a body OUf
audn work has been undertaken so that we might state to the members of the Govemmg Body thos matters c state to them in our auditors repon and for no other purpose To the fullest extent permitted by law we dc not accept or assume responsibihty 10 anyone other than tbe member or the Govemmg Bod for our audit work lor this report or for the opinions we have formed
Respective responsibilities of the Governin~ Body and auditors The Govemmg Bodys responsibility for preparing the annual repon and the financial statements 11l
accordance WIth the umverSItles Act 1997 and wah 8ccountmg standard gencrall accepted Il1 Ireland l set out on page Il1 the statement of the Govemmg Bods responsibilities
Our respomibilit IS to audit the financial statements in accordance WIth relevant regulator requirements and lUdltll1g standards Issued by the auditmg Practices Board applIcahle in Ireland
We repon to yOU our opimon as te whether the financial statements gIve a true and i1ir ICW and are pwperiv prepared Ve report whether the finanCIal statements prepared in accordance with generally accepted accountll1g principles have been properly extracted from the books and records of the Universlv Ve state whether we have obtallled all the information and eplanatlons we consider necessary for the purposes of our audit
Basis of audit opinion We conducted our audJl II accordance with audltll1g standards Issued by the Audning Practices Board and generallv accepted in Ireland An audIt ll1c1udes examinatlon on a test basls of eVIdence releant to the amounts and disclosure m the finanCIal statements It also includes an assessment of the slgl1lficant estImates and judgements made b the members of the Govemll1g Bod III the preparation of the fll13nclal statements and of whether the accounting pohcies are appropriate (l the Universit circumstances cOl1SIQently applied and adequately disclosed
(COJ1linued on rhe lieXI page
MernJ(f Deloitte Touche Tohmatsu
Deloitte
t plannd and re~forrnd our audll so as W ontam al] tht mfCrn1G110n and explanatloflS whIch we
COflSldered necessar) m order [( provide u with sufficient cYlcience 10 rcaonahle assurance that the rinancxal statement 3re free from mmenal misstatement whether aused h fraud or other megularity 0
~ITOr 1n fOITmng our Opll1lOD we also evaluated the oyerall adequac) of the presentalon of informauon Hi [h~
financIal Slnemenrs
Qualified opinion arising from non lomplianc( with alcouIHillg and disclo~ure requirements of Statement of Standard Accounting Practice 24 Aclounting for Pension Costs
Til Cniverslt has not complIed with the accounllng and dIsclosure reqUlremellls of Statement of Standard
A~counl1ng Pral1cc 24 Accoummg for PenslOn COftS pamcularh m respect of pension supplementation 111
respect of mcreases III penSIOns payable It IS not pracllcable to quantify the impact of this non-complwnce
lll the reponed finanCIal position of th~ limversllY
fo~ the failure [e provide the dIsclosure aud the adlustmel1l that mIght have heen found tll be
necessary [( compiy Ith the accountmi2 and dIsclosure reqUIrements 0 Stllemem 01 Standard Accountmg Pracuc 4 in ou opimon the finanCIal tatements on pages 1 [(1 30 a true 3nd fair viev 0 the stale of Gflai-s of the UIllverSl and the Umversny Group at 3(l Septemher 2(l(i4 and of the deficit of the UmverSl Group for the year then euded and han heen prepGred lJ1 accordance WIth generally accepted accountmg
Dnnclples
- have obtamed all the mforrnanon and explanatIOns Wt consider necessary for the purposes of our audlL
III our opInIOn proper book of account hae been kept by the Ul1vcrsll The halance sheCI of the tll ersit 1 111 dffcemCll WIth the hook~ of account
Deloitte amp Touche l Lapp (lUi1V
Cork
Dare
Lninrsit~ College Cork ational Llliversity oflrcIand Cork
STA TElET OF ACCO(TIG POLICIES
The ~l=niflca1l accounting poiJies adopted b~ the UI1lVerSI are as f(lbws
Basi~ of preparation The fil1Jncwi statements have been prepared in accordance Wilh accounting standards generally accepted in Ireland md the SWltmenl of Recommended Praclice-Accountmg for Further and Highcr Education lnstltUlions ccountmg swnci1rds generally accepted in lreland in preparing financ131 statements a true and fair vie (Ire thOse publihed h the lnSmlc of Chartered ccoumants in Ireland and Issued hy the Ac~counl1ng Standards Board
ccounting convention The aCoullts hlve been preplred under the hIstorical cost C(11vcntwn modIfied h the reyalu1tion of certam land and hUlldmgs
Basis of consolidation The consolidated financial statements l11clude the li111verSl and llS suhsldlary undertakings and other undertakings 1ll
hi11 the Umverslt has a financial InteresL as indICated III nOll 11 The results of subsidianes acquired or dIsposed of dunng the penod are included in the consolidated Income and expendllure account from the date of acquisition (lr up te th~ dale of dIsposaL lntra-group sales and profits are climinatltd fully on consolidatlon
in accordance with FRS2 the actiities of the Students Umons have not heen consolJdated because the University docs not control those aCllvIlle The financial statements of Cork l111ersiry Foundatlon Limited Unicrsity Cork Ptnsion Fund and Trust Fund arc also excluded as they are not controlled by the Ljmcrsl
Rccognition of income Rc~urrent grants trom the Fhgher Education Authority an recognised 111 the period in which they are receivable
NL)n-rCcurrent grants from the Higher Educallon iuthority or other bodies receied in respect of the acqmsllion or -l]1struellon or fixed assets are treated a deferred capital grants and amonJsed III lllle with depreciation oer the life of thtmiddot asets
Income from research grants contracts and other se1ices rendered is Illcluded to the extent of the completion of the contract llr S(1ICe conecmed TillS is generally equivalent to the sum of the relevant expcndlture incurred during the year and any related contrihutions towards ocrheld costs Allmcome from sllOrt-tcrm deposas IS crcdlted to the income ll1J expendnurc account 111 the penod m wlllch 1l 1 eamed
ln~omc from endowments and donations IS l11cJuded to the extent of the relevant expendIture incurred dunng the yeaL together wah any related cnntributions toward overhead costs
Foreign currency translation TransactIOns denominated m foreIgn currencies are recorded at the rate of exchange ruling at the dates of the transaction Monetary assets and ilabilities denominated III foreIgn currencies arc transl3ted mtll euro eJlher at vear end rltes OL where there are related forward exchange contracts at contract rates The resultmg difference Ire dealt WIth in the determmalOIl of income and expenditure for the financial year
Tangible fixed assets
(a) Land and buildings The l)niverslty buildmgs arc valued at deprecIated replacement cost Land and buildl1g~ arc stated III the balall~c Sh-Cl at aluallon 011 the basis of depreciated replacement cost as they are specialised buildings and therefore it I~ not appropnate to value them 01 the basis of open market value The last aluarioll was carrid out on 3(1 September 1OQ-l The tniverlty has fixed the value of the Ind and huildlf]g~ a at 3( September 1994 as tIllS was the first veal of the implementatloll of generally lccepted accountng pnnciples in resped of Fixed ssets m presenting the fmanelal srawmcJ1Is of the lJi11versl1y Land and buildings acqulled SHlCC the vaiuation an included in the balance sheet at c(s Freehold land IS not depreciated FreelKtld huddings are deprecIated oel their expc~ted useful cconomlC hit Il the University of (1 ycars
llliersjt~ Colle Cork ationaI CniYersity of ireland Cork
STATEIE1 OF ACCOCTING POLICIES - coutinued
Tangihle fixed assets continued
(a I Land aud buildings - continued
here land and buildmgs are lcquired lth the ud of specIfic grants they are capItalIsed and deprecIated a aboe
The related grams are credIted Q a deferred capltai grant account and are released ((1 the IIlcomc and expenditure
account over the expected useful eCDnomlC llfc of the related asset on a basis consIstent with the depreciation POlICY
Fmancc costs hKh are directly attributable w the COl1structlOn of land and buildings are not capitalised as part of th cost ([ those Jssets
nlew for impJirment of a fixed asset is carned out If ecnts or changs in clrcumstanccs indIcate that the amount of the fixed asset may l1l)t be recocrable
Buildmgs under construction are accounted for at cost bascd on the Yllue of architect~ certificates and other direct ClqS mcurred to the financill velr end They are not dcpreewed until th(~ arc brought mto use
(ill Equipment 111 eqUlpment IS apnalised at cost Clpllaiised equIpment i depreCIated over Its useful economIc iife as fllows
Computer equipment 3 year~
Equipment 5 ye-ars
Where equipment is acquired with the aid of specific grams it is capitalised and depreCIated m accordance Ith the abo( policy with the related grant being credited to a defened capnal grant account and released to income and expendlfurc account over the expected useful economic life of the related equipment
Financial assets hxed asset Illvestments that arc listed on a reeogJ1lsed stock exchange are canied at market value The II1vestment 11 the
L lllverslfY T echnok)gv Centre PartnershIp has been revalued dunng the year to thc value u[ the tJniversl s share In the
plftnershlp Those that are not listed are canied at hIstorical cost less any proVIsion for impainnent in theIr value
Current a~sel in(~st1lents are included in the baiance sheet at the lower of their original cost and net reahsable value
Stocks Sto-b are Slated at the lower of their cost and net realisable alue -here necessary proVIsion is made for obsolete
skw mOing and defective Stock Expenditure incurred by tbe University on booki and consumable stocks finaned
(rc1m recunent grams are charged to the Income and Expenditure JccounL
Taxlltion -S an exempt charity thc University is not lIable for Corporation Tax or Income Tax on an ofns chantable actIVItIeS It b regIstered [or -alue Added Tax but smce the supply of edu~atlOn is an exempt acmity on whIch no output tax IS -harged Il IS unable to recover input tax on the maJonty of its purchases
Tradmg JclJvllles undertaken b the Cniversity an admllllstered through IlS subSIdiary compames whle11 as commerciai
(lrganisatlOns are hable to Corporation Tax
Liquid resources LIqUId reSlurcs include sums on short-term deposits with recugnlsed banks and buIlding societies and gocmmcm
SCUflllt=
Provisions ProvlslOns are recognised when the U1Ivcrslty has a present legal or eonslruclje oblIgatIOn as a result of a past event I 1 probable that j transfer cf economic benefit i11 be required to settic the oblIgation and il relIable CSlImate can be made
of the amount of the obligatIOn
tninrsity College Cork alional Cniersity of Ireland Cork
STATEIEiT OF ACCOl-TIiG POLICIES - continued
Pensiolls The CnlrsJ[ operates a diined benefit pensIon scheme Ililh assets held in a separately admll1islered fund The b~SIC rCl1rCmCDl pensions of Cniversit) staff are funded by comnbutiom 1(1 the ul1Iverst PensIOn Fund (the penion fund I
a a pre-determmed rate of penSIOnable pay Increases m baSIC retirement penSIOns hlch are pltlld through the pm101
fund arc repaid to the pensIOn fund by the umversity The penSlOl1 fund is valued acuarialh once III every three ears TiK las such alUatlOIl was carried OUI as at i October 2004
Pension benefits for ccnain other employees are met b pavlllems (1 a defined contribution pension scheme
CClllribullOns (ire charged to the income and expenditure account III the veal in willch th( fall duc
lllinrsity College Cork ational Cniversity of Ireland Cork
COSOLIDATED ICOME AD EXPEDlTCRE ACCOFT Year Ended 30 September 2004
1oles
Consolidattd 21104
pound000
Consolidated 2003
(OOll
Income
Srat rants
SlUJ~nl f~
Rs~arch grants and contract
AmortIsation of deferred capital grants
Olhr lpcrating income
Inters ll1ome
Ishy
4
~A~6
63-+4 4-01 II 1~Ibull ~ ___1
1831 7
7(0
~--3-q
11303
12AXO Q430
Total income 21 ~3(l~ IQ~ri~
Expenditure
Staff OSb
Olbr operallng expenses
DepreciatIon
Total expenditure
Deficit for the year after depreciatioll of assets before taxation
rJXJtion
Drfieit for the year after depreciation of assets and after taxation
Th~ d~jicit for the year aroe soleh from contInuing opcratiom
The fInancial ztatemems lln pages 8 w 3( were approvd the- G(YCn1111g Body on 1(l October 2006 and wer SIgned (l1
Its hehalf by
Signcd Professor Wrixon Dermot OMahoney Prcsldent j-llt)norar Treasurer
1
lnhersity College Cork ational blhersity of Ireland Cork
COSOLIDATED BAlACE SHEET 30 September 2004
otes
Consolidated
2004 CO(lO
2003 COOO
lnilrsit~
20()4 COOO
2lHl3 coou
Fhed assets
1 anglh Ie asset
Flnanci3 LSScl~ 10
11
Current assets
Swcks 12 314 351 291 3~)
Dchwr~ 1 L 32deg(11 1wCJRx 41206 J9~ J2
Ca~h al bank
3330- 5 ~37 41497 469]
Creditors AmOUlllS fallmg due wnhm nne
year (10UAX6) (76923)
et current liabilities
Total assets less current liabilities 301307 25C)6c)7 25756 114900
Creditors Amoums falling due after nne
vear l=
0 fC et assets 1(1)gt ll~flt 4 CHi4 A
123552Deferred capital grants
Represented by
Revenue rescrvcs C) 1l2396 (9750)
ReitJumion reserve If)
Total
The financwl mncmenb on pages ~ 10 3(1 were appr0cd bv the GOcming B0dv on ] () OCC1ber 20C6 and wcre OIl
I1s hehall
SIgned Professor Wrixon Dermot OMahoney Prcsidcnt Honorarv Treasurer
lninrsity College Cork ational lniycrsity of Ireland Cork
COSOLUHTED CASH FLOW STATEMENT OF HISTORIC COST SLRPLlSES AD DEFICITS Year Ended 30 September 004
h I~ 11) possihle to determine the difference hetween hlstoncal ost depreCHllion and the actual charge due w the facl thal
th 111ston~al cost infomlation IS not aailahl
STATDIET OF TOTAL RECOGISED GAIS AN)) LOSSES Year Ended 30 September ()()4
2004 fOOO
2003 fOOO
Defill all COlll1l1UIIlg operatIons after depre~lalon of assets at aluali(lfL
(t IsseIS and laX (2646)
Unrcdlsed surplus on revaluation of financial assets
Ttllal rcognised gail15 relatmg 10 the year
Reconciliation
126lCJO
gams (losses) for the year
Closmg resenes
lniHrsiry Colegt Cork alional Cniersity of I relund Cork
COSOLIDATED CASH FLOW STATE]lElT Year Ended 30 September 20(14
et cash outflow from operating activities
Returns on investments and seIleing of finance
expenditure and finanial mcstmem
e( cash outflow befon financing
Fmll1cmg
Decrease in cash in the period
Reconciliation of net cash flow to movement in net fundsdebt
Decrclse in cash m the period
Ctsh (luttlO from mcrease in debt and lease financmg
Change 111 nel debt resultlIlg from cashflows
on ash changes
(lemel1l 111 net debt in period
Cl debt at i October 2003
et ckbt CIt 30 September 2004
otes
24
21104 E()()O
(761)
( 18680
( 390U I
26
26
(341021
(0361)41---shy
lninrsity College Cork ational [niersit~ of Ireland Cork
ons TO THE ACCOCTS
Stale grants 20()4 2003 COOO COOO
)t1 grams allclcatcd for recurrent pllrrO~CS
Thc al-gt( gLlOt mome wa~ neclved from the Higher Educltlon Aulloril anc Ihe DcpanmeIH of J-kJllh amp Chldrell
2 Academic fees 200-1 2003 COOO CO()()
-cadcmic fee inccme
Total fces pale hy o[ on behalf of mdiyidual studems
- lOla ofC5073-lO 2003euro3084g(l23) lIlcluded in aCiJdemic icc income was pJld dIrectly by the lllgher Educalon uthorilY
Research grants and contracts
European Umon InduSlf
Other
-1 Other incollle
Other rental l11C(lme
Funded pClst lIlCOll1t
SlUdent rsidenccs 1OC0111C
Proflt on compulsory iJcqUlsition oj lands Profit on sale of lands Leisure facilitie InCOme
Demal IlOSPlliJl I1come
Other income
= Interest income
Inttres mcome
2()0-1 2U03 fOOO coon
3 i 078 023
3S33
2()0-1 2003 pound000 ClWO
19 ~()~ 3U5
391()
l(1Ci
(I(i
2213 X6(1
2305 2(
laquo242 UOCi
1 Sl i~
200~ 200J COOO COOU
6
tlliwrsi Colle[c Cork arional Lnhersity of Ireland Cork
OTES TO THE ACCOFTS - continued
Staff costs
rh~ 3Crage veekh number of perSClJ1S (mcludlllg senior jwsl-h(ldcrs) emploved by tht
cpresscd as full-urne equlalcm was
reahing and rsearch
TechmcJI
entral adnllnistraIon and serices
Other
Salaries and wages
Social welfare costs
Other pension costs
Other operating expenses
Consumables
BeaL light aler and power
Research consumables
R(palfS and general mailllcnallce
Audn and professional
Rent and rates
Other expenses
Other opcratmg expenses in~1 ude
Auditors remuneraIon
EXlcmal audit
Other seryices fro111 external audit
during the
UH4 umber
201)4
(000
119538
666
14LA7C)
2(1)4
(000
15A7 4 2603
1(L933 376
138 j
L531
2004 [000
cq
IF
2003 umber
1246
63
2003 fO()()
]05379
200] C(lIiO
2003 COOO
jll
1U-
14312
lnhersin Colle~( Cork arional lniversity of Ireland Cork
OTES TO THE ACCOtTS - continued
S Taxation
taXJllOll charge arises as the UlllvCrSll and il~ principal subndJar companies are exempt chantle and are not
hable for corporation tax or mcome tax on any of its charitabk actlvitles
I) Deficit on cOlltinuin~ operations for the year 20(14 2U(J3 [(IOU COOO
The deii-l on continuing operalJons for the vcar is made up a~ flllows
UniC~rslfS deficit for the vear
Surplus generated bv the subsidIary undenakmgs and transferred to the Univcrslt
Total
1
I uinlsity (olltj( (olk ~atiollall illi(rsil~ 01 Irdalltl Cork
NOI ES TO TilE A((OINTS
10 Tal~ihl( fix(d ass(ls
(( )NS()f J lgtAnl)
(0lt1 or valnation
At t ()cohcr200)
Additiotls
At
Is 311 21104
i)epncialioll
At 1 Oct(hcr 2(J03
(I Cd
tl) 2(11)1
Nrl hook aim
t I letobe WOJ
It Ill 211()4
fOlllillll((1
Land alld
hllildill~S
CHon
I 7ti6
57(iY
((l3)
379]
(() Ll
273I1U3
27350X
COIIIJlIII(middotr
(qlliplJI(lIt
(000
2(d~59
i23
1 JJ
2J 425
71 II
1434
4X39
EqllipllltlIl
COOO
iltU172 6+31
30514
9Y)()
20]X8
17331
Assets ill ((HI 1St or
COllstnldioll
ClUW
151)9
54512
109
Total
CIIOO
4IltX() 7Ui7
l) 1Yh2
IlI121
II
312(118
3(1)30
LamJ alld huiltiillll alld cquipnlCllt IIKludc assets valucd in Iljl)4 (In a dCpleCI1tet 1Cj111ccmcllt cosl hasis fL1 1lIOJ()) respectivelY land alld huildillils ami lssel in course (II cOllstructi(lil includes UX]X I IJ(IO
include C 51ltJ07()O() (lOll CJ1)I(lI()()()) in relatioll tn land and tile ACC(1l111tillg Standards Board Iliese land ami
ftilcsc buildillls IS that tlte
( ) nlccr oUTgt nUI(( I (~(() C127721J IO()) and CI 1 IlIeH 10 (2()(3
(11 Ii ecl(1ld Iaml willch is Iwl
The COlllllwlcial ellce of the trallsactiolls Slln
issued lire salv alld ulllllwtc
tll 1he lam] ami
~
--
- -
~
~
~
-
-=
shy
- = shy~
7
=-= -
Z
7 ~
~ - lt shy shy shy
shy
Z shy
Z
r X r
-
r
-= oJ c
= 0 ~
= -~-=
ti= ~
shy = =
~
~
t= Z
~
51
- Z ~ lt
0
r-~
(J n r--ltIoc r-
x
v ~ r l j r1 r- if
rr
T M rlt
r = j
= -j =
C
shy -
~ v ~ ~
shy shy
- - -
-0
lt - lt )
Z lt
1 0 x T x)C
F n ~
0middot1 r1~~
r -
r~
lt
0 lr ~ r1 n(1
l r~
ltj~
tniVCfsiry College Cork ttional Lniversiry of Ireland Cork
OTES TO THE ACC()l]TS - continued
11 Financial assets Consolid ated
2UO-l 2003 ((WO f(lOO
t nhersity 2004 2003
COOO COOO
InnSlInents at the veal end were held as follovs
( lthcr
3450
The investment in the Lmversllv Technology Centre Partnership ha~ been re31ued during the year tc the 3lue 0shythe Llmycrsny share inlhe partnership as at 31 December 2003
The tnhersity held an interest in the following subsidiary undertakings
Subsidhlry undertakings
Incorporated
Propem ianagement (LeC) Limited
Campm ccommOdali(111 C) Limned
Art Gallery (liCC) Limiled
Brcnard Limited
1ardykc LeIsure (U ce) Limited
At Ie Press Limited
(iivlC Holding~ Limlled
11 Stocks
Consumables
FIlllshed goods for resale
Prindplil activity
Property development
Accommodation rcntal
11 gallery
Leasing or lands
PublIshing
Dornnnt
Interest 0 0
J00
100
100
100
1(lOo
Consolidated
2004 2003 COOO (0110
65
Registered officeplace of business
City Chamhers 4
Cork
limversl1Y Cork Aestern Road Cork University Cork Vestern Road Cork University College Cork Western Road Cork liniversiry College Cork Western Road Cork Crawford Business Park Crosses Green Cork St Kildas Western Road Cork
Clliversity
O()4 2001 [(lOU COOO
36
fhere io no malcnal difference between the balance sheet amount of slOcks and Its replacement cost
13 Debtors
Trad- debtors
Res-arh grants and colllraCls receiabk
nwunts due from suhsldmrv undertakings
Slale gr~ml reciabk
(lther tJJtWIl and s(lcial Illsurancc
Other deotiJrs
C ollsolida ted Llliycrsif
2(104 2003 2004 200 [000 COOO COOO f(I00
S34 -Li06 67U
601 753 6015 j J0(
1~S26 766 12S~6
11 -- 3 f~ 51 t
lJ
~ q()l --l12(j( ~ ~
CnhlIsit~ College Cork ationallniersity of Ireland Cork
OTES TO THE CCOCTS - continued
1-1 Creditors Amounts fallillg due within Dill year Consolidated lnjyersit~
20114 2003 2004 2003 COOO COOO [000 C(lOU
Trad rcdjtor~ 7501 Cl295 (702
Research grants and contracts III advance I(i5 5 1150i 1U5~ -cademic fee~ receied in advance 11(1()4 QOM 110CJ4 ()01gt4
State grant receied m advance 118 I 1535 513~ Bank loans 8 overdrafts (note 16) 3O 39 416 1606 333~
Amounts owed to subsidiary undenakmgs -113 4SS~
Other taxatIOn and SOCIal security -+394 0 41 42()9 SAl (i
Deftrred incJll1e 19(3 9131
Other creditors 8 accruals lOOARA R9~~
15 Creditors Amounts falling due after one year Consolidated linivcrsi t)
200-1 2003 2004 20U3 ((lOO COOO (000 COOO
Bank loans (note 16) ~ 1 - -_-
16 Borrowings Consolidated University
2004 2003 2004 2003 (000 (000 fOOO (IOU
Bank loans and overdrafts
Bank loan and oerdrafts are repayable as follows
III one year or less 3073Q 41 6 8606 33~
O~(Between one and twe veal 221 1693 1ampshy
Between two ard 11 H years 872 (i 104 604Q 3+05
In fiC y~ar or more
TCHal 6360 1 3400( I ~~ ~
ature and Securiry of Borrowings stated tn Note 10 F1Xed Assets hae been accounted for in accordance with FRS 5 The ab[)vc liabilIl16 represent the uhimate lwbilitie to repurchase the assct~ concerned The borrowJI1gs arc secured bv title until the repurchae takes place
lniYlrsit Colleu ( Cork -ational lniversity of Ireland Cork
-OTES TO THE ACCOCTS - continued
1~ Deferred capital grants HEA
COOO
Other grants and
benefactors (000
Total
COOO
C olsolida ted
At 1 October 2003
BuJldmg~
EJuipment
Tota
414 45677 8-31
Cash received Buildmg
Equipment
Tolal
b53-l 153~5 -l U59
Released to income and expenditure
Buildmgs
Equipment
TClaj
1449 )
~
9~3
1-1 ---
) iii _) shy
1L~~~
At 3() Septemher 20()t
B u ild 1111
Equipmem
T pta I
66639
7(91
600 i 9
-09A
I 6-] ~
14UltC)
l ni(~rsit C olieo ( Cork arional Cnhersity of Ireland Cork
OTES TO THE ACCOl1TS - continued
1i Deferred capital grants continued HEA
(non
t niersity
At 1 October 21Hl3
B uil dlllb
Eqmpmem
Total
Cash received
Buddmggt EqUIpment
TOla
Released to income and expenditur( 1 1 7Buildmg )
Equipmcl1l
Total )S3
At 30 September 200
Buildll1g~ 61324
EqUlpmcm Tora (~=5
IS Revaluation reser( Consolidated
2004 2003 (lOO ((lOU
At 1 October as pcr nOle 10) 135940
Reuluatlons or inesrmerm in the penod InOle I 1
t W Serlember
Other gran IS Total and
henefactors (000 COOO
3515 -=37(J
81 2149
4465 7i ~
XXh(1
51627 112951
~65(1
6()
Lnjcrsity 200 20()3
f ono C 000
35040
lniYcrsiry Collegl Cork iarional Llliycrsit~ of Ireland Cork
iOTES TO THE ACCOl1TS - continued
1(J Reconciliation of movcment of reservcs Revenue Revaluation Total reserves reserves
COOO pound1000 ooo
Consolidattd
1 I October 211(0shy 6]90
D(bcll on comlllumg l)perations revaluation
I ( Septemher 20(14
middott I Octoher 2003 13940 126241
Deficll or eommumg operations revaluation
3( September 2004 1RR~]
W Contingencies
The U11lversil from tIme ll time is party to yariow legal proceedings The Offieers of the University havc been mlormed hy then legal advisors that it is not possibie at this time to make a rellable estimme of the finanCIal effects (if an~l of tiles cases
t 3( September 2004 a cO1ll1gent lIabIlity existed in respect of potential Value Added Tax in the amoum of C2 rmbon together with substantial potential imeresl and penalties This potentIa] habilItv was setllc~d in January 006 at a lesser amount and the effect on the Income and Expenditure -ecount is no material
21 Capital commitments Consolidatcd Univcrsity
2004 2003 2004 2003 (000 (000 COOO (000
Comracted for but nO promiddotided 69143
Authorised but not omracted out 18304 i 49]Q
tninrsity College Cork ationa lniversity of Ireland Cork
OTES TO THE AccorTS - (ontillucmiddotd
Reconciliation of consolidated operating deficit to net cash outflow from operating activities
Dilcit on conlJnuing operalJons afier depreciation of assets at valuatlOn Dcpr(clat10n D~fcfT(d apital grants released W income Proiit on dIsposal of tangible fixed as~ets D~rcase m stocks Increase m debtors
Drcflse m creditors
on cash changes lmerest receivable Imerest em Iiabiliy 10 Investors under FRS Increase m invcstment aluation
et cash outflow from opernt1l1g aClivilJes
23 Returns on inwstments and servicing of finance
Other lterest received Interes paid on habihty to investors under FRSS
ct cash inGow from returns on lllvestments and senlcing of finance
24 Capital expenditure and financial illYestment
iurh3se of tangible fixed assets Sak of tangible fixed assets (see note 10) Deferred capnal grants receIved
Net cash outflow from capital expendllure and finanClallllestmcm
2()l4
CIIOO
12(46) 1C) ~ 21
( 11253 ) (64 0 )
(]3006) f~(24)
15 (3011 11)62
11
( 14 361
2004 (000
301 ( 1(1621
7611
2004 C()(l()
S57 70(1
SC)4T
ISoRO
lniversit~ College Cork arional tniversity of Ireland Cork
OTES TO THE ACCOCTS - continued
15 Financing 200-1 (000
Dht due within ant year Drclse 111 shon term hononn~
Dent due lyand one year Increase in long tenl1 borw1I1g
1et -ash inflow frorr financing
26 nalsis of changes in net debt At CashOows Other At I October Non cash 30 September
2003 changes 2004 POOH (000 POOO COOO
C~sh 111 hand and at hank 5 3 9Z l)vcrdrafts
539( (21)5021
Deht due within I year (-US6) 1C)[9 (~37)
Debt due after J vear 62R) (19) (7241 Llabilll to invctors under FRS (125) (24231 i
125 163f()4iTCltal
27 Related parties
Transactions Jh suhsidlanes of the UlllversllY have been eillninated on consdidauon and 11(1 disclosure or these transactIOn has therefore been gIven The Lnlerslty had the following transactIOns with related panics on 1 DeCember 1995 Irish Universitl Student Trust entered into a twent five year lease or AnlS 113 Mac Lemn from Lmverslty College Cork at an annual rental dE44A4J pel annum The trustees oflnsh UnirSH Studem Trust are the PrerdenL Secreta and Bursar and Fllance Officer elf ljmvcrsll Cork
l ninrsit College Cork ationaJ lininrsit~ of Ireland Cork
OTES TO THE ACC01T5 - COli tinned
8 Pcnsions
3 ~ PenSIon for substantiaEy all employees are funded through a defined henefit pension schemelt
The lniwrsl oper3tes a defined henefit penSlOll scheme wllh assets held 111 a separately admmlstered fund The total pension cost w the UniversHy ltas f14J)-4 Q 4J (2003 f12(J]-~13L The Illost recen uctuanul
aluation as undenaken as at 1 Octoher 2004 hy consuting actuanes uS1l1g the attained age methodlt The
princIpal assumptIon used in the actuarial valuatlOn was that the long-term annual rale of return on 1I1vestment would exceedtbe mcrease 111 pensionable earnIngs by 2) The 1ens1On and Trust Funds are not included 1I1
the Balance Sheet hecause they arc funds w1111 a separate COHSlltu1l0n from the general assets and ltabilJtie~ of the t11lerSlllaquo
t the date of tbe last actuaria I valuation the market aluc of the scheme s assets was sufTiclCl1t to cover 9lt
of the accrued liabilitleslt based on currcnt eammgs and also allowlllg for expected future mcreascs m eammgslt
The ul1lversny also operates a defmed contributIon penslOn scheme that covers cenain empl(1yees of the
ul11ersirvlt The assets of the scheme are invested by independent trustees for the benefit of these emplovees
ContributIOns to tim pension scheme for the year amounted to C02(il15 (2003 fJ A4F788I
b Financial Reporting STandard 1- Retirement Bellefirs disclosures
The alual1on of the Superannuation Plan benefits for the purposes of FRS 10 disclosures was based on the
results of the actuanal valuation ~aITlcd out as at 0 1102004 suItably adjusted to ~Onr()m1 to the requirements
of FRS 1- The impact of the penSlOn obligations of benchmarkmg awards due but not vet paid has been
mcluded The financlal assumptions used w calulate the retIrement cbltgatJons under FRS I were as follows
2004 2003
Valuation method Projected Projected Luit Luit
Dicou11l rate ) JlOdeg) )lt50
In118tio11 rale 250deg(1 250middot
Satan 1I1lTeases LO 450deg()
PenSlOll Supplemel1latlon 350l~middott 350o (J
t nhersity Coll(ge Cork gtational Lniversity of Ireland Cork
gtOTpound5 TO THE ACCOlgtTS continued
b Financial ReporrillK Standard 1- Rctircmcnr Bcncfirs discloswc (coltinued)
Th market value of the assets 111 the penSIOn schenk the expected rates of return and the hllgallOns as at 300920(11 togethe WIth the pnor vear arc ShC11 belo
2004 2003 cooo coon
Equities ~ ~5deg iJ 11Q708 800 1~346
Bonds -f ~()(I( 22456 150[0 lfd29
PropertY 65degu ImiddotUP 00( 14330
)Clsh 21 O()~() 2]0
TOW market alue of assets 1GL933 166623
Actual Value of Labilny
PenSlun Deficll
Related deferred tax Iiabiit~
et PellSlOn Llabi hty
Analysis of the amount that would have heen charg(d HI operating profit under FRS 17 is as foil () s
2004 2003 COOO (000
Curren Selce Cost 1710 1
Past SeTyice Cost
Tow Operatmg Charge
Analysis of the amount that would lUlVe been credited to other finance income under FRS]7 is as
follows
2004 2003 (000 COOIl
retum 011 s-heme asct~ 1U104
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
Luinrsity College Cork ational tni(rsity of Ireland Cork
HOORARY TREASLRERS REPORT
till un~ati~fatCry state of afralr~ lhreatem 0 damage the reqUIrement to pwdu2C young res~arehers w staff the future
re~ar~i1 need~ of the economy
I am ~Iare that there are on-golllg diSCUSSIOns takmg place between the uniersities and the State agencies 111 an cffon 0
~eure the neccsary funding already advocated by the Kelly Repon and the OEeD Report I referred tel above It I
onh way of a PC)SlllVe reponse (1 these ll1ltiaties will Ireland be able l0 develop the ul1Jersny system Jl needs to
sUIPClfl the need of our future SOCiCl)
In the meannme I am confident that III spite of the serioU5 finanCIal SltuatJOll now pertaining UCC will be well (1
It wk 1I1 suppDning the economic cultural and SOCIal dCHJopment of lrish S(CJCty~
Dennot 0 l1ahone l-IOI10ra Treasurer
Juh 2006
t niwrsin C011lt(1lt Cork ational tniYersity of Ireland Cork
S1TpoundIpoundT OF GOVERIIIG BODYS RESPOSIBILlTIES
The Ci0C11mg Bdy is required to comply iilb the Umvcrsitics Act 1QCl( and to keep in such form a5 nWi h ~pproved 11 t(darls um ArdOideachas all proper and usual lecounts of mOlle rccIvcd and expended by II
In preparing th0se accounts he G(iemmg Bod is required lc
bull s1ct suitable policies and then app them wnsIstcntly
bull 111ake Judgements lnd estimates thal are reasonable and prudellt
bull dIsclose md explain any matcnal departures from appk~able accC1ullting standards and
bull prepare the financial statements on the gCiing C0nCefl] basis unless It j- ll1appropnatC l(l presume that the lniverll will continue m (iperation
The GOcTnmg Body is responsible ror keeping proper books of account vrllch dIsclose with reasonabk accuran at any tilll the finmeial posItion of the UnIversIty and which enable l W ensure that Its fmancull statements comply WIth the ll1lrsities Act 1997 [he Statement of Recommended Practice on Accounting in Hlghcr Educallon InstltUllOnS and are prpared m accordance wIlh accounting standard generally accepted 111 Ireland
The Governing Bod i responsible for ensunng that the busmess of the University is conducted ill proper and regular manner and for safeguardlllg all assets under Its operatJOnal control and hence for taking reasonable steps for the pnYemion and detectlon of fraud and other irr~gtgulantles
Deloitte Dcicltte amp T()(lC~e ChJrtereu At (ountan) amp Resistered Audno~)
IDEPE1DENT ACDITORS REPORT TO THE GOYER1I1G BODY OF CiIYERSITY COLLEGE CORK
e hae audited the financial statements of unJcrsJty College Cork for thc vear ended 0 September 20(14 hich compnse th consclidated income and expenditure account the balance sheet of the Ul1Iversity and of the LJJllversJty and its sulJS1diary undertakings (the Group balance sheet) the consolidated cash flow statement the statment of total recognised gains and losses and the related notes 1 w 3 1 These finanCIal statementgt have been prepared under the accounting policies set out therein
Tl115 repon is made solely to the members of the Govemmg BodY of LJniversity College Cork as a body OUf
audn work has been undertaken so that we might state to the members of the Govemmg Body thos matters c state to them in our auditors repon and for no other purpose To the fullest extent permitted by law we dc not accept or assume responsibihty 10 anyone other than tbe member or the Govemmg Bod for our audit work lor this report or for the opinions we have formed
Respective responsibilities of the Governin~ Body and auditors The Govemmg Bodys responsibility for preparing the annual repon and the financial statements 11l
accordance WIth the umverSItles Act 1997 and wah 8ccountmg standard gencrall accepted Il1 Ireland l set out on page Il1 the statement of the Govemmg Bods responsibilities
Our respomibilit IS to audit the financial statements in accordance WIth relevant regulator requirements and lUdltll1g standards Issued by the auditmg Practices Board applIcahle in Ireland
We repon to yOU our opimon as te whether the financial statements gIve a true and i1ir ICW and are pwperiv prepared Ve report whether the finanCIal statements prepared in accordance with generally accepted accountll1g principles have been properly extracted from the books and records of the Universlv Ve state whether we have obtallled all the information and eplanatlons we consider necessary for the purposes of our audit
Basis of audit opinion We conducted our audJl II accordance with audltll1g standards Issued by the Audning Practices Board and generallv accepted in Ireland An audIt ll1c1udes examinatlon on a test basls of eVIdence releant to the amounts and disclosure m the finanCIal statements It also includes an assessment of the slgl1lficant estImates and judgements made b the members of the Govemll1g Bod III the preparation of the fll13nclal statements and of whether the accounting pohcies are appropriate (l the Universit circumstances cOl1SIQently applied and adequately disclosed
(COJ1linued on rhe lieXI page
MernJ(f Deloitte Touche Tohmatsu
Deloitte
t plannd and re~forrnd our audll so as W ontam al] tht mfCrn1G110n and explanatloflS whIch we
COflSldered necessar) m order [( provide u with sufficient cYlcience 10 rcaonahle assurance that the rinancxal statement 3re free from mmenal misstatement whether aused h fraud or other megularity 0
~ITOr 1n fOITmng our Opll1lOD we also evaluated the oyerall adequac) of the presentalon of informauon Hi [h~
financIal Slnemenrs
Qualified opinion arising from non lomplianc( with alcouIHillg and disclo~ure requirements of Statement of Standard Accounting Practice 24 Aclounting for Pension Costs
Til Cniverslt has not complIed with the accounllng and dIsclosure reqUlremellls of Statement of Standard
A~counl1ng Pral1cc 24 Accoummg for PenslOn COftS pamcularh m respect of pension supplementation 111
respect of mcreases III penSIOns payable It IS not pracllcable to quantify the impact of this non-complwnce
lll the reponed finanCIal position of th~ limversllY
fo~ the failure [e provide the dIsclosure aud the adlustmel1l that mIght have heen found tll be
necessary [( compiy Ith the accountmi2 and dIsclosure reqUIrements 0 Stllemem 01 Standard Accountmg Pracuc 4 in ou opimon the finanCIal tatements on pages 1 [(1 30 a true 3nd fair viev 0 the stale of Gflai-s of the UIllverSl and the Umversny Group at 3(l Septemher 2(l(i4 and of the deficit of the UmverSl Group for the year then euded and han heen prepGred lJ1 accordance WIth generally accepted accountmg
Dnnclples
- have obtamed all the mforrnanon and explanatIOns Wt consider necessary for the purposes of our audlL
III our opInIOn proper book of account hae been kept by the Ul1vcrsll The halance sheCI of the tll ersit 1 111 dffcemCll WIth the hook~ of account
Deloitte amp Touche l Lapp (lUi1V
Cork
Dare
Lninrsit~ College Cork ational Llliversity oflrcIand Cork
STA TElET OF ACCO(TIG POLICIES
The ~l=niflca1l accounting poiJies adopted b~ the UI1lVerSI are as f(lbws
Basi~ of preparation The fil1Jncwi statements have been prepared in accordance Wilh accounting standards generally accepted in Ireland md the SWltmenl of Recommended Praclice-Accountmg for Further and Highcr Education lnstltUlions ccountmg swnci1rds generally accepted in lreland in preparing financ131 statements a true and fair vie (Ire thOse publihed h the lnSmlc of Chartered ccoumants in Ireland and Issued hy the Ac~counl1ng Standards Board
ccounting convention The aCoullts hlve been preplred under the hIstorical cost C(11vcntwn modIfied h the reyalu1tion of certam land and hUlldmgs
Basis of consolidation The consolidated financial statements l11clude the li111verSl and llS suhsldlary undertakings and other undertakings 1ll
hi11 the Umverslt has a financial InteresL as indICated III nOll 11 The results of subsidianes acquired or dIsposed of dunng the penod are included in the consolidated Income and expendllure account from the date of acquisition (lr up te th~ dale of dIsposaL lntra-group sales and profits are climinatltd fully on consolidatlon
in accordance with FRS2 the actiities of the Students Umons have not heen consolJdated because the University docs not control those aCllvIlle The financial statements of Cork l111ersiry Foundatlon Limited Unicrsity Cork Ptnsion Fund and Trust Fund arc also excluded as they are not controlled by the Ljmcrsl
Rccognition of income Rc~urrent grants trom the Fhgher Education Authority an recognised 111 the period in which they are receivable
NL)n-rCcurrent grants from the Higher Educallon iuthority or other bodies receied in respect of the acqmsllion or -l]1struellon or fixed assets are treated a deferred capital grants and amonJsed III lllle with depreciation oer the life of thtmiddot asets
Income from research grants contracts and other se1ices rendered is Illcluded to the extent of the completion of the contract llr S(1ICe conecmed TillS is generally equivalent to the sum of the relevant expcndlture incurred during the year and any related contrihutions towards ocrheld costs Allmcome from sllOrt-tcrm deposas IS crcdlted to the income ll1J expendnurc account 111 the penod m wlllch 1l 1 eamed
ln~omc from endowments and donations IS l11cJuded to the extent of the relevant expendIture incurred dunng the yeaL together wah any related cnntributions toward overhead costs
Foreign currency translation TransactIOns denominated m foreIgn currencies are recorded at the rate of exchange ruling at the dates of the transaction Monetary assets and ilabilities denominated III foreIgn currencies arc transl3ted mtll euro eJlher at vear end rltes OL where there are related forward exchange contracts at contract rates The resultmg difference Ire dealt WIth in the determmalOIl of income and expenditure for the financial year
Tangible fixed assets
(a) Land and buildings The l)niverslty buildmgs arc valued at deprecIated replacement cost Land and buildl1g~ arc stated III the balall~c Sh-Cl at aluallon 011 the basis of depreciated replacement cost as they are specialised buildings and therefore it I~ not appropnate to value them 01 the basis of open market value The last aluarioll was carrid out on 3(1 September 1OQ-l The tniverlty has fixed the value of the Ind and huildlf]g~ a at 3( September 1994 as tIllS was the first veal of the implementatloll of generally lccepted accountng pnnciples in resped of Fixed ssets m presenting the fmanelal srawmcJ1Is of the lJi11versl1y Land and buildings acqulled SHlCC the vaiuation an included in the balance sheet at c(s Freehold land IS not depreciated FreelKtld huddings are deprecIated oel their expc~ted useful cconomlC hit Il the University of (1 ycars
llliersjt~ Colle Cork ationaI CniYersity of ireland Cork
STATEIE1 OF ACCOCTING POLICIES - coutinued
Tangihle fixed assets continued
(a I Land aud buildings - continued
here land and buildmgs are lcquired lth the ud of specIfic grants they are capItalIsed and deprecIated a aboe
The related grams are credIted Q a deferred capltai grant account and are released ((1 the IIlcomc and expenditure
account over the expected useful eCDnomlC llfc of the related asset on a basis consIstent with the depreciation POlICY
Fmancc costs hKh are directly attributable w the COl1structlOn of land and buildings are not capitalised as part of th cost ([ those Jssets
nlew for impJirment of a fixed asset is carned out If ecnts or changs in clrcumstanccs indIcate that the amount of the fixed asset may l1l)t be recocrable
Buildmgs under construction are accounted for at cost bascd on the Yllue of architect~ certificates and other direct ClqS mcurred to the financill velr end They are not dcpreewed until th(~ arc brought mto use
(ill Equipment 111 eqUlpment IS apnalised at cost Clpllaiised equIpment i depreCIated over Its useful economIc iife as fllows
Computer equipment 3 year~
Equipment 5 ye-ars
Where equipment is acquired with the aid of specific grams it is capitalised and depreCIated m accordance Ith the abo( policy with the related grant being credited to a defened capnal grant account and released to income and expendlfurc account over the expected useful economic life of the related equipment
Financial assets hxed asset Illvestments that arc listed on a reeogJ1lsed stock exchange are canied at market value The II1vestment 11 the
L lllverslfY T echnok)gv Centre PartnershIp has been revalued dunng the year to thc value u[ the tJniversl s share In the
plftnershlp Those that are not listed are canied at hIstorical cost less any proVIsion for impainnent in theIr value
Current a~sel in(~st1lents are included in the baiance sheet at the lower of their original cost and net reahsable value
Stocks Sto-b are Slated at the lower of their cost and net realisable alue -here necessary proVIsion is made for obsolete
skw mOing and defective Stock Expenditure incurred by tbe University on booki and consumable stocks finaned
(rc1m recunent grams are charged to the Income and Expenditure JccounL
Taxlltion -S an exempt charity thc University is not lIable for Corporation Tax or Income Tax on an ofns chantable actIVItIeS It b regIstered [or -alue Added Tax but smce the supply of edu~atlOn is an exempt acmity on whIch no output tax IS -harged Il IS unable to recover input tax on the maJonty of its purchases
Tradmg JclJvllles undertaken b the Cniversity an admllllstered through IlS subSIdiary compames whle11 as commerciai
(lrganisatlOns are hable to Corporation Tax
Liquid resources LIqUId reSlurcs include sums on short-term deposits with recugnlsed banks and buIlding societies and gocmmcm
SCUflllt=
Provisions ProvlslOns are recognised when the U1Ivcrslty has a present legal or eonslruclje oblIgatIOn as a result of a past event I 1 probable that j transfer cf economic benefit i11 be required to settic the oblIgation and il relIable CSlImate can be made
of the amount of the obligatIOn
tninrsity College Cork alional Cniersity of Ireland Cork
STATEIEiT OF ACCOl-TIiG POLICIES - continued
Pensiolls The CnlrsJ[ operates a diined benefit pensIon scheme Ililh assets held in a separately admll1islered fund The b~SIC rCl1rCmCDl pensions of Cniversit) staff are funded by comnbutiom 1(1 the ul1Iverst PensIOn Fund (the penion fund I
a a pre-determmed rate of penSIOnable pay Increases m baSIC retirement penSIOns hlch are pltlld through the pm101
fund arc repaid to the pensIOn fund by the umversity The penSlOl1 fund is valued acuarialh once III every three ears TiK las such alUatlOIl was carried OUI as at i October 2004
Pension benefits for ccnain other employees are met b pavlllems (1 a defined contribution pension scheme
CClllribullOns (ire charged to the income and expenditure account III the veal in willch th( fall duc
lllinrsity College Cork ational Cniversity of Ireland Cork
COSOLIDATED ICOME AD EXPEDlTCRE ACCOFT Year Ended 30 September 2004
1oles
Consolidattd 21104
pound000
Consolidated 2003
(OOll
Income
Srat rants
SlUJ~nl f~
Rs~arch grants and contract
AmortIsation of deferred capital grants
Olhr lpcrating income
Inters ll1ome
Ishy
4
~A~6
63-+4 4-01 II 1~Ibull ~ ___1
1831 7
7(0
~--3-q
11303
12AXO Q430
Total income 21 ~3(l~ IQ~ri~
Expenditure
Staff OSb
Olbr operallng expenses
DepreciatIon
Total expenditure
Deficit for the year after depreciatioll of assets before taxation
rJXJtion
Drfieit for the year after depreciation of assets and after taxation
Th~ d~jicit for the year aroe soleh from contInuing opcratiom
The fInancial ztatemems lln pages 8 w 3( were approvd the- G(YCn1111g Body on 1(l October 2006 and wer SIgned (l1
Its hehalf by
Signcd Professor Wrixon Dermot OMahoney Prcsldent j-llt)norar Treasurer
1
lnhersity College Cork ational blhersity of Ireland Cork
COSOLIDATED BAlACE SHEET 30 September 2004
otes
Consolidated
2004 CO(lO
2003 COOO
lnilrsit~
20()4 COOO
2lHl3 coou
Fhed assets
1 anglh Ie asset
Flnanci3 LSScl~ 10
11
Current assets
Swcks 12 314 351 291 3~)
Dchwr~ 1 L 32deg(11 1wCJRx 41206 J9~ J2
Ca~h al bank
3330- 5 ~37 41497 469]
Creditors AmOUlllS fallmg due wnhm nne
year (10UAX6) (76923)
et current liabilities
Total assets less current liabilities 301307 25C)6c)7 25756 114900
Creditors Amoums falling due after nne
vear l=
0 fC et assets 1(1)gt ll~flt 4 CHi4 A
123552Deferred capital grants
Represented by
Revenue rescrvcs C) 1l2396 (9750)
ReitJumion reserve If)
Total
The financwl mncmenb on pages ~ 10 3(1 were appr0cd bv the GOcming B0dv on ] () OCC1ber 20C6 and wcre OIl
I1s hehall
SIgned Professor Wrixon Dermot OMahoney Prcsidcnt Honorarv Treasurer
lninrsity College Cork ational lniycrsity of Ireland Cork
COSOLUHTED CASH FLOW STATEMENT OF HISTORIC COST SLRPLlSES AD DEFICITS Year Ended 30 September 004
h I~ 11) possihle to determine the difference hetween hlstoncal ost depreCHllion and the actual charge due w the facl thal
th 111ston~al cost infomlation IS not aailahl
STATDIET OF TOTAL RECOGISED GAIS AN)) LOSSES Year Ended 30 September ()()4
2004 fOOO
2003 fOOO
Defill all COlll1l1UIIlg operatIons after depre~lalon of assets at aluali(lfL
(t IsseIS and laX (2646)
Unrcdlsed surplus on revaluation of financial assets
Ttllal rcognised gail15 relatmg 10 the year
Reconciliation
126lCJO
gams (losses) for the year
Closmg resenes
lniHrsiry Colegt Cork alional Cniersity of I relund Cork
COSOLIDATED CASH FLOW STATE]lElT Year Ended 30 September 20(14
et cash outflow from operating activities
Returns on investments and seIleing of finance
expenditure and finanial mcstmem
e( cash outflow befon financing
Fmll1cmg
Decrease in cash in the period
Reconciliation of net cash flow to movement in net fundsdebt
Decrclse in cash m the period
Ctsh (luttlO from mcrease in debt and lease financmg
Change 111 nel debt resultlIlg from cashflows
on ash changes
(lemel1l 111 net debt in period
Cl debt at i October 2003
et ckbt CIt 30 September 2004
otes
24
21104 E()()O
(761)
( 18680
( 390U I
26
26
(341021
(0361)41---shy
lninrsity College Cork ational [niersit~ of Ireland Cork
ons TO THE ACCOCTS
Stale grants 20()4 2003 COOO COOO
)t1 grams allclcatcd for recurrent pllrrO~CS
Thc al-gt( gLlOt mome wa~ neclved from the Higher Educltlon Aulloril anc Ihe DcpanmeIH of J-kJllh amp Chldrell
2 Academic fees 200-1 2003 COOO CO()()
-cadcmic fee inccme
Total fces pale hy o[ on behalf of mdiyidual studems
- lOla ofC5073-lO 2003euro3084g(l23) lIlcluded in aCiJdemic icc income was pJld dIrectly by the lllgher Educalon uthorilY
Research grants and contracts
European Umon InduSlf
Other
-1 Other incollle
Other rental l11C(lme
Funded pClst lIlCOll1t
SlUdent rsidenccs 1OC0111C
Proflt on compulsory iJcqUlsition oj lands Profit on sale of lands Leisure facilitie InCOme
Demal IlOSPlliJl I1come
Other income
= Interest income
Inttres mcome
2()0-1 2U03 fOOO coon
3 i 078 023
3S33
2()0-1 2003 pound000 ClWO
19 ~()~ 3U5
391()
l(1Ci
(I(i
2213 X6(1
2305 2(
laquo242 UOCi
1 Sl i~
200~ 200J COOO COOU
6
tlliwrsi Colle[c Cork arional Lnhersity of Ireland Cork
OTES TO THE ACCOFTS - continued
Staff costs
rh~ 3Crage veekh number of perSClJ1S (mcludlllg senior jwsl-h(ldcrs) emploved by tht
cpresscd as full-urne equlalcm was
reahing and rsearch
TechmcJI
entral adnllnistraIon and serices
Other
Salaries and wages
Social welfare costs
Other pension costs
Other operating expenses
Consumables
BeaL light aler and power
Research consumables
R(palfS and general mailllcnallce
Audn and professional
Rent and rates
Other expenses
Other opcratmg expenses in~1 ude
Auditors remuneraIon
EXlcmal audit
Other seryices fro111 external audit
during the
UH4 umber
201)4
(000
119538
666
14LA7C)
2(1)4
(000
15A7 4 2603
1(L933 376
138 j
L531
2004 [000
cq
IF
2003 umber
1246
63
2003 fO()()
]05379
200] C(lIiO
2003 COOO
jll
1U-
14312
lnhersin Colle~( Cork arional lniversity of Ireland Cork
OTES TO THE ACCOtTS - continued
S Taxation
taXJllOll charge arises as the UlllvCrSll and il~ principal subndJar companies are exempt chantle and are not
hable for corporation tax or mcome tax on any of its charitabk actlvitles
I) Deficit on cOlltinuin~ operations for the year 20(14 2U(J3 [(IOU COOO
The deii-l on continuing operalJons for the vcar is made up a~ flllows
UniC~rslfS deficit for the vear
Surplus generated bv the subsidIary undenakmgs and transferred to the Univcrslt
Total
1
I uinlsity (olltj( (olk ~atiollall illi(rsil~ 01 Irdalltl Cork
NOI ES TO TilE A((OINTS
10 Tal~ihl( fix(d ass(ls
(( )NS()f J lgtAnl)
(0lt1 or valnation
At t ()cohcr200)
Additiotls
At
Is 311 21104
i)epncialioll
At 1 Oct(hcr 2(J03
(I Cd
tl) 2(11)1
Nrl hook aim
t I letobe WOJ
It Ill 211()4
fOlllillll((1
Land alld
hllildill~S
CHon
I 7ti6
57(iY
((l3)
379]
(() Ll
273I1U3
27350X
COIIIJlIII(middotr
(qlliplJI(lIt
(000
2(d~59
i23
1 JJ
2J 425
71 II
1434
4X39
EqllipllltlIl
COOO
iltU172 6+31
30514
9Y)()
20]X8
17331
Assets ill ((HI 1St or
COllstnldioll
ClUW
151)9
54512
109
Total
CIIOO
4IltX() 7Ui7
l) 1Yh2
IlI121
II
312(118
3(1)30
LamJ alld huiltiillll alld cquipnlCllt IIKludc assets valucd in Iljl)4 (In a dCpleCI1tet 1Cj111ccmcllt cosl hasis fL1 1lIOJ()) respectivelY land alld huildillils ami lssel in course (II cOllstructi(lil includes UX]X I IJ(IO
include C 51ltJ07()O() (lOll CJ1)I(lI()()()) in relatioll tn land and tile ACC(1l111tillg Standards Board Iliese land ami
ftilcsc buildillls IS that tlte
( ) nlccr oUTgt nUI(( I (~(() C127721J IO()) and CI 1 IlIeH 10 (2()(3
(11 Ii ecl(1ld Iaml willch is Iwl
The COlllllwlcial ellce of the trallsactiolls Slln
issued lire salv alld ulllllwtc
tll 1he lam] ami
~
--
- -
~
~
~
-
-=
shy
- = shy~
7
=-= -
Z
7 ~
~ - lt shy shy shy
shy
Z shy
Z
r X r
-
r
-= oJ c
= 0 ~
= -~-=
ti= ~
shy = =
~
~
t= Z
~
51
- Z ~ lt
0
r-~
(J n r--ltIoc r-
x
v ~ r l j r1 r- if
rr
T M rlt
r = j
= -j =
C
shy -
~ v ~ ~
shy shy
- - -
-0
lt - lt )
Z lt
1 0 x T x)C
F n ~
0middot1 r1~~
r -
r~
lt
0 lr ~ r1 n(1
l r~
ltj~
tniVCfsiry College Cork ttional Lniversiry of Ireland Cork
OTES TO THE ACC()l]TS - continued
11 Financial assets Consolid ated
2UO-l 2003 ((WO f(lOO
t nhersity 2004 2003
COOO COOO
InnSlInents at the veal end were held as follovs
( lthcr
3450
The investment in the Lmversllv Technology Centre Partnership ha~ been re31ued during the year tc the 3lue 0shythe Llmycrsny share inlhe partnership as at 31 December 2003
The tnhersity held an interest in the following subsidiary undertakings
Subsidhlry undertakings
Incorporated
Propem ianagement (LeC) Limited
Campm ccommOdali(111 C) Limned
Art Gallery (liCC) Limiled
Brcnard Limited
1ardykc LeIsure (U ce) Limited
At Ie Press Limited
(iivlC Holding~ Limlled
11 Stocks
Consumables
FIlllshed goods for resale
Prindplil activity
Property development
Accommodation rcntal
11 gallery
Leasing or lands
PublIshing
Dornnnt
Interest 0 0
J00
100
100
100
1(lOo
Consolidated
2004 2003 COOO (0110
65
Registered officeplace of business
City Chamhers 4
Cork
limversl1Y Cork Aestern Road Cork University Cork Vestern Road Cork University College Cork Western Road Cork liniversiry College Cork Western Road Cork Crawford Business Park Crosses Green Cork St Kildas Western Road Cork
Clliversity
O()4 2001 [(lOU COOO
36
fhere io no malcnal difference between the balance sheet amount of slOcks and Its replacement cost
13 Debtors
Trad- debtors
Res-arh grants and colllraCls receiabk
nwunts due from suhsldmrv undertakings
Slale gr~ml reciabk
(lther tJJtWIl and s(lcial Illsurancc
Other deotiJrs
C ollsolida ted Llliycrsif
2(104 2003 2004 200 [000 COOO COOO f(I00
S34 -Li06 67U
601 753 6015 j J0(
1~S26 766 12S~6
11 -- 3 f~ 51 t
lJ
~ q()l --l12(j( ~ ~
CnhlIsit~ College Cork ationallniersity of Ireland Cork
OTES TO THE CCOCTS - continued
1-1 Creditors Amounts fallillg due within Dill year Consolidated lnjyersit~
20114 2003 2004 2003 COOO COOO [000 C(lOU
Trad rcdjtor~ 7501 Cl295 (702
Research grants and contracts III advance I(i5 5 1150i 1U5~ -cademic fee~ receied in advance 11(1()4 QOM 110CJ4 ()01gt4
State grant receied m advance 118 I 1535 513~ Bank loans 8 overdrafts (note 16) 3O 39 416 1606 333~
Amounts owed to subsidiary undenakmgs -113 4SS~
Other taxatIOn and SOCIal security -+394 0 41 42()9 SAl (i
Deftrred incJll1e 19(3 9131
Other creditors 8 accruals lOOARA R9~~
15 Creditors Amounts falling due after one year Consolidated linivcrsi t)
200-1 2003 2004 20U3 ((lOO COOO (000 COOO
Bank loans (note 16) ~ 1 - -_-
16 Borrowings Consolidated University
2004 2003 2004 2003 (000 (000 fOOO (IOU
Bank loans and overdrafts
Bank loan and oerdrafts are repayable as follows
III one year or less 3073Q 41 6 8606 33~
O~(Between one and twe veal 221 1693 1ampshy
Between two ard 11 H years 872 (i 104 604Q 3+05
In fiC y~ar or more
TCHal 6360 1 3400( I ~~ ~
ature and Securiry of Borrowings stated tn Note 10 F1Xed Assets hae been accounted for in accordance with FRS 5 The ab[)vc liabilIl16 represent the uhimate lwbilitie to repurchase the assct~ concerned The borrowJI1gs arc secured bv title until the repurchae takes place
lniYlrsit Colleu ( Cork -ational lniversity of Ireland Cork
-OTES TO THE ACCOCTS - continued
1~ Deferred capital grants HEA
COOO
Other grants and
benefactors (000
Total
COOO
C olsolida ted
At 1 October 2003
BuJldmg~
EJuipment
Tota
414 45677 8-31
Cash received Buildmg
Equipment
Tolal
b53-l 153~5 -l U59
Released to income and expenditure
Buildmgs
Equipment
TClaj
1449 )
~
9~3
1-1 ---
) iii _) shy
1L~~~
At 3() Septemher 20()t
B u ild 1111
Equipmem
T pta I
66639
7(91
600 i 9
-09A
I 6-] ~
14UltC)
l ni(~rsit C olieo ( Cork arional Cnhersity of Ireland Cork
OTES TO THE ACCOl1TS - continued
1i Deferred capital grants continued HEA
(non
t niersity
At 1 October 21Hl3
B uil dlllb
Eqmpmem
Total
Cash received
Buddmggt EqUIpment
TOla
Released to income and expenditur( 1 1 7Buildmg )
Equipmcl1l
Total )S3
At 30 September 200
Buildll1g~ 61324
EqUlpmcm Tora (~=5
IS Revaluation reser( Consolidated
2004 2003 (lOO ((lOU
At 1 October as pcr nOle 10) 135940
Reuluatlons or inesrmerm in the penod InOle I 1
t W Serlember
Other gran IS Total and
henefactors (000 COOO
3515 -=37(J
81 2149
4465 7i ~
XXh(1
51627 112951
~65(1
6()
Lnjcrsity 200 20()3
f ono C 000
35040
lniYcrsiry Collegl Cork iarional Llliycrsit~ of Ireland Cork
iOTES TO THE ACCOl1TS - continued
1(J Reconciliation of movcment of reservcs Revenue Revaluation Total reserves reserves
COOO pound1000 ooo
Consolidattd
1 I October 211(0shy 6]90
D(bcll on comlllumg l)perations revaluation
I ( Septemher 20(14
middott I Octoher 2003 13940 126241
Deficll or eommumg operations revaluation
3( September 2004 1RR~]
W Contingencies
The U11lversil from tIme ll time is party to yariow legal proceedings The Offieers of the University havc been mlormed hy then legal advisors that it is not possibie at this time to make a rellable estimme of the finanCIal effects (if an~l of tiles cases
t 3( September 2004 a cO1ll1gent lIabIlity existed in respect of potential Value Added Tax in the amoum of C2 rmbon together with substantial potential imeresl and penalties This potentIa] habilItv was setllc~d in January 006 at a lesser amount and the effect on the Income and Expenditure -ecount is no material
21 Capital commitments Consolidatcd Univcrsity
2004 2003 2004 2003 (000 (000 COOO (000
Comracted for but nO promiddotided 69143
Authorised but not omracted out 18304 i 49]Q
tninrsity College Cork ationa lniversity of Ireland Cork
OTES TO THE AccorTS - (ontillucmiddotd
Reconciliation of consolidated operating deficit to net cash outflow from operating activities
Dilcit on conlJnuing operalJons afier depreciation of assets at valuatlOn Dcpr(clat10n D~fcfT(d apital grants released W income Proiit on dIsposal of tangible fixed as~ets D~rcase m stocks Increase m debtors
Drcflse m creditors
on cash changes lmerest receivable Imerest em Iiabiliy 10 Investors under FRS Increase m invcstment aluation
et cash outflow from opernt1l1g aClivilJes
23 Returns on inwstments and servicing of finance
Other lterest received Interes paid on habihty to investors under FRSS
ct cash inGow from returns on lllvestments and senlcing of finance
24 Capital expenditure and financial illYestment
iurh3se of tangible fixed assets Sak of tangible fixed assets (see note 10) Deferred capnal grants receIved
Net cash outflow from capital expendllure and finanClallllestmcm
2()l4
CIIOO
12(46) 1C) ~ 21
( 11253 ) (64 0 )
(]3006) f~(24)
15 (3011 11)62
11
( 14 361
2004 (000
301 ( 1(1621
7611
2004 C()(l()
S57 70(1
SC)4T
ISoRO
lniversit~ College Cork arional tniversity of Ireland Cork
OTES TO THE ACCOCTS - continued
15 Financing 200-1 (000
Dht due within ant year Drclse 111 shon term hononn~
Dent due lyand one year Increase in long tenl1 borw1I1g
1et -ash inflow frorr financing
26 nalsis of changes in net debt At CashOows Other At I October Non cash 30 September
2003 changes 2004 POOH (000 POOO COOO
C~sh 111 hand and at hank 5 3 9Z l)vcrdrafts
539( (21)5021
Deht due within I year (-US6) 1C)[9 (~37)
Debt due after J vear 62R) (19) (7241 Llabilll to invctors under FRS (125) (24231 i
125 163f()4iTCltal
27 Related parties
Transactions Jh suhsidlanes of the UlllversllY have been eillninated on consdidauon and 11(1 disclosure or these transactIOn has therefore been gIven The Lnlerslty had the following transactIOns with related panics on 1 DeCember 1995 Irish Universitl Student Trust entered into a twent five year lease or AnlS 113 Mac Lemn from Lmverslty College Cork at an annual rental dE44A4J pel annum The trustees oflnsh UnirSH Studem Trust are the PrerdenL Secreta and Bursar and Fllance Officer elf ljmvcrsll Cork
l ninrsit College Cork ationaJ lininrsit~ of Ireland Cork
OTES TO THE ACC01T5 - COli tinned
8 Pcnsions
3 ~ PenSIon for substantiaEy all employees are funded through a defined henefit pension schemelt
The lniwrsl oper3tes a defined henefit penSlOll scheme wllh assets held 111 a separately admmlstered fund The total pension cost w the UniversHy ltas f14J)-4 Q 4J (2003 f12(J]-~13L The Illost recen uctuanul
aluation as undenaken as at 1 Octoher 2004 hy consuting actuanes uS1l1g the attained age methodlt The
princIpal assumptIon used in the actuarial valuatlOn was that the long-term annual rale of return on 1I1vestment would exceedtbe mcrease 111 pensionable earnIngs by 2) The 1ens1On and Trust Funds are not included 1I1
the Balance Sheet hecause they arc funds w1111 a separate COHSlltu1l0n from the general assets and ltabilJtie~ of the t11lerSlllaquo
t the date of tbe last actuaria I valuation the market aluc of the scheme s assets was sufTiclCl1t to cover 9lt
of the accrued liabilitleslt based on currcnt eammgs and also allowlllg for expected future mcreascs m eammgslt
The ul1lversny also operates a defmed contributIon penslOn scheme that covers cenain empl(1yees of the
ul11ersirvlt The assets of the scheme are invested by independent trustees for the benefit of these emplovees
ContributIOns to tim pension scheme for the year amounted to C02(il15 (2003 fJ A4F788I
b Financial Reporting STandard 1- Retirement Bellefirs disclosures
The alual1on of the Superannuation Plan benefits for the purposes of FRS 10 disclosures was based on the
results of the actuanal valuation ~aITlcd out as at 0 1102004 suItably adjusted to ~Onr()m1 to the requirements
of FRS 1- The impact of the penSlOn obligations of benchmarkmg awards due but not vet paid has been
mcluded The financlal assumptions used w calulate the retIrement cbltgatJons under FRS I were as follows
2004 2003
Valuation method Projected Projected Luit Luit
Dicou11l rate ) JlOdeg) )lt50
In118tio11 rale 250deg(1 250middot
Satan 1I1lTeases LO 450deg()
PenSlOll Supplemel1latlon 350l~middott 350o (J
t nhersity Coll(ge Cork gtational Lniversity of Ireland Cork
gtOTpound5 TO THE ACCOlgtTS continued
b Financial ReporrillK Standard 1- Rctircmcnr Bcncfirs discloswc (coltinued)
Th market value of the assets 111 the penSIOn schenk the expected rates of return and the hllgallOns as at 300920(11 togethe WIth the pnor vear arc ShC11 belo
2004 2003 cooo coon
Equities ~ ~5deg iJ 11Q708 800 1~346
Bonds -f ~()(I( 22456 150[0 lfd29
PropertY 65degu ImiddotUP 00( 14330
)Clsh 21 O()~() 2]0
TOW market alue of assets 1GL933 166623
Actual Value of Labilny
PenSlun Deficll
Related deferred tax Iiabiit~
et PellSlOn Llabi hty
Analysis of the amount that would have heen charg(d HI operating profit under FRS 17 is as foil () s
2004 2003 COOO (000
Curren Selce Cost 1710 1
Past SeTyice Cost
Tow Operatmg Charge
Analysis of the amount that would lUlVe been credited to other finance income under FRS]7 is as
follows
2004 2003 (000 COOIl
retum 011 s-heme asct~ 1U104
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
t niwrsin C011lt(1lt Cork ational tniYersity of Ireland Cork
S1TpoundIpoundT OF GOVERIIIG BODYS RESPOSIBILlTIES
The Ci0C11mg Bdy is required to comply iilb the Umvcrsitics Act 1QCl( and to keep in such form a5 nWi h ~pproved 11 t(darls um ArdOideachas all proper and usual lecounts of mOlle rccIvcd and expended by II
In preparing th0se accounts he G(iemmg Bod is required lc
bull s1ct suitable policies and then app them wnsIstcntly
bull 111ake Judgements lnd estimates thal are reasonable and prudellt
bull dIsclose md explain any matcnal departures from appk~able accC1ullting standards and
bull prepare the financial statements on the gCiing C0nCefl] basis unless It j- ll1appropnatC l(l presume that the lniverll will continue m (iperation
The GOcTnmg Body is responsible ror keeping proper books of account vrllch dIsclose with reasonabk accuran at any tilll the finmeial posItion of the UnIversIty and which enable l W ensure that Its fmancull statements comply WIth the ll1lrsities Act 1997 [he Statement of Recommended Practice on Accounting in Hlghcr Educallon InstltUllOnS and are prpared m accordance wIlh accounting standard generally accepted 111 Ireland
The Governing Bod i responsible for ensunng that the busmess of the University is conducted ill proper and regular manner and for safeguardlllg all assets under Its operatJOnal control and hence for taking reasonable steps for the pnYemion and detectlon of fraud and other irr~gtgulantles
Deloitte Dcicltte amp T()(lC~e ChJrtereu At (ountan) amp Resistered Audno~)
IDEPE1DENT ACDITORS REPORT TO THE GOYER1I1G BODY OF CiIYERSITY COLLEGE CORK
e hae audited the financial statements of unJcrsJty College Cork for thc vear ended 0 September 20(14 hich compnse th consclidated income and expenditure account the balance sheet of the Ul1Iversity and of the LJJllversJty and its sulJS1diary undertakings (the Group balance sheet) the consolidated cash flow statement the statment of total recognised gains and losses and the related notes 1 w 3 1 These finanCIal statementgt have been prepared under the accounting policies set out therein
Tl115 repon is made solely to the members of the Govemmg BodY of LJniversity College Cork as a body OUf
audn work has been undertaken so that we might state to the members of the Govemmg Body thos matters c state to them in our auditors repon and for no other purpose To the fullest extent permitted by law we dc not accept or assume responsibihty 10 anyone other than tbe member or the Govemmg Bod for our audit work lor this report or for the opinions we have formed
Respective responsibilities of the Governin~ Body and auditors The Govemmg Bodys responsibility for preparing the annual repon and the financial statements 11l
accordance WIth the umverSItles Act 1997 and wah 8ccountmg standard gencrall accepted Il1 Ireland l set out on page Il1 the statement of the Govemmg Bods responsibilities
Our respomibilit IS to audit the financial statements in accordance WIth relevant regulator requirements and lUdltll1g standards Issued by the auditmg Practices Board applIcahle in Ireland
We repon to yOU our opimon as te whether the financial statements gIve a true and i1ir ICW and are pwperiv prepared Ve report whether the finanCIal statements prepared in accordance with generally accepted accountll1g principles have been properly extracted from the books and records of the Universlv Ve state whether we have obtallled all the information and eplanatlons we consider necessary for the purposes of our audit
Basis of audit opinion We conducted our audJl II accordance with audltll1g standards Issued by the Audning Practices Board and generallv accepted in Ireland An audIt ll1c1udes examinatlon on a test basls of eVIdence releant to the amounts and disclosure m the finanCIal statements It also includes an assessment of the slgl1lficant estImates and judgements made b the members of the Govemll1g Bod III the preparation of the fll13nclal statements and of whether the accounting pohcies are appropriate (l the Universit circumstances cOl1SIQently applied and adequately disclosed
(COJ1linued on rhe lieXI page
MernJ(f Deloitte Touche Tohmatsu
Deloitte
t plannd and re~forrnd our audll so as W ontam al] tht mfCrn1G110n and explanatloflS whIch we
COflSldered necessar) m order [( provide u with sufficient cYlcience 10 rcaonahle assurance that the rinancxal statement 3re free from mmenal misstatement whether aused h fraud or other megularity 0
~ITOr 1n fOITmng our Opll1lOD we also evaluated the oyerall adequac) of the presentalon of informauon Hi [h~
financIal Slnemenrs
Qualified opinion arising from non lomplianc( with alcouIHillg and disclo~ure requirements of Statement of Standard Accounting Practice 24 Aclounting for Pension Costs
Til Cniverslt has not complIed with the accounllng and dIsclosure reqUlremellls of Statement of Standard
A~counl1ng Pral1cc 24 Accoummg for PenslOn COftS pamcularh m respect of pension supplementation 111
respect of mcreases III penSIOns payable It IS not pracllcable to quantify the impact of this non-complwnce
lll the reponed finanCIal position of th~ limversllY
fo~ the failure [e provide the dIsclosure aud the adlustmel1l that mIght have heen found tll be
necessary [( compiy Ith the accountmi2 and dIsclosure reqUIrements 0 Stllemem 01 Standard Accountmg Pracuc 4 in ou opimon the finanCIal tatements on pages 1 [(1 30 a true 3nd fair viev 0 the stale of Gflai-s of the UIllverSl and the Umversny Group at 3(l Septemher 2(l(i4 and of the deficit of the UmverSl Group for the year then euded and han heen prepGred lJ1 accordance WIth generally accepted accountmg
Dnnclples
- have obtamed all the mforrnanon and explanatIOns Wt consider necessary for the purposes of our audlL
III our opInIOn proper book of account hae been kept by the Ul1vcrsll The halance sheCI of the tll ersit 1 111 dffcemCll WIth the hook~ of account
Deloitte amp Touche l Lapp (lUi1V
Cork
Dare
Lninrsit~ College Cork ational Llliversity oflrcIand Cork
STA TElET OF ACCO(TIG POLICIES
The ~l=niflca1l accounting poiJies adopted b~ the UI1lVerSI are as f(lbws
Basi~ of preparation The fil1Jncwi statements have been prepared in accordance Wilh accounting standards generally accepted in Ireland md the SWltmenl of Recommended Praclice-Accountmg for Further and Highcr Education lnstltUlions ccountmg swnci1rds generally accepted in lreland in preparing financ131 statements a true and fair vie (Ire thOse publihed h the lnSmlc of Chartered ccoumants in Ireland and Issued hy the Ac~counl1ng Standards Board
ccounting convention The aCoullts hlve been preplred under the hIstorical cost C(11vcntwn modIfied h the reyalu1tion of certam land and hUlldmgs
Basis of consolidation The consolidated financial statements l11clude the li111verSl and llS suhsldlary undertakings and other undertakings 1ll
hi11 the Umverslt has a financial InteresL as indICated III nOll 11 The results of subsidianes acquired or dIsposed of dunng the penod are included in the consolidated Income and expendllure account from the date of acquisition (lr up te th~ dale of dIsposaL lntra-group sales and profits are climinatltd fully on consolidatlon
in accordance with FRS2 the actiities of the Students Umons have not heen consolJdated because the University docs not control those aCllvIlle The financial statements of Cork l111ersiry Foundatlon Limited Unicrsity Cork Ptnsion Fund and Trust Fund arc also excluded as they are not controlled by the Ljmcrsl
Rccognition of income Rc~urrent grants trom the Fhgher Education Authority an recognised 111 the period in which they are receivable
NL)n-rCcurrent grants from the Higher Educallon iuthority or other bodies receied in respect of the acqmsllion or -l]1struellon or fixed assets are treated a deferred capital grants and amonJsed III lllle with depreciation oer the life of thtmiddot asets
Income from research grants contracts and other se1ices rendered is Illcluded to the extent of the completion of the contract llr S(1ICe conecmed TillS is generally equivalent to the sum of the relevant expcndlture incurred during the year and any related contrihutions towards ocrheld costs Allmcome from sllOrt-tcrm deposas IS crcdlted to the income ll1J expendnurc account 111 the penod m wlllch 1l 1 eamed
ln~omc from endowments and donations IS l11cJuded to the extent of the relevant expendIture incurred dunng the yeaL together wah any related cnntributions toward overhead costs
Foreign currency translation TransactIOns denominated m foreIgn currencies are recorded at the rate of exchange ruling at the dates of the transaction Monetary assets and ilabilities denominated III foreIgn currencies arc transl3ted mtll euro eJlher at vear end rltes OL where there are related forward exchange contracts at contract rates The resultmg difference Ire dealt WIth in the determmalOIl of income and expenditure for the financial year
Tangible fixed assets
(a) Land and buildings The l)niverslty buildmgs arc valued at deprecIated replacement cost Land and buildl1g~ arc stated III the balall~c Sh-Cl at aluallon 011 the basis of depreciated replacement cost as they are specialised buildings and therefore it I~ not appropnate to value them 01 the basis of open market value The last aluarioll was carrid out on 3(1 September 1OQ-l The tniverlty has fixed the value of the Ind and huildlf]g~ a at 3( September 1994 as tIllS was the first veal of the implementatloll of generally lccepted accountng pnnciples in resped of Fixed ssets m presenting the fmanelal srawmcJ1Is of the lJi11versl1y Land and buildings acqulled SHlCC the vaiuation an included in the balance sheet at c(s Freehold land IS not depreciated FreelKtld huddings are deprecIated oel their expc~ted useful cconomlC hit Il the University of (1 ycars
llliersjt~ Colle Cork ationaI CniYersity of ireland Cork
STATEIE1 OF ACCOCTING POLICIES - coutinued
Tangihle fixed assets continued
(a I Land aud buildings - continued
here land and buildmgs are lcquired lth the ud of specIfic grants they are capItalIsed and deprecIated a aboe
The related grams are credIted Q a deferred capltai grant account and are released ((1 the IIlcomc and expenditure
account over the expected useful eCDnomlC llfc of the related asset on a basis consIstent with the depreciation POlICY
Fmancc costs hKh are directly attributable w the COl1structlOn of land and buildings are not capitalised as part of th cost ([ those Jssets
nlew for impJirment of a fixed asset is carned out If ecnts or changs in clrcumstanccs indIcate that the amount of the fixed asset may l1l)t be recocrable
Buildmgs under construction are accounted for at cost bascd on the Yllue of architect~ certificates and other direct ClqS mcurred to the financill velr end They are not dcpreewed until th(~ arc brought mto use
(ill Equipment 111 eqUlpment IS apnalised at cost Clpllaiised equIpment i depreCIated over Its useful economIc iife as fllows
Computer equipment 3 year~
Equipment 5 ye-ars
Where equipment is acquired with the aid of specific grams it is capitalised and depreCIated m accordance Ith the abo( policy with the related grant being credited to a defened capnal grant account and released to income and expendlfurc account over the expected useful economic life of the related equipment
Financial assets hxed asset Illvestments that arc listed on a reeogJ1lsed stock exchange are canied at market value The II1vestment 11 the
L lllverslfY T echnok)gv Centre PartnershIp has been revalued dunng the year to thc value u[ the tJniversl s share In the
plftnershlp Those that are not listed are canied at hIstorical cost less any proVIsion for impainnent in theIr value
Current a~sel in(~st1lents are included in the baiance sheet at the lower of their original cost and net reahsable value
Stocks Sto-b are Slated at the lower of their cost and net realisable alue -here necessary proVIsion is made for obsolete
skw mOing and defective Stock Expenditure incurred by tbe University on booki and consumable stocks finaned
(rc1m recunent grams are charged to the Income and Expenditure JccounL
Taxlltion -S an exempt charity thc University is not lIable for Corporation Tax or Income Tax on an ofns chantable actIVItIeS It b regIstered [or -alue Added Tax but smce the supply of edu~atlOn is an exempt acmity on whIch no output tax IS -harged Il IS unable to recover input tax on the maJonty of its purchases
Tradmg JclJvllles undertaken b the Cniversity an admllllstered through IlS subSIdiary compames whle11 as commerciai
(lrganisatlOns are hable to Corporation Tax
Liquid resources LIqUId reSlurcs include sums on short-term deposits with recugnlsed banks and buIlding societies and gocmmcm
SCUflllt=
Provisions ProvlslOns are recognised when the U1Ivcrslty has a present legal or eonslruclje oblIgatIOn as a result of a past event I 1 probable that j transfer cf economic benefit i11 be required to settic the oblIgation and il relIable CSlImate can be made
of the amount of the obligatIOn
tninrsity College Cork alional Cniersity of Ireland Cork
STATEIEiT OF ACCOl-TIiG POLICIES - continued
Pensiolls The CnlrsJ[ operates a diined benefit pensIon scheme Ililh assets held in a separately admll1islered fund The b~SIC rCl1rCmCDl pensions of Cniversit) staff are funded by comnbutiom 1(1 the ul1Iverst PensIOn Fund (the penion fund I
a a pre-determmed rate of penSIOnable pay Increases m baSIC retirement penSIOns hlch are pltlld through the pm101
fund arc repaid to the pensIOn fund by the umversity The penSlOl1 fund is valued acuarialh once III every three ears TiK las such alUatlOIl was carried OUI as at i October 2004
Pension benefits for ccnain other employees are met b pavlllems (1 a defined contribution pension scheme
CClllribullOns (ire charged to the income and expenditure account III the veal in willch th( fall duc
lllinrsity College Cork ational Cniversity of Ireland Cork
COSOLIDATED ICOME AD EXPEDlTCRE ACCOFT Year Ended 30 September 2004
1oles
Consolidattd 21104
pound000
Consolidated 2003
(OOll
Income
Srat rants
SlUJ~nl f~
Rs~arch grants and contract
AmortIsation of deferred capital grants
Olhr lpcrating income
Inters ll1ome
Ishy
4
~A~6
63-+4 4-01 II 1~Ibull ~ ___1
1831 7
7(0
~--3-q
11303
12AXO Q430
Total income 21 ~3(l~ IQ~ri~
Expenditure
Staff OSb
Olbr operallng expenses
DepreciatIon
Total expenditure
Deficit for the year after depreciatioll of assets before taxation
rJXJtion
Drfieit for the year after depreciation of assets and after taxation
Th~ d~jicit for the year aroe soleh from contInuing opcratiom
The fInancial ztatemems lln pages 8 w 3( were approvd the- G(YCn1111g Body on 1(l October 2006 and wer SIgned (l1
Its hehalf by
Signcd Professor Wrixon Dermot OMahoney Prcsldent j-llt)norar Treasurer
1
lnhersity College Cork ational blhersity of Ireland Cork
COSOLIDATED BAlACE SHEET 30 September 2004
otes
Consolidated
2004 CO(lO
2003 COOO
lnilrsit~
20()4 COOO
2lHl3 coou
Fhed assets
1 anglh Ie asset
Flnanci3 LSScl~ 10
11
Current assets
Swcks 12 314 351 291 3~)
Dchwr~ 1 L 32deg(11 1wCJRx 41206 J9~ J2
Ca~h al bank
3330- 5 ~37 41497 469]
Creditors AmOUlllS fallmg due wnhm nne
year (10UAX6) (76923)
et current liabilities
Total assets less current liabilities 301307 25C)6c)7 25756 114900
Creditors Amoums falling due after nne
vear l=
0 fC et assets 1(1)gt ll~flt 4 CHi4 A
123552Deferred capital grants
Represented by
Revenue rescrvcs C) 1l2396 (9750)
ReitJumion reserve If)
Total
The financwl mncmenb on pages ~ 10 3(1 were appr0cd bv the GOcming B0dv on ] () OCC1ber 20C6 and wcre OIl
I1s hehall
SIgned Professor Wrixon Dermot OMahoney Prcsidcnt Honorarv Treasurer
lninrsity College Cork ational lniycrsity of Ireland Cork
COSOLUHTED CASH FLOW STATEMENT OF HISTORIC COST SLRPLlSES AD DEFICITS Year Ended 30 September 004
h I~ 11) possihle to determine the difference hetween hlstoncal ost depreCHllion and the actual charge due w the facl thal
th 111ston~al cost infomlation IS not aailahl
STATDIET OF TOTAL RECOGISED GAIS AN)) LOSSES Year Ended 30 September ()()4
2004 fOOO
2003 fOOO
Defill all COlll1l1UIIlg operatIons after depre~lalon of assets at aluali(lfL
(t IsseIS and laX (2646)
Unrcdlsed surplus on revaluation of financial assets
Ttllal rcognised gail15 relatmg 10 the year
Reconciliation
126lCJO
gams (losses) for the year
Closmg resenes
lniHrsiry Colegt Cork alional Cniersity of I relund Cork
COSOLIDATED CASH FLOW STATE]lElT Year Ended 30 September 20(14
et cash outflow from operating activities
Returns on investments and seIleing of finance
expenditure and finanial mcstmem
e( cash outflow befon financing
Fmll1cmg
Decrease in cash in the period
Reconciliation of net cash flow to movement in net fundsdebt
Decrclse in cash m the period
Ctsh (luttlO from mcrease in debt and lease financmg
Change 111 nel debt resultlIlg from cashflows
on ash changes
(lemel1l 111 net debt in period
Cl debt at i October 2003
et ckbt CIt 30 September 2004
otes
24
21104 E()()O
(761)
( 18680
( 390U I
26
26
(341021
(0361)41---shy
lninrsity College Cork ational [niersit~ of Ireland Cork
ons TO THE ACCOCTS
Stale grants 20()4 2003 COOO COOO
)t1 grams allclcatcd for recurrent pllrrO~CS
Thc al-gt( gLlOt mome wa~ neclved from the Higher Educltlon Aulloril anc Ihe DcpanmeIH of J-kJllh amp Chldrell
2 Academic fees 200-1 2003 COOO CO()()
-cadcmic fee inccme
Total fces pale hy o[ on behalf of mdiyidual studems
- lOla ofC5073-lO 2003euro3084g(l23) lIlcluded in aCiJdemic icc income was pJld dIrectly by the lllgher Educalon uthorilY
Research grants and contracts
European Umon InduSlf
Other
-1 Other incollle
Other rental l11C(lme
Funded pClst lIlCOll1t
SlUdent rsidenccs 1OC0111C
Proflt on compulsory iJcqUlsition oj lands Profit on sale of lands Leisure facilitie InCOme
Demal IlOSPlliJl I1come
Other income
= Interest income
Inttres mcome
2()0-1 2U03 fOOO coon
3 i 078 023
3S33
2()0-1 2003 pound000 ClWO
19 ~()~ 3U5
391()
l(1Ci
(I(i
2213 X6(1
2305 2(
laquo242 UOCi
1 Sl i~
200~ 200J COOO COOU
6
tlliwrsi Colle[c Cork arional Lnhersity of Ireland Cork
OTES TO THE ACCOFTS - continued
Staff costs
rh~ 3Crage veekh number of perSClJ1S (mcludlllg senior jwsl-h(ldcrs) emploved by tht
cpresscd as full-urne equlalcm was
reahing and rsearch
TechmcJI
entral adnllnistraIon and serices
Other
Salaries and wages
Social welfare costs
Other pension costs
Other operating expenses
Consumables
BeaL light aler and power
Research consumables
R(palfS and general mailllcnallce
Audn and professional
Rent and rates
Other expenses
Other opcratmg expenses in~1 ude
Auditors remuneraIon
EXlcmal audit
Other seryices fro111 external audit
during the
UH4 umber
201)4
(000
119538
666
14LA7C)
2(1)4
(000
15A7 4 2603
1(L933 376
138 j
L531
2004 [000
cq
IF
2003 umber
1246
63
2003 fO()()
]05379
200] C(lIiO
2003 COOO
jll
1U-
14312
lnhersin Colle~( Cork arional lniversity of Ireland Cork
OTES TO THE ACCOtTS - continued
S Taxation
taXJllOll charge arises as the UlllvCrSll and il~ principal subndJar companies are exempt chantle and are not
hable for corporation tax or mcome tax on any of its charitabk actlvitles
I) Deficit on cOlltinuin~ operations for the year 20(14 2U(J3 [(IOU COOO
The deii-l on continuing operalJons for the vcar is made up a~ flllows
UniC~rslfS deficit for the vear
Surplus generated bv the subsidIary undenakmgs and transferred to the Univcrslt
Total
1
I uinlsity (olltj( (olk ~atiollall illi(rsil~ 01 Irdalltl Cork
NOI ES TO TilE A((OINTS
10 Tal~ihl( fix(d ass(ls
(( )NS()f J lgtAnl)
(0lt1 or valnation
At t ()cohcr200)
Additiotls
At
Is 311 21104
i)epncialioll
At 1 Oct(hcr 2(J03
(I Cd
tl) 2(11)1
Nrl hook aim
t I letobe WOJ
It Ill 211()4
fOlllillll((1
Land alld
hllildill~S
CHon
I 7ti6
57(iY
((l3)
379]
(() Ll
273I1U3
27350X
COIIIJlIII(middotr
(qlliplJI(lIt
(000
2(d~59
i23
1 JJ
2J 425
71 II
1434
4X39
EqllipllltlIl
COOO
iltU172 6+31
30514
9Y)()
20]X8
17331
Assets ill ((HI 1St or
COllstnldioll
ClUW
151)9
54512
109
Total
CIIOO
4IltX() 7Ui7
l) 1Yh2
IlI121
II
312(118
3(1)30
LamJ alld huiltiillll alld cquipnlCllt IIKludc assets valucd in Iljl)4 (In a dCpleCI1tet 1Cj111ccmcllt cosl hasis fL1 1lIOJ()) respectivelY land alld huildillils ami lssel in course (II cOllstructi(lil includes UX]X I IJ(IO
include C 51ltJ07()O() (lOll CJ1)I(lI()()()) in relatioll tn land and tile ACC(1l111tillg Standards Board Iliese land ami
ftilcsc buildillls IS that tlte
( ) nlccr oUTgt nUI(( I (~(() C127721J IO()) and CI 1 IlIeH 10 (2()(3
(11 Ii ecl(1ld Iaml willch is Iwl
The COlllllwlcial ellce of the trallsactiolls Slln
issued lire salv alld ulllllwtc
tll 1he lam] ami
~
--
- -
~
~
~
-
-=
shy
- = shy~
7
=-= -
Z
7 ~
~ - lt shy shy shy
shy
Z shy
Z
r X r
-
r
-= oJ c
= 0 ~
= -~-=
ti= ~
shy = =
~
~
t= Z
~
51
- Z ~ lt
0
r-~
(J n r--ltIoc r-
x
v ~ r l j r1 r- if
rr
T M rlt
r = j
= -j =
C
shy -
~ v ~ ~
shy shy
- - -
-0
lt - lt )
Z lt
1 0 x T x)C
F n ~
0middot1 r1~~
r -
r~
lt
0 lr ~ r1 n(1
l r~
ltj~
tniVCfsiry College Cork ttional Lniversiry of Ireland Cork
OTES TO THE ACC()l]TS - continued
11 Financial assets Consolid ated
2UO-l 2003 ((WO f(lOO
t nhersity 2004 2003
COOO COOO
InnSlInents at the veal end were held as follovs
( lthcr
3450
The investment in the Lmversllv Technology Centre Partnership ha~ been re31ued during the year tc the 3lue 0shythe Llmycrsny share inlhe partnership as at 31 December 2003
The tnhersity held an interest in the following subsidiary undertakings
Subsidhlry undertakings
Incorporated
Propem ianagement (LeC) Limited
Campm ccommOdali(111 C) Limned
Art Gallery (liCC) Limiled
Brcnard Limited
1ardykc LeIsure (U ce) Limited
At Ie Press Limited
(iivlC Holding~ Limlled
11 Stocks
Consumables
FIlllshed goods for resale
Prindplil activity
Property development
Accommodation rcntal
11 gallery
Leasing or lands
PublIshing
Dornnnt
Interest 0 0
J00
100
100
100
1(lOo
Consolidated
2004 2003 COOO (0110
65
Registered officeplace of business
City Chamhers 4
Cork
limversl1Y Cork Aestern Road Cork University Cork Vestern Road Cork University College Cork Western Road Cork liniversiry College Cork Western Road Cork Crawford Business Park Crosses Green Cork St Kildas Western Road Cork
Clliversity
O()4 2001 [(lOU COOO
36
fhere io no malcnal difference between the balance sheet amount of slOcks and Its replacement cost
13 Debtors
Trad- debtors
Res-arh grants and colllraCls receiabk
nwunts due from suhsldmrv undertakings
Slale gr~ml reciabk
(lther tJJtWIl and s(lcial Illsurancc
Other deotiJrs
C ollsolida ted Llliycrsif
2(104 2003 2004 200 [000 COOO COOO f(I00
S34 -Li06 67U
601 753 6015 j J0(
1~S26 766 12S~6
11 -- 3 f~ 51 t
lJ
~ q()l --l12(j( ~ ~
CnhlIsit~ College Cork ationallniersity of Ireland Cork
OTES TO THE CCOCTS - continued
1-1 Creditors Amounts fallillg due within Dill year Consolidated lnjyersit~
20114 2003 2004 2003 COOO COOO [000 C(lOU
Trad rcdjtor~ 7501 Cl295 (702
Research grants and contracts III advance I(i5 5 1150i 1U5~ -cademic fee~ receied in advance 11(1()4 QOM 110CJ4 ()01gt4
State grant receied m advance 118 I 1535 513~ Bank loans 8 overdrafts (note 16) 3O 39 416 1606 333~
Amounts owed to subsidiary undenakmgs -113 4SS~
Other taxatIOn and SOCIal security -+394 0 41 42()9 SAl (i
Deftrred incJll1e 19(3 9131
Other creditors 8 accruals lOOARA R9~~
15 Creditors Amounts falling due after one year Consolidated linivcrsi t)
200-1 2003 2004 20U3 ((lOO COOO (000 COOO
Bank loans (note 16) ~ 1 - -_-
16 Borrowings Consolidated University
2004 2003 2004 2003 (000 (000 fOOO (IOU
Bank loans and overdrafts
Bank loan and oerdrafts are repayable as follows
III one year or less 3073Q 41 6 8606 33~
O~(Between one and twe veal 221 1693 1ampshy
Between two ard 11 H years 872 (i 104 604Q 3+05
In fiC y~ar or more
TCHal 6360 1 3400( I ~~ ~
ature and Securiry of Borrowings stated tn Note 10 F1Xed Assets hae been accounted for in accordance with FRS 5 The ab[)vc liabilIl16 represent the uhimate lwbilitie to repurchase the assct~ concerned The borrowJI1gs arc secured bv title until the repurchae takes place
lniYlrsit Colleu ( Cork -ational lniversity of Ireland Cork
-OTES TO THE ACCOCTS - continued
1~ Deferred capital grants HEA
COOO
Other grants and
benefactors (000
Total
COOO
C olsolida ted
At 1 October 2003
BuJldmg~
EJuipment
Tota
414 45677 8-31
Cash received Buildmg
Equipment
Tolal
b53-l 153~5 -l U59
Released to income and expenditure
Buildmgs
Equipment
TClaj
1449 )
~
9~3
1-1 ---
) iii _) shy
1L~~~
At 3() Septemher 20()t
B u ild 1111
Equipmem
T pta I
66639
7(91
600 i 9
-09A
I 6-] ~
14UltC)
l ni(~rsit C olieo ( Cork arional Cnhersity of Ireland Cork
OTES TO THE ACCOl1TS - continued
1i Deferred capital grants continued HEA
(non
t niersity
At 1 October 21Hl3
B uil dlllb
Eqmpmem
Total
Cash received
Buddmggt EqUIpment
TOla
Released to income and expenditur( 1 1 7Buildmg )
Equipmcl1l
Total )S3
At 30 September 200
Buildll1g~ 61324
EqUlpmcm Tora (~=5
IS Revaluation reser( Consolidated
2004 2003 (lOO ((lOU
At 1 October as pcr nOle 10) 135940
Reuluatlons or inesrmerm in the penod InOle I 1
t W Serlember
Other gran IS Total and
henefactors (000 COOO
3515 -=37(J
81 2149
4465 7i ~
XXh(1
51627 112951
~65(1
6()
Lnjcrsity 200 20()3
f ono C 000
35040
lniYcrsiry Collegl Cork iarional Llliycrsit~ of Ireland Cork
iOTES TO THE ACCOl1TS - continued
1(J Reconciliation of movcment of reservcs Revenue Revaluation Total reserves reserves
COOO pound1000 ooo
Consolidattd
1 I October 211(0shy 6]90
D(bcll on comlllumg l)perations revaluation
I ( Septemher 20(14
middott I Octoher 2003 13940 126241
Deficll or eommumg operations revaluation
3( September 2004 1RR~]
W Contingencies
The U11lversil from tIme ll time is party to yariow legal proceedings The Offieers of the University havc been mlormed hy then legal advisors that it is not possibie at this time to make a rellable estimme of the finanCIal effects (if an~l of tiles cases
t 3( September 2004 a cO1ll1gent lIabIlity existed in respect of potential Value Added Tax in the amoum of C2 rmbon together with substantial potential imeresl and penalties This potentIa] habilItv was setllc~d in January 006 at a lesser amount and the effect on the Income and Expenditure -ecount is no material
21 Capital commitments Consolidatcd Univcrsity
2004 2003 2004 2003 (000 (000 COOO (000
Comracted for but nO promiddotided 69143
Authorised but not omracted out 18304 i 49]Q
tninrsity College Cork ationa lniversity of Ireland Cork
OTES TO THE AccorTS - (ontillucmiddotd
Reconciliation of consolidated operating deficit to net cash outflow from operating activities
Dilcit on conlJnuing operalJons afier depreciation of assets at valuatlOn Dcpr(clat10n D~fcfT(d apital grants released W income Proiit on dIsposal of tangible fixed as~ets D~rcase m stocks Increase m debtors
Drcflse m creditors
on cash changes lmerest receivable Imerest em Iiabiliy 10 Investors under FRS Increase m invcstment aluation
et cash outflow from opernt1l1g aClivilJes
23 Returns on inwstments and servicing of finance
Other lterest received Interes paid on habihty to investors under FRSS
ct cash inGow from returns on lllvestments and senlcing of finance
24 Capital expenditure and financial illYestment
iurh3se of tangible fixed assets Sak of tangible fixed assets (see note 10) Deferred capnal grants receIved
Net cash outflow from capital expendllure and finanClallllestmcm
2()l4
CIIOO
12(46) 1C) ~ 21
( 11253 ) (64 0 )
(]3006) f~(24)
15 (3011 11)62
11
( 14 361
2004 (000
301 ( 1(1621
7611
2004 C()(l()
S57 70(1
SC)4T
ISoRO
lniversit~ College Cork arional tniversity of Ireland Cork
OTES TO THE ACCOCTS - continued
15 Financing 200-1 (000
Dht due within ant year Drclse 111 shon term hononn~
Dent due lyand one year Increase in long tenl1 borw1I1g
1et -ash inflow frorr financing
26 nalsis of changes in net debt At CashOows Other At I October Non cash 30 September
2003 changes 2004 POOH (000 POOO COOO
C~sh 111 hand and at hank 5 3 9Z l)vcrdrafts
539( (21)5021
Deht due within I year (-US6) 1C)[9 (~37)
Debt due after J vear 62R) (19) (7241 Llabilll to invctors under FRS (125) (24231 i
125 163f()4iTCltal
27 Related parties
Transactions Jh suhsidlanes of the UlllversllY have been eillninated on consdidauon and 11(1 disclosure or these transactIOn has therefore been gIven The Lnlerslty had the following transactIOns with related panics on 1 DeCember 1995 Irish Universitl Student Trust entered into a twent five year lease or AnlS 113 Mac Lemn from Lmverslty College Cork at an annual rental dE44A4J pel annum The trustees oflnsh UnirSH Studem Trust are the PrerdenL Secreta and Bursar and Fllance Officer elf ljmvcrsll Cork
l ninrsit College Cork ationaJ lininrsit~ of Ireland Cork
OTES TO THE ACC01T5 - COli tinned
8 Pcnsions
3 ~ PenSIon for substantiaEy all employees are funded through a defined henefit pension schemelt
The lniwrsl oper3tes a defined henefit penSlOll scheme wllh assets held 111 a separately admmlstered fund The total pension cost w the UniversHy ltas f14J)-4 Q 4J (2003 f12(J]-~13L The Illost recen uctuanul
aluation as undenaken as at 1 Octoher 2004 hy consuting actuanes uS1l1g the attained age methodlt The
princIpal assumptIon used in the actuarial valuatlOn was that the long-term annual rale of return on 1I1vestment would exceedtbe mcrease 111 pensionable earnIngs by 2) The 1ens1On and Trust Funds are not included 1I1
the Balance Sheet hecause they arc funds w1111 a separate COHSlltu1l0n from the general assets and ltabilJtie~ of the t11lerSlllaquo
t the date of tbe last actuaria I valuation the market aluc of the scheme s assets was sufTiclCl1t to cover 9lt
of the accrued liabilitleslt based on currcnt eammgs and also allowlllg for expected future mcreascs m eammgslt
The ul1lversny also operates a defmed contributIon penslOn scheme that covers cenain empl(1yees of the
ul11ersirvlt The assets of the scheme are invested by independent trustees for the benefit of these emplovees
ContributIOns to tim pension scheme for the year amounted to C02(il15 (2003 fJ A4F788I
b Financial Reporting STandard 1- Retirement Bellefirs disclosures
The alual1on of the Superannuation Plan benefits for the purposes of FRS 10 disclosures was based on the
results of the actuanal valuation ~aITlcd out as at 0 1102004 suItably adjusted to ~Onr()m1 to the requirements
of FRS 1- The impact of the penSlOn obligations of benchmarkmg awards due but not vet paid has been
mcluded The financlal assumptions used w calulate the retIrement cbltgatJons under FRS I were as follows
2004 2003
Valuation method Projected Projected Luit Luit
Dicou11l rate ) JlOdeg) )lt50
In118tio11 rale 250deg(1 250middot
Satan 1I1lTeases LO 450deg()
PenSlOll Supplemel1latlon 350l~middott 350o (J
t nhersity Coll(ge Cork gtational Lniversity of Ireland Cork
gtOTpound5 TO THE ACCOlgtTS continued
b Financial ReporrillK Standard 1- Rctircmcnr Bcncfirs discloswc (coltinued)
Th market value of the assets 111 the penSIOn schenk the expected rates of return and the hllgallOns as at 300920(11 togethe WIth the pnor vear arc ShC11 belo
2004 2003 cooo coon
Equities ~ ~5deg iJ 11Q708 800 1~346
Bonds -f ~()(I( 22456 150[0 lfd29
PropertY 65degu ImiddotUP 00( 14330
)Clsh 21 O()~() 2]0
TOW market alue of assets 1GL933 166623
Actual Value of Labilny
PenSlun Deficll
Related deferred tax Iiabiit~
et PellSlOn Llabi hty
Analysis of the amount that would have heen charg(d HI operating profit under FRS 17 is as foil () s
2004 2003 COOO (000
Curren Selce Cost 1710 1
Past SeTyice Cost
Tow Operatmg Charge
Analysis of the amount that would lUlVe been credited to other finance income under FRS]7 is as
follows
2004 2003 (000 COOIl
retum 011 s-heme asct~ 1U104
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
Deloitte Dcicltte amp T()(lC~e ChJrtereu At (ountan) amp Resistered Audno~)
IDEPE1DENT ACDITORS REPORT TO THE GOYER1I1G BODY OF CiIYERSITY COLLEGE CORK
e hae audited the financial statements of unJcrsJty College Cork for thc vear ended 0 September 20(14 hich compnse th consclidated income and expenditure account the balance sheet of the Ul1Iversity and of the LJJllversJty and its sulJS1diary undertakings (the Group balance sheet) the consolidated cash flow statement the statment of total recognised gains and losses and the related notes 1 w 3 1 These finanCIal statementgt have been prepared under the accounting policies set out therein
Tl115 repon is made solely to the members of the Govemmg BodY of LJniversity College Cork as a body OUf
audn work has been undertaken so that we might state to the members of the Govemmg Body thos matters c state to them in our auditors repon and for no other purpose To the fullest extent permitted by law we dc not accept or assume responsibihty 10 anyone other than tbe member or the Govemmg Bod for our audit work lor this report or for the opinions we have formed
Respective responsibilities of the Governin~ Body and auditors The Govemmg Bodys responsibility for preparing the annual repon and the financial statements 11l
accordance WIth the umverSItles Act 1997 and wah 8ccountmg standard gencrall accepted Il1 Ireland l set out on page Il1 the statement of the Govemmg Bods responsibilities
Our respomibilit IS to audit the financial statements in accordance WIth relevant regulator requirements and lUdltll1g standards Issued by the auditmg Practices Board applIcahle in Ireland
We repon to yOU our opimon as te whether the financial statements gIve a true and i1ir ICW and are pwperiv prepared Ve report whether the finanCIal statements prepared in accordance with generally accepted accountll1g principles have been properly extracted from the books and records of the Universlv Ve state whether we have obtallled all the information and eplanatlons we consider necessary for the purposes of our audit
Basis of audit opinion We conducted our audJl II accordance with audltll1g standards Issued by the Audning Practices Board and generallv accepted in Ireland An audIt ll1c1udes examinatlon on a test basls of eVIdence releant to the amounts and disclosure m the finanCIal statements It also includes an assessment of the slgl1lficant estImates and judgements made b the members of the Govemll1g Bod III the preparation of the fll13nclal statements and of whether the accounting pohcies are appropriate (l the Universit circumstances cOl1SIQently applied and adequately disclosed
(COJ1linued on rhe lieXI page
MernJ(f Deloitte Touche Tohmatsu
Deloitte
t plannd and re~forrnd our audll so as W ontam al] tht mfCrn1G110n and explanatloflS whIch we
COflSldered necessar) m order [( provide u with sufficient cYlcience 10 rcaonahle assurance that the rinancxal statement 3re free from mmenal misstatement whether aused h fraud or other megularity 0
~ITOr 1n fOITmng our Opll1lOD we also evaluated the oyerall adequac) of the presentalon of informauon Hi [h~
financIal Slnemenrs
Qualified opinion arising from non lomplianc( with alcouIHillg and disclo~ure requirements of Statement of Standard Accounting Practice 24 Aclounting for Pension Costs
Til Cniverslt has not complIed with the accounllng and dIsclosure reqUlremellls of Statement of Standard
A~counl1ng Pral1cc 24 Accoummg for PenslOn COftS pamcularh m respect of pension supplementation 111
respect of mcreases III penSIOns payable It IS not pracllcable to quantify the impact of this non-complwnce
lll the reponed finanCIal position of th~ limversllY
fo~ the failure [e provide the dIsclosure aud the adlustmel1l that mIght have heen found tll be
necessary [( compiy Ith the accountmi2 and dIsclosure reqUIrements 0 Stllemem 01 Standard Accountmg Pracuc 4 in ou opimon the finanCIal tatements on pages 1 [(1 30 a true 3nd fair viev 0 the stale of Gflai-s of the UIllverSl and the Umversny Group at 3(l Septemher 2(l(i4 and of the deficit of the UmverSl Group for the year then euded and han heen prepGred lJ1 accordance WIth generally accepted accountmg
Dnnclples
- have obtamed all the mforrnanon and explanatIOns Wt consider necessary for the purposes of our audlL
III our opInIOn proper book of account hae been kept by the Ul1vcrsll The halance sheCI of the tll ersit 1 111 dffcemCll WIth the hook~ of account
Deloitte amp Touche l Lapp (lUi1V
Cork
Dare
Lninrsit~ College Cork ational Llliversity oflrcIand Cork
STA TElET OF ACCO(TIG POLICIES
The ~l=niflca1l accounting poiJies adopted b~ the UI1lVerSI are as f(lbws
Basi~ of preparation The fil1Jncwi statements have been prepared in accordance Wilh accounting standards generally accepted in Ireland md the SWltmenl of Recommended Praclice-Accountmg for Further and Highcr Education lnstltUlions ccountmg swnci1rds generally accepted in lreland in preparing financ131 statements a true and fair vie (Ire thOse publihed h the lnSmlc of Chartered ccoumants in Ireland and Issued hy the Ac~counl1ng Standards Board
ccounting convention The aCoullts hlve been preplred under the hIstorical cost C(11vcntwn modIfied h the reyalu1tion of certam land and hUlldmgs
Basis of consolidation The consolidated financial statements l11clude the li111verSl and llS suhsldlary undertakings and other undertakings 1ll
hi11 the Umverslt has a financial InteresL as indICated III nOll 11 The results of subsidianes acquired or dIsposed of dunng the penod are included in the consolidated Income and expendllure account from the date of acquisition (lr up te th~ dale of dIsposaL lntra-group sales and profits are climinatltd fully on consolidatlon
in accordance with FRS2 the actiities of the Students Umons have not heen consolJdated because the University docs not control those aCllvIlle The financial statements of Cork l111ersiry Foundatlon Limited Unicrsity Cork Ptnsion Fund and Trust Fund arc also excluded as they are not controlled by the Ljmcrsl
Rccognition of income Rc~urrent grants trom the Fhgher Education Authority an recognised 111 the period in which they are receivable
NL)n-rCcurrent grants from the Higher Educallon iuthority or other bodies receied in respect of the acqmsllion or -l]1struellon or fixed assets are treated a deferred capital grants and amonJsed III lllle with depreciation oer the life of thtmiddot asets
Income from research grants contracts and other se1ices rendered is Illcluded to the extent of the completion of the contract llr S(1ICe conecmed TillS is generally equivalent to the sum of the relevant expcndlture incurred during the year and any related contrihutions towards ocrheld costs Allmcome from sllOrt-tcrm deposas IS crcdlted to the income ll1J expendnurc account 111 the penod m wlllch 1l 1 eamed
ln~omc from endowments and donations IS l11cJuded to the extent of the relevant expendIture incurred dunng the yeaL together wah any related cnntributions toward overhead costs
Foreign currency translation TransactIOns denominated m foreIgn currencies are recorded at the rate of exchange ruling at the dates of the transaction Monetary assets and ilabilities denominated III foreIgn currencies arc transl3ted mtll euro eJlher at vear end rltes OL where there are related forward exchange contracts at contract rates The resultmg difference Ire dealt WIth in the determmalOIl of income and expenditure for the financial year
Tangible fixed assets
(a) Land and buildings The l)niverslty buildmgs arc valued at deprecIated replacement cost Land and buildl1g~ arc stated III the balall~c Sh-Cl at aluallon 011 the basis of depreciated replacement cost as they are specialised buildings and therefore it I~ not appropnate to value them 01 the basis of open market value The last aluarioll was carrid out on 3(1 September 1OQ-l The tniverlty has fixed the value of the Ind and huildlf]g~ a at 3( September 1994 as tIllS was the first veal of the implementatloll of generally lccepted accountng pnnciples in resped of Fixed ssets m presenting the fmanelal srawmcJ1Is of the lJi11versl1y Land and buildings acqulled SHlCC the vaiuation an included in the balance sheet at c(s Freehold land IS not depreciated FreelKtld huddings are deprecIated oel their expc~ted useful cconomlC hit Il the University of (1 ycars
llliersjt~ Colle Cork ationaI CniYersity of ireland Cork
STATEIE1 OF ACCOCTING POLICIES - coutinued
Tangihle fixed assets continued
(a I Land aud buildings - continued
here land and buildmgs are lcquired lth the ud of specIfic grants they are capItalIsed and deprecIated a aboe
The related grams are credIted Q a deferred capltai grant account and are released ((1 the IIlcomc and expenditure
account over the expected useful eCDnomlC llfc of the related asset on a basis consIstent with the depreciation POlICY
Fmancc costs hKh are directly attributable w the COl1structlOn of land and buildings are not capitalised as part of th cost ([ those Jssets
nlew for impJirment of a fixed asset is carned out If ecnts or changs in clrcumstanccs indIcate that the amount of the fixed asset may l1l)t be recocrable
Buildmgs under construction are accounted for at cost bascd on the Yllue of architect~ certificates and other direct ClqS mcurred to the financill velr end They are not dcpreewed until th(~ arc brought mto use
(ill Equipment 111 eqUlpment IS apnalised at cost Clpllaiised equIpment i depreCIated over Its useful economIc iife as fllows
Computer equipment 3 year~
Equipment 5 ye-ars
Where equipment is acquired with the aid of specific grams it is capitalised and depreCIated m accordance Ith the abo( policy with the related grant being credited to a defened capnal grant account and released to income and expendlfurc account over the expected useful economic life of the related equipment
Financial assets hxed asset Illvestments that arc listed on a reeogJ1lsed stock exchange are canied at market value The II1vestment 11 the
L lllverslfY T echnok)gv Centre PartnershIp has been revalued dunng the year to thc value u[ the tJniversl s share In the
plftnershlp Those that are not listed are canied at hIstorical cost less any proVIsion for impainnent in theIr value
Current a~sel in(~st1lents are included in the baiance sheet at the lower of their original cost and net reahsable value
Stocks Sto-b are Slated at the lower of their cost and net realisable alue -here necessary proVIsion is made for obsolete
skw mOing and defective Stock Expenditure incurred by tbe University on booki and consumable stocks finaned
(rc1m recunent grams are charged to the Income and Expenditure JccounL
Taxlltion -S an exempt charity thc University is not lIable for Corporation Tax or Income Tax on an ofns chantable actIVItIeS It b regIstered [or -alue Added Tax but smce the supply of edu~atlOn is an exempt acmity on whIch no output tax IS -harged Il IS unable to recover input tax on the maJonty of its purchases
Tradmg JclJvllles undertaken b the Cniversity an admllllstered through IlS subSIdiary compames whle11 as commerciai
(lrganisatlOns are hable to Corporation Tax
Liquid resources LIqUId reSlurcs include sums on short-term deposits with recugnlsed banks and buIlding societies and gocmmcm
SCUflllt=
Provisions ProvlslOns are recognised when the U1Ivcrslty has a present legal or eonslruclje oblIgatIOn as a result of a past event I 1 probable that j transfer cf economic benefit i11 be required to settic the oblIgation and il relIable CSlImate can be made
of the amount of the obligatIOn
tninrsity College Cork alional Cniersity of Ireland Cork
STATEIEiT OF ACCOl-TIiG POLICIES - continued
Pensiolls The CnlrsJ[ operates a diined benefit pensIon scheme Ililh assets held in a separately admll1islered fund The b~SIC rCl1rCmCDl pensions of Cniversit) staff are funded by comnbutiom 1(1 the ul1Iverst PensIOn Fund (the penion fund I
a a pre-determmed rate of penSIOnable pay Increases m baSIC retirement penSIOns hlch are pltlld through the pm101
fund arc repaid to the pensIOn fund by the umversity The penSlOl1 fund is valued acuarialh once III every three ears TiK las such alUatlOIl was carried OUI as at i October 2004
Pension benefits for ccnain other employees are met b pavlllems (1 a defined contribution pension scheme
CClllribullOns (ire charged to the income and expenditure account III the veal in willch th( fall duc
lllinrsity College Cork ational Cniversity of Ireland Cork
COSOLIDATED ICOME AD EXPEDlTCRE ACCOFT Year Ended 30 September 2004
1oles
Consolidattd 21104
pound000
Consolidated 2003
(OOll
Income
Srat rants
SlUJ~nl f~
Rs~arch grants and contract
AmortIsation of deferred capital grants
Olhr lpcrating income
Inters ll1ome
Ishy
4
~A~6
63-+4 4-01 II 1~Ibull ~ ___1
1831 7
7(0
~--3-q
11303
12AXO Q430
Total income 21 ~3(l~ IQ~ri~
Expenditure
Staff OSb
Olbr operallng expenses
DepreciatIon
Total expenditure
Deficit for the year after depreciatioll of assets before taxation
rJXJtion
Drfieit for the year after depreciation of assets and after taxation
Th~ d~jicit for the year aroe soleh from contInuing opcratiom
The fInancial ztatemems lln pages 8 w 3( were approvd the- G(YCn1111g Body on 1(l October 2006 and wer SIgned (l1
Its hehalf by
Signcd Professor Wrixon Dermot OMahoney Prcsldent j-llt)norar Treasurer
1
lnhersity College Cork ational blhersity of Ireland Cork
COSOLIDATED BAlACE SHEET 30 September 2004
otes
Consolidated
2004 CO(lO
2003 COOO
lnilrsit~
20()4 COOO
2lHl3 coou
Fhed assets
1 anglh Ie asset
Flnanci3 LSScl~ 10
11
Current assets
Swcks 12 314 351 291 3~)
Dchwr~ 1 L 32deg(11 1wCJRx 41206 J9~ J2
Ca~h al bank
3330- 5 ~37 41497 469]
Creditors AmOUlllS fallmg due wnhm nne
year (10UAX6) (76923)
et current liabilities
Total assets less current liabilities 301307 25C)6c)7 25756 114900
Creditors Amoums falling due after nne
vear l=
0 fC et assets 1(1)gt ll~flt 4 CHi4 A
123552Deferred capital grants
Represented by
Revenue rescrvcs C) 1l2396 (9750)
ReitJumion reserve If)
Total
The financwl mncmenb on pages ~ 10 3(1 were appr0cd bv the GOcming B0dv on ] () OCC1ber 20C6 and wcre OIl
I1s hehall
SIgned Professor Wrixon Dermot OMahoney Prcsidcnt Honorarv Treasurer
lninrsity College Cork ational lniycrsity of Ireland Cork
COSOLUHTED CASH FLOW STATEMENT OF HISTORIC COST SLRPLlSES AD DEFICITS Year Ended 30 September 004
h I~ 11) possihle to determine the difference hetween hlstoncal ost depreCHllion and the actual charge due w the facl thal
th 111ston~al cost infomlation IS not aailahl
STATDIET OF TOTAL RECOGISED GAIS AN)) LOSSES Year Ended 30 September ()()4
2004 fOOO
2003 fOOO
Defill all COlll1l1UIIlg operatIons after depre~lalon of assets at aluali(lfL
(t IsseIS and laX (2646)
Unrcdlsed surplus on revaluation of financial assets
Ttllal rcognised gail15 relatmg 10 the year
Reconciliation
126lCJO
gams (losses) for the year
Closmg resenes
lniHrsiry Colegt Cork alional Cniersity of I relund Cork
COSOLIDATED CASH FLOW STATE]lElT Year Ended 30 September 20(14
et cash outflow from operating activities
Returns on investments and seIleing of finance
expenditure and finanial mcstmem
e( cash outflow befon financing
Fmll1cmg
Decrease in cash in the period
Reconciliation of net cash flow to movement in net fundsdebt
Decrclse in cash m the period
Ctsh (luttlO from mcrease in debt and lease financmg
Change 111 nel debt resultlIlg from cashflows
on ash changes
(lemel1l 111 net debt in period
Cl debt at i October 2003
et ckbt CIt 30 September 2004
otes
24
21104 E()()O
(761)
( 18680
( 390U I
26
26
(341021
(0361)41---shy
lninrsity College Cork ational [niersit~ of Ireland Cork
ons TO THE ACCOCTS
Stale grants 20()4 2003 COOO COOO
)t1 grams allclcatcd for recurrent pllrrO~CS
Thc al-gt( gLlOt mome wa~ neclved from the Higher Educltlon Aulloril anc Ihe DcpanmeIH of J-kJllh amp Chldrell
2 Academic fees 200-1 2003 COOO CO()()
-cadcmic fee inccme
Total fces pale hy o[ on behalf of mdiyidual studems
- lOla ofC5073-lO 2003euro3084g(l23) lIlcluded in aCiJdemic icc income was pJld dIrectly by the lllgher Educalon uthorilY
Research grants and contracts
European Umon InduSlf
Other
-1 Other incollle
Other rental l11C(lme
Funded pClst lIlCOll1t
SlUdent rsidenccs 1OC0111C
Proflt on compulsory iJcqUlsition oj lands Profit on sale of lands Leisure facilitie InCOme
Demal IlOSPlliJl I1come
Other income
= Interest income
Inttres mcome
2()0-1 2U03 fOOO coon
3 i 078 023
3S33
2()0-1 2003 pound000 ClWO
19 ~()~ 3U5
391()
l(1Ci
(I(i
2213 X6(1
2305 2(
laquo242 UOCi
1 Sl i~
200~ 200J COOO COOU
6
tlliwrsi Colle[c Cork arional Lnhersity of Ireland Cork
OTES TO THE ACCOFTS - continued
Staff costs
rh~ 3Crage veekh number of perSClJ1S (mcludlllg senior jwsl-h(ldcrs) emploved by tht
cpresscd as full-urne equlalcm was
reahing and rsearch
TechmcJI
entral adnllnistraIon and serices
Other
Salaries and wages
Social welfare costs
Other pension costs
Other operating expenses
Consumables
BeaL light aler and power
Research consumables
R(palfS and general mailllcnallce
Audn and professional
Rent and rates
Other expenses
Other opcratmg expenses in~1 ude
Auditors remuneraIon
EXlcmal audit
Other seryices fro111 external audit
during the
UH4 umber
201)4
(000
119538
666
14LA7C)
2(1)4
(000
15A7 4 2603
1(L933 376
138 j
L531
2004 [000
cq
IF
2003 umber
1246
63
2003 fO()()
]05379
200] C(lIiO
2003 COOO
jll
1U-
14312
lnhersin Colle~( Cork arional lniversity of Ireland Cork
OTES TO THE ACCOtTS - continued
S Taxation
taXJllOll charge arises as the UlllvCrSll and il~ principal subndJar companies are exempt chantle and are not
hable for corporation tax or mcome tax on any of its charitabk actlvitles
I) Deficit on cOlltinuin~ operations for the year 20(14 2U(J3 [(IOU COOO
The deii-l on continuing operalJons for the vcar is made up a~ flllows
UniC~rslfS deficit for the vear
Surplus generated bv the subsidIary undenakmgs and transferred to the Univcrslt
Total
1
I uinlsity (olltj( (olk ~atiollall illi(rsil~ 01 Irdalltl Cork
NOI ES TO TilE A((OINTS
10 Tal~ihl( fix(d ass(ls
(( )NS()f J lgtAnl)
(0lt1 or valnation
At t ()cohcr200)
Additiotls
At
Is 311 21104
i)epncialioll
At 1 Oct(hcr 2(J03
(I Cd
tl) 2(11)1
Nrl hook aim
t I letobe WOJ
It Ill 211()4
fOlllillll((1
Land alld
hllildill~S
CHon
I 7ti6
57(iY
((l3)
379]
(() Ll
273I1U3
27350X
COIIIJlIII(middotr
(qlliplJI(lIt
(000
2(d~59
i23
1 JJ
2J 425
71 II
1434
4X39
EqllipllltlIl
COOO
iltU172 6+31
30514
9Y)()
20]X8
17331
Assets ill ((HI 1St or
COllstnldioll
ClUW
151)9
54512
109
Total
CIIOO
4IltX() 7Ui7
l) 1Yh2
IlI121
II
312(118
3(1)30
LamJ alld huiltiillll alld cquipnlCllt IIKludc assets valucd in Iljl)4 (In a dCpleCI1tet 1Cj111ccmcllt cosl hasis fL1 1lIOJ()) respectivelY land alld huildillils ami lssel in course (II cOllstructi(lil includes UX]X I IJ(IO
include C 51ltJ07()O() (lOll CJ1)I(lI()()()) in relatioll tn land and tile ACC(1l111tillg Standards Board Iliese land ami
ftilcsc buildillls IS that tlte
( ) nlccr oUTgt nUI(( I (~(() C127721J IO()) and CI 1 IlIeH 10 (2()(3
(11 Ii ecl(1ld Iaml willch is Iwl
The COlllllwlcial ellce of the trallsactiolls Slln
issued lire salv alld ulllllwtc
tll 1he lam] ami
~
--
- -
~
~
~
-
-=
shy
- = shy~
7
=-= -
Z
7 ~
~ - lt shy shy shy
shy
Z shy
Z
r X r
-
r
-= oJ c
= 0 ~
= -~-=
ti= ~
shy = =
~
~
t= Z
~
51
- Z ~ lt
0
r-~
(J n r--ltIoc r-
x
v ~ r l j r1 r- if
rr
T M rlt
r = j
= -j =
C
shy -
~ v ~ ~
shy shy
- - -
-0
lt - lt )
Z lt
1 0 x T x)C
F n ~
0middot1 r1~~
r -
r~
lt
0 lr ~ r1 n(1
l r~
ltj~
tniVCfsiry College Cork ttional Lniversiry of Ireland Cork
OTES TO THE ACC()l]TS - continued
11 Financial assets Consolid ated
2UO-l 2003 ((WO f(lOO
t nhersity 2004 2003
COOO COOO
InnSlInents at the veal end were held as follovs
( lthcr
3450
The investment in the Lmversllv Technology Centre Partnership ha~ been re31ued during the year tc the 3lue 0shythe Llmycrsny share inlhe partnership as at 31 December 2003
The tnhersity held an interest in the following subsidiary undertakings
Subsidhlry undertakings
Incorporated
Propem ianagement (LeC) Limited
Campm ccommOdali(111 C) Limned
Art Gallery (liCC) Limiled
Brcnard Limited
1ardykc LeIsure (U ce) Limited
At Ie Press Limited
(iivlC Holding~ Limlled
11 Stocks
Consumables
FIlllshed goods for resale
Prindplil activity
Property development
Accommodation rcntal
11 gallery
Leasing or lands
PublIshing
Dornnnt
Interest 0 0
J00
100
100
100
1(lOo
Consolidated
2004 2003 COOO (0110
65
Registered officeplace of business
City Chamhers 4
Cork
limversl1Y Cork Aestern Road Cork University Cork Vestern Road Cork University College Cork Western Road Cork liniversiry College Cork Western Road Cork Crawford Business Park Crosses Green Cork St Kildas Western Road Cork
Clliversity
O()4 2001 [(lOU COOO
36
fhere io no malcnal difference between the balance sheet amount of slOcks and Its replacement cost
13 Debtors
Trad- debtors
Res-arh grants and colllraCls receiabk
nwunts due from suhsldmrv undertakings
Slale gr~ml reciabk
(lther tJJtWIl and s(lcial Illsurancc
Other deotiJrs
C ollsolida ted Llliycrsif
2(104 2003 2004 200 [000 COOO COOO f(I00
S34 -Li06 67U
601 753 6015 j J0(
1~S26 766 12S~6
11 -- 3 f~ 51 t
lJ
~ q()l --l12(j( ~ ~
CnhlIsit~ College Cork ationallniersity of Ireland Cork
OTES TO THE CCOCTS - continued
1-1 Creditors Amounts fallillg due within Dill year Consolidated lnjyersit~
20114 2003 2004 2003 COOO COOO [000 C(lOU
Trad rcdjtor~ 7501 Cl295 (702
Research grants and contracts III advance I(i5 5 1150i 1U5~ -cademic fee~ receied in advance 11(1()4 QOM 110CJ4 ()01gt4
State grant receied m advance 118 I 1535 513~ Bank loans 8 overdrafts (note 16) 3O 39 416 1606 333~
Amounts owed to subsidiary undenakmgs -113 4SS~
Other taxatIOn and SOCIal security -+394 0 41 42()9 SAl (i
Deftrred incJll1e 19(3 9131
Other creditors 8 accruals lOOARA R9~~
15 Creditors Amounts falling due after one year Consolidated linivcrsi t)
200-1 2003 2004 20U3 ((lOO COOO (000 COOO
Bank loans (note 16) ~ 1 - -_-
16 Borrowings Consolidated University
2004 2003 2004 2003 (000 (000 fOOO (IOU
Bank loans and overdrafts
Bank loan and oerdrafts are repayable as follows
III one year or less 3073Q 41 6 8606 33~
O~(Between one and twe veal 221 1693 1ampshy
Between two ard 11 H years 872 (i 104 604Q 3+05
In fiC y~ar or more
TCHal 6360 1 3400( I ~~ ~
ature and Securiry of Borrowings stated tn Note 10 F1Xed Assets hae been accounted for in accordance with FRS 5 The ab[)vc liabilIl16 represent the uhimate lwbilitie to repurchase the assct~ concerned The borrowJI1gs arc secured bv title until the repurchae takes place
lniYlrsit Colleu ( Cork -ational lniversity of Ireland Cork
-OTES TO THE ACCOCTS - continued
1~ Deferred capital grants HEA
COOO
Other grants and
benefactors (000
Total
COOO
C olsolida ted
At 1 October 2003
BuJldmg~
EJuipment
Tota
414 45677 8-31
Cash received Buildmg
Equipment
Tolal
b53-l 153~5 -l U59
Released to income and expenditure
Buildmgs
Equipment
TClaj
1449 )
~
9~3
1-1 ---
) iii _) shy
1L~~~
At 3() Septemher 20()t
B u ild 1111
Equipmem
T pta I
66639
7(91
600 i 9
-09A
I 6-] ~
14UltC)
l ni(~rsit C olieo ( Cork arional Cnhersity of Ireland Cork
OTES TO THE ACCOl1TS - continued
1i Deferred capital grants continued HEA
(non
t niersity
At 1 October 21Hl3
B uil dlllb
Eqmpmem
Total
Cash received
Buddmggt EqUIpment
TOla
Released to income and expenditur( 1 1 7Buildmg )
Equipmcl1l
Total )S3
At 30 September 200
Buildll1g~ 61324
EqUlpmcm Tora (~=5
IS Revaluation reser( Consolidated
2004 2003 (lOO ((lOU
At 1 October as pcr nOle 10) 135940
Reuluatlons or inesrmerm in the penod InOle I 1
t W Serlember
Other gran IS Total and
henefactors (000 COOO
3515 -=37(J
81 2149
4465 7i ~
XXh(1
51627 112951
~65(1
6()
Lnjcrsity 200 20()3
f ono C 000
35040
lniYcrsiry Collegl Cork iarional Llliycrsit~ of Ireland Cork
iOTES TO THE ACCOl1TS - continued
1(J Reconciliation of movcment of reservcs Revenue Revaluation Total reserves reserves
COOO pound1000 ooo
Consolidattd
1 I October 211(0shy 6]90
D(bcll on comlllumg l)perations revaluation
I ( Septemher 20(14
middott I Octoher 2003 13940 126241
Deficll or eommumg operations revaluation
3( September 2004 1RR~]
W Contingencies
The U11lversil from tIme ll time is party to yariow legal proceedings The Offieers of the University havc been mlormed hy then legal advisors that it is not possibie at this time to make a rellable estimme of the finanCIal effects (if an~l of tiles cases
t 3( September 2004 a cO1ll1gent lIabIlity existed in respect of potential Value Added Tax in the amoum of C2 rmbon together with substantial potential imeresl and penalties This potentIa] habilItv was setllc~d in January 006 at a lesser amount and the effect on the Income and Expenditure -ecount is no material
21 Capital commitments Consolidatcd Univcrsity
2004 2003 2004 2003 (000 (000 COOO (000
Comracted for but nO promiddotided 69143
Authorised but not omracted out 18304 i 49]Q
tninrsity College Cork ationa lniversity of Ireland Cork
OTES TO THE AccorTS - (ontillucmiddotd
Reconciliation of consolidated operating deficit to net cash outflow from operating activities
Dilcit on conlJnuing operalJons afier depreciation of assets at valuatlOn Dcpr(clat10n D~fcfT(d apital grants released W income Proiit on dIsposal of tangible fixed as~ets D~rcase m stocks Increase m debtors
Drcflse m creditors
on cash changes lmerest receivable Imerest em Iiabiliy 10 Investors under FRS Increase m invcstment aluation
et cash outflow from opernt1l1g aClivilJes
23 Returns on inwstments and servicing of finance
Other lterest received Interes paid on habihty to investors under FRSS
ct cash inGow from returns on lllvestments and senlcing of finance
24 Capital expenditure and financial illYestment
iurh3se of tangible fixed assets Sak of tangible fixed assets (see note 10) Deferred capnal grants receIved
Net cash outflow from capital expendllure and finanClallllestmcm
2()l4
CIIOO
12(46) 1C) ~ 21
( 11253 ) (64 0 )
(]3006) f~(24)
15 (3011 11)62
11
( 14 361
2004 (000
301 ( 1(1621
7611
2004 C()(l()
S57 70(1
SC)4T
ISoRO
lniversit~ College Cork arional tniversity of Ireland Cork
OTES TO THE ACCOCTS - continued
15 Financing 200-1 (000
Dht due within ant year Drclse 111 shon term hononn~
Dent due lyand one year Increase in long tenl1 borw1I1g
1et -ash inflow frorr financing
26 nalsis of changes in net debt At CashOows Other At I October Non cash 30 September
2003 changes 2004 POOH (000 POOO COOO
C~sh 111 hand and at hank 5 3 9Z l)vcrdrafts
539( (21)5021
Deht due within I year (-US6) 1C)[9 (~37)
Debt due after J vear 62R) (19) (7241 Llabilll to invctors under FRS (125) (24231 i
125 163f()4iTCltal
27 Related parties
Transactions Jh suhsidlanes of the UlllversllY have been eillninated on consdidauon and 11(1 disclosure or these transactIOn has therefore been gIven The Lnlerslty had the following transactIOns with related panics on 1 DeCember 1995 Irish Universitl Student Trust entered into a twent five year lease or AnlS 113 Mac Lemn from Lmverslty College Cork at an annual rental dE44A4J pel annum The trustees oflnsh UnirSH Studem Trust are the PrerdenL Secreta and Bursar and Fllance Officer elf ljmvcrsll Cork
l ninrsit College Cork ationaJ lininrsit~ of Ireland Cork
OTES TO THE ACC01T5 - COli tinned
8 Pcnsions
3 ~ PenSIon for substantiaEy all employees are funded through a defined henefit pension schemelt
The lniwrsl oper3tes a defined henefit penSlOll scheme wllh assets held 111 a separately admmlstered fund The total pension cost w the UniversHy ltas f14J)-4 Q 4J (2003 f12(J]-~13L The Illost recen uctuanul
aluation as undenaken as at 1 Octoher 2004 hy consuting actuanes uS1l1g the attained age methodlt The
princIpal assumptIon used in the actuarial valuatlOn was that the long-term annual rale of return on 1I1vestment would exceedtbe mcrease 111 pensionable earnIngs by 2) The 1ens1On and Trust Funds are not included 1I1
the Balance Sheet hecause they arc funds w1111 a separate COHSlltu1l0n from the general assets and ltabilJtie~ of the t11lerSlllaquo
t the date of tbe last actuaria I valuation the market aluc of the scheme s assets was sufTiclCl1t to cover 9lt
of the accrued liabilitleslt based on currcnt eammgs and also allowlllg for expected future mcreascs m eammgslt
The ul1lversny also operates a defmed contributIon penslOn scheme that covers cenain empl(1yees of the
ul11ersirvlt The assets of the scheme are invested by independent trustees for the benefit of these emplovees
ContributIOns to tim pension scheme for the year amounted to C02(il15 (2003 fJ A4F788I
b Financial Reporting STandard 1- Retirement Bellefirs disclosures
The alual1on of the Superannuation Plan benefits for the purposes of FRS 10 disclosures was based on the
results of the actuanal valuation ~aITlcd out as at 0 1102004 suItably adjusted to ~Onr()m1 to the requirements
of FRS 1- The impact of the penSlOn obligations of benchmarkmg awards due but not vet paid has been
mcluded The financlal assumptions used w calulate the retIrement cbltgatJons under FRS I were as follows
2004 2003
Valuation method Projected Projected Luit Luit
Dicou11l rate ) JlOdeg) )lt50
In118tio11 rale 250deg(1 250middot
Satan 1I1lTeases LO 450deg()
PenSlOll Supplemel1latlon 350l~middott 350o (J
t nhersity Coll(ge Cork gtational Lniversity of Ireland Cork
gtOTpound5 TO THE ACCOlgtTS continued
b Financial ReporrillK Standard 1- Rctircmcnr Bcncfirs discloswc (coltinued)
Th market value of the assets 111 the penSIOn schenk the expected rates of return and the hllgallOns as at 300920(11 togethe WIth the pnor vear arc ShC11 belo
2004 2003 cooo coon
Equities ~ ~5deg iJ 11Q708 800 1~346
Bonds -f ~()(I( 22456 150[0 lfd29
PropertY 65degu ImiddotUP 00( 14330
)Clsh 21 O()~() 2]0
TOW market alue of assets 1GL933 166623
Actual Value of Labilny
PenSlun Deficll
Related deferred tax Iiabiit~
et PellSlOn Llabi hty
Analysis of the amount that would have heen charg(d HI operating profit under FRS 17 is as foil () s
2004 2003 COOO (000
Curren Selce Cost 1710 1
Past SeTyice Cost
Tow Operatmg Charge
Analysis of the amount that would lUlVe been credited to other finance income under FRS]7 is as
follows
2004 2003 (000 COOIl
retum 011 s-heme asct~ 1U104
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
Deloitte
t plannd and re~forrnd our audll so as W ontam al] tht mfCrn1G110n and explanatloflS whIch we
COflSldered necessar) m order [( provide u with sufficient cYlcience 10 rcaonahle assurance that the rinancxal statement 3re free from mmenal misstatement whether aused h fraud or other megularity 0
~ITOr 1n fOITmng our Opll1lOD we also evaluated the oyerall adequac) of the presentalon of informauon Hi [h~
financIal Slnemenrs
Qualified opinion arising from non lomplianc( with alcouIHillg and disclo~ure requirements of Statement of Standard Accounting Practice 24 Aclounting for Pension Costs
Til Cniverslt has not complIed with the accounllng and dIsclosure reqUlremellls of Statement of Standard
A~counl1ng Pral1cc 24 Accoummg for PenslOn COftS pamcularh m respect of pension supplementation 111
respect of mcreases III penSIOns payable It IS not pracllcable to quantify the impact of this non-complwnce
lll the reponed finanCIal position of th~ limversllY
fo~ the failure [e provide the dIsclosure aud the adlustmel1l that mIght have heen found tll be
necessary [( compiy Ith the accountmi2 and dIsclosure reqUIrements 0 Stllemem 01 Standard Accountmg Pracuc 4 in ou opimon the finanCIal tatements on pages 1 [(1 30 a true 3nd fair viev 0 the stale of Gflai-s of the UIllverSl and the Umversny Group at 3(l Septemher 2(l(i4 and of the deficit of the UmverSl Group for the year then euded and han heen prepGred lJ1 accordance WIth generally accepted accountmg
Dnnclples
- have obtamed all the mforrnanon and explanatIOns Wt consider necessary for the purposes of our audlL
III our opInIOn proper book of account hae been kept by the Ul1vcrsll The halance sheCI of the tll ersit 1 111 dffcemCll WIth the hook~ of account
Deloitte amp Touche l Lapp (lUi1V
Cork
Dare
Lninrsit~ College Cork ational Llliversity oflrcIand Cork
STA TElET OF ACCO(TIG POLICIES
The ~l=niflca1l accounting poiJies adopted b~ the UI1lVerSI are as f(lbws
Basi~ of preparation The fil1Jncwi statements have been prepared in accordance Wilh accounting standards generally accepted in Ireland md the SWltmenl of Recommended Praclice-Accountmg for Further and Highcr Education lnstltUlions ccountmg swnci1rds generally accepted in lreland in preparing financ131 statements a true and fair vie (Ire thOse publihed h the lnSmlc of Chartered ccoumants in Ireland and Issued hy the Ac~counl1ng Standards Board
ccounting convention The aCoullts hlve been preplred under the hIstorical cost C(11vcntwn modIfied h the reyalu1tion of certam land and hUlldmgs
Basis of consolidation The consolidated financial statements l11clude the li111verSl and llS suhsldlary undertakings and other undertakings 1ll
hi11 the Umverslt has a financial InteresL as indICated III nOll 11 The results of subsidianes acquired or dIsposed of dunng the penod are included in the consolidated Income and expendllure account from the date of acquisition (lr up te th~ dale of dIsposaL lntra-group sales and profits are climinatltd fully on consolidatlon
in accordance with FRS2 the actiities of the Students Umons have not heen consolJdated because the University docs not control those aCllvIlle The financial statements of Cork l111ersiry Foundatlon Limited Unicrsity Cork Ptnsion Fund and Trust Fund arc also excluded as they are not controlled by the Ljmcrsl
Rccognition of income Rc~urrent grants trom the Fhgher Education Authority an recognised 111 the period in which they are receivable
NL)n-rCcurrent grants from the Higher Educallon iuthority or other bodies receied in respect of the acqmsllion or -l]1struellon or fixed assets are treated a deferred capital grants and amonJsed III lllle with depreciation oer the life of thtmiddot asets
Income from research grants contracts and other se1ices rendered is Illcluded to the extent of the completion of the contract llr S(1ICe conecmed TillS is generally equivalent to the sum of the relevant expcndlture incurred during the year and any related contrihutions towards ocrheld costs Allmcome from sllOrt-tcrm deposas IS crcdlted to the income ll1J expendnurc account 111 the penod m wlllch 1l 1 eamed
ln~omc from endowments and donations IS l11cJuded to the extent of the relevant expendIture incurred dunng the yeaL together wah any related cnntributions toward overhead costs
Foreign currency translation TransactIOns denominated m foreIgn currencies are recorded at the rate of exchange ruling at the dates of the transaction Monetary assets and ilabilities denominated III foreIgn currencies arc transl3ted mtll euro eJlher at vear end rltes OL where there are related forward exchange contracts at contract rates The resultmg difference Ire dealt WIth in the determmalOIl of income and expenditure for the financial year
Tangible fixed assets
(a) Land and buildings The l)niverslty buildmgs arc valued at deprecIated replacement cost Land and buildl1g~ arc stated III the balall~c Sh-Cl at aluallon 011 the basis of depreciated replacement cost as they are specialised buildings and therefore it I~ not appropnate to value them 01 the basis of open market value The last aluarioll was carrid out on 3(1 September 1OQ-l The tniverlty has fixed the value of the Ind and huildlf]g~ a at 3( September 1994 as tIllS was the first veal of the implementatloll of generally lccepted accountng pnnciples in resped of Fixed ssets m presenting the fmanelal srawmcJ1Is of the lJi11versl1y Land and buildings acqulled SHlCC the vaiuation an included in the balance sheet at c(s Freehold land IS not depreciated FreelKtld huddings are deprecIated oel their expc~ted useful cconomlC hit Il the University of (1 ycars
llliersjt~ Colle Cork ationaI CniYersity of ireland Cork
STATEIE1 OF ACCOCTING POLICIES - coutinued
Tangihle fixed assets continued
(a I Land aud buildings - continued
here land and buildmgs are lcquired lth the ud of specIfic grants they are capItalIsed and deprecIated a aboe
The related grams are credIted Q a deferred capltai grant account and are released ((1 the IIlcomc and expenditure
account over the expected useful eCDnomlC llfc of the related asset on a basis consIstent with the depreciation POlICY
Fmancc costs hKh are directly attributable w the COl1structlOn of land and buildings are not capitalised as part of th cost ([ those Jssets
nlew for impJirment of a fixed asset is carned out If ecnts or changs in clrcumstanccs indIcate that the amount of the fixed asset may l1l)t be recocrable
Buildmgs under construction are accounted for at cost bascd on the Yllue of architect~ certificates and other direct ClqS mcurred to the financill velr end They are not dcpreewed until th(~ arc brought mto use
(ill Equipment 111 eqUlpment IS apnalised at cost Clpllaiised equIpment i depreCIated over Its useful economIc iife as fllows
Computer equipment 3 year~
Equipment 5 ye-ars
Where equipment is acquired with the aid of specific grams it is capitalised and depreCIated m accordance Ith the abo( policy with the related grant being credited to a defened capnal grant account and released to income and expendlfurc account over the expected useful economic life of the related equipment
Financial assets hxed asset Illvestments that arc listed on a reeogJ1lsed stock exchange are canied at market value The II1vestment 11 the
L lllverslfY T echnok)gv Centre PartnershIp has been revalued dunng the year to thc value u[ the tJniversl s share In the
plftnershlp Those that are not listed are canied at hIstorical cost less any proVIsion for impainnent in theIr value
Current a~sel in(~st1lents are included in the baiance sheet at the lower of their original cost and net reahsable value
Stocks Sto-b are Slated at the lower of their cost and net realisable alue -here necessary proVIsion is made for obsolete
skw mOing and defective Stock Expenditure incurred by tbe University on booki and consumable stocks finaned
(rc1m recunent grams are charged to the Income and Expenditure JccounL
Taxlltion -S an exempt charity thc University is not lIable for Corporation Tax or Income Tax on an ofns chantable actIVItIeS It b regIstered [or -alue Added Tax but smce the supply of edu~atlOn is an exempt acmity on whIch no output tax IS -harged Il IS unable to recover input tax on the maJonty of its purchases
Tradmg JclJvllles undertaken b the Cniversity an admllllstered through IlS subSIdiary compames whle11 as commerciai
(lrganisatlOns are hable to Corporation Tax
Liquid resources LIqUId reSlurcs include sums on short-term deposits with recugnlsed banks and buIlding societies and gocmmcm
SCUflllt=
Provisions ProvlslOns are recognised when the U1Ivcrslty has a present legal or eonslruclje oblIgatIOn as a result of a past event I 1 probable that j transfer cf economic benefit i11 be required to settic the oblIgation and il relIable CSlImate can be made
of the amount of the obligatIOn
tninrsity College Cork alional Cniersity of Ireland Cork
STATEIEiT OF ACCOl-TIiG POLICIES - continued
Pensiolls The CnlrsJ[ operates a diined benefit pensIon scheme Ililh assets held in a separately admll1islered fund The b~SIC rCl1rCmCDl pensions of Cniversit) staff are funded by comnbutiom 1(1 the ul1Iverst PensIOn Fund (the penion fund I
a a pre-determmed rate of penSIOnable pay Increases m baSIC retirement penSIOns hlch are pltlld through the pm101
fund arc repaid to the pensIOn fund by the umversity The penSlOl1 fund is valued acuarialh once III every three ears TiK las such alUatlOIl was carried OUI as at i October 2004
Pension benefits for ccnain other employees are met b pavlllems (1 a defined contribution pension scheme
CClllribullOns (ire charged to the income and expenditure account III the veal in willch th( fall duc
lllinrsity College Cork ational Cniversity of Ireland Cork
COSOLIDATED ICOME AD EXPEDlTCRE ACCOFT Year Ended 30 September 2004
1oles
Consolidattd 21104
pound000
Consolidated 2003
(OOll
Income
Srat rants
SlUJ~nl f~
Rs~arch grants and contract
AmortIsation of deferred capital grants
Olhr lpcrating income
Inters ll1ome
Ishy
4
~A~6
63-+4 4-01 II 1~Ibull ~ ___1
1831 7
7(0
~--3-q
11303
12AXO Q430
Total income 21 ~3(l~ IQ~ri~
Expenditure
Staff OSb
Olbr operallng expenses
DepreciatIon
Total expenditure
Deficit for the year after depreciatioll of assets before taxation
rJXJtion
Drfieit for the year after depreciation of assets and after taxation
Th~ d~jicit for the year aroe soleh from contInuing opcratiom
The fInancial ztatemems lln pages 8 w 3( were approvd the- G(YCn1111g Body on 1(l October 2006 and wer SIgned (l1
Its hehalf by
Signcd Professor Wrixon Dermot OMahoney Prcsldent j-llt)norar Treasurer
1
lnhersity College Cork ational blhersity of Ireland Cork
COSOLIDATED BAlACE SHEET 30 September 2004
otes
Consolidated
2004 CO(lO
2003 COOO
lnilrsit~
20()4 COOO
2lHl3 coou
Fhed assets
1 anglh Ie asset
Flnanci3 LSScl~ 10
11
Current assets
Swcks 12 314 351 291 3~)
Dchwr~ 1 L 32deg(11 1wCJRx 41206 J9~ J2
Ca~h al bank
3330- 5 ~37 41497 469]
Creditors AmOUlllS fallmg due wnhm nne
year (10UAX6) (76923)
et current liabilities
Total assets less current liabilities 301307 25C)6c)7 25756 114900
Creditors Amoums falling due after nne
vear l=
0 fC et assets 1(1)gt ll~flt 4 CHi4 A
123552Deferred capital grants
Represented by
Revenue rescrvcs C) 1l2396 (9750)
ReitJumion reserve If)
Total
The financwl mncmenb on pages ~ 10 3(1 were appr0cd bv the GOcming B0dv on ] () OCC1ber 20C6 and wcre OIl
I1s hehall
SIgned Professor Wrixon Dermot OMahoney Prcsidcnt Honorarv Treasurer
lninrsity College Cork ational lniycrsity of Ireland Cork
COSOLUHTED CASH FLOW STATEMENT OF HISTORIC COST SLRPLlSES AD DEFICITS Year Ended 30 September 004
h I~ 11) possihle to determine the difference hetween hlstoncal ost depreCHllion and the actual charge due w the facl thal
th 111ston~al cost infomlation IS not aailahl
STATDIET OF TOTAL RECOGISED GAIS AN)) LOSSES Year Ended 30 September ()()4
2004 fOOO
2003 fOOO
Defill all COlll1l1UIIlg operatIons after depre~lalon of assets at aluali(lfL
(t IsseIS and laX (2646)
Unrcdlsed surplus on revaluation of financial assets
Ttllal rcognised gail15 relatmg 10 the year
Reconciliation
126lCJO
gams (losses) for the year
Closmg resenes
lniHrsiry Colegt Cork alional Cniersity of I relund Cork
COSOLIDATED CASH FLOW STATE]lElT Year Ended 30 September 20(14
et cash outflow from operating activities
Returns on investments and seIleing of finance
expenditure and finanial mcstmem
e( cash outflow befon financing
Fmll1cmg
Decrease in cash in the period
Reconciliation of net cash flow to movement in net fundsdebt
Decrclse in cash m the period
Ctsh (luttlO from mcrease in debt and lease financmg
Change 111 nel debt resultlIlg from cashflows
on ash changes
(lemel1l 111 net debt in period
Cl debt at i October 2003
et ckbt CIt 30 September 2004
otes
24
21104 E()()O
(761)
( 18680
( 390U I
26
26
(341021
(0361)41---shy
lninrsity College Cork ational [niersit~ of Ireland Cork
ons TO THE ACCOCTS
Stale grants 20()4 2003 COOO COOO
)t1 grams allclcatcd for recurrent pllrrO~CS
Thc al-gt( gLlOt mome wa~ neclved from the Higher Educltlon Aulloril anc Ihe DcpanmeIH of J-kJllh amp Chldrell
2 Academic fees 200-1 2003 COOO CO()()
-cadcmic fee inccme
Total fces pale hy o[ on behalf of mdiyidual studems
- lOla ofC5073-lO 2003euro3084g(l23) lIlcluded in aCiJdemic icc income was pJld dIrectly by the lllgher Educalon uthorilY
Research grants and contracts
European Umon InduSlf
Other
-1 Other incollle
Other rental l11C(lme
Funded pClst lIlCOll1t
SlUdent rsidenccs 1OC0111C
Proflt on compulsory iJcqUlsition oj lands Profit on sale of lands Leisure facilitie InCOme
Demal IlOSPlliJl I1come
Other income
= Interest income
Inttres mcome
2()0-1 2U03 fOOO coon
3 i 078 023
3S33
2()0-1 2003 pound000 ClWO
19 ~()~ 3U5
391()
l(1Ci
(I(i
2213 X6(1
2305 2(
laquo242 UOCi
1 Sl i~
200~ 200J COOO COOU
6
tlliwrsi Colle[c Cork arional Lnhersity of Ireland Cork
OTES TO THE ACCOFTS - continued
Staff costs
rh~ 3Crage veekh number of perSClJ1S (mcludlllg senior jwsl-h(ldcrs) emploved by tht
cpresscd as full-urne equlalcm was
reahing and rsearch
TechmcJI
entral adnllnistraIon and serices
Other
Salaries and wages
Social welfare costs
Other pension costs
Other operating expenses
Consumables
BeaL light aler and power
Research consumables
R(palfS and general mailllcnallce
Audn and professional
Rent and rates
Other expenses
Other opcratmg expenses in~1 ude
Auditors remuneraIon
EXlcmal audit
Other seryices fro111 external audit
during the
UH4 umber
201)4
(000
119538
666
14LA7C)
2(1)4
(000
15A7 4 2603
1(L933 376
138 j
L531
2004 [000
cq
IF
2003 umber
1246
63
2003 fO()()
]05379
200] C(lIiO
2003 COOO
jll
1U-
14312
lnhersin Colle~( Cork arional lniversity of Ireland Cork
OTES TO THE ACCOtTS - continued
S Taxation
taXJllOll charge arises as the UlllvCrSll and il~ principal subndJar companies are exempt chantle and are not
hable for corporation tax or mcome tax on any of its charitabk actlvitles
I) Deficit on cOlltinuin~ operations for the year 20(14 2U(J3 [(IOU COOO
The deii-l on continuing operalJons for the vcar is made up a~ flllows
UniC~rslfS deficit for the vear
Surplus generated bv the subsidIary undenakmgs and transferred to the Univcrslt
Total
1
I uinlsity (olltj( (olk ~atiollall illi(rsil~ 01 Irdalltl Cork
NOI ES TO TilE A((OINTS
10 Tal~ihl( fix(d ass(ls
(( )NS()f J lgtAnl)
(0lt1 or valnation
At t ()cohcr200)
Additiotls
At
Is 311 21104
i)epncialioll
At 1 Oct(hcr 2(J03
(I Cd
tl) 2(11)1
Nrl hook aim
t I letobe WOJ
It Ill 211()4
fOlllillll((1
Land alld
hllildill~S
CHon
I 7ti6
57(iY
((l3)
379]
(() Ll
273I1U3
27350X
COIIIJlIII(middotr
(qlliplJI(lIt
(000
2(d~59
i23
1 JJ
2J 425
71 II
1434
4X39
EqllipllltlIl
COOO
iltU172 6+31
30514
9Y)()
20]X8
17331
Assets ill ((HI 1St or
COllstnldioll
ClUW
151)9
54512
109
Total
CIIOO
4IltX() 7Ui7
l) 1Yh2
IlI121
II
312(118
3(1)30
LamJ alld huiltiillll alld cquipnlCllt IIKludc assets valucd in Iljl)4 (In a dCpleCI1tet 1Cj111ccmcllt cosl hasis fL1 1lIOJ()) respectivelY land alld huildillils ami lssel in course (II cOllstructi(lil includes UX]X I IJ(IO
include C 51ltJ07()O() (lOll CJ1)I(lI()()()) in relatioll tn land and tile ACC(1l111tillg Standards Board Iliese land ami
ftilcsc buildillls IS that tlte
( ) nlccr oUTgt nUI(( I (~(() C127721J IO()) and CI 1 IlIeH 10 (2()(3
(11 Ii ecl(1ld Iaml willch is Iwl
The COlllllwlcial ellce of the trallsactiolls Slln
issued lire salv alld ulllllwtc
tll 1he lam] ami
~
--
- -
~
~
~
-
-=
shy
- = shy~
7
=-= -
Z
7 ~
~ - lt shy shy shy
shy
Z shy
Z
r X r
-
r
-= oJ c
= 0 ~
= -~-=
ti= ~
shy = =
~
~
t= Z
~
51
- Z ~ lt
0
r-~
(J n r--ltIoc r-
x
v ~ r l j r1 r- if
rr
T M rlt
r = j
= -j =
C
shy -
~ v ~ ~
shy shy
- - -
-0
lt - lt )
Z lt
1 0 x T x)C
F n ~
0middot1 r1~~
r -
r~
lt
0 lr ~ r1 n(1
l r~
ltj~
tniVCfsiry College Cork ttional Lniversiry of Ireland Cork
OTES TO THE ACC()l]TS - continued
11 Financial assets Consolid ated
2UO-l 2003 ((WO f(lOO
t nhersity 2004 2003
COOO COOO
InnSlInents at the veal end were held as follovs
( lthcr
3450
The investment in the Lmversllv Technology Centre Partnership ha~ been re31ued during the year tc the 3lue 0shythe Llmycrsny share inlhe partnership as at 31 December 2003
The tnhersity held an interest in the following subsidiary undertakings
Subsidhlry undertakings
Incorporated
Propem ianagement (LeC) Limited
Campm ccommOdali(111 C) Limned
Art Gallery (liCC) Limiled
Brcnard Limited
1ardykc LeIsure (U ce) Limited
At Ie Press Limited
(iivlC Holding~ Limlled
11 Stocks
Consumables
FIlllshed goods for resale
Prindplil activity
Property development
Accommodation rcntal
11 gallery
Leasing or lands
PublIshing
Dornnnt
Interest 0 0
J00
100
100
100
1(lOo
Consolidated
2004 2003 COOO (0110
65
Registered officeplace of business
City Chamhers 4
Cork
limversl1Y Cork Aestern Road Cork University Cork Vestern Road Cork University College Cork Western Road Cork liniversiry College Cork Western Road Cork Crawford Business Park Crosses Green Cork St Kildas Western Road Cork
Clliversity
O()4 2001 [(lOU COOO
36
fhere io no malcnal difference between the balance sheet amount of slOcks and Its replacement cost
13 Debtors
Trad- debtors
Res-arh grants and colllraCls receiabk
nwunts due from suhsldmrv undertakings
Slale gr~ml reciabk
(lther tJJtWIl and s(lcial Illsurancc
Other deotiJrs
C ollsolida ted Llliycrsif
2(104 2003 2004 200 [000 COOO COOO f(I00
S34 -Li06 67U
601 753 6015 j J0(
1~S26 766 12S~6
11 -- 3 f~ 51 t
lJ
~ q()l --l12(j( ~ ~
CnhlIsit~ College Cork ationallniersity of Ireland Cork
OTES TO THE CCOCTS - continued
1-1 Creditors Amounts fallillg due within Dill year Consolidated lnjyersit~
20114 2003 2004 2003 COOO COOO [000 C(lOU
Trad rcdjtor~ 7501 Cl295 (702
Research grants and contracts III advance I(i5 5 1150i 1U5~ -cademic fee~ receied in advance 11(1()4 QOM 110CJ4 ()01gt4
State grant receied m advance 118 I 1535 513~ Bank loans 8 overdrafts (note 16) 3O 39 416 1606 333~
Amounts owed to subsidiary undenakmgs -113 4SS~
Other taxatIOn and SOCIal security -+394 0 41 42()9 SAl (i
Deftrred incJll1e 19(3 9131
Other creditors 8 accruals lOOARA R9~~
15 Creditors Amounts falling due after one year Consolidated linivcrsi t)
200-1 2003 2004 20U3 ((lOO COOO (000 COOO
Bank loans (note 16) ~ 1 - -_-
16 Borrowings Consolidated University
2004 2003 2004 2003 (000 (000 fOOO (IOU
Bank loans and overdrafts
Bank loan and oerdrafts are repayable as follows
III one year or less 3073Q 41 6 8606 33~
O~(Between one and twe veal 221 1693 1ampshy
Between two ard 11 H years 872 (i 104 604Q 3+05
In fiC y~ar or more
TCHal 6360 1 3400( I ~~ ~
ature and Securiry of Borrowings stated tn Note 10 F1Xed Assets hae been accounted for in accordance with FRS 5 The ab[)vc liabilIl16 represent the uhimate lwbilitie to repurchase the assct~ concerned The borrowJI1gs arc secured bv title until the repurchae takes place
lniYlrsit Colleu ( Cork -ational lniversity of Ireland Cork
-OTES TO THE ACCOCTS - continued
1~ Deferred capital grants HEA
COOO
Other grants and
benefactors (000
Total
COOO
C olsolida ted
At 1 October 2003
BuJldmg~
EJuipment
Tota
414 45677 8-31
Cash received Buildmg
Equipment
Tolal
b53-l 153~5 -l U59
Released to income and expenditure
Buildmgs
Equipment
TClaj
1449 )
~
9~3
1-1 ---
) iii _) shy
1L~~~
At 3() Septemher 20()t
B u ild 1111
Equipmem
T pta I
66639
7(91
600 i 9
-09A
I 6-] ~
14UltC)
l ni(~rsit C olieo ( Cork arional Cnhersity of Ireland Cork
OTES TO THE ACCOl1TS - continued
1i Deferred capital grants continued HEA
(non
t niersity
At 1 October 21Hl3
B uil dlllb
Eqmpmem
Total
Cash received
Buddmggt EqUIpment
TOla
Released to income and expenditur( 1 1 7Buildmg )
Equipmcl1l
Total )S3
At 30 September 200
Buildll1g~ 61324
EqUlpmcm Tora (~=5
IS Revaluation reser( Consolidated
2004 2003 (lOO ((lOU
At 1 October as pcr nOle 10) 135940
Reuluatlons or inesrmerm in the penod InOle I 1
t W Serlember
Other gran IS Total and
henefactors (000 COOO
3515 -=37(J
81 2149
4465 7i ~
XXh(1
51627 112951
~65(1
6()
Lnjcrsity 200 20()3
f ono C 000
35040
lniYcrsiry Collegl Cork iarional Llliycrsit~ of Ireland Cork
iOTES TO THE ACCOl1TS - continued
1(J Reconciliation of movcment of reservcs Revenue Revaluation Total reserves reserves
COOO pound1000 ooo
Consolidattd
1 I October 211(0shy 6]90
D(bcll on comlllumg l)perations revaluation
I ( Septemher 20(14
middott I Octoher 2003 13940 126241
Deficll or eommumg operations revaluation
3( September 2004 1RR~]
W Contingencies
The U11lversil from tIme ll time is party to yariow legal proceedings The Offieers of the University havc been mlormed hy then legal advisors that it is not possibie at this time to make a rellable estimme of the finanCIal effects (if an~l of tiles cases
t 3( September 2004 a cO1ll1gent lIabIlity existed in respect of potential Value Added Tax in the amoum of C2 rmbon together with substantial potential imeresl and penalties This potentIa] habilItv was setllc~d in January 006 at a lesser amount and the effect on the Income and Expenditure -ecount is no material
21 Capital commitments Consolidatcd Univcrsity
2004 2003 2004 2003 (000 (000 COOO (000
Comracted for but nO promiddotided 69143
Authorised but not omracted out 18304 i 49]Q
tninrsity College Cork ationa lniversity of Ireland Cork
OTES TO THE AccorTS - (ontillucmiddotd
Reconciliation of consolidated operating deficit to net cash outflow from operating activities
Dilcit on conlJnuing operalJons afier depreciation of assets at valuatlOn Dcpr(clat10n D~fcfT(d apital grants released W income Proiit on dIsposal of tangible fixed as~ets D~rcase m stocks Increase m debtors
Drcflse m creditors
on cash changes lmerest receivable Imerest em Iiabiliy 10 Investors under FRS Increase m invcstment aluation
et cash outflow from opernt1l1g aClivilJes
23 Returns on inwstments and servicing of finance
Other lterest received Interes paid on habihty to investors under FRSS
ct cash inGow from returns on lllvestments and senlcing of finance
24 Capital expenditure and financial illYestment
iurh3se of tangible fixed assets Sak of tangible fixed assets (see note 10) Deferred capnal grants receIved
Net cash outflow from capital expendllure and finanClallllestmcm
2()l4
CIIOO
12(46) 1C) ~ 21
( 11253 ) (64 0 )
(]3006) f~(24)
15 (3011 11)62
11
( 14 361
2004 (000
301 ( 1(1621
7611
2004 C()(l()
S57 70(1
SC)4T
ISoRO
lniversit~ College Cork arional tniversity of Ireland Cork
OTES TO THE ACCOCTS - continued
15 Financing 200-1 (000
Dht due within ant year Drclse 111 shon term hononn~
Dent due lyand one year Increase in long tenl1 borw1I1g
1et -ash inflow frorr financing
26 nalsis of changes in net debt At CashOows Other At I October Non cash 30 September
2003 changes 2004 POOH (000 POOO COOO
C~sh 111 hand and at hank 5 3 9Z l)vcrdrafts
539( (21)5021
Deht due within I year (-US6) 1C)[9 (~37)
Debt due after J vear 62R) (19) (7241 Llabilll to invctors under FRS (125) (24231 i
125 163f()4iTCltal
27 Related parties
Transactions Jh suhsidlanes of the UlllversllY have been eillninated on consdidauon and 11(1 disclosure or these transactIOn has therefore been gIven The Lnlerslty had the following transactIOns with related panics on 1 DeCember 1995 Irish Universitl Student Trust entered into a twent five year lease or AnlS 113 Mac Lemn from Lmverslty College Cork at an annual rental dE44A4J pel annum The trustees oflnsh UnirSH Studem Trust are the PrerdenL Secreta and Bursar and Fllance Officer elf ljmvcrsll Cork
l ninrsit College Cork ationaJ lininrsit~ of Ireland Cork
OTES TO THE ACC01T5 - COli tinned
8 Pcnsions
3 ~ PenSIon for substantiaEy all employees are funded through a defined henefit pension schemelt
The lniwrsl oper3tes a defined henefit penSlOll scheme wllh assets held 111 a separately admmlstered fund The total pension cost w the UniversHy ltas f14J)-4 Q 4J (2003 f12(J]-~13L The Illost recen uctuanul
aluation as undenaken as at 1 Octoher 2004 hy consuting actuanes uS1l1g the attained age methodlt The
princIpal assumptIon used in the actuarial valuatlOn was that the long-term annual rale of return on 1I1vestment would exceedtbe mcrease 111 pensionable earnIngs by 2) The 1ens1On and Trust Funds are not included 1I1
the Balance Sheet hecause they arc funds w1111 a separate COHSlltu1l0n from the general assets and ltabilJtie~ of the t11lerSlllaquo
t the date of tbe last actuaria I valuation the market aluc of the scheme s assets was sufTiclCl1t to cover 9lt
of the accrued liabilitleslt based on currcnt eammgs and also allowlllg for expected future mcreascs m eammgslt
The ul1lversny also operates a defmed contributIon penslOn scheme that covers cenain empl(1yees of the
ul11ersirvlt The assets of the scheme are invested by independent trustees for the benefit of these emplovees
ContributIOns to tim pension scheme for the year amounted to C02(il15 (2003 fJ A4F788I
b Financial Reporting STandard 1- Retirement Bellefirs disclosures
The alual1on of the Superannuation Plan benefits for the purposes of FRS 10 disclosures was based on the
results of the actuanal valuation ~aITlcd out as at 0 1102004 suItably adjusted to ~Onr()m1 to the requirements
of FRS 1- The impact of the penSlOn obligations of benchmarkmg awards due but not vet paid has been
mcluded The financlal assumptions used w calulate the retIrement cbltgatJons under FRS I were as follows
2004 2003
Valuation method Projected Projected Luit Luit
Dicou11l rate ) JlOdeg) )lt50
In118tio11 rale 250deg(1 250middot
Satan 1I1lTeases LO 450deg()
PenSlOll Supplemel1latlon 350l~middott 350o (J
t nhersity Coll(ge Cork gtational Lniversity of Ireland Cork
gtOTpound5 TO THE ACCOlgtTS continued
b Financial ReporrillK Standard 1- Rctircmcnr Bcncfirs discloswc (coltinued)
Th market value of the assets 111 the penSIOn schenk the expected rates of return and the hllgallOns as at 300920(11 togethe WIth the pnor vear arc ShC11 belo
2004 2003 cooo coon
Equities ~ ~5deg iJ 11Q708 800 1~346
Bonds -f ~()(I( 22456 150[0 lfd29
PropertY 65degu ImiddotUP 00( 14330
)Clsh 21 O()~() 2]0
TOW market alue of assets 1GL933 166623
Actual Value of Labilny
PenSlun Deficll
Related deferred tax Iiabiit~
et PellSlOn Llabi hty
Analysis of the amount that would have heen charg(d HI operating profit under FRS 17 is as foil () s
2004 2003 COOO (000
Curren Selce Cost 1710 1
Past SeTyice Cost
Tow Operatmg Charge
Analysis of the amount that would lUlVe been credited to other finance income under FRS]7 is as
follows
2004 2003 (000 COOIl
retum 011 s-heme asct~ 1U104
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
Lninrsit~ College Cork ational Llliversity oflrcIand Cork
STA TElET OF ACCO(TIG POLICIES
The ~l=niflca1l accounting poiJies adopted b~ the UI1lVerSI are as f(lbws
Basi~ of preparation The fil1Jncwi statements have been prepared in accordance Wilh accounting standards generally accepted in Ireland md the SWltmenl of Recommended Praclice-Accountmg for Further and Highcr Education lnstltUlions ccountmg swnci1rds generally accepted in lreland in preparing financ131 statements a true and fair vie (Ire thOse publihed h the lnSmlc of Chartered ccoumants in Ireland and Issued hy the Ac~counl1ng Standards Board
ccounting convention The aCoullts hlve been preplred under the hIstorical cost C(11vcntwn modIfied h the reyalu1tion of certam land and hUlldmgs
Basis of consolidation The consolidated financial statements l11clude the li111verSl and llS suhsldlary undertakings and other undertakings 1ll
hi11 the Umverslt has a financial InteresL as indICated III nOll 11 The results of subsidianes acquired or dIsposed of dunng the penod are included in the consolidated Income and expendllure account from the date of acquisition (lr up te th~ dale of dIsposaL lntra-group sales and profits are climinatltd fully on consolidatlon
in accordance with FRS2 the actiities of the Students Umons have not heen consolJdated because the University docs not control those aCllvIlle The financial statements of Cork l111ersiry Foundatlon Limited Unicrsity Cork Ptnsion Fund and Trust Fund arc also excluded as they are not controlled by the Ljmcrsl
Rccognition of income Rc~urrent grants trom the Fhgher Education Authority an recognised 111 the period in which they are receivable
NL)n-rCcurrent grants from the Higher Educallon iuthority or other bodies receied in respect of the acqmsllion or -l]1struellon or fixed assets are treated a deferred capital grants and amonJsed III lllle with depreciation oer the life of thtmiddot asets
Income from research grants contracts and other se1ices rendered is Illcluded to the extent of the completion of the contract llr S(1ICe conecmed TillS is generally equivalent to the sum of the relevant expcndlture incurred during the year and any related contrihutions towards ocrheld costs Allmcome from sllOrt-tcrm deposas IS crcdlted to the income ll1J expendnurc account 111 the penod m wlllch 1l 1 eamed
ln~omc from endowments and donations IS l11cJuded to the extent of the relevant expendIture incurred dunng the yeaL together wah any related cnntributions toward overhead costs
Foreign currency translation TransactIOns denominated m foreIgn currencies are recorded at the rate of exchange ruling at the dates of the transaction Monetary assets and ilabilities denominated III foreIgn currencies arc transl3ted mtll euro eJlher at vear end rltes OL where there are related forward exchange contracts at contract rates The resultmg difference Ire dealt WIth in the determmalOIl of income and expenditure for the financial year
Tangible fixed assets
(a) Land and buildings The l)niverslty buildmgs arc valued at deprecIated replacement cost Land and buildl1g~ arc stated III the balall~c Sh-Cl at aluallon 011 the basis of depreciated replacement cost as they are specialised buildings and therefore it I~ not appropnate to value them 01 the basis of open market value The last aluarioll was carrid out on 3(1 September 1OQ-l The tniverlty has fixed the value of the Ind and huildlf]g~ a at 3( September 1994 as tIllS was the first veal of the implementatloll of generally lccepted accountng pnnciples in resped of Fixed ssets m presenting the fmanelal srawmcJ1Is of the lJi11versl1y Land and buildings acqulled SHlCC the vaiuation an included in the balance sheet at c(s Freehold land IS not depreciated FreelKtld huddings are deprecIated oel their expc~ted useful cconomlC hit Il the University of (1 ycars
llliersjt~ Colle Cork ationaI CniYersity of ireland Cork
STATEIE1 OF ACCOCTING POLICIES - coutinued
Tangihle fixed assets continued
(a I Land aud buildings - continued
here land and buildmgs are lcquired lth the ud of specIfic grants they are capItalIsed and deprecIated a aboe
The related grams are credIted Q a deferred capltai grant account and are released ((1 the IIlcomc and expenditure
account over the expected useful eCDnomlC llfc of the related asset on a basis consIstent with the depreciation POlICY
Fmancc costs hKh are directly attributable w the COl1structlOn of land and buildings are not capitalised as part of th cost ([ those Jssets
nlew for impJirment of a fixed asset is carned out If ecnts or changs in clrcumstanccs indIcate that the amount of the fixed asset may l1l)t be recocrable
Buildmgs under construction are accounted for at cost bascd on the Yllue of architect~ certificates and other direct ClqS mcurred to the financill velr end They are not dcpreewed until th(~ arc brought mto use
(ill Equipment 111 eqUlpment IS apnalised at cost Clpllaiised equIpment i depreCIated over Its useful economIc iife as fllows
Computer equipment 3 year~
Equipment 5 ye-ars
Where equipment is acquired with the aid of specific grams it is capitalised and depreCIated m accordance Ith the abo( policy with the related grant being credited to a defened capnal grant account and released to income and expendlfurc account over the expected useful economic life of the related equipment
Financial assets hxed asset Illvestments that arc listed on a reeogJ1lsed stock exchange are canied at market value The II1vestment 11 the
L lllverslfY T echnok)gv Centre PartnershIp has been revalued dunng the year to thc value u[ the tJniversl s share In the
plftnershlp Those that are not listed are canied at hIstorical cost less any proVIsion for impainnent in theIr value
Current a~sel in(~st1lents are included in the baiance sheet at the lower of their original cost and net reahsable value
Stocks Sto-b are Slated at the lower of their cost and net realisable alue -here necessary proVIsion is made for obsolete
skw mOing and defective Stock Expenditure incurred by tbe University on booki and consumable stocks finaned
(rc1m recunent grams are charged to the Income and Expenditure JccounL
Taxlltion -S an exempt charity thc University is not lIable for Corporation Tax or Income Tax on an ofns chantable actIVItIeS It b regIstered [or -alue Added Tax but smce the supply of edu~atlOn is an exempt acmity on whIch no output tax IS -harged Il IS unable to recover input tax on the maJonty of its purchases
Tradmg JclJvllles undertaken b the Cniversity an admllllstered through IlS subSIdiary compames whle11 as commerciai
(lrganisatlOns are hable to Corporation Tax
Liquid resources LIqUId reSlurcs include sums on short-term deposits with recugnlsed banks and buIlding societies and gocmmcm
SCUflllt=
Provisions ProvlslOns are recognised when the U1Ivcrslty has a present legal or eonslruclje oblIgatIOn as a result of a past event I 1 probable that j transfer cf economic benefit i11 be required to settic the oblIgation and il relIable CSlImate can be made
of the amount of the obligatIOn
tninrsity College Cork alional Cniersity of Ireland Cork
STATEIEiT OF ACCOl-TIiG POLICIES - continued
Pensiolls The CnlrsJ[ operates a diined benefit pensIon scheme Ililh assets held in a separately admll1islered fund The b~SIC rCl1rCmCDl pensions of Cniversit) staff are funded by comnbutiom 1(1 the ul1Iverst PensIOn Fund (the penion fund I
a a pre-determmed rate of penSIOnable pay Increases m baSIC retirement penSIOns hlch are pltlld through the pm101
fund arc repaid to the pensIOn fund by the umversity The penSlOl1 fund is valued acuarialh once III every three ears TiK las such alUatlOIl was carried OUI as at i October 2004
Pension benefits for ccnain other employees are met b pavlllems (1 a defined contribution pension scheme
CClllribullOns (ire charged to the income and expenditure account III the veal in willch th( fall duc
lllinrsity College Cork ational Cniversity of Ireland Cork
COSOLIDATED ICOME AD EXPEDlTCRE ACCOFT Year Ended 30 September 2004
1oles
Consolidattd 21104
pound000
Consolidated 2003
(OOll
Income
Srat rants
SlUJ~nl f~
Rs~arch grants and contract
AmortIsation of deferred capital grants
Olhr lpcrating income
Inters ll1ome
Ishy
4
~A~6
63-+4 4-01 II 1~Ibull ~ ___1
1831 7
7(0
~--3-q
11303
12AXO Q430
Total income 21 ~3(l~ IQ~ri~
Expenditure
Staff OSb
Olbr operallng expenses
DepreciatIon
Total expenditure
Deficit for the year after depreciatioll of assets before taxation
rJXJtion
Drfieit for the year after depreciation of assets and after taxation
Th~ d~jicit for the year aroe soleh from contInuing opcratiom
The fInancial ztatemems lln pages 8 w 3( were approvd the- G(YCn1111g Body on 1(l October 2006 and wer SIgned (l1
Its hehalf by
Signcd Professor Wrixon Dermot OMahoney Prcsldent j-llt)norar Treasurer
1
lnhersity College Cork ational blhersity of Ireland Cork
COSOLIDATED BAlACE SHEET 30 September 2004
otes
Consolidated
2004 CO(lO
2003 COOO
lnilrsit~
20()4 COOO
2lHl3 coou
Fhed assets
1 anglh Ie asset
Flnanci3 LSScl~ 10
11
Current assets
Swcks 12 314 351 291 3~)
Dchwr~ 1 L 32deg(11 1wCJRx 41206 J9~ J2
Ca~h al bank
3330- 5 ~37 41497 469]
Creditors AmOUlllS fallmg due wnhm nne
year (10UAX6) (76923)
et current liabilities
Total assets less current liabilities 301307 25C)6c)7 25756 114900
Creditors Amoums falling due after nne
vear l=
0 fC et assets 1(1)gt ll~flt 4 CHi4 A
123552Deferred capital grants
Represented by
Revenue rescrvcs C) 1l2396 (9750)
ReitJumion reserve If)
Total
The financwl mncmenb on pages ~ 10 3(1 were appr0cd bv the GOcming B0dv on ] () OCC1ber 20C6 and wcre OIl
I1s hehall
SIgned Professor Wrixon Dermot OMahoney Prcsidcnt Honorarv Treasurer
lninrsity College Cork ational lniycrsity of Ireland Cork
COSOLUHTED CASH FLOW STATEMENT OF HISTORIC COST SLRPLlSES AD DEFICITS Year Ended 30 September 004
h I~ 11) possihle to determine the difference hetween hlstoncal ost depreCHllion and the actual charge due w the facl thal
th 111ston~al cost infomlation IS not aailahl
STATDIET OF TOTAL RECOGISED GAIS AN)) LOSSES Year Ended 30 September ()()4
2004 fOOO
2003 fOOO
Defill all COlll1l1UIIlg operatIons after depre~lalon of assets at aluali(lfL
(t IsseIS and laX (2646)
Unrcdlsed surplus on revaluation of financial assets
Ttllal rcognised gail15 relatmg 10 the year
Reconciliation
126lCJO
gams (losses) for the year
Closmg resenes
lniHrsiry Colegt Cork alional Cniersity of I relund Cork
COSOLIDATED CASH FLOW STATE]lElT Year Ended 30 September 20(14
et cash outflow from operating activities
Returns on investments and seIleing of finance
expenditure and finanial mcstmem
e( cash outflow befon financing
Fmll1cmg
Decrease in cash in the period
Reconciliation of net cash flow to movement in net fundsdebt
Decrclse in cash m the period
Ctsh (luttlO from mcrease in debt and lease financmg
Change 111 nel debt resultlIlg from cashflows
on ash changes
(lemel1l 111 net debt in period
Cl debt at i October 2003
et ckbt CIt 30 September 2004
otes
24
21104 E()()O
(761)
( 18680
( 390U I
26
26
(341021
(0361)41---shy
lninrsity College Cork ational [niersit~ of Ireland Cork
ons TO THE ACCOCTS
Stale grants 20()4 2003 COOO COOO
)t1 grams allclcatcd for recurrent pllrrO~CS
Thc al-gt( gLlOt mome wa~ neclved from the Higher Educltlon Aulloril anc Ihe DcpanmeIH of J-kJllh amp Chldrell
2 Academic fees 200-1 2003 COOO CO()()
-cadcmic fee inccme
Total fces pale hy o[ on behalf of mdiyidual studems
- lOla ofC5073-lO 2003euro3084g(l23) lIlcluded in aCiJdemic icc income was pJld dIrectly by the lllgher Educalon uthorilY
Research grants and contracts
European Umon InduSlf
Other
-1 Other incollle
Other rental l11C(lme
Funded pClst lIlCOll1t
SlUdent rsidenccs 1OC0111C
Proflt on compulsory iJcqUlsition oj lands Profit on sale of lands Leisure facilitie InCOme
Demal IlOSPlliJl I1come
Other income
= Interest income
Inttres mcome
2()0-1 2U03 fOOO coon
3 i 078 023
3S33
2()0-1 2003 pound000 ClWO
19 ~()~ 3U5
391()
l(1Ci
(I(i
2213 X6(1
2305 2(
laquo242 UOCi
1 Sl i~
200~ 200J COOO COOU
6
tlliwrsi Colle[c Cork arional Lnhersity of Ireland Cork
OTES TO THE ACCOFTS - continued
Staff costs
rh~ 3Crage veekh number of perSClJ1S (mcludlllg senior jwsl-h(ldcrs) emploved by tht
cpresscd as full-urne equlalcm was
reahing and rsearch
TechmcJI
entral adnllnistraIon and serices
Other
Salaries and wages
Social welfare costs
Other pension costs
Other operating expenses
Consumables
BeaL light aler and power
Research consumables
R(palfS and general mailllcnallce
Audn and professional
Rent and rates
Other expenses
Other opcratmg expenses in~1 ude
Auditors remuneraIon
EXlcmal audit
Other seryices fro111 external audit
during the
UH4 umber
201)4
(000
119538
666
14LA7C)
2(1)4
(000
15A7 4 2603
1(L933 376
138 j
L531
2004 [000
cq
IF
2003 umber
1246
63
2003 fO()()
]05379
200] C(lIiO
2003 COOO
jll
1U-
14312
lnhersin Colle~( Cork arional lniversity of Ireland Cork
OTES TO THE ACCOtTS - continued
S Taxation
taXJllOll charge arises as the UlllvCrSll and il~ principal subndJar companies are exempt chantle and are not
hable for corporation tax or mcome tax on any of its charitabk actlvitles
I) Deficit on cOlltinuin~ operations for the year 20(14 2U(J3 [(IOU COOO
The deii-l on continuing operalJons for the vcar is made up a~ flllows
UniC~rslfS deficit for the vear
Surplus generated bv the subsidIary undenakmgs and transferred to the Univcrslt
Total
1
I uinlsity (olltj( (olk ~atiollall illi(rsil~ 01 Irdalltl Cork
NOI ES TO TilE A((OINTS
10 Tal~ihl( fix(d ass(ls
(( )NS()f J lgtAnl)
(0lt1 or valnation
At t ()cohcr200)
Additiotls
At
Is 311 21104
i)epncialioll
At 1 Oct(hcr 2(J03
(I Cd
tl) 2(11)1
Nrl hook aim
t I letobe WOJ
It Ill 211()4
fOlllillll((1
Land alld
hllildill~S
CHon
I 7ti6
57(iY
((l3)
379]
(() Ll
273I1U3
27350X
COIIIJlIII(middotr
(qlliplJI(lIt
(000
2(d~59
i23
1 JJ
2J 425
71 II
1434
4X39
EqllipllltlIl
COOO
iltU172 6+31
30514
9Y)()
20]X8
17331
Assets ill ((HI 1St or
COllstnldioll
ClUW
151)9
54512
109
Total
CIIOO
4IltX() 7Ui7
l) 1Yh2
IlI121
II
312(118
3(1)30
LamJ alld huiltiillll alld cquipnlCllt IIKludc assets valucd in Iljl)4 (In a dCpleCI1tet 1Cj111ccmcllt cosl hasis fL1 1lIOJ()) respectivelY land alld huildillils ami lssel in course (II cOllstructi(lil includes UX]X I IJ(IO
include C 51ltJ07()O() (lOll CJ1)I(lI()()()) in relatioll tn land and tile ACC(1l111tillg Standards Board Iliese land ami
ftilcsc buildillls IS that tlte
( ) nlccr oUTgt nUI(( I (~(() C127721J IO()) and CI 1 IlIeH 10 (2()(3
(11 Ii ecl(1ld Iaml willch is Iwl
The COlllllwlcial ellce of the trallsactiolls Slln
issued lire salv alld ulllllwtc
tll 1he lam] ami
~
--
- -
~
~
~
-
-=
shy
- = shy~
7
=-= -
Z
7 ~
~ - lt shy shy shy
shy
Z shy
Z
r X r
-
r
-= oJ c
= 0 ~
= -~-=
ti= ~
shy = =
~
~
t= Z
~
51
- Z ~ lt
0
r-~
(J n r--ltIoc r-
x
v ~ r l j r1 r- if
rr
T M rlt
r = j
= -j =
C
shy -
~ v ~ ~
shy shy
- - -
-0
lt - lt )
Z lt
1 0 x T x)C
F n ~
0middot1 r1~~
r -
r~
lt
0 lr ~ r1 n(1
l r~
ltj~
tniVCfsiry College Cork ttional Lniversiry of Ireland Cork
OTES TO THE ACC()l]TS - continued
11 Financial assets Consolid ated
2UO-l 2003 ((WO f(lOO
t nhersity 2004 2003
COOO COOO
InnSlInents at the veal end were held as follovs
( lthcr
3450
The investment in the Lmversllv Technology Centre Partnership ha~ been re31ued during the year tc the 3lue 0shythe Llmycrsny share inlhe partnership as at 31 December 2003
The tnhersity held an interest in the following subsidiary undertakings
Subsidhlry undertakings
Incorporated
Propem ianagement (LeC) Limited
Campm ccommOdali(111 C) Limned
Art Gallery (liCC) Limiled
Brcnard Limited
1ardykc LeIsure (U ce) Limited
At Ie Press Limited
(iivlC Holding~ Limlled
11 Stocks
Consumables
FIlllshed goods for resale
Prindplil activity
Property development
Accommodation rcntal
11 gallery
Leasing or lands
PublIshing
Dornnnt
Interest 0 0
J00
100
100
100
1(lOo
Consolidated
2004 2003 COOO (0110
65
Registered officeplace of business
City Chamhers 4
Cork
limversl1Y Cork Aestern Road Cork University Cork Vestern Road Cork University College Cork Western Road Cork liniversiry College Cork Western Road Cork Crawford Business Park Crosses Green Cork St Kildas Western Road Cork
Clliversity
O()4 2001 [(lOU COOO
36
fhere io no malcnal difference between the balance sheet amount of slOcks and Its replacement cost
13 Debtors
Trad- debtors
Res-arh grants and colllraCls receiabk
nwunts due from suhsldmrv undertakings
Slale gr~ml reciabk
(lther tJJtWIl and s(lcial Illsurancc
Other deotiJrs
C ollsolida ted Llliycrsif
2(104 2003 2004 200 [000 COOO COOO f(I00
S34 -Li06 67U
601 753 6015 j J0(
1~S26 766 12S~6
11 -- 3 f~ 51 t
lJ
~ q()l --l12(j( ~ ~
CnhlIsit~ College Cork ationallniersity of Ireland Cork
OTES TO THE CCOCTS - continued
1-1 Creditors Amounts fallillg due within Dill year Consolidated lnjyersit~
20114 2003 2004 2003 COOO COOO [000 C(lOU
Trad rcdjtor~ 7501 Cl295 (702
Research grants and contracts III advance I(i5 5 1150i 1U5~ -cademic fee~ receied in advance 11(1()4 QOM 110CJ4 ()01gt4
State grant receied m advance 118 I 1535 513~ Bank loans 8 overdrafts (note 16) 3O 39 416 1606 333~
Amounts owed to subsidiary undenakmgs -113 4SS~
Other taxatIOn and SOCIal security -+394 0 41 42()9 SAl (i
Deftrred incJll1e 19(3 9131
Other creditors 8 accruals lOOARA R9~~
15 Creditors Amounts falling due after one year Consolidated linivcrsi t)
200-1 2003 2004 20U3 ((lOO COOO (000 COOO
Bank loans (note 16) ~ 1 - -_-
16 Borrowings Consolidated University
2004 2003 2004 2003 (000 (000 fOOO (IOU
Bank loans and overdrafts
Bank loan and oerdrafts are repayable as follows
III one year or less 3073Q 41 6 8606 33~
O~(Between one and twe veal 221 1693 1ampshy
Between two ard 11 H years 872 (i 104 604Q 3+05
In fiC y~ar or more
TCHal 6360 1 3400( I ~~ ~
ature and Securiry of Borrowings stated tn Note 10 F1Xed Assets hae been accounted for in accordance with FRS 5 The ab[)vc liabilIl16 represent the uhimate lwbilitie to repurchase the assct~ concerned The borrowJI1gs arc secured bv title until the repurchae takes place
lniYlrsit Colleu ( Cork -ational lniversity of Ireland Cork
-OTES TO THE ACCOCTS - continued
1~ Deferred capital grants HEA
COOO
Other grants and
benefactors (000
Total
COOO
C olsolida ted
At 1 October 2003
BuJldmg~
EJuipment
Tota
414 45677 8-31
Cash received Buildmg
Equipment
Tolal
b53-l 153~5 -l U59
Released to income and expenditure
Buildmgs
Equipment
TClaj
1449 )
~
9~3
1-1 ---
) iii _) shy
1L~~~
At 3() Septemher 20()t
B u ild 1111
Equipmem
T pta I
66639
7(91
600 i 9
-09A
I 6-] ~
14UltC)
l ni(~rsit C olieo ( Cork arional Cnhersity of Ireland Cork
OTES TO THE ACCOl1TS - continued
1i Deferred capital grants continued HEA
(non
t niersity
At 1 October 21Hl3
B uil dlllb
Eqmpmem
Total
Cash received
Buddmggt EqUIpment
TOla
Released to income and expenditur( 1 1 7Buildmg )
Equipmcl1l
Total )S3
At 30 September 200
Buildll1g~ 61324
EqUlpmcm Tora (~=5
IS Revaluation reser( Consolidated
2004 2003 (lOO ((lOU
At 1 October as pcr nOle 10) 135940
Reuluatlons or inesrmerm in the penod InOle I 1
t W Serlember
Other gran IS Total and
henefactors (000 COOO
3515 -=37(J
81 2149
4465 7i ~
XXh(1
51627 112951
~65(1
6()
Lnjcrsity 200 20()3
f ono C 000
35040
lniYcrsiry Collegl Cork iarional Llliycrsit~ of Ireland Cork
iOTES TO THE ACCOl1TS - continued
1(J Reconciliation of movcment of reservcs Revenue Revaluation Total reserves reserves
COOO pound1000 ooo
Consolidattd
1 I October 211(0shy 6]90
D(bcll on comlllumg l)perations revaluation
I ( Septemher 20(14
middott I Octoher 2003 13940 126241
Deficll or eommumg operations revaluation
3( September 2004 1RR~]
W Contingencies
The U11lversil from tIme ll time is party to yariow legal proceedings The Offieers of the University havc been mlormed hy then legal advisors that it is not possibie at this time to make a rellable estimme of the finanCIal effects (if an~l of tiles cases
t 3( September 2004 a cO1ll1gent lIabIlity existed in respect of potential Value Added Tax in the amoum of C2 rmbon together with substantial potential imeresl and penalties This potentIa] habilItv was setllc~d in January 006 at a lesser amount and the effect on the Income and Expenditure -ecount is no material
21 Capital commitments Consolidatcd Univcrsity
2004 2003 2004 2003 (000 (000 COOO (000
Comracted for but nO promiddotided 69143
Authorised but not omracted out 18304 i 49]Q
tninrsity College Cork ationa lniversity of Ireland Cork
OTES TO THE AccorTS - (ontillucmiddotd
Reconciliation of consolidated operating deficit to net cash outflow from operating activities
Dilcit on conlJnuing operalJons afier depreciation of assets at valuatlOn Dcpr(clat10n D~fcfT(d apital grants released W income Proiit on dIsposal of tangible fixed as~ets D~rcase m stocks Increase m debtors
Drcflse m creditors
on cash changes lmerest receivable Imerest em Iiabiliy 10 Investors under FRS Increase m invcstment aluation
et cash outflow from opernt1l1g aClivilJes
23 Returns on inwstments and servicing of finance
Other lterest received Interes paid on habihty to investors under FRSS
ct cash inGow from returns on lllvestments and senlcing of finance
24 Capital expenditure and financial illYestment
iurh3se of tangible fixed assets Sak of tangible fixed assets (see note 10) Deferred capnal grants receIved
Net cash outflow from capital expendllure and finanClallllestmcm
2()l4
CIIOO
12(46) 1C) ~ 21
( 11253 ) (64 0 )
(]3006) f~(24)
15 (3011 11)62
11
( 14 361
2004 (000
301 ( 1(1621
7611
2004 C()(l()
S57 70(1
SC)4T
ISoRO
lniversit~ College Cork arional tniversity of Ireland Cork
OTES TO THE ACCOCTS - continued
15 Financing 200-1 (000
Dht due within ant year Drclse 111 shon term hononn~
Dent due lyand one year Increase in long tenl1 borw1I1g
1et -ash inflow frorr financing
26 nalsis of changes in net debt At CashOows Other At I October Non cash 30 September
2003 changes 2004 POOH (000 POOO COOO
C~sh 111 hand and at hank 5 3 9Z l)vcrdrafts
539( (21)5021
Deht due within I year (-US6) 1C)[9 (~37)
Debt due after J vear 62R) (19) (7241 Llabilll to invctors under FRS (125) (24231 i
125 163f()4iTCltal
27 Related parties
Transactions Jh suhsidlanes of the UlllversllY have been eillninated on consdidauon and 11(1 disclosure or these transactIOn has therefore been gIven The Lnlerslty had the following transactIOns with related panics on 1 DeCember 1995 Irish Universitl Student Trust entered into a twent five year lease or AnlS 113 Mac Lemn from Lmverslty College Cork at an annual rental dE44A4J pel annum The trustees oflnsh UnirSH Studem Trust are the PrerdenL Secreta and Bursar and Fllance Officer elf ljmvcrsll Cork
l ninrsit College Cork ationaJ lininrsit~ of Ireland Cork
OTES TO THE ACC01T5 - COli tinned
8 Pcnsions
3 ~ PenSIon for substantiaEy all employees are funded through a defined henefit pension schemelt
The lniwrsl oper3tes a defined henefit penSlOll scheme wllh assets held 111 a separately admmlstered fund The total pension cost w the UniversHy ltas f14J)-4 Q 4J (2003 f12(J]-~13L The Illost recen uctuanul
aluation as undenaken as at 1 Octoher 2004 hy consuting actuanes uS1l1g the attained age methodlt The
princIpal assumptIon used in the actuarial valuatlOn was that the long-term annual rale of return on 1I1vestment would exceedtbe mcrease 111 pensionable earnIngs by 2) The 1ens1On and Trust Funds are not included 1I1
the Balance Sheet hecause they arc funds w1111 a separate COHSlltu1l0n from the general assets and ltabilJtie~ of the t11lerSlllaquo
t the date of tbe last actuaria I valuation the market aluc of the scheme s assets was sufTiclCl1t to cover 9lt
of the accrued liabilitleslt based on currcnt eammgs and also allowlllg for expected future mcreascs m eammgslt
The ul1lversny also operates a defmed contributIon penslOn scheme that covers cenain empl(1yees of the
ul11ersirvlt The assets of the scheme are invested by independent trustees for the benefit of these emplovees
ContributIOns to tim pension scheme for the year amounted to C02(il15 (2003 fJ A4F788I
b Financial Reporting STandard 1- Retirement Bellefirs disclosures
The alual1on of the Superannuation Plan benefits for the purposes of FRS 10 disclosures was based on the
results of the actuanal valuation ~aITlcd out as at 0 1102004 suItably adjusted to ~Onr()m1 to the requirements
of FRS 1- The impact of the penSlOn obligations of benchmarkmg awards due but not vet paid has been
mcluded The financlal assumptions used w calulate the retIrement cbltgatJons under FRS I were as follows
2004 2003
Valuation method Projected Projected Luit Luit
Dicou11l rate ) JlOdeg) )lt50
In118tio11 rale 250deg(1 250middot
Satan 1I1lTeases LO 450deg()
PenSlOll Supplemel1latlon 350l~middott 350o (J
t nhersity Coll(ge Cork gtational Lniversity of Ireland Cork
gtOTpound5 TO THE ACCOlgtTS continued
b Financial ReporrillK Standard 1- Rctircmcnr Bcncfirs discloswc (coltinued)
Th market value of the assets 111 the penSIOn schenk the expected rates of return and the hllgallOns as at 300920(11 togethe WIth the pnor vear arc ShC11 belo
2004 2003 cooo coon
Equities ~ ~5deg iJ 11Q708 800 1~346
Bonds -f ~()(I( 22456 150[0 lfd29
PropertY 65degu ImiddotUP 00( 14330
)Clsh 21 O()~() 2]0
TOW market alue of assets 1GL933 166623
Actual Value of Labilny
PenSlun Deficll
Related deferred tax Iiabiit~
et PellSlOn Llabi hty
Analysis of the amount that would have heen charg(d HI operating profit under FRS 17 is as foil () s
2004 2003 COOO (000
Curren Selce Cost 1710 1
Past SeTyice Cost
Tow Operatmg Charge
Analysis of the amount that would lUlVe been credited to other finance income under FRS]7 is as
follows
2004 2003 (000 COOIl
retum 011 s-heme asct~ 1U104
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
llliersjt~ Colle Cork ationaI CniYersity of ireland Cork
STATEIE1 OF ACCOCTING POLICIES - coutinued
Tangihle fixed assets continued
(a I Land aud buildings - continued
here land and buildmgs are lcquired lth the ud of specIfic grants they are capItalIsed and deprecIated a aboe
The related grams are credIted Q a deferred capltai grant account and are released ((1 the IIlcomc and expenditure
account over the expected useful eCDnomlC llfc of the related asset on a basis consIstent with the depreciation POlICY
Fmancc costs hKh are directly attributable w the COl1structlOn of land and buildings are not capitalised as part of th cost ([ those Jssets
nlew for impJirment of a fixed asset is carned out If ecnts or changs in clrcumstanccs indIcate that the amount of the fixed asset may l1l)t be recocrable
Buildmgs under construction are accounted for at cost bascd on the Yllue of architect~ certificates and other direct ClqS mcurred to the financill velr end They are not dcpreewed until th(~ arc brought mto use
(ill Equipment 111 eqUlpment IS apnalised at cost Clpllaiised equIpment i depreCIated over Its useful economIc iife as fllows
Computer equipment 3 year~
Equipment 5 ye-ars
Where equipment is acquired with the aid of specific grams it is capitalised and depreCIated m accordance Ith the abo( policy with the related grant being credited to a defened capnal grant account and released to income and expendlfurc account over the expected useful economic life of the related equipment
Financial assets hxed asset Illvestments that arc listed on a reeogJ1lsed stock exchange are canied at market value The II1vestment 11 the
L lllverslfY T echnok)gv Centre PartnershIp has been revalued dunng the year to thc value u[ the tJniversl s share In the
plftnershlp Those that are not listed are canied at hIstorical cost less any proVIsion for impainnent in theIr value
Current a~sel in(~st1lents are included in the baiance sheet at the lower of their original cost and net reahsable value
Stocks Sto-b are Slated at the lower of their cost and net realisable alue -here necessary proVIsion is made for obsolete
skw mOing and defective Stock Expenditure incurred by tbe University on booki and consumable stocks finaned
(rc1m recunent grams are charged to the Income and Expenditure JccounL
Taxlltion -S an exempt charity thc University is not lIable for Corporation Tax or Income Tax on an ofns chantable actIVItIeS It b regIstered [or -alue Added Tax but smce the supply of edu~atlOn is an exempt acmity on whIch no output tax IS -harged Il IS unable to recover input tax on the maJonty of its purchases
Tradmg JclJvllles undertaken b the Cniversity an admllllstered through IlS subSIdiary compames whle11 as commerciai
(lrganisatlOns are hable to Corporation Tax
Liquid resources LIqUId reSlurcs include sums on short-term deposits with recugnlsed banks and buIlding societies and gocmmcm
SCUflllt=
Provisions ProvlslOns are recognised when the U1Ivcrslty has a present legal or eonslruclje oblIgatIOn as a result of a past event I 1 probable that j transfer cf economic benefit i11 be required to settic the oblIgation and il relIable CSlImate can be made
of the amount of the obligatIOn
tninrsity College Cork alional Cniersity of Ireland Cork
STATEIEiT OF ACCOl-TIiG POLICIES - continued
Pensiolls The CnlrsJ[ operates a diined benefit pensIon scheme Ililh assets held in a separately admll1islered fund The b~SIC rCl1rCmCDl pensions of Cniversit) staff are funded by comnbutiom 1(1 the ul1Iverst PensIOn Fund (the penion fund I
a a pre-determmed rate of penSIOnable pay Increases m baSIC retirement penSIOns hlch are pltlld through the pm101
fund arc repaid to the pensIOn fund by the umversity The penSlOl1 fund is valued acuarialh once III every three ears TiK las such alUatlOIl was carried OUI as at i October 2004
Pension benefits for ccnain other employees are met b pavlllems (1 a defined contribution pension scheme
CClllribullOns (ire charged to the income and expenditure account III the veal in willch th( fall duc
lllinrsity College Cork ational Cniversity of Ireland Cork
COSOLIDATED ICOME AD EXPEDlTCRE ACCOFT Year Ended 30 September 2004
1oles
Consolidattd 21104
pound000
Consolidated 2003
(OOll
Income
Srat rants
SlUJ~nl f~
Rs~arch grants and contract
AmortIsation of deferred capital grants
Olhr lpcrating income
Inters ll1ome
Ishy
4
~A~6
63-+4 4-01 II 1~Ibull ~ ___1
1831 7
7(0
~--3-q
11303
12AXO Q430
Total income 21 ~3(l~ IQ~ri~
Expenditure
Staff OSb
Olbr operallng expenses
DepreciatIon
Total expenditure
Deficit for the year after depreciatioll of assets before taxation
rJXJtion
Drfieit for the year after depreciation of assets and after taxation
Th~ d~jicit for the year aroe soleh from contInuing opcratiom
The fInancial ztatemems lln pages 8 w 3( were approvd the- G(YCn1111g Body on 1(l October 2006 and wer SIgned (l1
Its hehalf by
Signcd Professor Wrixon Dermot OMahoney Prcsldent j-llt)norar Treasurer
1
lnhersity College Cork ational blhersity of Ireland Cork
COSOLIDATED BAlACE SHEET 30 September 2004
otes
Consolidated
2004 CO(lO
2003 COOO
lnilrsit~
20()4 COOO
2lHl3 coou
Fhed assets
1 anglh Ie asset
Flnanci3 LSScl~ 10
11
Current assets
Swcks 12 314 351 291 3~)
Dchwr~ 1 L 32deg(11 1wCJRx 41206 J9~ J2
Ca~h al bank
3330- 5 ~37 41497 469]
Creditors AmOUlllS fallmg due wnhm nne
year (10UAX6) (76923)
et current liabilities
Total assets less current liabilities 301307 25C)6c)7 25756 114900
Creditors Amoums falling due after nne
vear l=
0 fC et assets 1(1)gt ll~flt 4 CHi4 A
123552Deferred capital grants
Represented by
Revenue rescrvcs C) 1l2396 (9750)
ReitJumion reserve If)
Total
The financwl mncmenb on pages ~ 10 3(1 were appr0cd bv the GOcming B0dv on ] () OCC1ber 20C6 and wcre OIl
I1s hehall
SIgned Professor Wrixon Dermot OMahoney Prcsidcnt Honorarv Treasurer
lninrsity College Cork ational lniycrsity of Ireland Cork
COSOLUHTED CASH FLOW STATEMENT OF HISTORIC COST SLRPLlSES AD DEFICITS Year Ended 30 September 004
h I~ 11) possihle to determine the difference hetween hlstoncal ost depreCHllion and the actual charge due w the facl thal
th 111ston~al cost infomlation IS not aailahl
STATDIET OF TOTAL RECOGISED GAIS AN)) LOSSES Year Ended 30 September ()()4
2004 fOOO
2003 fOOO
Defill all COlll1l1UIIlg operatIons after depre~lalon of assets at aluali(lfL
(t IsseIS and laX (2646)
Unrcdlsed surplus on revaluation of financial assets
Ttllal rcognised gail15 relatmg 10 the year
Reconciliation
126lCJO
gams (losses) for the year
Closmg resenes
lniHrsiry Colegt Cork alional Cniersity of I relund Cork
COSOLIDATED CASH FLOW STATE]lElT Year Ended 30 September 20(14
et cash outflow from operating activities
Returns on investments and seIleing of finance
expenditure and finanial mcstmem
e( cash outflow befon financing
Fmll1cmg
Decrease in cash in the period
Reconciliation of net cash flow to movement in net fundsdebt
Decrclse in cash m the period
Ctsh (luttlO from mcrease in debt and lease financmg
Change 111 nel debt resultlIlg from cashflows
on ash changes
(lemel1l 111 net debt in period
Cl debt at i October 2003
et ckbt CIt 30 September 2004
otes
24
21104 E()()O
(761)
( 18680
( 390U I
26
26
(341021
(0361)41---shy
lninrsity College Cork ational [niersit~ of Ireland Cork
ons TO THE ACCOCTS
Stale grants 20()4 2003 COOO COOO
)t1 grams allclcatcd for recurrent pllrrO~CS
Thc al-gt( gLlOt mome wa~ neclved from the Higher Educltlon Aulloril anc Ihe DcpanmeIH of J-kJllh amp Chldrell
2 Academic fees 200-1 2003 COOO CO()()
-cadcmic fee inccme
Total fces pale hy o[ on behalf of mdiyidual studems
- lOla ofC5073-lO 2003euro3084g(l23) lIlcluded in aCiJdemic icc income was pJld dIrectly by the lllgher Educalon uthorilY
Research grants and contracts
European Umon InduSlf
Other
-1 Other incollle
Other rental l11C(lme
Funded pClst lIlCOll1t
SlUdent rsidenccs 1OC0111C
Proflt on compulsory iJcqUlsition oj lands Profit on sale of lands Leisure facilitie InCOme
Demal IlOSPlliJl I1come
Other income
= Interest income
Inttres mcome
2()0-1 2U03 fOOO coon
3 i 078 023
3S33
2()0-1 2003 pound000 ClWO
19 ~()~ 3U5
391()
l(1Ci
(I(i
2213 X6(1
2305 2(
laquo242 UOCi
1 Sl i~
200~ 200J COOO COOU
6
tlliwrsi Colle[c Cork arional Lnhersity of Ireland Cork
OTES TO THE ACCOFTS - continued
Staff costs
rh~ 3Crage veekh number of perSClJ1S (mcludlllg senior jwsl-h(ldcrs) emploved by tht
cpresscd as full-urne equlalcm was
reahing and rsearch
TechmcJI
entral adnllnistraIon and serices
Other
Salaries and wages
Social welfare costs
Other pension costs
Other operating expenses
Consumables
BeaL light aler and power
Research consumables
R(palfS and general mailllcnallce
Audn and professional
Rent and rates
Other expenses
Other opcratmg expenses in~1 ude
Auditors remuneraIon
EXlcmal audit
Other seryices fro111 external audit
during the
UH4 umber
201)4
(000
119538
666
14LA7C)
2(1)4
(000
15A7 4 2603
1(L933 376
138 j
L531
2004 [000
cq
IF
2003 umber
1246
63
2003 fO()()
]05379
200] C(lIiO
2003 COOO
jll
1U-
14312
lnhersin Colle~( Cork arional lniversity of Ireland Cork
OTES TO THE ACCOtTS - continued
S Taxation
taXJllOll charge arises as the UlllvCrSll and il~ principal subndJar companies are exempt chantle and are not
hable for corporation tax or mcome tax on any of its charitabk actlvitles
I) Deficit on cOlltinuin~ operations for the year 20(14 2U(J3 [(IOU COOO
The deii-l on continuing operalJons for the vcar is made up a~ flllows
UniC~rslfS deficit for the vear
Surplus generated bv the subsidIary undenakmgs and transferred to the Univcrslt
Total
1
I uinlsity (olltj( (olk ~atiollall illi(rsil~ 01 Irdalltl Cork
NOI ES TO TilE A((OINTS
10 Tal~ihl( fix(d ass(ls
(( )NS()f J lgtAnl)
(0lt1 or valnation
At t ()cohcr200)
Additiotls
At
Is 311 21104
i)epncialioll
At 1 Oct(hcr 2(J03
(I Cd
tl) 2(11)1
Nrl hook aim
t I letobe WOJ
It Ill 211()4
fOlllillll((1
Land alld
hllildill~S
CHon
I 7ti6
57(iY
((l3)
379]
(() Ll
273I1U3
27350X
COIIIJlIII(middotr
(qlliplJI(lIt
(000
2(d~59
i23
1 JJ
2J 425
71 II
1434
4X39
EqllipllltlIl
COOO
iltU172 6+31
30514
9Y)()
20]X8
17331
Assets ill ((HI 1St or
COllstnldioll
ClUW
151)9
54512
109
Total
CIIOO
4IltX() 7Ui7
l) 1Yh2
IlI121
II
312(118
3(1)30
LamJ alld huiltiillll alld cquipnlCllt IIKludc assets valucd in Iljl)4 (In a dCpleCI1tet 1Cj111ccmcllt cosl hasis fL1 1lIOJ()) respectivelY land alld huildillils ami lssel in course (II cOllstructi(lil includes UX]X I IJ(IO
include C 51ltJ07()O() (lOll CJ1)I(lI()()()) in relatioll tn land and tile ACC(1l111tillg Standards Board Iliese land ami
ftilcsc buildillls IS that tlte
( ) nlccr oUTgt nUI(( I (~(() C127721J IO()) and CI 1 IlIeH 10 (2()(3
(11 Ii ecl(1ld Iaml willch is Iwl
The COlllllwlcial ellce of the trallsactiolls Slln
issued lire salv alld ulllllwtc
tll 1he lam] ami
~
--
- -
~
~
~
-
-=
shy
- = shy~
7
=-= -
Z
7 ~
~ - lt shy shy shy
shy
Z shy
Z
r X r
-
r
-= oJ c
= 0 ~
= -~-=
ti= ~
shy = =
~
~
t= Z
~
51
- Z ~ lt
0
r-~
(J n r--ltIoc r-
x
v ~ r l j r1 r- if
rr
T M rlt
r = j
= -j =
C
shy -
~ v ~ ~
shy shy
- - -
-0
lt - lt )
Z lt
1 0 x T x)C
F n ~
0middot1 r1~~
r -
r~
lt
0 lr ~ r1 n(1
l r~
ltj~
tniVCfsiry College Cork ttional Lniversiry of Ireland Cork
OTES TO THE ACC()l]TS - continued
11 Financial assets Consolid ated
2UO-l 2003 ((WO f(lOO
t nhersity 2004 2003
COOO COOO
InnSlInents at the veal end were held as follovs
( lthcr
3450
The investment in the Lmversllv Technology Centre Partnership ha~ been re31ued during the year tc the 3lue 0shythe Llmycrsny share inlhe partnership as at 31 December 2003
The tnhersity held an interest in the following subsidiary undertakings
Subsidhlry undertakings
Incorporated
Propem ianagement (LeC) Limited
Campm ccommOdali(111 C) Limned
Art Gallery (liCC) Limiled
Brcnard Limited
1ardykc LeIsure (U ce) Limited
At Ie Press Limited
(iivlC Holding~ Limlled
11 Stocks
Consumables
FIlllshed goods for resale
Prindplil activity
Property development
Accommodation rcntal
11 gallery
Leasing or lands
PublIshing
Dornnnt
Interest 0 0
J00
100
100
100
1(lOo
Consolidated
2004 2003 COOO (0110
65
Registered officeplace of business
City Chamhers 4
Cork
limversl1Y Cork Aestern Road Cork University Cork Vestern Road Cork University College Cork Western Road Cork liniversiry College Cork Western Road Cork Crawford Business Park Crosses Green Cork St Kildas Western Road Cork
Clliversity
O()4 2001 [(lOU COOO
36
fhere io no malcnal difference between the balance sheet amount of slOcks and Its replacement cost
13 Debtors
Trad- debtors
Res-arh grants and colllraCls receiabk
nwunts due from suhsldmrv undertakings
Slale gr~ml reciabk
(lther tJJtWIl and s(lcial Illsurancc
Other deotiJrs
C ollsolida ted Llliycrsif
2(104 2003 2004 200 [000 COOO COOO f(I00
S34 -Li06 67U
601 753 6015 j J0(
1~S26 766 12S~6
11 -- 3 f~ 51 t
lJ
~ q()l --l12(j( ~ ~
CnhlIsit~ College Cork ationallniersity of Ireland Cork
OTES TO THE CCOCTS - continued
1-1 Creditors Amounts fallillg due within Dill year Consolidated lnjyersit~
20114 2003 2004 2003 COOO COOO [000 C(lOU
Trad rcdjtor~ 7501 Cl295 (702
Research grants and contracts III advance I(i5 5 1150i 1U5~ -cademic fee~ receied in advance 11(1()4 QOM 110CJ4 ()01gt4
State grant receied m advance 118 I 1535 513~ Bank loans 8 overdrafts (note 16) 3O 39 416 1606 333~
Amounts owed to subsidiary undenakmgs -113 4SS~
Other taxatIOn and SOCIal security -+394 0 41 42()9 SAl (i
Deftrred incJll1e 19(3 9131
Other creditors 8 accruals lOOARA R9~~
15 Creditors Amounts falling due after one year Consolidated linivcrsi t)
200-1 2003 2004 20U3 ((lOO COOO (000 COOO
Bank loans (note 16) ~ 1 - -_-
16 Borrowings Consolidated University
2004 2003 2004 2003 (000 (000 fOOO (IOU
Bank loans and overdrafts
Bank loan and oerdrafts are repayable as follows
III one year or less 3073Q 41 6 8606 33~
O~(Between one and twe veal 221 1693 1ampshy
Between two ard 11 H years 872 (i 104 604Q 3+05
In fiC y~ar or more
TCHal 6360 1 3400( I ~~ ~
ature and Securiry of Borrowings stated tn Note 10 F1Xed Assets hae been accounted for in accordance with FRS 5 The ab[)vc liabilIl16 represent the uhimate lwbilitie to repurchase the assct~ concerned The borrowJI1gs arc secured bv title until the repurchae takes place
lniYlrsit Colleu ( Cork -ational lniversity of Ireland Cork
-OTES TO THE ACCOCTS - continued
1~ Deferred capital grants HEA
COOO
Other grants and
benefactors (000
Total
COOO
C olsolida ted
At 1 October 2003
BuJldmg~
EJuipment
Tota
414 45677 8-31
Cash received Buildmg
Equipment
Tolal
b53-l 153~5 -l U59
Released to income and expenditure
Buildmgs
Equipment
TClaj
1449 )
~
9~3
1-1 ---
) iii _) shy
1L~~~
At 3() Septemher 20()t
B u ild 1111
Equipmem
T pta I
66639
7(91
600 i 9
-09A
I 6-] ~
14UltC)
l ni(~rsit C olieo ( Cork arional Cnhersity of Ireland Cork
OTES TO THE ACCOl1TS - continued
1i Deferred capital grants continued HEA
(non
t niersity
At 1 October 21Hl3
B uil dlllb
Eqmpmem
Total
Cash received
Buddmggt EqUIpment
TOla
Released to income and expenditur( 1 1 7Buildmg )
Equipmcl1l
Total )S3
At 30 September 200
Buildll1g~ 61324
EqUlpmcm Tora (~=5
IS Revaluation reser( Consolidated
2004 2003 (lOO ((lOU
At 1 October as pcr nOle 10) 135940
Reuluatlons or inesrmerm in the penod InOle I 1
t W Serlember
Other gran IS Total and
henefactors (000 COOO
3515 -=37(J
81 2149
4465 7i ~
XXh(1
51627 112951
~65(1
6()
Lnjcrsity 200 20()3
f ono C 000
35040
lniYcrsiry Collegl Cork iarional Llliycrsit~ of Ireland Cork
iOTES TO THE ACCOl1TS - continued
1(J Reconciliation of movcment of reservcs Revenue Revaluation Total reserves reserves
COOO pound1000 ooo
Consolidattd
1 I October 211(0shy 6]90
D(bcll on comlllumg l)perations revaluation
I ( Septemher 20(14
middott I Octoher 2003 13940 126241
Deficll or eommumg operations revaluation
3( September 2004 1RR~]
W Contingencies
The U11lversil from tIme ll time is party to yariow legal proceedings The Offieers of the University havc been mlormed hy then legal advisors that it is not possibie at this time to make a rellable estimme of the finanCIal effects (if an~l of tiles cases
t 3( September 2004 a cO1ll1gent lIabIlity existed in respect of potential Value Added Tax in the amoum of C2 rmbon together with substantial potential imeresl and penalties This potentIa] habilItv was setllc~d in January 006 at a lesser amount and the effect on the Income and Expenditure -ecount is no material
21 Capital commitments Consolidatcd Univcrsity
2004 2003 2004 2003 (000 (000 COOO (000
Comracted for but nO promiddotided 69143
Authorised but not omracted out 18304 i 49]Q
tninrsity College Cork ationa lniversity of Ireland Cork
OTES TO THE AccorTS - (ontillucmiddotd
Reconciliation of consolidated operating deficit to net cash outflow from operating activities
Dilcit on conlJnuing operalJons afier depreciation of assets at valuatlOn Dcpr(clat10n D~fcfT(d apital grants released W income Proiit on dIsposal of tangible fixed as~ets D~rcase m stocks Increase m debtors
Drcflse m creditors
on cash changes lmerest receivable Imerest em Iiabiliy 10 Investors under FRS Increase m invcstment aluation
et cash outflow from opernt1l1g aClivilJes
23 Returns on inwstments and servicing of finance
Other lterest received Interes paid on habihty to investors under FRSS
ct cash inGow from returns on lllvestments and senlcing of finance
24 Capital expenditure and financial illYestment
iurh3se of tangible fixed assets Sak of tangible fixed assets (see note 10) Deferred capnal grants receIved
Net cash outflow from capital expendllure and finanClallllestmcm
2()l4
CIIOO
12(46) 1C) ~ 21
( 11253 ) (64 0 )
(]3006) f~(24)
15 (3011 11)62
11
( 14 361
2004 (000
301 ( 1(1621
7611
2004 C()(l()
S57 70(1
SC)4T
ISoRO
lniversit~ College Cork arional tniversity of Ireland Cork
OTES TO THE ACCOCTS - continued
15 Financing 200-1 (000
Dht due within ant year Drclse 111 shon term hononn~
Dent due lyand one year Increase in long tenl1 borw1I1g
1et -ash inflow frorr financing
26 nalsis of changes in net debt At CashOows Other At I October Non cash 30 September
2003 changes 2004 POOH (000 POOO COOO
C~sh 111 hand and at hank 5 3 9Z l)vcrdrafts
539( (21)5021
Deht due within I year (-US6) 1C)[9 (~37)
Debt due after J vear 62R) (19) (7241 Llabilll to invctors under FRS (125) (24231 i
125 163f()4iTCltal
27 Related parties
Transactions Jh suhsidlanes of the UlllversllY have been eillninated on consdidauon and 11(1 disclosure or these transactIOn has therefore been gIven The Lnlerslty had the following transactIOns with related panics on 1 DeCember 1995 Irish Universitl Student Trust entered into a twent five year lease or AnlS 113 Mac Lemn from Lmverslty College Cork at an annual rental dE44A4J pel annum The trustees oflnsh UnirSH Studem Trust are the PrerdenL Secreta and Bursar and Fllance Officer elf ljmvcrsll Cork
l ninrsit College Cork ationaJ lininrsit~ of Ireland Cork
OTES TO THE ACC01T5 - COli tinned
8 Pcnsions
3 ~ PenSIon for substantiaEy all employees are funded through a defined henefit pension schemelt
The lniwrsl oper3tes a defined henefit penSlOll scheme wllh assets held 111 a separately admmlstered fund The total pension cost w the UniversHy ltas f14J)-4 Q 4J (2003 f12(J]-~13L The Illost recen uctuanul
aluation as undenaken as at 1 Octoher 2004 hy consuting actuanes uS1l1g the attained age methodlt The
princIpal assumptIon used in the actuarial valuatlOn was that the long-term annual rale of return on 1I1vestment would exceedtbe mcrease 111 pensionable earnIngs by 2) The 1ens1On and Trust Funds are not included 1I1
the Balance Sheet hecause they arc funds w1111 a separate COHSlltu1l0n from the general assets and ltabilJtie~ of the t11lerSlllaquo
t the date of tbe last actuaria I valuation the market aluc of the scheme s assets was sufTiclCl1t to cover 9lt
of the accrued liabilitleslt based on currcnt eammgs and also allowlllg for expected future mcreascs m eammgslt
The ul1lversny also operates a defmed contributIon penslOn scheme that covers cenain empl(1yees of the
ul11ersirvlt The assets of the scheme are invested by independent trustees for the benefit of these emplovees
ContributIOns to tim pension scheme for the year amounted to C02(il15 (2003 fJ A4F788I
b Financial Reporting STandard 1- Retirement Bellefirs disclosures
The alual1on of the Superannuation Plan benefits for the purposes of FRS 10 disclosures was based on the
results of the actuanal valuation ~aITlcd out as at 0 1102004 suItably adjusted to ~Onr()m1 to the requirements
of FRS 1- The impact of the penSlOn obligations of benchmarkmg awards due but not vet paid has been
mcluded The financlal assumptions used w calulate the retIrement cbltgatJons under FRS I were as follows
2004 2003
Valuation method Projected Projected Luit Luit
Dicou11l rate ) JlOdeg) )lt50
In118tio11 rale 250deg(1 250middot
Satan 1I1lTeases LO 450deg()
PenSlOll Supplemel1latlon 350l~middott 350o (J
t nhersity Coll(ge Cork gtational Lniversity of Ireland Cork
gtOTpound5 TO THE ACCOlgtTS continued
b Financial ReporrillK Standard 1- Rctircmcnr Bcncfirs discloswc (coltinued)
Th market value of the assets 111 the penSIOn schenk the expected rates of return and the hllgallOns as at 300920(11 togethe WIth the pnor vear arc ShC11 belo
2004 2003 cooo coon
Equities ~ ~5deg iJ 11Q708 800 1~346
Bonds -f ~()(I( 22456 150[0 lfd29
PropertY 65degu ImiddotUP 00( 14330
)Clsh 21 O()~() 2]0
TOW market alue of assets 1GL933 166623
Actual Value of Labilny
PenSlun Deficll
Related deferred tax Iiabiit~
et PellSlOn Llabi hty
Analysis of the amount that would have heen charg(d HI operating profit under FRS 17 is as foil () s
2004 2003 COOO (000
Curren Selce Cost 1710 1
Past SeTyice Cost
Tow Operatmg Charge
Analysis of the amount that would lUlVe been credited to other finance income under FRS]7 is as
follows
2004 2003 (000 COOIl
retum 011 s-heme asct~ 1U104
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
tninrsity College Cork alional Cniersity of Ireland Cork
STATEIEiT OF ACCOl-TIiG POLICIES - continued
Pensiolls The CnlrsJ[ operates a diined benefit pensIon scheme Ililh assets held in a separately admll1islered fund The b~SIC rCl1rCmCDl pensions of Cniversit) staff are funded by comnbutiom 1(1 the ul1Iverst PensIOn Fund (the penion fund I
a a pre-determmed rate of penSIOnable pay Increases m baSIC retirement penSIOns hlch are pltlld through the pm101
fund arc repaid to the pensIOn fund by the umversity The penSlOl1 fund is valued acuarialh once III every three ears TiK las such alUatlOIl was carried OUI as at i October 2004
Pension benefits for ccnain other employees are met b pavlllems (1 a defined contribution pension scheme
CClllribullOns (ire charged to the income and expenditure account III the veal in willch th( fall duc
lllinrsity College Cork ational Cniversity of Ireland Cork
COSOLIDATED ICOME AD EXPEDlTCRE ACCOFT Year Ended 30 September 2004
1oles
Consolidattd 21104
pound000
Consolidated 2003
(OOll
Income
Srat rants
SlUJ~nl f~
Rs~arch grants and contract
AmortIsation of deferred capital grants
Olhr lpcrating income
Inters ll1ome
Ishy
4
~A~6
63-+4 4-01 II 1~Ibull ~ ___1
1831 7
7(0
~--3-q
11303
12AXO Q430
Total income 21 ~3(l~ IQ~ri~
Expenditure
Staff OSb
Olbr operallng expenses
DepreciatIon
Total expenditure
Deficit for the year after depreciatioll of assets before taxation
rJXJtion
Drfieit for the year after depreciation of assets and after taxation
Th~ d~jicit for the year aroe soleh from contInuing opcratiom
The fInancial ztatemems lln pages 8 w 3( were approvd the- G(YCn1111g Body on 1(l October 2006 and wer SIgned (l1
Its hehalf by
Signcd Professor Wrixon Dermot OMahoney Prcsldent j-llt)norar Treasurer
1
lnhersity College Cork ational blhersity of Ireland Cork
COSOLIDATED BAlACE SHEET 30 September 2004
otes
Consolidated
2004 CO(lO
2003 COOO
lnilrsit~
20()4 COOO
2lHl3 coou
Fhed assets
1 anglh Ie asset
Flnanci3 LSScl~ 10
11
Current assets
Swcks 12 314 351 291 3~)
Dchwr~ 1 L 32deg(11 1wCJRx 41206 J9~ J2
Ca~h al bank
3330- 5 ~37 41497 469]
Creditors AmOUlllS fallmg due wnhm nne
year (10UAX6) (76923)
et current liabilities
Total assets less current liabilities 301307 25C)6c)7 25756 114900
Creditors Amoums falling due after nne
vear l=
0 fC et assets 1(1)gt ll~flt 4 CHi4 A
123552Deferred capital grants
Represented by
Revenue rescrvcs C) 1l2396 (9750)
ReitJumion reserve If)
Total
The financwl mncmenb on pages ~ 10 3(1 were appr0cd bv the GOcming B0dv on ] () OCC1ber 20C6 and wcre OIl
I1s hehall
SIgned Professor Wrixon Dermot OMahoney Prcsidcnt Honorarv Treasurer
lninrsity College Cork ational lniycrsity of Ireland Cork
COSOLUHTED CASH FLOW STATEMENT OF HISTORIC COST SLRPLlSES AD DEFICITS Year Ended 30 September 004
h I~ 11) possihle to determine the difference hetween hlstoncal ost depreCHllion and the actual charge due w the facl thal
th 111ston~al cost infomlation IS not aailahl
STATDIET OF TOTAL RECOGISED GAIS AN)) LOSSES Year Ended 30 September ()()4
2004 fOOO
2003 fOOO
Defill all COlll1l1UIIlg operatIons after depre~lalon of assets at aluali(lfL
(t IsseIS and laX (2646)
Unrcdlsed surplus on revaluation of financial assets
Ttllal rcognised gail15 relatmg 10 the year
Reconciliation
126lCJO
gams (losses) for the year
Closmg resenes
lniHrsiry Colegt Cork alional Cniersity of I relund Cork
COSOLIDATED CASH FLOW STATE]lElT Year Ended 30 September 20(14
et cash outflow from operating activities
Returns on investments and seIleing of finance
expenditure and finanial mcstmem
e( cash outflow befon financing
Fmll1cmg
Decrease in cash in the period
Reconciliation of net cash flow to movement in net fundsdebt
Decrclse in cash m the period
Ctsh (luttlO from mcrease in debt and lease financmg
Change 111 nel debt resultlIlg from cashflows
on ash changes
(lemel1l 111 net debt in period
Cl debt at i October 2003
et ckbt CIt 30 September 2004
otes
24
21104 E()()O
(761)
( 18680
( 390U I
26
26
(341021
(0361)41---shy
lninrsity College Cork ational [niersit~ of Ireland Cork
ons TO THE ACCOCTS
Stale grants 20()4 2003 COOO COOO
)t1 grams allclcatcd for recurrent pllrrO~CS
Thc al-gt( gLlOt mome wa~ neclved from the Higher Educltlon Aulloril anc Ihe DcpanmeIH of J-kJllh amp Chldrell
2 Academic fees 200-1 2003 COOO CO()()
-cadcmic fee inccme
Total fces pale hy o[ on behalf of mdiyidual studems
- lOla ofC5073-lO 2003euro3084g(l23) lIlcluded in aCiJdemic icc income was pJld dIrectly by the lllgher Educalon uthorilY
Research grants and contracts
European Umon InduSlf
Other
-1 Other incollle
Other rental l11C(lme
Funded pClst lIlCOll1t
SlUdent rsidenccs 1OC0111C
Proflt on compulsory iJcqUlsition oj lands Profit on sale of lands Leisure facilitie InCOme
Demal IlOSPlliJl I1come
Other income
= Interest income
Inttres mcome
2()0-1 2U03 fOOO coon
3 i 078 023
3S33
2()0-1 2003 pound000 ClWO
19 ~()~ 3U5
391()
l(1Ci
(I(i
2213 X6(1
2305 2(
laquo242 UOCi
1 Sl i~
200~ 200J COOO COOU
6
tlliwrsi Colle[c Cork arional Lnhersity of Ireland Cork
OTES TO THE ACCOFTS - continued
Staff costs
rh~ 3Crage veekh number of perSClJ1S (mcludlllg senior jwsl-h(ldcrs) emploved by tht
cpresscd as full-urne equlalcm was
reahing and rsearch
TechmcJI
entral adnllnistraIon and serices
Other
Salaries and wages
Social welfare costs
Other pension costs
Other operating expenses
Consumables
BeaL light aler and power
Research consumables
R(palfS and general mailllcnallce
Audn and professional
Rent and rates
Other expenses
Other opcratmg expenses in~1 ude
Auditors remuneraIon
EXlcmal audit
Other seryices fro111 external audit
during the
UH4 umber
201)4
(000
119538
666
14LA7C)
2(1)4
(000
15A7 4 2603
1(L933 376
138 j
L531
2004 [000
cq
IF
2003 umber
1246
63
2003 fO()()
]05379
200] C(lIiO
2003 COOO
jll
1U-
14312
lnhersin Colle~( Cork arional lniversity of Ireland Cork
OTES TO THE ACCOtTS - continued
S Taxation
taXJllOll charge arises as the UlllvCrSll and il~ principal subndJar companies are exempt chantle and are not
hable for corporation tax or mcome tax on any of its charitabk actlvitles
I) Deficit on cOlltinuin~ operations for the year 20(14 2U(J3 [(IOU COOO
The deii-l on continuing operalJons for the vcar is made up a~ flllows
UniC~rslfS deficit for the vear
Surplus generated bv the subsidIary undenakmgs and transferred to the Univcrslt
Total
1
I uinlsity (olltj( (olk ~atiollall illi(rsil~ 01 Irdalltl Cork
NOI ES TO TilE A((OINTS
10 Tal~ihl( fix(d ass(ls
(( )NS()f J lgtAnl)
(0lt1 or valnation
At t ()cohcr200)
Additiotls
At
Is 311 21104
i)epncialioll
At 1 Oct(hcr 2(J03
(I Cd
tl) 2(11)1
Nrl hook aim
t I letobe WOJ
It Ill 211()4
fOlllillll((1
Land alld
hllildill~S
CHon
I 7ti6
57(iY
((l3)
379]
(() Ll
273I1U3
27350X
COIIIJlIII(middotr
(qlliplJI(lIt
(000
2(d~59
i23
1 JJ
2J 425
71 II
1434
4X39
EqllipllltlIl
COOO
iltU172 6+31
30514
9Y)()
20]X8
17331
Assets ill ((HI 1St or
COllstnldioll
ClUW
151)9
54512
109
Total
CIIOO
4IltX() 7Ui7
l) 1Yh2
IlI121
II
312(118
3(1)30
LamJ alld huiltiillll alld cquipnlCllt IIKludc assets valucd in Iljl)4 (In a dCpleCI1tet 1Cj111ccmcllt cosl hasis fL1 1lIOJ()) respectivelY land alld huildillils ami lssel in course (II cOllstructi(lil includes UX]X I IJ(IO
include C 51ltJ07()O() (lOll CJ1)I(lI()()()) in relatioll tn land and tile ACC(1l111tillg Standards Board Iliese land ami
ftilcsc buildillls IS that tlte
( ) nlccr oUTgt nUI(( I (~(() C127721J IO()) and CI 1 IlIeH 10 (2()(3
(11 Ii ecl(1ld Iaml willch is Iwl
The COlllllwlcial ellce of the trallsactiolls Slln
issued lire salv alld ulllllwtc
tll 1he lam] ami
~
--
- -
~
~
~
-
-=
shy
- = shy~
7
=-= -
Z
7 ~
~ - lt shy shy shy
shy
Z shy
Z
r X r
-
r
-= oJ c
= 0 ~
= -~-=
ti= ~
shy = =
~
~
t= Z
~
51
- Z ~ lt
0
r-~
(J n r--ltIoc r-
x
v ~ r l j r1 r- if
rr
T M rlt
r = j
= -j =
C
shy -
~ v ~ ~
shy shy
- - -
-0
lt - lt )
Z lt
1 0 x T x)C
F n ~
0middot1 r1~~
r -
r~
lt
0 lr ~ r1 n(1
l r~
ltj~
tniVCfsiry College Cork ttional Lniversiry of Ireland Cork
OTES TO THE ACC()l]TS - continued
11 Financial assets Consolid ated
2UO-l 2003 ((WO f(lOO
t nhersity 2004 2003
COOO COOO
InnSlInents at the veal end were held as follovs
( lthcr
3450
The investment in the Lmversllv Technology Centre Partnership ha~ been re31ued during the year tc the 3lue 0shythe Llmycrsny share inlhe partnership as at 31 December 2003
The tnhersity held an interest in the following subsidiary undertakings
Subsidhlry undertakings
Incorporated
Propem ianagement (LeC) Limited
Campm ccommOdali(111 C) Limned
Art Gallery (liCC) Limiled
Brcnard Limited
1ardykc LeIsure (U ce) Limited
At Ie Press Limited
(iivlC Holding~ Limlled
11 Stocks
Consumables
FIlllshed goods for resale
Prindplil activity
Property development
Accommodation rcntal
11 gallery
Leasing or lands
PublIshing
Dornnnt
Interest 0 0
J00
100
100
100
1(lOo
Consolidated
2004 2003 COOO (0110
65
Registered officeplace of business
City Chamhers 4
Cork
limversl1Y Cork Aestern Road Cork University Cork Vestern Road Cork University College Cork Western Road Cork liniversiry College Cork Western Road Cork Crawford Business Park Crosses Green Cork St Kildas Western Road Cork
Clliversity
O()4 2001 [(lOU COOO
36
fhere io no malcnal difference between the balance sheet amount of slOcks and Its replacement cost
13 Debtors
Trad- debtors
Res-arh grants and colllraCls receiabk
nwunts due from suhsldmrv undertakings
Slale gr~ml reciabk
(lther tJJtWIl and s(lcial Illsurancc
Other deotiJrs
C ollsolida ted Llliycrsif
2(104 2003 2004 200 [000 COOO COOO f(I00
S34 -Li06 67U
601 753 6015 j J0(
1~S26 766 12S~6
11 -- 3 f~ 51 t
lJ
~ q()l --l12(j( ~ ~
CnhlIsit~ College Cork ationallniersity of Ireland Cork
OTES TO THE CCOCTS - continued
1-1 Creditors Amounts fallillg due within Dill year Consolidated lnjyersit~
20114 2003 2004 2003 COOO COOO [000 C(lOU
Trad rcdjtor~ 7501 Cl295 (702
Research grants and contracts III advance I(i5 5 1150i 1U5~ -cademic fee~ receied in advance 11(1()4 QOM 110CJ4 ()01gt4
State grant receied m advance 118 I 1535 513~ Bank loans 8 overdrafts (note 16) 3O 39 416 1606 333~
Amounts owed to subsidiary undenakmgs -113 4SS~
Other taxatIOn and SOCIal security -+394 0 41 42()9 SAl (i
Deftrred incJll1e 19(3 9131
Other creditors 8 accruals lOOARA R9~~
15 Creditors Amounts falling due after one year Consolidated linivcrsi t)
200-1 2003 2004 20U3 ((lOO COOO (000 COOO
Bank loans (note 16) ~ 1 - -_-
16 Borrowings Consolidated University
2004 2003 2004 2003 (000 (000 fOOO (IOU
Bank loans and overdrafts
Bank loan and oerdrafts are repayable as follows
III one year or less 3073Q 41 6 8606 33~
O~(Between one and twe veal 221 1693 1ampshy
Between two ard 11 H years 872 (i 104 604Q 3+05
In fiC y~ar or more
TCHal 6360 1 3400( I ~~ ~
ature and Securiry of Borrowings stated tn Note 10 F1Xed Assets hae been accounted for in accordance with FRS 5 The ab[)vc liabilIl16 represent the uhimate lwbilitie to repurchase the assct~ concerned The borrowJI1gs arc secured bv title until the repurchae takes place
lniYlrsit Colleu ( Cork -ational lniversity of Ireland Cork
-OTES TO THE ACCOCTS - continued
1~ Deferred capital grants HEA
COOO
Other grants and
benefactors (000
Total
COOO
C olsolida ted
At 1 October 2003
BuJldmg~
EJuipment
Tota
414 45677 8-31
Cash received Buildmg
Equipment
Tolal
b53-l 153~5 -l U59
Released to income and expenditure
Buildmgs
Equipment
TClaj
1449 )
~
9~3
1-1 ---
) iii _) shy
1L~~~
At 3() Septemher 20()t
B u ild 1111
Equipmem
T pta I
66639
7(91
600 i 9
-09A
I 6-] ~
14UltC)
l ni(~rsit C olieo ( Cork arional Cnhersity of Ireland Cork
OTES TO THE ACCOl1TS - continued
1i Deferred capital grants continued HEA
(non
t niersity
At 1 October 21Hl3
B uil dlllb
Eqmpmem
Total
Cash received
Buddmggt EqUIpment
TOla
Released to income and expenditur( 1 1 7Buildmg )
Equipmcl1l
Total )S3
At 30 September 200
Buildll1g~ 61324
EqUlpmcm Tora (~=5
IS Revaluation reser( Consolidated
2004 2003 (lOO ((lOU
At 1 October as pcr nOle 10) 135940
Reuluatlons or inesrmerm in the penod InOle I 1
t W Serlember
Other gran IS Total and
henefactors (000 COOO
3515 -=37(J
81 2149
4465 7i ~
XXh(1
51627 112951
~65(1
6()
Lnjcrsity 200 20()3
f ono C 000
35040
lniYcrsiry Collegl Cork iarional Llliycrsit~ of Ireland Cork
iOTES TO THE ACCOl1TS - continued
1(J Reconciliation of movcment of reservcs Revenue Revaluation Total reserves reserves
COOO pound1000 ooo
Consolidattd
1 I October 211(0shy 6]90
D(bcll on comlllumg l)perations revaluation
I ( Septemher 20(14
middott I Octoher 2003 13940 126241
Deficll or eommumg operations revaluation
3( September 2004 1RR~]
W Contingencies
The U11lversil from tIme ll time is party to yariow legal proceedings The Offieers of the University havc been mlormed hy then legal advisors that it is not possibie at this time to make a rellable estimme of the finanCIal effects (if an~l of tiles cases
t 3( September 2004 a cO1ll1gent lIabIlity existed in respect of potential Value Added Tax in the amoum of C2 rmbon together with substantial potential imeresl and penalties This potentIa] habilItv was setllc~d in January 006 at a lesser amount and the effect on the Income and Expenditure -ecount is no material
21 Capital commitments Consolidatcd Univcrsity
2004 2003 2004 2003 (000 (000 COOO (000
Comracted for but nO promiddotided 69143
Authorised but not omracted out 18304 i 49]Q
tninrsity College Cork ationa lniversity of Ireland Cork
OTES TO THE AccorTS - (ontillucmiddotd
Reconciliation of consolidated operating deficit to net cash outflow from operating activities
Dilcit on conlJnuing operalJons afier depreciation of assets at valuatlOn Dcpr(clat10n D~fcfT(d apital grants released W income Proiit on dIsposal of tangible fixed as~ets D~rcase m stocks Increase m debtors
Drcflse m creditors
on cash changes lmerest receivable Imerest em Iiabiliy 10 Investors under FRS Increase m invcstment aluation
et cash outflow from opernt1l1g aClivilJes
23 Returns on inwstments and servicing of finance
Other lterest received Interes paid on habihty to investors under FRSS
ct cash inGow from returns on lllvestments and senlcing of finance
24 Capital expenditure and financial illYestment
iurh3se of tangible fixed assets Sak of tangible fixed assets (see note 10) Deferred capnal grants receIved
Net cash outflow from capital expendllure and finanClallllestmcm
2()l4
CIIOO
12(46) 1C) ~ 21
( 11253 ) (64 0 )
(]3006) f~(24)
15 (3011 11)62
11
( 14 361
2004 (000
301 ( 1(1621
7611
2004 C()(l()
S57 70(1
SC)4T
ISoRO
lniversit~ College Cork arional tniversity of Ireland Cork
OTES TO THE ACCOCTS - continued
15 Financing 200-1 (000
Dht due within ant year Drclse 111 shon term hononn~
Dent due lyand one year Increase in long tenl1 borw1I1g
1et -ash inflow frorr financing
26 nalsis of changes in net debt At CashOows Other At I October Non cash 30 September
2003 changes 2004 POOH (000 POOO COOO
C~sh 111 hand and at hank 5 3 9Z l)vcrdrafts
539( (21)5021
Deht due within I year (-US6) 1C)[9 (~37)
Debt due after J vear 62R) (19) (7241 Llabilll to invctors under FRS (125) (24231 i
125 163f()4iTCltal
27 Related parties
Transactions Jh suhsidlanes of the UlllversllY have been eillninated on consdidauon and 11(1 disclosure or these transactIOn has therefore been gIven The Lnlerslty had the following transactIOns with related panics on 1 DeCember 1995 Irish Universitl Student Trust entered into a twent five year lease or AnlS 113 Mac Lemn from Lmverslty College Cork at an annual rental dE44A4J pel annum The trustees oflnsh UnirSH Studem Trust are the PrerdenL Secreta and Bursar and Fllance Officer elf ljmvcrsll Cork
l ninrsit College Cork ationaJ lininrsit~ of Ireland Cork
OTES TO THE ACC01T5 - COli tinned
8 Pcnsions
3 ~ PenSIon for substantiaEy all employees are funded through a defined henefit pension schemelt
The lniwrsl oper3tes a defined henefit penSlOll scheme wllh assets held 111 a separately admmlstered fund The total pension cost w the UniversHy ltas f14J)-4 Q 4J (2003 f12(J]-~13L The Illost recen uctuanul
aluation as undenaken as at 1 Octoher 2004 hy consuting actuanes uS1l1g the attained age methodlt The
princIpal assumptIon used in the actuarial valuatlOn was that the long-term annual rale of return on 1I1vestment would exceedtbe mcrease 111 pensionable earnIngs by 2) The 1ens1On and Trust Funds are not included 1I1
the Balance Sheet hecause they arc funds w1111 a separate COHSlltu1l0n from the general assets and ltabilJtie~ of the t11lerSlllaquo
t the date of tbe last actuaria I valuation the market aluc of the scheme s assets was sufTiclCl1t to cover 9lt
of the accrued liabilitleslt based on currcnt eammgs and also allowlllg for expected future mcreascs m eammgslt
The ul1lversny also operates a defmed contributIon penslOn scheme that covers cenain empl(1yees of the
ul11ersirvlt The assets of the scheme are invested by independent trustees for the benefit of these emplovees
ContributIOns to tim pension scheme for the year amounted to C02(il15 (2003 fJ A4F788I
b Financial Reporting STandard 1- Retirement Bellefirs disclosures
The alual1on of the Superannuation Plan benefits for the purposes of FRS 10 disclosures was based on the
results of the actuanal valuation ~aITlcd out as at 0 1102004 suItably adjusted to ~Onr()m1 to the requirements
of FRS 1- The impact of the penSlOn obligations of benchmarkmg awards due but not vet paid has been
mcluded The financlal assumptions used w calulate the retIrement cbltgatJons under FRS I were as follows
2004 2003
Valuation method Projected Projected Luit Luit
Dicou11l rate ) JlOdeg) )lt50
In118tio11 rale 250deg(1 250middot
Satan 1I1lTeases LO 450deg()
PenSlOll Supplemel1latlon 350l~middott 350o (J
t nhersity Coll(ge Cork gtational Lniversity of Ireland Cork
gtOTpound5 TO THE ACCOlgtTS continued
b Financial ReporrillK Standard 1- Rctircmcnr Bcncfirs discloswc (coltinued)
Th market value of the assets 111 the penSIOn schenk the expected rates of return and the hllgallOns as at 300920(11 togethe WIth the pnor vear arc ShC11 belo
2004 2003 cooo coon
Equities ~ ~5deg iJ 11Q708 800 1~346
Bonds -f ~()(I( 22456 150[0 lfd29
PropertY 65degu ImiddotUP 00( 14330
)Clsh 21 O()~() 2]0
TOW market alue of assets 1GL933 166623
Actual Value of Labilny
PenSlun Deficll
Related deferred tax Iiabiit~
et PellSlOn Llabi hty
Analysis of the amount that would have heen charg(d HI operating profit under FRS 17 is as foil () s
2004 2003 COOO (000
Curren Selce Cost 1710 1
Past SeTyice Cost
Tow Operatmg Charge
Analysis of the amount that would lUlVe been credited to other finance income under FRS]7 is as
follows
2004 2003 (000 COOIl
retum 011 s-heme asct~ 1U104
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
lllinrsity College Cork ational Cniversity of Ireland Cork
COSOLIDATED ICOME AD EXPEDlTCRE ACCOFT Year Ended 30 September 2004
1oles
Consolidattd 21104
pound000
Consolidated 2003
(OOll
Income
Srat rants
SlUJ~nl f~
Rs~arch grants and contract
AmortIsation of deferred capital grants
Olhr lpcrating income
Inters ll1ome
Ishy
4
~A~6
63-+4 4-01 II 1~Ibull ~ ___1
1831 7
7(0
~--3-q
11303
12AXO Q430
Total income 21 ~3(l~ IQ~ri~
Expenditure
Staff OSb
Olbr operallng expenses
DepreciatIon
Total expenditure
Deficit for the year after depreciatioll of assets before taxation
rJXJtion
Drfieit for the year after depreciation of assets and after taxation
Th~ d~jicit for the year aroe soleh from contInuing opcratiom
The fInancial ztatemems lln pages 8 w 3( were approvd the- G(YCn1111g Body on 1(l October 2006 and wer SIgned (l1
Its hehalf by
Signcd Professor Wrixon Dermot OMahoney Prcsldent j-llt)norar Treasurer
1
lnhersity College Cork ational blhersity of Ireland Cork
COSOLIDATED BAlACE SHEET 30 September 2004
otes
Consolidated
2004 CO(lO
2003 COOO
lnilrsit~
20()4 COOO
2lHl3 coou
Fhed assets
1 anglh Ie asset
Flnanci3 LSScl~ 10
11
Current assets
Swcks 12 314 351 291 3~)
Dchwr~ 1 L 32deg(11 1wCJRx 41206 J9~ J2
Ca~h al bank
3330- 5 ~37 41497 469]
Creditors AmOUlllS fallmg due wnhm nne
year (10UAX6) (76923)
et current liabilities
Total assets less current liabilities 301307 25C)6c)7 25756 114900
Creditors Amoums falling due after nne
vear l=
0 fC et assets 1(1)gt ll~flt 4 CHi4 A
123552Deferred capital grants
Represented by
Revenue rescrvcs C) 1l2396 (9750)
ReitJumion reserve If)
Total
The financwl mncmenb on pages ~ 10 3(1 were appr0cd bv the GOcming B0dv on ] () OCC1ber 20C6 and wcre OIl
I1s hehall
SIgned Professor Wrixon Dermot OMahoney Prcsidcnt Honorarv Treasurer
lninrsity College Cork ational lniycrsity of Ireland Cork
COSOLUHTED CASH FLOW STATEMENT OF HISTORIC COST SLRPLlSES AD DEFICITS Year Ended 30 September 004
h I~ 11) possihle to determine the difference hetween hlstoncal ost depreCHllion and the actual charge due w the facl thal
th 111ston~al cost infomlation IS not aailahl
STATDIET OF TOTAL RECOGISED GAIS AN)) LOSSES Year Ended 30 September ()()4
2004 fOOO
2003 fOOO
Defill all COlll1l1UIIlg operatIons after depre~lalon of assets at aluali(lfL
(t IsseIS and laX (2646)
Unrcdlsed surplus on revaluation of financial assets
Ttllal rcognised gail15 relatmg 10 the year
Reconciliation
126lCJO
gams (losses) for the year
Closmg resenes
lniHrsiry Colegt Cork alional Cniersity of I relund Cork
COSOLIDATED CASH FLOW STATE]lElT Year Ended 30 September 20(14
et cash outflow from operating activities
Returns on investments and seIleing of finance
expenditure and finanial mcstmem
e( cash outflow befon financing
Fmll1cmg
Decrease in cash in the period
Reconciliation of net cash flow to movement in net fundsdebt
Decrclse in cash m the period
Ctsh (luttlO from mcrease in debt and lease financmg
Change 111 nel debt resultlIlg from cashflows
on ash changes
(lemel1l 111 net debt in period
Cl debt at i October 2003
et ckbt CIt 30 September 2004
otes
24
21104 E()()O
(761)
( 18680
( 390U I
26
26
(341021
(0361)41---shy
lninrsity College Cork ational [niersit~ of Ireland Cork
ons TO THE ACCOCTS
Stale grants 20()4 2003 COOO COOO
)t1 grams allclcatcd for recurrent pllrrO~CS
Thc al-gt( gLlOt mome wa~ neclved from the Higher Educltlon Aulloril anc Ihe DcpanmeIH of J-kJllh amp Chldrell
2 Academic fees 200-1 2003 COOO CO()()
-cadcmic fee inccme
Total fces pale hy o[ on behalf of mdiyidual studems
- lOla ofC5073-lO 2003euro3084g(l23) lIlcluded in aCiJdemic icc income was pJld dIrectly by the lllgher Educalon uthorilY
Research grants and contracts
European Umon InduSlf
Other
-1 Other incollle
Other rental l11C(lme
Funded pClst lIlCOll1t
SlUdent rsidenccs 1OC0111C
Proflt on compulsory iJcqUlsition oj lands Profit on sale of lands Leisure facilitie InCOme
Demal IlOSPlliJl I1come
Other income
= Interest income
Inttres mcome
2()0-1 2U03 fOOO coon
3 i 078 023
3S33
2()0-1 2003 pound000 ClWO
19 ~()~ 3U5
391()
l(1Ci
(I(i
2213 X6(1
2305 2(
laquo242 UOCi
1 Sl i~
200~ 200J COOO COOU
6
tlliwrsi Colle[c Cork arional Lnhersity of Ireland Cork
OTES TO THE ACCOFTS - continued
Staff costs
rh~ 3Crage veekh number of perSClJ1S (mcludlllg senior jwsl-h(ldcrs) emploved by tht
cpresscd as full-urne equlalcm was
reahing and rsearch
TechmcJI
entral adnllnistraIon and serices
Other
Salaries and wages
Social welfare costs
Other pension costs
Other operating expenses
Consumables
BeaL light aler and power
Research consumables
R(palfS and general mailllcnallce
Audn and professional
Rent and rates
Other expenses
Other opcratmg expenses in~1 ude
Auditors remuneraIon
EXlcmal audit
Other seryices fro111 external audit
during the
UH4 umber
201)4
(000
119538
666
14LA7C)
2(1)4
(000
15A7 4 2603
1(L933 376
138 j
L531
2004 [000
cq
IF
2003 umber
1246
63
2003 fO()()
]05379
200] C(lIiO
2003 COOO
jll
1U-
14312
lnhersin Colle~( Cork arional lniversity of Ireland Cork
OTES TO THE ACCOtTS - continued
S Taxation
taXJllOll charge arises as the UlllvCrSll and il~ principal subndJar companies are exempt chantle and are not
hable for corporation tax or mcome tax on any of its charitabk actlvitles
I) Deficit on cOlltinuin~ operations for the year 20(14 2U(J3 [(IOU COOO
The deii-l on continuing operalJons for the vcar is made up a~ flllows
UniC~rslfS deficit for the vear
Surplus generated bv the subsidIary undenakmgs and transferred to the Univcrslt
Total
1
I uinlsity (olltj( (olk ~atiollall illi(rsil~ 01 Irdalltl Cork
NOI ES TO TilE A((OINTS
10 Tal~ihl( fix(d ass(ls
(( )NS()f J lgtAnl)
(0lt1 or valnation
At t ()cohcr200)
Additiotls
At
Is 311 21104
i)epncialioll
At 1 Oct(hcr 2(J03
(I Cd
tl) 2(11)1
Nrl hook aim
t I letobe WOJ
It Ill 211()4
fOlllillll((1
Land alld
hllildill~S
CHon
I 7ti6
57(iY
((l3)
379]
(() Ll
273I1U3
27350X
COIIIJlIII(middotr
(qlliplJI(lIt
(000
2(d~59
i23
1 JJ
2J 425
71 II
1434
4X39
EqllipllltlIl
COOO
iltU172 6+31
30514
9Y)()
20]X8
17331
Assets ill ((HI 1St or
COllstnldioll
ClUW
151)9
54512
109
Total
CIIOO
4IltX() 7Ui7
l) 1Yh2
IlI121
II
312(118
3(1)30
LamJ alld huiltiillll alld cquipnlCllt IIKludc assets valucd in Iljl)4 (In a dCpleCI1tet 1Cj111ccmcllt cosl hasis fL1 1lIOJ()) respectivelY land alld huildillils ami lssel in course (II cOllstructi(lil includes UX]X I IJ(IO
include C 51ltJ07()O() (lOll CJ1)I(lI()()()) in relatioll tn land and tile ACC(1l111tillg Standards Board Iliese land ami
ftilcsc buildillls IS that tlte
( ) nlccr oUTgt nUI(( I (~(() C127721J IO()) and CI 1 IlIeH 10 (2()(3
(11 Ii ecl(1ld Iaml willch is Iwl
The COlllllwlcial ellce of the trallsactiolls Slln
issued lire salv alld ulllllwtc
tll 1he lam] ami
~
--
- -
~
~
~
-
-=
shy
- = shy~
7
=-= -
Z
7 ~
~ - lt shy shy shy
shy
Z shy
Z
r X r
-
r
-= oJ c
= 0 ~
= -~-=
ti= ~
shy = =
~
~
t= Z
~
51
- Z ~ lt
0
r-~
(J n r--ltIoc r-
x
v ~ r l j r1 r- if
rr
T M rlt
r = j
= -j =
C
shy -
~ v ~ ~
shy shy
- - -
-0
lt - lt )
Z lt
1 0 x T x)C
F n ~
0middot1 r1~~
r -
r~
lt
0 lr ~ r1 n(1
l r~
ltj~
tniVCfsiry College Cork ttional Lniversiry of Ireland Cork
OTES TO THE ACC()l]TS - continued
11 Financial assets Consolid ated
2UO-l 2003 ((WO f(lOO
t nhersity 2004 2003
COOO COOO
InnSlInents at the veal end were held as follovs
( lthcr
3450
The investment in the Lmversllv Technology Centre Partnership ha~ been re31ued during the year tc the 3lue 0shythe Llmycrsny share inlhe partnership as at 31 December 2003
The tnhersity held an interest in the following subsidiary undertakings
Subsidhlry undertakings
Incorporated
Propem ianagement (LeC) Limited
Campm ccommOdali(111 C) Limned
Art Gallery (liCC) Limiled
Brcnard Limited
1ardykc LeIsure (U ce) Limited
At Ie Press Limited
(iivlC Holding~ Limlled
11 Stocks
Consumables
FIlllshed goods for resale
Prindplil activity
Property development
Accommodation rcntal
11 gallery
Leasing or lands
PublIshing
Dornnnt
Interest 0 0
J00
100
100
100
1(lOo
Consolidated
2004 2003 COOO (0110
65
Registered officeplace of business
City Chamhers 4
Cork
limversl1Y Cork Aestern Road Cork University Cork Vestern Road Cork University College Cork Western Road Cork liniversiry College Cork Western Road Cork Crawford Business Park Crosses Green Cork St Kildas Western Road Cork
Clliversity
O()4 2001 [(lOU COOO
36
fhere io no malcnal difference between the balance sheet amount of slOcks and Its replacement cost
13 Debtors
Trad- debtors
Res-arh grants and colllraCls receiabk
nwunts due from suhsldmrv undertakings
Slale gr~ml reciabk
(lther tJJtWIl and s(lcial Illsurancc
Other deotiJrs
C ollsolida ted Llliycrsif
2(104 2003 2004 200 [000 COOO COOO f(I00
S34 -Li06 67U
601 753 6015 j J0(
1~S26 766 12S~6
11 -- 3 f~ 51 t
lJ
~ q()l --l12(j( ~ ~
CnhlIsit~ College Cork ationallniersity of Ireland Cork
OTES TO THE CCOCTS - continued
1-1 Creditors Amounts fallillg due within Dill year Consolidated lnjyersit~
20114 2003 2004 2003 COOO COOO [000 C(lOU
Trad rcdjtor~ 7501 Cl295 (702
Research grants and contracts III advance I(i5 5 1150i 1U5~ -cademic fee~ receied in advance 11(1()4 QOM 110CJ4 ()01gt4
State grant receied m advance 118 I 1535 513~ Bank loans 8 overdrafts (note 16) 3O 39 416 1606 333~
Amounts owed to subsidiary undenakmgs -113 4SS~
Other taxatIOn and SOCIal security -+394 0 41 42()9 SAl (i
Deftrred incJll1e 19(3 9131
Other creditors 8 accruals lOOARA R9~~
15 Creditors Amounts falling due after one year Consolidated linivcrsi t)
200-1 2003 2004 20U3 ((lOO COOO (000 COOO
Bank loans (note 16) ~ 1 - -_-
16 Borrowings Consolidated University
2004 2003 2004 2003 (000 (000 fOOO (IOU
Bank loans and overdrafts
Bank loan and oerdrafts are repayable as follows
III one year or less 3073Q 41 6 8606 33~
O~(Between one and twe veal 221 1693 1ampshy
Between two ard 11 H years 872 (i 104 604Q 3+05
In fiC y~ar or more
TCHal 6360 1 3400( I ~~ ~
ature and Securiry of Borrowings stated tn Note 10 F1Xed Assets hae been accounted for in accordance with FRS 5 The ab[)vc liabilIl16 represent the uhimate lwbilitie to repurchase the assct~ concerned The borrowJI1gs arc secured bv title until the repurchae takes place
lniYlrsit Colleu ( Cork -ational lniversity of Ireland Cork
-OTES TO THE ACCOCTS - continued
1~ Deferred capital grants HEA
COOO
Other grants and
benefactors (000
Total
COOO
C olsolida ted
At 1 October 2003
BuJldmg~
EJuipment
Tota
414 45677 8-31
Cash received Buildmg
Equipment
Tolal
b53-l 153~5 -l U59
Released to income and expenditure
Buildmgs
Equipment
TClaj
1449 )
~
9~3
1-1 ---
) iii _) shy
1L~~~
At 3() Septemher 20()t
B u ild 1111
Equipmem
T pta I
66639
7(91
600 i 9
-09A
I 6-] ~
14UltC)
l ni(~rsit C olieo ( Cork arional Cnhersity of Ireland Cork
OTES TO THE ACCOl1TS - continued
1i Deferred capital grants continued HEA
(non
t niersity
At 1 October 21Hl3
B uil dlllb
Eqmpmem
Total
Cash received
Buddmggt EqUIpment
TOla
Released to income and expenditur( 1 1 7Buildmg )
Equipmcl1l
Total )S3
At 30 September 200
Buildll1g~ 61324
EqUlpmcm Tora (~=5
IS Revaluation reser( Consolidated
2004 2003 (lOO ((lOU
At 1 October as pcr nOle 10) 135940
Reuluatlons or inesrmerm in the penod InOle I 1
t W Serlember
Other gran IS Total and
henefactors (000 COOO
3515 -=37(J
81 2149
4465 7i ~
XXh(1
51627 112951
~65(1
6()
Lnjcrsity 200 20()3
f ono C 000
35040
lniYcrsiry Collegl Cork iarional Llliycrsit~ of Ireland Cork
iOTES TO THE ACCOl1TS - continued
1(J Reconciliation of movcment of reservcs Revenue Revaluation Total reserves reserves
COOO pound1000 ooo
Consolidattd
1 I October 211(0shy 6]90
D(bcll on comlllumg l)perations revaluation
I ( Septemher 20(14
middott I Octoher 2003 13940 126241
Deficll or eommumg operations revaluation
3( September 2004 1RR~]
W Contingencies
The U11lversil from tIme ll time is party to yariow legal proceedings The Offieers of the University havc been mlormed hy then legal advisors that it is not possibie at this time to make a rellable estimme of the finanCIal effects (if an~l of tiles cases
t 3( September 2004 a cO1ll1gent lIabIlity existed in respect of potential Value Added Tax in the amoum of C2 rmbon together with substantial potential imeresl and penalties This potentIa] habilItv was setllc~d in January 006 at a lesser amount and the effect on the Income and Expenditure -ecount is no material
21 Capital commitments Consolidatcd Univcrsity
2004 2003 2004 2003 (000 (000 COOO (000
Comracted for but nO promiddotided 69143
Authorised but not omracted out 18304 i 49]Q
tninrsity College Cork ationa lniversity of Ireland Cork
OTES TO THE AccorTS - (ontillucmiddotd
Reconciliation of consolidated operating deficit to net cash outflow from operating activities
Dilcit on conlJnuing operalJons afier depreciation of assets at valuatlOn Dcpr(clat10n D~fcfT(d apital grants released W income Proiit on dIsposal of tangible fixed as~ets D~rcase m stocks Increase m debtors
Drcflse m creditors
on cash changes lmerest receivable Imerest em Iiabiliy 10 Investors under FRS Increase m invcstment aluation
et cash outflow from opernt1l1g aClivilJes
23 Returns on inwstments and servicing of finance
Other lterest received Interes paid on habihty to investors under FRSS
ct cash inGow from returns on lllvestments and senlcing of finance
24 Capital expenditure and financial illYestment
iurh3se of tangible fixed assets Sak of tangible fixed assets (see note 10) Deferred capnal grants receIved
Net cash outflow from capital expendllure and finanClallllestmcm
2()l4
CIIOO
12(46) 1C) ~ 21
( 11253 ) (64 0 )
(]3006) f~(24)
15 (3011 11)62
11
( 14 361
2004 (000
301 ( 1(1621
7611
2004 C()(l()
S57 70(1
SC)4T
ISoRO
lniversit~ College Cork arional tniversity of Ireland Cork
OTES TO THE ACCOCTS - continued
15 Financing 200-1 (000
Dht due within ant year Drclse 111 shon term hononn~
Dent due lyand one year Increase in long tenl1 borw1I1g
1et -ash inflow frorr financing
26 nalsis of changes in net debt At CashOows Other At I October Non cash 30 September
2003 changes 2004 POOH (000 POOO COOO
C~sh 111 hand and at hank 5 3 9Z l)vcrdrafts
539( (21)5021
Deht due within I year (-US6) 1C)[9 (~37)
Debt due after J vear 62R) (19) (7241 Llabilll to invctors under FRS (125) (24231 i
125 163f()4iTCltal
27 Related parties
Transactions Jh suhsidlanes of the UlllversllY have been eillninated on consdidauon and 11(1 disclosure or these transactIOn has therefore been gIven The Lnlerslty had the following transactIOns with related panics on 1 DeCember 1995 Irish Universitl Student Trust entered into a twent five year lease or AnlS 113 Mac Lemn from Lmverslty College Cork at an annual rental dE44A4J pel annum The trustees oflnsh UnirSH Studem Trust are the PrerdenL Secreta and Bursar and Fllance Officer elf ljmvcrsll Cork
l ninrsit College Cork ationaJ lininrsit~ of Ireland Cork
OTES TO THE ACC01T5 - COli tinned
8 Pcnsions
3 ~ PenSIon for substantiaEy all employees are funded through a defined henefit pension schemelt
The lniwrsl oper3tes a defined henefit penSlOll scheme wllh assets held 111 a separately admmlstered fund The total pension cost w the UniversHy ltas f14J)-4 Q 4J (2003 f12(J]-~13L The Illost recen uctuanul
aluation as undenaken as at 1 Octoher 2004 hy consuting actuanes uS1l1g the attained age methodlt The
princIpal assumptIon used in the actuarial valuatlOn was that the long-term annual rale of return on 1I1vestment would exceedtbe mcrease 111 pensionable earnIngs by 2) The 1ens1On and Trust Funds are not included 1I1
the Balance Sheet hecause they arc funds w1111 a separate COHSlltu1l0n from the general assets and ltabilJtie~ of the t11lerSlllaquo
t the date of tbe last actuaria I valuation the market aluc of the scheme s assets was sufTiclCl1t to cover 9lt
of the accrued liabilitleslt based on currcnt eammgs and also allowlllg for expected future mcreascs m eammgslt
The ul1lversny also operates a defmed contributIon penslOn scheme that covers cenain empl(1yees of the
ul11ersirvlt The assets of the scheme are invested by independent trustees for the benefit of these emplovees
ContributIOns to tim pension scheme for the year amounted to C02(il15 (2003 fJ A4F788I
b Financial Reporting STandard 1- Retirement Bellefirs disclosures
The alual1on of the Superannuation Plan benefits for the purposes of FRS 10 disclosures was based on the
results of the actuanal valuation ~aITlcd out as at 0 1102004 suItably adjusted to ~Onr()m1 to the requirements
of FRS 1- The impact of the penSlOn obligations of benchmarkmg awards due but not vet paid has been
mcluded The financlal assumptions used w calulate the retIrement cbltgatJons under FRS I were as follows
2004 2003
Valuation method Projected Projected Luit Luit
Dicou11l rate ) JlOdeg) )lt50
In118tio11 rale 250deg(1 250middot
Satan 1I1lTeases LO 450deg()
PenSlOll Supplemel1latlon 350l~middott 350o (J
t nhersity Coll(ge Cork gtational Lniversity of Ireland Cork
gtOTpound5 TO THE ACCOlgtTS continued
b Financial ReporrillK Standard 1- Rctircmcnr Bcncfirs discloswc (coltinued)
Th market value of the assets 111 the penSIOn schenk the expected rates of return and the hllgallOns as at 300920(11 togethe WIth the pnor vear arc ShC11 belo
2004 2003 cooo coon
Equities ~ ~5deg iJ 11Q708 800 1~346
Bonds -f ~()(I( 22456 150[0 lfd29
PropertY 65degu ImiddotUP 00( 14330
)Clsh 21 O()~() 2]0
TOW market alue of assets 1GL933 166623
Actual Value of Labilny
PenSlun Deficll
Related deferred tax Iiabiit~
et PellSlOn Llabi hty
Analysis of the amount that would have heen charg(d HI operating profit under FRS 17 is as foil () s
2004 2003 COOO (000
Curren Selce Cost 1710 1
Past SeTyice Cost
Tow Operatmg Charge
Analysis of the amount that would lUlVe been credited to other finance income under FRS]7 is as
follows
2004 2003 (000 COOIl
retum 011 s-heme asct~ 1U104
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
lnhersity College Cork ational blhersity of Ireland Cork
COSOLIDATED BAlACE SHEET 30 September 2004
otes
Consolidated
2004 CO(lO
2003 COOO
lnilrsit~
20()4 COOO
2lHl3 coou
Fhed assets
1 anglh Ie asset
Flnanci3 LSScl~ 10
11
Current assets
Swcks 12 314 351 291 3~)
Dchwr~ 1 L 32deg(11 1wCJRx 41206 J9~ J2
Ca~h al bank
3330- 5 ~37 41497 469]
Creditors AmOUlllS fallmg due wnhm nne
year (10UAX6) (76923)
et current liabilities
Total assets less current liabilities 301307 25C)6c)7 25756 114900
Creditors Amoums falling due after nne
vear l=
0 fC et assets 1(1)gt ll~flt 4 CHi4 A
123552Deferred capital grants
Represented by
Revenue rescrvcs C) 1l2396 (9750)
ReitJumion reserve If)
Total
The financwl mncmenb on pages ~ 10 3(1 were appr0cd bv the GOcming B0dv on ] () OCC1ber 20C6 and wcre OIl
I1s hehall
SIgned Professor Wrixon Dermot OMahoney Prcsidcnt Honorarv Treasurer
lninrsity College Cork ational lniycrsity of Ireland Cork
COSOLUHTED CASH FLOW STATEMENT OF HISTORIC COST SLRPLlSES AD DEFICITS Year Ended 30 September 004
h I~ 11) possihle to determine the difference hetween hlstoncal ost depreCHllion and the actual charge due w the facl thal
th 111ston~al cost infomlation IS not aailahl
STATDIET OF TOTAL RECOGISED GAIS AN)) LOSSES Year Ended 30 September ()()4
2004 fOOO
2003 fOOO
Defill all COlll1l1UIIlg operatIons after depre~lalon of assets at aluali(lfL
(t IsseIS and laX (2646)
Unrcdlsed surplus on revaluation of financial assets
Ttllal rcognised gail15 relatmg 10 the year
Reconciliation
126lCJO
gams (losses) for the year
Closmg resenes
lniHrsiry Colegt Cork alional Cniersity of I relund Cork
COSOLIDATED CASH FLOW STATE]lElT Year Ended 30 September 20(14
et cash outflow from operating activities
Returns on investments and seIleing of finance
expenditure and finanial mcstmem
e( cash outflow befon financing
Fmll1cmg
Decrease in cash in the period
Reconciliation of net cash flow to movement in net fundsdebt
Decrclse in cash m the period
Ctsh (luttlO from mcrease in debt and lease financmg
Change 111 nel debt resultlIlg from cashflows
on ash changes
(lemel1l 111 net debt in period
Cl debt at i October 2003
et ckbt CIt 30 September 2004
otes
24
21104 E()()O
(761)
( 18680
( 390U I
26
26
(341021
(0361)41---shy
lninrsity College Cork ational [niersit~ of Ireland Cork
ons TO THE ACCOCTS
Stale grants 20()4 2003 COOO COOO
)t1 grams allclcatcd for recurrent pllrrO~CS
Thc al-gt( gLlOt mome wa~ neclved from the Higher Educltlon Aulloril anc Ihe DcpanmeIH of J-kJllh amp Chldrell
2 Academic fees 200-1 2003 COOO CO()()
-cadcmic fee inccme
Total fces pale hy o[ on behalf of mdiyidual studems
- lOla ofC5073-lO 2003euro3084g(l23) lIlcluded in aCiJdemic icc income was pJld dIrectly by the lllgher Educalon uthorilY
Research grants and contracts
European Umon InduSlf
Other
-1 Other incollle
Other rental l11C(lme
Funded pClst lIlCOll1t
SlUdent rsidenccs 1OC0111C
Proflt on compulsory iJcqUlsition oj lands Profit on sale of lands Leisure facilitie InCOme
Demal IlOSPlliJl I1come
Other income
= Interest income
Inttres mcome
2()0-1 2U03 fOOO coon
3 i 078 023
3S33
2()0-1 2003 pound000 ClWO
19 ~()~ 3U5
391()
l(1Ci
(I(i
2213 X6(1
2305 2(
laquo242 UOCi
1 Sl i~
200~ 200J COOO COOU
6
tlliwrsi Colle[c Cork arional Lnhersity of Ireland Cork
OTES TO THE ACCOFTS - continued
Staff costs
rh~ 3Crage veekh number of perSClJ1S (mcludlllg senior jwsl-h(ldcrs) emploved by tht
cpresscd as full-urne equlalcm was
reahing and rsearch
TechmcJI
entral adnllnistraIon and serices
Other
Salaries and wages
Social welfare costs
Other pension costs
Other operating expenses
Consumables
BeaL light aler and power
Research consumables
R(palfS and general mailllcnallce
Audn and professional
Rent and rates
Other expenses
Other opcratmg expenses in~1 ude
Auditors remuneraIon
EXlcmal audit
Other seryices fro111 external audit
during the
UH4 umber
201)4
(000
119538
666
14LA7C)
2(1)4
(000
15A7 4 2603
1(L933 376
138 j
L531
2004 [000
cq
IF
2003 umber
1246
63
2003 fO()()
]05379
200] C(lIiO
2003 COOO
jll
1U-
14312
lnhersin Colle~( Cork arional lniversity of Ireland Cork
OTES TO THE ACCOtTS - continued
S Taxation
taXJllOll charge arises as the UlllvCrSll and il~ principal subndJar companies are exempt chantle and are not
hable for corporation tax or mcome tax on any of its charitabk actlvitles
I) Deficit on cOlltinuin~ operations for the year 20(14 2U(J3 [(IOU COOO
The deii-l on continuing operalJons for the vcar is made up a~ flllows
UniC~rslfS deficit for the vear
Surplus generated bv the subsidIary undenakmgs and transferred to the Univcrslt
Total
1
I uinlsity (olltj( (olk ~atiollall illi(rsil~ 01 Irdalltl Cork
NOI ES TO TilE A((OINTS
10 Tal~ihl( fix(d ass(ls
(( )NS()f J lgtAnl)
(0lt1 or valnation
At t ()cohcr200)
Additiotls
At
Is 311 21104
i)epncialioll
At 1 Oct(hcr 2(J03
(I Cd
tl) 2(11)1
Nrl hook aim
t I letobe WOJ
It Ill 211()4
fOlllillll((1
Land alld
hllildill~S
CHon
I 7ti6
57(iY
((l3)
379]
(() Ll
273I1U3
27350X
COIIIJlIII(middotr
(qlliplJI(lIt
(000
2(d~59
i23
1 JJ
2J 425
71 II
1434
4X39
EqllipllltlIl
COOO
iltU172 6+31
30514
9Y)()
20]X8
17331
Assets ill ((HI 1St or
COllstnldioll
ClUW
151)9
54512
109
Total
CIIOO
4IltX() 7Ui7
l) 1Yh2
IlI121
II
312(118
3(1)30
LamJ alld huiltiillll alld cquipnlCllt IIKludc assets valucd in Iljl)4 (In a dCpleCI1tet 1Cj111ccmcllt cosl hasis fL1 1lIOJ()) respectivelY land alld huildillils ami lssel in course (II cOllstructi(lil includes UX]X I IJ(IO
include C 51ltJ07()O() (lOll CJ1)I(lI()()()) in relatioll tn land and tile ACC(1l111tillg Standards Board Iliese land ami
ftilcsc buildillls IS that tlte
( ) nlccr oUTgt nUI(( I (~(() C127721J IO()) and CI 1 IlIeH 10 (2()(3
(11 Ii ecl(1ld Iaml willch is Iwl
The COlllllwlcial ellce of the trallsactiolls Slln
issued lire salv alld ulllllwtc
tll 1he lam] ami
~
--
- -
~
~
~
-
-=
shy
- = shy~
7
=-= -
Z
7 ~
~ - lt shy shy shy
shy
Z shy
Z
r X r
-
r
-= oJ c
= 0 ~
= -~-=
ti= ~
shy = =
~
~
t= Z
~
51
- Z ~ lt
0
r-~
(J n r--ltIoc r-
x
v ~ r l j r1 r- if
rr
T M rlt
r = j
= -j =
C
shy -
~ v ~ ~
shy shy
- - -
-0
lt - lt )
Z lt
1 0 x T x)C
F n ~
0middot1 r1~~
r -
r~
lt
0 lr ~ r1 n(1
l r~
ltj~
tniVCfsiry College Cork ttional Lniversiry of Ireland Cork
OTES TO THE ACC()l]TS - continued
11 Financial assets Consolid ated
2UO-l 2003 ((WO f(lOO
t nhersity 2004 2003
COOO COOO
InnSlInents at the veal end were held as follovs
( lthcr
3450
The investment in the Lmversllv Technology Centre Partnership ha~ been re31ued during the year tc the 3lue 0shythe Llmycrsny share inlhe partnership as at 31 December 2003
The tnhersity held an interest in the following subsidiary undertakings
Subsidhlry undertakings
Incorporated
Propem ianagement (LeC) Limited
Campm ccommOdali(111 C) Limned
Art Gallery (liCC) Limiled
Brcnard Limited
1ardykc LeIsure (U ce) Limited
At Ie Press Limited
(iivlC Holding~ Limlled
11 Stocks
Consumables
FIlllshed goods for resale
Prindplil activity
Property development
Accommodation rcntal
11 gallery
Leasing or lands
PublIshing
Dornnnt
Interest 0 0
J00
100
100
100
1(lOo
Consolidated
2004 2003 COOO (0110
65
Registered officeplace of business
City Chamhers 4
Cork
limversl1Y Cork Aestern Road Cork University Cork Vestern Road Cork University College Cork Western Road Cork liniversiry College Cork Western Road Cork Crawford Business Park Crosses Green Cork St Kildas Western Road Cork
Clliversity
O()4 2001 [(lOU COOO
36
fhere io no malcnal difference between the balance sheet amount of slOcks and Its replacement cost
13 Debtors
Trad- debtors
Res-arh grants and colllraCls receiabk
nwunts due from suhsldmrv undertakings
Slale gr~ml reciabk
(lther tJJtWIl and s(lcial Illsurancc
Other deotiJrs
C ollsolida ted Llliycrsif
2(104 2003 2004 200 [000 COOO COOO f(I00
S34 -Li06 67U
601 753 6015 j J0(
1~S26 766 12S~6
11 -- 3 f~ 51 t
lJ
~ q()l --l12(j( ~ ~
CnhlIsit~ College Cork ationallniersity of Ireland Cork
OTES TO THE CCOCTS - continued
1-1 Creditors Amounts fallillg due within Dill year Consolidated lnjyersit~
20114 2003 2004 2003 COOO COOO [000 C(lOU
Trad rcdjtor~ 7501 Cl295 (702
Research grants and contracts III advance I(i5 5 1150i 1U5~ -cademic fee~ receied in advance 11(1()4 QOM 110CJ4 ()01gt4
State grant receied m advance 118 I 1535 513~ Bank loans 8 overdrafts (note 16) 3O 39 416 1606 333~
Amounts owed to subsidiary undenakmgs -113 4SS~
Other taxatIOn and SOCIal security -+394 0 41 42()9 SAl (i
Deftrred incJll1e 19(3 9131
Other creditors 8 accruals lOOARA R9~~
15 Creditors Amounts falling due after one year Consolidated linivcrsi t)
200-1 2003 2004 20U3 ((lOO COOO (000 COOO
Bank loans (note 16) ~ 1 - -_-
16 Borrowings Consolidated University
2004 2003 2004 2003 (000 (000 fOOO (IOU
Bank loans and overdrafts
Bank loan and oerdrafts are repayable as follows
III one year or less 3073Q 41 6 8606 33~
O~(Between one and twe veal 221 1693 1ampshy
Between two ard 11 H years 872 (i 104 604Q 3+05
In fiC y~ar or more
TCHal 6360 1 3400( I ~~ ~
ature and Securiry of Borrowings stated tn Note 10 F1Xed Assets hae been accounted for in accordance with FRS 5 The ab[)vc liabilIl16 represent the uhimate lwbilitie to repurchase the assct~ concerned The borrowJI1gs arc secured bv title until the repurchae takes place
lniYlrsit Colleu ( Cork -ational lniversity of Ireland Cork
-OTES TO THE ACCOCTS - continued
1~ Deferred capital grants HEA
COOO
Other grants and
benefactors (000
Total
COOO
C olsolida ted
At 1 October 2003
BuJldmg~
EJuipment
Tota
414 45677 8-31
Cash received Buildmg
Equipment
Tolal
b53-l 153~5 -l U59
Released to income and expenditure
Buildmgs
Equipment
TClaj
1449 )
~
9~3
1-1 ---
) iii _) shy
1L~~~
At 3() Septemher 20()t
B u ild 1111
Equipmem
T pta I
66639
7(91
600 i 9
-09A
I 6-] ~
14UltC)
l ni(~rsit C olieo ( Cork arional Cnhersity of Ireland Cork
OTES TO THE ACCOl1TS - continued
1i Deferred capital grants continued HEA
(non
t niersity
At 1 October 21Hl3
B uil dlllb
Eqmpmem
Total
Cash received
Buddmggt EqUIpment
TOla
Released to income and expenditur( 1 1 7Buildmg )
Equipmcl1l
Total )S3
At 30 September 200
Buildll1g~ 61324
EqUlpmcm Tora (~=5
IS Revaluation reser( Consolidated
2004 2003 (lOO ((lOU
At 1 October as pcr nOle 10) 135940
Reuluatlons or inesrmerm in the penod InOle I 1
t W Serlember
Other gran IS Total and
henefactors (000 COOO
3515 -=37(J
81 2149
4465 7i ~
XXh(1
51627 112951
~65(1
6()
Lnjcrsity 200 20()3
f ono C 000
35040
lniYcrsiry Collegl Cork iarional Llliycrsit~ of Ireland Cork
iOTES TO THE ACCOl1TS - continued
1(J Reconciliation of movcment of reservcs Revenue Revaluation Total reserves reserves
COOO pound1000 ooo
Consolidattd
1 I October 211(0shy 6]90
D(bcll on comlllumg l)perations revaluation
I ( Septemher 20(14
middott I Octoher 2003 13940 126241
Deficll or eommumg operations revaluation
3( September 2004 1RR~]
W Contingencies
The U11lversil from tIme ll time is party to yariow legal proceedings The Offieers of the University havc been mlormed hy then legal advisors that it is not possibie at this time to make a rellable estimme of the finanCIal effects (if an~l of tiles cases
t 3( September 2004 a cO1ll1gent lIabIlity existed in respect of potential Value Added Tax in the amoum of C2 rmbon together with substantial potential imeresl and penalties This potentIa] habilItv was setllc~d in January 006 at a lesser amount and the effect on the Income and Expenditure -ecount is no material
21 Capital commitments Consolidatcd Univcrsity
2004 2003 2004 2003 (000 (000 COOO (000
Comracted for but nO promiddotided 69143
Authorised but not omracted out 18304 i 49]Q
tninrsity College Cork ationa lniversity of Ireland Cork
OTES TO THE AccorTS - (ontillucmiddotd
Reconciliation of consolidated operating deficit to net cash outflow from operating activities
Dilcit on conlJnuing operalJons afier depreciation of assets at valuatlOn Dcpr(clat10n D~fcfT(d apital grants released W income Proiit on dIsposal of tangible fixed as~ets D~rcase m stocks Increase m debtors
Drcflse m creditors
on cash changes lmerest receivable Imerest em Iiabiliy 10 Investors under FRS Increase m invcstment aluation
et cash outflow from opernt1l1g aClivilJes
23 Returns on inwstments and servicing of finance
Other lterest received Interes paid on habihty to investors under FRSS
ct cash inGow from returns on lllvestments and senlcing of finance
24 Capital expenditure and financial illYestment
iurh3se of tangible fixed assets Sak of tangible fixed assets (see note 10) Deferred capnal grants receIved
Net cash outflow from capital expendllure and finanClallllestmcm
2()l4
CIIOO
12(46) 1C) ~ 21
( 11253 ) (64 0 )
(]3006) f~(24)
15 (3011 11)62
11
( 14 361
2004 (000
301 ( 1(1621
7611
2004 C()(l()
S57 70(1
SC)4T
ISoRO
lniversit~ College Cork arional tniversity of Ireland Cork
OTES TO THE ACCOCTS - continued
15 Financing 200-1 (000
Dht due within ant year Drclse 111 shon term hononn~
Dent due lyand one year Increase in long tenl1 borw1I1g
1et -ash inflow frorr financing
26 nalsis of changes in net debt At CashOows Other At I October Non cash 30 September
2003 changes 2004 POOH (000 POOO COOO
C~sh 111 hand and at hank 5 3 9Z l)vcrdrafts
539( (21)5021
Deht due within I year (-US6) 1C)[9 (~37)
Debt due after J vear 62R) (19) (7241 Llabilll to invctors under FRS (125) (24231 i
125 163f()4iTCltal
27 Related parties
Transactions Jh suhsidlanes of the UlllversllY have been eillninated on consdidauon and 11(1 disclosure or these transactIOn has therefore been gIven The Lnlerslty had the following transactIOns with related panics on 1 DeCember 1995 Irish Universitl Student Trust entered into a twent five year lease or AnlS 113 Mac Lemn from Lmverslty College Cork at an annual rental dE44A4J pel annum The trustees oflnsh UnirSH Studem Trust are the PrerdenL Secreta and Bursar and Fllance Officer elf ljmvcrsll Cork
l ninrsit College Cork ationaJ lininrsit~ of Ireland Cork
OTES TO THE ACC01T5 - COli tinned
8 Pcnsions
3 ~ PenSIon for substantiaEy all employees are funded through a defined henefit pension schemelt
The lniwrsl oper3tes a defined henefit penSlOll scheme wllh assets held 111 a separately admmlstered fund The total pension cost w the UniversHy ltas f14J)-4 Q 4J (2003 f12(J]-~13L The Illost recen uctuanul
aluation as undenaken as at 1 Octoher 2004 hy consuting actuanes uS1l1g the attained age methodlt The
princIpal assumptIon used in the actuarial valuatlOn was that the long-term annual rale of return on 1I1vestment would exceedtbe mcrease 111 pensionable earnIngs by 2) The 1ens1On and Trust Funds are not included 1I1
the Balance Sheet hecause they arc funds w1111 a separate COHSlltu1l0n from the general assets and ltabilJtie~ of the t11lerSlllaquo
t the date of tbe last actuaria I valuation the market aluc of the scheme s assets was sufTiclCl1t to cover 9lt
of the accrued liabilitleslt based on currcnt eammgs and also allowlllg for expected future mcreascs m eammgslt
The ul1lversny also operates a defmed contributIon penslOn scheme that covers cenain empl(1yees of the
ul11ersirvlt The assets of the scheme are invested by independent trustees for the benefit of these emplovees
ContributIOns to tim pension scheme for the year amounted to C02(il15 (2003 fJ A4F788I
b Financial Reporting STandard 1- Retirement Bellefirs disclosures
The alual1on of the Superannuation Plan benefits for the purposes of FRS 10 disclosures was based on the
results of the actuanal valuation ~aITlcd out as at 0 1102004 suItably adjusted to ~Onr()m1 to the requirements
of FRS 1- The impact of the penSlOn obligations of benchmarkmg awards due but not vet paid has been
mcluded The financlal assumptions used w calulate the retIrement cbltgatJons under FRS I were as follows
2004 2003
Valuation method Projected Projected Luit Luit
Dicou11l rate ) JlOdeg) )lt50
In118tio11 rale 250deg(1 250middot
Satan 1I1lTeases LO 450deg()
PenSlOll Supplemel1latlon 350l~middott 350o (J
t nhersity Coll(ge Cork gtational Lniversity of Ireland Cork
gtOTpound5 TO THE ACCOlgtTS continued
b Financial ReporrillK Standard 1- Rctircmcnr Bcncfirs discloswc (coltinued)
Th market value of the assets 111 the penSIOn schenk the expected rates of return and the hllgallOns as at 300920(11 togethe WIth the pnor vear arc ShC11 belo
2004 2003 cooo coon
Equities ~ ~5deg iJ 11Q708 800 1~346
Bonds -f ~()(I( 22456 150[0 lfd29
PropertY 65degu ImiddotUP 00( 14330
)Clsh 21 O()~() 2]0
TOW market alue of assets 1GL933 166623
Actual Value of Labilny
PenSlun Deficll
Related deferred tax Iiabiit~
et PellSlOn Llabi hty
Analysis of the amount that would have heen charg(d HI operating profit under FRS 17 is as foil () s
2004 2003 COOO (000
Curren Selce Cost 1710 1
Past SeTyice Cost
Tow Operatmg Charge
Analysis of the amount that would lUlVe been credited to other finance income under FRS]7 is as
follows
2004 2003 (000 COOIl
retum 011 s-heme asct~ 1U104
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
lninrsity College Cork ational lniycrsity of Ireland Cork
COSOLUHTED CASH FLOW STATEMENT OF HISTORIC COST SLRPLlSES AD DEFICITS Year Ended 30 September 004
h I~ 11) possihle to determine the difference hetween hlstoncal ost depreCHllion and the actual charge due w the facl thal
th 111ston~al cost infomlation IS not aailahl
STATDIET OF TOTAL RECOGISED GAIS AN)) LOSSES Year Ended 30 September ()()4
2004 fOOO
2003 fOOO
Defill all COlll1l1UIIlg operatIons after depre~lalon of assets at aluali(lfL
(t IsseIS and laX (2646)
Unrcdlsed surplus on revaluation of financial assets
Ttllal rcognised gail15 relatmg 10 the year
Reconciliation
126lCJO
gams (losses) for the year
Closmg resenes
lniHrsiry Colegt Cork alional Cniersity of I relund Cork
COSOLIDATED CASH FLOW STATE]lElT Year Ended 30 September 20(14
et cash outflow from operating activities
Returns on investments and seIleing of finance
expenditure and finanial mcstmem
e( cash outflow befon financing
Fmll1cmg
Decrease in cash in the period
Reconciliation of net cash flow to movement in net fundsdebt
Decrclse in cash m the period
Ctsh (luttlO from mcrease in debt and lease financmg
Change 111 nel debt resultlIlg from cashflows
on ash changes
(lemel1l 111 net debt in period
Cl debt at i October 2003
et ckbt CIt 30 September 2004
otes
24
21104 E()()O
(761)
( 18680
( 390U I
26
26
(341021
(0361)41---shy
lninrsity College Cork ational [niersit~ of Ireland Cork
ons TO THE ACCOCTS
Stale grants 20()4 2003 COOO COOO
)t1 grams allclcatcd for recurrent pllrrO~CS
Thc al-gt( gLlOt mome wa~ neclved from the Higher Educltlon Aulloril anc Ihe DcpanmeIH of J-kJllh amp Chldrell
2 Academic fees 200-1 2003 COOO CO()()
-cadcmic fee inccme
Total fces pale hy o[ on behalf of mdiyidual studems
- lOla ofC5073-lO 2003euro3084g(l23) lIlcluded in aCiJdemic icc income was pJld dIrectly by the lllgher Educalon uthorilY
Research grants and contracts
European Umon InduSlf
Other
-1 Other incollle
Other rental l11C(lme
Funded pClst lIlCOll1t
SlUdent rsidenccs 1OC0111C
Proflt on compulsory iJcqUlsition oj lands Profit on sale of lands Leisure facilitie InCOme
Demal IlOSPlliJl I1come
Other income
= Interest income
Inttres mcome
2()0-1 2U03 fOOO coon
3 i 078 023
3S33
2()0-1 2003 pound000 ClWO
19 ~()~ 3U5
391()
l(1Ci
(I(i
2213 X6(1
2305 2(
laquo242 UOCi
1 Sl i~
200~ 200J COOO COOU
6
tlliwrsi Colle[c Cork arional Lnhersity of Ireland Cork
OTES TO THE ACCOFTS - continued
Staff costs
rh~ 3Crage veekh number of perSClJ1S (mcludlllg senior jwsl-h(ldcrs) emploved by tht
cpresscd as full-urne equlalcm was
reahing and rsearch
TechmcJI
entral adnllnistraIon and serices
Other
Salaries and wages
Social welfare costs
Other pension costs
Other operating expenses
Consumables
BeaL light aler and power
Research consumables
R(palfS and general mailllcnallce
Audn and professional
Rent and rates
Other expenses
Other opcratmg expenses in~1 ude
Auditors remuneraIon
EXlcmal audit
Other seryices fro111 external audit
during the
UH4 umber
201)4
(000
119538
666
14LA7C)
2(1)4
(000
15A7 4 2603
1(L933 376
138 j
L531
2004 [000
cq
IF
2003 umber
1246
63
2003 fO()()
]05379
200] C(lIiO
2003 COOO
jll
1U-
14312
lnhersin Colle~( Cork arional lniversity of Ireland Cork
OTES TO THE ACCOtTS - continued
S Taxation
taXJllOll charge arises as the UlllvCrSll and il~ principal subndJar companies are exempt chantle and are not
hable for corporation tax or mcome tax on any of its charitabk actlvitles
I) Deficit on cOlltinuin~ operations for the year 20(14 2U(J3 [(IOU COOO
The deii-l on continuing operalJons for the vcar is made up a~ flllows
UniC~rslfS deficit for the vear
Surplus generated bv the subsidIary undenakmgs and transferred to the Univcrslt
Total
1
I uinlsity (olltj( (olk ~atiollall illi(rsil~ 01 Irdalltl Cork
NOI ES TO TilE A((OINTS
10 Tal~ihl( fix(d ass(ls
(( )NS()f J lgtAnl)
(0lt1 or valnation
At t ()cohcr200)
Additiotls
At
Is 311 21104
i)epncialioll
At 1 Oct(hcr 2(J03
(I Cd
tl) 2(11)1
Nrl hook aim
t I letobe WOJ
It Ill 211()4
fOlllillll((1
Land alld
hllildill~S
CHon
I 7ti6
57(iY
((l3)
379]
(() Ll
273I1U3
27350X
COIIIJlIII(middotr
(qlliplJI(lIt
(000
2(d~59
i23
1 JJ
2J 425
71 II
1434
4X39
EqllipllltlIl
COOO
iltU172 6+31
30514
9Y)()
20]X8
17331
Assets ill ((HI 1St or
COllstnldioll
ClUW
151)9
54512
109
Total
CIIOO
4IltX() 7Ui7
l) 1Yh2
IlI121
II
312(118
3(1)30
LamJ alld huiltiillll alld cquipnlCllt IIKludc assets valucd in Iljl)4 (In a dCpleCI1tet 1Cj111ccmcllt cosl hasis fL1 1lIOJ()) respectivelY land alld huildillils ami lssel in course (II cOllstructi(lil includes UX]X I IJ(IO
include C 51ltJ07()O() (lOll CJ1)I(lI()()()) in relatioll tn land and tile ACC(1l111tillg Standards Board Iliese land ami
ftilcsc buildillls IS that tlte
( ) nlccr oUTgt nUI(( I (~(() C127721J IO()) and CI 1 IlIeH 10 (2()(3
(11 Ii ecl(1ld Iaml willch is Iwl
The COlllllwlcial ellce of the trallsactiolls Slln
issued lire salv alld ulllllwtc
tll 1he lam] ami
~
--
- -
~
~
~
-
-=
shy
- = shy~
7
=-= -
Z
7 ~
~ - lt shy shy shy
shy
Z shy
Z
r X r
-
r
-= oJ c
= 0 ~
= -~-=
ti= ~
shy = =
~
~
t= Z
~
51
- Z ~ lt
0
r-~
(J n r--ltIoc r-
x
v ~ r l j r1 r- if
rr
T M rlt
r = j
= -j =
C
shy -
~ v ~ ~
shy shy
- - -
-0
lt - lt )
Z lt
1 0 x T x)C
F n ~
0middot1 r1~~
r -
r~
lt
0 lr ~ r1 n(1
l r~
ltj~
tniVCfsiry College Cork ttional Lniversiry of Ireland Cork
OTES TO THE ACC()l]TS - continued
11 Financial assets Consolid ated
2UO-l 2003 ((WO f(lOO
t nhersity 2004 2003
COOO COOO
InnSlInents at the veal end were held as follovs
( lthcr
3450
The investment in the Lmversllv Technology Centre Partnership ha~ been re31ued during the year tc the 3lue 0shythe Llmycrsny share inlhe partnership as at 31 December 2003
The tnhersity held an interest in the following subsidiary undertakings
Subsidhlry undertakings
Incorporated
Propem ianagement (LeC) Limited
Campm ccommOdali(111 C) Limned
Art Gallery (liCC) Limiled
Brcnard Limited
1ardykc LeIsure (U ce) Limited
At Ie Press Limited
(iivlC Holding~ Limlled
11 Stocks
Consumables
FIlllshed goods for resale
Prindplil activity
Property development
Accommodation rcntal
11 gallery
Leasing or lands
PublIshing
Dornnnt
Interest 0 0
J00
100
100
100
1(lOo
Consolidated
2004 2003 COOO (0110
65
Registered officeplace of business
City Chamhers 4
Cork
limversl1Y Cork Aestern Road Cork University Cork Vestern Road Cork University College Cork Western Road Cork liniversiry College Cork Western Road Cork Crawford Business Park Crosses Green Cork St Kildas Western Road Cork
Clliversity
O()4 2001 [(lOU COOO
36
fhere io no malcnal difference between the balance sheet amount of slOcks and Its replacement cost
13 Debtors
Trad- debtors
Res-arh grants and colllraCls receiabk
nwunts due from suhsldmrv undertakings
Slale gr~ml reciabk
(lther tJJtWIl and s(lcial Illsurancc
Other deotiJrs
C ollsolida ted Llliycrsif
2(104 2003 2004 200 [000 COOO COOO f(I00
S34 -Li06 67U
601 753 6015 j J0(
1~S26 766 12S~6
11 -- 3 f~ 51 t
lJ
~ q()l --l12(j( ~ ~
CnhlIsit~ College Cork ationallniersity of Ireland Cork
OTES TO THE CCOCTS - continued
1-1 Creditors Amounts fallillg due within Dill year Consolidated lnjyersit~
20114 2003 2004 2003 COOO COOO [000 C(lOU
Trad rcdjtor~ 7501 Cl295 (702
Research grants and contracts III advance I(i5 5 1150i 1U5~ -cademic fee~ receied in advance 11(1()4 QOM 110CJ4 ()01gt4
State grant receied m advance 118 I 1535 513~ Bank loans 8 overdrafts (note 16) 3O 39 416 1606 333~
Amounts owed to subsidiary undenakmgs -113 4SS~
Other taxatIOn and SOCIal security -+394 0 41 42()9 SAl (i
Deftrred incJll1e 19(3 9131
Other creditors 8 accruals lOOARA R9~~
15 Creditors Amounts falling due after one year Consolidated linivcrsi t)
200-1 2003 2004 20U3 ((lOO COOO (000 COOO
Bank loans (note 16) ~ 1 - -_-
16 Borrowings Consolidated University
2004 2003 2004 2003 (000 (000 fOOO (IOU
Bank loans and overdrafts
Bank loan and oerdrafts are repayable as follows
III one year or less 3073Q 41 6 8606 33~
O~(Between one and twe veal 221 1693 1ampshy
Between two ard 11 H years 872 (i 104 604Q 3+05
In fiC y~ar or more
TCHal 6360 1 3400( I ~~ ~
ature and Securiry of Borrowings stated tn Note 10 F1Xed Assets hae been accounted for in accordance with FRS 5 The ab[)vc liabilIl16 represent the uhimate lwbilitie to repurchase the assct~ concerned The borrowJI1gs arc secured bv title until the repurchae takes place
lniYlrsit Colleu ( Cork -ational lniversity of Ireland Cork
-OTES TO THE ACCOCTS - continued
1~ Deferred capital grants HEA
COOO
Other grants and
benefactors (000
Total
COOO
C olsolida ted
At 1 October 2003
BuJldmg~
EJuipment
Tota
414 45677 8-31
Cash received Buildmg
Equipment
Tolal
b53-l 153~5 -l U59
Released to income and expenditure
Buildmgs
Equipment
TClaj
1449 )
~
9~3
1-1 ---
) iii _) shy
1L~~~
At 3() Septemher 20()t
B u ild 1111
Equipmem
T pta I
66639
7(91
600 i 9
-09A
I 6-] ~
14UltC)
l ni(~rsit C olieo ( Cork arional Cnhersity of Ireland Cork
OTES TO THE ACCOl1TS - continued
1i Deferred capital grants continued HEA
(non
t niersity
At 1 October 21Hl3
B uil dlllb
Eqmpmem
Total
Cash received
Buddmggt EqUIpment
TOla
Released to income and expenditur( 1 1 7Buildmg )
Equipmcl1l
Total )S3
At 30 September 200
Buildll1g~ 61324
EqUlpmcm Tora (~=5
IS Revaluation reser( Consolidated
2004 2003 (lOO ((lOU
At 1 October as pcr nOle 10) 135940
Reuluatlons or inesrmerm in the penod InOle I 1
t W Serlember
Other gran IS Total and
henefactors (000 COOO
3515 -=37(J
81 2149
4465 7i ~
XXh(1
51627 112951
~65(1
6()
Lnjcrsity 200 20()3
f ono C 000
35040
lniYcrsiry Collegl Cork iarional Llliycrsit~ of Ireland Cork
iOTES TO THE ACCOl1TS - continued
1(J Reconciliation of movcment of reservcs Revenue Revaluation Total reserves reserves
COOO pound1000 ooo
Consolidattd
1 I October 211(0shy 6]90
D(bcll on comlllumg l)perations revaluation
I ( Septemher 20(14
middott I Octoher 2003 13940 126241
Deficll or eommumg operations revaluation
3( September 2004 1RR~]
W Contingencies
The U11lversil from tIme ll time is party to yariow legal proceedings The Offieers of the University havc been mlormed hy then legal advisors that it is not possibie at this time to make a rellable estimme of the finanCIal effects (if an~l of tiles cases
t 3( September 2004 a cO1ll1gent lIabIlity existed in respect of potential Value Added Tax in the amoum of C2 rmbon together with substantial potential imeresl and penalties This potentIa] habilItv was setllc~d in January 006 at a lesser amount and the effect on the Income and Expenditure -ecount is no material
21 Capital commitments Consolidatcd Univcrsity
2004 2003 2004 2003 (000 (000 COOO (000
Comracted for but nO promiddotided 69143
Authorised but not omracted out 18304 i 49]Q
tninrsity College Cork ationa lniversity of Ireland Cork
OTES TO THE AccorTS - (ontillucmiddotd
Reconciliation of consolidated operating deficit to net cash outflow from operating activities
Dilcit on conlJnuing operalJons afier depreciation of assets at valuatlOn Dcpr(clat10n D~fcfT(d apital grants released W income Proiit on dIsposal of tangible fixed as~ets D~rcase m stocks Increase m debtors
Drcflse m creditors
on cash changes lmerest receivable Imerest em Iiabiliy 10 Investors under FRS Increase m invcstment aluation
et cash outflow from opernt1l1g aClivilJes
23 Returns on inwstments and servicing of finance
Other lterest received Interes paid on habihty to investors under FRSS
ct cash inGow from returns on lllvestments and senlcing of finance
24 Capital expenditure and financial illYestment
iurh3se of tangible fixed assets Sak of tangible fixed assets (see note 10) Deferred capnal grants receIved
Net cash outflow from capital expendllure and finanClallllestmcm
2()l4
CIIOO
12(46) 1C) ~ 21
( 11253 ) (64 0 )
(]3006) f~(24)
15 (3011 11)62
11
( 14 361
2004 (000
301 ( 1(1621
7611
2004 C()(l()
S57 70(1
SC)4T
ISoRO
lniversit~ College Cork arional tniversity of Ireland Cork
OTES TO THE ACCOCTS - continued
15 Financing 200-1 (000
Dht due within ant year Drclse 111 shon term hononn~
Dent due lyand one year Increase in long tenl1 borw1I1g
1et -ash inflow frorr financing
26 nalsis of changes in net debt At CashOows Other At I October Non cash 30 September
2003 changes 2004 POOH (000 POOO COOO
C~sh 111 hand and at hank 5 3 9Z l)vcrdrafts
539( (21)5021
Deht due within I year (-US6) 1C)[9 (~37)
Debt due after J vear 62R) (19) (7241 Llabilll to invctors under FRS (125) (24231 i
125 163f()4iTCltal
27 Related parties
Transactions Jh suhsidlanes of the UlllversllY have been eillninated on consdidauon and 11(1 disclosure or these transactIOn has therefore been gIven The Lnlerslty had the following transactIOns with related panics on 1 DeCember 1995 Irish Universitl Student Trust entered into a twent five year lease or AnlS 113 Mac Lemn from Lmverslty College Cork at an annual rental dE44A4J pel annum The trustees oflnsh UnirSH Studem Trust are the PrerdenL Secreta and Bursar and Fllance Officer elf ljmvcrsll Cork
l ninrsit College Cork ationaJ lininrsit~ of Ireland Cork
OTES TO THE ACC01T5 - COli tinned
8 Pcnsions
3 ~ PenSIon for substantiaEy all employees are funded through a defined henefit pension schemelt
The lniwrsl oper3tes a defined henefit penSlOll scheme wllh assets held 111 a separately admmlstered fund The total pension cost w the UniversHy ltas f14J)-4 Q 4J (2003 f12(J]-~13L The Illost recen uctuanul
aluation as undenaken as at 1 Octoher 2004 hy consuting actuanes uS1l1g the attained age methodlt The
princIpal assumptIon used in the actuarial valuatlOn was that the long-term annual rale of return on 1I1vestment would exceedtbe mcrease 111 pensionable earnIngs by 2) The 1ens1On and Trust Funds are not included 1I1
the Balance Sheet hecause they arc funds w1111 a separate COHSlltu1l0n from the general assets and ltabilJtie~ of the t11lerSlllaquo
t the date of tbe last actuaria I valuation the market aluc of the scheme s assets was sufTiclCl1t to cover 9lt
of the accrued liabilitleslt based on currcnt eammgs and also allowlllg for expected future mcreascs m eammgslt
The ul1lversny also operates a defmed contributIon penslOn scheme that covers cenain empl(1yees of the
ul11ersirvlt The assets of the scheme are invested by independent trustees for the benefit of these emplovees
ContributIOns to tim pension scheme for the year amounted to C02(il15 (2003 fJ A4F788I
b Financial Reporting STandard 1- Retirement Bellefirs disclosures
The alual1on of the Superannuation Plan benefits for the purposes of FRS 10 disclosures was based on the
results of the actuanal valuation ~aITlcd out as at 0 1102004 suItably adjusted to ~Onr()m1 to the requirements
of FRS 1- The impact of the penSlOn obligations of benchmarkmg awards due but not vet paid has been
mcluded The financlal assumptions used w calulate the retIrement cbltgatJons under FRS I were as follows
2004 2003
Valuation method Projected Projected Luit Luit
Dicou11l rate ) JlOdeg) )lt50
In118tio11 rale 250deg(1 250middot
Satan 1I1lTeases LO 450deg()
PenSlOll Supplemel1latlon 350l~middott 350o (J
t nhersity Coll(ge Cork gtational Lniversity of Ireland Cork
gtOTpound5 TO THE ACCOlgtTS continued
b Financial ReporrillK Standard 1- Rctircmcnr Bcncfirs discloswc (coltinued)
Th market value of the assets 111 the penSIOn schenk the expected rates of return and the hllgallOns as at 300920(11 togethe WIth the pnor vear arc ShC11 belo
2004 2003 cooo coon
Equities ~ ~5deg iJ 11Q708 800 1~346
Bonds -f ~()(I( 22456 150[0 lfd29
PropertY 65degu ImiddotUP 00( 14330
)Clsh 21 O()~() 2]0
TOW market alue of assets 1GL933 166623
Actual Value of Labilny
PenSlun Deficll
Related deferred tax Iiabiit~
et PellSlOn Llabi hty
Analysis of the amount that would have heen charg(d HI operating profit under FRS 17 is as foil () s
2004 2003 COOO (000
Curren Selce Cost 1710 1
Past SeTyice Cost
Tow Operatmg Charge
Analysis of the amount that would lUlVe been credited to other finance income under FRS]7 is as
follows
2004 2003 (000 COOIl
retum 011 s-heme asct~ 1U104
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
lniHrsiry Colegt Cork alional Cniersity of I relund Cork
COSOLIDATED CASH FLOW STATE]lElT Year Ended 30 September 20(14
et cash outflow from operating activities
Returns on investments and seIleing of finance
expenditure and finanial mcstmem
e( cash outflow befon financing
Fmll1cmg
Decrease in cash in the period
Reconciliation of net cash flow to movement in net fundsdebt
Decrclse in cash m the period
Ctsh (luttlO from mcrease in debt and lease financmg
Change 111 nel debt resultlIlg from cashflows
on ash changes
(lemel1l 111 net debt in period
Cl debt at i October 2003
et ckbt CIt 30 September 2004
otes
24
21104 E()()O
(761)
( 18680
( 390U I
26
26
(341021
(0361)41---shy
lninrsity College Cork ational [niersit~ of Ireland Cork
ons TO THE ACCOCTS
Stale grants 20()4 2003 COOO COOO
)t1 grams allclcatcd for recurrent pllrrO~CS
Thc al-gt( gLlOt mome wa~ neclved from the Higher Educltlon Aulloril anc Ihe DcpanmeIH of J-kJllh amp Chldrell
2 Academic fees 200-1 2003 COOO CO()()
-cadcmic fee inccme
Total fces pale hy o[ on behalf of mdiyidual studems
- lOla ofC5073-lO 2003euro3084g(l23) lIlcluded in aCiJdemic icc income was pJld dIrectly by the lllgher Educalon uthorilY
Research grants and contracts
European Umon InduSlf
Other
-1 Other incollle
Other rental l11C(lme
Funded pClst lIlCOll1t
SlUdent rsidenccs 1OC0111C
Proflt on compulsory iJcqUlsition oj lands Profit on sale of lands Leisure facilitie InCOme
Demal IlOSPlliJl I1come
Other income
= Interest income
Inttres mcome
2()0-1 2U03 fOOO coon
3 i 078 023
3S33
2()0-1 2003 pound000 ClWO
19 ~()~ 3U5
391()
l(1Ci
(I(i
2213 X6(1
2305 2(
laquo242 UOCi
1 Sl i~
200~ 200J COOO COOU
6
tlliwrsi Colle[c Cork arional Lnhersity of Ireland Cork
OTES TO THE ACCOFTS - continued
Staff costs
rh~ 3Crage veekh number of perSClJ1S (mcludlllg senior jwsl-h(ldcrs) emploved by tht
cpresscd as full-urne equlalcm was
reahing and rsearch
TechmcJI
entral adnllnistraIon and serices
Other
Salaries and wages
Social welfare costs
Other pension costs
Other operating expenses
Consumables
BeaL light aler and power
Research consumables
R(palfS and general mailllcnallce
Audn and professional
Rent and rates
Other expenses
Other opcratmg expenses in~1 ude
Auditors remuneraIon
EXlcmal audit
Other seryices fro111 external audit
during the
UH4 umber
201)4
(000
119538
666
14LA7C)
2(1)4
(000
15A7 4 2603
1(L933 376
138 j
L531
2004 [000
cq
IF
2003 umber
1246
63
2003 fO()()
]05379
200] C(lIiO
2003 COOO
jll
1U-
14312
lnhersin Colle~( Cork arional lniversity of Ireland Cork
OTES TO THE ACCOtTS - continued
S Taxation
taXJllOll charge arises as the UlllvCrSll and il~ principal subndJar companies are exempt chantle and are not
hable for corporation tax or mcome tax on any of its charitabk actlvitles
I) Deficit on cOlltinuin~ operations for the year 20(14 2U(J3 [(IOU COOO
The deii-l on continuing operalJons for the vcar is made up a~ flllows
UniC~rslfS deficit for the vear
Surplus generated bv the subsidIary undenakmgs and transferred to the Univcrslt
Total
1
I uinlsity (olltj( (olk ~atiollall illi(rsil~ 01 Irdalltl Cork
NOI ES TO TilE A((OINTS
10 Tal~ihl( fix(d ass(ls
(( )NS()f J lgtAnl)
(0lt1 or valnation
At t ()cohcr200)
Additiotls
At
Is 311 21104
i)epncialioll
At 1 Oct(hcr 2(J03
(I Cd
tl) 2(11)1
Nrl hook aim
t I letobe WOJ
It Ill 211()4
fOlllillll((1
Land alld
hllildill~S
CHon
I 7ti6
57(iY
((l3)
379]
(() Ll
273I1U3
27350X
COIIIJlIII(middotr
(qlliplJI(lIt
(000
2(d~59
i23
1 JJ
2J 425
71 II
1434
4X39
EqllipllltlIl
COOO
iltU172 6+31
30514
9Y)()
20]X8
17331
Assets ill ((HI 1St or
COllstnldioll
ClUW
151)9
54512
109
Total
CIIOO
4IltX() 7Ui7
l) 1Yh2
IlI121
II
312(118
3(1)30
LamJ alld huiltiillll alld cquipnlCllt IIKludc assets valucd in Iljl)4 (In a dCpleCI1tet 1Cj111ccmcllt cosl hasis fL1 1lIOJ()) respectivelY land alld huildillils ami lssel in course (II cOllstructi(lil includes UX]X I IJ(IO
include C 51ltJ07()O() (lOll CJ1)I(lI()()()) in relatioll tn land and tile ACC(1l111tillg Standards Board Iliese land ami
ftilcsc buildillls IS that tlte
( ) nlccr oUTgt nUI(( I (~(() C127721J IO()) and CI 1 IlIeH 10 (2()(3
(11 Ii ecl(1ld Iaml willch is Iwl
The COlllllwlcial ellce of the trallsactiolls Slln
issued lire salv alld ulllllwtc
tll 1he lam] ami
~
--
- -
~
~
~
-
-=
shy
- = shy~
7
=-= -
Z
7 ~
~ - lt shy shy shy
shy
Z shy
Z
r X r
-
r
-= oJ c
= 0 ~
= -~-=
ti= ~
shy = =
~
~
t= Z
~
51
- Z ~ lt
0
r-~
(J n r--ltIoc r-
x
v ~ r l j r1 r- if
rr
T M rlt
r = j
= -j =
C
shy -
~ v ~ ~
shy shy
- - -
-0
lt - lt )
Z lt
1 0 x T x)C
F n ~
0middot1 r1~~
r -
r~
lt
0 lr ~ r1 n(1
l r~
ltj~
tniVCfsiry College Cork ttional Lniversiry of Ireland Cork
OTES TO THE ACC()l]TS - continued
11 Financial assets Consolid ated
2UO-l 2003 ((WO f(lOO
t nhersity 2004 2003
COOO COOO
InnSlInents at the veal end were held as follovs
( lthcr
3450
The investment in the Lmversllv Technology Centre Partnership ha~ been re31ued during the year tc the 3lue 0shythe Llmycrsny share inlhe partnership as at 31 December 2003
The tnhersity held an interest in the following subsidiary undertakings
Subsidhlry undertakings
Incorporated
Propem ianagement (LeC) Limited
Campm ccommOdali(111 C) Limned
Art Gallery (liCC) Limiled
Brcnard Limited
1ardykc LeIsure (U ce) Limited
At Ie Press Limited
(iivlC Holding~ Limlled
11 Stocks
Consumables
FIlllshed goods for resale
Prindplil activity
Property development
Accommodation rcntal
11 gallery
Leasing or lands
PublIshing
Dornnnt
Interest 0 0
J00
100
100
100
1(lOo
Consolidated
2004 2003 COOO (0110
65
Registered officeplace of business
City Chamhers 4
Cork
limversl1Y Cork Aestern Road Cork University Cork Vestern Road Cork University College Cork Western Road Cork liniversiry College Cork Western Road Cork Crawford Business Park Crosses Green Cork St Kildas Western Road Cork
Clliversity
O()4 2001 [(lOU COOO
36
fhere io no malcnal difference between the balance sheet amount of slOcks and Its replacement cost
13 Debtors
Trad- debtors
Res-arh grants and colllraCls receiabk
nwunts due from suhsldmrv undertakings
Slale gr~ml reciabk
(lther tJJtWIl and s(lcial Illsurancc
Other deotiJrs
C ollsolida ted Llliycrsif
2(104 2003 2004 200 [000 COOO COOO f(I00
S34 -Li06 67U
601 753 6015 j J0(
1~S26 766 12S~6
11 -- 3 f~ 51 t
lJ
~ q()l --l12(j( ~ ~
CnhlIsit~ College Cork ationallniersity of Ireland Cork
OTES TO THE CCOCTS - continued
1-1 Creditors Amounts fallillg due within Dill year Consolidated lnjyersit~
20114 2003 2004 2003 COOO COOO [000 C(lOU
Trad rcdjtor~ 7501 Cl295 (702
Research grants and contracts III advance I(i5 5 1150i 1U5~ -cademic fee~ receied in advance 11(1()4 QOM 110CJ4 ()01gt4
State grant receied m advance 118 I 1535 513~ Bank loans 8 overdrafts (note 16) 3O 39 416 1606 333~
Amounts owed to subsidiary undenakmgs -113 4SS~
Other taxatIOn and SOCIal security -+394 0 41 42()9 SAl (i
Deftrred incJll1e 19(3 9131
Other creditors 8 accruals lOOARA R9~~
15 Creditors Amounts falling due after one year Consolidated linivcrsi t)
200-1 2003 2004 20U3 ((lOO COOO (000 COOO
Bank loans (note 16) ~ 1 - -_-
16 Borrowings Consolidated University
2004 2003 2004 2003 (000 (000 fOOO (IOU
Bank loans and overdrafts
Bank loan and oerdrafts are repayable as follows
III one year or less 3073Q 41 6 8606 33~
O~(Between one and twe veal 221 1693 1ampshy
Between two ard 11 H years 872 (i 104 604Q 3+05
In fiC y~ar or more
TCHal 6360 1 3400( I ~~ ~
ature and Securiry of Borrowings stated tn Note 10 F1Xed Assets hae been accounted for in accordance with FRS 5 The ab[)vc liabilIl16 represent the uhimate lwbilitie to repurchase the assct~ concerned The borrowJI1gs arc secured bv title until the repurchae takes place
lniYlrsit Colleu ( Cork -ational lniversity of Ireland Cork
-OTES TO THE ACCOCTS - continued
1~ Deferred capital grants HEA
COOO
Other grants and
benefactors (000
Total
COOO
C olsolida ted
At 1 October 2003
BuJldmg~
EJuipment
Tota
414 45677 8-31
Cash received Buildmg
Equipment
Tolal
b53-l 153~5 -l U59
Released to income and expenditure
Buildmgs
Equipment
TClaj
1449 )
~
9~3
1-1 ---
) iii _) shy
1L~~~
At 3() Septemher 20()t
B u ild 1111
Equipmem
T pta I
66639
7(91
600 i 9
-09A
I 6-] ~
14UltC)
l ni(~rsit C olieo ( Cork arional Cnhersity of Ireland Cork
OTES TO THE ACCOl1TS - continued
1i Deferred capital grants continued HEA
(non
t niersity
At 1 October 21Hl3
B uil dlllb
Eqmpmem
Total
Cash received
Buddmggt EqUIpment
TOla
Released to income and expenditur( 1 1 7Buildmg )
Equipmcl1l
Total )S3
At 30 September 200
Buildll1g~ 61324
EqUlpmcm Tora (~=5
IS Revaluation reser( Consolidated
2004 2003 (lOO ((lOU
At 1 October as pcr nOle 10) 135940
Reuluatlons or inesrmerm in the penod InOle I 1
t W Serlember
Other gran IS Total and
henefactors (000 COOO
3515 -=37(J
81 2149
4465 7i ~
XXh(1
51627 112951
~65(1
6()
Lnjcrsity 200 20()3
f ono C 000
35040
lniYcrsiry Collegl Cork iarional Llliycrsit~ of Ireland Cork
iOTES TO THE ACCOl1TS - continued
1(J Reconciliation of movcment of reservcs Revenue Revaluation Total reserves reserves
COOO pound1000 ooo
Consolidattd
1 I October 211(0shy 6]90
D(bcll on comlllumg l)perations revaluation
I ( Septemher 20(14
middott I Octoher 2003 13940 126241
Deficll or eommumg operations revaluation
3( September 2004 1RR~]
W Contingencies
The U11lversil from tIme ll time is party to yariow legal proceedings The Offieers of the University havc been mlormed hy then legal advisors that it is not possibie at this time to make a rellable estimme of the finanCIal effects (if an~l of tiles cases
t 3( September 2004 a cO1ll1gent lIabIlity existed in respect of potential Value Added Tax in the amoum of C2 rmbon together with substantial potential imeresl and penalties This potentIa] habilItv was setllc~d in January 006 at a lesser amount and the effect on the Income and Expenditure -ecount is no material
21 Capital commitments Consolidatcd Univcrsity
2004 2003 2004 2003 (000 (000 COOO (000
Comracted for but nO promiddotided 69143
Authorised but not omracted out 18304 i 49]Q
tninrsity College Cork ationa lniversity of Ireland Cork
OTES TO THE AccorTS - (ontillucmiddotd
Reconciliation of consolidated operating deficit to net cash outflow from operating activities
Dilcit on conlJnuing operalJons afier depreciation of assets at valuatlOn Dcpr(clat10n D~fcfT(d apital grants released W income Proiit on dIsposal of tangible fixed as~ets D~rcase m stocks Increase m debtors
Drcflse m creditors
on cash changes lmerest receivable Imerest em Iiabiliy 10 Investors under FRS Increase m invcstment aluation
et cash outflow from opernt1l1g aClivilJes
23 Returns on inwstments and servicing of finance
Other lterest received Interes paid on habihty to investors under FRSS
ct cash inGow from returns on lllvestments and senlcing of finance
24 Capital expenditure and financial illYestment
iurh3se of tangible fixed assets Sak of tangible fixed assets (see note 10) Deferred capnal grants receIved
Net cash outflow from capital expendllure and finanClallllestmcm
2()l4
CIIOO
12(46) 1C) ~ 21
( 11253 ) (64 0 )
(]3006) f~(24)
15 (3011 11)62
11
( 14 361
2004 (000
301 ( 1(1621
7611
2004 C()(l()
S57 70(1
SC)4T
ISoRO
lniversit~ College Cork arional tniversity of Ireland Cork
OTES TO THE ACCOCTS - continued
15 Financing 200-1 (000
Dht due within ant year Drclse 111 shon term hononn~
Dent due lyand one year Increase in long tenl1 borw1I1g
1et -ash inflow frorr financing
26 nalsis of changes in net debt At CashOows Other At I October Non cash 30 September
2003 changes 2004 POOH (000 POOO COOO
C~sh 111 hand and at hank 5 3 9Z l)vcrdrafts
539( (21)5021
Deht due within I year (-US6) 1C)[9 (~37)
Debt due after J vear 62R) (19) (7241 Llabilll to invctors under FRS (125) (24231 i
125 163f()4iTCltal
27 Related parties
Transactions Jh suhsidlanes of the UlllversllY have been eillninated on consdidauon and 11(1 disclosure or these transactIOn has therefore been gIven The Lnlerslty had the following transactIOns with related panics on 1 DeCember 1995 Irish Universitl Student Trust entered into a twent five year lease or AnlS 113 Mac Lemn from Lmverslty College Cork at an annual rental dE44A4J pel annum The trustees oflnsh UnirSH Studem Trust are the PrerdenL Secreta and Bursar and Fllance Officer elf ljmvcrsll Cork
l ninrsit College Cork ationaJ lininrsit~ of Ireland Cork
OTES TO THE ACC01T5 - COli tinned
8 Pcnsions
3 ~ PenSIon for substantiaEy all employees are funded through a defined henefit pension schemelt
The lniwrsl oper3tes a defined henefit penSlOll scheme wllh assets held 111 a separately admmlstered fund The total pension cost w the UniversHy ltas f14J)-4 Q 4J (2003 f12(J]-~13L The Illost recen uctuanul
aluation as undenaken as at 1 Octoher 2004 hy consuting actuanes uS1l1g the attained age methodlt The
princIpal assumptIon used in the actuarial valuatlOn was that the long-term annual rale of return on 1I1vestment would exceedtbe mcrease 111 pensionable earnIngs by 2) The 1ens1On and Trust Funds are not included 1I1
the Balance Sheet hecause they arc funds w1111 a separate COHSlltu1l0n from the general assets and ltabilJtie~ of the t11lerSlllaquo
t the date of tbe last actuaria I valuation the market aluc of the scheme s assets was sufTiclCl1t to cover 9lt
of the accrued liabilitleslt based on currcnt eammgs and also allowlllg for expected future mcreascs m eammgslt
The ul1lversny also operates a defmed contributIon penslOn scheme that covers cenain empl(1yees of the
ul11ersirvlt The assets of the scheme are invested by independent trustees for the benefit of these emplovees
ContributIOns to tim pension scheme for the year amounted to C02(il15 (2003 fJ A4F788I
b Financial Reporting STandard 1- Retirement Bellefirs disclosures
The alual1on of the Superannuation Plan benefits for the purposes of FRS 10 disclosures was based on the
results of the actuanal valuation ~aITlcd out as at 0 1102004 suItably adjusted to ~Onr()m1 to the requirements
of FRS 1- The impact of the penSlOn obligations of benchmarkmg awards due but not vet paid has been
mcluded The financlal assumptions used w calulate the retIrement cbltgatJons under FRS I were as follows
2004 2003
Valuation method Projected Projected Luit Luit
Dicou11l rate ) JlOdeg) )lt50
In118tio11 rale 250deg(1 250middot
Satan 1I1lTeases LO 450deg()
PenSlOll Supplemel1latlon 350l~middott 350o (J
t nhersity Coll(ge Cork gtational Lniversity of Ireland Cork
gtOTpound5 TO THE ACCOlgtTS continued
b Financial ReporrillK Standard 1- Rctircmcnr Bcncfirs discloswc (coltinued)
Th market value of the assets 111 the penSIOn schenk the expected rates of return and the hllgallOns as at 300920(11 togethe WIth the pnor vear arc ShC11 belo
2004 2003 cooo coon
Equities ~ ~5deg iJ 11Q708 800 1~346
Bonds -f ~()(I( 22456 150[0 lfd29
PropertY 65degu ImiddotUP 00( 14330
)Clsh 21 O()~() 2]0
TOW market alue of assets 1GL933 166623
Actual Value of Labilny
PenSlun Deficll
Related deferred tax Iiabiit~
et PellSlOn Llabi hty
Analysis of the amount that would have heen charg(d HI operating profit under FRS 17 is as foil () s
2004 2003 COOO (000
Curren Selce Cost 1710 1
Past SeTyice Cost
Tow Operatmg Charge
Analysis of the amount that would lUlVe been credited to other finance income under FRS]7 is as
follows
2004 2003 (000 COOIl
retum 011 s-heme asct~ 1U104
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
lninrsity College Cork ational [niersit~ of Ireland Cork
ons TO THE ACCOCTS
Stale grants 20()4 2003 COOO COOO
)t1 grams allclcatcd for recurrent pllrrO~CS
Thc al-gt( gLlOt mome wa~ neclved from the Higher Educltlon Aulloril anc Ihe DcpanmeIH of J-kJllh amp Chldrell
2 Academic fees 200-1 2003 COOO CO()()
-cadcmic fee inccme
Total fces pale hy o[ on behalf of mdiyidual studems
- lOla ofC5073-lO 2003euro3084g(l23) lIlcluded in aCiJdemic icc income was pJld dIrectly by the lllgher Educalon uthorilY
Research grants and contracts
European Umon InduSlf
Other
-1 Other incollle
Other rental l11C(lme
Funded pClst lIlCOll1t
SlUdent rsidenccs 1OC0111C
Proflt on compulsory iJcqUlsition oj lands Profit on sale of lands Leisure facilitie InCOme
Demal IlOSPlliJl I1come
Other income
= Interest income
Inttres mcome
2()0-1 2U03 fOOO coon
3 i 078 023
3S33
2()0-1 2003 pound000 ClWO
19 ~()~ 3U5
391()
l(1Ci
(I(i
2213 X6(1
2305 2(
laquo242 UOCi
1 Sl i~
200~ 200J COOO COOU
6
tlliwrsi Colle[c Cork arional Lnhersity of Ireland Cork
OTES TO THE ACCOFTS - continued
Staff costs
rh~ 3Crage veekh number of perSClJ1S (mcludlllg senior jwsl-h(ldcrs) emploved by tht
cpresscd as full-urne equlalcm was
reahing and rsearch
TechmcJI
entral adnllnistraIon and serices
Other
Salaries and wages
Social welfare costs
Other pension costs
Other operating expenses
Consumables
BeaL light aler and power
Research consumables
R(palfS and general mailllcnallce
Audn and professional
Rent and rates
Other expenses
Other opcratmg expenses in~1 ude
Auditors remuneraIon
EXlcmal audit
Other seryices fro111 external audit
during the
UH4 umber
201)4
(000
119538
666
14LA7C)
2(1)4
(000
15A7 4 2603
1(L933 376
138 j
L531
2004 [000
cq
IF
2003 umber
1246
63
2003 fO()()
]05379
200] C(lIiO
2003 COOO
jll
1U-
14312
lnhersin Colle~( Cork arional lniversity of Ireland Cork
OTES TO THE ACCOtTS - continued
S Taxation
taXJllOll charge arises as the UlllvCrSll and il~ principal subndJar companies are exempt chantle and are not
hable for corporation tax or mcome tax on any of its charitabk actlvitles
I) Deficit on cOlltinuin~ operations for the year 20(14 2U(J3 [(IOU COOO
The deii-l on continuing operalJons for the vcar is made up a~ flllows
UniC~rslfS deficit for the vear
Surplus generated bv the subsidIary undenakmgs and transferred to the Univcrslt
Total
1
I uinlsity (olltj( (olk ~atiollall illi(rsil~ 01 Irdalltl Cork
NOI ES TO TilE A((OINTS
10 Tal~ihl( fix(d ass(ls
(( )NS()f J lgtAnl)
(0lt1 or valnation
At t ()cohcr200)
Additiotls
At
Is 311 21104
i)epncialioll
At 1 Oct(hcr 2(J03
(I Cd
tl) 2(11)1
Nrl hook aim
t I letobe WOJ
It Ill 211()4
fOlllillll((1
Land alld
hllildill~S
CHon
I 7ti6
57(iY
((l3)
379]
(() Ll
273I1U3
27350X
COIIIJlIII(middotr
(qlliplJI(lIt
(000
2(d~59
i23
1 JJ
2J 425
71 II
1434
4X39
EqllipllltlIl
COOO
iltU172 6+31
30514
9Y)()
20]X8
17331
Assets ill ((HI 1St or
COllstnldioll
ClUW
151)9
54512
109
Total
CIIOO
4IltX() 7Ui7
l) 1Yh2
IlI121
II
312(118
3(1)30
LamJ alld huiltiillll alld cquipnlCllt IIKludc assets valucd in Iljl)4 (In a dCpleCI1tet 1Cj111ccmcllt cosl hasis fL1 1lIOJ()) respectivelY land alld huildillils ami lssel in course (II cOllstructi(lil includes UX]X I IJ(IO
include C 51ltJ07()O() (lOll CJ1)I(lI()()()) in relatioll tn land and tile ACC(1l111tillg Standards Board Iliese land ami
ftilcsc buildillls IS that tlte
( ) nlccr oUTgt nUI(( I (~(() C127721J IO()) and CI 1 IlIeH 10 (2()(3
(11 Ii ecl(1ld Iaml willch is Iwl
The COlllllwlcial ellce of the trallsactiolls Slln
issued lire salv alld ulllllwtc
tll 1he lam] ami
~
--
- -
~
~
~
-
-=
shy
- = shy~
7
=-= -
Z
7 ~
~ - lt shy shy shy
shy
Z shy
Z
r X r
-
r
-= oJ c
= 0 ~
= -~-=
ti= ~
shy = =
~
~
t= Z
~
51
- Z ~ lt
0
r-~
(J n r--ltIoc r-
x
v ~ r l j r1 r- if
rr
T M rlt
r = j
= -j =
C
shy -
~ v ~ ~
shy shy
- - -
-0
lt - lt )
Z lt
1 0 x T x)C
F n ~
0middot1 r1~~
r -
r~
lt
0 lr ~ r1 n(1
l r~
ltj~
tniVCfsiry College Cork ttional Lniversiry of Ireland Cork
OTES TO THE ACC()l]TS - continued
11 Financial assets Consolid ated
2UO-l 2003 ((WO f(lOO
t nhersity 2004 2003
COOO COOO
InnSlInents at the veal end were held as follovs
( lthcr
3450
The investment in the Lmversllv Technology Centre Partnership ha~ been re31ued during the year tc the 3lue 0shythe Llmycrsny share inlhe partnership as at 31 December 2003
The tnhersity held an interest in the following subsidiary undertakings
Subsidhlry undertakings
Incorporated
Propem ianagement (LeC) Limited
Campm ccommOdali(111 C) Limned
Art Gallery (liCC) Limiled
Brcnard Limited
1ardykc LeIsure (U ce) Limited
At Ie Press Limited
(iivlC Holding~ Limlled
11 Stocks
Consumables
FIlllshed goods for resale
Prindplil activity
Property development
Accommodation rcntal
11 gallery
Leasing or lands
PublIshing
Dornnnt
Interest 0 0
J00
100
100
100
1(lOo
Consolidated
2004 2003 COOO (0110
65
Registered officeplace of business
City Chamhers 4
Cork
limversl1Y Cork Aestern Road Cork University Cork Vestern Road Cork University College Cork Western Road Cork liniversiry College Cork Western Road Cork Crawford Business Park Crosses Green Cork St Kildas Western Road Cork
Clliversity
O()4 2001 [(lOU COOO
36
fhere io no malcnal difference between the balance sheet amount of slOcks and Its replacement cost
13 Debtors
Trad- debtors
Res-arh grants and colllraCls receiabk
nwunts due from suhsldmrv undertakings
Slale gr~ml reciabk
(lther tJJtWIl and s(lcial Illsurancc
Other deotiJrs
C ollsolida ted Llliycrsif
2(104 2003 2004 200 [000 COOO COOO f(I00
S34 -Li06 67U
601 753 6015 j J0(
1~S26 766 12S~6
11 -- 3 f~ 51 t
lJ
~ q()l --l12(j( ~ ~
CnhlIsit~ College Cork ationallniersity of Ireland Cork
OTES TO THE CCOCTS - continued
1-1 Creditors Amounts fallillg due within Dill year Consolidated lnjyersit~
20114 2003 2004 2003 COOO COOO [000 C(lOU
Trad rcdjtor~ 7501 Cl295 (702
Research grants and contracts III advance I(i5 5 1150i 1U5~ -cademic fee~ receied in advance 11(1()4 QOM 110CJ4 ()01gt4
State grant receied m advance 118 I 1535 513~ Bank loans 8 overdrafts (note 16) 3O 39 416 1606 333~
Amounts owed to subsidiary undenakmgs -113 4SS~
Other taxatIOn and SOCIal security -+394 0 41 42()9 SAl (i
Deftrred incJll1e 19(3 9131
Other creditors 8 accruals lOOARA R9~~
15 Creditors Amounts falling due after one year Consolidated linivcrsi t)
200-1 2003 2004 20U3 ((lOO COOO (000 COOO
Bank loans (note 16) ~ 1 - -_-
16 Borrowings Consolidated University
2004 2003 2004 2003 (000 (000 fOOO (IOU
Bank loans and overdrafts
Bank loan and oerdrafts are repayable as follows
III one year or less 3073Q 41 6 8606 33~
O~(Between one and twe veal 221 1693 1ampshy
Between two ard 11 H years 872 (i 104 604Q 3+05
In fiC y~ar or more
TCHal 6360 1 3400( I ~~ ~
ature and Securiry of Borrowings stated tn Note 10 F1Xed Assets hae been accounted for in accordance with FRS 5 The ab[)vc liabilIl16 represent the uhimate lwbilitie to repurchase the assct~ concerned The borrowJI1gs arc secured bv title until the repurchae takes place
lniYlrsit Colleu ( Cork -ational lniversity of Ireland Cork
-OTES TO THE ACCOCTS - continued
1~ Deferred capital grants HEA
COOO
Other grants and
benefactors (000
Total
COOO
C olsolida ted
At 1 October 2003
BuJldmg~
EJuipment
Tota
414 45677 8-31
Cash received Buildmg
Equipment
Tolal
b53-l 153~5 -l U59
Released to income and expenditure
Buildmgs
Equipment
TClaj
1449 )
~
9~3
1-1 ---
) iii _) shy
1L~~~
At 3() Septemher 20()t
B u ild 1111
Equipmem
T pta I
66639
7(91
600 i 9
-09A
I 6-] ~
14UltC)
l ni(~rsit C olieo ( Cork arional Cnhersity of Ireland Cork
OTES TO THE ACCOl1TS - continued
1i Deferred capital grants continued HEA
(non
t niersity
At 1 October 21Hl3
B uil dlllb
Eqmpmem
Total
Cash received
Buddmggt EqUIpment
TOla
Released to income and expenditur( 1 1 7Buildmg )
Equipmcl1l
Total )S3
At 30 September 200
Buildll1g~ 61324
EqUlpmcm Tora (~=5
IS Revaluation reser( Consolidated
2004 2003 (lOO ((lOU
At 1 October as pcr nOle 10) 135940
Reuluatlons or inesrmerm in the penod InOle I 1
t W Serlember
Other gran IS Total and
henefactors (000 COOO
3515 -=37(J
81 2149
4465 7i ~
XXh(1
51627 112951
~65(1
6()
Lnjcrsity 200 20()3
f ono C 000
35040
lniYcrsiry Collegl Cork iarional Llliycrsit~ of Ireland Cork
iOTES TO THE ACCOl1TS - continued
1(J Reconciliation of movcment of reservcs Revenue Revaluation Total reserves reserves
COOO pound1000 ooo
Consolidattd
1 I October 211(0shy 6]90
D(bcll on comlllumg l)perations revaluation
I ( Septemher 20(14
middott I Octoher 2003 13940 126241
Deficll or eommumg operations revaluation
3( September 2004 1RR~]
W Contingencies
The U11lversil from tIme ll time is party to yariow legal proceedings The Offieers of the University havc been mlormed hy then legal advisors that it is not possibie at this time to make a rellable estimme of the finanCIal effects (if an~l of tiles cases
t 3( September 2004 a cO1ll1gent lIabIlity existed in respect of potential Value Added Tax in the amoum of C2 rmbon together with substantial potential imeresl and penalties This potentIa] habilItv was setllc~d in January 006 at a lesser amount and the effect on the Income and Expenditure -ecount is no material
21 Capital commitments Consolidatcd Univcrsity
2004 2003 2004 2003 (000 (000 COOO (000
Comracted for but nO promiddotided 69143
Authorised but not omracted out 18304 i 49]Q
tninrsity College Cork ationa lniversity of Ireland Cork
OTES TO THE AccorTS - (ontillucmiddotd
Reconciliation of consolidated operating deficit to net cash outflow from operating activities
Dilcit on conlJnuing operalJons afier depreciation of assets at valuatlOn Dcpr(clat10n D~fcfT(d apital grants released W income Proiit on dIsposal of tangible fixed as~ets D~rcase m stocks Increase m debtors
Drcflse m creditors
on cash changes lmerest receivable Imerest em Iiabiliy 10 Investors under FRS Increase m invcstment aluation
et cash outflow from opernt1l1g aClivilJes
23 Returns on inwstments and servicing of finance
Other lterest received Interes paid on habihty to investors under FRSS
ct cash inGow from returns on lllvestments and senlcing of finance
24 Capital expenditure and financial illYestment
iurh3se of tangible fixed assets Sak of tangible fixed assets (see note 10) Deferred capnal grants receIved
Net cash outflow from capital expendllure and finanClallllestmcm
2()l4
CIIOO
12(46) 1C) ~ 21
( 11253 ) (64 0 )
(]3006) f~(24)
15 (3011 11)62
11
( 14 361
2004 (000
301 ( 1(1621
7611
2004 C()(l()
S57 70(1
SC)4T
ISoRO
lniversit~ College Cork arional tniversity of Ireland Cork
OTES TO THE ACCOCTS - continued
15 Financing 200-1 (000
Dht due within ant year Drclse 111 shon term hononn~
Dent due lyand one year Increase in long tenl1 borw1I1g
1et -ash inflow frorr financing
26 nalsis of changes in net debt At CashOows Other At I October Non cash 30 September
2003 changes 2004 POOH (000 POOO COOO
C~sh 111 hand and at hank 5 3 9Z l)vcrdrafts
539( (21)5021
Deht due within I year (-US6) 1C)[9 (~37)
Debt due after J vear 62R) (19) (7241 Llabilll to invctors under FRS (125) (24231 i
125 163f()4iTCltal
27 Related parties
Transactions Jh suhsidlanes of the UlllversllY have been eillninated on consdidauon and 11(1 disclosure or these transactIOn has therefore been gIven The Lnlerslty had the following transactIOns with related panics on 1 DeCember 1995 Irish Universitl Student Trust entered into a twent five year lease or AnlS 113 Mac Lemn from Lmverslty College Cork at an annual rental dE44A4J pel annum The trustees oflnsh UnirSH Studem Trust are the PrerdenL Secreta and Bursar and Fllance Officer elf ljmvcrsll Cork
l ninrsit College Cork ationaJ lininrsit~ of Ireland Cork
OTES TO THE ACC01T5 - COli tinned
8 Pcnsions
3 ~ PenSIon for substantiaEy all employees are funded through a defined henefit pension schemelt
The lniwrsl oper3tes a defined henefit penSlOll scheme wllh assets held 111 a separately admmlstered fund The total pension cost w the UniversHy ltas f14J)-4 Q 4J (2003 f12(J]-~13L The Illost recen uctuanul
aluation as undenaken as at 1 Octoher 2004 hy consuting actuanes uS1l1g the attained age methodlt The
princIpal assumptIon used in the actuarial valuatlOn was that the long-term annual rale of return on 1I1vestment would exceedtbe mcrease 111 pensionable earnIngs by 2) The 1ens1On and Trust Funds are not included 1I1
the Balance Sheet hecause they arc funds w1111 a separate COHSlltu1l0n from the general assets and ltabilJtie~ of the t11lerSlllaquo
t the date of tbe last actuaria I valuation the market aluc of the scheme s assets was sufTiclCl1t to cover 9lt
of the accrued liabilitleslt based on currcnt eammgs and also allowlllg for expected future mcreascs m eammgslt
The ul1lversny also operates a defmed contributIon penslOn scheme that covers cenain empl(1yees of the
ul11ersirvlt The assets of the scheme are invested by independent trustees for the benefit of these emplovees
ContributIOns to tim pension scheme for the year amounted to C02(il15 (2003 fJ A4F788I
b Financial Reporting STandard 1- Retirement Bellefirs disclosures
The alual1on of the Superannuation Plan benefits for the purposes of FRS 10 disclosures was based on the
results of the actuanal valuation ~aITlcd out as at 0 1102004 suItably adjusted to ~Onr()m1 to the requirements
of FRS 1- The impact of the penSlOn obligations of benchmarkmg awards due but not vet paid has been
mcluded The financlal assumptions used w calulate the retIrement cbltgatJons under FRS I were as follows
2004 2003
Valuation method Projected Projected Luit Luit
Dicou11l rate ) JlOdeg) )lt50
In118tio11 rale 250deg(1 250middot
Satan 1I1lTeases LO 450deg()
PenSlOll Supplemel1latlon 350l~middott 350o (J
t nhersity Coll(ge Cork gtational Lniversity of Ireland Cork
gtOTpound5 TO THE ACCOlgtTS continued
b Financial ReporrillK Standard 1- Rctircmcnr Bcncfirs discloswc (coltinued)
Th market value of the assets 111 the penSIOn schenk the expected rates of return and the hllgallOns as at 300920(11 togethe WIth the pnor vear arc ShC11 belo
2004 2003 cooo coon
Equities ~ ~5deg iJ 11Q708 800 1~346
Bonds -f ~()(I( 22456 150[0 lfd29
PropertY 65degu ImiddotUP 00( 14330
)Clsh 21 O()~() 2]0
TOW market alue of assets 1GL933 166623
Actual Value of Labilny
PenSlun Deficll
Related deferred tax Iiabiit~
et PellSlOn Llabi hty
Analysis of the amount that would have heen charg(d HI operating profit under FRS 17 is as foil () s
2004 2003 COOO (000
Curren Selce Cost 1710 1
Past SeTyice Cost
Tow Operatmg Charge
Analysis of the amount that would lUlVe been credited to other finance income under FRS]7 is as
follows
2004 2003 (000 COOIl
retum 011 s-heme asct~ 1U104
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
6
tlliwrsi Colle[c Cork arional Lnhersity of Ireland Cork
OTES TO THE ACCOFTS - continued
Staff costs
rh~ 3Crage veekh number of perSClJ1S (mcludlllg senior jwsl-h(ldcrs) emploved by tht
cpresscd as full-urne equlalcm was
reahing and rsearch
TechmcJI
entral adnllnistraIon and serices
Other
Salaries and wages
Social welfare costs
Other pension costs
Other operating expenses
Consumables
BeaL light aler and power
Research consumables
R(palfS and general mailllcnallce
Audn and professional
Rent and rates
Other expenses
Other opcratmg expenses in~1 ude
Auditors remuneraIon
EXlcmal audit
Other seryices fro111 external audit
during the
UH4 umber
201)4
(000
119538
666
14LA7C)
2(1)4
(000
15A7 4 2603
1(L933 376
138 j
L531
2004 [000
cq
IF
2003 umber
1246
63
2003 fO()()
]05379
200] C(lIiO
2003 COOO
jll
1U-
14312
lnhersin Colle~( Cork arional lniversity of Ireland Cork
OTES TO THE ACCOtTS - continued
S Taxation
taXJllOll charge arises as the UlllvCrSll and il~ principal subndJar companies are exempt chantle and are not
hable for corporation tax or mcome tax on any of its charitabk actlvitles
I) Deficit on cOlltinuin~ operations for the year 20(14 2U(J3 [(IOU COOO
The deii-l on continuing operalJons for the vcar is made up a~ flllows
UniC~rslfS deficit for the vear
Surplus generated bv the subsidIary undenakmgs and transferred to the Univcrslt
Total
1
I uinlsity (olltj( (olk ~atiollall illi(rsil~ 01 Irdalltl Cork
NOI ES TO TilE A((OINTS
10 Tal~ihl( fix(d ass(ls
(( )NS()f J lgtAnl)
(0lt1 or valnation
At t ()cohcr200)
Additiotls
At
Is 311 21104
i)epncialioll
At 1 Oct(hcr 2(J03
(I Cd
tl) 2(11)1
Nrl hook aim
t I letobe WOJ
It Ill 211()4
fOlllillll((1
Land alld
hllildill~S
CHon
I 7ti6
57(iY
((l3)
379]
(() Ll
273I1U3
27350X
COIIIJlIII(middotr
(qlliplJI(lIt
(000
2(d~59
i23
1 JJ
2J 425
71 II
1434
4X39
EqllipllltlIl
COOO
iltU172 6+31
30514
9Y)()
20]X8
17331
Assets ill ((HI 1St or
COllstnldioll
ClUW
151)9
54512
109
Total
CIIOO
4IltX() 7Ui7
l) 1Yh2
IlI121
II
312(118
3(1)30
LamJ alld huiltiillll alld cquipnlCllt IIKludc assets valucd in Iljl)4 (In a dCpleCI1tet 1Cj111ccmcllt cosl hasis fL1 1lIOJ()) respectivelY land alld huildillils ami lssel in course (II cOllstructi(lil includes UX]X I IJ(IO
include C 51ltJ07()O() (lOll CJ1)I(lI()()()) in relatioll tn land and tile ACC(1l111tillg Standards Board Iliese land ami
ftilcsc buildillls IS that tlte
( ) nlccr oUTgt nUI(( I (~(() C127721J IO()) and CI 1 IlIeH 10 (2()(3
(11 Ii ecl(1ld Iaml willch is Iwl
The COlllllwlcial ellce of the trallsactiolls Slln
issued lire salv alld ulllllwtc
tll 1he lam] ami
~
--
- -
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~
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-
-=
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- = shy~
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=-= -
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~ - lt shy shy shy
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r X r
-
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-= oJ c
= 0 ~
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ti= ~
shy = =
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t= Z
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51
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r-~
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v ~ r l j r1 r- if
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T M rlt
r = j
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shy -
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- - -
-0
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1 0 x T x)C
F n ~
0middot1 r1~~
r -
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0 lr ~ r1 n(1
l r~
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tniVCfsiry College Cork ttional Lniversiry of Ireland Cork
OTES TO THE ACC()l]TS - continued
11 Financial assets Consolid ated
2UO-l 2003 ((WO f(lOO
t nhersity 2004 2003
COOO COOO
InnSlInents at the veal end were held as follovs
( lthcr
3450
The investment in the Lmversllv Technology Centre Partnership ha~ been re31ued during the year tc the 3lue 0shythe Llmycrsny share inlhe partnership as at 31 December 2003
The tnhersity held an interest in the following subsidiary undertakings
Subsidhlry undertakings
Incorporated
Propem ianagement (LeC) Limited
Campm ccommOdali(111 C) Limned
Art Gallery (liCC) Limiled
Brcnard Limited
1ardykc LeIsure (U ce) Limited
At Ie Press Limited
(iivlC Holding~ Limlled
11 Stocks
Consumables
FIlllshed goods for resale
Prindplil activity
Property development
Accommodation rcntal
11 gallery
Leasing or lands
PublIshing
Dornnnt
Interest 0 0
J00
100
100
100
1(lOo
Consolidated
2004 2003 COOO (0110
65
Registered officeplace of business
City Chamhers 4
Cork
limversl1Y Cork Aestern Road Cork University Cork Vestern Road Cork University College Cork Western Road Cork liniversiry College Cork Western Road Cork Crawford Business Park Crosses Green Cork St Kildas Western Road Cork
Clliversity
O()4 2001 [(lOU COOO
36
fhere io no malcnal difference between the balance sheet amount of slOcks and Its replacement cost
13 Debtors
Trad- debtors
Res-arh grants and colllraCls receiabk
nwunts due from suhsldmrv undertakings
Slale gr~ml reciabk
(lther tJJtWIl and s(lcial Illsurancc
Other deotiJrs
C ollsolida ted Llliycrsif
2(104 2003 2004 200 [000 COOO COOO f(I00
S34 -Li06 67U
601 753 6015 j J0(
1~S26 766 12S~6
11 -- 3 f~ 51 t
lJ
~ q()l --l12(j( ~ ~
CnhlIsit~ College Cork ationallniersity of Ireland Cork
OTES TO THE CCOCTS - continued
1-1 Creditors Amounts fallillg due within Dill year Consolidated lnjyersit~
20114 2003 2004 2003 COOO COOO [000 C(lOU
Trad rcdjtor~ 7501 Cl295 (702
Research grants and contracts III advance I(i5 5 1150i 1U5~ -cademic fee~ receied in advance 11(1()4 QOM 110CJ4 ()01gt4
State grant receied m advance 118 I 1535 513~ Bank loans 8 overdrafts (note 16) 3O 39 416 1606 333~
Amounts owed to subsidiary undenakmgs -113 4SS~
Other taxatIOn and SOCIal security -+394 0 41 42()9 SAl (i
Deftrred incJll1e 19(3 9131
Other creditors 8 accruals lOOARA R9~~
15 Creditors Amounts falling due after one year Consolidated linivcrsi t)
200-1 2003 2004 20U3 ((lOO COOO (000 COOO
Bank loans (note 16) ~ 1 - -_-
16 Borrowings Consolidated University
2004 2003 2004 2003 (000 (000 fOOO (IOU
Bank loans and overdrafts
Bank loan and oerdrafts are repayable as follows
III one year or less 3073Q 41 6 8606 33~
O~(Between one and twe veal 221 1693 1ampshy
Between two ard 11 H years 872 (i 104 604Q 3+05
In fiC y~ar or more
TCHal 6360 1 3400( I ~~ ~
ature and Securiry of Borrowings stated tn Note 10 F1Xed Assets hae been accounted for in accordance with FRS 5 The ab[)vc liabilIl16 represent the uhimate lwbilitie to repurchase the assct~ concerned The borrowJI1gs arc secured bv title until the repurchae takes place
lniYlrsit Colleu ( Cork -ational lniversity of Ireland Cork
-OTES TO THE ACCOCTS - continued
1~ Deferred capital grants HEA
COOO
Other grants and
benefactors (000
Total
COOO
C olsolida ted
At 1 October 2003
BuJldmg~
EJuipment
Tota
414 45677 8-31
Cash received Buildmg
Equipment
Tolal
b53-l 153~5 -l U59
Released to income and expenditure
Buildmgs
Equipment
TClaj
1449 )
~
9~3
1-1 ---
) iii _) shy
1L~~~
At 3() Septemher 20()t
B u ild 1111
Equipmem
T pta I
66639
7(91
600 i 9
-09A
I 6-] ~
14UltC)
l ni(~rsit C olieo ( Cork arional Cnhersity of Ireland Cork
OTES TO THE ACCOl1TS - continued
1i Deferred capital grants continued HEA
(non
t niersity
At 1 October 21Hl3
B uil dlllb
Eqmpmem
Total
Cash received
Buddmggt EqUIpment
TOla
Released to income and expenditur( 1 1 7Buildmg )
Equipmcl1l
Total )S3
At 30 September 200
Buildll1g~ 61324
EqUlpmcm Tora (~=5
IS Revaluation reser( Consolidated
2004 2003 (lOO ((lOU
At 1 October as pcr nOle 10) 135940
Reuluatlons or inesrmerm in the penod InOle I 1
t W Serlember
Other gran IS Total and
henefactors (000 COOO
3515 -=37(J
81 2149
4465 7i ~
XXh(1
51627 112951
~65(1
6()
Lnjcrsity 200 20()3
f ono C 000
35040
lniYcrsiry Collegl Cork iarional Llliycrsit~ of Ireland Cork
iOTES TO THE ACCOl1TS - continued
1(J Reconciliation of movcment of reservcs Revenue Revaluation Total reserves reserves
COOO pound1000 ooo
Consolidattd
1 I October 211(0shy 6]90
D(bcll on comlllumg l)perations revaluation
I ( Septemher 20(14
middott I Octoher 2003 13940 126241
Deficll or eommumg operations revaluation
3( September 2004 1RR~]
W Contingencies
The U11lversil from tIme ll time is party to yariow legal proceedings The Offieers of the University havc been mlormed hy then legal advisors that it is not possibie at this time to make a rellable estimme of the finanCIal effects (if an~l of tiles cases
t 3( September 2004 a cO1ll1gent lIabIlity existed in respect of potential Value Added Tax in the amoum of C2 rmbon together with substantial potential imeresl and penalties This potentIa] habilItv was setllc~d in January 006 at a lesser amount and the effect on the Income and Expenditure -ecount is no material
21 Capital commitments Consolidatcd Univcrsity
2004 2003 2004 2003 (000 (000 COOO (000
Comracted for but nO promiddotided 69143
Authorised but not omracted out 18304 i 49]Q
tninrsity College Cork ationa lniversity of Ireland Cork
OTES TO THE AccorTS - (ontillucmiddotd
Reconciliation of consolidated operating deficit to net cash outflow from operating activities
Dilcit on conlJnuing operalJons afier depreciation of assets at valuatlOn Dcpr(clat10n D~fcfT(d apital grants released W income Proiit on dIsposal of tangible fixed as~ets D~rcase m stocks Increase m debtors
Drcflse m creditors
on cash changes lmerest receivable Imerest em Iiabiliy 10 Investors under FRS Increase m invcstment aluation
et cash outflow from opernt1l1g aClivilJes
23 Returns on inwstments and servicing of finance
Other lterest received Interes paid on habihty to investors under FRSS
ct cash inGow from returns on lllvestments and senlcing of finance
24 Capital expenditure and financial illYestment
iurh3se of tangible fixed assets Sak of tangible fixed assets (see note 10) Deferred capnal grants receIved
Net cash outflow from capital expendllure and finanClallllestmcm
2()l4
CIIOO
12(46) 1C) ~ 21
( 11253 ) (64 0 )
(]3006) f~(24)
15 (3011 11)62
11
( 14 361
2004 (000
301 ( 1(1621
7611
2004 C()(l()
S57 70(1
SC)4T
ISoRO
lniversit~ College Cork arional tniversity of Ireland Cork
OTES TO THE ACCOCTS - continued
15 Financing 200-1 (000
Dht due within ant year Drclse 111 shon term hononn~
Dent due lyand one year Increase in long tenl1 borw1I1g
1et -ash inflow frorr financing
26 nalsis of changes in net debt At CashOows Other At I October Non cash 30 September
2003 changes 2004 POOH (000 POOO COOO
C~sh 111 hand and at hank 5 3 9Z l)vcrdrafts
539( (21)5021
Deht due within I year (-US6) 1C)[9 (~37)
Debt due after J vear 62R) (19) (7241 Llabilll to invctors under FRS (125) (24231 i
125 163f()4iTCltal
27 Related parties
Transactions Jh suhsidlanes of the UlllversllY have been eillninated on consdidauon and 11(1 disclosure or these transactIOn has therefore been gIven The Lnlerslty had the following transactIOns with related panics on 1 DeCember 1995 Irish Universitl Student Trust entered into a twent five year lease or AnlS 113 Mac Lemn from Lmverslty College Cork at an annual rental dE44A4J pel annum The trustees oflnsh UnirSH Studem Trust are the PrerdenL Secreta and Bursar and Fllance Officer elf ljmvcrsll Cork
l ninrsit College Cork ationaJ lininrsit~ of Ireland Cork
OTES TO THE ACC01T5 - COli tinned
8 Pcnsions
3 ~ PenSIon for substantiaEy all employees are funded through a defined henefit pension schemelt
The lniwrsl oper3tes a defined henefit penSlOll scheme wllh assets held 111 a separately admmlstered fund The total pension cost w the UniversHy ltas f14J)-4 Q 4J (2003 f12(J]-~13L The Illost recen uctuanul
aluation as undenaken as at 1 Octoher 2004 hy consuting actuanes uS1l1g the attained age methodlt The
princIpal assumptIon used in the actuarial valuatlOn was that the long-term annual rale of return on 1I1vestment would exceedtbe mcrease 111 pensionable earnIngs by 2) The 1ens1On and Trust Funds are not included 1I1
the Balance Sheet hecause they arc funds w1111 a separate COHSlltu1l0n from the general assets and ltabilJtie~ of the t11lerSlllaquo
t the date of tbe last actuaria I valuation the market aluc of the scheme s assets was sufTiclCl1t to cover 9lt
of the accrued liabilitleslt based on currcnt eammgs and also allowlllg for expected future mcreascs m eammgslt
The ul1lversny also operates a defmed contributIon penslOn scheme that covers cenain empl(1yees of the
ul11ersirvlt The assets of the scheme are invested by independent trustees for the benefit of these emplovees
ContributIOns to tim pension scheme for the year amounted to C02(il15 (2003 fJ A4F788I
b Financial Reporting STandard 1- Retirement Bellefirs disclosures
The alual1on of the Superannuation Plan benefits for the purposes of FRS 10 disclosures was based on the
results of the actuanal valuation ~aITlcd out as at 0 1102004 suItably adjusted to ~Onr()m1 to the requirements
of FRS 1- The impact of the penSlOn obligations of benchmarkmg awards due but not vet paid has been
mcluded The financlal assumptions used w calulate the retIrement cbltgatJons under FRS I were as follows
2004 2003
Valuation method Projected Projected Luit Luit
Dicou11l rate ) JlOdeg) )lt50
In118tio11 rale 250deg(1 250middot
Satan 1I1lTeases LO 450deg()
PenSlOll Supplemel1latlon 350l~middott 350o (J
t nhersity Coll(ge Cork gtational Lniversity of Ireland Cork
gtOTpound5 TO THE ACCOlgtTS continued
b Financial ReporrillK Standard 1- Rctircmcnr Bcncfirs discloswc (coltinued)
Th market value of the assets 111 the penSIOn schenk the expected rates of return and the hllgallOns as at 300920(11 togethe WIth the pnor vear arc ShC11 belo
2004 2003 cooo coon
Equities ~ ~5deg iJ 11Q708 800 1~346
Bonds -f ~()(I( 22456 150[0 lfd29
PropertY 65degu ImiddotUP 00( 14330
)Clsh 21 O()~() 2]0
TOW market alue of assets 1GL933 166623
Actual Value of Labilny
PenSlun Deficll
Related deferred tax Iiabiit~
et PellSlOn Llabi hty
Analysis of the amount that would have heen charg(d HI operating profit under FRS 17 is as foil () s
2004 2003 COOO (000
Curren Selce Cost 1710 1
Past SeTyice Cost
Tow Operatmg Charge
Analysis of the amount that would lUlVe been credited to other finance income under FRS]7 is as
follows
2004 2003 (000 COOIl
retum 011 s-heme asct~ 1U104
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
lnhersin Colle~( Cork arional lniversity of Ireland Cork
OTES TO THE ACCOtTS - continued
S Taxation
taXJllOll charge arises as the UlllvCrSll and il~ principal subndJar companies are exempt chantle and are not
hable for corporation tax or mcome tax on any of its charitabk actlvitles
I) Deficit on cOlltinuin~ operations for the year 20(14 2U(J3 [(IOU COOO
The deii-l on continuing operalJons for the vcar is made up a~ flllows
UniC~rslfS deficit for the vear
Surplus generated bv the subsidIary undenakmgs and transferred to the Univcrslt
Total
1
I uinlsity (olltj( (olk ~atiollall illi(rsil~ 01 Irdalltl Cork
NOI ES TO TilE A((OINTS
10 Tal~ihl( fix(d ass(ls
(( )NS()f J lgtAnl)
(0lt1 or valnation
At t ()cohcr200)
Additiotls
At
Is 311 21104
i)epncialioll
At 1 Oct(hcr 2(J03
(I Cd
tl) 2(11)1
Nrl hook aim
t I letobe WOJ
It Ill 211()4
fOlllillll((1
Land alld
hllildill~S
CHon
I 7ti6
57(iY
((l3)
379]
(() Ll
273I1U3
27350X
COIIIJlIII(middotr
(qlliplJI(lIt
(000
2(d~59
i23
1 JJ
2J 425
71 II
1434
4X39
EqllipllltlIl
COOO
iltU172 6+31
30514
9Y)()
20]X8
17331
Assets ill ((HI 1St or
COllstnldioll
ClUW
151)9
54512
109
Total
CIIOO
4IltX() 7Ui7
l) 1Yh2
IlI121
II
312(118
3(1)30
LamJ alld huiltiillll alld cquipnlCllt IIKludc assets valucd in Iljl)4 (In a dCpleCI1tet 1Cj111ccmcllt cosl hasis fL1 1lIOJ()) respectivelY land alld huildillils ami lssel in course (II cOllstructi(lil includes UX]X I IJ(IO
include C 51ltJ07()O() (lOll CJ1)I(lI()()()) in relatioll tn land and tile ACC(1l111tillg Standards Board Iliese land ami
ftilcsc buildillls IS that tlte
( ) nlccr oUTgt nUI(( I (~(() C127721J IO()) and CI 1 IlIeH 10 (2()(3
(11 Ii ecl(1ld Iaml willch is Iwl
The COlllllwlcial ellce of the trallsactiolls Slln
issued lire salv alld ulllllwtc
tll 1he lam] ami
~
--
- -
~
~
~
-
-=
shy
- = shy~
7
=-= -
Z
7 ~
~ - lt shy shy shy
shy
Z shy
Z
r X r
-
r
-= oJ c
= 0 ~
= -~-=
ti= ~
shy = =
~
~
t= Z
~
51
- Z ~ lt
0
r-~
(J n r--ltIoc r-
x
v ~ r l j r1 r- if
rr
T M rlt
r = j
= -j =
C
shy -
~ v ~ ~
shy shy
- - -
-0
lt - lt )
Z lt
1 0 x T x)C
F n ~
0middot1 r1~~
r -
r~
lt
0 lr ~ r1 n(1
l r~
ltj~
tniVCfsiry College Cork ttional Lniversiry of Ireland Cork
OTES TO THE ACC()l]TS - continued
11 Financial assets Consolid ated
2UO-l 2003 ((WO f(lOO
t nhersity 2004 2003
COOO COOO
InnSlInents at the veal end were held as follovs
( lthcr
3450
The investment in the Lmversllv Technology Centre Partnership ha~ been re31ued during the year tc the 3lue 0shythe Llmycrsny share inlhe partnership as at 31 December 2003
The tnhersity held an interest in the following subsidiary undertakings
Subsidhlry undertakings
Incorporated
Propem ianagement (LeC) Limited
Campm ccommOdali(111 C) Limned
Art Gallery (liCC) Limiled
Brcnard Limited
1ardykc LeIsure (U ce) Limited
At Ie Press Limited
(iivlC Holding~ Limlled
11 Stocks
Consumables
FIlllshed goods for resale
Prindplil activity
Property development
Accommodation rcntal
11 gallery
Leasing or lands
PublIshing
Dornnnt
Interest 0 0
J00
100
100
100
1(lOo
Consolidated
2004 2003 COOO (0110
65
Registered officeplace of business
City Chamhers 4
Cork
limversl1Y Cork Aestern Road Cork University Cork Vestern Road Cork University College Cork Western Road Cork liniversiry College Cork Western Road Cork Crawford Business Park Crosses Green Cork St Kildas Western Road Cork
Clliversity
O()4 2001 [(lOU COOO
36
fhere io no malcnal difference between the balance sheet amount of slOcks and Its replacement cost
13 Debtors
Trad- debtors
Res-arh grants and colllraCls receiabk
nwunts due from suhsldmrv undertakings
Slale gr~ml reciabk
(lther tJJtWIl and s(lcial Illsurancc
Other deotiJrs
C ollsolida ted Llliycrsif
2(104 2003 2004 200 [000 COOO COOO f(I00
S34 -Li06 67U
601 753 6015 j J0(
1~S26 766 12S~6
11 -- 3 f~ 51 t
lJ
~ q()l --l12(j( ~ ~
CnhlIsit~ College Cork ationallniersity of Ireland Cork
OTES TO THE CCOCTS - continued
1-1 Creditors Amounts fallillg due within Dill year Consolidated lnjyersit~
20114 2003 2004 2003 COOO COOO [000 C(lOU
Trad rcdjtor~ 7501 Cl295 (702
Research grants and contracts III advance I(i5 5 1150i 1U5~ -cademic fee~ receied in advance 11(1()4 QOM 110CJ4 ()01gt4
State grant receied m advance 118 I 1535 513~ Bank loans 8 overdrafts (note 16) 3O 39 416 1606 333~
Amounts owed to subsidiary undenakmgs -113 4SS~
Other taxatIOn and SOCIal security -+394 0 41 42()9 SAl (i
Deftrred incJll1e 19(3 9131
Other creditors 8 accruals lOOARA R9~~
15 Creditors Amounts falling due after one year Consolidated linivcrsi t)
200-1 2003 2004 20U3 ((lOO COOO (000 COOO
Bank loans (note 16) ~ 1 - -_-
16 Borrowings Consolidated University
2004 2003 2004 2003 (000 (000 fOOO (IOU
Bank loans and overdrafts
Bank loan and oerdrafts are repayable as follows
III one year or less 3073Q 41 6 8606 33~
O~(Between one and twe veal 221 1693 1ampshy
Between two ard 11 H years 872 (i 104 604Q 3+05
In fiC y~ar or more
TCHal 6360 1 3400( I ~~ ~
ature and Securiry of Borrowings stated tn Note 10 F1Xed Assets hae been accounted for in accordance with FRS 5 The ab[)vc liabilIl16 represent the uhimate lwbilitie to repurchase the assct~ concerned The borrowJI1gs arc secured bv title until the repurchae takes place
lniYlrsit Colleu ( Cork -ational lniversity of Ireland Cork
-OTES TO THE ACCOCTS - continued
1~ Deferred capital grants HEA
COOO
Other grants and
benefactors (000
Total
COOO
C olsolida ted
At 1 October 2003
BuJldmg~
EJuipment
Tota
414 45677 8-31
Cash received Buildmg
Equipment
Tolal
b53-l 153~5 -l U59
Released to income and expenditure
Buildmgs
Equipment
TClaj
1449 )
~
9~3
1-1 ---
) iii _) shy
1L~~~
At 3() Septemher 20()t
B u ild 1111
Equipmem
T pta I
66639
7(91
600 i 9
-09A
I 6-] ~
14UltC)
l ni(~rsit C olieo ( Cork arional Cnhersity of Ireland Cork
OTES TO THE ACCOl1TS - continued
1i Deferred capital grants continued HEA
(non
t niersity
At 1 October 21Hl3
B uil dlllb
Eqmpmem
Total
Cash received
Buddmggt EqUIpment
TOla
Released to income and expenditur( 1 1 7Buildmg )
Equipmcl1l
Total )S3
At 30 September 200
Buildll1g~ 61324
EqUlpmcm Tora (~=5
IS Revaluation reser( Consolidated
2004 2003 (lOO ((lOU
At 1 October as pcr nOle 10) 135940
Reuluatlons or inesrmerm in the penod InOle I 1
t W Serlember
Other gran IS Total and
henefactors (000 COOO
3515 -=37(J
81 2149
4465 7i ~
XXh(1
51627 112951
~65(1
6()
Lnjcrsity 200 20()3
f ono C 000
35040
lniYcrsiry Collegl Cork iarional Llliycrsit~ of Ireland Cork
iOTES TO THE ACCOl1TS - continued
1(J Reconciliation of movcment of reservcs Revenue Revaluation Total reserves reserves
COOO pound1000 ooo
Consolidattd
1 I October 211(0shy 6]90
D(bcll on comlllumg l)perations revaluation
I ( Septemher 20(14
middott I Octoher 2003 13940 126241
Deficll or eommumg operations revaluation
3( September 2004 1RR~]
W Contingencies
The U11lversil from tIme ll time is party to yariow legal proceedings The Offieers of the University havc been mlormed hy then legal advisors that it is not possibie at this time to make a rellable estimme of the finanCIal effects (if an~l of tiles cases
t 3( September 2004 a cO1ll1gent lIabIlity existed in respect of potential Value Added Tax in the amoum of C2 rmbon together with substantial potential imeresl and penalties This potentIa] habilItv was setllc~d in January 006 at a lesser amount and the effect on the Income and Expenditure -ecount is no material
21 Capital commitments Consolidatcd Univcrsity
2004 2003 2004 2003 (000 (000 COOO (000
Comracted for but nO promiddotided 69143
Authorised but not omracted out 18304 i 49]Q
tninrsity College Cork ationa lniversity of Ireland Cork
OTES TO THE AccorTS - (ontillucmiddotd
Reconciliation of consolidated operating deficit to net cash outflow from operating activities
Dilcit on conlJnuing operalJons afier depreciation of assets at valuatlOn Dcpr(clat10n D~fcfT(d apital grants released W income Proiit on dIsposal of tangible fixed as~ets D~rcase m stocks Increase m debtors
Drcflse m creditors
on cash changes lmerest receivable Imerest em Iiabiliy 10 Investors under FRS Increase m invcstment aluation
et cash outflow from opernt1l1g aClivilJes
23 Returns on inwstments and servicing of finance
Other lterest received Interes paid on habihty to investors under FRSS
ct cash inGow from returns on lllvestments and senlcing of finance
24 Capital expenditure and financial illYestment
iurh3se of tangible fixed assets Sak of tangible fixed assets (see note 10) Deferred capnal grants receIved
Net cash outflow from capital expendllure and finanClallllestmcm
2()l4
CIIOO
12(46) 1C) ~ 21
( 11253 ) (64 0 )
(]3006) f~(24)
15 (3011 11)62
11
( 14 361
2004 (000
301 ( 1(1621
7611
2004 C()(l()
S57 70(1
SC)4T
ISoRO
lniversit~ College Cork arional tniversity of Ireland Cork
OTES TO THE ACCOCTS - continued
15 Financing 200-1 (000
Dht due within ant year Drclse 111 shon term hononn~
Dent due lyand one year Increase in long tenl1 borw1I1g
1et -ash inflow frorr financing
26 nalsis of changes in net debt At CashOows Other At I October Non cash 30 September
2003 changes 2004 POOH (000 POOO COOO
C~sh 111 hand and at hank 5 3 9Z l)vcrdrafts
539( (21)5021
Deht due within I year (-US6) 1C)[9 (~37)
Debt due after J vear 62R) (19) (7241 Llabilll to invctors under FRS (125) (24231 i
125 163f()4iTCltal
27 Related parties
Transactions Jh suhsidlanes of the UlllversllY have been eillninated on consdidauon and 11(1 disclosure or these transactIOn has therefore been gIven The Lnlerslty had the following transactIOns with related panics on 1 DeCember 1995 Irish Universitl Student Trust entered into a twent five year lease or AnlS 113 Mac Lemn from Lmverslty College Cork at an annual rental dE44A4J pel annum The trustees oflnsh UnirSH Studem Trust are the PrerdenL Secreta and Bursar and Fllance Officer elf ljmvcrsll Cork
l ninrsit College Cork ationaJ lininrsit~ of Ireland Cork
OTES TO THE ACC01T5 - COli tinned
8 Pcnsions
3 ~ PenSIon for substantiaEy all employees are funded through a defined henefit pension schemelt
The lniwrsl oper3tes a defined henefit penSlOll scheme wllh assets held 111 a separately admmlstered fund The total pension cost w the UniversHy ltas f14J)-4 Q 4J (2003 f12(J]-~13L The Illost recen uctuanul
aluation as undenaken as at 1 Octoher 2004 hy consuting actuanes uS1l1g the attained age methodlt The
princIpal assumptIon used in the actuarial valuatlOn was that the long-term annual rale of return on 1I1vestment would exceedtbe mcrease 111 pensionable earnIngs by 2) The 1ens1On and Trust Funds are not included 1I1
the Balance Sheet hecause they arc funds w1111 a separate COHSlltu1l0n from the general assets and ltabilJtie~ of the t11lerSlllaquo
t the date of tbe last actuaria I valuation the market aluc of the scheme s assets was sufTiclCl1t to cover 9lt
of the accrued liabilitleslt based on currcnt eammgs and also allowlllg for expected future mcreascs m eammgslt
The ul1lversny also operates a defmed contributIon penslOn scheme that covers cenain empl(1yees of the
ul11ersirvlt The assets of the scheme are invested by independent trustees for the benefit of these emplovees
ContributIOns to tim pension scheme for the year amounted to C02(il15 (2003 fJ A4F788I
b Financial Reporting STandard 1- Retirement Bellefirs disclosures
The alual1on of the Superannuation Plan benefits for the purposes of FRS 10 disclosures was based on the
results of the actuanal valuation ~aITlcd out as at 0 1102004 suItably adjusted to ~Onr()m1 to the requirements
of FRS 1- The impact of the penSlOn obligations of benchmarkmg awards due but not vet paid has been
mcluded The financlal assumptions used w calulate the retIrement cbltgatJons under FRS I were as follows
2004 2003
Valuation method Projected Projected Luit Luit
Dicou11l rate ) JlOdeg) )lt50
In118tio11 rale 250deg(1 250middot
Satan 1I1lTeases LO 450deg()
PenSlOll Supplemel1latlon 350l~middott 350o (J
t nhersity Coll(ge Cork gtational Lniversity of Ireland Cork
gtOTpound5 TO THE ACCOlgtTS continued
b Financial ReporrillK Standard 1- Rctircmcnr Bcncfirs discloswc (coltinued)
Th market value of the assets 111 the penSIOn schenk the expected rates of return and the hllgallOns as at 300920(11 togethe WIth the pnor vear arc ShC11 belo
2004 2003 cooo coon
Equities ~ ~5deg iJ 11Q708 800 1~346
Bonds -f ~()(I( 22456 150[0 lfd29
PropertY 65degu ImiddotUP 00( 14330
)Clsh 21 O()~() 2]0
TOW market alue of assets 1GL933 166623
Actual Value of Labilny
PenSlun Deficll
Related deferred tax Iiabiit~
et PellSlOn Llabi hty
Analysis of the amount that would have heen charg(d HI operating profit under FRS 17 is as foil () s
2004 2003 COOO (000
Curren Selce Cost 1710 1
Past SeTyice Cost
Tow Operatmg Charge
Analysis of the amount that would lUlVe been credited to other finance income under FRS]7 is as
follows
2004 2003 (000 COOIl
retum 011 s-heme asct~ 1U104
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
I uinlsity (olltj( (olk ~atiollall illi(rsil~ 01 Irdalltl Cork
NOI ES TO TilE A((OINTS
10 Tal~ihl( fix(d ass(ls
(( )NS()f J lgtAnl)
(0lt1 or valnation
At t ()cohcr200)
Additiotls
At
Is 311 21104
i)epncialioll
At 1 Oct(hcr 2(J03
(I Cd
tl) 2(11)1
Nrl hook aim
t I letobe WOJ
It Ill 211()4
fOlllillll((1
Land alld
hllildill~S
CHon
I 7ti6
57(iY
((l3)
379]
(() Ll
273I1U3
27350X
COIIIJlIII(middotr
(qlliplJI(lIt
(000
2(d~59
i23
1 JJ
2J 425
71 II
1434
4X39
EqllipllltlIl
COOO
iltU172 6+31
30514
9Y)()
20]X8
17331
Assets ill ((HI 1St or
COllstnldioll
ClUW
151)9
54512
109
Total
CIIOO
4IltX() 7Ui7
l) 1Yh2
IlI121
II
312(118
3(1)30
LamJ alld huiltiillll alld cquipnlCllt IIKludc assets valucd in Iljl)4 (In a dCpleCI1tet 1Cj111ccmcllt cosl hasis fL1 1lIOJ()) respectivelY land alld huildillils ami lssel in course (II cOllstructi(lil includes UX]X I IJ(IO
include C 51ltJ07()O() (lOll CJ1)I(lI()()()) in relatioll tn land and tile ACC(1l111tillg Standards Board Iliese land ami
ftilcsc buildillls IS that tlte
( ) nlccr oUTgt nUI(( I (~(() C127721J IO()) and CI 1 IlIeH 10 (2()(3
(11 Ii ecl(1ld Iaml willch is Iwl
The COlllllwlcial ellce of the trallsactiolls Slln
issued lire salv alld ulllllwtc
tll 1he lam] ami
~
--
- -
~
~
~
-
-=
shy
- = shy~
7
=-= -
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~ - lt shy shy shy
shy
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r X r
-
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-= oJ c
= 0 ~
= -~-=
ti= ~
shy = =
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t= Z
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51
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(J n r--ltIoc r-
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v ~ r l j r1 r- if
rr
T M rlt
r = j
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shy -
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shy shy
- - -
-0
lt - lt )
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1 0 x T x)C
F n ~
0middot1 r1~~
r -
r~
lt
0 lr ~ r1 n(1
l r~
ltj~
tniVCfsiry College Cork ttional Lniversiry of Ireland Cork
OTES TO THE ACC()l]TS - continued
11 Financial assets Consolid ated
2UO-l 2003 ((WO f(lOO
t nhersity 2004 2003
COOO COOO
InnSlInents at the veal end were held as follovs
( lthcr
3450
The investment in the Lmversllv Technology Centre Partnership ha~ been re31ued during the year tc the 3lue 0shythe Llmycrsny share inlhe partnership as at 31 December 2003
The tnhersity held an interest in the following subsidiary undertakings
Subsidhlry undertakings
Incorporated
Propem ianagement (LeC) Limited
Campm ccommOdali(111 C) Limned
Art Gallery (liCC) Limiled
Brcnard Limited
1ardykc LeIsure (U ce) Limited
At Ie Press Limited
(iivlC Holding~ Limlled
11 Stocks
Consumables
FIlllshed goods for resale
Prindplil activity
Property development
Accommodation rcntal
11 gallery
Leasing or lands
PublIshing
Dornnnt
Interest 0 0
J00
100
100
100
1(lOo
Consolidated
2004 2003 COOO (0110
65
Registered officeplace of business
City Chamhers 4
Cork
limversl1Y Cork Aestern Road Cork University Cork Vestern Road Cork University College Cork Western Road Cork liniversiry College Cork Western Road Cork Crawford Business Park Crosses Green Cork St Kildas Western Road Cork
Clliversity
O()4 2001 [(lOU COOO
36
fhere io no malcnal difference between the balance sheet amount of slOcks and Its replacement cost
13 Debtors
Trad- debtors
Res-arh grants and colllraCls receiabk
nwunts due from suhsldmrv undertakings
Slale gr~ml reciabk
(lther tJJtWIl and s(lcial Illsurancc
Other deotiJrs
C ollsolida ted Llliycrsif
2(104 2003 2004 200 [000 COOO COOO f(I00
S34 -Li06 67U
601 753 6015 j J0(
1~S26 766 12S~6
11 -- 3 f~ 51 t
lJ
~ q()l --l12(j( ~ ~
CnhlIsit~ College Cork ationallniersity of Ireland Cork
OTES TO THE CCOCTS - continued
1-1 Creditors Amounts fallillg due within Dill year Consolidated lnjyersit~
20114 2003 2004 2003 COOO COOO [000 C(lOU
Trad rcdjtor~ 7501 Cl295 (702
Research grants and contracts III advance I(i5 5 1150i 1U5~ -cademic fee~ receied in advance 11(1()4 QOM 110CJ4 ()01gt4
State grant receied m advance 118 I 1535 513~ Bank loans 8 overdrafts (note 16) 3O 39 416 1606 333~
Amounts owed to subsidiary undenakmgs -113 4SS~
Other taxatIOn and SOCIal security -+394 0 41 42()9 SAl (i
Deftrred incJll1e 19(3 9131
Other creditors 8 accruals lOOARA R9~~
15 Creditors Amounts falling due after one year Consolidated linivcrsi t)
200-1 2003 2004 20U3 ((lOO COOO (000 COOO
Bank loans (note 16) ~ 1 - -_-
16 Borrowings Consolidated University
2004 2003 2004 2003 (000 (000 fOOO (IOU
Bank loans and overdrafts
Bank loan and oerdrafts are repayable as follows
III one year or less 3073Q 41 6 8606 33~
O~(Between one and twe veal 221 1693 1ampshy
Between two ard 11 H years 872 (i 104 604Q 3+05
In fiC y~ar or more
TCHal 6360 1 3400( I ~~ ~
ature and Securiry of Borrowings stated tn Note 10 F1Xed Assets hae been accounted for in accordance with FRS 5 The ab[)vc liabilIl16 represent the uhimate lwbilitie to repurchase the assct~ concerned The borrowJI1gs arc secured bv title until the repurchae takes place
lniYlrsit Colleu ( Cork -ational lniversity of Ireland Cork
-OTES TO THE ACCOCTS - continued
1~ Deferred capital grants HEA
COOO
Other grants and
benefactors (000
Total
COOO
C olsolida ted
At 1 October 2003
BuJldmg~
EJuipment
Tota
414 45677 8-31
Cash received Buildmg
Equipment
Tolal
b53-l 153~5 -l U59
Released to income and expenditure
Buildmgs
Equipment
TClaj
1449 )
~
9~3
1-1 ---
) iii _) shy
1L~~~
At 3() Septemher 20()t
B u ild 1111
Equipmem
T pta I
66639
7(91
600 i 9
-09A
I 6-] ~
14UltC)
l ni(~rsit C olieo ( Cork arional Cnhersity of Ireland Cork
OTES TO THE ACCOl1TS - continued
1i Deferred capital grants continued HEA
(non
t niersity
At 1 October 21Hl3
B uil dlllb
Eqmpmem
Total
Cash received
Buddmggt EqUIpment
TOla
Released to income and expenditur( 1 1 7Buildmg )
Equipmcl1l
Total )S3
At 30 September 200
Buildll1g~ 61324
EqUlpmcm Tora (~=5
IS Revaluation reser( Consolidated
2004 2003 (lOO ((lOU
At 1 October as pcr nOle 10) 135940
Reuluatlons or inesrmerm in the penod InOle I 1
t W Serlember
Other gran IS Total and
henefactors (000 COOO
3515 -=37(J
81 2149
4465 7i ~
XXh(1
51627 112951
~65(1
6()
Lnjcrsity 200 20()3
f ono C 000
35040
lniYcrsiry Collegl Cork iarional Llliycrsit~ of Ireland Cork
iOTES TO THE ACCOl1TS - continued
1(J Reconciliation of movcment of reservcs Revenue Revaluation Total reserves reserves
COOO pound1000 ooo
Consolidattd
1 I October 211(0shy 6]90
D(bcll on comlllumg l)perations revaluation
I ( Septemher 20(14
middott I Octoher 2003 13940 126241
Deficll or eommumg operations revaluation
3( September 2004 1RR~]
W Contingencies
The U11lversil from tIme ll time is party to yariow legal proceedings The Offieers of the University havc been mlormed hy then legal advisors that it is not possibie at this time to make a rellable estimme of the finanCIal effects (if an~l of tiles cases
t 3( September 2004 a cO1ll1gent lIabIlity existed in respect of potential Value Added Tax in the amoum of C2 rmbon together with substantial potential imeresl and penalties This potentIa] habilItv was setllc~d in January 006 at a lesser amount and the effect on the Income and Expenditure -ecount is no material
21 Capital commitments Consolidatcd Univcrsity
2004 2003 2004 2003 (000 (000 COOO (000
Comracted for but nO promiddotided 69143
Authorised but not omracted out 18304 i 49]Q
tninrsity College Cork ationa lniversity of Ireland Cork
OTES TO THE AccorTS - (ontillucmiddotd
Reconciliation of consolidated operating deficit to net cash outflow from operating activities
Dilcit on conlJnuing operalJons afier depreciation of assets at valuatlOn Dcpr(clat10n D~fcfT(d apital grants released W income Proiit on dIsposal of tangible fixed as~ets D~rcase m stocks Increase m debtors
Drcflse m creditors
on cash changes lmerest receivable Imerest em Iiabiliy 10 Investors under FRS Increase m invcstment aluation
et cash outflow from opernt1l1g aClivilJes
23 Returns on inwstments and servicing of finance
Other lterest received Interes paid on habihty to investors under FRSS
ct cash inGow from returns on lllvestments and senlcing of finance
24 Capital expenditure and financial illYestment
iurh3se of tangible fixed assets Sak of tangible fixed assets (see note 10) Deferred capnal grants receIved
Net cash outflow from capital expendllure and finanClallllestmcm
2()l4
CIIOO
12(46) 1C) ~ 21
( 11253 ) (64 0 )
(]3006) f~(24)
15 (3011 11)62
11
( 14 361
2004 (000
301 ( 1(1621
7611
2004 C()(l()
S57 70(1
SC)4T
ISoRO
lniversit~ College Cork arional tniversity of Ireland Cork
OTES TO THE ACCOCTS - continued
15 Financing 200-1 (000
Dht due within ant year Drclse 111 shon term hononn~
Dent due lyand one year Increase in long tenl1 borw1I1g
1et -ash inflow frorr financing
26 nalsis of changes in net debt At CashOows Other At I October Non cash 30 September
2003 changes 2004 POOH (000 POOO COOO
C~sh 111 hand and at hank 5 3 9Z l)vcrdrafts
539( (21)5021
Deht due within I year (-US6) 1C)[9 (~37)
Debt due after J vear 62R) (19) (7241 Llabilll to invctors under FRS (125) (24231 i
125 163f()4iTCltal
27 Related parties
Transactions Jh suhsidlanes of the UlllversllY have been eillninated on consdidauon and 11(1 disclosure or these transactIOn has therefore been gIven The Lnlerslty had the following transactIOns with related panics on 1 DeCember 1995 Irish Universitl Student Trust entered into a twent five year lease or AnlS 113 Mac Lemn from Lmverslty College Cork at an annual rental dE44A4J pel annum The trustees oflnsh UnirSH Studem Trust are the PrerdenL Secreta and Bursar and Fllance Officer elf ljmvcrsll Cork
l ninrsit College Cork ationaJ lininrsit~ of Ireland Cork
OTES TO THE ACC01T5 - COli tinned
8 Pcnsions
3 ~ PenSIon for substantiaEy all employees are funded through a defined henefit pension schemelt
The lniwrsl oper3tes a defined henefit penSlOll scheme wllh assets held 111 a separately admmlstered fund The total pension cost w the UniversHy ltas f14J)-4 Q 4J (2003 f12(J]-~13L The Illost recen uctuanul
aluation as undenaken as at 1 Octoher 2004 hy consuting actuanes uS1l1g the attained age methodlt The
princIpal assumptIon used in the actuarial valuatlOn was that the long-term annual rale of return on 1I1vestment would exceedtbe mcrease 111 pensionable earnIngs by 2) The 1ens1On and Trust Funds are not included 1I1
the Balance Sheet hecause they arc funds w1111 a separate COHSlltu1l0n from the general assets and ltabilJtie~ of the t11lerSlllaquo
t the date of tbe last actuaria I valuation the market aluc of the scheme s assets was sufTiclCl1t to cover 9lt
of the accrued liabilitleslt based on currcnt eammgs and also allowlllg for expected future mcreascs m eammgslt
The ul1lversny also operates a defmed contributIon penslOn scheme that covers cenain empl(1yees of the
ul11ersirvlt The assets of the scheme are invested by independent trustees for the benefit of these emplovees
ContributIOns to tim pension scheme for the year amounted to C02(il15 (2003 fJ A4F788I
b Financial Reporting STandard 1- Retirement Bellefirs disclosures
The alual1on of the Superannuation Plan benefits for the purposes of FRS 10 disclosures was based on the
results of the actuanal valuation ~aITlcd out as at 0 1102004 suItably adjusted to ~Onr()m1 to the requirements
of FRS 1- The impact of the penSlOn obligations of benchmarkmg awards due but not vet paid has been
mcluded The financlal assumptions used w calulate the retIrement cbltgatJons under FRS I were as follows
2004 2003
Valuation method Projected Projected Luit Luit
Dicou11l rate ) JlOdeg) )lt50
In118tio11 rale 250deg(1 250middot
Satan 1I1lTeases LO 450deg()
PenSlOll Supplemel1latlon 350l~middott 350o (J
t nhersity Coll(ge Cork gtational Lniversity of Ireland Cork
gtOTpound5 TO THE ACCOlgtTS continued
b Financial ReporrillK Standard 1- Rctircmcnr Bcncfirs discloswc (coltinued)
Th market value of the assets 111 the penSIOn schenk the expected rates of return and the hllgallOns as at 300920(11 togethe WIth the pnor vear arc ShC11 belo
2004 2003 cooo coon
Equities ~ ~5deg iJ 11Q708 800 1~346
Bonds -f ~()(I( 22456 150[0 lfd29
PropertY 65degu ImiddotUP 00( 14330
)Clsh 21 O()~() 2]0
TOW market alue of assets 1GL933 166623
Actual Value of Labilny
PenSlun Deficll
Related deferred tax Iiabiit~
et PellSlOn Llabi hty
Analysis of the amount that would have heen charg(d HI operating profit under FRS 17 is as foil () s
2004 2003 COOO (000
Curren Selce Cost 1710 1
Past SeTyice Cost
Tow Operatmg Charge
Analysis of the amount that would lUlVe been credited to other finance income under FRS]7 is as
follows
2004 2003 (000 COOIl
retum 011 s-heme asct~ 1U104
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
--
- -
~
~
~
-
-=
shy
- = shy~
7
=-= -
Z
7 ~
~ - lt shy shy shy
shy
Z shy
Z
r X r
-
r
-= oJ c
= 0 ~
= -~-=
ti= ~
shy = =
~
~
t= Z
~
51
- Z ~ lt
0
r-~
(J n r--ltIoc r-
x
v ~ r l j r1 r- if
rr
T M rlt
r = j
= -j =
C
shy -
~ v ~ ~
shy shy
- - -
-0
lt - lt )
Z lt
1 0 x T x)C
F n ~
0middot1 r1~~
r -
r~
lt
0 lr ~ r1 n(1
l r~
ltj~
tniVCfsiry College Cork ttional Lniversiry of Ireland Cork
OTES TO THE ACC()l]TS - continued
11 Financial assets Consolid ated
2UO-l 2003 ((WO f(lOO
t nhersity 2004 2003
COOO COOO
InnSlInents at the veal end were held as follovs
( lthcr
3450
The investment in the Lmversllv Technology Centre Partnership ha~ been re31ued during the year tc the 3lue 0shythe Llmycrsny share inlhe partnership as at 31 December 2003
The tnhersity held an interest in the following subsidiary undertakings
Subsidhlry undertakings
Incorporated
Propem ianagement (LeC) Limited
Campm ccommOdali(111 C) Limned
Art Gallery (liCC) Limiled
Brcnard Limited
1ardykc LeIsure (U ce) Limited
At Ie Press Limited
(iivlC Holding~ Limlled
11 Stocks
Consumables
FIlllshed goods for resale
Prindplil activity
Property development
Accommodation rcntal
11 gallery
Leasing or lands
PublIshing
Dornnnt
Interest 0 0
J00
100
100
100
1(lOo
Consolidated
2004 2003 COOO (0110
65
Registered officeplace of business
City Chamhers 4
Cork
limversl1Y Cork Aestern Road Cork University Cork Vestern Road Cork University College Cork Western Road Cork liniversiry College Cork Western Road Cork Crawford Business Park Crosses Green Cork St Kildas Western Road Cork
Clliversity
O()4 2001 [(lOU COOO
36
fhere io no malcnal difference between the balance sheet amount of slOcks and Its replacement cost
13 Debtors
Trad- debtors
Res-arh grants and colllraCls receiabk
nwunts due from suhsldmrv undertakings
Slale gr~ml reciabk
(lther tJJtWIl and s(lcial Illsurancc
Other deotiJrs
C ollsolida ted Llliycrsif
2(104 2003 2004 200 [000 COOO COOO f(I00
S34 -Li06 67U
601 753 6015 j J0(
1~S26 766 12S~6
11 -- 3 f~ 51 t
lJ
~ q()l --l12(j( ~ ~
CnhlIsit~ College Cork ationallniersity of Ireland Cork
OTES TO THE CCOCTS - continued
1-1 Creditors Amounts fallillg due within Dill year Consolidated lnjyersit~
20114 2003 2004 2003 COOO COOO [000 C(lOU
Trad rcdjtor~ 7501 Cl295 (702
Research grants and contracts III advance I(i5 5 1150i 1U5~ -cademic fee~ receied in advance 11(1()4 QOM 110CJ4 ()01gt4
State grant receied m advance 118 I 1535 513~ Bank loans 8 overdrafts (note 16) 3O 39 416 1606 333~
Amounts owed to subsidiary undenakmgs -113 4SS~
Other taxatIOn and SOCIal security -+394 0 41 42()9 SAl (i
Deftrred incJll1e 19(3 9131
Other creditors 8 accruals lOOARA R9~~
15 Creditors Amounts falling due after one year Consolidated linivcrsi t)
200-1 2003 2004 20U3 ((lOO COOO (000 COOO
Bank loans (note 16) ~ 1 - -_-
16 Borrowings Consolidated University
2004 2003 2004 2003 (000 (000 fOOO (IOU
Bank loans and overdrafts
Bank loan and oerdrafts are repayable as follows
III one year or less 3073Q 41 6 8606 33~
O~(Between one and twe veal 221 1693 1ampshy
Between two ard 11 H years 872 (i 104 604Q 3+05
In fiC y~ar or more
TCHal 6360 1 3400( I ~~ ~
ature and Securiry of Borrowings stated tn Note 10 F1Xed Assets hae been accounted for in accordance with FRS 5 The ab[)vc liabilIl16 represent the uhimate lwbilitie to repurchase the assct~ concerned The borrowJI1gs arc secured bv title until the repurchae takes place
lniYlrsit Colleu ( Cork -ational lniversity of Ireland Cork
-OTES TO THE ACCOCTS - continued
1~ Deferred capital grants HEA
COOO
Other grants and
benefactors (000
Total
COOO
C olsolida ted
At 1 October 2003
BuJldmg~
EJuipment
Tota
414 45677 8-31
Cash received Buildmg
Equipment
Tolal
b53-l 153~5 -l U59
Released to income and expenditure
Buildmgs
Equipment
TClaj
1449 )
~
9~3
1-1 ---
) iii _) shy
1L~~~
At 3() Septemher 20()t
B u ild 1111
Equipmem
T pta I
66639
7(91
600 i 9
-09A
I 6-] ~
14UltC)
l ni(~rsit C olieo ( Cork arional Cnhersity of Ireland Cork
OTES TO THE ACCOl1TS - continued
1i Deferred capital grants continued HEA
(non
t niersity
At 1 October 21Hl3
B uil dlllb
Eqmpmem
Total
Cash received
Buddmggt EqUIpment
TOla
Released to income and expenditur( 1 1 7Buildmg )
Equipmcl1l
Total )S3
At 30 September 200
Buildll1g~ 61324
EqUlpmcm Tora (~=5
IS Revaluation reser( Consolidated
2004 2003 (lOO ((lOU
At 1 October as pcr nOle 10) 135940
Reuluatlons or inesrmerm in the penod InOle I 1
t W Serlember
Other gran IS Total and
henefactors (000 COOO
3515 -=37(J
81 2149
4465 7i ~
XXh(1
51627 112951
~65(1
6()
Lnjcrsity 200 20()3
f ono C 000
35040
lniYcrsiry Collegl Cork iarional Llliycrsit~ of Ireland Cork
iOTES TO THE ACCOl1TS - continued
1(J Reconciliation of movcment of reservcs Revenue Revaluation Total reserves reserves
COOO pound1000 ooo
Consolidattd
1 I October 211(0shy 6]90
D(bcll on comlllumg l)perations revaluation
I ( Septemher 20(14
middott I Octoher 2003 13940 126241
Deficll or eommumg operations revaluation
3( September 2004 1RR~]
W Contingencies
The U11lversil from tIme ll time is party to yariow legal proceedings The Offieers of the University havc been mlormed hy then legal advisors that it is not possibie at this time to make a rellable estimme of the finanCIal effects (if an~l of tiles cases
t 3( September 2004 a cO1ll1gent lIabIlity existed in respect of potential Value Added Tax in the amoum of C2 rmbon together with substantial potential imeresl and penalties This potentIa] habilItv was setllc~d in January 006 at a lesser amount and the effect on the Income and Expenditure -ecount is no material
21 Capital commitments Consolidatcd Univcrsity
2004 2003 2004 2003 (000 (000 COOO (000
Comracted for but nO promiddotided 69143
Authorised but not omracted out 18304 i 49]Q
tninrsity College Cork ationa lniversity of Ireland Cork
OTES TO THE AccorTS - (ontillucmiddotd
Reconciliation of consolidated operating deficit to net cash outflow from operating activities
Dilcit on conlJnuing operalJons afier depreciation of assets at valuatlOn Dcpr(clat10n D~fcfT(d apital grants released W income Proiit on dIsposal of tangible fixed as~ets D~rcase m stocks Increase m debtors
Drcflse m creditors
on cash changes lmerest receivable Imerest em Iiabiliy 10 Investors under FRS Increase m invcstment aluation
et cash outflow from opernt1l1g aClivilJes
23 Returns on inwstments and servicing of finance
Other lterest received Interes paid on habihty to investors under FRSS
ct cash inGow from returns on lllvestments and senlcing of finance
24 Capital expenditure and financial illYestment
iurh3se of tangible fixed assets Sak of tangible fixed assets (see note 10) Deferred capnal grants receIved
Net cash outflow from capital expendllure and finanClallllestmcm
2()l4
CIIOO
12(46) 1C) ~ 21
( 11253 ) (64 0 )
(]3006) f~(24)
15 (3011 11)62
11
( 14 361
2004 (000
301 ( 1(1621
7611
2004 C()(l()
S57 70(1
SC)4T
ISoRO
lniversit~ College Cork arional tniversity of Ireland Cork
OTES TO THE ACCOCTS - continued
15 Financing 200-1 (000
Dht due within ant year Drclse 111 shon term hononn~
Dent due lyand one year Increase in long tenl1 borw1I1g
1et -ash inflow frorr financing
26 nalsis of changes in net debt At CashOows Other At I October Non cash 30 September
2003 changes 2004 POOH (000 POOO COOO
C~sh 111 hand and at hank 5 3 9Z l)vcrdrafts
539( (21)5021
Deht due within I year (-US6) 1C)[9 (~37)
Debt due after J vear 62R) (19) (7241 Llabilll to invctors under FRS (125) (24231 i
125 163f()4iTCltal
27 Related parties
Transactions Jh suhsidlanes of the UlllversllY have been eillninated on consdidauon and 11(1 disclosure or these transactIOn has therefore been gIven The Lnlerslty had the following transactIOns with related panics on 1 DeCember 1995 Irish Universitl Student Trust entered into a twent five year lease or AnlS 113 Mac Lemn from Lmverslty College Cork at an annual rental dE44A4J pel annum The trustees oflnsh UnirSH Studem Trust are the PrerdenL Secreta and Bursar and Fllance Officer elf ljmvcrsll Cork
l ninrsit College Cork ationaJ lininrsit~ of Ireland Cork
OTES TO THE ACC01T5 - COli tinned
8 Pcnsions
3 ~ PenSIon for substantiaEy all employees are funded through a defined henefit pension schemelt
The lniwrsl oper3tes a defined henefit penSlOll scheme wllh assets held 111 a separately admmlstered fund The total pension cost w the UniversHy ltas f14J)-4 Q 4J (2003 f12(J]-~13L The Illost recen uctuanul
aluation as undenaken as at 1 Octoher 2004 hy consuting actuanes uS1l1g the attained age methodlt The
princIpal assumptIon used in the actuarial valuatlOn was that the long-term annual rale of return on 1I1vestment would exceedtbe mcrease 111 pensionable earnIngs by 2) The 1ens1On and Trust Funds are not included 1I1
the Balance Sheet hecause they arc funds w1111 a separate COHSlltu1l0n from the general assets and ltabilJtie~ of the t11lerSlllaquo
t the date of tbe last actuaria I valuation the market aluc of the scheme s assets was sufTiclCl1t to cover 9lt
of the accrued liabilitleslt based on currcnt eammgs and also allowlllg for expected future mcreascs m eammgslt
The ul1lversny also operates a defmed contributIon penslOn scheme that covers cenain empl(1yees of the
ul11ersirvlt The assets of the scheme are invested by independent trustees for the benefit of these emplovees
ContributIOns to tim pension scheme for the year amounted to C02(il15 (2003 fJ A4F788I
b Financial Reporting STandard 1- Retirement Bellefirs disclosures
The alual1on of the Superannuation Plan benefits for the purposes of FRS 10 disclosures was based on the
results of the actuanal valuation ~aITlcd out as at 0 1102004 suItably adjusted to ~Onr()m1 to the requirements
of FRS 1- The impact of the penSlOn obligations of benchmarkmg awards due but not vet paid has been
mcluded The financlal assumptions used w calulate the retIrement cbltgatJons under FRS I were as follows
2004 2003
Valuation method Projected Projected Luit Luit
Dicou11l rate ) JlOdeg) )lt50
In118tio11 rale 250deg(1 250middot
Satan 1I1lTeases LO 450deg()
PenSlOll Supplemel1latlon 350l~middott 350o (J
t nhersity Coll(ge Cork gtational Lniversity of Ireland Cork
gtOTpound5 TO THE ACCOlgtTS continued
b Financial ReporrillK Standard 1- Rctircmcnr Bcncfirs discloswc (coltinued)
Th market value of the assets 111 the penSIOn schenk the expected rates of return and the hllgallOns as at 300920(11 togethe WIth the pnor vear arc ShC11 belo
2004 2003 cooo coon
Equities ~ ~5deg iJ 11Q708 800 1~346
Bonds -f ~()(I( 22456 150[0 lfd29
PropertY 65degu ImiddotUP 00( 14330
)Clsh 21 O()~() 2]0
TOW market alue of assets 1GL933 166623
Actual Value of Labilny
PenSlun Deficll
Related deferred tax Iiabiit~
et PellSlOn Llabi hty
Analysis of the amount that would have heen charg(d HI operating profit under FRS 17 is as foil () s
2004 2003 COOO (000
Curren Selce Cost 1710 1
Past SeTyice Cost
Tow Operatmg Charge
Analysis of the amount that would lUlVe been credited to other finance income under FRS]7 is as
follows
2004 2003 (000 COOIl
retum 011 s-heme asct~ 1U104
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
tniVCfsiry College Cork ttional Lniversiry of Ireland Cork
OTES TO THE ACC()l]TS - continued
11 Financial assets Consolid ated
2UO-l 2003 ((WO f(lOO
t nhersity 2004 2003
COOO COOO
InnSlInents at the veal end were held as follovs
( lthcr
3450
The investment in the Lmversllv Technology Centre Partnership ha~ been re31ued during the year tc the 3lue 0shythe Llmycrsny share inlhe partnership as at 31 December 2003
The tnhersity held an interest in the following subsidiary undertakings
Subsidhlry undertakings
Incorporated
Propem ianagement (LeC) Limited
Campm ccommOdali(111 C) Limned
Art Gallery (liCC) Limiled
Brcnard Limited
1ardykc LeIsure (U ce) Limited
At Ie Press Limited
(iivlC Holding~ Limlled
11 Stocks
Consumables
FIlllshed goods for resale
Prindplil activity
Property development
Accommodation rcntal
11 gallery
Leasing or lands
PublIshing
Dornnnt
Interest 0 0
J00
100
100
100
1(lOo
Consolidated
2004 2003 COOO (0110
65
Registered officeplace of business
City Chamhers 4
Cork
limversl1Y Cork Aestern Road Cork University Cork Vestern Road Cork University College Cork Western Road Cork liniversiry College Cork Western Road Cork Crawford Business Park Crosses Green Cork St Kildas Western Road Cork
Clliversity
O()4 2001 [(lOU COOO
36
fhere io no malcnal difference between the balance sheet amount of slOcks and Its replacement cost
13 Debtors
Trad- debtors
Res-arh grants and colllraCls receiabk
nwunts due from suhsldmrv undertakings
Slale gr~ml reciabk
(lther tJJtWIl and s(lcial Illsurancc
Other deotiJrs
C ollsolida ted Llliycrsif
2(104 2003 2004 200 [000 COOO COOO f(I00
S34 -Li06 67U
601 753 6015 j J0(
1~S26 766 12S~6
11 -- 3 f~ 51 t
lJ
~ q()l --l12(j( ~ ~
CnhlIsit~ College Cork ationallniersity of Ireland Cork
OTES TO THE CCOCTS - continued
1-1 Creditors Amounts fallillg due within Dill year Consolidated lnjyersit~
20114 2003 2004 2003 COOO COOO [000 C(lOU
Trad rcdjtor~ 7501 Cl295 (702
Research grants and contracts III advance I(i5 5 1150i 1U5~ -cademic fee~ receied in advance 11(1()4 QOM 110CJ4 ()01gt4
State grant receied m advance 118 I 1535 513~ Bank loans 8 overdrafts (note 16) 3O 39 416 1606 333~
Amounts owed to subsidiary undenakmgs -113 4SS~
Other taxatIOn and SOCIal security -+394 0 41 42()9 SAl (i
Deftrred incJll1e 19(3 9131
Other creditors 8 accruals lOOARA R9~~
15 Creditors Amounts falling due after one year Consolidated linivcrsi t)
200-1 2003 2004 20U3 ((lOO COOO (000 COOO
Bank loans (note 16) ~ 1 - -_-
16 Borrowings Consolidated University
2004 2003 2004 2003 (000 (000 fOOO (IOU
Bank loans and overdrafts
Bank loan and oerdrafts are repayable as follows
III one year or less 3073Q 41 6 8606 33~
O~(Between one and twe veal 221 1693 1ampshy
Between two ard 11 H years 872 (i 104 604Q 3+05
In fiC y~ar or more
TCHal 6360 1 3400( I ~~ ~
ature and Securiry of Borrowings stated tn Note 10 F1Xed Assets hae been accounted for in accordance with FRS 5 The ab[)vc liabilIl16 represent the uhimate lwbilitie to repurchase the assct~ concerned The borrowJI1gs arc secured bv title until the repurchae takes place
lniYlrsit Colleu ( Cork -ational lniversity of Ireland Cork
-OTES TO THE ACCOCTS - continued
1~ Deferred capital grants HEA
COOO
Other grants and
benefactors (000
Total
COOO
C olsolida ted
At 1 October 2003
BuJldmg~
EJuipment
Tota
414 45677 8-31
Cash received Buildmg
Equipment
Tolal
b53-l 153~5 -l U59
Released to income and expenditure
Buildmgs
Equipment
TClaj
1449 )
~
9~3
1-1 ---
) iii _) shy
1L~~~
At 3() Septemher 20()t
B u ild 1111
Equipmem
T pta I
66639
7(91
600 i 9
-09A
I 6-] ~
14UltC)
l ni(~rsit C olieo ( Cork arional Cnhersity of Ireland Cork
OTES TO THE ACCOl1TS - continued
1i Deferred capital grants continued HEA
(non
t niersity
At 1 October 21Hl3
B uil dlllb
Eqmpmem
Total
Cash received
Buddmggt EqUIpment
TOla
Released to income and expenditur( 1 1 7Buildmg )
Equipmcl1l
Total )S3
At 30 September 200
Buildll1g~ 61324
EqUlpmcm Tora (~=5
IS Revaluation reser( Consolidated
2004 2003 (lOO ((lOU
At 1 October as pcr nOle 10) 135940
Reuluatlons or inesrmerm in the penod InOle I 1
t W Serlember
Other gran IS Total and
henefactors (000 COOO
3515 -=37(J
81 2149
4465 7i ~
XXh(1
51627 112951
~65(1
6()
Lnjcrsity 200 20()3
f ono C 000
35040
lniYcrsiry Collegl Cork iarional Llliycrsit~ of Ireland Cork
iOTES TO THE ACCOl1TS - continued
1(J Reconciliation of movcment of reservcs Revenue Revaluation Total reserves reserves
COOO pound1000 ooo
Consolidattd
1 I October 211(0shy 6]90
D(bcll on comlllumg l)perations revaluation
I ( Septemher 20(14
middott I Octoher 2003 13940 126241
Deficll or eommumg operations revaluation
3( September 2004 1RR~]
W Contingencies
The U11lversil from tIme ll time is party to yariow legal proceedings The Offieers of the University havc been mlormed hy then legal advisors that it is not possibie at this time to make a rellable estimme of the finanCIal effects (if an~l of tiles cases
t 3( September 2004 a cO1ll1gent lIabIlity existed in respect of potential Value Added Tax in the amoum of C2 rmbon together with substantial potential imeresl and penalties This potentIa] habilItv was setllc~d in January 006 at a lesser amount and the effect on the Income and Expenditure -ecount is no material
21 Capital commitments Consolidatcd Univcrsity
2004 2003 2004 2003 (000 (000 COOO (000
Comracted for but nO promiddotided 69143
Authorised but not omracted out 18304 i 49]Q
tninrsity College Cork ationa lniversity of Ireland Cork
OTES TO THE AccorTS - (ontillucmiddotd
Reconciliation of consolidated operating deficit to net cash outflow from operating activities
Dilcit on conlJnuing operalJons afier depreciation of assets at valuatlOn Dcpr(clat10n D~fcfT(d apital grants released W income Proiit on dIsposal of tangible fixed as~ets D~rcase m stocks Increase m debtors
Drcflse m creditors
on cash changes lmerest receivable Imerest em Iiabiliy 10 Investors under FRS Increase m invcstment aluation
et cash outflow from opernt1l1g aClivilJes
23 Returns on inwstments and servicing of finance
Other lterest received Interes paid on habihty to investors under FRSS
ct cash inGow from returns on lllvestments and senlcing of finance
24 Capital expenditure and financial illYestment
iurh3se of tangible fixed assets Sak of tangible fixed assets (see note 10) Deferred capnal grants receIved
Net cash outflow from capital expendllure and finanClallllestmcm
2()l4
CIIOO
12(46) 1C) ~ 21
( 11253 ) (64 0 )
(]3006) f~(24)
15 (3011 11)62
11
( 14 361
2004 (000
301 ( 1(1621
7611
2004 C()(l()
S57 70(1
SC)4T
ISoRO
lniversit~ College Cork arional tniversity of Ireland Cork
OTES TO THE ACCOCTS - continued
15 Financing 200-1 (000
Dht due within ant year Drclse 111 shon term hononn~
Dent due lyand one year Increase in long tenl1 borw1I1g
1et -ash inflow frorr financing
26 nalsis of changes in net debt At CashOows Other At I October Non cash 30 September
2003 changes 2004 POOH (000 POOO COOO
C~sh 111 hand and at hank 5 3 9Z l)vcrdrafts
539( (21)5021
Deht due within I year (-US6) 1C)[9 (~37)
Debt due after J vear 62R) (19) (7241 Llabilll to invctors under FRS (125) (24231 i
125 163f()4iTCltal
27 Related parties
Transactions Jh suhsidlanes of the UlllversllY have been eillninated on consdidauon and 11(1 disclosure or these transactIOn has therefore been gIven The Lnlerslty had the following transactIOns with related panics on 1 DeCember 1995 Irish Universitl Student Trust entered into a twent five year lease or AnlS 113 Mac Lemn from Lmverslty College Cork at an annual rental dE44A4J pel annum The trustees oflnsh UnirSH Studem Trust are the PrerdenL Secreta and Bursar and Fllance Officer elf ljmvcrsll Cork
l ninrsit College Cork ationaJ lininrsit~ of Ireland Cork
OTES TO THE ACC01T5 - COli tinned
8 Pcnsions
3 ~ PenSIon for substantiaEy all employees are funded through a defined henefit pension schemelt
The lniwrsl oper3tes a defined henefit penSlOll scheme wllh assets held 111 a separately admmlstered fund The total pension cost w the UniversHy ltas f14J)-4 Q 4J (2003 f12(J]-~13L The Illost recen uctuanul
aluation as undenaken as at 1 Octoher 2004 hy consuting actuanes uS1l1g the attained age methodlt The
princIpal assumptIon used in the actuarial valuatlOn was that the long-term annual rale of return on 1I1vestment would exceedtbe mcrease 111 pensionable earnIngs by 2) The 1ens1On and Trust Funds are not included 1I1
the Balance Sheet hecause they arc funds w1111 a separate COHSlltu1l0n from the general assets and ltabilJtie~ of the t11lerSlllaquo
t the date of tbe last actuaria I valuation the market aluc of the scheme s assets was sufTiclCl1t to cover 9lt
of the accrued liabilitleslt based on currcnt eammgs and also allowlllg for expected future mcreascs m eammgslt
The ul1lversny also operates a defmed contributIon penslOn scheme that covers cenain empl(1yees of the
ul11ersirvlt The assets of the scheme are invested by independent trustees for the benefit of these emplovees
ContributIOns to tim pension scheme for the year amounted to C02(il15 (2003 fJ A4F788I
b Financial Reporting STandard 1- Retirement Bellefirs disclosures
The alual1on of the Superannuation Plan benefits for the purposes of FRS 10 disclosures was based on the
results of the actuanal valuation ~aITlcd out as at 0 1102004 suItably adjusted to ~Onr()m1 to the requirements
of FRS 1- The impact of the penSlOn obligations of benchmarkmg awards due but not vet paid has been
mcluded The financlal assumptions used w calulate the retIrement cbltgatJons under FRS I were as follows
2004 2003
Valuation method Projected Projected Luit Luit
Dicou11l rate ) JlOdeg) )lt50
In118tio11 rale 250deg(1 250middot
Satan 1I1lTeases LO 450deg()
PenSlOll Supplemel1latlon 350l~middott 350o (J
t nhersity Coll(ge Cork gtational Lniversity of Ireland Cork
gtOTpound5 TO THE ACCOlgtTS continued
b Financial ReporrillK Standard 1- Rctircmcnr Bcncfirs discloswc (coltinued)
Th market value of the assets 111 the penSIOn schenk the expected rates of return and the hllgallOns as at 300920(11 togethe WIth the pnor vear arc ShC11 belo
2004 2003 cooo coon
Equities ~ ~5deg iJ 11Q708 800 1~346
Bonds -f ~()(I( 22456 150[0 lfd29
PropertY 65degu ImiddotUP 00( 14330
)Clsh 21 O()~() 2]0
TOW market alue of assets 1GL933 166623
Actual Value of Labilny
PenSlun Deficll
Related deferred tax Iiabiit~
et PellSlOn Llabi hty
Analysis of the amount that would have heen charg(d HI operating profit under FRS 17 is as foil () s
2004 2003 COOO (000
Curren Selce Cost 1710 1
Past SeTyice Cost
Tow Operatmg Charge
Analysis of the amount that would lUlVe been credited to other finance income under FRS]7 is as
follows
2004 2003 (000 COOIl
retum 011 s-heme asct~ 1U104
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
CnhlIsit~ College Cork ationallniersity of Ireland Cork
OTES TO THE CCOCTS - continued
1-1 Creditors Amounts fallillg due within Dill year Consolidated lnjyersit~
20114 2003 2004 2003 COOO COOO [000 C(lOU
Trad rcdjtor~ 7501 Cl295 (702
Research grants and contracts III advance I(i5 5 1150i 1U5~ -cademic fee~ receied in advance 11(1()4 QOM 110CJ4 ()01gt4
State grant receied m advance 118 I 1535 513~ Bank loans 8 overdrafts (note 16) 3O 39 416 1606 333~
Amounts owed to subsidiary undenakmgs -113 4SS~
Other taxatIOn and SOCIal security -+394 0 41 42()9 SAl (i
Deftrred incJll1e 19(3 9131
Other creditors 8 accruals lOOARA R9~~
15 Creditors Amounts falling due after one year Consolidated linivcrsi t)
200-1 2003 2004 20U3 ((lOO COOO (000 COOO
Bank loans (note 16) ~ 1 - -_-
16 Borrowings Consolidated University
2004 2003 2004 2003 (000 (000 fOOO (IOU
Bank loans and overdrafts
Bank loan and oerdrafts are repayable as follows
III one year or less 3073Q 41 6 8606 33~
O~(Between one and twe veal 221 1693 1ampshy
Between two ard 11 H years 872 (i 104 604Q 3+05
In fiC y~ar or more
TCHal 6360 1 3400( I ~~ ~
ature and Securiry of Borrowings stated tn Note 10 F1Xed Assets hae been accounted for in accordance with FRS 5 The ab[)vc liabilIl16 represent the uhimate lwbilitie to repurchase the assct~ concerned The borrowJI1gs arc secured bv title until the repurchae takes place
lniYlrsit Colleu ( Cork -ational lniversity of Ireland Cork
-OTES TO THE ACCOCTS - continued
1~ Deferred capital grants HEA
COOO
Other grants and
benefactors (000
Total
COOO
C olsolida ted
At 1 October 2003
BuJldmg~
EJuipment
Tota
414 45677 8-31
Cash received Buildmg
Equipment
Tolal
b53-l 153~5 -l U59
Released to income and expenditure
Buildmgs
Equipment
TClaj
1449 )
~
9~3
1-1 ---
) iii _) shy
1L~~~
At 3() Septemher 20()t
B u ild 1111
Equipmem
T pta I
66639
7(91
600 i 9
-09A
I 6-] ~
14UltC)
l ni(~rsit C olieo ( Cork arional Cnhersity of Ireland Cork
OTES TO THE ACCOl1TS - continued
1i Deferred capital grants continued HEA
(non
t niersity
At 1 October 21Hl3
B uil dlllb
Eqmpmem
Total
Cash received
Buddmggt EqUIpment
TOla
Released to income and expenditur( 1 1 7Buildmg )
Equipmcl1l
Total )S3
At 30 September 200
Buildll1g~ 61324
EqUlpmcm Tora (~=5
IS Revaluation reser( Consolidated
2004 2003 (lOO ((lOU
At 1 October as pcr nOle 10) 135940
Reuluatlons or inesrmerm in the penod InOle I 1
t W Serlember
Other gran IS Total and
henefactors (000 COOO
3515 -=37(J
81 2149
4465 7i ~
XXh(1
51627 112951
~65(1
6()
Lnjcrsity 200 20()3
f ono C 000
35040
lniYcrsiry Collegl Cork iarional Llliycrsit~ of Ireland Cork
iOTES TO THE ACCOl1TS - continued
1(J Reconciliation of movcment of reservcs Revenue Revaluation Total reserves reserves
COOO pound1000 ooo
Consolidattd
1 I October 211(0shy 6]90
D(bcll on comlllumg l)perations revaluation
I ( Septemher 20(14
middott I Octoher 2003 13940 126241
Deficll or eommumg operations revaluation
3( September 2004 1RR~]
W Contingencies
The U11lversil from tIme ll time is party to yariow legal proceedings The Offieers of the University havc been mlormed hy then legal advisors that it is not possibie at this time to make a rellable estimme of the finanCIal effects (if an~l of tiles cases
t 3( September 2004 a cO1ll1gent lIabIlity existed in respect of potential Value Added Tax in the amoum of C2 rmbon together with substantial potential imeresl and penalties This potentIa] habilItv was setllc~d in January 006 at a lesser amount and the effect on the Income and Expenditure -ecount is no material
21 Capital commitments Consolidatcd Univcrsity
2004 2003 2004 2003 (000 (000 COOO (000
Comracted for but nO promiddotided 69143
Authorised but not omracted out 18304 i 49]Q
tninrsity College Cork ationa lniversity of Ireland Cork
OTES TO THE AccorTS - (ontillucmiddotd
Reconciliation of consolidated operating deficit to net cash outflow from operating activities
Dilcit on conlJnuing operalJons afier depreciation of assets at valuatlOn Dcpr(clat10n D~fcfT(d apital grants released W income Proiit on dIsposal of tangible fixed as~ets D~rcase m stocks Increase m debtors
Drcflse m creditors
on cash changes lmerest receivable Imerest em Iiabiliy 10 Investors under FRS Increase m invcstment aluation
et cash outflow from opernt1l1g aClivilJes
23 Returns on inwstments and servicing of finance
Other lterest received Interes paid on habihty to investors under FRSS
ct cash inGow from returns on lllvestments and senlcing of finance
24 Capital expenditure and financial illYestment
iurh3se of tangible fixed assets Sak of tangible fixed assets (see note 10) Deferred capnal grants receIved
Net cash outflow from capital expendllure and finanClallllestmcm
2()l4
CIIOO
12(46) 1C) ~ 21
( 11253 ) (64 0 )
(]3006) f~(24)
15 (3011 11)62
11
( 14 361
2004 (000
301 ( 1(1621
7611
2004 C()(l()
S57 70(1
SC)4T
ISoRO
lniversit~ College Cork arional tniversity of Ireland Cork
OTES TO THE ACCOCTS - continued
15 Financing 200-1 (000
Dht due within ant year Drclse 111 shon term hononn~
Dent due lyand one year Increase in long tenl1 borw1I1g
1et -ash inflow frorr financing
26 nalsis of changes in net debt At CashOows Other At I October Non cash 30 September
2003 changes 2004 POOH (000 POOO COOO
C~sh 111 hand and at hank 5 3 9Z l)vcrdrafts
539( (21)5021
Deht due within I year (-US6) 1C)[9 (~37)
Debt due after J vear 62R) (19) (7241 Llabilll to invctors under FRS (125) (24231 i
125 163f()4iTCltal
27 Related parties
Transactions Jh suhsidlanes of the UlllversllY have been eillninated on consdidauon and 11(1 disclosure or these transactIOn has therefore been gIven The Lnlerslty had the following transactIOns with related panics on 1 DeCember 1995 Irish Universitl Student Trust entered into a twent five year lease or AnlS 113 Mac Lemn from Lmverslty College Cork at an annual rental dE44A4J pel annum The trustees oflnsh UnirSH Studem Trust are the PrerdenL Secreta and Bursar and Fllance Officer elf ljmvcrsll Cork
l ninrsit College Cork ationaJ lininrsit~ of Ireland Cork
OTES TO THE ACC01T5 - COli tinned
8 Pcnsions
3 ~ PenSIon for substantiaEy all employees are funded through a defined henefit pension schemelt
The lniwrsl oper3tes a defined henefit penSlOll scheme wllh assets held 111 a separately admmlstered fund The total pension cost w the UniversHy ltas f14J)-4 Q 4J (2003 f12(J]-~13L The Illost recen uctuanul
aluation as undenaken as at 1 Octoher 2004 hy consuting actuanes uS1l1g the attained age methodlt The
princIpal assumptIon used in the actuarial valuatlOn was that the long-term annual rale of return on 1I1vestment would exceedtbe mcrease 111 pensionable earnIngs by 2) The 1ens1On and Trust Funds are not included 1I1
the Balance Sheet hecause they arc funds w1111 a separate COHSlltu1l0n from the general assets and ltabilJtie~ of the t11lerSlllaquo
t the date of tbe last actuaria I valuation the market aluc of the scheme s assets was sufTiclCl1t to cover 9lt
of the accrued liabilitleslt based on currcnt eammgs and also allowlllg for expected future mcreascs m eammgslt
The ul1lversny also operates a defmed contributIon penslOn scheme that covers cenain empl(1yees of the
ul11ersirvlt The assets of the scheme are invested by independent trustees for the benefit of these emplovees
ContributIOns to tim pension scheme for the year amounted to C02(il15 (2003 fJ A4F788I
b Financial Reporting STandard 1- Retirement Bellefirs disclosures
The alual1on of the Superannuation Plan benefits for the purposes of FRS 10 disclosures was based on the
results of the actuanal valuation ~aITlcd out as at 0 1102004 suItably adjusted to ~Onr()m1 to the requirements
of FRS 1- The impact of the penSlOn obligations of benchmarkmg awards due but not vet paid has been
mcluded The financlal assumptions used w calulate the retIrement cbltgatJons under FRS I were as follows
2004 2003
Valuation method Projected Projected Luit Luit
Dicou11l rate ) JlOdeg) )lt50
In118tio11 rale 250deg(1 250middot
Satan 1I1lTeases LO 450deg()
PenSlOll Supplemel1latlon 350l~middott 350o (J
t nhersity Coll(ge Cork gtational Lniversity of Ireland Cork
gtOTpound5 TO THE ACCOlgtTS continued
b Financial ReporrillK Standard 1- Rctircmcnr Bcncfirs discloswc (coltinued)
Th market value of the assets 111 the penSIOn schenk the expected rates of return and the hllgallOns as at 300920(11 togethe WIth the pnor vear arc ShC11 belo
2004 2003 cooo coon
Equities ~ ~5deg iJ 11Q708 800 1~346
Bonds -f ~()(I( 22456 150[0 lfd29
PropertY 65degu ImiddotUP 00( 14330
)Clsh 21 O()~() 2]0
TOW market alue of assets 1GL933 166623
Actual Value of Labilny
PenSlun Deficll
Related deferred tax Iiabiit~
et PellSlOn Llabi hty
Analysis of the amount that would have heen charg(d HI operating profit under FRS 17 is as foil () s
2004 2003 COOO (000
Curren Selce Cost 1710 1
Past SeTyice Cost
Tow Operatmg Charge
Analysis of the amount that would lUlVe been credited to other finance income under FRS]7 is as
follows
2004 2003 (000 COOIl
retum 011 s-heme asct~ 1U104
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
lniYlrsit Colleu ( Cork -ational lniversity of Ireland Cork
-OTES TO THE ACCOCTS - continued
1~ Deferred capital grants HEA
COOO
Other grants and
benefactors (000
Total
COOO
C olsolida ted
At 1 October 2003
BuJldmg~
EJuipment
Tota
414 45677 8-31
Cash received Buildmg
Equipment
Tolal
b53-l 153~5 -l U59
Released to income and expenditure
Buildmgs
Equipment
TClaj
1449 )
~
9~3
1-1 ---
) iii _) shy
1L~~~
At 3() Septemher 20()t
B u ild 1111
Equipmem
T pta I
66639
7(91
600 i 9
-09A
I 6-] ~
14UltC)
l ni(~rsit C olieo ( Cork arional Cnhersity of Ireland Cork
OTES TO THE ACCOl1TS - continued
1i Deferred capital grants continued HEA
(non
t niersity
At 1 October 21Hl3
B uil dlllb
Eqmpmem
Total
Cash received
Buddmggt EqUIpment
TOla
Released to income and expenditur( 1 1 7Buildmg )
Equipmcl1l
Total )S3
At 30 September 200
Buildll1g~ 61324
EqUlpmcm Tora (~=5
IS Revaluation reser( Consolidated
2004 2003 (lOO ((lOU
At 1 October as pcr nOle 10) 135940
Reuluatlons or inesrmerm in the penod InOle I 1
t W Serlember
Other gran IS Total and
henefactors (000 COOO
3515 -=37(J
81 2149
4465 7i ~
XXh(1
51627 112951
~65(1
6()
Lnjcrsity 200 20()3
f ono C 000
35040
lniYcrsiry Collegl Cork iarional Llliycrsit~ of Ireland Cork
iOTES TO THE ACCOl1TS - continued
1(J Reconciliation of movcment of reservcs Revenue Revaluation Total reserves reserves
COOO pound1000 ooo
Consolidattd
1 I October 211(0shy 6]90
D(bcll on comlllumg l)perations revaluation
I ( Septemher 20(14
middott I Octoher 2003 13940 126241
Deficll or eommumg operations revaluation
3( September 2004 1RR~]
W Contingencies
The U11lversil from tIme ll time is party to yariow legal proceedings The Offieers of the University havc been mlormed hy then legal advisors that it is not possibie at this time to make a rellable estimme of the finanCIal effects (if an~l of tiles cases
t 3( September 2004 a cO1ll1gent lIabIlity existed in respect of potential Value Added Tax in the amoum of C2 rmbon together with substantial potential imeresl and penalties This potentIa] habilItv was setllc~d in January 006 at a lesser amount and the effect on the Income and Expenditure -ecount is no material
21 Capital commitments Consolidatcd Univcrsity
2004 2003 2004 2003 (000 (000 COOO (000
Comracted for but nO promiddotided 69143
Authorised but not omracted out 18304 i 49]Q
tninrsity College Cork ationa lniversity of Ireland Cork
OTES TO THE AccorTS - (ontillucmiddotd
Reconciliation of consolidated operating deficit to net cash outflow from operating activities
Dilcit on conlJnuing operalJons afier depreciation of assets at valuatlOn Dcpr(clat10n D~fcfT(d apital grants released W income Proiit on dIsposal of tangible fixed as~ets D~rcase m stocks Increase m debtors
Drcflse m creditors
on cash changes lmerest receivable Imerest em Iiabiliy 10 Investors under FRS Increase m invcstment aluation
et cash outflow from opernt1l1g aClivilJes
23 Returns on inwstments and servicing of finance
Other lterest received Interes paid on habihty to investors under FRSS
ct cash inGow from returns on lllvestments and senlcing of finance
24 Capital expenditure and financial illYestment
iurh3se of tangible fixed assets Sak of tangible fixed assets (see note 10) Deferred capnal grants receIved
Net cash outflow from capital expendllure and finanClallllestmcm
2()l4
CIIOO
12(46) 1C) ~ 21
( 11253 ) (64 0 )
(]3006) f~(24)
15 (3011 11)62
11
( 14 361
2004 (000
301 ( 1(1621
7611
2004 C()(l()
S57 70(1
SC)4T
ISoRO
lniversit~ College Cork arional tniversity of Ireland Cork
OTES TO THE ACCOCTS - continued
15 Financing 200-1 (000
Dht due within ant year Drclse 111 shon term hononn~
Dent due lyand one year Increase in long tenl1 borw1I1g
1et -ash inflow frorr financing
26 nalsis of changes in net debt At CashOows Other At I October Non cash 30 September
2003 changes 2004 POOH (000 POOO COOO
C~sh 111 hand and at hank 5 3 9Z l)vcrdrafts
539( (21)5021
Deht due within I year (-US6) 1C)[9 (~37)
Debt due after J vear 62R) (19) (7241 Llabilll to invctors under FRS (125) (24231 i
125 163f()4iTCltal
27 Related parties
Transactions Jh suhsidlanes of the UlllversllY have been eillninated on consdidauon and 11(1 disclosure or these transactIOn has therefore been gIven The Lnlerslty had the following transactIOns with related panics on 1 DeCember 1995 Irish Universitl Student Trust entered into a twent five year lease or AnlS 113 Mac Lemn from Lmverslty College Cork at an annual rental dE44A4J pel annum The trustees oflnsh UnirSH Studem Trust are the PrerdenL Secreta and Bursar and Fllance Officer elf ljmvcrsll Cork
l ninrsit College Cork ationaJ lininrsit~ of Ireland Cork
OTES TO THE ACC01T5 - COli tinned
8 Pcnsions
3 ~ PenSIon for substantiaEy all employees are funded through a defined henefit pension schemelt
The lniwrsl oper3tes a defined henefit penSlOll scheme wllh assets held 111 a separately admmlstered fund The total pension cost w the UniversHy ltas f14J)-4 Q 4J (2003 f12(J]-~13L The Illost recen uctuanul
aluation as undenaken as at 1 Octoher 2004 hy consuting actuanes uS1l1g the attained age methodlt The
princIpal assumptIon used in the actuarial valuatlOn was that the long-term annual rale of return on 1I1vestment would exceedtbe mcrease 111 pensionable earnIngs by 2) The 1ens1On and Trust Funds are not included 1I1
the Balance Sheet hecause they arc funds w1111 a separate COHSlltu1l0n from the general assets and ltabilJtie~ of the t11lerSlllaquo
t the date of tbe last actuaria I valuation the market aluc of the scheme s assets was sufTiclCl1t to cover 9lt
of the accrued liabilitleslt based on currcnt eammgs and also allowlllg for expected future mcreascs m eammgslt
The ul1lversny also operates a defmed contributIon penslOn scheme that covers cenain empl(1yees of the
ul11ersirvlt The assets of the scheme are invested by independent trustees for the benefit of these emplovees
ContributIOns to tim pension scheme for the year amounted to C02(il15 (2003 fJ A4F788I
b Financial Reporting STandard 1- Retirement Bellefirs disclosures
The alual1on of the Superannuation Plan benefits for the purposes of FRS 10 disclosures was based on the
results of the actuanal valuation ~aITlcd out as at 0 1102004 suItably adjusted to ~Onr()m1 to the requirements
of FRS 1- The impact of the penSlOn obligations of benchmarkmg awards due but not vet paid has been
mcluded The financlal assumptions used w calulate the retIrement cbltgatJons under FRS I were as follows
2004 2003
Valuation method Projected Projected Luit Luit
Dicou11l rate ) JlOdeg) )lt50
In118tio11 rale 250deg(1 250middot
Satan 1I1lTeases LO 450deg()
PenSlOll Supplemel1latlon 350l~middott 350o (J
t nhersity Coll(ge Cork gtational Lniversity of Ireland Cork
gtOTpound5 TO THE ACCOlgtTS continued
b Financial ReporrillK Standard 1- Rctircmcnr Bcncfirs discloswc (coltinued)
Th market value of the assets 111 the penSIOn schenk the expected rates of return and the hllgallOns as at 300920(11 togethe WIth the pnor vear arc ShC11 belo
2004 2003 cooo coon
Equities ~ ~5deg iJ 11Q708 800 1~346
Bonds -f ~()(I( 22456 150[0 lfd29
PropertY 65degu ImiddotUP 00( 14330
)Clsh 21 O()~() 2]0
TOW market alue of assets 1GL933 166623
Actual Value of Labilny
PenSlun Deficll
Related deferred tax Iiabiit~
et PellSlOn Llabi hty
Analysis of the amount that would have heen charg(d HI operating profit under FRS 17 is as foil () s
2004 2003 COOO (000
Curren Selce Cost 1710 1
Past SeTyice Cost
Tow Operatmg Charge
Analysis of the amount that would lUlVe been credited to other finance income under FRS]7 is as
follows
2004 2003 (000 COOIl
retum 011 s-heme asct~ 1U104
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
l ni(~rsit C olieo ( Cork arional Cnhersity of Ireland Cork
OTES TO THE ACCOl1TS - continued
1i Deferred capital grants continued HEA
(non
t niersity
At 1 October 21Hl3
B uil dlllb
Eqmpmem
Total
Cash received
Buddmggt EqUIpment
TOla
Released to income and expenditur( 1 1 7Buildmg )
Equipmcl1l
Total )S3
At 30 September 200
Buildll1g~ 61324
EqUlpmcm Tora (~=5
IS Revaluation reser( Consolidated
2004 2003 (lOO ((lOU
At 1 October as pcr nOle 10) 135940
Reuluatlons or inesrmerm in the penod InOle I 1
t W Serlember
Other gran IS Total and
henefactors (000 COOO
3515 -=37(J
81 2149
4465 7i ~
XXh(1
51627 112951
~65(1
6()
Lnjcrsity 200 20()3
f ono C 000
35040
lniYcrsiry Collegl Cork iarional Llliycrsit~ of Ireland Cork
iOTES TO THE ACCOl1TS - continued
1(J Reconciliation of movcment of reservcs Revenue Revaluation Total reserves reserves
COOO pound1000 ooo
Consolidattd
1 I October 211(0shy 6]90
D(bcll on comlllumg l)perations revaluation
I ( Septemher 20(14
middott I Octoher 2003 13940 126241
Deficll or eommumg operations revaluation
3( September 2004 1RR~]
W Contingencies
The U11lversil from tIme ll time is party to yariow legal proceedings The Offieers of the University havc been mlormed hy then legal advisors that it is not possibie at this time to make a rellable estimme of the finanCIal effects (if an~l of tiles cases
t 3( September 2004 a cO1ll1gent lIabIlity existed in respect of potential Value Added Tax in the amoum of C2 rmbon together with substantial potential imeresl and penalties This potentIa] habilItv was setllc~d in January 006 at a lesser amount and the effect on the Income and Expenditure -ecount is no material
21 Capital commitments Consolidatcd Univcrsity
2004 2003 2004 2003 (000 (000 COOO (000
Comracted for but nO promiddotided 69143
Authorised but not omracted out 18304 i 49]Q
tninrsity College Cork ationa lniversity of Ireland Cork
OTES TO THE AccorTS - (ontillucmiddotd
Reconciliation of consolidated operating deficit to net cash outflow from operating activities
Dilcit on conlJnuing operalJons afier depreciation of assets at valuatlOn Dcpr(clat10n D~fcfT(d apital grants released W income Proiit on dIsposal of tangible fixed as~ets D~rcase m stocks Increase m debtors
Drcflse m creditors
on cash changes lmerest receivable Imerest em Iiabiliy 10 Investors under FRS Increase m invcstment aluation
et cash outflow from opernt1l1g aClivilJes
23 Returns on inwstments and servicing of finance
Other lterest received Interes paid on habihty to investors under FRSS
ct cash inGow from returns on lllvestments and senlcing of finance
24 Capital expenditure and financial illYestment
iurh3se of tangible fixed assets Sak of tangible fixed assets (see note 10) Deferred capnal grants receIved
Net cash outflow from capital expendllure and finanClallllestmcm
2()l4
CIIOO
12(46) 1C) ~ 21
( 11253 ) (64 0 )
(]3006) f~(24)
15 (3011 11)62
11
( 14 361
2004 (000
301 ( 1(1621
7611
2004 C()(l()
S57 70(1
SC)4T
ISoRO
lniversit~ College Cork arional tniversity of Ireland Cork
OTES TO THE ACCOCTS - continued
15 Financing 200-1 (000
Dht due within ant year Drclse 111 shon term hononn~
Dent due lyand one year Increase in long tenl1 borw1I1g
1et -ash inflow frorr financing
26 nalsis of changes in net debt At CashOows Other At I October Non cash 30 September
2003 changes 2004 POOH (000 POOO COOO
C~sh 111 hand and at hank 5 3 9Z l)vcrdrafts
539( (21)5021
Deht due within I year (-US6) 1C)[9 (~37)
Debt due after J vear 62R) (19) (7241 Llabilll to invctors under FRS (125) (24231 i
125 163f()4iTCltal
27 Related parties
Transactions Jh suhsidlanes of the UlllversllY have been eillninated on consdidauon and 11(1 disclosure or these transactIOn has therefore been gIven The Lnlerslty had the following transactIOns with related panics on 1 DeCember 1995 Irish Universitl Student Trust entered into a twent five year lease or AnlS 113 Mac Lemn from Lmverslty College Cork at an annual rental dE44A4J pel annum The trustees oflnsh UnirSH Studem Trust are the PrerdenL Secreta and Bursar and Fllance Officer elf ljmvcrsll Cork
l ninrsit College Cork ationaJ lininrsit~ of Ireland Cork
OTES TO THE ACC01T5 - COli tinned
8 Pcnsions
3 ~ PenSIon for substantiaEy all employees are funded through a defined henefit pension schemelt
The lniwrsl oper3tes a defined henefit penSlOll scheme wllh assets held 111 a separately admmlstered fund The total pension cost w the UniversHy ltas f14J)-4 Q 4J (2003 f12(J]-~13L The Illost recen uctuanul
aluation as undenaken as at 1 Octoher 2004 hy consuting actuanes uS1l1g the attained age methodlt The
princIpal assumptIon used in the actuarial valuatlOn was that the long-term annual rale of return on 1I1vestment would exceedtbe mcrease 111 pensionable earnIngs by 2) The 1ens1On and Trust Funds are not included 1I1
the Balance Sheet hecause they arc funds w1111 a separate COHSlltu1l0n from the general assets and ltabilJtie~ of the t11lerSlllaquo
t the date of tbe last actuaria I valuation the market aluc of the scheme s assets was sufTiclCl1t to cover 9lt
of the accrued liabilitleslt based on currcnt eammgs and also allowlllg for expected future mcreascs m eammgslt
The ul1lversny also operates a defmed contributIon penslOn scheme that covers cenain empl(1yees of the
ul11ersirvlt The assets of the scheme are invested by independent trustees for the benefit of these emplovees
ContributIOns to tim pension scheme for the year amounted to C02(il15 (2003 fJ A4F788I
b Financial Reporting STandard 1- Retirement Bellefirs disclosures
The alual1on of the Superannuation Plan benefits for the purposes of FRS 10 disclosures was based on the
results of the actuanal valuation ~aITlcd out as at 0 1102004 suItably adjusted to ~Onr()m1 to the requirements
of FRS 1- The impact of the penSlOn obligations of benchmarkmg awards due but not vet paid has been
mcluded The financlal assumptions used w calulate the retIrement cbltgatJons under FRS I were as follows
2004 2003
Valuation method Projected Projected Luit Luit
Dicou11l rate ) JlOdeg) )lt50
In118tio11 rale 250deg(1 250middot
Satan 1I1lTeases LO 450deg()
PenSlOll Supplemel1latlon 350l~middott 350o (J
t nhersity Coll(ge Cork gtational Lniversity of Ireland Cork
gtOTpound5 TO THE ACCOlgtTS continued
b Financial ReporrillK Standard 1- Rctircmcnr Bcncfirs discloswc (coltinued)
Th market value of the assets 111 the penSIOn schenk the expected rates of return and the hllgallOns as at 300920(11 togethe WIth the pnor vear arc ShC11 belo
2004 2003 cooo coon
Equities ~ ~5deg iJ 11Q708 800 1~346
Bonds -f ~()(I( 22456 150[0 lfd29
PropertY 65degu ImiddotUP 00( 14330
)Clsh 21 O()~() 2]0
TOW market alue of assets 1GL933 166623
Actual Value of Labilny
PenSlun Deficll
Related deferred tax Iiabiit~
et PellSlOn Llabi hty
Analysis of the amount that would have heen charg(d HI operating profit under FRS 17 is as foil () s
2004 2003 COOO (000
Curren Selce Cost 1710 1
Past SeTyice Cost
Tow Operatmg Charge
Analysis of the amount that would lUlVe been credited to other finance income under FRS]7 is as
follows
2004 2003 (000 COOIl
retum 011 s-heme asct~ 1U104
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
lniYcrsiry Collegl Cork iarional Llliycrsit~ of Ireland Cork
iOTES TO THE ACCOl1TS - continued
1(J Reconciliation of movcment of reservcs Revenue Revaluation Total reserves reserves
COOO pound1000 ooo
Consolidattd
1 I October 211(0shy 6]90
D(bcll on comlllumg l)perations revaluation
I ( Septemher 20(14
middott I Octoher 2003 13940 126241
Deficll or eommumg operations revaluation
3( September 2004 1RR~]
W Contingencies
The U11lversil from tIme ll time is party to yariow legal proceedings The Offieers of the University havc been mlormed hy then legal advisors that it is not possibie at this time to make a rellable estimme of the finanCIal effects (if an~l of tiles cases
t 3( September 2004 a cO1ll1gent lIabIlity existed in respect of potential Value Added Tax in the amoum of C2 rmbon together with substantial potential imeresl and penalties This potentIa] habilItv was setllc~d in January 006 at a lesser amount and the effect on the Income and Expenditure -ecount is no material
21 Capital commitments Consolidatcd Univcrsity
2004 2003 2004 2003 (000 (000 COOO (000
Comracted for but nO promiddotided 69143
Authorised but not omracted out 18304 i 49]Q
tninrsity College Cork ationa lniversity of Ireland Cork
OTES TO THE AccorTS - (ontillucmiddotd
Reconciliation of consolidated operating deficit to net cash outflow from operating activities
Dilcit on conlJnuing operalJons afier depreciation of assets at valuatlOn Dcpr(clat10n D~fcfT(d apital grants released W income Proiit on dIsposal of tangible fixed as~ets D~rcase m stocks Increase m debtors
Drcflse m creditors
on cash changes lmerest receivable Imerest em Iiabiliy 10 Investors under FRS Increase m invcstment aluation
et cash outflow from opernt1l1g aClivilJes
23 Returns on inwstments and servicing of finance
Other lterest received Interes paid on habihty to investors under FRSS
ct cash inGow from returns on lllvestments and senlcing of finance
24 Capital expenditure and financial illYestment
iurh3se of tangible fixed assets Sak of tangible fixed assets (see note 10) Deferred capnal grants receIved
Net cash outflow from capital expendllure and finanClallllestmcm
2()l4
CIIOO
12(46) 1C) ~ 21
( 11253 ) (64 0 )
(]3006) f~(24)
15 (3011 11)62
11
( 14 361
2004 (000
301 ( 1(1621
7611
2004 C()(l()
S57 70(1
SC)4T
ISoRO
lniversit~ College Cork arional tniversity of Ireland Cork
OTES TO THE ACCOCTS - continued
15 Financing 200-1 (000
Dht due within ant year Drclse 111 shon term hononn~
Dent due lyand one year Increase in long tenl1 borw1I1g
1et -ash inflow frorr financing
26 nalsis of changes in net debt At CashOows Other At I October Non cash 30 September
2003 changes 2004 POOH (000 POOO COOO
C~sh 111 hand and at hank 5 3 9Z l)vcrdrafts
539( (21)5021
Deht due within I year (-US6) 1C)[9 (~37)
Debt due after J vear 62R) (19) (7241 Llabilll to invctors under FRS (125) (24231 i
125 163f()4iTCltal
27 Related parties
Transactions Jh suhsidlanes of the UlllversllY have been eillninated on consdidauon and 11(1 disclosure or these transactIOn has therefore been gIven The Lnlerslty had the following transactIOns with related panics on 1 DeCember 1995 Irish Universitl Student Trust entered into a twent five year lease or AnlS 113 Mac Lemn from Lmverslty College Cork at an annual rental dE44A4J pel annum The trustees oflnsh UnirSH Studem Trust are the PrerdenL Secreta and Bursar and Fllance Officer elf ljmvcrsll Cork
l ninrsit College Cork ationaJ lininrsit~ of Ireland Cork
OTES TO THE ACC01T5 - COli tinned
8 Pcnsions
3 ~ PenSIon for substantiaEy all employees are funded through a defined henefit pension schemelt
The lniwrsl oper3tes a defined henefit penSlOll scheme wllh assets held 111 a separately admmlstered fund The total pension cost w the UniversHy ltas f14J)-4 Q 4J (2003 f12(J]-~13L The Illost recen uctuanul
aluation as undenaken as at 1 Octoher 2004 hy consuting actuanes uS1l1g the attained age methodlt The
princIpal assumptIon used in the actuarial valuatlOn was that the long-term annual rale of return on 1I1vestment would exceedtbe mcrease 111 pensionable earnIngs by 2) The 1ens1On and Trust Funds are not included 1I1
the Balance Sheet hecause they arc funds w1111 a separate COHSlltu1l0n from the general assets and ltabilJtie~ of the t11lerSlllaquo
t the date of tbe last actuaria I valuation the market aluc of the scheme s assets was sufTiclCl1t to cover 9lt
of the accrued liabilitleslt based on currcnt eammgs and also allowlllg for expected future mcreascs m eammgslt
The ul1lversny also operates a defmed contributIon penslOn scheme that covers cenain empl(1yees of the
ul11ersirvlt The assets of the scheme are invested by independent trustees for the benefit of these emplovees
ContributIOns to tim pension scheme for the year amounted to C02(il15 (2003 fJ A4F788I
b Financial Reporting STandard 1- Retirement Bellefirs disclosures
The alual1on of the Superannuation Plan benefits for the purposes of FRS 10 disclosures was based on the
results of the actuanal valuation ~aITlcd out as at 0 1102004 suItably adjusted to ~Onr()m1 to the requirements
of FRS 1- The impact of the penSlOn obligations of benchmarkmg awards due but not vet paid has been
mcluded The financlal assumptions used w calulate the retIrement cbltgatJons under FRS I were as follows
2004 2003
Valuation method Projected Projected Luit Luit
Dicou11l rate ) JlOdeg) )lt50
In118tio11 rale 250deg(1 250middot
Satan 1I1lTeases LO 450deg()
PenSlOll Supplemel1latlon 350l~middott 350o (J
t nhersity Coll(ge Cork gtational Lniversity of Ireland Cork
gtOTpound5 TO THE ACCOlgtTS continued
b Financial ReporrillK Standard 1- Rctircmcnr Bcncfirs discloswc (coltinued)
Th market value of the assets 111 the penSIOn schenk the expected rates of return and the hllgallOns as at 300920(11 togethe WIth the pnor vear arc ShC11 belo
2004 2003 cooo coon
Equities ~ ~5deg iJ 11Q708 800 1~346
Bonds -f ~()(I( 22456 150[0 lfd29
PropertY 65degu ImiddotUP 00( 14330
)Clsh 21 O()~() 2]0
TOW market alue of assets 1GL933 166623
Actual Value of Labilny
PenSlun Deficll
Related deferred tax Iiabiit~
et PellSlOn Llabi hty
Analysis of the amount that would have heen charg(d HI operating profit under FRS 17 is as foil () s
2004 2003 COOO (000
Curren Selce Cost 1710 1
Past SeTyice Cost
Tow Operatmg Charge
Analysis of the amount that would lUlVe been credited to other finance income under FRS]7 is as
follows
2004 2003 (000 COOIl
retum 011 s-heme asct~ 1U104
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
tninrsity College Cork ationa lniversity of Ireland Cork
OTES TO THE AccorTS - (ontillucmiddotd
Reconciliation of consolidated operating deficit to net cash outflow from operating activities
Dilcit on conlJnuing operalJons afier depreciation of assets at valuatlOn Dcpr(clat10n D~fcfT(d apital grants released W income Proiit on dIsposal of tangible fixed as~ets D~rcase m stocks Increase m debtors
Drcflse m creditors
on cash changes lmerest receivable Imerest em Iiabiliy 10 Investors under FRS Increase m invcstment aluation
et cash outflow from opernt1l1g aClivilJes
23 Returns on inwstments and servicing of finance
Other lterest received Interes paid on habihty to investors under FRSS
ct cash inGow from returns on lllvestments and senlcing of finance
24 Capital expenditure and financial illYestment
iurh3se of tangible fixed assets Sak of tangible fixed assets (see note 10) Deferred capnal grants receIved
Net cash outflow from capital expendllure and finanClallllestmcm
2()l4
CIIOO
12(46) 1C) ~ 21
( 11253 ) (64 0 )
(]3006) f~(24)
15 (3011 11)62
11
( 14 361
2004 (000
301 ( 1(1621
7611
2004 C()(l()
S57 70(1
SC)4T
ISoRO
lniversit~ College Cork arional tniversity of Ireland Cork
OTES TO THE ACCOCTS - continued
15 Financing 200-1 (000
Dht due within ant year Drclse 111 shon term hononn~
Dent due lyand one year Increase in long tenl1 borw1I1g
1et -ash inflow frorr financing
26 nalsis of changes in net debt At CashOows Other At I October Non cash 30 September
2003 changes 2004 POOH (000 POOO COOO
C~sh 111 hand and at hank 5 3 9Z l)vcrdrafts
539( (21)5021
Deht due within I year (-US6) 1C)[9 (~37)
Debt due after J vear 62R) (19) (7241 Llabilll to invctors under FRS (125) (24231 i
125 163f()4iTCltal
27 Related parties
Transactions Jh suhsidlanes of the UlllversllY have been eillninated on consdidauon and 11(1 disclosure or these transactIOn has therefore been gIven The Lnlerslty had the following transactIOns with related panics on 1 DeCember 1995 Irish Universitl Student Trust entered into a twent five year lease or AnlS 113 Mac Lemn from Lmverslty College Cork at an annual rental dE44A4J pel annum The trustees oflnsh UnirSH Studem Trust are the PrerdenL Secreta and Bursar and Fllance Officer elf ljmvcrsll Cork
l ninrsit College Cork ationaJ lininrsit~ of Ireland Cork
OTES TO THE ACC01T5 - COli tinned
8 Pcnsions
3 ~ PenSIon for substantiaEy all employees are funded through a defined henefit pension schemelt
The lniwrsl oper3tes a defined henefit penSlOll scheme wllh assets held 111 a separately admmlstered fund The total pension cost w the UniversHy ltas f14J)-4 Q 4J (2003 f12(J]-~13L The Illost recen uctuanul
aluation as undenaken as at 1 Octoher 2004 hy consuting actuanes uS1l1g the attained age methodlt The
princIpal assumptIon used in the actuarial valuatlOn was that the long-term annual rale of return on 1I1vestment would exceedtbe mcrease 111 pensionable earnIngs by 2) The 1ens1On and Trust Funds are not included 1I1
the Balance Sheet hecause they arc funds w1111 a separate COHSlltu1l0n from the general assets and ltabilJtie~ of the t11lerSlllaquo
t the date of tbe last actuaria I valuation the market aluc of the scheme s assets was sufTiclCl1t to cover 9lt
of the accrued liabilitleslt based on currcnt eammgs and also allowlllg for expected future mcreascs m eammgslt
The ul1lversny also operates a defmed contributIon penslOn scheme that covers cenain empl(1yees of the
ul11ersirvlt The assets of the scheme are invested by independent trustees for the benefit of these emplovees
ContributIOns to tim pension scheme for the year amounted to C02(il15 (2003 fJ A4F788I
b Financial Reporting STandard 1- Retirement Bellefirs disclosures
The alual1on of the Superannuation Plan benefits for the purposes of FRS 10 disclosures was based on the
results of the actuanal valuation ~aITlcd out as at 0 1102004 suItably adjusted to ~Onr()m1 to the requirements
of FRS 1- The impact of the penSlOn obligations of benchmarkmg awards due but not vet paid has been
mcluded The financlal assumptions used w calulate the retIrement cbltgatJons under FRS I were as follows
2004 2003
Valuation method Projected Projected Luit Luit
Dicou11l rate ) JlOdeg) )lt50
In118tio11 rale 250deg(1 250middot
Satan 1I1lTeases LO 450deg()
PenSlOll Supplemel1latlon 350l~middott 350o (J
t nhersity Coll(ge Cork gtational Lniversity of Ireland Cork
gtOTpound5 TO THE ACCOlgtTS continued
b Financial ReporrillK Standard 1- Rctircmcnr Bcncfirs discloswc (coltinued)
Th market value of the assets 111 the penSIOn schenk the expected rates of return and the hllgallOns as at 300920(11 togethe WIth the pnor vear arc ShC11 belo
2004 2003 cooo coon
Equities ~ ~5deg iJ 11Q708 800 1~346
Bonds -f ~()(I( 22456 150[0 lfd29
PropertY 65degu ImiddotUP 00( 14330
)Clsh 21 O()~() 2]0
TOW market alue of assets 1GL933 166623
Actual Value of Labilny
PenSlun Deficll
Related deferred tax Iiabiit~
et PellSlOn Llabi hty
Analysis of the amount that would have heen charg(d HI operating profit under FRS 17 is as foil () s
2004 2003 COOO (000
Curren Selce Cost 1710 1
Past SeTyice Cost
Tow Operatmg Charge
Analysis of the amount that would lUlVe been credited to other finance income under FRS]7 is as
follows
2004 2003 (000 COOIl
retum 011 s-heme asct~ 1U104
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
lniversit~ College Cork arional tniversity of Ireland Cork
OTES TO THE ACCOCTS - continued
15 Financing 200-1 (000
Dht due within ant year Drclse 111 shon term hononn~
Dent due lyand one year Increase in long tenl1 borw1I1g
1et -ash inflow frorr financing
26 nalsis of changes in net debt At CashOows Other At I October Non cash 30 September
2003 changes 2004 POOH (000 POOO COOO
C~sh 111 hand and at hank 5 3 9Z l)vcrdrafts
539( (21)5021
Deht due within I year (-US6) 1C)[9 (~37)
Debt due after J vear 62R) (19) (7241 Llabilll to invctors under FRS (125) (24231 i
125 163f()4iTCltal
27 Related parties
Transactions Jh suhsidlanes of the UlllversllY have been eillninated on consdidauon and 11(1 disclosure or these transactIOn has therefore been gIven The Lnlerslty had the following transactIOns with related panics on 1 DeCember 1995 Irish Universitl Student Trust entered into a twent five year lease or AnlS 113 Mac Lemn from Lmverslty College Cork at an annual rental dE44A4J pel annum The trustees oflnsh UnirSH Studem Trust are the PrerdenL Secreta and Bursar and Fllance Officer elf ljmvcrsll Cork
l ninrsit College Cork ationaJ lininrsit~ of Ireland Cork
OTES TO THE ACC01T5 - COli tinned
8 Pcnsions
3 ~ PenSIon for substantiaEy all employees are funded through a defined henefit pension schemelt
The lniwrsl oper3tes a defined henefit penSlOll scheme wllh assets held 111 a separately admmlstered fund The total pension cost w the UniversHy ltas f14J)-4 Q 4J (2003 f12(J]-~13L The Illost recen uctuanul
aluation as undenaken as at 1 Octoher 2004 hy consuting actuanes uS1l1g the attained age methodlt The
princIpal assumptIon used in the actuarial valuatlOn was that the long-term annual rale of return on 1I1vestment would exceedtbe mcrease 111 pensionable earnIngs by 2) The 1ens1On and Trust Funds are not included 1I1
the Balance Sheet hecause they arc funds w1111 a separate COHSlltu1l0n from the general assets and ltabilJtie~ of the t11lerSlllaquo
t the date of tbe last actuaria I valuation the market aluc of the scheme s assets was sufTiclCl1t to cover 9lt
of the accrued liabilitleslt based on currcnt eammgs and also allowlllg for expected future mcreascs m eammgslt
The ul1lversny also operates a defmed contributIon penslOn scheme that covers cenain empl(1yees of the
ul11ersirvlt The assets of the scheme are invested by independent trustees for the benefit of these emplovees
ContributIOns to tim pension scheme for the year amounted to C02(il15 (2003 fJ A4F788I
b Financial Reporting STandard 1- Retirement Bellefirs disclosures
The alual1on of the Superannuation Plan benefits for the purposes of FRS 10 disclosures was based on the
results of the actuanal valuation ~aITlcd out as at 0 1102004 suItably adjusted to ~Onr()m1 to the requirements
of FRS 1- The impact of the penSlOn obligations of benchmarkmg awards due but not vet paid has been
mcluded The financlal assumptions used w calulate the retIrement cbltgatJons under FRS I were as follows
2004 2003
Valuation method Projected Projected Luit Luit
Dicou11l rate ) JlOdeg) )lt50
In118tio11 rale 250deg(1 250middot
Satan 1I1lTeases LO 450deg()
PenSlOll Supplemel1latlon 350l~middott 350o (J
t nhersity Coll(ge Cork gtational Lniversity of Ireland Cork
gtOTpound5 TO THE ACCOlgtTS continued
b Financial ReporrillK Standard 1- Rctircmcnr Bcncfirs discloswc (coltinued)
Th market value of the assets 111 the penSIOn schenk the expected rates of return and the hllgallOns as at 300920(11 togethe WIth the pnor vear arc ShC11 belo
2004 2003 cooo coon
Equities ~ ~5deg iJ 11Q708 800 1~346
Bonds -f ~()(I( 22456 150[0 lfd29
PropertY 65degu ImiddotUP 00( 14330
)Clsh 21 O()~() 2]0
TOW market alue of assets 1GL933 166623
Actual Value of Labilny
PenSlun Deficll
Related deferred tax Iiabiit~
et PellSlOn Llabi hty
Analysis of the amount that would have heen charg(d HI operating profit under FRS 17 is as foil () s
2004 2003 COOO (000
Curren Selce Cost 1710 1
Past SeTyice Cost
Tow Operatmg Charge
Analysis of the amount that would lUlVe been credited to other finance income under FRS]7 is as
follows
2004 2003 (000 COOIl
retum 011 s-heme asct~ 1U104
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
l ninrsit College Cork ationaJ lininrsit~ of Ireland Cork
OTES TO THE ACC01T5 - COli tinned
8 Pcnsions
3 ~ PenSIon for substantiaEy all employees are funded through a defined henefit pension schemelt
The lniwrsl oper3tes a defined henefit penSlOll scheme wllh assets held 111 a separately admmlstered fund The total pension cost w the UniversHy ltas f14J)-4 Q 4J (2003 f12(J]-~13L The Illost recen uctuanul
aluation as undenaken as at 1 Octoher 2004 hy consuting actuanes uS1l1g the attained age methodlt The
princIpal assumptIon used in the actuarial valuatlOn was that the long-term annual rale of return on 1I1vestment would exceedtbe mcrease 111 pensionable earnIngs by 2) The 1ens1On and Trust Funds are not included 1I1
the Balance Sheet hecause they arc funds w1111 a separate COHSlltu1l0n from the general assets and ltabilJtie~ of the t11lerSlllaquo
t the date of tbe last actuaria I valuation the market aluc of the scheme s assets was sufTiclCl1t to cover 9lt
of the accrued liabilitleslt based on currcnt eammgs and also allowlllg for expected future mcreascs m eammgslt
The ul1lversny also operates a defmed contributIon penslOn scheme that covers cenain empl(1yees of the
ul11ersirvlt The assets of the scheme are invested by independent trustees for the benefit of these emplovees
ContributIOns to tim pension scheme for the year amounted to C02(il15 (2003 fJ A4F788I
b Financial Reporting STandard 1- Retirement Bellefirs disclosures
The alual1on of the Superannuation Plan benefits for the purposes of FRS 10 disclosures was based on the
results of the actuanal valuation ~aITlcd out as at 0 1102004 suItably adjusted to ~Onr()m1 to the requirements
of FRS 1- The impact of the penSlOn obligations of benchmarkmg awards due but not vet paid has been
mcluded The financlal assumptions used w calulate the retIrement cbltgatJons under FRS I were as follows
2004 2003
Valuation method Projected Projected Luit Luit
Dicou11l rate ) JlOdeg) )lt50
In118tio11 rale 250deg(1 250middot
Satan 1I1lTeases LO 450deg()
PenSlOll Supplemel1latlon 350l~middott 350o (J
t nhersity Coll(ge Cork gtational Lniversity of Ireland Cork
gtOTpound5 TO THE ACCOlgtTS continued
b Financial ReporrillK Standard 1- Rctircmcnr Bcncfirs discloswc (coltinued)
Th market value of the assets 111 the penSIOn schenk the expected rates of return and the hllgallOns as at 300920(11 togethe WIth the pnor vear arc ShC11 belo
2004 2003 cooo coon
Equities ~ ~5deg iJ 11Q708 800 1~346
Bonds -f ~()(I( 22456 150[0 lfd29
PropertY 65degu ImiddotUP 00( 14330
)Clsh 21 O()~() 2]0
TOW market alue of assets 1GL933 166623
Actual Value of Labilny
PenSlun Deficll
Related deferred tax Iiabiit~
et PellSlOn Llabi hty
Analysis of the amount that would have heen charg(d HI operating profit under FRS 17 is as foil () s
2004 2003 COOO (000
Curren Selce Cost 1710 1
Past SeTyice Cost
Tow Operatmg Charge
Analysis of the amount that would lUlVe been credited to other finance income under FRS]7 is as
follows
2004 2003 (000 COOIl
retum 011 s-heme asct~ 1U104
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
t nhersity Coll(ge Cork gtational Lniversity of Ireland Cork
gtOTpound5 TO THE ACCOlgtTS continued
b Financial ReporrillK Standard 1- Rctircmcnr Bcncfirs discloswc (coltinued)
Th market value of the assets 111 the penSIOn schenk the expected rates of return and the hllgallOns as at 300920(11 togethe WIth the pnor vear arc ShC11 belo
2004 2003 cooo coon
Equities ~ ~5deg iJ 11Q708 800 1~346
Bonds -f ~()(I( 22456 150[0 lfd29
PropertY 65degu ImiddotUP 00( 14330
)Clsh 21 O()~() 2]0
TOW market alue of assets 1GL933 166623
Actual Value of Labilny
PenSlun Deficll
Related deferred tax Iiabiit~
et PellSlOn Llabi hty
Analysis of the amount that would have heen charg(d HI operating profit under FRS 17 is as foil () s
2004 2003 COOO (000
Curren Selce Cost 1710 1
Past SeTyice Cost
Tow Operatmg Charge
Analysis of the amount that would lUlVe been credited to other finance income under FRS]7 is as
follows
2004 2003 (000 COOIl
retum 011 s-heme asct~ 1U104
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
lniHrsirv College Cork ational LniCrsit~- of ireland Cork
OTES TO THE ACCOLTS - continued
h j Financial Reporting Standard ]7 Retircme1ll BCl1cfits disclosure (colltinued)
Analysis of the amount that would have been recognised in statement of total recognised gains and losses under FRS17 is as follows
~tual less rerum on scheme assets
Expencnce gains and losses
Changes m assumptlons
Actuarial loss recogmsed 111 STRGL
Analysis of the moyement in deficit during the year is as follows
Defien at the begmning of the year
Current sen Ice cost
Contribul1ons
Past servICe costs
1ct J11terest cost
Actuanalloss
DeflCll at end of veal
2004 2003 (000 (OHO
7101 2305
20018
(24024)
2004 2003 COOO fOOO
(62592 ) (222563 )
(174C)1 ) (1 14)
14068 1C 188
Nil Jl
( 12149) (104 7 9)
(]08T)71
Anal~sis of the amount that would hlrve been recognised ill statement of recognised gains and losses is as follows
Expenence gams and losses for the year ended 30 September 004
Percentage of scheme ltlssets
Actual less expected return on scheme assets Percentage of scheme assets
Changes in assumptions Percentage of the presenl value of scheme liahlliues
Total in statement of Iota1rec()g1l~ed gams and losses Pereentage of the present value of scheme liabdiries
2004 2003 eOHI fOOO
20058 (2632lJl
105 ~ ~ 8deg (
-501 305 39Jn bull 10
11(
(5-222) 111
11A -il
(30163) i24024 I
6deg ( 56 i (1
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
l niHrsil College Cork ational lniversiry of Ireland Cork
ons TO THE ACCOUTS - continued
() Deferred Income 21104 2003 COOO CIIOO
State gram receled in respect of current vear 70J79 State grant dltcferredrecclahle from pnor accounting year 11295 StUC gnmt deferredrccelable to in suhsequent accounting vear U12iSi
State grant per financial stalements (Note I) 0 Q~---
State funding IS allocuted on a cilendar year hasls The univcrsit- financial year is hased on the academIc vear from OClClher to September In accordance wnh the U111erslTys accounting policies recurrent grams have heen recogmstd on an accruals basis In any accountmg year therefore an element of funding will be deferred to
subsequent accounting penods 111 order to match the fundmg to the related expenditure
30 Student Service Charge 2004 2(Hl3 fUOO (1100
Income from student servICe churge 6486 olQU
Less reduction in State grant 3921 372(1
ExpCl1diflirc
Student service eosts 4758 4249 Examination costs 1420 1315 Space costs associated with student faCIlities 923 R69 Costs relatmg t( regIstration fees admIssions and records lil2 Total expendIture 8717 b123
Shortfall 1479A) 14401
Income from the student service charge represent5 a contribution towards the cost of student servIces provided bv tht unierslty
31 Approval of financial statements
The fl11ancull statements were appwcd bv the GlVernmg Bodv on the 10 OClOher 2006
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
lniversity Coliee Cork ~ational tninrsity of Ireland Cork Financial Statements Year ended 30 September 2004
University College Cork ational UniversitJ of Ireland Cork
HEA funding statement and reconciJiation
Ycar ended 30 September 2004
Reconciliation with funding statement
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
COTEXTS
STUflvlET Of RJSPOJSIBILITIES
STATDIElT OF CCOUNTING POLICIES 5+ 36
I~COME amp EXPPltDlTURE ACCOUlT
B-LAlCE SHEET
CASH fLOW STATD1ElT
JOTES TO THE ACCOUlTS 40middot48
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
STTEIET OF RESPOSlBILITIES
rhe lI11crsny IS required to comph wnh the universities Act 1deg9 and w keep in such fonn as may be approved of
[1 n tLdmi~ urn Ard-Oldeachas all proper and usual accounts of n1Clney receIved and expended b it In prepar111t lh(~~ a~coums rhe t)niversHY IS required to
select suitable accounting p(hCleS and apply them (OnSiS1entj
make Judgements and cstlmates that arc reasonable and prudent
prepare the finanClaJ statements on the gomg concern basis
unless that basis I inappropnate
Th LI11erslt~ IS responsible for keepmg proper books of account which disclose with reJsonabJe accuracy at any
time the finanCIal position of the ul1versllY and vhlch enables it to ensure that its finanCIal statements comply 1111
the Ll1lversities Act 1997 The uDlverslly is also responsible for safeguarding all assets under its operallonal contra and hence for taking reasomhle steps for the prevention and detectIOn of fraud and other irreguianties
On behalf of the LjniverSJly
Professor Vrixon
President
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
STTEMET OF ACCOCTING POLICIES
1 Financial Statements The financlal statements reflect the teaching research and related serVlce activities of the Lnhersil and liS
mam suhsldiaries The financJal statements of the Lniversm Penston fund Trust funG and of financlJIly I11dependent ancillary aClities are presented separately
Accounting Convention The financial statements are prepared under the histoneal cost conventlOn j ney are presell1ed m accordance 11h the eXIstmg Harmonisation Financial SW(I17CnIS agreemelJt as adopted for ail Irish lniversllles Ith the exception of flxed Assets and DepreCIation whereby Lllivcrsny College Cork has adopted the translllOnal pwnSlO1l5 of FRS 1S and Jccordmgl the valuations from 30 th Septemher 994 are not helllg updated - revIew of the Harmonisation agreement by the universnies in consultation with the Higher Educallon Authority and the Comptroller and AudItor GeneraL i~ nearing completion and will result m a ne agreed harmonised formal From 003 onard the fmancial statements arc also prepared m the new format on a conol1dated basls and in accordance with generalk accepted accouming pnnciples in Irdand and the lK
3 State Grants for Recurrent Expenditure Recurrent grants have been recognised on an accrual baSIS Recurrent gram which has been used for the purhase of fixed assets and for the financ1l1g of the capllal portIon of lease charges IS transferred tc Fixed Assets and General Reserve
t State Grants for Capital Expenditure State grams appf(ved by the HEA for capItal expenditure are included in the financial statements of the period [[1 the extent of cash receimiddoted
Fee Imome Fee income is accounted for on an accruals basis and reponed at EL fee ievels ~on El ree income IS included up ( the EL level with any excess (up to the most recent related lJnll CasU being reported under Other Income Any further excess ovcr the most recent related UnJ1 Cost is included m AJ1cIllaf Acmilies Reserves (MedicalDental and Other FacilIties Development Account)
6 Approved AJlocations The lIlcome and expenditure account IS prepared on all accruals basis with the followillg excepllons (i) non-pay expenditure of academlC depanment~ and certain service departments ii) depanmental equipment and minor works In these cases lllternal balances arc carried forward III the Balance Sheet under Current Assets or LiabilIties as appropriate
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
STATEME1T OF ACCOl1TI1G IOLICIES (ConL)
Fixed Assets and Depreciation Land and Buildmg~ are nJiued based on a comprehense aluation carried out on the September I ()o~
This YaiualJon I based on the replacement cost of buildmgs and the market yalue 0 the eXlstmg use of land TheC assets and all subsequent addItIOns are deprecIated as noted below
All fixed aset JddlllOl1S smce 1st October I (lO are S13tCd at cost
Equipment Fixtures and Fillings are valued at their deprecIated cost as at the 30th September 199middot1 These assets and all subsequent additions are deprecHlled JS noted below
The eSllmated useful JiyCS of fixed assets b reference to whic h depreciJtion ha been calcull1ed on a gtt[Jight-lme basis is as followsshy
Buildings 50 years Equipment and Fumiture 5 ears Computer and related Eyuipment years
DepreclatJon is not pnwided on land The transltiona provisions of FRS 15 are being followed and accordmgly the valuations from 30th September 10 0+ are not being updated
8 Stocks The stocks held m tcaching and service departments with the exception of equipment furniture and [1tl1l1is
statlone[ stocks and stocks of buildmg materials are not included in the Balance Sheet The items nOl
included are expensed and not capItalised The stocks whIch are included in the Balance Sheet are stated at the lower of cost and net realisable value
9 General Reserve The General Reserve represents the alue of fundmg after amortisation applied for capital purposes together with the balance on ancillary senice a~tiities
10 Research Grants and Projects Contract research expenditure is ShOI11 net of contributIon to ll1dinct costs Income from COlllrae research grants IS included in the Income and ExpendIture Account 10 the extent that the related expendnure has been IIlcLlrred Contract research contributIOn to the uniersitv s indirect costs is mcluded 111 Other Income FIXed Assets financed from contract research grants arc capitalised in the Balancc Sheet
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
STATDIET OF ACCOl~TlNG POLICIES (ConL)
11 Foreign Currency COSlS denommJted in foreign currencies are translated at tile rates ruling at the dates of the transactions A~sets and liabJlitIe denominated in foreIgn currenCles arC translated mto Eure at the rate of echange ruhng at the Balance Sheet date The resultIng profits or losses are deal wIth 111 the Income and Expeaditure ccount
1 Leasing Operatmg lease cots arc charged to the Income and Expenditure iccoum s incurred
B Pension Provisions All pay expenditure includes a superannuation allocatIon arying from 10 to 15middot of salaries and wage~ for ebgibJe staff which is paid into the UniversJly College Cork Pension Fund (a defined benefit scheme)
Pension supplementation relates to the cost of pension ll1creaes granted chargeable against the Income md Expendllure Account
after retlrcmenldcath and IS
lmiddott Taxation 10 prOV1SlOn has been made for taxation as the UniverHv holds tax exempt statm
15 Ancillary Services Ancillary Services arc services prOVIded on campus on 11 cost recover basis and are pJmmed to breakeven III the medium tenn The net outtum on suel actjviues (cxcludll1g student residences) is transferred 1(1 the General Reserve Account
1(t Restricted Reserves Restncted reserve comprise the unused portion of funds made available purposes
to the University for speClfied
1- Financing Arrangements Asets held under financll1g arrangements whIch transfer substantially all of the flsks and rewards of ownership to the University are treated as if they had been purchased outright and are included in the balance sheet as tangible assets at cost The corresponding commllments are shown as habilitie Payments tn respect of these obligations are treated as consisting of capital and interest elements Jth interest to the related Restncted Reserve
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
ICOIE AND EXPENnITlRE ACCOtSI
Year to 30th September 2004
~otes 20032004 20022013
Inc()me euroOOO fOOO
StJte Grants
S lUdent Fees
Othcr income j
~~320
54205 II ql
~L216
50Jgl
USA 16 12QIO~
1(Cl11
Expenditure
Academl Faculties and Departments 82742 ~337Q
Academic and Other Sernces (1 1407 4 13176
Prell11SeS 164111gt i51 C ilAmount middotlocated for CapItal Purpose 8 491
CcntrltJI Administration and Senices 9 ll6 7 9 10IOC)
General Educational Expenditure 10 5358 5031
Student Senlce 11 4758
--1icdlaneous Expenditure 12
141481gt
Re~carh Grants and Prolects
j 7 0fnuTLtal 13
Deficit on activities before Amortisatioll of Capital Reserves and Grants Ancillary Services and Depreciatioll of Fixed Asset
Surplus on ncillary Senlces Ci61 fl)~
Deprecl3110n of Fixed Assets
-(I~UnOI (21963
General and Restricted Reserve Movement 16
Deficit fur Year
Rcvenue Resencs at Stan of Year
Revenue Reserves at End of Year
TJI( Sl(lIemen ACCOUl1l1l1g PoliCies Cash Flol SlacmC1l ([ld nOlIS rom pages 4(1 fO pan ~ (coun
Sitnd Professor W rixon Dermot OMahoney Presldent Honorary Treasurer
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
BALAiCESHEET
As at 30rl Septemher 2U04
otes
Fixed Assets 1shy
InHstmellts 1 S
Current Assets
Bank Balances and Cash
Ikbtofs and Prepayments 19
SWcb
Current Liahilitils
Bank Overdraft
Creditors and Accrued Expendnure 20
lt Currlnt Liabilities
Long T errn Loans 21
Rlpreslntld by
General Reserve
Restncted Reserve~
RCcnne Resere~ 24
The SralCmCI1i Of ACCOLIJllIl Poiicus Cash Flmr SWle1ll11l and
Professor Wrixon Dermot OMahoney Presidel1l Honorary 1rcasurcr
20032004 pound000
30JJ62
((15124 )
42342
par
20022003
EOOO
5203
191518 r620
1421
1(COWI1~
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
CASH FLOW STATEMET
Y car to 30h September 2004
oles 20032004
fOliO
et Cash (Outflow)llnflow from Operating Activities 111312)
Return 011 Investments and Servicing of Finance
lntcrest (Pilld) Received (1el)
Capital Expenditun
P1VTllcnl w AcqUIre langlbk Flxed Asset~
et Cash Outflow before Financing (84198)
Financing
HEA Caplta] Grants
on HEA Capital Grants
Increase 111 Long Tenn Loans
Prcceeds from the Sale of Tangihle Fixed Assets
10-S9
37008
202
Cash Inflow from Financing
et Cash (Outflow) Inflow after Financing
(Decrease) Increastmiddot in Cash
20022003
fOOO
304
(13323 )
1CJS24 12314
23 JJ6S
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
~OTES TO ACCOCTS
Year to 30th September 2004
L State Grants
200312004 EIIHO
20022003 EHOU
RC2urrent Grant
iursmg Grant
Targeted fundmg for Speelalllli[iale~
~J inor VI orks
Porgraduatc Skill~ Programme
6 16 7 (
1-39
- (1f6
10
UI1 ]
Total
Student Fees
ACJdemlC
1lsccllancou5 Fec Income
54120
Total
3 Other Income
Interst(Pavablel Receivable Net)
Funded Posts amp DonatIOns
Rent ConcessIOns and OrilCr Charges
Research Grant and Projects Contributions
ion Ft Fees (Excess over Insh Fcc Equivalent)
M iscdlancoU Income
(49)
407 484
4532 2915
-+35 en 790
TOlal
4 Research Grants and Projects
Research Grants
Total
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
OTE5 TO ACCOliTS
Year to 30 th Septemoer 2004
5 Academic Faculties and Departments
AademlC
Tedmical
dmlmStratlve Support
Depanmental Grams
lbceEmeous Epenses
T(1lal
O Academic and Other Services
Library Costs
Computer Infonnation Technology
Language Centre
Cork univerSIty Pres5
ludl- Ylsual Centre
Electron Microscopy unit
Teachmg Dewlopment unit
SpokenOra Imh
BIOlogical ServicesiResources Unit
Research Support Industria Llalson
Total
- Premises
Premises Mainrenance
General Senices
vlmor 1orb Radiation Protection Office
Rent and Rates
Insurance
Costs
Total
S Allocated for Capital Purposes
Capital Projects
Equipment
Total
Staff Costs fOOO
54746
~S~3
-522
4040
298
1666
106
406
47
391
316
0049
3037
136
on Pay OHIO
12 no
2385 1560
(229
lOO 20
220 (67)
4125
3557 ln-
131 ]CJ
144
144h
201L4
]048
200312004 fOOO
54746
J(~3
522
1200
6425
4151- 1 lt-+-)
206
426
r 611
249
14074
6385 4814
131 15
l544 14t() -
1646
2002 2003
fOliO
49819 ()8(14
6(148
91 ((
55~6
3921
120 45shy
430
18
_ _i
_ shy
263
C
1]76
~036
4489
125
128
1120
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
----
01ES TO iCCOeirS
Year to 30 th September 2004
Staff Costs f(lOU
on Pay
pound000
200320(14
euroOOO 200220()3
pound000
9 Centrat Administration and Services
Admimstration
Expense~
Professional Chartes
Mi~cellaneous
S3119 i( j
l38(1
S369 833
1380
~l (jCi
cSO_ ~
040
T()tal S311() ~ )(1 ~ liJi22
1() General Educational Expenditure
Examination Expenses
Scholarshlps PnzesFellowshlps
NTL Capitation
iscellaneous Expenscs
1240 ISO
208 +74
138~
1420
2OiC
474
1315
1822 r
Total ] 240 411 S ~n31
11 Student Services
CapItauon and Other Grants
S lUdent SerTIces
Careers Office
Sports and RccrcaooI)
Health ane Counselling
170
515
471
811
366
76
134
lBf
811
M5
59]
fl05
764
600 530
61
Total 291 ] fl 458 middotL24G
12 Iiscellaneous Expenditure
PensIOns
tl1scellaneous Expenses
2C)34 o _ bull _-t 2nO
Totai ) q 1 - )- ~~
--- 16shy ~
13 Composition of Total Expenditun
AcademiC and Related SellCe
Researh Grants and PnJccts
]01 1-5 40 11
~144
141416 129135
Total ExpendHure ] (gt11 ~ 10 4)(gt(1
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
1OTES TO ACCOlSrS
Year to 30 th September 20n4
14 ncillary Servins - Summary
I nco Ill(
f(lOO Expenditure
euroO(lO
Surplus
2003i2004
fOOO
Surplus
20022003
(000
Student Residences
ledleal Dental and Other FacilIties
D~elopment Account
90 1
Surplu~ AneJllary Senices
15 Depreciation of Fixed Assets
~and and Buildmgs
EqUlpment 6048 )39
] 6 General and Restricted Reserves Movement
AmortlSiltion of Gen(ral Reserve in 1111( wttr DepreClatlOn
Amlnlsatl011 ofRestncted Reserve 111 11llC w1lh Deprecmlion
Surplus cf Ancillary Services from
Income and Expendlfure to General
Resene Account
9(1)
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
~OTES1UACCOC~1~
Year to 30th Septemher 201M
Land and
Buildings
pound000
F Fixed Assets
CostYaluatioll at lst Octoher
aluallcHi
Ce1st
Total
middotddnlC1ns at Cost 61341
Drsposals (63)
CostiYaluation at 30th September
aluallon ] 77] Cost
Tow]
Depreciation
At ] 5t Octoher 3S110 Lts Accumulated Depreciation on Disposals 13
Depreciation for Year
At 30th Septemher 4414
Ie book value at beginning of )car
et book value at end of year
Et]uipmellt fOOO
11+M
( 137)
819
3933 137
66618
~~ ))1 -p _-shy
Orn7
20032004
pound000
135940
476~Ol
9043
10
110763
~11651
3n5=3g
20022003
euro(HlO
13594C
MOO~
135940
3116 1
iii accordOllce HII FRS - fixed (ISSeIS olhel assls (1m rcmcd habilillCS are included 111 the UniwrsillS
baiaic1 sheer cn11 though liile 10 IheIT (IsseiS is iII Ihe name o(componies 1101 cOl1lwlied UCC The CC0l101111C hClldiis and risks ass(JcialCd Hilh thcse asl1lS reSI )I1I1i UCC and lIf1inulc li[e Ii
res IiIIi rCC
18 Investments
Openin~ balancc ~69
Revaluation Surplus 291 U
-ddHlons
The investment 111 the Umversil TeclU1olo~y Centre Partnership has been revalued durin~ the Car to the value of the tnJersirys share in the partnc7shlp as at] December OC3
92043
293
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
~OTES TO ACCOlliTS
Year to 30 th September 2004
1() Dehtors and Prepayments
Staff House Lmns
Imernal Balances
Other Debtors and Prepannems
20 Creditors and Accrued Expenditure
Comraet Research Grants and Projects uncxpcnded
State Grams [or Reeurrent Expenditure received in adancc
AcademIc Fees received in advance
Internal Balances
Other Creditors and Accruals
21 Long Term Luans
20032004 f()OO
4~52
12313 110Q4
6640
hl195]
20022003 EOOO
12~276
8528 9064
4302
f12777
These long ternl loans arise from the treatment of liabilities arising under FRS 5 See Note] -
General Reserve
Valuation - Fixed Asset~
VaJuallOJl Investments
State Capital Granb
Recurrent Funding Transfer
CapllaJ Donations
Other
Disposab
Amortisatioll
Amortisation at Stan of Year
Less Amortisation on Disposals
monisation to I 6 E Account for Year Transfer (from) to restricted reserve amomsation
middotmomsllon at End of Year
Opening Current Year Closing Prior Year B~llancc llovement Balance Movement
euro()()O euroOOO fOOO OHIO
135940 135940
2910 2910
53147 2(1401 7954 5962
3144 ~6S8 4644
31598 12K4 4-L42~ 459(1
54017 331693 1990Q
2(1S()
(15967) 1189 1
( 8) J8 CJ
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
iOTES TO ACCOFTS
Year to 30th September 1004
13 Restricted Reserves
At begmning of year
-ddltions during the year
Transfer to General Reserve
At end of year
Amortisation
-t begmnmg of year
Transfer toifroml Genera Reserve
Amortisation to J amp E Account for year
Amortlsation at end of year
Net alue at 30 September
10031004 20011003 pound(HIO (000
5235Cl -tSA2shy O~126 -)-~
1 ~n ~
I-U30) 153)
282 (1 S9)
Restncted Reserves represent accumulated reserves sct aSIde for proJccts mCluding the BLmk of Ireland exclusivJlY fcc There IS a matching restflcted bank account WJlhin the bank overdrafi balance JIJ the balance sheet to match the Bank of Ireland exclusivity fee balance TI1e balance of the reserve relates to capItal prolects which are in IUm subject to separate financing arrangements
14 Rlvtnue Reserves
Opemng Balance
Deficit for the vear
Closmg Balance
Cashflnw
Reconciliatioll of Income and Expenditure
Account Deficit to Net Cash (Outflow) Inflow from Operating Activities
DefiCi[ for the Year
Intcrest PaId (Received) (Net)
DepreclalJon of Fixed Assets
AmortisatIon of General Reserycs
morJsation of Restricted Re~cres
(lncrease) Decrea~e in Investments
( Increase Decrease m Debtor~ and PrCpa111CI1lS
Decrc3se (Inerease) in Stocks
Increase in Creditors mG Accruab
ovcment 111 An II Ian SerVIces
Net Casil (Outflow) Inpound1o from Opcratll1~ ctinlies
(J4)
(20)
(28 )
15~43
IPno (15CJ(7)
129(J3)
(3
( I (5117 I
34
4174
~
-
4(141
963 118Q) )
(2Y8~ )
24
26~8
(]49
J(456
(J lW e(lC) ~
4(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
-OTES TO ACCOUTS
Year to 30th Septlmber 2004
26 Analysis of Changl ill Cash and Cash Equiyalents
Balance at lgtt Otober
ct Cash (Outf1ow) lnilow
Balance a 30th September
Capital Commitmenrs
Commitments contracted at 30th September
luthorised but not contrated at 30th September
28 Commitment and Continglncy
The University from time to time IS party to variow legal proceedmgs heen informed hy their legal adviser that it is not possible at this time financial effects (if anyl of these cases
20032004 20022003
pound000 EOOO
5203
76259
1fC) 610
The Offier~ 01 the University have to make a reliable estimate of the
A contmgent hability eXists in respect of potential Value dded Tax in the amount of f22 miliion together with substantial potential mterest and penalties Revenue has issued an assessment which the University has appellect The University hus received profeSSIOnal adviee thal this appeal has rCltlsonable grounds of success
2() Financial Assets - Pension and Trust Funds
The Cniver~lt operate~ a defined benefit pension scheme for employees
The tola] pension cost to the University wa~ E1407middotpl+4
The l1KlSt recent actuarial aIUltlllOn WltlS undertaken as at Oetober 2001 hy consulting actuanes U5111g the ltlttamd age method The princlpal assumption used in the actuarial aiultltion was that the long ternl annual rate of return on il1estment would exceed the ll1crease in penslOnahle earnings by 2deg
The Pension and Trust Funds arc not induded in the Bltllance Sheet because they are funds with a separate constItution from the assets and liabililies of the University
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
OTES TO ACCOVlTS
Year to 30h September 2004
29 Financial Assets - Pension and Trust Junds (lontinued)
The dIsclosure requirement~ of accounting standard FRS J Retirement Benefits have nOI been adopted in these financwI statements vhich are presented in accordance with the Hmml1isatlOn of AcC()unts formal as adopted b all Irish Uniersitles FRS I has implications for the Public Sector generally which are currently bell1g consIdered The implIcation of FRS 1 ll1 reiallon to Irish Umversllies WI be addressed when the reiew of the Ham1onisation of Accounts format is finahsed
30 Related Party Transactions
On the 1 December 1995 Irish UniversllY Student Trust entered into ltI twenty five year lease of ras na Ivlac Lemn from Universltmiddot College Cork ilt iln annual rental of f44441 per ilnnum The trustees of Insh UilltTsity Student Trust ilre the President Secretary and Bursar and Finance Officer of the Umcrsit College Cork
The actlvllles of the following I OO(~ owned subSIdiaries have heen eonsohdated wllh the Ul1lversity Cork Income ilnd Expenditure Account and BaJance Sheet
Property l1anagement (UCC) Limned Campus Accomodanon (UCCI Limited Bemard Limlled GlylC Holdmgs Lllnited
1Vlardykc LeIsure I Llfntted IS J000 ovTIed hy UniversJly College Cork It was incorporated on 25 June 001 Its actlvllies have nDt been included for consolidatIOn purposes
ArtGallery (UCCI Limited is 1000 ()11ed hv Universit College Cork It was incorporated on 3(1 Ma 2002 Its actJVitles have not heen mcluded for consolidation purposes
-1 Approval of Financial Statements
The financial slalement~ were approved hy the Governing Bodv on 2 s June 2005
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
Other operatmg income 183 ]7
Intgtfgt5t income
Totl incomc
Deficit for vear
Sllbsidiar~
companies
fOOO
2 (081
lJnincorporated ancillary actiyities
(flOO
C(76)
GAAP adj ustmen ts
HEA funding statement
((lOO (000
( 1(6)
(~9RR)
671
6]7
-2320 jO
C1 74 18870
3590 c118
ilZl
J(
luiYlrsity College Cork atioJlal rJljersit~ of Ireland Cork Financial Statements Year ended 30 September 2004
RECONCILlATlO OF HEA FLDIlG STATEllENT WITH COSOLIDATED FINANCIAL STATEVlETS
YLR ENDED 30 SEPTEMBER 2004
INCO~lE Consolidated financial
statements fOOO
SlalC grants 74R6
Sludent ree 6344lt
Research grants and contracts 4501
Amomsatlon of deferred capital 1153 grll1b
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