Financial summary
Scope of the Financial Statements
The University Board of Directors present their report and the audited consolidated financial statements for the year
ended 3 July 2008.The consolidated financial statements comprise the consolidated results of the university in its
various legal guises and its subsidiaries.
Results for Year
The University’s Consolidated Income and Expenditure Account for the year ended 3 July 2008 is summarised as
follows—
2008 2007
£’000 £’000
Income 74,972 56,973
Expenditure including taxation (82,630) (57,624)
Trading deficit (7,658)
Exceptional item: impairment of fixed assets (93)
Deficit for the year (8,589) (65)
The year ending 3 July 2008 is the first year of operation A further adjustment to trading deficit has occurred
of the new University of Cumbria. The University was through a charge for impairment value of certain property
formed from an amalgamation of St Martin’s College, assets. In most cases, the property revaluation exercise
Cumbria Institute of the Arts, and the acquisition of a showed assets were valued higher than their historical cost
number of trading assets from the University of Central value contained in the opening balance sheet. However,
Lancashire. However, technically, the University is based there were some exceptions where the revaluation was
on the corporate legal entity that held and reported the less than the historic cost value, and FRS dictate that this
operations of St Martin’s College, which from February value impairment must be recognised immediately. The
2007 operated as a company limited by guarantee. total value of these impairments is £93K.
On August 2007 St Martin’s College Limited changed
names to the University of Cumbria Limited, and In comparison to the joint results of the three predecessor
immediately acquired the assets and liabilities of Cumbria elements, the university’s activity in its first year represents
Institute of the Arts, and certain assets of the University of an increase in income from variable tuition fees and from
Central Lancashire. The comparative figures shown above other sources such as academic projects, together with
for 2007, are those that applied to St Martin’s College some further income from HEFCE, North West Regional
during 2006/07, and therefore do not directly correlate Development Agency, Cumbria County Council and the
to the activities behind the 2008 trading results. Learning Skills Council towards university start up and
estate costs.
The trading deficit of £(7,658)K includes an additional
cost provision of £268K relating to the impact of asset For full details of the annual accounts, please click here
revaluation on the depreciation provision. The additional
depreciation charge of £268K is based on the difference
between the depreciation charges on revalued assets,
compared to the charges that would have been calculated
on asset values pre revaluation. In addition, there has been
a significant Financial Reporting Standards 7 ‘Retirement
Benefits’ (FRS) charge of £,86K this year, this relates to
changes to the pension valuations as provided by actuaries
of the scheme. When the nature of these adjustments are
understood, it can be seen that the underlying trading
deficit is £(5,574)K.
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