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 31 July 2009. The consolidated financial statements comprise the consolidated results of the University and its subsidiaries.


Results for year


The University’s Consolidated Income and Expenditure Account for the year ended 31 July 2009 is summarised as follows:


2009 £M Income


Expenditure including taxation


Trading deficit


Exceptional item: impairment of fixed assets


Deficit for the year 79.2 (92.4) (13.2) - (13.2) 2008 £M 74.9 (82.6) (7.7) (0.9) (8.6)


The result for the year is unsatisfactory. The University is taking urgent action in order to reverse this performance and turn the University around through a carefully managed programme of activity intended to:


• Rightsize the University for the future


• Restructure the University to improve efficiency and effectiveness, including rationalising its estate


• Introduce new management in order to turn around the University’s financial performance.


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Beyond this date, the Executive and the Board are confident that the actions now being taken, which are supported by the NWDA and other regional and national stakeholders, will ensure financial sustainability in the future.


For full details of the annual accounts visit www.cumbria.ac.uk/ Services/Finance/Finance.aspx


The Board acknowledges that this result is unacceptable.


Since the year-end the senior management team has been working with HEFCE and the Board to turn around the University’s financial position.


As the University’s financial problems are deeply structural it expects to incur a further large deficit in 2009/10 whilst restructuring takes place.


The trading deficit of £13.2m includes an FRS17 pension charge of £3.2m (2007/08: £1.8m).


The underlying trading deficit is £9.8m (2007/08: Deficit £5.6m, after allowing for an impairment loss on fixed assets of 0.9m).


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