Middlesex University
Financial Statements 2016/17
Financial Review for the year ended 31 July 2017
Expenditure
Expenditure in the year (excluding restructuring costs) totalled £188.5m, a 1.5% increase over the previous year. This was a rate of growth lower than the general levels of pay and non- pay inflation, emphasising strong cost control in all areas.
Staff costs increased against the previous year by £5.2m (4.9%) to £110.7m; an additional £0.8m was incurred relating to the restructuring of academic and administration provision across the University. Staff costs (excluding restructuring costs) represent 55.9% of total income. Although average staff numbers for the year did increase by 51 from 2015/16, the majority of the increase relates to pay inflation and movements up the pay scale. Pension costs of £14.8m represent a significant proportion of staff expenditure, increasing from £13.5m in 2015/16. This pension cost growth is a trend not unique to the University but typical for all in the Higher Education sector with Defined Benefit Pension schemes.
Spend on other operating expenses decreased by £2.6m compared to the previous year. In 2016/17 the figures for the University (excluding subsidiary companies) include the one-off impact of the release of an onerous lease provision of £1m following the termination in October 2016 of part of our occupancy at New Southgate.
Depreciation has increased by 7% on 2015/16 to £11.5m, due largely to the long period of estates development at the London Campus, including this year’s investment in the Ritterman and Church Farm buildings for staff and students use.
Interest costs have decreased by £636k on last year, reflecting the lower net charge of £3.1m (from £3.7m in 2015/16) on the University’s Local Government Pension Scheme (LGPS) liabilities. An ongoing interest expense for the University relates to the bank loans utilised to fund the London Campus estate infrastructure developments, which this year was £5.5m.
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