Middlesex University


Financial Statements 2016/17


The University continues to enhance its academic and infrastructure provision at its student campuses abroad and further develops and implements collaborative partnerships that provide sustainable income streams.


• Unaffordable operating and pension costs


In the current economic climate costs are rising at a higher rate than income with significant pressures from legislative compliance, non-pay inflation, pension costs and exchange rate volatility at a time where there is uncertainty as to whether the level of undergraduate fees for UK/EU students will be permitted to rise beyond 2017/18 levels.


The University has effective cost control measures in place as part of its management of operations to mitigate rising costs.


Pension costs and contributions are not within the University’s direct control and the LGPS balance sheet deficit has a dependency on actuarial valuation assumptions. The University engages with the Trustees and actuaries of the LGPS to ensure the valuation of its share of assets and liabilities in the fund are correctly stated and to influence the fund’s investment strategy.


• Insufficient capital funds to support infrastructure developments


The University sets financial targets at a level intended to generate surpluses for capital investment. It plans and monitors its capital programme within this funding to meet its ongoing infrastructure requirements.


In funding its long term estates developments in part through bank term loans it actively engages with its bankers on restructuring its securities to make borrowing capital available to support future infrastructure developments.


The University’s Board of Governors Committee reviews the key risks at each of its six meetings during the year so that appropriate mitigating actions are taken and monitored.


Outlook


The year has seen a further strengthening of the Balance Sheet and an improvement in the overall financial stability of the University. This has enabled the organisation to cope more readily with the significant challenges ahead, in general for the Higher Education sector, but more particularly for the University.


37


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82