Middlesex University


Financial Statements 2015/16


Notes to the Accounts for the Year ended 31 July 2016


1. Statement of Accounting Policies


The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial statements.


a. Basis of preparation


These financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP): Accounting for Further and Higher Education 2015 and in accordance with Financial Reporting Standards (FRS 102). The University is a public benefit entity and therefore has applied the relevant public benefit requirement of FRS 102. The financial statements are prepared in accordance with the historical cost convention (modified by the revaluation of land and buildings fixed assets).


b. Going Concern


The University’s business activities and future activities are set out in the Introduction from the Vice-Chancellor. After reviewing the University financial position, forecasts and financial facilities, the Board have a reasonable expectation that the University has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the University has continued to adopt the going concern basis in preparing the financial statements.


c. Basis of Consolidation


The consolidated financial statements include the University and all its subsidiaries for the financial year to 31 July 2016. Details of the subsidiary undertakings included are given at note 28. The subsidiaries are consolidated on a line by line basis with intra-group transactions and balances eliminated on consolidation.


The results of subsidiaries acquired or disposed of during the period are included in the Consolidated Statement of Comprehensive Income and Expenditure from the date of acquisition or up to the date of disposal


The consolidated financial statements do not include the income and expenditure of the Middlesex University Students’ Union (MdxSU) as the University has no financial interest, does not exert control or dominant influence over policy decisions. The grant expenditure included at note 10 represents the University contribution to Students Union activities.


Joint ventures and associated companies are accounted for using the equity method.


d. Income Recognition


Income from the sale of goods or services is credited to the Consolidated Statement of Comprehensive Income and Expenditure when the goods or services are supplied to the external customers or the terms of the contract have been satisfied.


Tuition Fee income chargeable to students or their sponsors is stated gross of any expenditure which is not a discount and credited to the Consolidated Statement of Comprehensive Income and Expenditure over the period in which the students are studying. Where the amount of the tuition fee is reduced, by a discount for prompt payment, income receivable is shown net of the discount. Bursaries, scholarships or fees waived by the University are accounted for gross as expenditure and not deducted from income.


Investment income is credited to the Consolidated Statement of Comprehensive Income and Expenditure on a receivable basis.


Grant funding including funding council block grant and research grants from government sources and from non- government sources are recognised as income when the University is entitled to the income and performance related conditions have been met. Income received in advance of performance related conditions being met is recognised as deferred income within creditors on the Balance Sheet and released to income as the conditions are met.


Capital grants


Government and all other source capital grants are recognised in income when the University is entitled to the funds subject to any performance related conditions being met.


e. Accounting for Charitable Donations and Endowments


Non exchange transactions without performance related conditions are donations and endowments. Donations and endowments with donor imposed restrictions are recognised in income when the University is entitled to the funds. Income is retained within the restricted reserve until such time that it is utilised in line with such restrictions at which point the income is released to general reserves through a reserve transfer.


Donations with no restrictions are recognised in income when the University is entitled to the funds.


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