46 Financial Statements 2011-12


Notes to the Financial Statements For the year ended 31 July 2012


27 Subsidiary Undertakings and Joint Ventures (continued) The University’s 50% share of the gross assets and liabilities of its joint venture was:


2011-12 Total £’000


Fixed Assets Current Assets


Share of Total Assets Current Liabilities


Liabilities - amounts falling due after more than one year Share of Total Liabilities


35,059 5,319


40,378


(2,566) (11,759) (14,325)


2010-11 Total


£’000


35,213 5,649


40,863 (2,512)


(11,438) (13,950)


28 Related Party Transactions The related parties of the University are the wholly and partially owned subsidiary undertakings (listed in note 27 of these Financial Statements), the University of Essex Students’ Union and the members of the Council.


In the preparation of these Financial Statements, the University has taken advantage of the exemptions contained within Financial Reporting Standard 8 relating to transactions and balances eliminated on consolidation.


All transactions and balances with the subsidiary undertakings have been eliminated on consolidation and therefore no disclosure is given.


Due to the level and nature of transactions between the organisations, the University of Essex Students’ Union is considered to be a related party. In the year to 31 July 2012 the University paid the Union a revenue grant of £981,640 (20010-11: £797,242), and provided accommodation free of rent. The Union’s income and expenditure account shows the following:


Income Expenditure Operating surplus/(loss) before and after transfers from/(to) reserves Mr Nathan Bolton was a Council member during 2011-12 who also sat on Essex Students’ Union Board.


All transactions involving organisations in which a member of Council may have an interest are conducted at arm’s length and in accordance with the University’s Financial Regulations and normal procurement procedures. Given that the University Council includes members drawn from public and private sector organisations, some transactions take place with organisations in which a member of Council may have an interest. However, these transactions occur at the operational level where they are instigated by members of staff and approved by senior management under delegated authority. There is no direct benefit to members of Council.


Members of Council (and its sub-committees) are required to declare all outside interests. When an item arises in which a member has an interest, it must be declared and the member concerned may not take part in that debate or any related decisions.


29 Contingent Liabilities On 14 July 2008, the University provided a guarantee to Barclays Bank PLC on behalf of University Campus Suffolk (UCS). The guarantee supports a loan of £12.5m by the bank to UCS in respect of building works, and liability is shared equally between the University and the University of East Anglia.


On 27 April 2010, UCS entered into an additional loan facility of £8m with Barclays Bank PLC. The loan has been guaranteed by the University and the University of East Anglia in equal proportion. The facility was fully drawn down as at 31 July 2012.


2011-12 £’000 1,566


(1,530) 36


2010-11 £’000 6,039


(6,047) (8)


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