Financial Statements 2019/2020
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. In addition, the University will shortly introduce a new defined contribution pension scheme for new non-Academic staff joining the University, which will mitigate the long-term risk associated with the current defined benefit scheme.
— Insufficient liquidity to support our long-term investment in infrastructure and technology The University has generated cash from its operating activities and is using this to invest in its infrastructure and facilities in line with its capital plan, which is reviewed regularly to ensure its relevance to the overall University strategy.
Given the pressure on income and costs as described above, enhanced by COVID-19 and its implication, there is additional pressure on cash and liquidity, this increases the risk of the University’s ability to invest in its estate. This year, as an immediate response to COVID-19, we have put a number of such investments on hold. The University is in the process of securing a credit facility which could be used to support some short term investments.
— Reliance on IT systems and importance of data security Technology has become a bigger part of our daily and business lives and has a significant impact on the way we communicate, work, learn and live. Middlesex has invested and will continue to invest in new technologies and its network infrastructure to enhance our students’ learning experience and to improve the way we work. Our robust technological and network infrastructure and our use of technology were key in allowing us to respond to COVID-19 and to continue our core activities while working and learning remotely.
With the ever growing reliance on technology comes greater risk. IT systems, applications and software become ever more vital. Due to COVID-19 more students and staff are relying on the ability to log-in to the University’s systems remotely. A major disruption to our systems and network could have a significant impact on student experience and staff working from home. We are also dependent on the national infrastructure and individual students’ and staff members’ access to the internet. The University provides support to those in need of help with access to the University’s systems, for example the university provides laptops on loan and Wi-Fi dongles.
With the increased online traffic, we are more exposed to attempted hacking into our systems and other fraudulent attempts. The University has a robust cyber security system and plans to mitigate those risks, but the risk cannot be entirely eliminated. We promote cyber-security awareness among staff and students to support this effort.
Going Concern
The University’s business activities and future activities are set out in the University strategic report and overview on pages 7 to 59.
After reviewing the University financial position, forecasts, financial facilities and financial liabilities as provided on page 89 (see accounting policy B. Going Concern) 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.
Middlesex University
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