BUSINESS REVIEW
FINANCIAL OVERVIEW
Year ended 31 July:
2011 £m
2010 £m
2009 £m
2008 £m
2007 £m
Funding Council income
74.8
71.6
67.7
63.5
57.9
Teaching income
81.3
74.2
60.0
45.5
35.2
Research income
46.3
37.7
33.3
24.5
20.1
Other income
43.8
43.7
42.2
45.2
39.6
Total income
246.2
227.2
203.2
178.7
152.8
Expenditure
(233.1)
(219.6)
(195.6)
(170.9)
(151.2)
Share of joint venture operating results Operating surplus Exceptional items Transfer from endowment funds Historical cost surplus for the year
0.9
0.8
0.2
(0.9)
(0.8)
14.0
8.4
7.8
6.9
0.8 5.3
–
10.9
0.5
(5.1)
0.6
0.3
0.4
0.2
–
14.6
19.6
8.7
2.0
6.1
The University’s historic cost operating surplus, before exceptional items and endowment transfers, has risen from £8.4 million to £14.0 million, representing some 5.7% (3.7% in 2009/10) of total income. The operating surplus is reported after a £3.1 million (£2.6 million in 2009/10) historic cost impairment of the Geoffrey Pope building. Ignoring this non-recurrent impairment increases the historic cost operating surplus to some 6.9% (4.8% in 2009/10) of total income. This is set against a background of a significant reduction in the future level of Funding Council capital grants. During the year the University has maintained its financial focus on: • Growing earnings from educational activities.
The University is now actively searching for other efficiency savings and earnings generating activities which it could exploit to support improvements in its educational and research activities.
• Growing research income on a sustainable basis. • Managing the financial and cash impacts of the infrastructure and other investments. • Continuing the drive to improve efficiency.
5
REVIEW OF YEAR
These financial statements of the University of Exeter for the year ended 31 July 2011 incorporate the University’s subsidiaries and joint ventures. The summarised historic cost income and expenditure performance of the University over the last five years is set out below: