UNIVERSITY OF KENT AT CANTERBURY FINANCIAL ... STATEMENTS 2000/01 1 UNIVERSITY OF KENT AT CANTERBURY FINANCIAL STATEMENTS FOR THE YEAR TO 31 JULY 2001 C O N T E N T S PAGE Treasurer’s

FINANCIAL STATEMENTS 2000/01 1

UNIVERSITY OF KENT AT CANTERBURY

FINANCIAL STATEMENTS FOR THE YEAR TO 31 JULY 2001

C O N T E N T S

PAGE

Treasurer’s Report 2 - 4

Management Statistics 5 - 6

Corporate Governance Statement 7

Responsibilities of the University’s Council 8

Independent Auditors’ Report 9 - 10

Statement of Principal Accounting Policies 11 - 13

Consolidated Income and Expenditure Account 14

Statement of Consolidated Total Recognised Gains and Losses 15

Balance Sheets 16 - 17

Consolidated Cash Flow Statement 18

Notes to the Accounts 19 - 35

2 UNIVERSITY OF KENT AT CANTERBURY

TREASURER’S REPORT

Scope of the Financial Statements

I am pleased to be able to submit the financial statements for the year ended 31 July 2001. These have beenprepared on a consolidated basis, as set out in Note 12, and include all the recommendations outlined inthe Statement of Recommended Practice (SORP) “Accounting in Higher Education Institutions” issued inAugust 2000. The companies consolidated are ASRU Limited, Kent Scientific and Industrial Projects Limitedand UKC Property Services Limited.

The financial statements show a deficit of £130,000 (2000: surplus £764,000) and reflect further investmentin support for widening participation in advance of achieving the full student numbers allocated. Thecontinued failure of government funding to meet nationally agreed pay rises has led to a shortfall in realfunding of around £400,000.

Given continuing pressures on public funding, it is pleasing to note that income has grown by 3.3%, the mostof which comes from teaching income and reflects growth in student numbers of 5.6%. A goodperformance in catering and residences and increases in Other Services Rendered have also contributedto the improved income level. Research income declined, although there is evidence that the value of newgrants is increasing again and this should feed through into future years’ income.

Total Expenditure has increased by 5.2 %. Staff Costs, excluding exceptional items, have risen by 6.4% andreflect additional costs in support for widening participation, reach out activities, and developments inMedway, some of which have additional funding streams attached to them. Additional project income hasoffset some increase in staff costs within the Academic Services. While support staff costs of wideningparticipation have been borne directly, some teaching has been franchised to associate colleges and isreflected in the increase of Other Operating Expenses for Academic Departments.

Summary of Results for the Year

The University’s consolidated results for the years ended 31 July 2001 and 31 July 2000 are summarisedbelow:-

2000/01 1999/00£000 £000

Income 70,857 68,577

Surplus on Disposal of Assets 346 -

Expenditure (71,333) (67,813)

(Deficit)/Surplus for the Year (130) 764

Investment Management

The University’s long-term and endowment investments are currently invested in Common InvestmentFunds managed by CCLA Investment Management Limited and a residual fixed interest portfolio managedby BFS Investments plc.

The Investments Sub-Committee monitors the performance of the Common Investment Funds, which havesubstantially met or exceeded the WM Co Charity Fund Universe benchmarks.



The value of the University’s Endowment Asset Investments was £3,558,000, a decrease of £285,000 overlast year and the value of Current Asset Investments was £6,848,000, a decrease of £732,000 over last year.The total market value of investments since the year-end has fallen in line with the overall marketreductions but with improvement in recent weeks.

Capital Projects

Expenditure on capital projects totalled £6,260,000 during the year. The University recognises that it mustinvest in facilities in order to maintain the high standard of provision that it offers. During the year,significant refurbishment of residential units was carried out as part of an ongoing residentialaccommodation strategy to achieve uniform minimum standards by 2005. 2000-2001 also saw thecompletion of the new Psychology building and 350 seat lecture theatre. A start has been made on a newdrama building to provide improved performance and practice facilities, using project capital funding fromHEFCE. Work also commenced on a new Social Policy research centre which should bring considerableacademic benefits from the co-location of related research groups, part funded by HEFCE.

During the year 7 houses used for student accommodation were sold following a strategic review ofrequirements. The depreciated cost of £369,000 has been deducted from Tangible Assets and a profit ontheir sale of £346,000 has been credited to income. A further 5 houses have been sold since the year-end.

Cash Flow

The capital spend noted above has largely been financed from reserves, with some HEFCE contributions,and has contributed to the decrease in cash balances of £2,840,000 during the year.

Total cash balances and Current Asset Investments at market value have reduced by £3,572,000 as follows:

2001 2000£000 £000

Cash Deposits 2,458 5,298Current Asset Investments at Market Value 6,848 7,580

9,306 12,878

Debtor balances include £289,000 in respect of property disposals. Although debtors for Other ServicesRendered have increased, total amounts owing by students have dropped by a compensating amount,despite being the final year of transition to student fees. The need to fund student debtor balances reducesthe cash available for other activities and has an implicit interest cost for the University. Furthermore, therehas been a need to increase support and counselling for students on hardship matters as the full impact ofthe fee regime takes effect, particularly for non-traditional students.

Future Developments

The University, in collaboration with its partner Further Education Colleges, is continuing to increasestudent numbers and encourage applications from those having non-traditional backgrounds. In order tofurther this aim, it took over the responsibility for the Higher Education provision of Mid Kent College on1 August 2001 and has since introduced new courses and increased recruitment. The University is currentlyinvestigating the possibilities for the development of a new location for its growing activity in Medway.



Further funding from HEFCE for reach-out activities under the Higher Education Innovation Fund willenable the University to build upon the work of the newly established Unit for Regional Enterprise andInnovation. It includes a collaborative project with other Higher Education Institutions in Kent to providesupport for innovation.

Equal Opportunities

In conformity with the general intention of its Charter and the law, the University confirms its commitmentto a policy of equal opportunities for staff and students, and to the implementation of this policy. The policyseeks to eradicate unfair and discriminatory practices wherever they occur, and to encourage a diversecommunity to which all individuals may contribute as fully as possible.

The Deputy Vice-Chancellor has within his portfolio a remit for the oversight of equal opportunities issuesrelating to both staff and students, which are regularly considered by the Staff Policy and Student ServicesCommittees. The University also employs an Equality Co-ordinator who acts as a focus for work on equalopportunities on a day-to-day basis.

Employee Involvement

The University places considerable value on the involvement of its employees and on good communicationwith them. Newsletters are produced during the year for all staff and information and regular news updatesare also available via ‘Campus on-line’ and ‘News on-line’ on the University web site. Staff are alsoencouraged to participate in formal and informal consultation at the University, Faculty and Departmentallevel and have a regular opportunity to interact with the Vice-Chancellor at Forum meetings. In additionthere are termly meetings with the recognised Trades Unions. There are now two non-academic staffrepresentatives on Council.

Payment of Creditors

It is the University’s policy to obtain the best terms for all business and, thus, there is no single policy as tothe terms used. In agreements negotiated with suppliers, the University endeavours to include and abideby specific payment terms.

Conclusion

Once again, this has been a challenging year financially. University staff have coped with considerableadditional demands during the year, arising from pressures on funding and the need to widen participationfrom non-traditional groups. This they have done through hard work and professionalism and the Councilwishes me to thank them once again for their commitment.

I should also like to take this opportunity to thank Professor Sibson, who retired as Vice-Chancellor on 31August 2001 for his immense contribution to the University. It has required strenuous efforts to maintainthe financial viability of this institution in the face of funding restraints. I wish him well in his new role at theHigher Education Statistics Agency.

A A DunningTreasurer

14 December 2001


FINANCIAL INFORMATION


STUDENT INFORMATION


CORPORATE GOVERNANCE STATEMENT

The following statement is given to assist readers of the financial statements to obtain an understanding ofthe Governance arrangements applied by the University’s Council.

The Council welcomes the advice given by the Committee of Chairmen of University Councils and thesecond report of the Nolan Committee on Standards in Public Life, which dealt with higher education. TheCouncil is satisfied that the University’s procedures comply with the principal requirements andrecommendations of these two codes and, as far as is appropriate, with the Report of the Committee onCorporate Governance (June 1998) which embraces the work of the Cadbury, Greenbury and HampelCommittees. The University is a corporation formed by Royal Charter, with charitable status, and not allparts of the Combined Code on Corporate Governance are relevant to the conduct of its business. TheUniversity is also aware of the requirements of the Turnbull Committee’s guidance on risk managementand is working towards the full implementation of these recommendations by 31 July 2003. This is in linewith the transitional dates for implementation issued by HEFCE.

Summary of the University’s Structure of Corporate Governance

The University’s Council comprises lay persons, staff and students appointed under the Statutes of theUniversity, the majority of whom are non-executive. The roles of Chancellor and Pro-Chancellor of theCouncil are separated from the role of the University’s Chief Executive, the Vice-Chancellor. The specificpowers and responsibilities of the Council are set out in the Statutes of the University. By custom andunder the Financial Memorandum with the Higher Education Funding Council for England, the Council holdsto itself the responsibilities for the ongoing strategic direction of the University, approval of majordevelopments and the receipt of regular reports from Executive Officers on the day to day operations ofits business and its subsidiary companies. Council has an annual meeting at which the institutional strategiesare reviewed and formally approves the University’s Corporate Plan. In addition, Council meets at leastthree times a year and has several Committees, including a Finance and Resources Committee, a LayNominations Committee, a Remuneration Committee and an Audit Committee. All of these Committeesare formally constituted with terms of reference and have significant lay membership.

The Finance and Resources Committee is responsible inter alia to Council for the University’s annualrevenue and capital budgets and monitors performance in relation to the approved budgets. The LayNominations Committee considers nominations for vacancies in the Council membership under therelevant Statutes. The Remuneration Committee determines the annual remuneration of the Vice-Chancellor, Deputy Vice-Chancellor and Secretary & Registrar. In addition, the Vice-Chancellor has anadvisory group, which includes lay members, for the review of professorial and equivalent salaries. The AuditCommittee is responsible for meeting, at least twice annually, with the External Auditors and InternalAuditors of the University and reviewing their work. The Committee considers detailed reports togetherwith recommendations for the improvement of the University’s systems of internal control andmanagement’s responses and implementation plans. It also receives and considers reports from the HigherEducation Funding Council for England as they affect the University’s business and monitors adherence withthe regulatory requirements. Whilst senior executives attend meetings of the Audit Committee asnecessary, they are not members of the Committee, and the Committee meets periodically with theExternal Auditors on their own for independent discussions.

The Council maintains a Register of Interests of its members and of the staff of the University. Furtherinformation about the governance of the University and the Register may be obtained from the Secretaryand Registrar.


RESPONSIBILITIES OF THE UNIVERSITY’S COUNCIL

In accordance with the University’s Charter of Incorporation, the Council is responsible for theadministration and management of the affairs of the University and is required to present audited financialstatements for each financial year to the University Court.

The Council is responsible for keeping proper accounting records which disclose with reasonable accuracyat any time the financial position of the University and to enable it to ensure that the financial statementsare prepared in accordance with the Charter & Statutes, the Statement of Recommended Practice onAccounting in Higher Education Institutions and other relevant accounting standards. In addition, within theterms and conditions of a Financial Memorandum agreed between the Higher Education Funding Councilfor England and the Council of the University, the Council, through its designated office holder, is requiredto prepare financial statements for each financial year which give a true and fair view of the state of affairsof the University and of the surplus or deficit and cash flows for that year.

In causing the financial statements to be prepared, the Council has ensured that:• suitable accounting policies are selected and applied consistently;• judgements and estimates are made that are reasonable and prudent;• applicable United Kingdom accounting standards have been followed, subject to any material departures

disclosed and explained in the financial statements;• financial statements are prepared on the going concern basis unless it is inappropriate to presume that

the University will continue in operation. The Council is satisfied that the University has adequateresources to continue in operation for the foreseeable future; for this reason the going concern basiscontinues to be adopted in the preparation of the financial statements.

The Council has taken reasonable steps to:• ensure that funds from the Higher Education Funding Council for England are used only for the

purposes for which they have been given and in accordance with the Financial Memorandum with theFunding Council and any other conditions which the Funding Council may from time to time prescribe;

• ensure that there are appropriate financial and management controls in place to safeguard public fundsand funds from other sources;

• safeguard the assets of the University and prevent and detect fraud;• secure the economical, efficient and effective management of the University’s resources and

expenditure.

The key elements of the University’s system of internal financial control, which is designed to discharge theresponsibilities set out above, include the following:• clear definitions of the responsibilities of, and the authority delegated to, heads of academic and

administrative departments;• a comprehensive medium and short-term planning process, supplemented by detailed annual income,

expenditure, capital and cash flow budgets;• regular reviews of academic performance and financial results involving variance reporting and updates

of forecast outturns;• clearly defined and formalised requirements for approval and control of expenditure, with investment

decisions involving capital or revenue expenditure being subject to formal detailed appraisal and reviewaccording to approval levels set by the Council;

• comprehensive Financial Regulations, detailing financial controls and procedures, approved by theFinance and Resources Committee and Council;

• a professional Internal Audit resource whose annual programme is approved by the Audit Committee.


INDEPENDENT AUDITORS’ REPORT TO THE COUNCIL OFTHE UNIVERSITY OF KENT AT CANTERBURY

We have audited the financial statements of the University of Kent at Canterbury for the year ended 31July 2001, which comprise the Income and Expenditure Account, the Balance Sheet, the CashflowStatement, the Statement of Total Recognised Gains and Losses and the related notes.

These financial statements were prepared under the historic cost convention, as modified by the revaluationof certain fixed assets, and the accounting policies set out therein.

Respective Responsibilities of the Council and Auditors

As described in the statement of the Council’s responsibilities, the Council is responsible for thepreparation of the financial statements in accordance with applicable law and United Kingdom AccountingStandards.

Our responsibility is to audit the financial statements in accordance with relevant legal and regulatoryrequirements and United Kingdom Auditing Standards.

We report to you our opinion as to whether the financial statements give a true and fair view. We alsoreport to you whether, in our opinion monies expended out of funds from whatever source administeredby the University for specific purposes were properly applied for those purposes and where relevantmanaged in accordance with appropriate legislation and whether monies expended out of funds providedby the Higher Education Funding Council for England were applied in accordance with the financialmemorandum and any other terms and conditions attached to them.

We also report to you if, in our opinion, the Treasurer’s Report is not consistent with the financialstatements, if the University has not kept proper accounting records, or if we have not received all theinformation and explanations we require for our audit.

We read the Treasurer’s Report and consider the implications for our report if we become aware of anyapparent misstatements within it.

Basis of Audit Opinion

We conducted our audit in accordance with United Kingdom Auditing Standards issued by the AuditingPractices Board, and the Audit Code of Practice issued by the Higher Education Funding Council forEngland. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosuresin the financial statements. It also includes an assessment of the significant estimates and judgements madeby the Council in the preparation of the financial statements, and of whether the accounting policies areappropriate to the University’s circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which weconsidered necessary in order to provide us with sufficient evidence to give reasonable assurance that thefinancial statements are free from material misstatement, whether caused by fraud or other irregularityor error. In forming our opinion we also evaluated the overall adequacy of the presentation of informationin the financial statements.


INDEPENDENT AUDITORS’ REPORT TO THE COUNCIL OFTHE UNIVERSITY OF KENT AT CANTERBURY

Opinion

In our opinion the financial statements give a true and fair view of the state of affairs of the University andits subsidiary companies at 31 July 2001 and of the income and expenditure, recognised gains and losses andcashflows for the year then ended and have been properly prepared in accordance with the Statement ofRecommended Practice on Accounting in Higher Education Institutions and with the University’s Charterof Incorporation.

In our opinion, in all material respects, funds from whatever source administered by the University forspecific purposes were properly applied for the intended purposes and, where relevant, managed inaccordance with appropriate legislation for the year ended 31 July 2001.

In our opinion, in all material respects, funds provided by the Higher Education Funding Council for Englandwere applied in accordance with the financial memorandum and any other terms and conditions attachedto them for the year ended 31 July 2001.

RSM Robson RhodesChartered Accountants and Registered Auditors

Hemel Hempstead, England18 December 2001


STATEMENT OF PRINCIPAL ACCOUNTING POLICIES

1. Basis of Preparation

These financial statements have been prepared in accordance with the Statement of RecommendedPractice (SORP): Accounting in Further and Higher Education Institutions and in accordance withapplicable Accounting Standards.

2. Basis of Accounting

The financial statements have been prepared under the historical cost convention modified by therevaluation of certain fixed assets and investments.

3. Basis of Consolidation

The consolidated financial statements include the University and its subsidiary undertakings, ASRULimited, Kent Scientific and Industrial Projects Limited and UKC Property Services Limited. Intra-group sales and profits are eliminated fully on consolidation. In accordance with FRS2, the activitiesof the Students’ Union have not been consolidated because the University does not control thoseactivities. The activities of The University of Kent Development Trust have not been included, asthe amounts involved are immaterial.

4. Recognition of Income

Income from Research Grants, Contracts and Other Services Rendered is included to the extentof completion of the contract or service concerned. This is generally equivalent to the sum of therelevant expenditure incurred during the year and any related contributions towards overheadcosts. All income from short-term deposits is credited to the Income and Expenditure Accountin the period in which it is earned.

Income from specific endowments and donations is included to the extent of the relevantexpenditure incurred during the year, together with any related contributions towards overheadcosts.

Recurrent grants from the Higher Education Funding Council for England (HEFCE) are recognisedin the period in which they are received. Non-recurrent grants from HEFCE or other bodiesreceived in respect of the acquisition or construction of fixed assets are treated as deferred capitalgrants and amortised in line with depreciation over the life of the assets.

5. Maintenance of Premises

The University has a long-term rolling maintenance plan, which forms the basis of the ongoingmaintenance of the estate. The cost of long-term and routine corrective maintenance is chargedto the Income and Expenditure Account as incurred.

6. Foreign Currency Translation

Transactions denominated in foreign currencies are recorded at the rate of exchange ruling at thedates of the transactions. Monetary assets and liabilities denominated in foreign currencies aretranslated into sterling either at year end rates or, where there are related forward foreignexchange contracts, at contract rates. The resulting exchange differences are dealt with in thedetermination of income and expenditure for the financial year.



7. Pension Schemes

Retirement benefits for most employees of the University are provided by the UniversitiesSuperannuation Scheme (USS) and the Superannuation Arrangements of the University of London(SAUL). These are defined benefit schemes, which are externally funded and contracted out of theState Earnings-Related Pension Scheme. Both Schemes are valued every three years byprofessionally qualified independent actuaries using the projected unit method, the rates ofcontribution payable being determined by the trustees on the advice of the actuaries. In theintervening years, the actuaries review the progress of the Schemes. Pension costs are assessed inaccordance with the advice of the actuaries based on the latest actuarial valuations of the Schemesand are accounted for on the basis of charging the cost of providing pensions over the periodduring which the Institution benefits from the employees’ services.

8. Tangible Fixed Assets

Land and BuildingsThe University buildings are specialised buildings and therefore it is not appropriate to value themon the basis of open market value. Land is shown at valuation on an open market existing use basisas at 3 May 1995. Buildings are included in the Balance Sheet at cost together with subsequentrefurbishment expenditure less accumulated depreciation. Freehold land is not depreciated.Depreciation on buildings is provided on a straight-line basis over the estimated useful lives asfollows:

Freehold buildings 50 yearsComponents of new buildings e.g. lift, heating, electrical system etc 25 yearsRefurbishment of accommodation and academic facilities 15 yearsRefurbishment of dining and trading facilities 5 years

Where land and buildings are acquired with the aid of specific grants they are capitalised anddepreciated as above. The related grants are credited to a deferred capital grant account and arereleased to the Income and Expenditure Account over the expected useful economic life of therelated asset on a basis consistent with the depreciation policy.

Finance costs, which are directly attributable to the construction of land and buildings, arecapitalised as part of the cost of those assets, where appropriate.

A review of the impairment of a fixed asset is carried out if events or changes in circumstancesindicate that the carrying value of the fixed asset may not be recoverable.

Buildings under construction are accounted for at cost, based on the value of architects’ certificatesand other direct costs incurred to 31 July. They are not depreciated until they are brought intouse.

EquipmentEquipment costing less than £5,000 per individual item or group of related items is written off inthe year of acquisition. All other equipment is capitalised at cost.



8. Tangible Fixed Assets (continued)

Equipment (continued)Capitalised equipment is depreciated over its useful economic life as follows:

General equipment 5 yearsComputer equipment and software 3 to 5 yearsEquipment acquired for specific research or other projects Project life (generally 3 years)

Where equipment is acquired with the aid of specific grants it is capitalised and depreciated inaccordance with the above policy, with the related grant being credited to a deferred capital grantand released to the Income and Expenditure Account over the expected useful economic life ofthe related equipment.

9. Investments

Fixed asset investments that are not listed on a recognised stock exchange are carried at historicalcost less any provision for impairment of their value.

Investments that form part of endowment assets are included in the Balance Sheet at market value.Current asset investments are included at the lower of their original cost and net realisable valueon a portfolio basis.

10. Stocks

Stocks are stated at the lower of their cost and net realisable value. Where necessary, provisionis made for obsolete, slow moving and defective stocks.

11. Taxation

The University is an exempt charity within the meaning of Schedule 2 of the Charities Act 1993 andas such is a charity within the meaning of Section 506(1) of the Income and Corporation Taxes Act(ICTA) 1988. Accordingly, the University is potentially exempt from taxation in respect of incomeor capital gains received within categories covered by Section 505 of the ICTA 1988 or Section 256of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are appliedto exclusively charitable purposes.

The University receives no similar exemption in respect of VAT. As commercial organisations, theUniversity’s subsidiary companies are subject to corporation tax and VAT.

12. Liquid Resources

Liquid resources include sums on short-term deposits with recognised banks and building societies.

13. Provisions

Provisions are recognised when the institution has a present legal or constructive obligation as aresult of a past event, it is probable that a transfer of economic benefit will be required to settlethe obligation and a reliable estimate can be made of the amount of the obligation.


CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT

For the Year Ended 31 July 2001

Note 2000/01 1999/00£000 £000

INCOMEFunding Council Grants 1 25,800 24,368Tuition Fees and Education Contracts 2 16,993 15,981Research Grants and Contracts 3 8,489 8,801Other Income 4 18,449 17,494Endowment and Investment Income 5 1,126 1,933

Total Income 70,857 68,577

EXPENDITUREStaff Costs 6 44,654 41,954Exceptional Restructuring Expenses 6 343 994Other Operating Expenses 7 20,773 19,405Depreciation 11 3,470 3,353Interest Payable 8 2,093 2,107

Total Expenditure 71,333 67,813

(Deficit)/Surplus on Continuing Operations after Depreciation of Assets at Cost and before Tax (476) 764

Surplus on Disposal of Assets 346 -

Taxation 9 - -

(Deficit)/Surplus on Continuing Operations after Depreciation of Assets at Cost, Disposal of Assets and Tax (130) 764

There is no difference between the deficit stated above and the historical cost equivalent.

The consolidated income and expenditure of the University and its subsidiaries is in respect of continuingactivities.


STATEMENT OF CONSOLIDATED TOTAL RECOGNISED GAINS AND LOSSES


Note 2000/01 1999/00£000 £000

(Deficit)/Surplus on Continuing Operations after Depreciation of Assets at Cost, Disposal of Assets and Tax (130) 764

Donated Assets Received 20 -

Unrealised Losses on Endowment Asset Investments 20 (293) (217)

New Endowments and Income Retained for the Year 20 8 272

TOTAL RECOGNISED GAINS AND LOSSES RELATING TO THE YEAR (395) 819

RECONCILIATION

Opening Reserves and Endowments 37,339 36,520

Total Recognised Gains and Losses for the Year (395) 819

Closing Reserves and Endowments 36,944 37,339


BALANCE SHEETS AS AT 31 JULY 2001

Consolidated University

Note 2001 2000 2001 2000£000 £000 £000 £000

FIXED ASSETSTangible Assets 11 60,196 57,754 60,041 57,519Investments 12 7 8 307 308

60,203 57,762 60,348 57,827

ENDOWMENT ASSETS 13 3,558 3,843 3,558 3,843

CURRENT ASSETSStocks 601 583 598 578Debtors 14 6,810 6,819 6,361 6,718Investments 13 5,741 5,892 5,741 5,892Short-Term Deposits 27 - 2,000 - 2,000Cash at Bank and in Hand 27 2,458 3,298 2,716 3,355

15,610 18,592 15,416 18,543

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 15 (11,618) (10,871) (11,224) (10,565)

NET CURRENT ASSETS 3,992 7,721 4,192 7,978

TOTAL ASSETS LESS CURRENT LIABILITIES 67,753 69,326 68,098 69,648

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 16 (22,561) (22,986) (22,561) (22,986)

PROVISIONS FOR LIABILITIES AND CHARGES 18 (426) (1,102) (426) (1,102)

NET ASSETS 44,766 45,238 45,111 45,560


BALANCE SHEETS AS AT 31 JULY 2001

Consolidated University

Note 2001 2000 2001 2000£000 £000 £000 £000

DEFERRED CAPITAL GRANTS 19 7,822 7,899 7,822 7,899

ENDOWMENTSSpecific 20 3,047 3,270 3,047 3,270General 20 511 573 511 573

3,558 3,843 3,558 3,843

RESERVESRevaluation Reserve 21 8,466 8,466 8,466 8,466General Reserve 22 24,920 25,030 25,265 25,352

33,386 33,496 33,731 33,818

TOTAL FUNDS 44,766 45,238 45,111 45,560

The financial statements on pages 11 to 35 were approved by the Council on 14 December 2001 and signedon its behalf by:

Professor D Melville, Vice-ChancellorA A Dunning, TreasurerD K Everitt, Director of Finance


CONSOLIDATED CASH FLOW STATEMENT


Note 2000/01 1999/00£000 £000

Cash Flow from Operating Activities 23 3,405 3,431

Returns on Investments and Servicing of Finance 24 (1,218) (72)

Capital Expenditure and Financial Investment 25 (4,789) (3,955)

Management of Liquid Resources 26 2,151 (618)

Financing (389) (357)

Decrease in Cash in the Year (840) (1,571)

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

2000/01 1999/00£000 £000

Decrease in Cash in the Year (840) (1,571)

Cash (Outflow)/Inflow from Liquid Resources (2,151) 618

Repayment of Debt 389 357

Change in Net Debt in the Year (2,602) (596)

Net Debt at 1 August (12,185) (11,589)

Net Debt at 31 July 27 (14,787) (12,185)


NOTES TO THE ACCOUNTS

1. FUNDING COUNCIL GRANTS2000/01 1999/00

£000 £000

Recurrent Grant (Higher Education Funding Council) 24,594 23,387Specific Grants

Joint Information Systems Committee (JISC) 303 247All Other Grants 573 313

Deferred Capital Grants ReleasedBuildings (Note 19) 287 283Equipment (Note 19) 43 138

25,800 24,368

2. TUITION FEES AND EDUCATION CONTRACTS2000/01 1999/00

£000 £000

Full-time Students 7,642 7,201Full-time Students Charged Overseas Fees 6,929 6,491Part-time Fees 1,267 1,293Research Training Support Grants 99 126Short Course Fees 1,056 870

16,993 15,981

3. RESEARCH GRANTS AND CONTRACTS2000/01 1999/00

£000 £000

Research Councils 2,983 2,798UK Based Charities 869 679UK Industry 670 940European Commission 498 577Other Grants and Contracts 3,469 3,807

8,489 8,801

4. OTHER INCOME2000/01 1999/00

£000 £000

Residences, Catering and Conferences 11,008 10,394Other Income-generating Activities 3,104 2,647Other Grant Income 711 671Other Income 3,626 3,782

18,449 17,494



5. ENDOWMENT AND INVESTMENT INCOME2000/01 1999/00

£000 £000

Transferred from Specific Endowments (Note 20) 377 305Income from General Endowment Asset Investments (Note 20) 14 71Other Investment Income 338 1,125Other Interest Receivable 397 432

1,126 1,933

6. STAFF COSTS

The average number of persons (including senior post holders) employed by the University during the yearexpressed as full time equivalents was:

2000/01 1999/00Avge FTE Avge FTE

No. No.

Academic Staff 414 413Research Staff 115 106Academic Related Staff 198 178Clerical Staff 331 316Manual and Ancillary 330 354Technical 72 69Subsidiary Companies 43 48

1,503 1,484

2000/01 1999/00£000 £000

Staff Costs for the above persons:Wages and Salaries 37,643 35,377Social Security Costs 2,965 2,832Other Pension Costs (Note 28) 4,046 3,745Exceptional Restructuring Costs 343 994

44,997 42,948

The Exceptional Restructuring Costs relate entirely to early retirements.



6. STAFF COSTS (continued)2000/01 1999/00

£000 £000Staff Costs by Department:Academic Departments 22,053 20,914Academic Services 2,936 2,595Research Grants and Contracts 4,941 4,678Administration 6,181 5,502Catering and Residences 4,484 4,070Premises 1,924 2,303Other 2,135 1,892

Sub-total 44,654 41,954

Exceptional Restructuring Expenses 343 994

Total 44,997 42,948

Emoluments of the Vice-Chancellor:Salary 116 107Pension cost 16 15

132 122

The emoluments of the Vice-Chancellor are determined by the Remuneration Committee who took intoaccount performance during the year and data from comparable institutions.

The emoluments are shown on the same basis as that for higher paid staff.

The University’s pension contributions to USS are paid at the same rates as for other academic staff.

In June 2000, Professor Robin Sibson indicated his intention to retire as Vice-Chancellor with effect from31 August 2001 and not to seek renewal of his appointment. The Remuneration Committee agreed at thattime that compensation should be payable in respect of loss of office, on a basis comparable to otherprevious University arrangements for early retirement. Provision has been made at 31 July 2001 equivalentto an enhancement of pension entitlement as follows:

£

2 years 112 days Enhancement of pension entitlement 73,647Lump sum payable 85,980

Total agreed payment 159,627

This was paid after the year-end.

Remuneration of other Higher Paid Staff, excluding employer’s pensioncontributions: No. No.

£50,000 - £59,999 25 17£60,000 - £69,999 4 4



7. OTHER OPERATING EXPENSES2000/01 1999/00

£000 £000

Academic Departments 5,231 4,505Academic Services 1,949 1,614Research Grants and Contracts 1,965 2,352Administration 3,200 3,257Catering and Residences 3,418 3,609Premises 3,185 2,487Other Expenses 1,825 1,581

20,773 19,405

Other Operating Expenses include:Auditors’ Remuneration 32 32Auditors’ Remuneration in Respect of Non-Audit Services 14 11

46 43

8. INTEREST PAYABLE2000/01 1999/00

£000 £000

On Bank Overdrafts and Other Loans 46 27On Bank Loans repayable wholly in more than five years 2,047 2,080

2,093 2,107

9. TAXATION2000/01 1999/00

£000 £000UK Corporation Tax payable on the profits of the University and Subsidiary Companies Nil Nil



10. (DEFICIT)/SURPLUS ON CONTINUING OPERATIONS FOR THE YEAR

The (Deficit)/Surplus on Continuing Operations for the Year is made up as follows:Note 2000/01 1999/00

£000 £000

University (Deficit)/Surplus for the Year (107) 512Surplus generated by Kent Scientific and Industrial Projects Limited, UKC Property Services Limited and transferred to the University under deed of covenant 12 47 177Deficit incurred by ASRU Limited and consolidated with the University 12 (70) (273)Write down of Investment in ASRU Limited 12 - 348

(130) 764

11. TANGIBLE FIXED ASSETS (GROUP)

Freehold Landand Buildings Equipment Total

£000 £000 £000Cost or ValuationAt 1 August 2000 70,133 17,837 87,970Additions 3,679 2,601 6,280Disposals (450) (455) (905)

At 31 July 2001 73,362 19,983 93,345

DepreciationAt 1 August 2000 15,740 14,476 30,216Charge for the Year 1,365 2,104 3,469Eliminated in Respect of Disposals (81) (455) (536)

At 31 July 2001 17,024 16,125 33,149

Net Book ValueAt 31 July 2001 56,338 3,858 60,196

At 1 August 2000 54,393 3,361 57,754

Financed by Capital Grant 7,565 234 7,799Other 48,773 3,624 52,397

Net Book Value at 31 July 2001 56,338 3,858 60,196



11. TANGIBLE FIXED ASSETS (UNIVERSITY ONLY)

Freehold Landand Buildings Equipment Total

£000 £000 £000Cost or ValuationAt 1 August 2000 70,133 17,266 87,399Additions 3,679 2,587 6,266Disposals (450) (440) (890)

At 31 July 2001 73,362 19,413 92,775

DepreciationAt 1 August 2000 15,740 14,140 29,880Charge for the Year 1,365 2,010 3,375Disposals (81) (440) (521)

At 31 July 2001 17,024 15,710 32,734

Net Book ValueAt 31 July 2001 56,338 3,703 60,041

At 1 August 2000 54,393 3,126 57,519

Financed by Capital Grant 7,565 234 7,799Other 48,773 3,469 52,252

Net Book Value at 31 July 2001 56,338 3,703 60,041

The transitional rules set out in FRS15 Tangible Fixed Assets have been applied on implementing FRS15.Accordingly the book values at implementation have been retained. The original revaluation of land in 1995has not been updated.

Land was acquired both by gift and purchase (£139,000) and is stated at valuation of £8,570,000 and notdepreciated. The valuation was prepared by Grimley - J R Eve (Chartered Surveyors) on an open marketexisting use basis as at 3 May 1995. The land is included in the Balance Sheet at this valuation and the excessof the valuation over net book value (£139,000) has been taken to the Revaluation Reserve (Note 21).

Buildings with a net book value of £7,539,691 and cost of £14,368,467 have been funded from Treasurysources; should these particular buildings be sold, the University would either have to surrender theproceeds to the Treasury or use them in accordance with the Financial Memorandum with the HigherEducation Funding Council for England.



12. INVESTMENT IN SUBSIDIARY COMPANIESConsolidated University

2001 2000 2001 2000£000 £000 £000 £000

Investment in Subsidiary Companies at Cost Nil Nil 648 648Write down of Investment in ASRU Limited - - (348) (348)Loans 7 8 7 8

7 8 307 308

At 31 July 2001 the University held an interest in the following companies:

Company Share Capital Activity

ASRU Limited £648,000 Statistical InformationCanterbury Business School Limited £2 DormantInvicta Technology Investments Limited £1 DormantKent Business School Limited £1 DormantKent Management School Limited £2 DormantKent Scientific and Industrial Projects Limited £100 Scientific and Industrial ConsultancySummer Academy Limited £2 DormantUKC Property Services Limited £2 Property Management

The financial year-end of all the subsidiaries is 31 July. All the companies are wholly owned by the Universityand are registered in England.

13. INVESTMENTSConsolidated University

2001 2000 2001 2000£000 £000 £000 £000

Endowment Asset Investments:Cost Price 3,861 3,852 3,861 3,852Market Value 3,558 3,843 3,558 3,843

Current Asset Investments:Cost Price 5,741 5,892 5,741 5,892Market Value 6,848 7,580 6,848 7,580

Subsidiary Company Investments:Cost Less Provision for Diminution in Value - - 300 300



13. INVESTMENTS (continued)Consolidated University

2001 2000 2001 2000£000 £000 £000 £000

Total Investment Assets:Balance at 1 August at Market Value 11,423 11,225 11,723 11,873Additions - 10,436 - 10,436Disposals and write down of ASRU Limited (142) (9,547) (142) (9,895)Depreciation (875) (691) (875) (691)

Investment Assets at Market Value 10,406 11,423 10,706 11,723

Investments comprise the following:Charities Investment Funds 8,106 8,789 8,106 8,789Convertible Loan Stocks - 42 - 42Debenture and Unsecured Loan Stocks 1,603 1,722 1,603 1,722Equities 36 97 36 97Preference Shares 661 773 661 773Subsidiary and Associated Companies - - 300 300

10,406 11,423 10,706 11,723

14. DEBTORSConsolidated University

2001 2000 2001 2000£000 £000 £000 £000

Amounts falling due within one year:Debtors 4,083 3,887 3,548 3,391Research Grants and Contracts 1,177 990 1,177 990Owing by Subsidiaries - - 86 395Prepayments and Accrued Income 1,550 1,942 1,550 1,942

6,810 6,819 6,361 6,718

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEARConsolidated University

2001 2000 2001 2000£000 £000 £000 £000

Bank Loans Due for Repayment 425 389 425 389Payments Received in Advance - Funding Councils 864 764 864 764Payments Received in Advance 4,625 4,688 4,497 4,538Creditors and Accrued Liabilities 3,943 3,406 3,766 3,299Taxation and Social Security 1,761 1,624 1,672 1,575

11,618 10,871 11,224 10,565



16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEARConsolidated University

2001 2000 2001 2000£000 £000 £000 £000

Mortgages secured on University Buildings 22,986 23,375 22,986 23,375Less: Bank Loans repayable within one-year (425) (389) (425) (389)

22,561 22,986 22,561 22,986

Payable as follows:Between one and two years 463 424 463 424Between two and five years 1,655 1,518 1,655 1,518After five years 20,443 21,044 20,443 21,044

22,561 22,986 22,561 22,986

Loan Status:Loans are with National Westminster Bank Plc and are repayable by equal instalments commencing on 23January 1997 and continuing until 24 January 2022. These loans have been negotiated at a fixed rate ofinterest of 8.75% for 25 years until 22 January 2022.

17. FINANCIAL COMMITMENTS

OPERATING LEASE COMMITMENTS:

The payments, which ASRU Limited (a wholly owned subsidiary of the University) is committed to makein the next year under operating leases are as follows:

2001 2000£000 £000

Leases expiring after five years 80 78

18. PROVISIONS FOR LIABILITIES AND CHARGESConsolidated and University

Restructuring Total £000 £000

At 1 August 1,102 1,102Utilised in the Year (777) (777)Transfer from Income and Expenditure Account 101 101

At 31 July 426 426

The restructuring provision relates entirely to early retirements.



19. DEFERRED CAPITAL GRANTSConsolidated and University

Funding Other Grants Council & Benefactions Total

£000 £000 £000

At 1 August 2000Buildings 7,579 26 7,605Equipment 43 251 294

7,622 277 7,899

Cash ReceivedBuildings 271 - 271Equipment - 235 235

271 235 506

Released to Income and ExpenditureBuildings (Notes 1 and 4) (287) (1) (288)Equipment (Notes 1 and 4) (43) (252) (295)

(330) (253) (583)

At 31 July 2001Buildings 7,563 25 7,588Equipment - 234 234

7,563 259 7,822



20. ENDOWMENTSConsolidated and University

Specific General Total£000 £000 £000

At 1 August 2000 at Market Value 3,270 573 3,843

Investment Income 126 14 140Additions 259 - 259Transferred to Income and Expenditure Account (Note 5) (377) (14) (391)

Movement before Depreciation 8 - 8

Unrealised Losses (231) (62) (293)

At 31 July 2001 at Market Value 3,047 511 3,558

Representing:Bursaries, Fellowships and Scholarship Funds 464 - 464Chairs and Lectureship Funds 1,465 - 1,465Memorial Funds 217 - 217Prize Funds 138 - 138Other Funds 763 511 1,274

3,047 511 3,558

21. REVALUATION RESERVEConsolidated University

2001 2000 2001 2000£000 £000 £000 £000

Net Revaluation AmountAt 31 July and 1 August 8,466 8,466 8,466 8,466

The Revaluation Reserve relates to land valued at £8,431,363 and donated equipment with a book value of£34,372.



22. MOVEMENT ON GENERAL RESERVESConsolidated University

£000 £000Income and Expenditure Account Reserve:Balance at 1 August 2000 25,030 25,352

Historical Cost Deficit after Depreciation of Assets at Cost, Disposal of Assets and Tax (130) (107)

Transfer from Revaluation Reserve for Depreciation of Donated Equipment 20 20

Balance at 31 July 2001 24,920 25,265

23. RECONCILIATION OF CONSOLIDATED OPERATING SURPLUSTO NET CASH FROM OPERATING ACTIVITIES

2000/01 1999/00£000 £000

(Deficit)/Surplus before Tax (130) 764Depreciation (Note 11) 3,469 3,353(Profit)/Loss on Sale of Fixed Assets (346) 10Deferred Capital Grants Released to Income (Note 19) (583) (706)Interest and Endowments Receivable (1,126) (1,933)Interest Payable 2,093 2,107(Increase)/Decrease in Stocks (18) 8Decrease in Debtors, Prepayments and Research Grants 12 270Increase in Creditors 710 334Decrease in Provisions (676) (776)

Net Cash Inflow from Operating Activities 3,405 3,431

24. RETURNS ON INVESTMENTS AND SERVICING OF FINANCE2000/01 1999/00

£000 £000

Income from Endowments 140 478Income from Short-Term Investments 397 432Other Interest Received 338 1,125Interest Paid (2,093) (2,107)

Net Cash Outflow from Returns on Investments and Servicing of Finance (1,218) (72)



25. CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT2000/01 1999/00

£000 £000

Purchase of Tangible Fixed Assets (6,260) (4,517)Payment to Acquire Endowment Assets (9) (271)Sale of Tangible Fixed Assets 715 -Deferred Capital Grants Received 506 664Endowments Received 259 169

Net Cash Outflow for Capital Expenditure and Financial Investment (4,789) (3,955)

26. MANAGEMENT OF LIQUID RESOURCES2000/01 1999/00

£000 £000

Decrease/(Increase) in Current Asset Investments 2,151 (618)

Net Cash Outflow from Management of Liquid Resources 2,151 (618)

27. ANALYSIS OF CHANGES IN NET DEBTAt Cash Other At

1 August Flows Changes 31 July2000 2001£000 £000 £000 £000

Current Asset Investments 5,892 (151) 5,741Short-Term Deposits 2,000 (2,000) -Cash at Bank and in Hand 3,298 (840) 2,458

11,190 (2,991) 8,199Debt due within one year:Bank Loan (389) 389 (425) (425)Debt due after one year (22,986) - 425 (22,561)

(12,185) (2,602) - (14,787)



28. PENSION SCHEMES

The two principal pension schemes for the University’s staff are the Universities Superannuation Scheme(USS) and the Superannuation Arrangements of the University of London (SAUL). The following two notesgives a full explanation of these schemes.

The total pension cost for the University and its subsidiaries are:

2000/01 1999/00£000 £000

Contributions to USS 3,060 2,811Contributions to SAUL 982 932Contributions to Other Schemes 4 2

Total Pension Cost (Note 6) 4,046 3,745

USS PENSION SCHEME

The University participates in the Universities Superannuation Scheme, a defined benefit scheme which isexternally funded and contracted out of the State Earnings-Related Pension Scheme. The assets of thescheme are held in a separate trustee-administered fund. It is not possible to identify each institution’s shareof the underlying assets and liabilities of the scheme and hence contributions to the scheme are accountedfor as if it were a defined contribution scheme. The cost recognised within the deficit for the year in theIncome and Expenditure Account being equal to the contributions payable to the scheme for the year.

The latest actuarial valuation of the scheme was at 31 March 1999. The assumptions which have the mostsignificant effect on the result of the valuation are those relating to the rate of return on investments (i.e.the valuation rate of interest) and the rates of increase in salary and pensions. In relation to the past serviceliabilities the financial assumptions were derived from market yields prevailing at the valuation date. It wasassumed that the valuation rate of interest would be 4.5% per annum, salary increases would be 3.6% perannum and pensions would increase by 2.6% per annum. In relation to the future service liabilities it wasassumed that the valuation rate of interest would be 5.5% per annum, including an additional investmentreturn assumption of 1% per annum, salary increases would be 3.5% per annum and pensions would increaseby 2.5%. The valuation was carried out using the projected unit method.

At the valuation date, the market value of the assets of the scheme was £18,870 million (including anestimated £55 million in respect of outstanding bulk transfer payments due) and the value of the pastservice liabilities was £17,427 million leaving a surplus of assets of £1,443 million. The assets therefore weresufficient to cover 108% of the benefits which had accrued to members after allowing for expected futureincreases in earnings.

The institution contribution rate required for future service benefits alone at the date of the valuation was16.3% of salaries but it was agreed that the institution contribution rate will be maintained at 14% ofsalaries. To fund this reduction of 2.3% for the period of 11 years from the date of the valuation (theaverage outstanding working lifetime of the current members of the scheme) required the use of £561million of the surplus. It was also agreed, following the valuation, that £201 million of the surplus would beused to fund certain benefit improvements. This left a past service surplus of £681 million (including theSupplementary Section) to be carried forward.



28. PENSION SCHEMES (continued)

USS PENSION SCHEME (continued)

Surpluses or deficits which arise at future valuations may impact on the institution’s future contributioncommitment. The next formal actuarial valuation is due as at 31 March 2002 when the above rates will bereviewed.

The USS pension cost of the University was £3,059,371 (1999/00: £2,810,615). This includes £283,597 (2000:£261,187) outstanding contributions at the balance sheet date. The contribution rate payable by theinstitution was 14% of pensionable salaries.

SAUL PENSION SCHEME

The University participates in a centralised defined benefit scheme for all qualified employees with the assetsheld in separate Trustee-administered funds. The University has now adopted FRS17 for accounting forpension costs. It is not possible to identify the University’s share of the underlying assets and liabilities ofSAUL. Therefore contributions are accounted for as if SAUL were a defined contribution scheme andpension costs are based on the amounts actually paid (i.e. cash amounts) in accordance with paragraphs 8-12of FRS17.

The scheme is subject to triennial valuation by professionally qualified and independent actuaries. The lastavailable valuation was carried out as at 31 March 1999 using the projected unit credit method in which theactuarial liability makes allowance for projected earnings. The following assumptions were used to assessthe past service funding position:

Investment return 4.5% per annumGeneral level of salary growth 4.1% per annum*Pension increases 2.6% per annum* excluding an allowance for promotional increases.

The actuarial valuation applies to the scheme as a whole and does not identify surpluses or deficits applicableto individual Employers. As a whole, the market value of the scheme’s assets was £846.6 million representing120% of the liability for benefits after allowing for expected future increases in salaries.

In relation to future service liabilities it was assumed that real investment return above prices were 4% perannum and real salary increases above prices of 1.5% per annum. The contribution rate required for futureservice benefits alone at the date of the valuation was 14.4% of salaries per annum.

Employers who have recently joined SAUL (“New Employers”) and certain employee groups (as agreed bythe Trustee of SAUL), pay 14% of salaries per annum until the second actuarial valuation after entry (orsome other period as agreed with the Trustee). The past service surplus allows all other Employers to paycontributions at the rate of 10.5% of pensionable salaries per annum. The surplus also supports thecontinuation of the Employee contribution rate of 5% of salaries per annum.

The next formal valuation is due at 31 March 2002 when the above rates will be reviewed.

The SAUL pension cost for the University was £982,139 (2000: £931,757). This includes £87,076 (2000:£81,962) outstanding contributions at the balance sheet date.



29. CAPITAL COMMITMENTSConsolidated University

2001 2000 2001 2000£000 £000 £000 £000

Contractual Commitments at 31 July 1,984 2,136 1,984 2,136

30. CONTINGENT LIABILITIES

UMALT

The University is a member of UMALT, a company limited by guarantee formed to provide a mutualassociation for terrorism risks. Under the terms of its membership, each member acts as insurer andinsured. If the association as a whole suffers a shortfall in any underwriting year, the members are liable fortheir prorated share, spread using a bank facility over 7 years. The University is a guarantor, on a joint andseveral basis with other members, of this £60 million bank facility. No liability has yet arisen under thisguarantee.

PENSIONS CONTINGENT LIABILITY

Decisions by the European Court of Justice may increase the liability for pension provision of UKemployers, including institutions such as University of Kent at Canterbury. Whilst a UK Industrial Tribunalcase has placed time limits on claims, thus suggesting that any liability will be limited, ultimately appeals wouldbe back to the European Court of Justice. In view of this continuing uncertainty, no financial provision hasbeen made in these financial statements in relation to this matter.

CROSS-GUARANTEES

On the 23 June 1993 the University entered into a cross guarantee for the indebtedness of ASRU Limitedand Kent Scientific and Industrial Projects Limited in favour of National Westminster Bank PLC. The bankoverdraft of subsidiaries at the year-end was £439,138.

CLAIM AGAINST THE UNIVERSITY

Negotiations are expected to be concluded in the next few months regarding the building of The Venueand the outcome is not expected to have a material impact on the year’s results.



31. ACCESS FUNDS2000/01 1999/00

£000 £000

Funding Council Grants 418 423Disbursed to Students (369) (341)

Balance Unspent at 31 July 49 82

Funding Council Grants are available solely for students and the University acts only as paying agent. TheGrants and related disbursements are therefore excluded from the Income and Expenditure Account. Itis no longer a requirement to operate a separate interest bearing bank account for access funds and theyare now handled through the University banking facility. Neither interest nor audit fees therefore accruedirectly to these funds.

32. RELATED PARTY TRANSACTIONS

All related party transactions are between the University of Kent at Canterbury and its wholly ownedsubsidiaries. As such the University has taken advantage of the specific exemption given under FinancialReporting Standard 8 and not disclosed these transactions.

33. MID KENT COLLEGE

On 1 August 2001 the University took over the provision of Higher Education of Mid Kent College and allHEFCE grants for this provision will in future be received by the University which will reimburse Mid KentCollege for its equivalent expenditure.

Documents

UNIVERSITY OF KENT AT CANTERBURY FINANCIAL ... STATEMENTS 2000/01 1 UNIVERSITY OF KENT AT CANTERBURY FINANCIAL STATEMENTS FOR THE YEAR TO 31 JULY 2001 C O N T E N T S PAGE Treasurer’s