10 Balance Sheets 12 Consolidated Cash Flow Statement 13 by odg66466

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									Imperial College of Science, Technology and Medicine
                         Financial Statements 1998-99
    Contents
1   Aims of Imperial College                                         10 Balance Sheets
2   Report of the Honorary Treasurer                                 12 Consolidated Cash Flow Statement
4   Corporate Governance                                             13 Statement of Consolidated Total Recognised
5   Responsibilities of the Council                                       Gains and Losses
6   Statement of Principal Accounting Policies                       14 Notes to the Accounts
8   Report of the Auditors                                           Inside back cover Council and Committees
9   Consolidated Income and Expenditure Account

The front cover shows views of Imperial College’s West London campuses: (from top to bottom) Chelsea and Westminster, Charing
Cross, St Mary’s, South Kensington, Royal Brompton, Hammersmith.
Aims of Imperial College

To be counted among the leading institutions of the world for research,
teaching and education in science, engineering and medicine.

To attract the most able students worldwide and to educate them in a way
that fosters technical excellence, originality and breadth of vision.

To provide an environment within which both original research of all kinds
and its application to useful purposes flourish.

To communicate to the widest possible community the significance and
intellectual excitement of scientific fields in general and the College’s
work in particular.




                                               Imperial College of Science, Technology and Medicine 1
                            Report of the Honorary Treasurer




In my first report as Honorary Treasurer I wish to pay            Total reserves at 31st July amount to £71.7 million and,
tribute to the work of my predecessor, John MacArthur,           as a percentage of turnover, show a modest
who held this office for seven years. He steered the             strengthening from 21.0% to 21.7%.
College through the medical mergers which doubled its
size and enhanced its status as one of the most                  Key features of the financial performance of the College
important academic institutions in Europe. The present           at the operating level in 1998/99 are as follows.
sound financial state of the College owes much to his
stewardship. I also wish to thank Mike Hansen who was            Grants from the Higher Education Funding Council for
Finance Director until 30th November 1999 and wish him           England (HEFCE) and student fee income should be
well in his new job as Director of Resources at King’s           considered together. Following the introduction of a
College, London. We are delighted to welcome Beryl               fixed £1,000 annual fee for full time home and European
Castle as his successor.                                         Union students (generally, significantly less than the fees
                                                                 previously charged) there has been a corresponding
Scope of the Financial Statements                                adjustment to the HEFCE grant. Combined income from
The financial statements comprise the consolidated                HEFCE and full time home and European Union student
results of the College, its subsidiaries and the Students’       fees has increased by £7.8 million to £109.9 million.
Union. The subsidiaries, which are listed in a note to the       Excluding earmarked grants of £1.1 million for
accounts, undertake activities which for legal or                restructuring and £2.1 million for laboratory
commercial reasons are more appropriately channelled             refurbishment, the increase is £4.6 million or 4.5%.
through limited companies. Such activities include the           Income from overseas student fees shows a similar
commercial exploitation of ideas and inventions,                 percentage increase, having increased by £0.8 million
consultancy and scientific services, and renting of               (4.4%) to £19.0 million. The College retains its
College space. Taxable profits from the subsidiaries are          attractiveness to very talented overseas students and this
covenanted or gift-aided to the College.                         willingness to pay the full cost of education at the
                                                                 College (which is higher than at many universities) is a
The financial statements have been prepared according to          continuing endorsement of the quality that we offer. In
the Statement of Recommended Practice: Accounting in             recognition of the financial problems in South East Asia,
Higher Education Institutions (SORP) and other relevant          from where many of our students originate, the College
accounting standards, including FRS 12, Provisions,              provides grants to address particular student hardship.
Contingent Liabilities and Contingent Assets. The                The College is also participating in the British Council
implementation of FRS 12 represents the main change              scheme which directly addresses the financial difficulties
compared to last year with long term maintenance costs           of students from South East Asia.
now being charged directly to the income and
expenditure account as they are incurred (previously,            Research income has increased by £4.8 million (4.1%) to
funds were transferred to a provision and expenditure            £122.0 million. However, this increase reflects the
was charged against the provision as a means of                  increase in research direct costs rather than in the
spreading the expected cost of long term maintenance             contribution towards overhead costs. Income to cover
over a ten year period). Comparative figures for the year         overheads has fallen from £19.1 million to £18.6 million
ended 31st July 1998 have been restated to fulfil the             or, expressed as a percentage of direct costs, from 19.4%
requirements of FRS 12. A statement of the principal             to 18.0%. In spite of the College's exceptional reputation
accounting policies is provided on pages 6 and 7.                for the quality of its research, neither the structure of
                                                                 grants from Research Councils nor the contractual
Results for the Year                                             arrangements with Government Departments and some
The College’s consolidated income and expenditure for            industrial sponsors fully reflect the College's need to be
the year to 31st July 1999 are summarised as follows.            reimbursed for the true cost of this research which is a
                                                                 continuing cause for concern.
                                           Restated
                              1998/99       1997/98 Percentage
                              £million     £million     change   Other operating income has increased by £7.1 million
                                                                 (11.2%) to £71.0 million which largely reflects increases
Income                          329.8         309.7        6.5   in earmarked income matched by equivalent increases in
Expenditure                     323.2         296.9        8.9   expenditure.

Surplus for the year               6.6         12.8      -48.2   Income from short term investments decreased by £0.9
                                                                 million (35.2%) as a consequence of the high level of
Surplus as percentage              2.0           4.1             capital expenditure (discussed below).
of turnover
                                                                 Expenditure within academic departments (including
The decrease in the size of the surplus from £12.8 million       research and other services rendered) increased by £11.3
to £6.6 million is largely the result of increased               million (5.2%) to £229.7 million while expenditure
expenditure on long term maintenance in accordance               within support departments (including academic services
with the College’s refurbishment plan. Such expenditure          and premises) increased by £15.0 million (19.1%) to
increased by £9.6 million to £15.7 million, with £3.1            £93.4 million. The increase in support costs includes the
million of this increase being met by HEFCE and other            £9.6 million increase in long term maintenance
external grants and the remaining £6.5 million from              expenditure referred to above which should be
general College funds.                                           considered separately from general recurrent costs.
                                                                 Excluding this £9.6 million, support costs have increased
                                                                 by £5.4 million (6.9%).


2 Imperial College of Science, Technology and Medicine
Cash Flow and Capital Projects                               the Institute is expected to become a division of the School
The College spent £31.0 million in the year on capital       of Medicine.
projects. Capital grants received amounted to £7.2
million, reducing the net cash outflow in respect of          The Wellcome Trust and the Government have established
capital expenditure to £23.8 million. The bulk of this       a Joint Infrastructure Fund, making available some £300
expenditure was met by a reduction in the College’s cash     million each over three years to assist the renewal of the
and short-term investment balances, with cash balances       infrastructure supporting research in UK universities. This
reducing by £6.7 million and short-term investments by       initiative should provide a significant injection of new
£14.7 million - a combined reduction of 65%. Clearly,        resources into the university sector. However, many of the
such a rate of cash outflow cannot continue.                  successful projects from the first round of bids have been
                                                             concerned with new research activity (which would have
Major items of capital expenditure met from general          fulfilled the criteria of the research councils’ normal
College funds include an additional £6.0 million on the      funding programme) rather than with addressing the
Sir Alexander Fleming Building which was opened by Her       decline in the physical research environment which is the
Majesty The Queen on 21st October 1998, £6.0 million         stated aim of the Fund. With a very large estate on six
on College information systems and £1.7 million on the       major campuses in West London, one of the key financial
acquisition of a site of strategic importance to the         issues facing the College is the need to upgrade and adapt
College adjacent to the Hammersmith Campus. Projects         existing space to meet modern teaching and research
completed or near completion at the year end include a       requirements. Many existing buildings require a very large
new combined heat and power plant (total cost £8.7           investment programme if the quality of teaching and
million) and the boathouse redevelopment (total cost         research is to be maintained. The College has several
£2.4 million, a large proportion of which has been met       projects at an advanced stage of planning and intends to
from a number of generous donations). Construction           continue to make substantial bids to the Fund in the hope
work started during the year on a new multidisciplinary      that future funding rounds will be more in accordance
research building (total cost £16.7 million, again much of   with the Fund’s stated aims.
which is being met by the generosity of donors) and on
refurbishing the Beit Quadrangle to create additional        The College Council has approved capital expenditure of
student residences (total cost £11.9 million).               £7.6 million on a new obstetrics and gynaecology building
                                                             at the Hammersmith Campus (for which substantial
Subsidiary and Related Companies                             donations have been received) and £1.6 million on
The College has been awarded £3.0 million from the           refurbishment of the senior common room at the South
University Challenge Fund to be used to finance the           Kensington campus.
commercialisation of College research. This grant plus
additional funds made available by the College for the       Conclusion
same purpose are being managed by Imperial College           The College has continued to modestly improve its
Innovations Limited. Also supporting commercialisation       financial strength whilst at the same time reducing the
of College research is Imperial College Company Maker        considerable backlog of long term maintenance. Our
Limited, a mentoring company formed with financial            success depends on the reputation of all our staff for
support from the Department of Trade and Industry to         excellence in all that they do. The financial results reflect
promote and nurture new high technology companies            their achievements and, on behalf of the Council and
which ‘spin out’ from the College.                           Court, I would like to thank them all.

College Investments
College investments, excluding endowment funds, were         W L Banks
held in an externally managed portfolio and in cash          Honorary Treasurer
invested directly the College. At the year end these funds
were respectively £13.3 million (£16.6 million at previous
year end) and £3.4 million (£16.8 million). The two funds
generated £1.7 million income.

Endowments
The endowment assets of the College are managed by
two external fund managers. Capital appreciation (£3.3
million) and retained income (£0.4 million) on these
assets totalled £3.7 million while £1.3 million of
generated income has been passed to the income and
expenditure account. The value of the assets at the year
end was £53.1 million.

Future Developments
The College has agreed with Wye College to merge on 1st
August 2000 and a Parliamentary Bill effecting the merger
received Royal Assent in June 1999. Many synergies in
environmental, biological and biochemical disciplines are
expected to result and new opportunities for students will
be created. Merger with the Kennedy Institute of
Rheumatology is also planned for 1st August 2000 when



                                                                        Imperial College of Science, Technology and Medicine 3
                            Corporate Governance




During the twelve month period to 31st July 1999, which        the Council for maintaining and promoting the
is the subject of this Report, the College’s Charter of        efficiency and good order of the College. Under the
Incorporation, granted under Letters Patent in 1907, was       terms of the Financial Memorandum between the
superseded by a new Charter granted by Her Majesty The         College and the Higher Education Funding Council for
Queen and which came into effect on 1st October 1998.          England the Rector is the designated officer of the
                                                               College. The financial management of the College is
The College, as constituted by this Charter, consists of       prescribed in the Financial Regulations approved by the
the members of the Court and of the Council, the               governing body and conducted in accordance with the
Fellows of the College, the academic, and academic-            Financial Memorandum with the Higher Education
related staff, the students and other members of the           Funding Council for England.
College. It has the power to do any lawful thing in
furtherance of its objects and has the power to award          Although the Council meets at least three, and normally
diplomas and certificates; to acquire, own, maintain,           six, times a year much of its detailed business is handled
manage and dispose of real and other property; to              initially by a variety of Committees which report
solicit, receive and administer grants, fees, subscriptions,   annually to the Council. These Committees are formally
donations, endowments, legacies, gifts and loans of any        constituted as Committees of the Council with written
property whatsoever, whether real or personal; and to          terms of reference and specified membership, including
act as trustees for and in relation to endowments,             a significant proportion of lay members.
legacies and gifts; to invest any monies in accordance
with the relevant law and its own Statutes; to borrow          The Audit Committee meets three times a year and is
and raise money; to enter into engagements and to              chaired by a lay member of the Court. It reviews the
accept obligations and liabilities; and generally to do all    effectiveness of the College’s financial procedures and
other lawful acts whatsoever.                                  compliance with them; it receives and comments on the
                                                               annual accounts and the reports of external auditors;
The objects of the College are to provide the highest          and it monitors the scope and effectiveness of the
specialised instruction and the most advanced training,        Internal Audit Service. The Committee, which meets the
education, research and scholarship in science, technology     external auditors on a regular basis, reports directly to
and medicine, especially in their application to industry;     the Council and has the authority to call for any
and in pursuit of these objects to act in co-operation with    information from the College officers, from internal and
other bodies.
                                                               external auditors and from others which it considers
                                                               necessary to discharge its responsibilities effectively.
The Charter and Statutes require the College to have
three separate bodies, each with clearly defined
                                                               The Finance Strategy Committee is chaired by the
functions and responsibilities, to oversee and manage its
                                                               Honorary Treasurer, a lay Governor. Its remit is to advise
activities.
                                                               on financial strategy with particular reference to the
                                                               maintenance and enhancement of the College’s financial
The Council is ‘the governing and executive body of the
                                                               viability, and to assess the financial implications of
College’ and is responsible for the finance, property,
                                                               College developments.
investments and general business of the College, and for
setting the general strategic direction of the institution.
                                                               The Investments Committee is chaired by a lay Governor.
There are 32 members of the Council, the majority of
whom are lay members.                                          Its remit is to determine College policy on investments in
                                                               respect of both general and specific funds and to control
The Court is a large, mainly formal body consisting of         and monitor the performance of investment managers
some 160 members being appointed by appropriate                and advisors.
bodies representing educational, research, international,
regional, local and staff interests. The Court normally        The Council is also assisted in its work by the Athletics
meets once a year to receive the Annual Report and             Committee, the Estates Committee, the Fellowships
Accounts of the College. In addition, major changes to         Committee, the Health and Safety Audit Committee, the
the College’s constitution require the approval of the         House Committee, the Nominations Committee and the
Court before they can be submitted to the Privy Council.       Remuneration Committee.

The Senate is the academic authority of the College and        The College maintains a Register of Interests of members
draws its membership entirely from the academic staff          of the Council and of Senior Officers which may be
and the students of the College. Its role is to direct and     consulted by arrangement with the Clerk to the Court
regulate the teaching and research work of the College.        and Council.

The principal academic and administrative officer of the
College is the Rector who has a general responsibility to

4 Imperial College of Science, Technology and Medicine
                      Responsibilities of the Council




In accordance with the College’s Charter and Statutes,       •   secure the economical, efficient and effective
the Council is responsible for the administration and            management of the College’s resources and
management of the affairs of the College. It is required         expenditure.
to present audited financial statements for each
financial year. As such it is responsible for keeping         The key elements of the College’s system of internal
proper accounting records which disclose with                financial control, which is designed to discharge the
reasonable accuracy at any time the financial position of     responsibilities set out above, include the following:
the College and enable it to ensure that the financial
statements are prepared in accordance with the Charter       •   clear definitions of the authority delegated to heads
of Incorporation, the Statement of Recommended                   of academic and administrative departments
Practice on Accounting in Higher Education Institutions          embodied in Memoranda of Understanding with the
(SORP) and other relevant accounting standards. In               Rector;
addition, within the terms and conditions of a Financial
Memorandum agreed between the Higher Education               •   approval by Council each year of a College budget
Funding Council for England and the Governing Body of            and a five year rolling College plan which, whilst
the College in March 1996 and amended in July 1997,              driven from the academic standpoint, are based on
the Council, through its designated office holder, is            detailed financial projections of all College budget
required to prepare financial statements for each                 centres;
financial year which give a true and fair view of the state
of affairs of the College and of the surplus or deficit and   •   a comprehensive monthly review of the financial
cash flows for that year.                                         performance of all budget centres and update of
                                                                 forecast outturns with a report to the Rector and
In causing the financial statements to be prepared, the           senior College staff and to Governors at each Council
Council has ensured that:                                        meeting;

•   suitable accounting policies are selected and applied    •   clearly defined and formalised requirements for
    consistently;                                                approval and control of expenditure, with
                                                                 investment decisions involving capital or revenue
•   judgements and estimates are made that are                   expenditure being subject to formal detailed
    reasonable and prudent;                                      appraisal and review according to approval levels set
                                                                 by the Council;
•   the SORP and applicable accounting standards have
    been followed, subject to any material departures        •   comprehensive Financial Regulations, detailing
    being disclosed and explained in the financial                financial controls and procedures, approved by the
    statements;                                                  Audit Committee and the Council;

•   the College has adequate resources to continue in        •   an internal audit team, reporting to the Clerk to the
    operation for the foreseeable future and for this            Court and Council, whose four year rolling
    reason the financial statements are prepared on a             programme of work is approved by, and conclusions
    going concern basis.                                         subsequently reviewed by, the Audit Committee.

The Council has taken reasonable steps to:                   The Audit Committee, on behalf of the Council, regularly
                                                             reviews the effectiveness of the internal financial
•   ensure that funds from the Higher Education              controls in the College and its subsidiaries. Any system of
    Funding Council for England are used only for the        internal financial control can, however, only provide
    purposes for which they have been given and in           reasonable, but not absolute, assurance against material
    accordance with the Financial Memorandum with the        misstatement or loss.
    Funding 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
    funds and funds from other sources;

•   safeguard the assets of the College and prevent and
    detect fraud;



                                                                       Imperial College of Science, Technology and Medicine 5
                            Statement of Principal Accounting Policies




1 Accounting Convention                                       4 Pension Schemes
The financial statements have been prepared under the          Pension costs are assessed on the latest actuarial
historical cost convention, as modified by the revaluation     valuations of the pension schemes and are accounted for
of endowment asset investments, and in accordance             on the basis of charging the cost of providing pensions
with both the Statement of Recommended Practice:              over the period during which the institution benefits
Accounting in Higher Education Institutions (SORP) and        from the employees’ services. Variations from regular
applicable accounting standards.                              cost are spread over the expected average remaining
                                                              working lifetime of members of the scheme after
In line with FRS 12, Provisions, Contingent Liabilities and   making allowance for future withdrawals.
Contingent Assets, with effect from 1st August 1998 the
College now charges long term maintenance costs to the        5 Foreign Currencies
income and expenditure account as they are incurred.          Transactions denominated in Euros and other foreign
Previously the College transferred funds to a provision       currencies are recorded at the rate of exchange ruling at
and charged expenditure against the provision in order        the dates of the transactions. Monetary assets and
to spread the expected cost of long term maintenance          liabilities denominated in foreign currencies are
evenly over a ten year period.                                translated into sterling at year-end rates. The resulting
                                                              exchange differences are recognised as part of income
2 Basis of Consolidation                                      and expenditure.
The consolidated financial statements consolidate the
financial statements of the College including the              6 Finance Leases
Students’ Union and all subsidiary undertakings for the       Assets held under finance leases together with the
financial year to 31st July.                                   related lease obligations are recorded on the balance
                                                              sheet with initial values equivalent to the purchase price
The consolidated income and expenditure account               of the asset. The excess of lease payments over recorded
includes the College’s share of the income, expenditure       lease obligations are treated as finance charges which
and tax of associated undertakings, while the                 are amortised over each lease term to give a constant
consolidated balance sheet includes investment in             rate of charge on the remaining balance of the
associated undertakings at the College’s share of their       obligations.
net tangible assets. Associated undertakings are those in
which the College has a significant, but not dominant,         7 Land and Buildings
influence over their commercial and financial policy            Purchased land and purchased or constructed buildings
decisions.                                                    are stated at cost. Freehold land is not depreciated while
                                                              leasehold land is depreciated over the life of the lease.
For those associated companies that have different            Buildings are depreciated over their expected useful lives
accounting year-end dates, interim accounts to 31st July      at the rate of 2% per annum of their historical cost (no
for these companies have been consolidated.                   purchased buildings are held on leases of less than 50
                                                              years). Buildings which are still under construction are
3 Recognition of Income and Expenditure                       not depreciated. Where land and buildings are acquired
Income from specific endowments, donations, research           with the aid of specific grants, the grants are treated as
grants and contracts, and other services rendered is          deferred capital grants and released to income at the
included to the extent of the associated expenditure          same rate as depreciation is charged.
incurred during the year together with any related
contributions towards overhead costs. Income from
general endowments is credited to the income and
expenditure account on a receivable basis. Expenditure
incurred relates to the receipt of goods and services. This
includes patent costs which are written off in the year
that they are incurred rather than being capitalised.




6 Imperial College of Science, Technology and Medicine
Buildings acquired on integration of previously               10 Investments
independent medical schools have been brought into            Listed investments held as fixed assets or endowment
the balance sheet at fair value (market value where           assets are included in the balance sheet at market value.
ascertainable, otherwise depreciated replacement cost)        Current asset investments are included at the lower of
and depreciated over their remaining expected useful          cost and net realisable value. Investments in associated
lives. An amount equivalent to the fair value of assets so    companies where the input from the College is
acquired is credited to deferred capital grants and           represented only by the intellectual property rights are
released in the same manner as other such grants.             valued at zero historical cost.

Costs incurred in relation to buildings after their initial   11 Stocks
acquisition are capitalised only to the extent that they      Only the value of stocks held in the refectories and
increase the expected future benefits beyond those             central stores are included on the balance sheet. They
originally assessed. The cost of such enhancements are        are valued at the lower of cost and net realisable value.
depreciated at the rate of 2% per annum.
                                                              12 Cash Flows and Liquid Resources
Some accommodation within associated hospitals is             Cash flows comprise increases and decreases in cash.
occupied rent free by the College but this is                 Cash includes cash in hand, deposits repayable on
approximately offset by College accommodation                 demand and overdrafts. Deposits are repayable on
occupied rent free by them.                                   demand if they can be withdrawn at any time without
                                                              notice and without penalty or if a maturity or period of
8 Equipment                                                   notice of not more than 24 hours has been agreed. No
Equipment, including computers and software, costing          investments, however liquid, are included as cash.
less than £50,000 per individual item or group of related
items is written off in the year of acquisition. All other    Liquid resources comprise assets held as readily
equipment is capitalised.                                     disposable stores of value. They include term deposits,
                                                              government securities and loan stock held as part of the
Capitalised equipment is stated at cost and, once in          College’s treasury management activities. They exclude
service, depreciated over five years except for equipment      any such assets held as Endowment Asset Investments.
held under a finance lease which is depreciated over the
lease term, and equipment acquired for a specific              13 Taxation Status
research project which is depreciated over the remaining      The College is an exempt charity within the meaning of
life of the project (generally three years).                  Schedule 2 of the Charities Act 1993 and as such is a
                                                              charity within the meaning of Section 506(1) of the
Where equipment is acquired with the aid of specific           Taxes Act 1988. Accordingly, the College is potentially
grants it is capitalised and depreciated as above. The        exempt from taxation in respect of income or capital
related grant is treated as a deferred capital grant and      gains received within categories covered by Section 505
released to income at the same rate as depreciation is        of the Taxes Act 1988 or Section 256 of the Taxation of
charged. Similarly, donated equipment is brought into         Chargeable Gain Act 1992 to the extent that such
the balance sheet at the equivalent purchase price and        income or gains are applied to exclusively charitable
an equal amount is credited to deferred capital grants.       purposes. The College receives no similar exemption in
Depreciation of donated assets and the release of             respect of Value Added Tax.
associated grants are treated in the same manner as for
other assets.

9 Capital Reserves
Capital reserves are established to finance future
depreciation of tangible assets that have not been
funded from specific grants. These reserves are released
to the general reserve at the same rate as depreciation is
charged.




                                                                        Imperial College of Science, Technology and Medicine 7
                            Report of the Auditors




Report of the Auditors to the Council and Court of          circumstances, consistently applied and adequately
Imperial College of Science, Technology and Medicine        disclosed.

We have audited the financial statements on pages 6 to       We planned and performed our audit so as to obtain all
7 and 9 to 31 which have been prepared under the            the information and explanations which we considered
historical cost convention, as modified by the revaluation   necessary in order to provide us with sufficient evidence
of certain investments, and in accordance with the          to give reasonable assurance that the financial
accounting policies set out on pages 6 and 7.               statements are free from material misstatement,
                                                            whether caused by fraud or other irregularity or error.
Respective Responsibilities of the Council and Auditors     In forming our opinion we also evaluated the overall
The Council is responsible for ensuring that financial       adequacy of the presentation of information in the
statements and the Honorary Treasurer’s Report are          financial statements.
prepared. Our responsibilities, as independent auditors,
are established by statute, the Auditing Practices Board,   Opinion
the Higher Education Funding Council for England and        In our opinion:
our profession’s ethical guidance.
                                                            (a) the financial statements give a true and fair view of
We report to you our opinion as to whether the financial         the state of the affairs of the College and its
statements give a true and fair view and are properly           subsidiaries at 31st July 1999, and of the group’s
prepared in accordance with the Statement of                    surplus of income over expenditure and cash flows
Recommended Practice on Accounting in Higher                    for the year then ended and have been properly
Education Institutions. We also report to you whether, in       prepared in accordance with the Statement of
all material respects, income from funding bodies, grants       Recommended Practice on Accounting in Higher
and income for specific purposes and from other                  Education Institutions.
restricted funds administered by the institution, have
been properly applied only for the purposes for which       (b) in all material respects, income from the Higher
they were received, and whether income has been                 Education Funding Council for England, grants and
applied in accordance with the institution’s statutes and       income for specific purposes and from other
where appropriate with the financial memorandum with             restricted funds administered by the College have
the Higher Education Funding Council for England.               been applied for the purposes for which they were
                                                                received;
We also report to you if, in our opinion, the Honorary
Treasurer’s Report is not consistent with the financial      (c) income has been applied in accordance with the
statements, if the institution has not kept proper              College’s Statutes and where appropriate with the
accounting records, if the accounting records do not            Financial Memorandum dated July 1997 with the
agree with the financial statements, or if we have not           Higher Education Funding Council for England.
received all the information and explanations we require
for our audit.

We read the other information contained in the
Honorary Treasurer’s Report and consider the
implications for our report if we become aware of any
apparent misstatements or material inconsistencies with
the financial statements.
                                                            PricewaterhouseCoopers
Basis of Opinion                                            Chartered Accountants
We conducted our audit in accordance with Auditing          and Registered Auditors
Standards issued by the Auditing Practices Board and the
Audit Code of Practices issued by the Higher Education      Hamilton House
Funding Council for England. An audit includes              3 Appold Street
examination, on a test basis, of evidence relevant to the   London EC2A 2PW
amounts and disclosures in the financial statements. It
also includes an assessment of the significant estimates     17th December 1999
and judgements made by the Council in the preparation
of the financial statements, and of whether the
accounting policies are appropriate to the institution’s



8 Imperial College of Science, Technology and Medicine
                       Consolidated Income and Expenditure Account
                       For the year ended 31st July 1999




                                                                                                                       Restated
                                                                                                        1999)             1998)
                                                                                      Note              £000)             £000)


Income
   Funding Council Grants                                                                 1         99,100)            88,563)
   Academic Fees and Support Grants                                                       2         34,435)            35,620)
   Research Grants and Contracts                                                          3        122,011)           117,163)
   Other Operating Income                                                                 4         71,022)            63,892)
   Endowment Income and Interest Receivable                                               5          3,239)             4,491)

   Total Income                                                                                    329,807)           309,729)

Expenditure
   Staff Costs                                                                           6         186,417)           179,096)
   Depreciation                                                                         11          12,528)            12,869)
   Other Operating Expenses                                                              7         124,168)           104,844)
   Interest Payable                                                                      8              51)                79)

   Total Expenditure                                                                      9         323,164)          296,888)

Historical Cost Surplus before Tax and Minority Interest                                              6,643)           12,841)
   Taxation                                                                             10              (14)               (1)
   Minority Interest                                                                                      -)                -)

Historical Cost Surplus after Tax and Minority Interest                                               6,629)            12,840)




No operations were discontinued during the year.

The College has no revalued assets and there is, therefore, no difference between the results as reported and the
historical cost results.

As a result of the introduction of FRS 12, Provisions, Contingent Liabilities and Contingent Assets, the results for the
year ended 31st July 1998 have been restated (details of the effects are given in note 23).




                                                                         Imperial College of Science, Technology and Medicine 9
                            Balance Sheets
                            as at 31st July 1999




                                                                      Consolidated                     College

                                                                                     Restated                     Restated
                                                                     1999                1998       1999             1998
                                                          Note       £000                £000       £000             £000


Fixed Assets
   Tangible Assets                                         11    248,536)        230,465)       247,842)         229,943)
   Investments                                             12        997)            283)           978)             436)

                                                                 249,533)        230,748)       248,820)         230,379)

Endowment Asset Investments                                13     53,138)            50,070)     53,138)          50,070)

Current Assets
   Stocks                                                            278)               290)        187)             205)
   Debtors                                                 14     75,498)            78,591)     85,931)          89,321)
   Investments                                                    12,668)            27,404)     12,663)          27,402)
   Cash at Bank and in Hand                                        4,006)             5,986)      1,960)           5,336)

                                                                  92,450)        112,271)       100,741)         122,264)
Creditors: Amounts Falling
Due Within One Year                                        15    (89,059)            (89,705)   (89,113)         (90,092)

Net Current Assets                                                  3,391)            22,566)    11,628)          32,172)

Total Assets Less Current Liabilities                            306,062)            303,384)   313,586)         312,621)


Creditors: Amounts Falling
Due After More Than One Year                               16        (557)              (809)     (9,559)         (11,395)
Provisions for Liabilities and Charges                     17      (3,397)            (4,062)     (3,397)          (4,062)


Total Assets Less Liabilities                                    302,108)            298,513)   300,630)         297,164)

Deferred Capital Grants                                    18    (177,304)       (183,406)      (177,280)        (183,379)

Total Net Assets                                                 124,804)            115,107)   123,350)         113,785)




10 Imperial College of Science, Technology and Medicine
                                                                       Consolidated                        College

                                                                                      Restated                        Restated
                                                                       1999              1998            1999             1998
                                                       Note            £000              £000            £000             £000

Represented by:
Endowments
   Specific                                              19          50,676             47,643         50,676           47,643
   General                                              19           2,462              2,427          2,462            2,427

                                                                    53,138             50,070         53,138           50,070
Reserves
   Income and Expenditure Account                    20,21          71,666             65,037         70,212           63,715

Total Funds                                                        124,804            115,107       123,350           113,785




The financial statements on pages 6 and 7 and 9 to 32 were approved by the Council
on 17th December 1999, and signed on their behalf by:




The Lord Oxburgh, Rector




W L Banks, Honorary Treasurer




B N H Castle, Director of Finance




                                                                        Imperial College of Science, Technology and Medicine 11
                            Consolidated Cash Flow Statement
                            For the year ended 31st July 1999




                                                                                       Restated
                                                                                1999       1998
                                                                     Note       £000       £000


Net Cash Inflow from Operating Activities                              25        (34)   10,579)

Returns on Investments and Servicing of Finance
   Income Received from Endowments                                           1,672)     1,792)
   Income Received from Short Term Investments                               1,735)     2,718)
   Other Interest Received                                                     158)       132)
   Interest Paid                                                               (51)       (96)

                                                                             3,514)     4,546)

Tax Paid                                                              10          -)        (1)

Capital Expenditure and Financial Investment
   Payments to Acquire Tangible Assets other than Leased Equipment          (30,951)   (41,706)
   Purchase of Fixed Asset Investments                                         (552)       (64)
   Payments to Acquire Endowment Asset Investments                             (480)    (1,380)

   Total Payments to Acquire Fixed and Endowment Asset Investments          (31,983)   (43,150)

   Receipts from Sales of Tangible Assets                                       12)         -)
   Receipts from Sales of Endowment Assets                                       -)         -)
   Deferred Capital Grants Received                                          7,249)    24,553)
   Endowments Received                                                13        68)       971)

                                                                            (24,654)   (17,626)

Acquisitions and Disposals
   Cash Received on Merger                                                        -)     9,559)

Management of Liquid Resources                                               14,736)    (6,489)

Financing
   Capital Element of Finance Lease Repayments                                 (225)      (210)
   Net Mortgages and Loans Acquired/(Repaid)                          26          -)         -)

                                                                               (225)      (210)



Increase/(Decrease) in Cash                                           28     (6,663)      358)




12 Imperial College of Science, Technology and Medicine
                    Statement of Consolidated Total Recognised Gains and Losses
                    For the year ended 31st July 1999




                                                                                                  1999             1998
                                                                                Note              £000             £000


Surplus after Tax and Minority Interest                                                         6,629)          12,840)
Appreciation of Endowment Asset Investments                                       19            3,338)           6,540)
Endowment Income Retained for the Year                                            19              412)             334)
New Endowments/(Reclassification of funds)                                         19             (682)             971)
New Endowments on Merger                                                          19                -)          21,079)
Reserves on Merger                                                                21                -)           6,240)
Purchase of Minority Interest in Subsidiaries                                                       -)             (77)

Total Recognised Gains Relating to the Year                                                     9,697)          47,927)

Prior Year Adjustment (as explained in Note 23)                                                 4,102)

Total Recognised Gains Recognised since the Last Annual Report                                13,799)




                                                                 Imperial College of Science, Technology and Medicine 13
                            Notes to the Accounts



                                                                                                          1999      1998
1   Funding Council Grants                                                                                £000      £000


    Recurrent - Teaching                                                                               38,165)   31,854)
    Recurrent - Research                                                                               51,028)   39,751)
    Non-Consolidated Core Funds                                                                             -)      453)
    LIG Restructuring                                                                                   1,061)        -)
    London Costs (included in Recurrent grant in 1999)                                                      -)    8,299)
    London Whole Institutions                                                                           1,434)    2,227)
    Continuing Education                                                                                  293)      285)
    Joint Research Equipment Initiative (JREI)                                                          1,220)    1,990)
    Laboratory Refurbishment Initiative                                                                 2,133)        -)
    Other Specific Grants                                                                                  283)      278)

Grants from Higher Education Funding Council For England (HEFCE)                                       95,617)   85,137)

    Joint Information Systems Committee (JISC)                                                             42)     253)

Transferred to Deferred Capital Grants in the Year (Note 18)
   Buildings                                                                                                1)        -)
   Equipment                                                                                           (1,089)   (1,869)
Deferred Capital Grants Released in the Year (Note 18)
   Buildings                                                                                            2,988)    2,987)
   Equipment                                                                                            1,541)    2,055)

                                                                                                       99,100)   88,563)


There have been no capital grants from HEFCE in respect of major capital projects in the year (£25,954k in 1998) added
directly to deferred capital grants (Note 18) for release throughout the expected lives of the assets.



                                                                          Registered Student Numbers
                                                                                                          1999      1998
2   Academic Fees and Support Grants                                        31.12.98       31.12.97       £000      £000

Full-Time Home and European Union Students                                    7,179          6,948     10,801)   13,515)
Full-Time Overseas Students                                                   1,870          1,876     18,989)   18,196)
Part-Time Students                                                              794            894      1,324)    1,283)
Research Training Support Grants and CASE Awards                                                          739)      752)
Short Course Fees                                                                                       2,582)    1,874)

                                                                                                       34,435)   35,620)




14 Imperial College of Science, Technology and Medicine
                                                                                                         1999           1998
3   Research Grants and Contracts                                                                        £000           £000

UK Research Councils                                                                                  35,413         36,286
UK Government Departments, Local and Health Authorities                                                9,183          9,915
UK Industry, Commerce and Public Corporations                                                         15,792         16,714
UK Charities                                                                                          32,149         33,403
UK Other                                                                                               3,600          1,994
European Union Commission                                                                              9,919          9,238
Other European Union and Overseas                                                                     15,955          9,613

                                                                                                     122,011        117,163


Total research income excludes £1,737k (£3,202k in 1998) deferred capital grants but includes £2.353k (£2,318k in 1998)
released from deferred capital grants on equipment (Note 18).

                                                                                                          1999          1998
4   Other Operating Income                                                                                £000          £000

Health and Hospital Authorities                                                                        18,019        16,028
Consultancies and Scientific Services                                                                   14,394        13,312
Donations                                                                                               5,337         4,132
Residences, Catering and Conferences                                                                   12,486        12,016
Athletics Facilities                                                                                      751           666
Royalties on Intellectual Property                                                                        850           135
Rents Receivable                                                                                        1,564         1,349
Commissions and Fees                                                                                      611           614
Other Departmental Income                                                                               7,897         7,233
Students’ Union Shop                                                                                      673           638
Released from Deferred Capital Grants on Land and Buildings (Note 18)                                   3,177         3,176
Released from Deferred Capital Grants on Equipment (Note 18)                                              330           862
Other Income                                                                                            4,933         3,731

                                                                                                       71,022        63,892


                                                                                                          1999          1998
5   Endowment Income and Interest Receivable                                                              £000          £000

Transferred from Specific Endowment Investments (Note 19)                                                 1,256         1,605
Transferred from General Endowment Investments (Note 19)                                                    90            75
Income from Short Term Investments                                                                       1,735         2,679
Other Interest Receivable                                                                                  158           132

                                                                                                         3,239         4,491




                                                                      Imperial College of Science, Technology and Medicine 15
                            Notes to the Accounts


                                                                                                       1999          1998
6   Staff                                                                                              £000          £000

Staff Costs:
    Wages and Salaries                                                                              159,544   153,487
    Social Security Costs                                                                            13,165    12,561
    Other Pension Costs (Note 30) *                                                                  13,708    13,048

                                                                                                    186,417    179,096

Emoluments of the Rector:
  Remuneration                                                                                          99            95
  Social Security Costs                                                                                 10             9
  Pension Contributions                                                                                 12            12
  Other                                                                                                  8             7

                                                                                                       129           123

Compensation for loss of office paid to members of staff earning in excess of £50,000 per annum
(one in 1999, four in 1998):
   Payments in respect of loss of office                                                                69           338

                                                                                                        69           338

                                                                            Full Time Equivalent        Headcount

                                                                               1999          1998      1999          1998
                                                                            Number        Number     Number     Number

Average Staff Numbers by Major Category:
   Academic and Academic Related                                              3,200        3,127      3,612         3,478
   Clerical                                                                     966          870      1,021           926
   Other, including Technical and Manual                                      1,393        1,500      1,769         1,969

                                                                              5,559         5,497     6,402         6,373

The Full Time Equivalent (FTE) number is based on the headcount but adjusted to include only the pro rata element
of part-time staff.
                                                                                                       1999          1998
Remuneration of Higher Paid Staff (excluding the Rector)                                             Number     Number

£50,000-£59,999                                                                                          96          219
£60,000-£69,999                                                                                         197           73
£70,000-£79,999                                                                                          30           12
£80,000-£89,999                                                                                           7            1
£90,000-£99,999                                                                                           -            -
£100,000 -£109,999                                                                                        1            -
£110,000 - £149,999                                                                                       -            -
£150,000 - £159,000                                                                                       1            -
Remuneration of Higher Paid Staff for College duties plus payments made on behalf of third parties
£50,000-£59,999                                                                                         110          135
£60,000-£69,999                                                                                         102           85
£70,000-£79,999                                                                                          46           31
£80,000-£89,999                                                                                          31           32
£90,000-£99,999                                                                                          11           17
£100,000-£109,999                                                                                        28           10
£110,000-£119,999                                                                                        15            8
£120,000-£129,999                                                                                        12            3
£130,000-£139,999                                                                                         4            1
£140,000-£149,999                                                                                         2            -
£150,000-£159,999                                                                                         1            -

Remuneration of Higher Paid Staff excludes employer’s pension contributions. Payments made on behalf of third
parties include NHS Distinction Awards and payments to staff for consultancy services made through subsidiaries.

* Other Pension Costs were reduced by release from Provisions of £665k in 1999 and £544k in 1998.


16 Imperial College of Science, Technology and Medicine
                                                                                                       Restated
                                                                                             1999          1998
7   Other Operating Expenses                                                                 £000          £000

Research Grants and Contracts                                                             45,877        40,642
Consultancies and Scientific Services                                                       4,714         3,339
Short Courses                                                                              1,636         1,352
General Expenditure in Academic Departments                                               14,089        14,857
Residences, Catering and Conferences                                                       6,648         6,222
Central Support Services                                                                   5,437         5,652
Equipment Items below £50,000 from General Funds                                           7,624         6,439
Fellowships, Scholarships and Prizes                                                       1,574         1,381
Books, Periodicals and Other Library Expenditure                                           3,259         2,890
Heat, Light, Water and Power                                                               6,001         4,548
General Maintenance and Cleaning of Premises                                               5,142         4,808
Long-Term Maintenance in accordance with Capital Plan:
    Main College Estate                                                                   12,586         3,972
    Residence, Catering and Conferences                                                    3,159         2,134
Rents and Rates                                                                              883         1,316
Insurances                                                                                   933           910
Payments to University of London                                                             914           943
Students’ Union                                                                              913           841
Auditors’ Remuneration                                                                        73            63
Other                                                                                      2,706         2,535

                                                                                         124,168       104,844




                                                                                             1999          1998
8   Interest Payable                                                                         £000          £000

Finance Leases                                                                                 51            79

                                                                                               51            79




                                                         Imperial College of Science, Technology and Medicine 17
                            Notes to the Accounts

                                                                                       Other                          Restated
                                                             Staff                  Operating   Interest      1999       1998
                                                             Costs   Depreciation    Expenses   Payable       Total      Total
9   Analysis of Expenditure by Activity                      £000          £000         £000       £000       £000       £000

Academic Departments (Note 36)                             91,534        2,355       21,171            -   115,060    109,975

Academic Services:
   Libraries                                                2,726            10        3,378           -     6,114      5,603
   Computer Centre                                          2,479            72        1,048           -     3,599      3,435
   Other                                                    2,998            59        1,716           -     4,773      4,255

Total Academic Services                                     8,203           141        6,142           -    14,486     13,293

Research Grants and Contracts (Note 37)                    55,172        2,353       45,877            -   103,402     98,105

Residences, Catering and Conferences                        3,744           671        9,807           -    14,222     12,683

Premises                                                    9,050        6,799       25,243         51      41,143     31,109

Administration and Central Services:
  Central Administration                                    9,068            11        3,540           -    12,619     11,206
  General Educational Expenditure                             323             -        2,393           -     2,716      2,863
  Staff and Student Facilities                              2,213           160        2,055           -     4,428      3,803

Total Administration and Central Services                  11,604           171        7,988           -    19,763     17,872

Other Expenditure:
   Consultancies and Scientific Services                     6,501            38        4,718           -    11,257     10,372
   Other                                                      609             -        3,222           -     3,831      3,479

Total Other Expenditure                                     7,110            38        7,940           -    15,088     13,851

                                                          186,417       12,528      124,168         51     323,164    296,888


The depreciation charge has been funded by:


Deferred Capital Grants Released (Note 18)                              10,389
Capital Reserves (Note 22)                                               1,339
General Income                                                             800

                                                                        12,528



                                                                                                              1999       1998
10 Taxation
                                                                                                              £000       £000

UK Corporation Tax payable on the profits of subsidiary and associated companies                                 14          1




18 Imperial College of Science, Technology and Medicine
11 Tangible Assets                                                              Consolidated

                                                       Land and Buildings

                                                                          Assets under                   Finance
                                                Freehold   Leasehold      Construction   Equipment         Lease          Total
                                                   £000         £000            £000             £000       £000          £000
Cost
   At 1st August 1998                            71,087     190,540           1,891)          32,385)     1,083)     297,706)
   Additions                                      1,995       7,571           9,473)          11,579)         -)      30,618)
   Transfers                                          -           -               -)               -)         -)           -)
   Disposals                                          -           -               -)            (136)       (14)        (150)

At 31st July 1999                               73,082      198,111         11,364)           43,828)     1,789)     328,174)

Depreciation
   At 1st August 1998                           15,394       29,451                 -)        21,441)       955)      67,241)
   Charge for Year                               1,234        6,014                 -)         5,063)       217)      12,528)
  Eliminated on Disposals                            -            -                 -)          (117)       (14)        (131)

At 31st July 1999                               16,628       35,465                 -)        26,387)     1,158)      79,638)

Net Book Value
At 31st July 1999                               56,454      162,646         11,364)           17,441)       631)     248,536)

At 1st August 1998                              55,693      161,089           1,891)      10,944)           848)     230,465)




                                                                                    College

                                                       Land and Buildings

                                                                          Assets under                   Finance
                                                Freehold    Leasehold     Construction   Equipment         Lease          Total
                                                   £000          £000            £000            £000       £000          £000
Cost
   At 1st August 1998                            71,087     190,425            1,891          30,927)     1,683       296,013
   Additions                                      1,995       7,571            9,473          11,139)         -        30,178
   Transfers                                          -           -                -               -)         -             -
   Disposals                                          -           -                -               -)         -             -

At 31st July 1999                                73,082     197,996          11,364           42,066)     1,683       326,191

Depreciation
   At 1st August 1998                            15,394       29,436                 -        20,398)       842        66,070
   Charge for Year                                1,234        6,010                 -         4,825)       210        12,279
   Eliminated on Disposals                            -            -                 -             -)         -             -

At 31st July 1999                                16,628       35,446                 -        25,223)     1,052        78,349

Net Book Value
At 31st July 1999                                56,454     162,550           11,364          16,843)       631       247,842

At 1st August 1998                               55,693     160,989            1,891          10,529)       841       229,943




In 1999/2000 the College expects to acquire from the Department of the Environment, Transport and the Regions at
nominal cost a freehold interest in properties that are included above as leasehold at a cost of £78,360k and
depreciation of £7,274k.




                                                                        Imperial College of Science, Technology and Medicine 19
                            Notes to the Accounts




12 Investments                                                                                Consolidated                        College

                                                                                              1999             1998           1999           1998
                                                                                              £000             £000           £000           £000


Investment in Subsidiary Companies at Cost                                                       -               -            160             160
Investment in Associated Undertakings                                                          271             107            107             100
Other Fixed Asset Investments                                                                  726             176            711             176

                                                                                               997             283            978             436


As at 31st July 1999, the College’s equity holdings in subsidiary and associated companies were as follows:
                                                        Investment by     Country of
                                             Interest      the College    Registration   Activity


Imperial College Innovations Ltd              100%         £155,180        England       Commercialisation of ideas and inventions
Imperial College Company Maker Ltd            100%               £1        England       Creation and mentoring of biotechnology
                                                                                          companies
IC Consultants Ltd                            100%               £2        England       Consultancy and scientific services
Imperial Activities Ltd                       100%             £100        England       Management services
Imperial College (S) Pte Ltd                  100%           £4,447       Singapore      Supply of MBA courses in Singapore
Extracalm Co Ltd                              100%               £2        England       Telecommunication equipment and services
RPMS Technology Ltd                           100%         £100,000        England       Contract research
Universal Safety Consultants Ltd              100%               £2        England       Safety services
Westway Graphics Ltd                          100%               £2        England       Photographic, design and print services
Imperial College Press Ltd                     49%          £80,001        England       Publication and sale of scientific literature
Sterix Ltd                                  39.94%                -        England       Development of biopharmaceuticals
Process Systems Enterprise Ltd                 35%               £1        England       Software production, support and training
Natural Resources International Ltd            25%          £20,001        England       Environmental consultancy and scientific
                                                                                          services
Integration Diagnostics Ltd                  22.6%                    -    England       Manufacture of medical diagnostic
                                                                                          equipment
Impel Ltd                                     100%                 £2      England       Dormant
Research Exploitation Ltd                     100%                 £1      England       Dormant




13 Endowment Asset Investments                                                   Consolidated and College

                                                                                                    Net     Transfers
                                            Balance                                          Income         Between     Appreciation/        Balance
                                              1.8.98      Donations Reclassification*       to Capital     Investments    Revaluation        31.7.99
                                               £000            £000             £000           £000             £000           £000           £000

UK Fixed Interest Stocks                     9,623                -              -)              -)            469)            188          10,280
UK Equities                                 28,406                -              -)              -)           (901)          2,207          29,712
International Equities                       2,880                -              -)              -)          3,551)            943           7,374
Cash with Fund Managers/Loans                2,291                -           (750)              -)           (802)              -             739
Short Term Investments                       6,870                -              -)              -)         (1,837)              -           5,033
Bank Balances at Imperial College                -               68              -)            412            (480)              -               -

Total                                       50,070               68            (750)           412                 -)        3,338          53,138

Fixed Interest and Equities at Cost         34,993                                                                                          41,018


* Some funds previously classified as endowments have now been correctly classified as ‘normal’ donations (i.e.
without the need to maintain capital).




20 Imperial College of Science, Technology and Medicine
14 Debtors: Amounts falling due within one year                              Consolidated                   College


                                                                              1999           1998        1999            1998
                                                                              £000           £000        £000            £000


Amounts due on Research Grants and Contracts
   Debtors                                                                25,768        28,383        25,768           28,383
   Work in Progress                                                       16,828        16,664        16,828           16,664
Other Debtors                                                             18,030        15,122        15,020           12,556
Prepayments and Accrued Income                                            14,872        18,422        23,716           28,843
Amounts Owed by Group Undertakings                                             -             -         4,599            2,875

hj                                                                         75,498       78,591        85,931           89,321

Included in Amounts due on Research Grants and Contracts is £5.9 million in respect of European Commission
contracts for which £6.1 million advances have been received.

15 Creditors: Amounts Falling Due Within One Year                             Consolidated                   College

                                                                              1999           1998         1999           1998
                                                                              £000           £000         £000           £000

Bank Balance (relates to uncleared cheques)                                 8,329         3,646         8,329           3,646
Obligations under Finance Leases (Note 24)                                    252           225           241             223
Research Payments Received on Account                                      39,392        45,348        39,392          45,348
Creditors                                                                   3,263         6,246         1,285           4,867
Social Security and Other Taxation Payable                                  5,156         5,126         5,013           5,003
Accruals and Deferred Income                                               32,667        29,114        30,022          28,405
Amounts Owed to Group Undertakings                                              -             -         4,831           2,600

                                                                           89,059        89,705        89,113          90,092


16 Creditors: Amounts Falling Due After More Than One Year                   Consolidated                   College


                                                                              1999           1998         1999           1998
                                                                              £000           £000         £000           £000

Intra-group loans repayable after more than five years                            -              -       9,013          10,608

Obligations under Finance Leases (Note 24)                                    557             809         546             787

                                                                              557             809       9,559          11,395

                                                                                             SAUL     Internal
                                                                                        Pension       Pension
                                                                                             Fund        Fund            Total
17 Provisions for Liabilities and Charges                                                    £000        £000            £000


Consolidated and College

At 1st August 1998 Restated (See note 23)                                                3,822)          240)          4,062)
Transferred from Income and Expenditure Account                                              -)           14)             14)
Utilised in Year                                                                          (665)          (14)           (679)

At 31st July 1998                                                                        3,157)          240)          3,397)

The SAUL (Superannuation Arrangement of the University of London) provision relates to the contribution liability
which arose during a contribution holiday to the scheme. It is being amortised over the average working lifetime of
the SAUL membership.

The Internal Pension Fund relates to a donation made to the College to provide pernsions for staff who are not
members of the main schemes.




                                                                     Imperial College of Science, Technology and Medicine 21
                            Notes to the Accounts




18 Deferred Capital Grants                                                 Consolidated                          College

                                                                                          Other
                                                            HEFCE &     Research      Grants &
                                                          JISC Grants     Grants   Benefactions        Total           Total
                                                                £000       £000           £000         £000             £000

At 1st August 1998
   Buildings                                               93,529)           -)      79,995)      173,524)      173,524)
   Equipment                                                4,169)       4,863)         850)        9,882)        9,855)

    Total                                                  97,698)       4,863)      80,845)      183,406)      183,379)



Cash Receivable
   Buildings - Specific Funding                                  (1)          -)       1,310)         1,309)           1,309)
   Buildings - JREI (Note 1)                                 1,089)          -)           -)         1,089)           1,089)
   Equipment - Specific Funding                                   -)      1,737)         152)         1,889)           1,873)

    Total                                                    1,088)      1,737)       1,462)         4,287)           4,271)

Released to Income and Expenditure
   Buildings (Notes 1 and 4)                                (2,988)          -)      (3,177)        (6,165)       (6,165)
   Equipment (Notes 1, 3 and 4)                             (1,541)     (2,353)        (330)        (4,224)       (4,205)

    Total (Note 9)                                          (4,529)     (2,353)      (3,507)       (10,389)     (10,370)

At 31st July 1999
   Buildings                                               90,540)           -)      78,128)      168,668)      168,668)
   Equipment                                                3,717)       4,247)         672)        8,636)        8,612)

    Total                                                  94,257)       4,247)      78,800)      177,304)      177,280)




19 Endowments                                                                              Consolidated and College

                                                                                      Specific       General            Total
                                                                                          £000         £000             £000


At 1st August 1998                                                                  47,643)         2,427)       50,070)
Additions (Reclassification of Funds)                                                  (682)             -)         (682)
Appreciation of Endowment Asset Investments                                          3,303)            35)        3,338)
Income for Year                                                                      1,668)            90)        1,758)
Transferred to Income and Expenditure Account (Note 5)                              (1,256)           (90)       (1,346)

At 31st July 1999                                                                   50,676)         2,462)       53,138)

Representing:

Fellowships and Scholarships Funds                                                   5,707)             -)        5,707)
Prizes Funds                                                                         1,331)             -)        1,331)
Chairs and Lectureships Funds                                                       30,889)             -)       30,889)
Other Funds                                                                         12,749)         2,462)       15,211)

                                                                                    50,676)         2,462)       53,138)




22 Imperial College of Science, Technology and Medicine
                                                                                                  Consolidated     College
20 Income and Expenditure Account                                                                       £000         £000

Historical Cost Surplus after Tax                                                                     6,629        6,497
Balance at 1st August 1998                                                                           61,799       60,477
Prior Year Adjustment (Note 23)                                                                       3,238        3,238

Balance at 31st July 1999                                                                            71,666       70,212



                                                                        Opening     Surplus for   Movement         Closing
                                                                        Balance      the Year        in Year      Balance
21 Statement of Movements on Reserves                                      £000          £000           £000         £000

Specific Reserves
   Academic Departments                                                 13,965                      (1,222)       12,743
   Academic Services                                                     1,045                         670)        1,715
   Administration and Central Services                                     105                         870)          975
   Equipment                                                             3,543                      (3,543)            -
   Governors’ Lectureships                                                 457                         (24)          433
   Long Term Development                                                   100                           -)          100
   Harlington Student Fund                                               3,562                        (158)        3,404
   Long Term Maintenance (Note 23)                                       1,818                       2,017)        3,835
   Long Term Maintenance - Residences (Note 23)                          2,284                      (1,321)          963
   Students’ Union Funds                                                 1,180                         100)        1,280
   Subsidiary and Associate Companies’ Reserves                            143                          32)          175
   Capital Reserves to Match Future Depreciation (Note 22)
       Buildings                                                        26,668                       8,114)       34,782
       Equipment                                                           674                       7,557)        8,231

                                                                        55,544                      13,092)       68,636
General Reserve                                                          9,493          6,629      (13,092)        3,030

Total Reserves                                                          65,037          6,629               -)    71,666




                                                                                                    Buildings    Equipment
22 Capital Reserves                                                                                      £000         £000


The capital reserves are established to finance future depreciation of tangible assets that
have been funded from the General Reserve. Thus, these reserves reflect expenditure already
incurred rather than funds available for additional expenditure. The movements in the year
are made up as follows.

Expenditure in Year                                                                                   8,833)       8,177)
Released to match depreciation                                                                         (719)        (620)

                                                                                                      8,114)       7,557)




                                                                   Imperial College of Science, Technology and Medicine 23
                            Notes to the Accounts                                                    Operating
                                                                                                      result for
                                                                                                       the year    Net assets
                                                                                                     ended 31st         at 31st
                                                                                                      July 1998    July 1998
23 Prior Year Adjustment                                                                                  £000            £000


As a result of the introduction of FRS 12, Provisions, Contingent Liabilities and Contingent
Assets, the results for the year ended 31st July 1998 have been restated as follows.

As previously reported                                                                                 11,976      111,005
Effect of the change in accounting policy to show expenditure on planned maintenance
on an actual basis rather than via provisions                                                              864          4,102

As restated                                                                                            12,840      115,107




24 Lease Obligations                                                           Consolidated                  College

                                                                               1999           1998        1999            1998
                                                                               £000           £000        £000            £000

Obligations under Finance Leases fall due as follows:
   Between two and five years                                                   557             809         546            787

   Total over one year (Note 16)                                               557             809         546            787
   Within one year (Note 15)                                                   252             225         241            223

                                                                               809        1,034            787          1,010




25 Reconciliation of Consolidated Operating Surplus to Net Cash Inflow                                      1999           1998
   from Operating Activities                                                                               £000           £000

Surplus Before Tax                                                                                      6,643)      12,841)
Depreciation                                                                                           12,528)      12,869)
Deferred Capital Grants Released to Income                                                            (10,389)     (11,398)
Investment Income                                                                                      (3,239)      (4,491)
Profit on Disposal of Fixed Assets                                                                          (9)           -)
Share of Profits/(Losses) of Associated Companies                                                         (170)         (47)
Interest Payable                                                                                           51)          79)
(Increase)/Decrease in Stocks                                                                              12)         (38)
(Increase)/Decrease in Debtors                                                                           (661)     (18,367)
Increase/(Decrease) in Creditors                                                                       (4,135)      19,713)
Increase/(Decrease) in Provisions                                                                        (665)        (582)

Net Cash Inflow from Operating Activities                                                                   (34)        10,579)




24 Imperial College of Science, Technology and Medicine
26 Analysis of Changes in Consolidated Financing During the Year               1999                          1998

                                                                         Finance      Mortgages       Finance       Mortgages
                                                                          Leases        & Loans        Leases         & Loans
                                                                           £000            £000          £000           £000

Balance at Start of the Year                                             1,034)               -)      1,224)               -)

New Leases/Loans                                                             -)               -)          20)              -)
Capital Repayments                                                        (225)               -)        (210)              -)

Net Amount Acquired in Year                                               (225)               -)        (190)              -)

Balance at 31st July                                                       809)               -)      1,034)               -)




27 Reconcilation of Net Cash Flow to Movement in Net Funds                                              1999            1998
                                                                                                        £000            £000

Increase/(Decrease) in Cash in the Year                                                              (6,663)           358)
Increase/(Decrease) in Short Term Investments                                                       (16,573)        14,624)
New Finance Leases                                                                                        -)           (20)
Repayment of Debt and Lease Financing                                                                   225)           210)

   Change in Net Funds                                                                              (23,011)        15,172)


Net Funds at 1st August                                                                             35,580)         20,408)

Net Funds at 31st July                                                                              12,569)         35,580)


                                                                          At 1st           Cash         Other         At 31st
                                                                         August            Flow      Changes             July
28 Analysis of Changes in Net Funds                                        £000            £000          £000           £000




Cash at Bank and in Hand                                                 5,986)        (1,980)              )         4,006)
Bank Balance (relates to uncleared cheques)                             (3,646)        (4,683)              )        (8,329)

                                                                               )       (6,663)              )
Short Term Investments
   Endowment Assets                                                      6,870)        (1,837)                        5,033)
   Others                                                               27,404)       (14,736)            -)         12,668)
Debt Due Within One Year                                                  (225)           225)         (252)           (252)
Debt Due After One Year                                                   (809)             -)          252)           (557)
                                                                       35,580)        (23,011)              -)       12,569)



                                                                                                   Expenditure   Outstanding
                                                                                      Total cost      to date    Commitment
29 Capital Commitments                                                                 £ million   88£ million   77£ million

The College Governors have approved the following capital projects for which
major construction is expected to begin in 1999/2000:

Multidisciplinary Research Building                                                       16.7            2.4           14.3
Obstetrics and Gynaecology Building                                                        7.6              -            7.6
Beit Quadrangle                                                                           11.9            1.6           10.3




                                                                   Imperial College of Science, Technology and Medicine 25
                            Notes to the Accounts




30 Pension Schemes

The College participates in four separate, independently managed, defined benefit, occupational pension schemes;
each is valued by professionally qualified actuaries, triennially except the NHS Scheme which is quinquennially.

Staff paid on academic and academic-related scales, who are otherwise eligible, can acquire pension rights through
the Universities Superannuation Scheme (USS), which is a national scheme administered centrally for UK universities.

Other, non-academic staff, who are otherwise eligible, can acquire pension rights through the Superannuation
Arrangements of the University of London (SAUL) which is a centrally administered scheme primarily for the
University of London.

The Federated Pension Scheme 1634 (FPS) is the scheme St Mary’s Hospital Medical School operated for non-
academic staff prior to 1st August 1988, when it was closed to new entrants. Two thirds of the membership elected
to transfer into SAUL.

Staff who have pension rights in the NHS Pension Scheme, on taking up a post within the College, may remain in
membership of that scheme which is the nationally administered scheme for the National Health Service.

The main features of the most recent valuations of the three principal schemes are as follows:
                                                                                               USS         SAUL     FPS 1634
                                                                                            31.3.96      31.3.96      31.3.96
Latest actuarial valuations
Assumptions
   Investment returns per annum                                                              8.5%        9.0%)        8.5%)
   Salary scale increases per annum                                                          6.5%        6.5%)        7.0%)
   Pension increases per annum                                                               5.0%        5.0%)        5.0%)

Results
   Market value of assets at date of last valuation                                     £12,087M        £551M)         £7M)
   Regular contribution rate                                                               14.0%        14.8%)       30.0%)
   Variation from regular cost                                                                 -)        (6.2%)     (30.0%)
Proportion of members’ accrued benefits covered by the actuarial
value of the assets                                                                         108%         120%)       120%)

The valuations of USS and SAUL used the projected unit method, and FPS used the
aggregate method.
The last valuation of the NHS Scheme was as at 31st March 1994 carried out by the Government Actuaries.
The pension costs for the College and its subsidiaries were:                                               1999         1998
                                                                                                           £000         £000

Contributions to USS                                                                                    10,532        9,822
Contributions to SAUL                                                                                    2,912        2,852
Contributions to FPS 1634                                                                                    -            -
Contributions to NHS                                                                                       929          918

                                                                                                        14,373       13,592


31 Contingent Liability

The College is a member of UMALT, a company limited by guarantee, formed to provide a mutual association for
terrorism risks. Under the terms of its membership, each member acts as insurer and insured. If the association as a
whole suffers a shortfall in any underwriting year, the members are liable for their pro rata share, payments being
spread through the use of a bank facility over seven years. The College is a guarantor, on a joint and several basis
with other members, of UMALT’s £60 million bank facility. No liability has yet arisen under this guarantee.

In reviewing its assets, the College has identified a liability to remove a specialist engineering facility. The cost to the
College is uncertain as to its amount and timing. This is not considered material in the context of the College
resources and therefore no provision has been made in these accounts.

The College is involved in a number of legal cases. No material financial liabilities are anticipated.

26 Imperial College of Science, Technology and Medicine
32 Related Party Transactions

For some years the College has maintained a Register of Interests of all Governors and Academic and Academic
Related staff. Policies incorporated within the College’s Financial Regulations require an individual to declare an
interest and withdraw from any commercial discussions should a conflict of interest potentially arise. Written
assurances have been obtained from all Governors and senior officers of the College that for the twelve months to
31st July 1999 they have not knowingly influenced any transaction between the College in respect of themselves and
their close family and a related party, as defined by FRS 8.

Commercial relationships with companies or other organisations that might be regarded as related parties have been
reviewed. During the year, the College purchased goods and services amounting to £1.9 million and received research
grants and contracts amounting to £13.5 million from such parties. The latter figure includes £10.6 million from the
Wellcome Trust whose Governors include Professor C R W Edwards, Principal of the School of Medicine. The
Wellcome Trust has detailed guidelines and controls which require that Governors withdraw from any discussion or
decision making on the award of grants where there may be a conflict of interest. In common with many universities,
other senior members of the College sit on Research Councils and other grant awarding bodies which have their own
internal procedures to avoid potential conflicts of interest.

The College has close relationships with a number of West London NHS Trusts with whom the College shares a number
of sites and facilities. College staff work closely with those Trusts particularly in the clinical service areas.

33 Post Balance Sheet Events

The College expects to complete the restructuring of its investment in Turbo Genset Company during December
1999, with its shareholding in Turbo Genset Company Limited being exchanged for 3,131,764 shares in Turbo Genset
Inc. This company is registered in Canada and is quoted on the Alberta Stock Exchange. Under its accounting policies,
at the balance sheet date the College’s investment in the company is shown at cost (nil) whereas quoted companies
are reported at market value.

34 Year 2000

The College has reviewed its potential exposure to computer and associated equipment failure as a result of the
Year 2000. This included the College central systems, Departmental systems, PCs and equipment with embedded
computer controllers. The key expenditure was the replacement of the accounting system, which had been installed
in 1991. This was introduced on 1st August 1999. In addition, there is a business continuity plan which covers staffing
and safety issues based on a risk assessment and which includes an assurance from key suppliers.

                                                                                                          1999          1998
35 Access Funds                                                                                           £000          £000

Balance at Start of the Year                                                                                -)           17)
Funding Council Grants                                                                                    367)          367)
Interest Earned                                                                                             3)            9)

                                                                                                          370)           393
Disbursements                                                                                            (370)         (393)

Balance Unspent at 31st July                                                                                 -)            -)

No audit fees were charged against the Access Funds.




                                                                      Imperial College of Science, Technology and Medicine 27
                           Notes to the Accounts




36 Academic Departments General Expenditure (£000)

                                                                     Staff Costs

                                                                      Academic                   Other
                                                          Academic      Related     Other   Expenditure      Total)


Biomedical Sciences                                         1,723           73        544        422)       2,762)
Investigative Science                                       6,089          222      1,217        531)       8,059)
Medicine                                                    6,606          203      1,038        692)       8,539)
National Heart and Lung Institute                           6,775          394      1,826      1,149)      10,144)
Neurosciences and Psychological Medicine                    3,622          130        998        862)       5,612)
Paediatrics, Obstetrics and Gynaecology                     4,117           86        774        718)       5,695)
Primary Care and Population Health Sciences                 1,703          637        344        858)       3,542)
Surgery, Anaesthetics and Intensive Care                    3,636          197        696      1,149)       5,678)
School of Medicine Central Division                           174          779      1,366      2,398)       4,717)

                                                           34,445        2,721      8,803      8,779)      54,748)

Biochemistry                                                1,638          360        495      1,083)       3,576)
Biology                                                     1,714          206        803        989)       3,712)
Biomedical Services Unit                                        -          251      1,004       (603)         652)
Chemistry                                                   1,821          192        673      1,519)       4,205)
Physics                                                     3,349          364      1,569        768)       6,050)
Mathematics                                                 2,176           96        237        292)       2,801)

Aeronautics                                                   888          210        364        269)       1,731)
Chemical Engineering and Chemical Technology                1,461          200        743        929)       3,333)
Civil and Environmental Engineering                         2,235          193        832        925)       4,185)
Computing                                                   1,931          699        350      1,237)       4,217)
Electrical and Electronic Engineering                       1,888          467        800        861)       4,016)
Materials                                                     924          284        474        456)       2,138)
Mechanical Engineering                                      2,215          372      1,250      1,192)       5,029)

Biological and Medical Systems                                398          123        109        535)       1,165)
T H Huxley School                                           3,636          557      1,086      1,411)       6,690)
Management School                                           2,099          181        341        975)       3,596)

Composite Materials                                           126           66        58          56)        306)
Planning and Application Research Centre                       98          113        22         329)        562)
IRC Process Systems Engineering                                39           74        43         394)        550)
IRC Semiconductors                                             13            -        41         572)        626)
Structural Biology                                              -            4         -          121        125)

History of Science, Technology and Medicine                   156            11        4         (13)        158)
Science Communication                                         128             -       19          28)        175)
The Environment Office                                          -            35       13          13)         61)
Continuing Education                                           86            61       97         409)        653)


TOTAL                                                      63,464        7,840     20,230     23,526)     115,060)




28 Imperial College of Science, Technology and Medicine
37 Research Grants and Contracts Expenditure (£000)

                                                           Staff Costs

                                                                                                    Other
                                                      Academic           Other)    Bursaries   Expenditure         Total


Biomedical Sciences                                     1,760              220)         271       2,060)         4,311
Investigative Science                                   3,972              967)         295       5,119)        10,353
Medicine                                                5,638            1,736)         202       6,088)        13,664
National Heart and Lung Institute                       5,386            1,808)         336       9,537)        17,067
Neurosciences and Psychological Medicine                2,374              737)         102       2,150)         5,363
Paediatrics, Obstetrics and Gynaecology                 2,150            1,277)          86       1,564)         5,077
Primary Care and Population Health Sciences             1,445              653)          36         959)         3,093
Surgery, Anaesthetics and Intensive Care                  923              351)         130         969)         2,373
School of Medicine Central Division                         -                -)           -          60)            60

                                                       23,648            7,749)       1,458      28,506)        61,361

Biochemistry                                            2,270             148)          110       1,245)         3,773
Biology                                                 2,165             522)          187       1,647)         4,521
Chemistry                                               1,497             130)          518       2,294)         4,439
Physics                                                 3,680             388)          213       2,635)         6,916
Mathematics                                               550               -)           57         191)           798

Aeronautics                                               452              36)           67          222)          777
Chemical Engineering and Chemical Technology              760              35)          260          453)        1,508
Civil and Environmental Engineering                       930             129)          142          670)        1,871
Computing                                                 897              25)           89          392)        1,403
Electrical and Electronic Engineering                   1,059             112)          139          563)        1,873
Materials                                                 826               6)          185          504)        1,521
Mechanical Engineering                                  2,121             274)          595        2,154)        5,144

Biological and Medical Systems                            259              (4)           38         (275)           18
T H Huxley School                                       1,503             101)          218        1,364)        3,186
Management School                                         147              29)          356          484)        1,016

Composite Materials                                        43               6)            8           22)           79
Planning and Application Research Centre                  381              49)           10          135)          575
IRC Process Systems Engineering                         1,287             219)           24          146)        1,676
IRC Semiconductors                                        557             139)            -          193)          889

History of Science, Technology and Medicine                36                1)            -           4)            41
Science Communication                                      10                -)            -           7)            17



TOTAL                                                  45,078        10,094)          4,674      43,556)       103,402




                                                                 Imperial College of Science, Technology and Medicine 29
                            Notes to the Accounts



38 Equipment Expenditure (£000)
(excluding expenditure on furniture and maintenance contracts)

                                                                                  Research     Other)
                                                                                  Funding    Funding)        Total


Biomedical Sciences                                                                   575        495)       1,070
Investigative Science                                                                 648        360)       1,008
Medicine                                                                              675        223)         898
National Heart and Lung Institute                                                   1,052        341)       1,393
Neurosciences and Psychological Medicine                                              245         90)         335
Paediatrics, Obstetrics and Gynaecology                                               183         63)         246
Primary Care and Population Health Sciences                                           100         64)         164
Surgery, Anaesthetics and Intensive Care                                               61         86)         147
School of Medicine Central Division                                                    60      1,141)       1,201

                                                                                    3,599      2,863)       6,462

Biochemistry                                                                          388      1511)          539
Biology                                                                               271       275)          546
Biomedical Services Unit                                                                -        52)           52
Chemistry                                                                           1,068       455)        1,523
Physics                                                                             1,456       261)        1,717
Mathematics                                                                            88        82)          170

Aeronautics                                                                            30        62)           92
Chemical Engineering and Chemical Technology                                           88       247)          335
Civil and Environmental Engineering                                                   128       394)          522
Computing                                                                             361       357)          718
Electrical and Electronic Engineering                                                 138       174)          312
Materials                                                                             144        86)          230
Mechanical Engineering                                                                805       475)        1,280

Biological and Medical Systems                                                          1       160)         161
T H Huxley School                                                                     233       402)         635
Management School                                                                       1       185)         186

Composite Materials                                                                    13        (3)          10
Planning and Application Research Centre                                               63        12)          75
IRC Process Systems Engineering                                                         1       169)         170
IRC Semiconductors                                                                     33        44)          77
Structural Biology                                                                      -       118)         118

History of Science, Technology and Medicine                                             2          3)           5
Science Communication                                                                   -          6)           6
Continuing Education                                                                    -          7)           7

Academic Services
   Libraries                                                                             -      319)         319
   Computer Centre                                                                       -      169)         169
   Other                                                                                 -      114)         114

Administration and Central Services                                                      -     6,759)       6,759
Premises                                                                                 -       787)         787

TOTAL                                                                               8,911    15,185)       24,096

Of the above, £1,737k of research funded equipment and £8,391k of other equipment have been capitalised.


30 Imperial College of Science, Technology and Medicine
                                                                 Additions
39 Funding of Fixed Assets (£000)
                                                              During the Year

                                                                              Other
                                             Balance          HEFCE          Grants/      College     Balance
Land and Buildings at Cost                    1.8.98          Grants    Donations       Reserves       31.7.99

Land                                         14,328                -               -      1,732       16,060

Buildings
Freehold
    South Kensington Campus                  16,586                -             18         245       16,849
    Charing Cross Campus                      7,482                -              -           -        7,482
    Hammersmith Campus                          688                -              -           -          688
    St Mary’s Campus                          9,585                -              -           -        9,585
    Royal Brompton Campus                     3,600                -              -           -        3,600
    Silwood Park and Outstations              7,022                -              -           -        7,022
    Clayponds                                11,796                -              -           -       11,796

                                             56,759                -             18         245       57,022
Leasehold
   South Kensington Campus                  105,446                -               -      7,571      113,017
   Charing Cross Campus                      33,567                -               -          -       33,567
   Hammersmith Campus                        35,180                -               -          -       35,180
   St Mary’s Campus                           7,227                -               -          -        7,227
   Royal Brompton Campus                        250                -               -          -          250
   Evelyn Gardens                             8,870                -               -          -        8,870

                                            190,540                -             -        7,571      198,111
Buildings under Construction                  1,891                -         1,292        8,181       11,364

Total Land and Buildings                    263,518                -         1,310       17,729      282,557


                                                                                       Additions
                                                                          Balance         During      Balance
Represented by:                                                               1.8.98    the Year       31.7.99




Grants from HEFCE                                                        127,049            (1)      127,048
Other Grants/Donations                                                    86,953         1,310)       88,263
Capital Expenditure met from Reserves                                     49,516        17,730)       67,246

                                                                         263,518        19,039)      282,557


                                                                        Additions       Disposals
                                                             Balance   During the      During the     Balance
Equipment at Cost                                             1.8.98           Year         Year       31.7.99




Funded from HEFCE Grants                                    11,674           1,089            -)      12,763
Funded from Research Grants and Contracts                   14,592           1,737            -)      16,329
Funded from Other Grants/Donations                           2,092             152            -)       2,244
Funded from Reserves                                         2,211           8,601         (136)      10,676
Donated Assets                                               1,816               -             -       1,816
Assets Held under Finance Lease                              1,803               -          (14)       1,789

Total Equipment                                             34,188        11,579           (150)      45,617




                                                       Imperial College of Science, Technology and Medicine 31
40 Students’ Union Summary Financial Statements
                                                                                                   1999)       1998)
Income and Expenditure Account for the year ended 31st July 1999                                   £000)       £000)


Income
Subvention from College                                                                            736)        713)
Catering Operations                                                                                738)        717)
Shop                                                                                               673)        638)
Other Operating Income                                                                             115)        191)
Investment Income and Interest Receivable                                                           73)         77)

                                                                                                 2,335)      2,336)

Expenditure
Staff Costs                                                                                        737)        718)
Depreciation                                                                                       160)         89)
Cost of Sales and Other Non-Staff Costs:
    Catering Operations                                                                            391)        388)
    Shop                                                                                           471)        448)
    Other                                                                                          476)        432)

                                                                                                 2,235)      2,075)

Surplus for the Year                                                                               100)        261)

                                                                                                   1999)       1998)
Balance Sheet as at 31st July 1999                                                                 £000)       £000)


Fixed Assets                                                                                       451)        243)

Current Assets
   Stock                                                                                            92)         79)
   Debtors                                                                                          62)         86)
   Investments                                                                                   1,021)      1,013)
   Cash at Bank and in Hand                                                                        245)         79)

                                                                                                 1,420)      1,257)
Creditors: Amounts Falling Due Within One Year                                                    (567)       (293)

Net Current Assets                                                                                 853)        964)

Total Assets less Current Liabilities                                                            1,304)      1,207)
Creditors: Amounts Falling Due After More Than One Year                                              -)          -)
Total Assets less Liabilities                                                                    1,304)      1,207)
Deferred Capital Grants                                                                            (24)        (27)

Total Net Assets                                                                                 1,280)      1,180)

Represented by:
Accumulated Funds                                                                                1,280)      1,180)

                                                                                                 1,280)      1,180)




Natasha Newton, President

Statement from the Auditors of the Students’ Union
We have audited the summary financial statements, which are set out above, of Imperial College Union. In our
opinion these summary financial statements are consistent with the full financial statements and executive report of
Imperial College Union for the year ended 31st July 1999.

HLB Kidsons
Chartered Accountants and Registered Auditors
32 Imperial College of Science, Technology and Medicine
                     Council and Committees Concerned Directly with Finance




The Council                                   Audit Committee

Chairman:                                     Chairman:
The Lord Vincent of Coleshill                 Mr D P Hearn

Court Nominees:                               Membership:
Mr G Able                                     Mr D R L Duncan
Mr R D Buchanan-Dunlop                        Dr C D S Moss
Mr H M Neal                                   Two vacancies

University of London Nominee:                 Secretary:
Vacancy                                       Mr J B Hancock

Co-opted External Members:                    Finance Strategy Committee
Mr W L Banks
                                              Chairman and Honorary Treasurer:
Dr E Buttle
                                              Mr W L Banks
Mr A R F Buxton
Dr I J Graham-Bryce                           Membership:
Dr M P Knight                                 Dr N A D Carey
Mr S A Lipton                                 Dr M P Knight
Mr R J Margetts                               Mr R J Margetts
The Hon Mrs Sara Morrison                     The Hon Mrs Sara Morrison
Sir Alan Munro                                One teaching staff Governor
Dr B G Smith                                  The Rector
Dr C L Vaughan                                Pro Rector (Resources)
Vacancy                                       Director of Finance
                                              Secretary:
Ex-Officio:                                   Dr E Rashit
Rector: The Lord Oxburgh
Deputy Rector: Professor W A Wakeham          Investments Committee
Senior Staff Representatives:                 Chairman:
Professor P W Bearman                         Dr M P Knight
Professor T J H Clark
                                              Membership:
Professor C R W Edwards
                                              Mr L E Linaker
Professor M G Haines
                                              Mr W A Manson
Professor J A Kilner
                                              The Rector
Professor D A Lane
                                              Secretary:
                                              Ms N D Taylor
Elected Staff:
Professor J N B Bell
Professor Julia S Higgins                     Remuneration Committee
Professor S P F Hughes                        Chairman:
Dr D P Isherwood                              The Lord Vincent of Coleshill
Professor B L Morgan
Professor P Poole-Wilson                      Membership:
                                              The Hon Mrs Sara Morrison
President, Imperial College Union:            Mr W L Banks
Ms N Newton                                   Vacancy
Clerk to the Court and Council:               Secretary:
Mr K A Mitcheson                              Dr M E Kimberley

								
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