Notes to the Financial Statements
Note 29: Capital Management
The University's capital is its equity, which comprise retained earnings and reserves. Equity is represented by net assets.
The Education Act 1989 requires the University to manage its revenues, expenses, assets, liabilities, investments and general financial transactions prudently to ensure the responsible use of, and accountability for public resources.
The University’s planning process includes the development of the University Strategy, Academic Plan, Investment Plan and budgets. These plans set out the University’s activities for the next one to three years. The University’s operational budget is set annually and ensures that the planned activities are appropriately funded and that expenditure requirements of the planned activities have been identified. The University’s budget is set at a level to ensure that the University’s operating activities are funded from operating cash flows and also that the University’s operating activities generate sufficient cash flows to fund the capital expenditure requirements of the University.
The University has in place asset management plans for major classes of assets including maintenance and renewal programmes. A budget for capital expenditure is set annually and is funded from cash generated from the University’s operating activities.
The University has created a reserve within equity, for Prizes, Scholarships and Trust Funds. This reserve represents funds held by the University on behalf of others and funds provided to the University by various people. This reserve is for specific purposes.