CC(M)P.3 2013/2014 - University of the West Indies1).pdf · Fire Inoe Fire Inoe ive Yer nysis...

CC(M)P.32013/2014

3

4 - 10

11 - 12

13

14

15

16

17 - 18

19 - 52

Campus Bursar’s Report

Selected Financial and Statistical Highlights

Auditors’ Report

Statement of Financial Position

Statement of Comprehensive Income

Detailed Statement of Comprehensive Income

Statement of Changes in Equity

Statement of Cash Flows

Notes to the Financial StatementsIdentification and Principal ActivitiesBasis of PresentationSignificant Accounting PoliciesCash and Cash EquivalentsShort-term InvestmentsRelated PartiesAccounts ReceivableInventoriesAccounts Payable and AccrualsShort-term LoansLong-term ReceivablesInvestments in SubsidiariesProperty, Plant & EquipmentUnexpended donations for special projectsEndowmentsLong-term LiabilitiesCapital GrantsEmployee benefits obligationsMiscellaneous IncomeCentral ExpendituresFinance costsStaff costsTaxationFinancial Risk ManagementFair Value of Financial InstrumentsCapital Commitments

The University of the West Indies, Mona Campus

Contents

OVERVIEW

The Mona Campus could not escape the effects of the difficult economic climate that persisted throughout the 2012-13 financial year. Despite the circumstances the Campus remained focused on advancing the 2012-17 strategic goals with priority being place on initiatives to strengthen finances towards a sustainable future.

Financing the operations at Mona became increasingly burdensome as the cumulative effect of the reduced funding from the Government of Jamaica for successive years continued to mount. However, the consistent and timely receipt of the funds from the Government of Jamaica throughout the year is greatly appreciated. Slow rate of payment of subventions by many of the other contributing governments continued as in the previous year, reflecting the fiscal limitations of their challenged economies.

Student enrolment was a source of encouragement as growth was experienced in all but one faculty and this combined with tuition fees increases translated into growth in billed tuition revenues for government-sponsored and self-financing academic programmes. The financial difficulties faced by an increased number of students led to many being unable to meet fee payments within the registration deadline and having to seek extended payment arrangements. In response to this, the Campus accommodated students by allowing tuition fees to be paid during the course of each semester in accordance with specific approved instalment plans.

The Student’s Loan Bureau on which more of our students, in recent years, have come to depend on as the source of tuition funding faced its own funding challenge. As a consequence disbursements of approved loans to educational institutions were delayed and this added to the cash flow uncertainties faced by the Campus. Delays were also experienced in the collection fees from other third parties responsible for payment of fees on behalf of students.

Faced with the uncertainty of cash inflow, the patience and understanding of suppliers was essential though not always available as many of them tried to grapple with their own financial difficulties. Initiatives to contain costs and implement sustainable cost reductions remained integral components of the financial management strategy.

The Campus’ actions to manage the multiple challenges did not avert the need to access short term bank credit to support the financing of operations, a need the Campus had avoided for almost twenty years.

FINANCIAL PERFORMANCE

The Campus operations generated a surplus of $629.3m, before depreciation and provision for post- employment pension and health. Comparatively, this is a 17% reduction from the surplus of $756.7m in 2011-12. As in the previous year the surplus resulted primarily from net revenues generated from activities introduced by the Campus to diversify income streams and reduce reliance on government financing which for 2012-13 accounted for only 42% of Campus revenues (prior year: 41%).

After making provision for depreciation and post- retirement benefits a deficit of $1,109.9m was recorded for the year indicating the magnitude of two important future costs which the University has to have the capacity to fund.

The yearend financial position reflected in the balance sheet highlights the combined effect of the various factors that directly and indirectly impacted the operations of the Campus during the year.

The balance sheet at July 31, 2013 clearly indicates the difficulty experienced in managing working capital. The increased level of receivables from both governments and students relative to the previous financial year is not surprising as collections from both sources were negatively impacted by the economic realities. A direct consequence of this is the similar level of increase in the amount due to suppliers at the end of the financial year.


Campus Bursar’s Report | for the Year Ended July 31, 2013

2

Acco

unts

201

3

The Campus’ efforts to advance the strategic agenda placed emphasis on completing and bringing into operation key capital projects that were initiated in previous financial years. These efforts realised the completion of the Medical Sciences Teaching and Research (MST&R) Complex, the Business Process Outsourcing (BPO) Call Centre facility and the two new on-campus residential facilities to accommodate an additional 1000 students. The Campus air conditioning service park which now provides air conditioning for both the MST&R Complex and the BPO Call Centre, was also completed.

These projects were completed through a mix of internally generated resources, further draw downs on long term borrowings and a short term loan which at year end was in the process of being converted to a long term loan. The additional investment in these projects accounts for the majority of the total $2,023m invested in fixed assets during the year.

Though the financial prospects are not very encouraging and the funding challenges continue, the management of the Mona Campus remains resolute in its efforts towards securing a sustainable financial future for the institution. The recent investments made in projects to contribute to revenue growth have already demonstrated the potential to deliver the expected returns. The financial performance of each project will be closely monitored and the financial outcomes of these will be built upon by other income generating initiatives that are being planned and executed.

Elaine RobinsonCampus Bursar


Campus Bursar’s Report | for the Year Ended July 31, 2013

3

Acco

unts

201

3

SOURCE OF INCOME

The primary source of income of the University of the West Indies, Mona Campus has been contributions from theGovernments of the West Indies. The other sources (including the primary source) of income and the proportionalrepresentation are as follows:

The total campus income from all sources for the year ending July 2013 was $13,241 million. Information on the income categories, for the current year and the last four years is presented in pictorial form by figures 2 and 3. Figure 1 shows sources of income by categories for the last four financial years.

Figure 1.

SOURCES 12/13 11/12 10/11 09/10 08/09

West Indian Government Contributions

Tuition Fees

Donor Income

Other Projects

TOTAL INCOME

1.

(i)

(ii)

(iii)

(iv)

Contributions from the Governments of the West Indies (42%).

Tuition fees (18%).

Donor funds which are funded by governments, International Agencies and private donors (24%).

Other projects ( Administration & Common service Fees, Investment income, Contributions fromCentre, Commercial Operations) (16%).

Income (J$’000) - Five Year Summary

5,626,110

2,427,826

3,128,161

2,058,454

13,240,551

5,290,249

2,039,285

3,331,870

1,758,034

12,419,438

5,431,337

1,795,466

2,716,523

1,500,314

11,443,640

5,441,544

1,667,671

2,300,839

1,560,185

10,970,239

5,126,623

1,359,693

620,734

2,620,590

9,727,640


Selected Financial and Statistical Highlights | for the Year Ended July 31, 2013

4

Acco

unts

201

3

Figure 2. Income (%) 2012 - 2013

Figure 3. Income (J$’000) - Five Year Analysis

Figure 2.

Figure 3.

Income (%) 2012 - 2013

Income (J$'000) - Five Year Analysis

6,000,000

West Indian Government Contributions Tuition Fees Donor Income Other Projects

100%

6,000,000


42%

18%

24%

16%


0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

12/13 11/12 10/11 09/10 08/090

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

12/13 11/12 10/11 09/10 08/09

4

Figure 2.

Figure 3.

Income (%) 2012 - 2013


6,000,000


100%

6,000,000


42%

18%

24%

16%


0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

12/13 11/12 10/11 09/10 08/090

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

12/13 11/12 10/11 09/10 08/09

4

Figure 2.

Figure 3.

Income (%) 2012 - 2013


6,000,000


100%

6,000,000


42%

18%

24%

16%


0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

12/13 11/12 10/11 09/10 08/090

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

12/13 11/12 10/11 09/10 08/09

4

Figure 2.

Figure 3.

Income (%) 2012 - 2013


6,000,000


100%

6,000,000


42%

18%

24%

16%


0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

12/13 11/12 10/11 09/10 08/090

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

12/13 11/12 10/11 09/10 08/09

4



5

Acco

unts

201

3

EXPENDITURE

The expenditure of the Campus is incurred in four (4) broad categories as follows:

Total campus expenditure excluding finance charge and depreciation for the reporting period was J$12,411 million. Figure 5 shows the expenditure incurred in each of the above categories.

Figure 6 is a pictorial representation of the five year summary of expenditure as presented in Figure 4.

Figure 7 shows the total departmental ( academic and other teaching and research) expenditure for the last five financial years. Figure 8 and 9 are pictorial representation of the departmental expenditure for the last five financial years.

Figure 4.

CATEGORIES 12/13 11/12 10/11 09/10 08/09

Administration

Departments

Central Expenditure

Other Projects

Pension, Finance Charge & Depreciation

TOTAL

2.

(i)

(ii)

(iii)

(iv)

Administration (9%)

Departments - Teaching & Research, Other (44%)

Central Expenditure (21%)

Other projects (26%)

Expenditure (J$’000) - Five Year Summary

1,093,106

5,460,561

2,565,369

3,291,494

12,410,530

1,939,897

14,350,427

1,013,752

5,082,807

2,054,952

3,259,948

11,411,459

91,909

11,503,368

954,676

4,953,101

1,968,291

2,922,356

10,798,424

1,421,637

12,220,061

816,024

4,587,128

2,046,140

2,462,955

9,912,247

945,516

10,857,763

786,278

4,822,132

1,974,401

2,293,588

9,876,399

1,109,387

10,985,786



6

Acco

unts

201

3

Figure 5. Areas of Expenditure (J$’000) : 2012 - 2013

Figure 5.Areas of Expenditure (J$'000) : 2012 - 2013

5,460,561

2,565,369

3,291,494

1,939,8972,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Administration

Departments

Central Expenditure

Other Projects


5,460,561

2,565,369

3,291,494

1,939,8972,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Administration

Departments

Central Expenditure

Other Projects


6

1,093,106

0

1,000,000

1,093,106

0

1,000,000

6



7

Acco

unts

201

3

Figure 6. Areas of Expenditure (J$’000) - Five Year AnalysisFigure 6.

Areas of Expenditure (J$'000) - Five Year Analysis

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Administration

Departments

Central Expenditure

Other Projects


2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Administration

Departments

Central Expenditure

Other Projects


0

1,000,000

12/13 11/12 10/11 09/10 08/090

1,000,000

12/13 11/12 10/11 09/10 08/09

7

Figure 6.Areas of Expenditure (J$'000) - Five Year Analysis

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Administration

Departments

Central Expenditure

Other Projects


2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Administration

Departments

Central Expenditure

Other Projects


0

1,000,000

12/13 11/12 10/11 09/10 08/090

1,000,000

12/13 11/12 10/11 09/10 08/09

7



8

Acco

unts

201

3

Figure 7. Departmental Expenditure (J$’000) - Five Year Summary

CATEGORIES 12/13 11/12 10/11 09/10 08/09

Pure and Applied Science

Arts and Education

Social Science

Medical Science

Library

Others

TOTAL

Figure 8. Departmental Expenditure - 2012 - 2013

1,008,373

902,524

652,814

2,046,277

381,007

469,566

5,460,561

892,209

799,196

746,517

1,832,809

386,524

407,269

5,064,524

938,963

698,140

758,724

1,748,741

364,698

443,835

4,953,101

862,277

649,198

764,749

1,545,341

368,435

397,128

4,587,128

869,664

683,541

795,980

1,666,422

384,065

422,461

4,822,133

Figure 8.Departmental Expenditure - 2012 - 2013


18%

Arts and Education17%

Library7%

Others9%


18%

Arts andEducation

17%

Social Science

Medical Science37%

Library7%

Others9%

Social Science12%Medical Science

37%

Pure and Applied Science Arts and Education Social Science Medical Science Library Others

Social Science12%


9



Figure 8.Departmental Expenditure - 2012 - 2013


18%

Arts and Education17%

Library7%

Others9%


18%

Arts andEducation

17%

Social Science

Medical Science37%

Library7%

Others9%

Social Science12%Medical Science

37%


Social Science12%


9

9

Acco

unts

201

3

Figure 9. Departmental Expenditure (J$’000) - Five Year Analysis

Figure 9.Departmental Expenditure (J$'000) - Five Year Analysis

1,000,000

1,500,000

2,000,000

2,500,000 08/09 09/10 10/11 11/12 12/13

1,000,000

1,500,000

2,000,000

2,500,000 08/09 09/10 10/11 11/12 12/13

10

0

500,000


Arts and Education

Social Science Medical Science Library Others0

500,000


Arts and Education

Social Science Medical Science Library Others

10



10

Acco

unts

201

3

KPMGChartered AccountantsThe Victoria Mutual Building6 Duke StreetKingstonJamaica, W.I.

P.O. Box 76KingstonJamaica, W.I.Telephone +1 (876) 922-6640Fax +1 (876) 922-7198 +1 (876) 922-4500e-Mail [email protected]

KPMG, a Jamaican partnership and a member firm of the KPMG network ofindependent member firms affiliated withKPMG International Cooperative (“KPMGInternational”), a Swiss entity.

Elizabeth A. JonesR. Tarun HandaPatrick A. ChinPatricia O. Dailey-SmithLinroy J. Marshall

Cynthia L. LawrenceRajan TrehanNorman O. RainfordNigel R. Chambers

INDEPENDENT AUDITORS’ REPORT

To the Members ofThe Council of the University of the West Indies - Mona Campus

Report on the Financial Statements

We have audited the financial statements of University of the West Indies – Mona Campus, set out on pages 13 to 52, which comprise the statement of financial position as at July 31, 2013, the statements of comprehensive income, changes in equity and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation of financial statements that give a true and fair view in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors‘ Responsibility

Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance as to whether or not the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence relating to the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including our assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation of financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.


Auditors’ Report | for the Year Ended July 31, 2013

11

Acco

unts

201

3

INDEPENDENT AUDITORS’ REPORT

To the Members ofThe Council of the University of the West Indies - Mona Campus

Report on the Financial Statements, cont’dWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements give a true and fair view of the financial position of University of the West Indies – Mona Campus as at July 31, 2013, and of its financial performance, changes in equity and cash flows for the year then ended, in accordance with International Financial Reporting Standards.

Chartered AccountantsKingston, Jamaica

August 29, 2013


Auditors’ Report (cont’d) | for the Year Ended July 31, 2013

12

Acco

unts

201

3

CURRENT ASSETS

CURRENT LIABILITIES

NET CURRENT (LIABILITIES)/ASSETSNON-CURRENT ASSETS

RESERVES

NON-CURRENT LIABILITIES

The financial statements on pages 13 to 52 were approved for issue by the Audit Committee of the University - Mona Campus on August 26, 2013 and signed on its behalf by management on August 29, 2013:

____________________________ PrincipalProfessor Gordon Shirley

____________________________ Campus BursarElaine Robinson

The accompanying notes form an integral part of the financial statements.

Notes 2013 2012 $’000 $’000

Cash and cash equivalents Short-term investments Due from related parties Accounts receivable Inventories

Accounts payable and accrualsDue to related partiesCurrent portion of long-term loansCurrent portion of other long-term liabilitiesShort-term loans

Long-term receivablesInterest in subsidiariesProperty, plant and equipment

Capital reservesOther reserves:

Unexpended funds for

Endowment fundsLong-term liabilitiesCapital grantsEmployee benefits obligation

General reservesAccumulated fund

special projects, scholarships and prizes

330,741333,232415,894

2,122,94277,621

3,280,430

2,460,402506,674556,233440,229

1,050,2605,013,7981,733,368

366,322189,918

15,304,92415,861,16414,127,796

1,763,978

868,916387,404

3,020,298

465,470290,278

6,478,1501,571,4132,302,187

11,107,49814,127,796

210,419479,033179,253

1,531,54571,475

2,471,725

1,975,279515,795442,305308,683142,500

3,384,562912,837

413,316169,115

14,101,76514,684,19613,771,359

1,763,978

859,6851,496,5174,120,180

464,343296,540

5,929,9511,391,8051,568,5409,651,179

13,771,359

45

6(a)78

96(b)16(i)16(ii)

10

111213

1415161718

( ) ( )


Statement of Financial Position | for the Year Ended July 31, 2013

13

Acco

unts

201

3

INCOME

West Indian government contributions University Centre contributions for library & administration Tuition & other student fees Donor income for special projects Other projects Investment Commercial operations Miscellaneous

Less: Transfer to capital grants

Income after transfer to capital grants

EXPENDITURE

EXCESS OF INCOME OVER EXPENDITURE

LOSS ON FOREIGN EXCHANGE

FINANCE COSTS

EXCESS OF INCOME OVER EXPENDITURE FOR THE YEAR

PENSION PLANS AND POST-EMPLOYMENT

DEPRECIATION(DEFICIT)/SURPLUS, BEING TOTAL COMPREHENSIVE

The accompanying notes form an integral part of the financial statements.

Administrative Departmental Central Donor funded expenditure for special projects Other projects Commercial operations

FOR THE YEAR BEFORE LOSS ON EXCHANGE,FINANCE COSTS, DEPRECIATION, PENSION PLANS AND POST-EMPLOYMENT MEDICAL BENEFITS

BEFORE DEPRECIATION, PENSION PLANS AND POST-EMPLOYMENT MEDICAL BENEFITS

MEDICAL BENEFITS

(LOSS)/INCOME FOR THE YEAR

5,626,11025,201

2,427,826388,789

2,739,37214,016

1,805,457423,670

13,450,441209,891

13,240,550

1,093,1065,460,5612,565,369

388,7891,347,5701,555,134

12,410,529

830,021

84,540

116,184

629,297

920,005

819,168

1,109,876

5,290,24925,200

2,039,285537,259

2,794,61148,110

1,476,079 349,735

12,560,528141,090

12,419,438

1,013,7525,082,8072,054,954

537,2591,379,8821,342,807

11,411,461

1,007,977

4,558

246,665

756,754

739,550

580,235

916,069

( ) ( )

( )

( )

( )

( )

( )

( )

2013 2012 $’000 $’000

( )

( )

Notes

19

17

20

21

18(c)(iv)

13


Statement of Comprehensive Income | for the Year Ended July 31, 2013

14

Acco

unts

201

3


Detailed Statement of Comprehensive Income | for the Year Ended July 31, 2013

INCO

ME

Less

: Tra

nsfe

r to

capi

tal g

rant

s

ExpE

Nd

Itu

rE

ExCE

SS O

F IN

COM

E O

VEr

Exp

ENd

Itu

rE

Loss

on

fo

reig

n e

xch

an

ge

fin

an

ce c

osT

s

ExCE

SS O

F IN

COM

E O

VEr

Exp

ENd

Itu

rE

Pen

sio

n P

Lan

s a

nD

Po

sT-e

MPL

oYM

enT

DeP

reci

aTio

n

Wes

t Ind

ian

gove

rnm

ent c

ontr

ibut

ions

Uni

vers

ity C

entr

e co

ntrib

utio

ns fo

r lib

rary

an

d ad

min

istr

atio

n Tu

ition

and

oth

er s

tude

nt fe

esD

onor

inco

me

from

spe

cial

pro

ject

sO

ther

pro

ject

sIn

vest

men

ts

Com

mer

cial

ope

ratio

nsM

isce

llane

ous

Adm

inis

trat

ive

Dep

artm

enta

lCe

ntra

lD

onor

fund

ed e

xpen

ditu

re fo

r spe

cial

pro

ject

s O

ther

pro

ject

s Co

mm

erci

al o

pera

tions

FOR

THE

YEA

R BE

FORE

LO

SS O

N E

XCH

AN

GE

FIN

AN

CE C

OST

S, D

EPRE

CIAT

ION

, PEN

SIO

N P

LAN

S A

ND

PO

ST-E

MPL

OYM

ENT

MED

ICA

L BE

NEF

ITS

FOR

THE

YEA

R BE

FORE

DEP

RECI

ATIO

N,

PEN

SIO

N P

LAN

S A

ND

PO

ST-E

MPL

OYM

ENT

MED

ICA

L BE

NEF

ITS

MED

ICA

L BE

NEF

ITS

(DEF

ICIT

)/SU

RPLU

S, B

EIN

G T

OTA

L

CO

MPR

EHEN

SIVE

(LO

SS)/

INCO

ME

FOR

THE

YEA

R

5,62

6,11

0

25,2

012,

427,

826

55,3

6314

,016

41,9

5842

3,67

08,

614,

144

209,

891

8,40

4,25

3

1,09

3,10

65,

460,

561

2,56

5,36

9

9,11

9,03

6

714,

783

80,1

67

85,4

85

880,

435

920,

005

681,

573

2,48

2,01

3

- - - -

UG

C

July

2013

$’00

0

388,

789

811,

465

1,20

0,25

4

1,20

0,25

4

388,

789

749,

376

1,13

8,16

5

62,0

89

4,32

7

130

57,6

32

57,6

32

- - - - - - - - - - - - - -

Spec

ial a

ndO

ther

Pr

ojec

tsJu

ly20

13$’

000

Not

es

19 17 20 21

18(c

)(iv)

13

665,

334

665,

334

665,

334

519,

942

519,

942

145,

392

28,8

99

116,

493

116,

493

- - - - - - - - - - - - - - -

(

)

Hal

ls o

f Re

side

nce

July

2013

$’00

0

1,09

8,16

5

1,09

8,16

5

1,09

8,16

5

1,03

5,19

21,

035,

192

62,9

73 46

1,62

7

61,3

00

61,3

00

- - - - - - - - - - - - - - -

Com

mer

cial

O

pera

tions

July

2013

$’00

0

98,4

53

98,4

53

98,4

53

55,4

89

55,4

89

42,9

64 18

42,9

46

42,9

46

Dep

artm

enta

l Fu

nds

Cons

ulta

tion

July

2013

$’00

0

1,77

4,09

1

1,77

4,09

1

1,77

4,09

1

542,

705

542,

705

1,23

1,38

6 25

1,23

1,36

1

137,

595

1,09

3,76

6

Dep

artm

enta

l Fu

nds

- Oth

er

July

2013

$’00

0

(

)

(

)

(

)

(

)

(

)

(

)

(

)

(

)

(

)

(

)

(

)

(

)

(

)

(

)

(

)

5,62

6,11

0

25,2

012,

427,

826

388,

789

2,73

9,37

214

,016

1,80

5,45

742

3,67

013

,450

,441

209,

891

13,2

40,5

50

1,09

3,10

65,

460,

561

2,56

5,36

938

8,78

91,

347,

570

1,55

5,13

412

,410

,529

830,

021

84,5

40

116,

184

629,

297

920,

005

819,

168

1,10

9,87

6

(

)

(

)

(

)

(

)

(

)

(

)

TOTA

L FU

ND

S

July

2013

$’00

0

5,29

0,24

9

25,2

002,

039,

285

537,

259

2,79

4,61

148

,110

1,47

6,07

934

9,73

512

,560

,528

141,

090

12,4

19,4

38

1,01

3,75

25,

082,

807

2,05

4,95

453

7,25

91,

379,

882

1,34

2,80

711

,411

,461

1,00

7,97

7

4,55

8

246,

665

756,

754

739,

550

580,

235

916,

069

(

)

(

)

(

)

TOTA

L FU

ND

S

July

2012

$’00

0

The

acco

mpa

nyin

g no

tes

form

an

inte

gral

par

t of t

he fi

nanc

ial s

tate

men

ts.

- - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - -

15

Acco

unts

201

3


Statement of Changes in Equity | for the Year Ended July 31, 2013

Bala

nces

as

at Ju

ly 3

1, 2

011

Surp

lus,

bein

g to

tal c

ompr

ehen

sive

inco

me

for

Tran

sfer

- ot

her

Adju

stm

ents

for n

et c

hang

es o

n st

aff

Bala

nces

as

at Ju

ly 3

1, 2

012

Defi

cit,

bein

g to

tal c

ompr

ehen

sive

loss

for

Tran

sfer

- ot

her

Adju

stm

ents

for n

et c

hang

es o

n st

aff

Bala

nces

as

at Ju

ly 3

1, 2

013

the

year

revo

lvin

g lo

an fu

nd

the

year

revo

lvin

g lo

an fu

nd

1,76

3,97

8

1,76

3,97

8

1,76

3,97

8

- - - - - -

Capi

tal

Rese

rves

$’00

0

849,

364

10,3

21

859,

685

9,23

1

868,

916

Gen

eral

Re

serv

es

$’00

0

2,29

2,32

2

1,37

9,26

631

4,68

6

3,35

6,90

2

1,37

2,13

6

763

4,72

9,80

1

Dep

artm

enta

l Fu

nds

$’00

0

1,70

1,55

3

463,

197

314,

686

10,3

21

1,86

0,38

5

2,48

2,01

2

4,34

2,39

7

UG

C Fu

nds

$’00

0

3,20

4,11

1

916,

069

4,12

0,18

0

1,10

9,87

6

763

9,23

1

3,02

0,29

8

Tota

l Fu

nds

$’00

0

Accu

mul

ated

Fun

ds

(

)

- - - -

- -

- -

- -

(

)

(

)

(

)

(

)

(

)

(

)

(

)

The

acco

mpa

nyin

g no

tes

from

an

inte

gral

par

t of t

he fi

nanc

ial s

tate

men

ts.

16

Acco

unts

201

3

CASH FLOWS FROM OPERATING ACTIVITIES(Deficit)/surplus for the year Adjustments:

CASH FLOWS FROM INVESTING ACTIVITIES

(Increase)/decrease in current assets

Increase/(decrease) in current liabilities

Interest expenseProvision for impairment lossesDepreciationEmployee benefits obligationUnrealized loss/(gain) on foreign exchangeAmortization of capital grants Transfers to capital grantsGain on sale of property, plant and equipmentInterest Income

Accounts receivableDue from related partiesInventories

Due to related parties Accounts payable and accruals

Interest received Additions to property, plant & equipmentProceeds of sale of property, plant & equipmentInvestments, netLong-term receivables, netInterest in subsidiaries

Net cash provided by operating activities

Net cash used by investing activities

1,109,876

53,24775,562

819,168733,647

62,51230,283

3,36819,086

581,523

626,106236,641

6,146

9,121438,629

142,138

19,0862,023,003

4,043151,951

46,99420,803

1,821,732

916,069

213,782195,072580,235932,806

62,03827,261

259,755252

48,110924,808

183,983200,344

883

438,45333,413

1,781,884

53,2744,183,955

252820,427245,197

13,595

3,078,400

-( )

( )( )( )

( )

( )

( )

( ) ( )

( )

( )( )

( )

( )

( ) ( )

( )

( ) ( )

2013$’000

2012$’000

Notes

2124(i)13

1717

13

*


Statement of Cash Flows | for the Year Ended July 31, 2013

17

Acco

unts

201

3

209,8916,2621,127

373,232907,760934,829

6,752

1,667,361

12,233

132,555

210,419

330,741

141,0901,172

153,580390,477142,500

1,742,861144,734

1,336,488

39,972

2,113

172,560

210,419

*2013$’000

2012$’000

CASH FLOWS FROM FINANCING ACTIVITIES

NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS EFFECT OF EXCHANGE RATE MOVEMENT ON CASH

CASH AND CASH EQUIVALENTS AT THE

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR

The accompanying notes form an integral part of the financial statements.* After reclassifications to conform to 2013 presentation.

AND CASH EQUIVALENTS

BEGINNING OF THE YEAR

Capital grantsEndowment fundsSpecial projects advances, netLong-term liabilities, netProceeds of short-term loans, netProceeds of short-term loansInterest paid

Net cash provided by financing activities

Notes

1715

4

( )

( )

( )

( ) ( )

( )( )( )

( )


Statement of Cash Flows cont’d | for the Year Ended July 31, 2013

18

Acco

unts

201

3

IDENTIFICATION AND PRINCIPAL ACTIVITIES

The University of the West Indies - Mona Campus (“UWI Mona”) is located at Mona, Kingston, Jamaica. UWI Mona is one of the four main Campuses of the University, the other three being Cave Hill in Barbados, St. Augustine in Trinidad and Tobago and the Open Campus with operations in all seventeen Caribbean nations.

The principal activities of UWI Mona are the provision of a place of education, learning and research, in order to secure the advancement of knowledge and the diffusion and extension of arts, sciences and learning throughout the Caribbean. Activities ancillary to the principal activities include rental of student housing, other rentals and book-sales.

BASIS OF PRESENTATION

(a)

1.

2.

Statement of compliance:

The financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”), and interpretations as issued by the International Accounting Standards Board.

New, revised and amended standards and interpretations that became effective during the year

Certain new, revised and amended standards and interpretations which were in issue came into effect for the current financial year. The adoption of these standards, amendments and interpretations did not have any impact on amounts and disclosures in the financial statements.

New, revised and amended standards and interpretations that are not yet effective

At the date of authorization of the financial statements the following new, revised and amended standards and interpretations, which were in issue, were not yet effective and had not been adopted early by UWI Mona. Those standards and interpretations that management considers relevant to UWI Mona are as follows:

IFRS 9, Financial Instruments, is effective for annual reporting periods beginning on or after January 1, 2015. The standard retains but simplifies the mixed measurement model and establishes two primary measurement categories for financial assets: amortised cost and fair value. It eliminates the existing IAS 39 categories of held to maturity, available-for-sale and loans and receivables. For an investment in an equity instrument which is not held for trading, the standard permits an irrevocable election, on initial recognition, to present all fair value changes from the investment in other comprehensive income. The standard includes guidance on classification and measurement of financial liabilities designated as fair value through profit or loss and incorporates certain existing requirements of IAS 39 Financial Instruments: Recognition and Measurement on the recognition and de-recognition of financial assets and financial liabilities.


Notes to the Financial Statements | for the Year Ended July 31, 2013

19

Acco

unts

201

3

Basis of presentation (cont’d)

(a)

2.

Statement of compliance (cont’d):

New, revised and amended standards and interpretations that are not yet effective (cont’d)

IFRS 10, Consolidated Financial Statements (effective for annual reporting periods beginning on or after January 1, 2013) supersedes IAS 27 Consolidated and Separate Financial Statements and provides a single model to be applied in the control analysis for all investees, including entities that currently are Special Purpose Entities. The consolidation procedures are carried forward from IAS 27 (2008).

IFRS 12, Disclosure of Interest in Other Entities (effective for annual reporting periods beginning on or after January 1, 2013) contains disclosure requirements for entities that have interests in subsidiaries, joint arrangements, associates and/or unconsolidated structured entities. These required disclosures aim to provide information to enable users to evaluate the nature of, and risks associated with, an entity’s interests in other entities and the effects of those interests on the entity’s financial position, financial performance and cash flows.

IFRS 13, Fair Value Measurement, (effective for annual reporting periods beginning on or after January 1, 2013) replaces the fair value measurement guidance contained in individual IFRSs with a single source of fair value measurement guidance. It defines fair value, establishes a framework for measuring fair value and sets out disclosure requirements for fair value measurements. IFRS 13 explains ‘how’ to measure fair value when it is required or permitted by other IFRSs. IFRS 13 does not introduce new requirements to measure assets or liabilities at fair value, nor does it eliminate the practicability exceptions to fair value measurements that currently exist in certain standards. It defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, i.e. an exit price.

IFRS 10, Consolidated Financial Statements, which is effective for annual reporting periods beginning on or after January 1, 2013, introduces a new approach to determining which investees should be consolidated. It was issued as part of a suite of consolidation and related standards, also replacing existing requirements for joint ventures (now Joint Arrangements) and making limited amendments in relation to associates. IFRS 10 supersedes IAS 27, Consolidated and Separate Financial Statements, and SIC-12, Consolidation – Special Purpose Entities, and provides a single model to be applied in the control analysis for all investees, including entities that currently are Special Purpose Entities (SPEs) in the scope of SIC-12. An investor controls an investee when (i) it is exposed, or has rights, to variable returns from its involvement with the investee, (ii) has the ability to affect those returns through its power over the investee and (iii) there is a link between power and returns.



20

Acco

unts

201

3


(a)

(b)

(c)

2.

Statement of compliance (cont’d):

New, revised and amended standards and interpretations that are not yet effective (cont’d)

UWI Mona is assessing the impact these new, revised and amended standards and interpretations will have on the financial statements when they become effective.

Basis of measurement:

The financial statements are prepared under the historical cost basis.

Functional and presentation currency:

These financial statements are presented in Jamaica dollars, except where otherwise indicated, which is the functional currency of UWI Mona.

Improvements to IFRS 2009-2011 cycle contain amendments to certain standards and interpretations and are effective for accounting periods beginning on or after January 1, 2013. The main amendments applicable to UWI Mona are as follows:

-

-

-

IAS 1, Presentation of Financial Statements, is amended to clarify that only one comparative period, which is the preceding period, is required for a complete set of financial statements. IAS 1 requires the presentation of an opening statement of financial position when an entity applies an accounting policy retrospectively or makes a retrospective restatement or reclassification. IAS 1 has been amended to clarify that (a) the opening statement of financial position is required only if a change in accounting policy, a retrospective restatement or a reclassification has a material effect upon the information in that statement of financial position; (b) except for the disclosures required under IAS 8, notes related to the opening statement of financial position are no longer required; and (c) the appropriate date for the opening statement of financial position is the beginning of the preceding period, rather than the beginning of the earliest comparative period presented.

IAS 19, Employee Benefits, has been amended to require all actuarial gains and losses to be recognised immediately in other comprehensive income. This change will remove the corridor method and eliminate the ability of entities to recognise all changes in the defined-benefit obligation and in plan assets in profit or loss. The expected return on plan assets recognised in profit or loss is to be calculated based on the rate used to discount the defined-benefit obligation. The amendment also includes changes to the definitions and disclosure requirements in the current standard.

IAS 16, Property, Plant and Equipment, is amended to clarify that the definition of ‘property, plant and equipment’ in IAS 16 is now considered in determining whether spare parts, standby equipment and servicing equipment should be accounted for under the standard. If these items do not meet the definition, then they are accounted for using IAS 2 Inventories.



21

Acco

unts

201

3


(d)

2.

Use of estimates, assumptions and judgments:

The preparation of the financial statements in conformity with IFRS requires management to make estimates, assumptions and judgments that affect the reported amounts of, and/or disclosures relating to, assets, liabilities, contingent assets and contingent liabilities at the reporting date and the income and expenses for the year ended. Actual amounts could differ from those estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and future periods, if the revision affects both periods.

Judgements made by management in the application of IFRS that have a significant effect on the financial statements and estimates with a significant risk of material adjustment in the next financial year are discussed below:

(i)

(ii)

Allowance for impairment losses on receivables:

In determining amounts recorded for impairment losses on receivables in the financial statements, management makes judgements regarding indicators of impairment, that is, whether there are indicators that suggest there may be a measurable decrease in the estimated future cash flows from receivables, for example, default and adverse economic conditions. Management also makes estimates of the likely estimated future cash flows of impaired receivables as well as the timing of such cash flows. Historical loss experience is applied where indicators of impairment are not observable on individual significant receivables with similar characteristics, such as credit risks.

Pension and other post-retirement benefits:

The amounts recognised in UWI Mona’s statement of financial position and surplus or deficit for pension and other post-employment benefits are determined actuarially using several assumptions. The primary assumptions used in determining the amounts recognised include expected long-term return on plan assets, the discount rate used to determine the present value of estimated future cash flows required to settle the pension and other post-retirement obligations and the expected rate of increase in medical costs for post-employment medical benefits.

The expected return on plan assets considers the long-term returns, asset allocation and future estimates of long-term investment returns. The discount rate is determined based on the estimate of yield on long-term government securities that have maturity dates approximating the terms of UWI Mona’s obligation; in the absence of such instruments in Jamaica, it has been necessary to estimate the rate by extrapolating from the longest-tenor security on the market. The estimate of expected rate of increase in medical costs is determined based on inflationary factors. Any changes in the foregoing assumptions will affect the amounts recorded in the financial statements for these obligations.



22

Acco

unts

201

3


(e)

significant accounting policies

(a)

(b)

(c)

(d)

2.

3.

Going concern basis:

The preparation of the financial statements in accordance with IFRS assumes that UWI Mona will continue in operational existence for the foreseeable future. This means, inter alia, that the statement of financial position and comprehensive income assume no intention or necessity to liquidate UWI Mona or curtail the scale of its operations. This is commonly referred to as the going concern basis. Management is of the view that the going concern basis continues to be appropriate in the preparation of the financial statements.

Cash and cash equivalents

Cash and cash equivalents comprise cash and bank balances and include short-term deposits and other monetary investments with maturities of three months or less from the acquisition date. Bank overdrafts that are repayable on demand and form an integral part of UWI Mona’s cash management activities are included as a component of cash and cash equivalents.

Investments

(i)

(ii)

Accounts receivable

Trade and other receivables are stated at their cost less impairment losses.

Interest in subsidiaries

UWI Mona’s interest in subsidiaries is carried at cost less impairment losses.

Loans and receivables

Loans and receivables are non-derivative financial instruments with fixed or determinable payments that are not quoted in an active market and are measured at amortized cost using the effective interest method, less any impairment losses.

Resale agreements

Resale agreements are short-term transactions whereby an entity buys securities and simultaneously agrees to resell them on a specified date and at a specified price.

Although the security is delivered to the “buyer” at the time of the transaction, title is not actually transferred unless the counterparty fails to repurchase the securities on the date specified. Resale agreements are accounted for as short-term collateralised lending.

The difference between the purchase and sale considerations is recognised on an accrual basis over the period of the transaction, using the effective interest method, and is included in interest income.



23

Acco

unts

201

3

SIGNIFICANT ACCOUNTING POLICIES (cont’d)

(e)

(f)

(g)

(h)

3.

Inventories

Inventories are stated at the lower of cost and net realizable value. Cost is determined on the weighted average basis.

Accounts payable

Trade and other payables are stated at amortized cost.

Property, plant and equipment and depreciation

(i)

(ii)

(iii)

Employee benefits

Pensions and other post-employment assets and obligations included in these financial statements have been actuarially determined by a qualified independent actuary, appointed by management. The appointed actuary’s report outlines the scope of the valuation and the actuary’s opinion. The actuarial valuations are conducted in accordance with IAS 19, and the financial statements reflect the post-employment benefit assets and obligations as computed by the actuary. In carrying out their activity, the auditors rely on the work of the actuary and the actuary’s report.

Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. Costs include expenditure that is directly attributable to the acquisition of the assets. The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to UWI Mona and its cost can be reliably measured. The cost of day-to-day servicing of property, plant and equipment is recognised in surplus or deficit as incurred

Property, plant and equipment, with the exception of freehold land and work-in-progress on which no depreciation is provided, are depreciated on the straight-line basis at annual rates estimated to write down the assets to their residual values over their expected useful lives. The depreciation rates are as follows:

BuildingsFurniture and office equipmentMotor vehiclesComputers and other electronic equipmentLibrary books

Depreciation methods, useful lives and residual values are reassessed annually.

Property, plant and equipment donated is capitalised at estimated fair value, usually the cost of the item if it was purchased, and credited to capital grants. Annual transfers, equivalent to depreciation charged on property, plant and equipment funded by such grants, are made to surplus or deficit.

2.50%10%20%

10 - 33.33%20%



24

Acco

unts

201

3


(h)

3.

Employee benefits (cont’d)

Employee benefits include current or short-term benefits such as salaries, NIS contributions paid, annual vacation, and non-monetary benefits such as sick leave medical care and housing; post-employment benefits such as pensions and medical care; other long-term employee benefits such as sabbatical leave, long service benefits and termination benefits.

(i)

(ii)

General benefits

Employee benefits that are earned as a result of past or current service are recognized in the following manner: Short-term employee benefits are recognized as a liability, net of payments made, and charged as expense. The expected cost of vacation leave that accumulates is recognized when the employee becomes entitled to the leave. Post employment benefits are accounted for as described in (ii) and (iii) below. Other long-term benefits and termination benefits are not considered material and are expensed as incurred.

Pension benefits

(1)

(2)

Defined-contribution plansUWI Mona provides for pension benefits for retired employees through two defined contribution plans. Its obligation to contribute to the defined contribution pension plans in accordance with the rules of the plans is recognized as an expense in surplus or deficit as the contributions fall due. In the case of one of the two plans, that for academic and senior administrative staff - Federated Superannuation Scheme for Universities [see note 18 (a)] - UWI Mona, on the basis of commitments made, has an obligation to supplement the pensions.

Defined-benefit effect of supplementation arrangementsThe effect of UWI Mona undertaking to supplement basic pensions to two-thirds final salary under certain conditions (note 18) is to create an obligation consistent with that for a defined benefit plan. Therefore, this obligation for the supplementation arrangements is determined and accounted for in the same way as the obligation arising under a defined-benefit plan.

UWI Mona’s net obligation in respect of its undertaking to supplement pensions is calculated by estimating the amount of future supplementation benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine the present value, and the fair value of any plan assets, (in the case of UWI Mona, is $nil), is deducted from it. The discount rate used is the yield at reporting date on long-term government instruments that have maturity dates approximating the terms of UWI Mona’s pension obligations. The calculation is performed by a qualified actuary using the projected unit credit method.

If and when benefits payable under the supplementation arrangements are improved, the portion of the increased benefit that relates to past service by employees is recognized as an expense in surplus or deficit on a straight-line basis over the average service period remaining until the benefits become vested. To the extent that the benefits vest immediately, the expense is recognized immediately.



25

Acco

unts

201

3


(h)

(i)

3.

Employee benefits (cont’d)

(ii)

(iii)

Donations for designated projects

UWI Mona receives funding from donors for “special projects” and “other projects”.

(i)

Pension benefits (cont’d)

(2)

Post-employment medical care

UWI Mona also has an obligation to provide certain post-employment medical benefits. The obligation to fund these future benefits is actuarially determined and accounted for in the same way as the obligation to supplement basic pensions.

Donations that are governed by donor-imposed stipulations, which stipulations must be complied with to the satisfaction of the donor for the project expenditure to be approved, are generally for projects undertaken by the various departments and are referred to as special projects advances (note 14). Such donations are accounted for as follows:

(a)

(b)

Defined-benefit effect of supplementation arrangements (cont’d)To the extent that any cumulative unrecognized actuarial gain or loss exceeds ten percent (10%) of the greater of the fair value of plan assets and the present value of the defined benefit obligation, that portion is recognized in surplus or deficit over the expected average remaining working lives of the employees participating in the plan. Otherwise, the actuarial gain or loss is not recognized.

Where the calculation results in a benefit to UWI Mona, an asset is recognized only to the extent of the net total of (1) any unrecognized actuarial losses and past service costs, and (2) the present value of any future refunds from the plan or reductions in future contributions to the plan. However, the supplementation plan is unfunded, i.e., a pay-as-you-go plan, and, accordingly, there are no contributions and therefore no plan assets at this time.

Donations received in advance of project expenditure

Donations received in advance of expenditure are deferred, and are shown in the statement of financial position as “Unexpended funds for special projects”. When funds are spent in accordance with the donor’s stipulations, the amount is charged off as “Special projects expenses” or, if applicable, as property, plant and equipment. An equivalent amount is then transferred from “Unexpended funds for special projects” to “Special projects income” or, if applicable, “capital grants”.

Project expenditure made in advance of receipt of donations pledged

Project expenditure made in accordance with the donor’s stipulations in advance of receipt of donations pledged is accounted for as “Special projects receivables” in anticipation of reimbursements. The amount is reflected in the statement of comprehensive income as “Special project expenses” or, if applicable, as property, plant and equipment, with an equivalent sum reflected as “Special projects income” or, if applicable, capital grants.



26

Acco

unts

201

3


(i)

(j)

(k)

3.

Donations for designated projects (cont’d)

(ii)

(iii)

Capital grants

Capital grants comprise the following:

(i)

(ii)

The amounts meeting the condition include:

(i)

(ii)

For each reporting period, an amount equivalent to the depreciation charge on the relevant property, plant and equipment for the period is transferred from capital grants as a credit to income.

Revenue recognition

(i)(ii)(iii)

Donations that are not subject to donor-imposed stipulations such as those at (a) above, are accounted for as “other projects” income.

UWI Mona charges administrative and common service fees for receiving and disbursing these funds; such fees are credited to income.

estimated fair value of property, plant and equipment donated to UWI Mona [note 3 (g) (iii)]; and

amounts granted to UWI Mona subject to conditions that must be met, the primary condition being that they must be used for the acquisition or construction of property, plant and equipment.

sums included in the biennial budgets for the repayment of the principal of loans taken out to purchase or construct or otherwise acquire property, plant and equipment and funded by contributions from the contributing governments; and

sums from donors other than the contributing governments referred to above, where the donors impose such a condition.

Government contributions are recognized as income when invoiced.Tuition fees are recognized over the period of instruction for which the fees are paid.Interest income is recorded on the accrual basis, using the effective interest method.



27

Acco

unts

201

3


(l)

(m)

3.

Consolidation

UWI Mona has not consolidated its financial position, results of operations and cash flows with those of its wholly-owned subsidiaries, Mona Informatix Limited (MIL), Mona School of Business Limited (MSBM) and Universal Media Company (UMC), as the amounts for the subsidiaries were considered immaterial to the financial statements. Information on the subsidiaries is listed below.

Summary information applicable to these subsidiaries, based on draft financial statements as at July 31, 2013 and 2012 are as follows:

MIL MSBMUMC

Impairment

The carrying amounts of UWI Mona’s assets are reviewed at each reporting date to determine whether there is objective evidence of impairment. If any such indication exists, an impairment loss is recognized based on the asset’s estimated recoverable amount.

The recoverable amount of UWI Mona’s receivables is calculated as the present value of expected future cash flows, discounted at the original effective interest rate inherent in the asset. Receivables with a short duration are not discounted.

If, in a subsequent period, the amount of an impairment loss decreases and the decrease can be linked objectively to an event occurring after the write-down, the write-down is reversed through surplus or deficit.

Net assets/(liabilities)

13,681288,740

45,874256,547

10,11320,256

6,2123,931

64,313120,188178,636

5,865

7,47315,157

8,57031,200

2013$’000

( ) ( )

( )

( ) ( )( )

( )

( )

Net profit/(loss)2012$’000

2013$’000

2012$’000

Name of subsidiary

Mona Informatix LimitedMona School of Business

Universal Media Company

Principal activity

Provision of data processingProvision of managementeducation to private and publicsectors; researching of management-related topics and the provision ofconsultancy services to the private andpublic sectors and international bodies

Provision of radio broadcast and communication services.

Percentage ownership (%)2013100100

100

2012100100

100



28

Acco

unts

201

3


(n)

(o)

3.

Foreign currency translations

(i)

(ii)

(iii)

(iv)

Related parties

A related party transaction is a transfer of resources, services or obligations between related parties, regardless of whether a price is charged.

A related party is a person or entity that is related to the entity that is preparing its financial statements (referred to in IAS 24, Related Party Disclosures as the “reporting entity”) in this case UWI Mona.

(i)

(ii)

Transactions in foreign currencies during the year are translated at the approximate rate ruling at the dates of the transactions.

Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rates ruling at the reporting date. Non-monetary assets and liabilities that are denominated in foreign currencies and are carried at fair value are translated to the functional currency at the exchange rates ruling at the dates that the fair values are determined.

Foreign currency translation gains and losses are reported in surplus or deficit.

Gains and losses arising from conversion of inter-campus balances and government accounts are included in surplus or deficit.

A person or a close member of that person’s family is related to a reporting entity if that person:(a) (b) (c)

An entity is related to a reporting entity if any of the following conditions applies:(a)

(b)

(c)(d)

(e)

(f )(g)

has control or joint control over the reporting entity;has significant influence over the reporting entity; oris a member of the key management personnel of the reporting entity or of a parent of the reporting entity.

The entity and the reporting entity are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others);One entity is an associate or joint venture of the reporting entity (or an associate or joint venture of a member of a group of which the reporting entity is a member).Both entities are joint ventures of the same third party;One entity is a joint venture of a third entity and the reporting entity is an associate of the third entity;The entity is a post-employment benefit plan established for the benefit of employees of either the reporting entity or an entity related to the reporting entity.The entity is controlled, or jointly controlled, by a person identified in (i); andA person identified in (i)(a) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity).



29

Acco

unts

201

3


(p)

(q)

CASh ANd CASh EqUIvALENTS

Cash on hand and imprest accountsBank current accountsSavings and overnight deposit accountsFixed-term deposits

Bank overdraft

ShORT-TERM INvESTMENTS

Mortgages Resale agreements GOJ Local Registered Stocks

Held as follows:

3.

4.

5.

Interest-bearing borrowings:

Interest-bearing borrowings are recognized initially at cost. Subsequent to initial recognition, interest-bearing borrowings are stated at amortized cost, with any difference between cost and redemption value being recognized in surplus or deficit over the period of the borrowing to determine the effective interest rate.

Finance costs:

Finance costs comprise significant bank charges and interest on borrowings, which is accounted for using the effective interest method.

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as property, plant and equipment.

Restricted funds:

Endowment funds (note 15)Net unexpended donations for special projects, scholarships and prizes

38469,772

9,223479,033

296,540

182,493479,033

12323,797

9,423333,232

290,278

42,954333,232

2013$’000

2012$’000

2013$’000

2012$’000

2,714296,638

8,775 41,558349,685

18,944330,741

2013$’000

2,323141,696

14,87158,981

217,8717,452

210,419

2012$’000

2.754

2 - 5.5

27.75

Interest Rate%-

( ) ( )



30

Acco

unts

201

3

SHORT-TERM INVESTMENTS (cont’d)

(i)

(ii)

RELATED PARTIES

(a)

(b)

(c)

ACCOUNTS RECEIVABLE

Due from Governments [see (a) on page 32]Student accounts [note 24(i)] Staff loans and advances Withholding tax on investments Third party receivables PrepaymentsCredit Union revolving loansOther accounts receivable and deposits [see (b) and (c) on page 32]

Less: provision for impairment losses [note 24(i)]

5.

6.

7.

The fair value of GOJ Local Registered Stocks and securities collateralising resale agreements amounted to $360,848,000 (2012: $478,472,000).

In the prior year, of the amount held under resale agreements, $150 million was hypothecated as security for a loan from The Bank of Nova Scotia Jamaica Limited [note 10].

Due from related parties:

Due to related parties:

The above balances are unsecured, interest free and payable within twelve months of the reporting date.

Key management personnel compensation paid during the year was as follows:

Salaries and short-term employee benefits

University CentreCave Hill CampusOpen CampusSt. Augustine Campus

University CentreCave Hill CampusOpen Campus

5,18243,306

121,9188,847

179,253

454,40555,521

5,869515,795

43,473

258,111677,830

40,69069,13196,431

9,832152,463345,776

1,650,264118,719

1,531,545

154,34564,066

188,2889,195

415,894

425,04874,027

7,599506,674

62,288

492,099822,328

35,50672,13696,65874,195

161,694562,607

2,317,223194,281

2,122,942

2013$’000

2012$’000

2013$’000

2012$’000

2013$’000

2012$’000

( ) ( )



31

Acco

unts

201

3

ACCOUNTS RECEIVABLE (cont’d)

(a)

(b)

(c)

(d)

INVENTORIES

General storesBookshop inventory

ACCOUNTS pAyABLE ANd ACCRUALS Trade payablesOther payables and accrualsAccrued staff benefits: Sabbatical leave Study and travel grant Book grant

ShORT-TERm LOANS

National Commercial Bank Jamaica Limited (NCB) (i)The Bank of Nova Scotia Jamaica Limited (BNS) (ii)

(i)

(ii)

7.

8.

9.

10.

This represents amounts due from contributing governments to UWI Mona.

This includes $368,090,000 (2012: $245,222,000) which represents the current portion of salary arrears due from the Government of Jamaica arising from wage agreements for the contract periods 2009/2010, 2010/2011 and 2011/2012 [see note 11(b)].

Included in other accounts receivable is $13,062,000 (2012: $25,030,000) representing project expenditure to be reimbursed by donors.

UWI Mona’s exposure to credit risk and impairment losses related to accounts receivable is disclosed in note 24(i).

This represents to a special arrangement with NCB, which includes a six month facility for which an application has been made to restructure as long-term finance to UWI Mona.

This was a secured loan from BNS under a revolving demand operating credit line. The applicable interest rate was 9% per annum, fixed for six months and was secured up to $150 million by hypothecation of a resale agreement with BNS [note 5(ii)].

21,79949,67671,475

1,123,020444,850

9,438355,178

42,7931,975,279

142,500142,500

-

28,51449,10777,621

1,440,825545,928

31,909402,418

39,3222,460,402

1,050,260

1,050,260-

2013$’000

2012$’000

2013$’000

2012$’000

2013$’000

2012$’000



32

Acco

unts

201

3

Long-term receivabLes

Tuition fees - Medical Sciences students (a)Retroactive salaries receivable (b)

Less: current portion [see note 7(b)]

(a)

(b)

interest in sUbsiDiaries

Shares at costLoan receivables (see note on page 34)Current account Net interest subsidy

Shares at cost Loan receivables (see note on page 34)Current account Net interest subsidy

11.

12.

This relates to a special arrangement with the Faculty of Medical Sciences wherein students are granted extended payment terms in the full fee paying programme.

This relates to salary arrears due from the Government of Jamaica arising from wage agreements for the contract period 2009/2010, 2010/2011 and 2011/2012. Of the total, an amount of $489,083,000 (2012: $Nil) relates to the contract period 2011/2012 and is to be settled over a period of 48 months in four equal installments. The current portion comprises $245,914,000 (2012: $245,222,000) in respect of the contract periods 2009/2010 and 2010/2011 and $122,176,000 (2012: $Nil) in respect of contract period 2011/2012. [See note 16(k)].

10039,194

798

40,092

MIL$’000

(c)

-

79,913124,181

31,07166,050

169,115

Total$’000

79,69751,23526,80847,518

110,222

UMC$’000

(b)

11633,752

3,46518,53218,801

MSBM$’000

(a)

10039,194

1,408

40,702

MIL$’000

(c)

-

79,913115,746

60,30966,050

189,918

Total$’000

79,69751,23551,74247,518

135,156

UMC$’000

(b)

11625,317

7,15918,53214,060

MSBM$’000

(a)

2013

2012

( ) ( ) ( )

( ) ( ) ( )



45,684612,854658,538245,222413,316

44,438689,974734,412368,090366,322

2013$’000

2012$’000

( ) ( )

33

Acco

unts

201

3

INTEREST IN SUBSIDIARIES (cont’d)

(a)

(b)

(c)

12.

In accordance with an agreement dated June 14, 2002, between UWI Mona and Mona School of Business (MSBM), the loan receivable is due in installments over 20 years at an interest rate of five percent per annum with a moratorium of three years on the principal. The payment of interest commenced on August 1, 2002. If MSB’s finances at any point can allow for earlier settlement or larger instalments, this will be permitted without penalty. The balance is stated net of an imputed interest subsidy. The imputed interest is calculated using the discounted cash flow technique at an estimated market rate of interest of 22%, which was the rate at the date of receipt of loan funds.

In accordance with an agreement between UWI Mona and Universal Media Company Limited (UMC), the loan receivable is due in quarterly installments over 10 years at five percent per annum with a moratorium of two years, from April 30, 2006 through April 30, 2008, on the principal and interest. Repayment of principal and payment of interest did not commence on May 1, 2008 as scheduled.

By way of agreement dated May 14, 2010, UWI Mona took control of Universal Media Company (UMC) Limited resulting in UMC reverting to the status of a wholly owned subsidiary. A decision is still to be made on the loan receivable from this subsidiary.

Mona Informatix Limited (MIL) Limited is a wholly owned subsidiary of UWI Mona. The loan receivable from this subsidiary relates to contributions made by UWI Mona towards operations.



34

Acco

unts

201

3

Cost

:

Dep

reci

atio

n:

Net

boo

k va

lues

:

July

31,

201

1Ac

quis

ition

s Tr

ansf

er fr

om W

IP

Dis

posa

lJu

ly 3

1, 2

012

Acqu

isiti

ons

Tran

sfer

from

WIP

Dis

posa

ls

July

31,

201

3

July

31,

201

1 Ch

arge

for y

ear

El

imin

ated

on

disp

osal

s Ju

ly 3

1, 2

012

Char

ge fo

r yea

r El

imin

ated

on

disp

osal

s

July

31,

201

3

July

31,

201

3

July

31,

201

2

13.

PRO

PERT

Y, P

LAN

T &

EQ

UIP

MEN

T

6,68

3,62

848

0,59

11,

006,

696

8,17

0,91

51,

312,

302

5,63

0,92

7 7115

,114

,073

1,37

6,54

718

9,97

1

1,56

6,51

836

3,54

934

41,

929,

723

13,1

84,3

506,

604,

397

Land

, pla

nt

and

build

ings

$’00

0

- -

(

)(

)

(

)

(

)

(

)

(

)(

)

(

)(

)

(

)

(

)

(

)

(

)(

)

(

)(

)

(

)(

)

1,48

9,46

843

9,90

4

20,3

951,

908,

977

454,

028

23,6

282,

339,

377

778,

491

187,

472

20,3

95

945,

568

223,

302

22,7

441,

146,

126

1,19

3,25

196

3,40

9

Furn

iture

&

office

equi

pmen

t

$’00

0

- -

234,

764

23,6

55

258,

419

12,7

94

8,66

326

2,55

0

176,

979

34,1

04

211,

083

28,5

338,

661

230,

955

31,5

9547

,336

Mot

or

vehi

cles

$’00

0

- - - -

1,82

0,50

221

3,37

48,

599

4,95

82,

037,

517

211,

764

14,8

092,

234,

472

1,61

3,97

514

7,45

24,

958

1,75

6,46

918

3,43

614

,747

1,92

5,15

8

309,

314

281,

048

Com

pute

r eq

uipm

ent

$’00

0

-

507,

071

32,2

12

539,

283

7,65

6

546,

939

393,

600

21,2

36

414,

836

20,3

48

435,

184

111,

755

124,

447

Libr

ary

book

s

$’00

0

- - - - - -

4,10

2,20

42,

994,

219

1,01

5,29

5

6,08

1,12

824

,458

5,63

0,92

7

474,

659

474,

659

6,08

1,12

8

Wor

k - i

n -

prog

ress

(WIP

)

$’00

0

- - - - - - - - -

14,8

37,6

374,

183,

955

25,3

5318

,996

,239

2,02

3,00

2

47,1

7120

,972

,070

4,33

9,59

258

0,23

525

,353

4,89

4,47

481

9,16

846

,496

5,66

7,14

6

15,3

04,9

2414

,101

,765

Tota

l

$’00

0

- -

Land

and

bui

ldin

gs in

clud

e la

nd a

t cos

t of $

386,

651,

000

(201

2: $

386,

651,

000)

.



35

Acco

unts

201

3

Unexpended donations for special projects

Projects (a) Scholarships and prizes

Projects (a) Scholarships and prizes

(a)

(b)

endowment fUnds

Balance as at August 1 Disbursements during the yearBalance as at July 31 (note 5)

14.

15.

This amount represents funds donated for projects being implemented by various departments of UWI Mona.

UWI Mona continues to meet obligations for funding of projects, scholarships and prizes as they become due.

Expenditure$’000

July 31, 2013$’000

July 31, 2012$’000

2013

Interest received$’000

New advances and

310,178336,632646,810

258,437207,033465,470

324,921323,016647,937

243,694220,649464,343

( )( )( )

359,465344,264703,729

Expenditure$’000

July 31, 2012$’000

July 31, 2011$’000

2012

Interest received$’000

New advances and

539,192357,287896,479

243,694220,649464,343

423,421233,672657,093

( )( )( )

296,5406,262

290,278

297,7121,172

296,540

2013$’000

2012$’000

( ) ( )



36

Acco

unts

201

3

Long-term LiabiLities

(i)

(ii)

(a)

(b)

16.

Long-term loans:

United States Agency for

European UnionInter-American Development Bank

National Housing Trust Loan # 1National Housing Trust Loan # 2NCB Capital Markets LimitedDevelopment Bank of Jamaica (DBJ)

Current portion of long-term loansBalance carried forward

Other long-term liabilities: Trade CreditorsDue to Cave Hill CampusDue to UHWIRetroactive salariesAccrued vacation leave

Current portion of other long-term liabilities

Total long-term liabilities

In February 1977, a loan of US$8.5 million was granted to the University of the West Indies by USAID. The purpose of this loan was the construction of certain buildings and the provision of scholarships and training on three of its Campuses. This loan is repayable in sixty-one (61) half-yearly installments, which commenced in May 1987, and bears interest at the rate of 2% per annum for the first ten years, thereafter at 3% per annum. The principal outstanding attributable to UWI Mona at July 31, 2013 was US$630,000 (2011: US$777,000).

In March 1993, the European Union granted a loan to the University of €4,692,232, the allocation of which was as follows:---

The loan is repayable in 60 half-yearly installments, which commenced June 1, 2003, and bears interest at the rate of 1% per annum. The principal outstanding at July 31, 2013 was €1,205,719 (2012: €1,261,000).

International Development (USAID)

Bank (IDB)/ Caribbean Development Bank (CDB)

€1,764,796 to the Mona Campus;€1,640,246 to the St. Augustine/Mount Hope Campus; and€1,287,190 to the Cave Hill Campus.

31

3.4855

9.854.5

NilNilNilNil

Interest Rates%

(a)(b)

(c)(d)(e)(f )(g)

(h)(i)(j)

Note

64,050162,233

573,384529,964

1,718,6871,676,748

269,1724,994,238

556,2334,438,005

363,328111,041536,927689,974

779,1042,480,374

440,2292,040,1456,478,150

69,412138,075

630,508549,740

1,231,6561,945,000

4,564,391442,305

4,122,086

175,478129,547449,573612,854749,096

2,116,548308,683

1,807,8655,929,951

-

2013$’000

2012$’000

( )

( )

( )

( )



37

Acco

unts

201

3

Long-term LiabiLities (cont’d)

(b)

(c)

(d)

(e)

(f )

16.

(cont’d)

The University also received a grant of €7,820,386 for the purpose of constructing student accommodations on three of its campuses and the Mount Hope Medical Complex.

In April 1992, the University of the West Indies entered into a loan agreement with Inter-American Development Bank (IDB) and the Caribbean Development Bank (CDB) to enhance the capacity of the University to respond to higher education needs in the fields of science and technology. The estimated total project cost was US$82.1 million. The loan is guaranteed by the Governments of Trinidad and Tobago, Jamaica and Barbados. This loan is repayable in thirty-two (32) semi-annual, consecutive and, in so far as possible, equal installments. Repayment commenced in May 2001, and the last installment is scheduled to be paid no later than April 7, 2017.

Interest accrues on the daily outstanding balance of the loan at a rate per annum for each semester determined by the cost of qualified borrowing for the preceding semester, plus a spread established by IDB. The balance outstanding attributable to UWI Mona at July 31, 2013 attributable to UWI Mona was US$5,642,000 (2012: US$7,054,000).

In April 2001, the National Housing Trust (“The Trust”) granted a loan of $584,800,458 to UWI Mona towards the construction of a new student residence, The Rex Nettleford Hall (“the Hall”). The loan shall be repaid from income earned from the operations of the Hall in semi-annual installments, over twenty five (25) years, at eight percent (8%) per annum on a graduated basis for nine (9) years, and then a fixed sum for the remaining years. The graduated loan repayments will increase by five percent (5%) for each of the first five (5) years of the repayment period. The agreement provides that the repayment of the loan principal commences after the expiration of the five (5) years. Interest is payable on a quarterly basis. With effect from July 1, 2012 the NHT Board approved a reduction in interest rate from 8% to 5% and repayment is set at a fixed amount of $4,201,643 per month to March 2028.

In June 2011, the National Housing Trust (NHT) granted a loan of $1,440,335,000 to UWI Mona towards the construction of new student accommodation at two sites on the Campus. The loan shall be repaid from income earned from the operations of the Halls in quarterly installments, over twenty five (25) years, at five percent (5%) per annum in accordance with a graduated payment mortgage basis. The agreement provides that the first installment of principal together with interest shall be due within three (3) months following the date of final disbursement.

In February 2011, UWI Mona entered into an agreement with NCB Capital Markets Limited and National Commercial Bank Jamaica Limited for a J$2,100,000,000 loan facility towards the partial financing of the construction of a complex at the Mona Campus to house the Basic Medical Sciences Departments of the Faculty of Medical Sciences. The facility involves UWI Mona issuing promissory notes under the commercial paper transactions arranged by NCB Capital Markets Limited. There was a moratorium on the principal of 12 months following the issue date. The facility attracts a financing cost of 13.75% p.a. and was repayable quarterly on a calendar quarter basis. The finance cost is inclusive of the coupon payable on the notes, with the coupon fixed at 13.25%. The facility has a final maturity of 5 years inclusive of a 12 month moratorium and is based on a 5-year amortization schedule. With effect from August 1, 2012, the facility was restructured by reducing the interest rate on both tranches from 13.75% and 13.25%, respectively, to a single rate of 9.85% and extending the maturity of the notes from 2016 to 2019. The principal outstanding at July 31, 2013 was $1,408,448,000 (2012: $1,945,000,000). The remainder represents interest capitalized at the restructuring date.



38

Acco

unts

201

3

Long-term LiabiLities (cont’d)

(g)

(h)

(i)

(j)

(k)

CapitaL grants

At beginning of year ReceiptsTransfersAmortisation (note 19)

At end of year

empLoyee benefits obLigation

The University operates two pension plans for its employees – one for academic and senior administrative staff, and the other for administrative and technical staff. In addition to pensions, certain post-employment health benefits are provided, primarily medical care.

16.

17.

18.

In December 2012, DBJ granted a loan of US$3,000,000 towards capital expenditure for the construction of a business process outsourcing facility and the purchase of related equipment. The repayment terms include a twelve (12) month moratorium on the principal and the principal amount due shall be repaid in United States Dollars in quarterly installments over ten (10) years. The loan shall be repaid at an annual rate of 4.5% and is secured by a debenture over fixed and floating assets of the business process outsourcing facility. The amount disbursed and outstanding as at July 31, 2013 amounted to US$2,649,000.

This represents long-term credit arrangements extended to UWI Mona by trade creditors. Interest is payable at a rate of 4.5% to one of the creditors and the balance is repayable over three years in 12 equal quarterly installments.

As at July 31, 2008, an amount of $185,068,000 was recorded as due to UWI Cave Hill Campus based on an agreement dated July 3, 2008. This relates to pension payments advanced by UWI Cave Hill Campus up to December 2004. Based on the agreement, the amount was equally divided amongst UWI Mona, the University Centre and UWI Cave Hill Campus and the amount herein is UWI Mona’s share. The terms of repayment have not been agreed.

This represents funds held on behalf of the University Hospital of the West Indies (UHWI) by UWI Mona for the purpose of upgrading the facilities at the hospital. The terms of repayment has not been agreed.

Consistent with an agreement made between the Government of Jamaica and its public sector workers, this represents salary arrears for the contract period 2009/2010 to 2010/2011 which will be paid over five (5) tranches. It also includes $122,176,000 for salary arrears for the contract period 2011/2012. Due to the nature of the arrangement, no interest has been imputed.

1,391,805209,891

30,283

1,571,413

-

1,018,221141,090259,755

27,261

1,391,805

2013$’000

2012$’000

( ) ( )



39

Acco

unts

201

3

EmployEE bEnEfits obligation (cont’d)

(a)

(b)

(c)

18.

Plan for academic and senior administrative staffThe plan for the academic and senior administrative staff is the Federated Superannuation Scheme for Universities (FSSU), which is a UK-based defined-contribution plan and the assets are invested primarily through a UK-based investment management company and a small portion with two life insurance companies. Membership is compulsory for eligible staff members who are not engaged in short-term, part-time or special contracts. The plan requires compulsory, joint contributions of 15% of pensionable salaries (10% by UWI Mona as employer and 5% by members). Members also have the option of voluntarily contributing up to an additional 5% of pensionable salaries.

UWI Mona has committed itself to supplementing pensions under certain circumstances. Under the Supplementation Plan, UWI Mona is obligated to top up the pension of each retiring FSSU member to 2/3 final salary, provided the member had at least 35 years service (but proportionately less for shorter service in excess of ten years). If the pension derived from all the member’s FSSU investments is less than the level up to which supplementation is triggered, that is, 2/3 of final salary, UWI Mona must meet the pension shortfall. Any person who becomes a member of the FSSU plan on or after August 1, 2005, will not be eligible for supplementation. UWI Mona has honoured all cases of supplementation that have arisen.

Plan for administrative and technical staffThis is a defined-contribution plan funded by joint compulsory contributions of 15% of pensionable salaries (10% by the University as employer and 5% payable by the employees). Sagicor Life of Jamaica Limited is the administrator and investment manager of the plan.

Post-employment benefit computationUWI Mona’s obligation for post-employment pensions and medical care is determined and accounted for as described in note 3(h), and comprises the following amounts:

Defined contribution supplementation plan (i)Post employment medical benefits (ii)Amount recognized in statement of financial position

(i)

Defined contribution supplementation plan:

Present value of unfunded obligation Unrecognized actuarial loss Recognised obligation

1,127,5141,174,6732,302,187

2,824,7681,697,2541,127,514

777,147791,393

1,568,540

3,277,4942,500,347

777,147

2013$’000

2012$’000

2013$’000

2012$’000

( ) ( )



40

Acco

unts

201

3


(c)

18.

Post-employment benefit computation (cont’d)

(i)

(ii)

Defined contribution supplementation plan (cont’d):

The movement in the liability recognized in the statement of financial position is as follows:

Liability at beginning of yearContributions paidExpense/(income) recognized in surplus or deficitLiability at end of year

The expense/(income) recognized in surplus or deficit is made up as follows:

Current service costInterest on obligationPast service cost – vested benefitsPast service cost – non-vested benefitsNet actuarial loss recognized in year

Post-employment medical benefits:

Present value of unfunded obligationsUnrecognized actuarial lossAmount recognized in statement of financial position

The movements in the obligation recognized in the statement of financial position are as follows:

Liability at beginning of yearContributions paidExpense recognized in surplus or deficitLiability at end of year

777,147149,356499,723

1,127,514

55,286250,984

28,71933,166

197,900499,723

1,743,584568,911

1,174,673

791,39337,002

420,2821,174,673

1,838,320174,479886,694777,147

119,012377,194

1,466,23433,166

116,500886,694

1,289,084497,691791,393

663,02618,777

147,144791,393

2013$’000

2012$’000

2013$’000

2012$’000

2013$’000

2012$’000

2013$’000

2012$’000

( )

( )

( )

( )

( )

( )

( )( )

( )( )



41

Acco

unts

201

3


(c)

18.


(ii)

(iii)

(iv)

Post-employment medical benefits (cont’d):

The expense recognized in surplus or deficit is made up as follows:

Current service costInterest costNet actuarial loss recognized in yearPast service cost-vested benefits

Principal actuarial assumptions at reporting date:

Discount rateFuture salary increasesMedical claims growth

Assumed medical claims growth trend can have a significant effect on the amounts recognized in surplus or deficit. A one percentage point change in the assumed healthcare costs trend rates would have the following effects:

Effect on the aggregate service and interest cost

Effect on the defined benefit obligation

Included in central expenditure are amounts charged/(credited) for the foregoing benefits, as follows:

Pension supplementation scheme [note 18(c)(i)]Post-employment medical care [note 18(c)(ii)]Amount recognised in surplus or deficit

47,05293,812

6,280

147,144

73,348

155,049

886,694147,144739,550

-

46,625131,721

21,635220,301420,282

109,721

159,845

499,723420,282920,005

2013$’000

2012$’000

2013$’000

2012$’000

( )

( )

( )

( )

2013%

2012%

10.06.0

10.0

10.57.0

10.0

Onepercentage

point increase$’000

Onepercentage

point decrease $’000



42

Acco

unts

201

3


(c)

(d)

miscEllanEous incomE

Amortization of capital grant (note 17)Student services/caution money/parking stickers/ID RecoveriesAdministration and library share from centreCentre’s share of central expensesOther

18.

19.


(v)

UWI Mona’s contributions to the defined contribution plan for the year ended July 31, 2013 aggregated $723,778,000 (2012: $783,013,000).

Historical information:

(a)

(b)

Defined contribution supplementation plan:

Present value of the defined

Experience adjustment

Post-employment medical benefits:

Present value of the defined

Experience adjustment

benefit obligation

arising on plan liabilities

benefit obligation

arising on plan liabilities

30,28329,74316,00425,201

240,81381,626

423,670

27,26127,23155,30025,200

178,55336,190

349,735

2013$’000

2012$’000



1,654,875

613,590

3,647,203

77,267

3,557,327

464,830

3,277,494

439,425

2,824,768

324,943

2009$’000

2010$’000

2011$’000

2012$’000

2013$’000

( )( )( )( )

43

Acco

unts

201

3

364,026

52,173

689,472

67,753

855,783

78,223

1,289,084

90,025

1,743,584

92,855

2008$’000

2009$’000

2010$’000

2012$’000

2013$’000

( )( )

Central expenditure

Computer and software license feesInsuranceLight and powerMiscellaneousOffice and generalProfessional, consulting, graduation and other expensesRepairs and maintenance - Estate Mgmt. Dept.Security and fire protectionStudent facilities and amenitiesTravelling and motor transportTuition fee exemption - staff and dependentsWater ratesLess: Centre’s share of central expenditure

FinanCe Costs

Interest and other expenses:

staFF Costs

Salaries and incentive payStatutory payroll contributionsPension plan contributionsPost employment benefit costs:

Other

taxation

UWI Mona is an approved educational institution for the purpose of Section 13 (1)(q) and Section 25(c) of the Income Tax Act (the Act) and has been granted exemption from income tax under Section 12(h) of the Act. Under the General Consumption Tax (GCT) Act, the University is entitled to acquire goods and services at a zero rate of tax; in addition, its own services are generally exempt from GCT under the provisions of item 12 Part II of the Third Schedule to the GCT Act.

20.

21.

22.

23.

Fixed loansBank charges and other

Supplementation arrangements [note 18(c)(iv)]Medical care [note 18(c)(iv)]

80,369103,441687,326

50,713431,687217,235343,629302,930173,407100,202157,714157,529240,813

2,565,369

53,24762,937

116,184

7,221,556272,831307,853

499,723420,282

32,2038,754,448

14,93390,738

483,00796,045

340,529171,962336,500232,499155,617

71,505137,644102,528178,553

2,054,954

213,78232,883246,66

6,727,100231,321300,069

886,694147,144136,000

6,654,940

2013$’000

2012$’000

2013$’000

2012$’000

2013$’000

2012$’000

( ) ( )

( )



44

Acco

unts

201

3

Financial risk management

Overview

A financial instrument is any contract that gives rise to a financial asset of one enterprise and a financial liability or equity instrument of another enterprise. For the purpose of the financial statements, financial assets have been determined to include cash and cash equivalents, short-term investments, due from related parties, accounts receivable and long-term receivables. Financial liabilities have been determined to include accounts payable and accruals, due to related parties, short-term loans and long-term liabilities.

UWI Mona has exposure to operational risk and the following risks from its use of financial instruments:

(i)(ii)(iii)

This note presents information about UWI Mona’s exposure to each of the above risks and its objectives, policies and processes for measuring and managing risk.

The UWI Mona Campus Council has the overall responsibility for the establishment and oversight of UWI Mona’s risk management framework.

UWI Mona’s risk management policies are established to identify and analyze the risks it faces, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and UWI Mona’s activities.

An Audit Committee has been appointed to oversee how management monitors, and is in compliance with, UWI Mona’s policies and procedures and reviews the adequacy of the risk management framework, in relation to the risks faced by UWI Mona. The Audit Committee is assisted in its functions by UWI Mona’s Management Audit Department, which undertakes periodic reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

(i)

24.

Credit riskLiquidity riskMarket risk

Credit risk:

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. Credit risk arises principally from receivables from students, government receivables, cash and cash equivalents and short-term investments.

Management of credit risk relating to different types of financial assets

Management establishes an allowance for impairment that represents its best estimate of losses in respect of receivables. Management’s policy is to provide for balances based on past default experience, current economic conditions and expected recovery.



45

Acco

unts

201

3

Financial risk management (cont’d)

Overview (cont’d)

(i)

24.

Credit risk (cont’d):

Management of credit risk relating to different types of financial assets (cont’d)

Due from West Indian Governments

UWI Mona’s exposure to credit risks relating to these receivables is influenced by the ability of the Governments in each territory to pay. Most of these amounts are current and are the subject of regular and vigorous follow-up. Management does not consider any of these amounts to be impaired.

Due from related parties and other receivables

UWI Mona’s exposure to credit risk relating to these receivables is influenced by each party’s ability to pay. These amounts are all current and not considered impaired.

Cash and cash equivalents and short-term investments

Cash and cash equivalents, investments securities are placed with reputable financial institutions, who are appropriately licensed and regulated, for short-term periods, and management believes these institutions have minimal risk of default.

Student receivables

UWI Mona’s exposure to credit risk on student receivables is influenced mainly by the individual characteristics of each student and their ability to pay.

Student receivables are the only financial assets with significant amounts past due. Student receivables are deemed past due when the payments are not received on the contractual payment dates. The majority of the past due accounts receivable are not considered impaired. According to UWI Mona’s policy, a provision of up to 50% of balances over 365 days is made at the end of each year, except where arrangements are in place to settle those overdue balances.

The ageing of the student receivables (note 7) at the reporting date is summarized as follows:

Past due 0-120 daysPast due 121-365 daysMore than one year

2013

88,062255,855478,411822,328

Gross$’000

2012

118,719118,719

Impairment$’000

--

126,634265,104286,092677,830

Gross$’000

194,281194,281

Impairment$’000

--



46

Acco

unts

201

3


Overview (cont’d)

(i)

(ii)

24.

Credit risk (cont’d):

Management of credit risk relating to different types of financial assets (cont’d)

Liquidity risk:

Liquidity risk, also referred to as funding risk, is the risk that UWI Mona will encounter difficulty in raising funds to meet commitments associated with financial instruments. Liquidity risk may result from an inability to sell a financial asset quickly at, or close to, its fair value. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and ensuring the availability of funding through an adequate amount of committed facilities. The management of UWI Mona manages this risk by keeping a substantial portion of its financial assets in liquid form, and having overdraft facility in place.

The following tables present the contractual maturities of the non-derivative financial liabilities, including interest payments and excluding the impact of netting agreements.

Accounts payable

Due to related partiesShort-term loanLong-term liabilities

Student receivables (cont’d)

The movement in the allowance for impairment in respect of student receivables during the year was as follows:

Balance at beginning of yearAmount recognized, netBalance at end of year

Based on past experience, management believes that no impairment allowance is necessary in respect of staff receivables not past due, due from related parties and other receivables.

There was no significant concentration of credit risk in any counterparty and the maximum exposure to credit risk is represented by the carrying amount of each financial asset. There was no change in how UWI Mona manages credit risk during the year.

and accruals

118,71975,562

194,281

93,28525,434

118,719

2013$’000

2012$’000

6,308,4986,308,498

1,120,6081,120,608

2,460,402506,674

1,114,6961,184,5725,266,344

2,460,402506,674

1,114,6968,613,678

12,695,450

2,460,402506,674

1,050,2607,474,612

11,491,948

---

---

Over2 years$’000

1-2years$’000

Less than1 year$’000

ContractualCashflow

$’000

CarryingAmount

$’000

2013



47

Acco

unts

201

3


Overview (cont’d)

(ii)

(iii)

24.

Liquidity risk (cont’d):

Accounts payable

Due to related partiesShort-term loanLong-term liabilities

Market risk:

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect UWI Mona’s income or the value of its holding of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. UWI Mona has no formal risk management mechanism to address market risk; however, the monitoring of such exposure comes under the purview of an Investment Committee.

(a)

and accruals

Interest rate risk:

Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates.

Interest rate risk is affected where there is a mismatch between interest-earning assets and interest-bearing liabilities which are subject to interest rate adjustments within a specified period. UWI Mona manages this risk by consistently analysing and adjusting its portfolio of interest-earning assets, depending on the direction in which interest rates are going in the opinion of management.

UWI Mona contracts other financial liabilities, primarily short-term loans and supplier credit at floating interest rates or on interest-free terms, which are fixed in advance but which may be varied by appropriate notice by the lenders.

Interest bearing financial assets is primarily represented by cash and cash equivalents, short-term investments, and staff loans, which are contracted at fixed and floating interest rates for the duration of the term.

5,889,4375,889,437

1,101,9911,101,991

1,975,279515,795147,924

1,325,5073,964,505

1,975,279515,795147,924

8,316,93510,955,933

1,975,279515,795142,500

6,680,9399,314,513

---

---

Over2 years$’000

1-2years$’000

Less than1 year$’000

ContractualCashflow

$’000

CarryingAmount

$’000

2012



48

Acco

unts

201

3


Overview (cont’d)

(ii)

24.

Market risk (cont’d):

(a) Interest rate risk (cont’d):

At the reporting date, the interest profile of UWI Mona’s interest-bearing financial instruments as represented by their carrying amount was as follows:

Fixed rate instruments:

Variable rate instruments:

Cash flow sensitivity analysis for variable rate instruments

A change of 200 (2012: 100) basis points in interest rates would have affected loss for the year by J$379,000 (2012: J$75,000). This analysis assumes that all other variables, in particular, foreign currency rates, remain constant. The analysis is performed on the same basis as for 2012.

Fair value sensitivity analysis for fixed rate instruments

UWI Mona does not carry any fixed rate financial instruments at fair value through profit or loss or available-for-sale. Therefore, a change in interest rates at the reporting date would not affect the value of its financial instruments.

Financial assetsFinancial liabilities

Financial liabilities

841,8866,154,7465,312,860

18,944

847,0064,706,8913,859,885

7,452

2013$’000

2012$’000

2.50 - 15.51.00 - 9.85

27.75

Interest Rates%

( ) ( )( ) ( )

( ) ( )



49

Acco

unts

201

3


Overview (cont’d)

(ii)

24.


(b) Foreign currency risk:

Foreign currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates.

UWI Mona is exposed to foreign currency risk primarily on purchases and borrowings that are denominated in a currency other than its functional currency. UWI Mona ensures that the net exposure is kept within reasonable limits by monitoring and, where necessary, adjusting its exposure.

UWI Mona manages foreign exchange exposure by maintaining adequate liquid resources in intervening currencies and by managing the timing of payments of foreign currency liabilities.

At the reporting date, UWI Mona’s exposure to foreign currency risk was as follows:

Cash and cash equivalentsShort-term investmentsAccounts receivableDue from related partiesAccounts payableLong-term loansDue to related partiesNet (exposure)/asset

Cash and cash equivalentsShort-term investmentsAccounts receivableDue from related partiesAccounts payableLong-term loansDue to related partiesNet (exposure)/asset

985

1,261

3,6451,399

Bds$’000

--

--

2,474

565

3,039

TT$’000

--

---

255

13

40

Stg£’000

--

--

1,206

1,206

Euro€’000

-----

-

1,1431,403

658

1,279 13,932

12,007

US$’000

-

-( ) ( )

( )

( ) ( )

( )

( ) ( ) ( )

2013

236

969

4,1402,935

Bds$’000

--

--

89

596

685

TT$’000

--

---

120

8

112

Stg£’000

---

--

1,261

1,261

Euro€’000

-----

-

7021,221

121

2,387 9,342

9,685

US$’000

-

-( ) ( )

( )

( ) ( )

( ) ( ) ( )

2012



50

Acco

unts

201

3


Overview (cont’d)

(ii)

(iv)

Fair values OF Financial instruments

Fair value amounts represent estimates of the arms length consideration that would currently be agreed between knowledgeable, willing parties who are under no compulsion to act and is best evidenced by a quoted market price, if one exists. UWI Mona does not carry any financial instruments at fair value. Most of UWI Mona’s financial instruments lack an available trading market; therefore the fair values disclosed may not necessarily be indicative of the amounts realizable in an immediate settlement of the instruments.

The fair value of cash and cash equivalents, due from/to related parties, accounts receivable and accounts payable is assumed to be their carrying values due to the short-term nature of these instruments.

24.

25.


(b)

(c)

Capital management:

UWI Mona’s policy is to maintain a strong capital base so as to maintain stakeholders’ confidence and to sustain future development of the University. Capital consists of capital and other reserves. UWI Mona is not subject to any externally imposed capital requirements and there were no changes in how capital was managed during the year.

UWI Mona’s objective is to manage operational risk so as to balance the avoidance of financial losses and damage to its reputation with overall cost effectiveness and to avoid control procedures that restrict initiative and creativity.

Foreign currency risk (cont’d):

The rates of exchange for the Jamaica dollar against the main currencies for which it is exchanged were as follows:

Sensitivity analysis:

A 5% (2012: 5%) change in foreign currency rates against the Jamaica dollar would have affected loss for the year by $69,957,000 (2012: $55,483,000). This analysis assumes that all other variables, in particular interest rates, remain constant.

TT$1.00BD$1.00US$1.00EURO (€) 1.00£1.00

=====

15.829150.7720

101.6085134.5561154.8557

J$J$J$J$J$

July 31, 2013

TT$1.00BD$1.00US$1.00EURO (€) 1.00£1.00

=====

13.976044.704489.3815

109.4586139.6236

J$J$J$J$J$

July 31, 2012



51

Acco

unts

201

3

Fair values oF Financial instruments (cont’d)

The fair value of short-term investments is as disclosed in note 5(i). The fair value of long-term receivables and long-term liabilities could not be readily determined as there are no instruments with similar risks and the instruments are not all at market terms.

capital commitments

As at the reporting date, UWI Mona was committed to incur capital expenditure of $533,000,000 (2012: $1,696,250,000).

25.

26.



52

Acco

unts

201

3

Cover Photos:- Top right: The new Marlene Hamilton Hall of Residence- Bottom left: Elsa Leo Rhynie Hall of Residence

CC(M)P.3 2013/2014 - University of the West Indies1).pdf · Fire Inoe Fire Inoe ive Yer nysis...

Documents

Transcript of CC(M)P.3 2013/2014 - University of the West Indies1).pdf · Fire Inoe Fire Inoe ive Yer nysis...