Report on the Previous Year’s Finances and Annual Report

The University of Toronto Mississauga (UTM) Annual Report 2018/2019, along with the accompanying financial statements, is now available on our website. This document provides information on the university’s performance during the fiscal year ending June 30, 2019.

In addition, we are pleased to announce that UTM has received accreditation from the Canadian Association of Accredited Registrars & Course Providers (CARC). CARC accredits registrar programs accredited by the Council of Ontario Universities (COQU), including those offered by UTM.

Understanding our finances

We publish these statements every year because it helps people understand how we spend money. They show what we earn, what we pay out, where we invest, how much tax we pay and how much we save.

This is the most up to date version of the statement available. If you would like to see previous versions please contact us.

If you would like to receive an email notification whenever we release a new financial report, please sign up here.

Our accounts

We publish annual accounts each year. They include all of our activities, including income and expenditure. We must submit an annual return to the Government’s Ousted body.

Income, expenditure and deficits

The income statement provides information about our financial position. This includes revenue, expenses, assets and liabilities. Revenue consists of money received from students paying tuition fees, grants and charitable donations. Expenses include costs associated with running the university such as wages, rent, utility bills etc. Assets consist of buildings, equipment and land. Liabilities include debts owed to suppliers and banks.

We show the underlying deficit because it helps us understand whether we are making a profit or loss. An underlying deficit indicates that there is a shortfall between spending and income. If we had no underlying deficit, we would be able to cover all of our spending with our income.

A reconciliation of the underlying deficit gives a breakdown of where the difference came from. In the case above, the underlying deficit increased due to a large increase in pension credits in the previous year.

What this means

The University of London Union (Goldsmiths) has voted to strike over plans to cut teaching hours and reduce funding for students. The union says it is “unable to accept cuts to our core services”.

A deficit of £12.7 million is unsustainable for a university like ours, even if the underlying amount is £6.5 million. This is why we are implementing a recovery plan that will see us return to balance within three years.

Having a surplus allows us to reinvest in our students and staff, supporting those most in need. Our investment in student support includes free food for students every day, free laundry facilities, free access to counselling services and free travel passes for students living away from campus.

We want to make sure that everyone who studies here receives the best possible education, regardless of where they live.

Where our money comes from

We are a small team based in London. We work across different sectors including digital marketing, web design, social media management, video production and PR.

Our mission is to provide high quality, affordable services to businesses of all sizes. We believe in transparency, honesty and hard work.

We receive funding from government agencies, charitable foundations and individual donors.

Our research is funded through competitive grant schemes and contracts.

Tuition fees cover most of the costs of running our courses.

How we spend our money

We’ve been making videos about the world of digital marketing since 2011. In 2016, we launched our very own YouTube channel where you can find out more about us, our work and our clients.

Here are some facts about Digital Marketing London:

• We work across many different industries including FMCG, Financial Services, Insurance, Technology, Media, Retail…

• We help businesses grow online and make sure they reach their full potential.

• We use video, social media, web design and development, paid advertising and content creation to do this.

• We have over 200 team members working in offices around the UK and internationally.

• We love creating engaging campaigns that deliver great results.

Other types of spending

We spend around £40m each year on education, making us one of the largest educational institutions in London. This money goes towards everything from supporting our students to providing specialist equipment and research opportunities.

Over the next few months we are investing over £1bn into our estate – including some significant capital projects. But it’s important to remember that universities don’t just build buildings; they provide a range of services and support.

Our investment strategy aims to generate strong financial performance over the long term. In fact, since 2010, we have outperformed the market by nearly 5% per annum. And while we continue to make good progress, there is still much work to do.

In 2017/18, we invested £2.5bn in our estates, £3.8bn in student accommodation and £3.6bn in academic programmes. These numbers represent increases in real terms of 12%, 16% and 11% respectively compared to 2016/17.

But while these figures show how well universities are performing, they don’t tell the whole story. For example, we know that many universities are struggling to find enough funding to keep up with demand. So what else does a university actually spend its money on?

The answer is simple: we spend around £40m a year on education, which represents about 10% of total revenue.

£40 million spent on education equates to approximately 4% of our annual turnover. This figure doesn’t include the cost of running our libraries, museums, galleries, sports centres and theatres. Nor does it include the millions of pounds we spend on our catering and food services, cleaning and maintenance, IT systems, security and fire safety.

Income

The latest figures from the Higher Education Statistics Agency show that universities are receiving record amounts of money from the government – and it’s been like this for some time now. Last year, the total amount of funding given out by the government was £1.2bn, up from £976m in 2012. This equates to around 10% of the annual budget of most universities.

Meanwhile, inflation rates continue to rise across the board, meaning that there is less money to go round. For example, student numbers have increased by over 20% since 2010, while the number of undergraduate places has risen by just 7%. As a result, average tuition fees have gone up too.

While the increase in funding isn’t necessarily good news, it does mean that universities are able to offer more courses and provide more opportunities for students. However, the fact that there is still a gap between what universities spend on teaching and research compared to what they earn in revenue suggests that universities could do even more to cut costs and make savings.

For example, the University of Liverpool has recently announced plans to axe 2,500 jobs and close down three campuses. This move will save the university £30 million per year.

Expenditure

The UK economy grew faster than expected in the third quarter of 2017, according to figures published today by the Office for National Statistics (ONS). Gross domestic product (GDP), the total value of goods and services produced within the UK, expanded by 0.6% during the three months to September 2017, up from 0.4% growth recorded in Q2. This represents the fastest quarterly expansion since early 2013. A further reading of the ONS data showed that GDP per capita – a measure of living standards – rose by 2.9% over the same period, the highest level since 2012.

Commenting on the latest economic news, Andrew Sentance, Chief Economist at PwC, said: “These are encouraging signs that the UK economy continues to grow strongly. However, there remain risks to the outlook including uncertainty around Brexit negotiations, rising interest rates and the possibility of a no deal outcome.”

According to the ONS, output in the construction sector rebounded sharply following a decline in the second quarter, growing by 4.8%. Manufacturing activity continued to expand, although at a slightly slower pace. Services industries saw strong growth, driven by demand for professional services. Retail sales remained flat, while wholesale trade contracted due to declining imports.

Other key statistics from the ONS report included:

• Real household disposable income, excluding housing costs, grew by 3.3%, the largest increase since 2011.

• Average weekly earnings, adjusted for inflation, increased by 2.9%, the strongest rise since 2009.

• Total employment fell by 23,000 in the three months to September, the biggest drop since January 2008.

Deficit

Income includes tuition fees and other revenues streams. Expenses include salary and benefits, rent, utility bills, maintenance, insurance and other costs.

A deficit indicates that there is more money coming out than what is being spent.

An underlying deficit is a measure that compares the amount of profit the college makes to its expenses.

We had a significant fall in our income due to Covid 19

Spending increased due to a large tax credit in the previous year

The underlying deficit is still negative.

Importance of cash flow

Cash flow is an essential element in all universities, including Goldmiths. During the pandemic, our cash balance fell by £2.3m to £18.9m. This is because of reduced income. Although we are receiving some funding from the government, it is insufficient to cover our costs. We must demonstrate to the Higher Education Funding Council for England (HEFCE) that we have sufficient cash flow to operate.

We are working hard to ensure that students continue to receive support during this period. However, there are no guarantees that this will happen. Therefore, we urge you to consider how much money you might need to pay for tuition fees and living expenses over the next few months. If you do not know what you will require, please contact us.

Cash flow

In our latest update we are providing you with information about how much money we have left over after paying out dividends and buying shares. This is called “cash flow”. In addition, we provide you with information about the number of shares outstanding.

Frequently Asked Questions

What Are the Primary Financial Statement Types?

The three main types of financial statements are the balance sheets, the income statements, and the cash flow statements. Together, these three statements show the assets and liabilities, the revenues and costs, and the cash flows of a business. They provide information about how much money a business has and what it spends it on.

Balance Sheets

A balance sheet lists a company’s total assets and total liabilities. Assets include things like land, buildings, equipment, inventory, and accounts receivable while liabilities include things like loans, mortgages, bonds, and taxes owed. A balance sheet does not list a company’s shareholders equity because shareholders do not borrow money; rather, they invest in companies and receive dividends based on profits.

Income Statement

An income statement reports a company’s revenue and expenses over a specific period of time. Revenue is basically sales, whereas expenses includes everything from rent to salaries to marketing to advertising. An income statement also reports a company’ s net profit or loss. Net profit is calculated by subtracting expenses from revenue.

Cash Flow Statement

A cash flow statement provides information about a company’s sources of funds and uses of those funds. Sources of funds include both earned and unearned income. Unearned income includes interest payments, rents, dividends, and royalties. Earned income refers to money received from customers in exchange for goods or services. Uses of funds include paying off debt, buying inventories, and making capital investments.

What Are the Most Important Financial Statement Items?

A financial statement is a report that provides information about a particular organization’s finances. This includes income statements, balance sheets, and cash flow statements. These reports provide detailed information about how much money a company makes, spends, invests, pays out, and receives. They also show what assets it owns, debts it owes, and equity it holds.

The main things you want to look for in a financial statement include revenue, expenses, net income, capital expenditures, and total assets. Revenue is the amount of money the company received during the period covered by the financial statement. Expenses are the money spent to run the business. Net income is the difference between revenue and expenses. Capital expenditures are everything related to buying equipment, building facilities, paying off loans, etc., while total assets are everything owned by the company. Finally, total liabilities are the money owed to people outside the company, such as banks, suppliers, employees, etc.