NOTES TO THE ACCOUNTS
NOTE 14 – INVESTMENT IN JOINT VENTURES Peninsula College of Medicine and Dentistry The Peninsula College of Medicine and Dentistry (PCMD) is not a legal entity in its own right – it is a joint arrangement entered into by the University of Exeter and the University of Plymouth. A 50% share of the income, expenditure and balance sheet items of the “Community Chest” of PCMD (excluding research) is included within the income and expenditure account and balance sheet of each of the universities. The items comprising the externally funded research activity of PCMD are included within the statements of the University employing each project’s Principal Investigator. PCMD’s principal place of business is The John Bull Building, Tamar Science Park, Research Way, Plymouth. See note 37 for a detailed analysis of PCMD, representing 100% of the Colleges activities, results, assets and liabilities. Tremough Campus Services The University holds a 50% share of Tremough Campus Services (TCS), a company limited by guarantee, having no share capital and for which exempt charitable status has been obtained. TCS is a joint venture company owned equally by the University and University College Falmouth. TCS has been established to operate student and commercial services for the Combined Universities in Cornwall campus at Tremough in Penryn under a combined services agreement and commenced trading in August 2004. Tremough Development Vehicle Limited (TDV) is a wholly owned subsidiary of TCS. It has been established to provide the construction of the main campus for the Combined Universities in Cornwall project based at Tremough in Penryn. TCS and TDV have financial years that end on 31 July. INTO University of Exeter LLP The University holds a 100% share of Exeter ISC Limited. Exeter ISC Limited, in turn, holds a 50% share of INTO University of Exeter LLP, a limited liability partnership. INTO University of Exeter LLP is a joint venture partnership with INTO University Partnerships Limited and the remaining 50% share is owned by INTO Exeter Limited, a wholly owned subsidiary of INTO University Partnerships Limited. INTO University of Exeter LLP was formed in December 2006 and operates from the University of Exeter’s Streatham Campus. Its principal activity is the provision of English language and pre university foundation, diploma and pre-masters’ courses. Its principal place of business is INTO Building, Stocker Road, Exeter EX4 4PY. Exeter ISC Limited and INTO University of Exeter LLP have financial years that end on 31 July. Both the TCS and INTO University of Exeter LLP arrangements are treated as joint ventures and are accounted for using the gross equity method, such that 50% of each of the companies net equity (gross assets less gross liabilities) are included in the consolidated balance sheet of the University and 50% of their net income is reported in the University’s consolidated income and expenditure account. Both companies have entered into a gift aid arrangement to distribute surpluses arising on their activities to the University and joint venture partners accordingly.
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UNIVERSITY OF EXETER:
F I N A N C I A L S TAT E M E N T S F O R T H E Y E A R E N D E D 3 1 J U LY 2 0 1 1