reading

Reading update

Published by Anonymous (not verified) on Fri, 22/02/2019 - 3:43am in

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Debt, reading

Although Reading has still not provided details of the £120million its owes to the National Institute for Research in Dairying Trust, for which it acts as sole trustee, a couple of letters and a blog post have provided a bit more insight.

Reading’s UCU branch has published a letter from the acting vice-chancellor, Robert van der Noort, which argues that the £120m is not a debt.  I was told by Reading press office that the money owed to the trust is a loan and that interest is payable.  (As an aside, I first contacted Reading in mid-January and spoke to them at length over a week before publication, when I gave them a list of questions. These were reiterated in the email to which the letter refers. They have still not answered these.)

Following a staff vote of no confidence, van de Noort published an Open Letter on Reading’s website. It contained the following paragraph:

Undoubtedly, some past activities and investments, such as our Malaysia campus, have not performed as well as we would have liked. Others have given a positive financial return for the institution, which we have reinvested in necessary improvements to our campus environment, teaching and research infrastructure and student experience – including the redevelopment of a modern library. Despite views to the contrary, the NIRD land sale is one of these and all considerable net proceeds of the sale will over time be reinvested in research in food and agriculture at the University. (my emphasis)

The future of the loss-making Malaysia campus is now under review. More pertinent to our concerns, Reading management here appears to admit that money coming from the trust should have been spent on research relevant to the trust’s objects.

The key point is that Reading does not have that money currently to hand and “over time” funds will have to come from elsewhere to match the £120m. That has financial implications for university, despite what has been said so far and irrespective of arguments over what exactly constitutes a “debt”.

In a blog originally intended for wonkhe but appearing today at Times Higher Education, van der Noort expends a lot of words saying not very much but does confirm the outlines of what we reported:

The article in The Guardian highlighted an issue that we have already dealt with, relating to the sale of land belonging to a charity for which the university was both trustee and beneficiary. Acting on the best advice available, we took steps last year to resolve this, and there are no wider implications for the university group’s finances. This concerned a historical issue of governance that needed to be put right.

Reading have as yet not explained how the matter has been resolved (if it has – we have yet to hear from Office for Students) and, again, the article makes no mention of the loan.

 

 

Sunday, 17 February 2019 - 2:01pm

Published by Matthew Davidson on Sun, 17/02/2019 - 2:01pm in

This week, I have been mostly reading:

Has Reading milked its dairy trust?

Published by Anonymous (not verified) on Tue, 12/02/2019 - 3:04am in

Back in December, I made an offer via Twitter to look over the accounts of any universities where academics and/or students had any concerns about what was happening.

A member of staff at Reading approached me. A quick look at the latest financial statement (for 2017/18) flagged up a few issues. The main one was contained in Note 19 “Creditors: Amounts falling due within one year”.

reading amounts

It looked as if the University was committed to paying £120m to the trusts for which it acts as sole trustee.

That seemed unlikely. It was not as if the University was in a position to produce such sums and anyway the figure included for 2017 indicated that a slightly smaller sum had been in the same category in the previous financial year.

The accounts offered no explanation. I would have expected to see something either in this Note or in that devoted to “Related Party Transactions”. This prompted me to look back through Reading’s previous financial statements.  I had to go all the way back to 2014/15 to see the first clue:

“Included in other creditors is an amount of £40.9m owing to the University’s endowment trusts (2014: £13.2m). This total increased significantly in the year due to land disposals by the trusts.”

In subsequent years, the amount owed to the trusts increased rapidly, climbing to £87m and then the £107m of the 2016/17 accounts. What I now know is that this reflects the manner in which the proceeds arrived from the sale of land at Shinfield belonging to the National Institute for Dairying Research Trust: £20m in 2014, £50m in 2015 and a further £50m in instalments over the next 3 years.

The University spent these sums and noted that it owed NIRDT the £120m. In a statement issued on Saturday in response to our Guardian story the University argues that the sales were fully documented in its accounts.

“The University is confident that it has responded appropriately to the issues relating to the sale of land that formed part of the assets of the National Institute for Research in Dairying trust. The details have already been set out in the University’s published financial statements.” (9 February 2018)

I don’t disagree. But what is missing from all recent financial statements is any account of the loans, which the University says were made to itself by the Trust. The University has nowhere disclosed the terms of the loan and, although it told me interest was payable, it was not able to say what interest was due and indeed whether any had been paid.  The terms of the loans should have been published in the accounts and declared in the notes devoted to “related party transactions”.

There are prima facie conflicts of interest when a trustee is also the beneficiary of a trust. In this case, Reading appears to have accepted that it should have acted differently …

“The appropriate governance arrangements are now in place relating to the university’s management of the trust …” (my emphasis)

but is still being less than clear regarding how the matter is going to be resolved. I was told that two independent panels with legal representation have been convened: one to represent the interests of the trust, the other, the university. And that the university has also informed the regulators of what Office for Students called “a reportable event”. OfS said it had received this notification “recently”, but would not give any more specific timeframe.

There is obviously a broader question about what this means for the university’s finances and whether such a loan should be thought of as a “real debt”. I take that to be part of what needs to be resolved. Since the trust is designed to fund research at Reading, it is never going to be in trust’s interests to precipitate a brutal reckoning, but it seems clear that the loan is on generous terms (rolled over and increased each year) and isn’t being used solely for agricultural research. This indicates two sets of questions: was the conflict of interest properly managed? should the loan have been approved and extended annually?

Setting those questions aside, and returning to the finances: it is clear that the university has used proceeds from the sales to cover over problems in the last few years (deficits from ordinary activities of c. £20m in each of the last accounting periods).* It is not all clear what additional pressure may be put on the university’s position when the matter is fully resolved. (If anyone knows more about trust law and potential precedents, feel free to comment below).

More broadly, there is a question regarding how appropriate it is to “consolidate” the accounts of related trusts into university statements. NIRDT accounts do not appear to be published. Since it is a trust connected to an “exempt charity” , its accounts do not appear on the Charity Commission website; since it is not a company, there is nothing at Companies House. Reading does produce an annual statement regarding the investments held by another of its trusts, the Research Endowment Trust, but does nothing similar for NIRDT. Does anything prevent OfS from requiring universities to also publish the accounts of such trusts? (Again, if anyone with more knowledge in this area wants to comment, please do so below).

Judging from my inbox, this story has wider pertinence. My offer is still there. Please email if you want me to have a look at something.

*update: while over £110m was spent on acquiring fixed assets.

Sunday, 3 February 2019 - 5:05pm

Published by Matthew Davidson on Sun, 03/02/2019 - 5:05pm in

This week, I have been mostly reading:

The Point and Selection of Readings in Introductory Philosophy Courses

Published by Anonymous (not verified) on Sat, 02/02/2019 - 1:21am in

“What role should readings play at the lower undergraduate level in a philosophy class?”

That question was sent in by a reader, who explains the motivation for the question:

During my own undergraduate years, I did readings for some classes and not others. I never found readings especially helpful in understanding lectures. In fact, I usually have to use what I learned in lecture to understand what I read (that is, I can only understand something if I read after class rather than before). I remember a lot of what I learned in class, and not at all what I read, except how it was really hard to not fall asleep while I mindlessly turned the pages. Granted, my case might not be general: I might’ve had a different learning style than others; I might’ve had profs who were especially good at lecturing and bad at assigning readings, etc. So, my question is: what should the act of reading accomplish in intro-level philosophy classes?

We could add to the inquiry: how does your view of the role and aims of readings affect which readings you have your students do, how much reading you assign, what reading-related work you ask students to do, and so on.

Related: “Why Students Aren’t Reading


Book sculpture by Su Blackwell

The post The Point and Selection of Readings in Introductory Philosophy Courses appeared first on Daily Nous.

Sunday, 27 January 2019 - 4:33pm

Published by Matthew Davidson on Sun, 27/01/2019 - 4:33pm in

This week, I have been mostly reading:

Sunday, 20 January 2019 - 5:34pm

Published by Matthew Davidson on Sun, 20/01/2019 - 5:34pm in

This week, I have been mostly reading:

Sunday, 13 January 2019 - 5:29pm

Published by Matthew Davidson on Sun, 13/01/2019 - 5:29pm in

This week, I have been mostly reading:

Sunday, 6 January 2019 - 3:14pm

Published by Matthew Davidson on Sun, 06/01/2019 - 3:14pm in

This week, I have been mostly reading… not cartoons, for a change:

Sunday, 30 December 2018 - 6:08pm

Published by Matthew Davidson on Sun, 30/12/2018 - 6:08pm in

This week, I have been mostly reading:

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