Mr. Seamus McCarthy:

The total income of the University of Limerick group for the accounting year 2021-2022 was just over €352 million. A total of €117 million of this comprised recurrent State grants and pension funding. Academic fees amounted to €124.4 million, with 30% of this received directly from the Higher Education Authority. Research income recognised in the year was €36 million, including more than €26 million from State sources. Other operating income of €56 million was derived from a range of sources, with €20.4 million coming from the rental of student accommodation. Total expenditure of the group for the year was €341 million, and pay and pension costs accounted for €236 million of this. The group surplus for the year was €10.8 million, an increase of €2.9 million when compared with the previous year.

I issued a clear audit opinion on the 2021-2022 financial statements. The audit report was signed on 12 May 2023.

The planned development of additional student accommodation in a 20-house, 80-bed scheme at Rhebogue is disclosed in the president’s report and in the annual statement of governance attached to the 2021-2022 financial statements. The governance statement refers to the scheme being available for use in September 2023 but does not disclose the associated acquisition cost, which was likely to be a 2022-2023 transaction. The contract cost was not included in disclosure note 25 concerning capital commitments that existed at 30 September 2022. In closing out the audit, my office received formal confirmation from the president of the university confirming that all contractual commitments at the reporting date had been disclosed to us. We now know that note 25 capital commitments should have reflected a contractual commitment of €11.9 million that existed at 30 September 2022 in respect of the Rhebogue scheme.

The audit fieldwork in respect of the 2022-2023 financial statements has now been completed and the audit file is under review. There are a number of matters where my office has sought additional information and backup documentation from the university. This includes impairments that have been publicly signalled in respect of both the Rhebogue scheme and the premises at Honan’s Quay in Limerick city centre acquired by the university in 2019. When that additional information has been received and reviewed, I will be in a position to clear the financial statements for certification.

Members may also wish to note that I am preparing a report under my value for money remit in relation to the purchase by the university of the premises at Honan’s Quay and the houses at Rhebogue. I began the examination because of the difficulty that arose with the publication of the report by KPMG of its investigation into the city centre premises purchase. We planned to review the Rhebogue acquisition, expecting that lessons learned from mistakes in the Honan’s Quay purchase had been properly applied in later major acquisitions. In the event, this has turned out to be a complex and evolving story which potentially has significant implications for the 2022-2023 audit. A draft of the value for money report is currently with the university for comments. My plan is that the report will be finalised in the next six to eight weeks.