Mr. Seamus McCarthy:

I referred to that in the report on the timeliness issue. There are two different issues in what the Chairman raised. One is the two sets of financial statements. Effectively, that is a historical hangover. Prior to 2003, the HEA specified the universities were to produce what was called the funding statement. We raised the issue with them that this did not comprehend any subsidiaries and that it was not being done on a generally accepted accounting practice basis. In consultation with the HEA and the universities, we developed a template for them, but agreement was reached, because the HEA wanted to hang on to the funding statement, that effectively the two sets of financial statements and a reconciliation statement between the two sets of financial statements would be produced.

As well as that, the accounting systems in the universities were set up to produce the funding statement but not the consolidated financial statements.