Please review my commentary on Financial statement analysis of two Universities in the South Pacific namely: University of the South Pacific and National University of Samoa.

ok ok ok ok ok ok ok ok Income Government contributions student tuition fees development assistance trading activities consultancy income other income release of deferred revenue interest income unrealised exchanged gain to consider them among total sales Expenditure staff cost operating cost depreciation & amortisation movement in pairment provision write down in values of inventories movement in provision for doubtful debt realised exchange loss(gain) unrealised exchange loss loss on demolition of assets loss on disposal of assets write off of project debts Surplus for the year other comprehensive income Other comprehensive expense Items that may be reclassified to P&L foreign operations-foreign currency translation differences Total comprehensive income for the year 2011 2012 47,946,462.00 35,438,939.00 32,254,202.00 13,866,134.00 2,913,492.00 6,103,326.00 3,939,609.00 1,263,842.00 432,008.00 144,158,014.00 47,946,462.00 37,378,606.00 45,846,831.00 16,703,776.00 2,185,499.00 6,464,092.00 7,225,441.00 683,627.00 97,319.00 164,531,653.00 47,946,462.00 39,265,387.00 51,082,889.00 18,454,145.00 1,534,327.00 8,993,349.00 4,633,316.00 759,819.00 420,738.00 172,248,956.00 62,399,251.00 62,016,571.00 67,431,614.00 80,014,069.00 78,511,110.00 84,393,953.00 9,436,990.00 1,134,304.00 479,420.00 670,570.00 136,591,227.00 9,275,121.00 119,069.00 1,180,149.00 858,660.00 2,154.00 156,520,538.00 8,355.00 173,293,562.00 7,566,787.00 8,011,115.00 - 1,044,606.00 6,679,938.00 110,893.00 3,955,320.00 1,429,254.00 - - 2013 509,593.00 - 7,057,194.00 565,030.00 - - - 710,707.00 7,446,085.00 - 1,755,313.00 2014 - - 2015 49,564,724.00 43,915,290.00 51,335,296.00 18,935,422.00 1,661,700.00 9,811,425.00 4,833,963.00 759,948.00 480,621.00 180,337,147.00 49,515,848.00 53,977,487.00 50,392,932.00 17,753,015.00 3,134,101.00 7,547,211.00 5,065,946.00 661,172.00 11,848.00 188,059,560.00 82,195,130.00 79,102,507.00 82,634,439.00 81,652,162.00 11,277,418.00 1,929,042.00 415,317.00 424,902.00 - 11,617,441.00 4,380,285.00 215,104.00 485,424.00 13,116.00 630,290.00 175,157,088.00 41,490.00 179,625,289.00 5,180,059.00 8,434,271.00 - - 244,401.00 4,935,658.00 1,261,688.00 7,172,583.00 Current assets cash and cash equivalents held to majurity financial assets trade and other receivables inventories prepayments 14 14a 12 11 13 Non current assets Property plant and equipment intangible assets 16 17 401,599,909.00 200,799,954.50 Total assets Current liabilities creditors and accruals development assistance(projects)unexpected provisions deferred income borrowings Total current liabilities Non current liabilities provisions deferred income 20 20a 20b 20c 19 19b 19c borrowings Total Non-current liabilities 19 Total Liabilities Net assets Represented by: Funds and reserves other contributed equity endowment capital retained earnings foreign currency translation reserve 20 21 2011 $ $ $ $ $ - 47,945,341.00 9,579,809.00 7,527,382.00 4,994,561.00 771,680.00 70,818,773.00 2012 $ $ $ $ $ 28,934,499.00 18,615,326.00 12,442,987.00 5,707,736.00 432,364.00 66,132,912.00 2013 $ $ $ $ $ 26,551,245.00 18,712,133.00 19,061,076.00 3,635,984.00 574,077.00 68,534,515.00 22,564,100.00 11,282,050.00 19,970,369.00 9,985,184.50 31,504,063.00 15,752,031.50 47,945,341.00 - 28,934,499.00 - 26,551,245.00 22,873,432.00 37,198,413.00 41,983,270.00 198,739,766.00 42,264.00 198,782,030.00 269,600,803.00 202,860,143.00 384,915.00 203,245,058.00 402,027,088.00 201,013,544.00 269,377,970.00 204,481,990.00 388,085.00 204,870,075.00 408,115,133.00 204,057,566.50 273,404,590.00 515,733,594.00 257,866,797.00 538,978,773.00 269,489,386.50 542,782,560.00 271,391,280.00 15,183,234.00 24,054,991.00 4,274,842.00 5,318,040.00 48,831,107.00 15,320,389.00 19,719,550.00 3,786,157.00 4,462,512.00 43,288,608.00 18,679,960.00 21,014,143.00 5,049,645.00 4,633,316.00 49,377,064.00 48,831,107.00 43,288,608.00 49,377,064.00 962,691.00 117,153,822.00 1,107,833.00 117574718 1,217,864.00 116983125 - 118,116,513.00 0 118,682,551.00 0 118,200,989.00 166,947,620.00 161,971,159.00 167,578,053.00 102,653,183.00 107,406,811.00 105,826,537.00 7,940,310.00 5,847,916.00 89,529,186.00 664,229.00 102,653,183.00 7,940,310.00 5,918,388.00 94,777,372.00 1,229,259.00 107,406,811.00 7,940,310.00 6,093,427.00 93,732,766.00 1,939,966.00 105,826,537.00 307,222,104.00 153,611,052.00 210,059,994.00 105,029,997.00 213,233,348.00 106,616,674.00 2014 $ $ $ $ $ - 28,716,237.00 16,929,656.00 19,084,790.00 4,531,505.00 56,251.00 69,318,439.00 2015 $ $ $ $ $ 30,704,625.00 17,655,772.00 19,457,052.00 5,186,253.00 67,730.00 73,071,432.00 38,145,866.00 19,072,933.00 38,541,842.00 19,270,921.00 24,001,394.00 - 21,913,576.00 40,602,202.00 42,366,807.00 208,373,868.00 281,241.00 208,655,109.00 413,525,184.00 206,762,592.00 277,973,548.00 212,514,318.00 1,395,794.00 213,910,112.00 422,565,221.00 211,282,610.50 286,981,544.00 551,378,138.00 275,689,069.00 564,955,092.00 282,477,546.00 15,591,938.00 21,049,800.00 5,498,349.00 4,833,963.00 46,974,050.00 14,048,240.00 23,591,043.00 6,453,328.00 5,065,946.00 170,515.00 49,329,072.00 46,974,050.00 49,158,557.00 877,577.00 115417849 931,111.00 111240242 - 4714843 121,010,269.00 8620534 120,791,887.00 167,984,319.00 170,120,959.00 109,989,229.00 116,860,585.00 8,173,810.00 5,949,228.00 98,050,558.00 2,184,367.00 109,989,229.00 8,173,810.00 5,648,001.00 106,484,829.00 3,446,055.00 116,860,585.00 215,815,766.00 107,907,883.00 226,849,814.00 113,424,907.00 2010 $ 2011 171,237,077.00 $ $ $ $ EBITDA 198,739,766.00 $ 369,976,843.00 $ 184,988,421.50 184,988,421.50 $ 19,742,192.00 2012 202,860,143.00 401,599,909.00 401,599,909.00 200,799,954.50 17,085,970.00 2013 2014 2015 $ 204,481,990.00 $ 208,373,868.00 $ 212,514,318.00 $ 407,342,133.00 203,671,066.50 $ 412,855,858.00 206,427,929.00 $ 420,888,186.00 210,444,093.00 9,343,893.00 19,039,510.00 23,772,959.00 2011 Retainend earnings Retainend earnings 1 Jan Transferred to development assistance(projects) unexpected surplus for the year Balance at year end 43,458,145.00 7,566,787.00 51,024,932.00 1(w) Endowment capital Balance 1 Jan foreign exchange gain(loss) for the year Balance at year end - Analysed as: Endowments-general endowments-specif Total endowments 94,133.00 5,753,783.00 5,847,916.00 Deferred capital gain Balance 1 Jan net additions during the year release during the year loss on demolition of assets Balance at year end Other contributed equity Bal 1 Jan movement during the year Bal 31 Dec Foreign currency translation reserve Balance at 1 Jan other comprehensive income Balance at year end 6,362,016.00 514,100.00 5,847,916.00 153,576,520.00 21,470,423.00 5,318,040.00 812,477.00 168,916,426.00 - 21 - 154,636.00 509,593.00 664,229.00 2012 2013 2014 51,024,932.00 94,777,372.00 - 716,887.00 8,011,115.00 - 1,189,986.00 59,036,047.00 92,870,499.00 92,870,499.00 5,180,059.00 98,050,558.00 98,050,558.00 8,434,271.00 106,484,829.00 5,847,916.00 70,472.00 5,918,388.00 5,918,388.00 175,039.00 6,093,427.00 6,093,427.00 144,199.00 5,949,228.00 5,949,228.00 301,227.00 5,648,001.00 94,133.00 5,824,255.00 5,918,388.00 ### 5,999,294.00 6,093,427.00 94,133.00 5,855,095.00 5,949,228.00 94,133.00 5,553,868.00 5,648,001.00 168,916,426.00 4,027,880.00 7,225,441.00 165,718,865.00 - - 2015 664,229.00 565,030.00 1,229,259.00 - ### - 0 0 - - 7,940,310.00 ### 7,940,310.00 7,940,310.00 233,500.00 8,173,810.00 8,173,810.00 8,173,810.00 1,229,259.00 710,707.00 1,939,966.00 - 1,939,966.00 244,401.00 2,184,367.00 - 2,184,367.00 1,261,688.00 3,446,055.00 Normal operating activities Recurrent activities development assistance(recurrent) government contributions interest received student tuition fees trading activities other receipts staff costs otjher operating costs Total Net cash flows provided by recurrent activities Project activities development assistance staff cost other operating costs Net cash flows provided by project activities Total net CFs provided by/(used in) operating activities Investing activities payment for property, plant and equipment - general payment for property, plant and equipment - project net transfers to term deposits Net cash flows provided by(used in ) investing activities Financing activities proceed from term loan net Net cash flow provided by financing activities Net (decrease)in cash and cash equivalents Cash and cash equivalent as at 1st January Net increase(decrease) in cash and cash equivalents Effects on exchange rate fluctuations on cash held cash and cash equivalent as at 31 Dec 2011 - - - 2012 2013 2014 17,572,083.00 49,091,825.00 1,556,588.00 33,716,136.00 14,400,656.00 7,191,809.00 123,529,097.00 16,291,140.00 46,929,661.00 691,877.00 36,284,722.00 17,574,740.00 5,157,776.00 122,929,916.00 22,330,858.00 48,288,017.00 783,520.00 36,545,436.00 17,603,700.00 8,022,002.00 133,573,533.00 31,261,531.00 49,364,443.00 863,077.00 42,600,705.00 17,387,409.00 9,979,408.00 151,456,573.00 58,197,579.00 57,361,710.00 115,559,289.00 - 63,414,883.00 56,750,873.00 120,165,756.00 - 69,087,585.00 61,727,113.00 130,814,698.00 - 78,274,606.00 65,931,593.00 144,206,199.00 7,969,808.00 2,764,160.00 2,758,835.00 7,250,374.00 21,126,023.00 3,225,234.00 10,242,215.00 7,658,574.00 - 25,220,250.00 4,796,704.00 23,450,607.00 3,027,061.00 30,046,624.00 5,510,766.00 22,723,305.00 1,812,553.00 20,109,422.00 5,564,189.00 14,521,701.00 23,532.00 15,628,382.00 - 262,901.00 4,571,388.00 7,273,906.00 12,278,063.00 - 29,813,476.00 17,535,413.00 - 9,712,424.00 9,035,517.00 18,747,941.00 - - - 2,645,308.00 4,212,527.00 96,807.00 6,954,642.00 - - 10,395,669.00 1,210,565.00 1,782,477.00 9,823,757.00 4,714,843.00 4,714,843.00 33,163,795.00 - 19,010,842.00 - 2,383,254.00 2,164,992.00 14,781,546.00 33,163,795.00 - 47,945,341.00 47,945,341.00 18,249,501.00 761,341.00 28,934,499.00 28,934,499.00 2,633,086.00 249,832.00 26,551,245.00 26,551,245.00 3,070,515.00 906,523.00 28,715,237.00 2015 29,360,771.00 47,060,152.00 650,075.00 51,632,627.00 17,160,655.00 10,720,912.00 156,585,192.00 - 75,763,011.00 68,935,797.00 144,698,808.00 11,886,384.00 - 23,573,403.00 5,702,551.00 15,366,816.00 2,504,036.00 14,390,420.00 - 14,631,800.00 1,120,322.00 726,116.00 16,478,238.00 4,076,206.00 4,076,206.00 1,988,388.00 28,716,237.00 1,491,116.00 497,272.00 30,704,625.00 - Ratio Analysis of University of the South Pacific aga 2011 Liabilities to equity ratio Total Liabilities/Owners' Equity Debt to Equity ratio Short Term Debts + Long Term Debts Owners' Equity USP $ 166,947,620.00 $ 102,653,183.00 1.6 NUS $ $ USP $ $ 102,653,183.00 0 NUS $ $ USP $ (47,945,341.00) $ 102,653,183.00 -0.47 NUS $ $ (284,739.00) 25,341,626.00 -0.025 USP $ $ 7,057,194.00 #DIV/0! NUS $ $ (493,850.00) (74,645.00) 6.62 USP $ 15,628,382.00 0 54,761,316.00 25,341,626.00 2.2 25,341,626.00 0 Net debt to equity ratio Short Term Debts+Long Term debt - Cash and marketable securities Owners' Equity Interest coverage (earnings basis) Net Income+Interest expense+ Tax expense Interest expense Interest coverage (cash flow basis) Cash flow from operations + Interest expense + Tax paid Interest expense #DIV/0! NUS 5 Ratios $ $ 3,441,640.00 (74,645.00) -46.11 Conclusions on the trend of these two Universities Both Universities shared the followings: alysis of University of the South Pacific against National University of Samoa Leverage Ratios 2012 2013 2014 2015 $ 161,971,159.00 $ 167,578,053.00 $ 167,984,319.00 $ 170,120,959.00 $ 107,406,811.00 $ 105,826,537.00 $ 109,989,229.00 $ 116,860,585.00 1.5 1.6 1.5 1.5 $ $ 55,326,785.00 Err:509 $ 24,728,997.00 $ 24,086,858.00 $ 2.2 Err:509 55,439,725.00 $ 23,351,516.00 $ 2.4 55,541,096.00 22,002,117.00 2.5 $ - $ - $ 4,714,843.00 $ 8,791,049.00 $ 107,406,811.00 $ 105,826,537.00 $ 109,989,229.00 $ 116,860,585.00 0 0 0.043 0.075 $ $ - $ 24,728,997.00 $ 0 - $ 24,086,858.00 $ 0 - $ 23,351,516.00 $ 0 500,254.00 22,002,117.00 0.023 $ (28,934,499.00) $ (26,551,245.00) $ (24,001,394.00) $ (21,913,576.00) $ 107,406,811.00 $ 105,826,537.00 $ 109,989,229.00 $ 116,860,585.00 -0.27 -0.25 -0.22 -0.19 $ $ (1,128,286.00) $ 24,728,997.00 $ -0.042 (1,790,889.00) $ 24,086,858.00 $ -0.074 (1,029,109.00) $ 23,351,516.00 $ 0.000 (630,953.00) 22,002,117.00 -0.051 $ $ 7,446,085.00 $ - $ #DIV/0! (1,755,313.00) $ - $ #DIV/0! 4,935,658.00 $ - $ #DIV/0! 7,172,583.00 #DIV/0! $ $ 808,149.00 $ (541,250.00) $ -1.49 735,342.00 $ - $ #DIV/0! 642,139.00 $ - $ #DIV/0! 172,834.00 #DIV/0! $ (262,901.00) $ 0 4,571,388.00 $ 0 7,273,906.00 $ 0 14,390,420.00 0 #DIV/0! $ $ 3,433,926.00 $ (541,250.00) $ -6.34 #DIV/0! 1,755,078.00 $ - $ #DIV/0! #DIV/0! 1,399,714.00 $ - $ #DIV/0! #DIV/0! 2,003,931.00 #DIV/0! trend of these two Universities iversities shared the followings: Higher liabilities against shareholders equity at range between 1.3 to 1.6 considered good For the first three years, 2011-2013, both Universities did not utilise external debts in financing of their capital projects. In 2014 and 2015, USP engaged in external debts of a component of less than one. NUS started engaging itself in external financing in 2015 but at moderate range of 0.023 Thus this trend affect latter ratios including interest expenses since the two Universities were not obliged to pay interest in the periods we analyse as USP was given a grace periods of 20 years from WorldBank. NUS simply paid out on interest expenses in 2014. Since the two Universities were both tax exempted, both were not obliged to pay income tax expenses. Overall, the two Universities had strong equity. But the recent trend in utilising of external debts had to be carefully monitored. USP NUS Liabilities to equity ratio 2011 2012 2013 1.6 1.5 1.6 2.2 2.2 2.3 USP NUS Debt to Equity ratio 2011 2012 0 0 0 0 USP NUS Net debt to equity ratio 2011 2012 2013 2014 2015 -0.467061 -0.269392 -0.250894 -0.218216 -0.18751897 -0.025 -0.042 -0.074 0.000 -0.051 2014 1.5 2.4 2015 1.5 2.5 2013 2014 2015 0 0.042866 0.07522681 0 0 0.02273663 Interest coverage (earnings basis) table for year 2011 to 2015 2011 2012 2013 2014 2015 USP Invalid Invalid Invalid Invalid Invalid NUS 6.62 -1.49 Invalid Invalid Invalid Interest coverage (cash flow basis) table for year 2011 to 2015 2011 2012 2013 2014 2015 USP Invalid Invalid Invalid Invalid Invalid NUS -46.11 -6.34 Invalid Invalid Invalid Line Graph for Net Debt to Equity Ratio for the Year 2011 to 2015 0 2011 -0.05 2012 2013 2014 -0.1 -0.15 -0.2 -0.25 -0.3 -0.35 -0.4 -0.45 -0.5 USP NUS 2015 Line Graph for Liabilities to Equity Ratio for the Years 2011 to 2015 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2011 2012 2013 USP 2014 2015 NUS Column Chart for Debt to Equity Ratio for the Years 2011 to 2015 0.08 0.07 0.06 0.05 0.04 0.03 0.02 0.01 0 2011 2012 2013 USP 2014 2015 NUS Line Graph for Net Debt to Equity Ratio for the Year 2011 to 2015 0 2011 -0.05 2012 2013 2014 -0.1 -0.15 -0.2 -0.25 -0.3 -0.35 -0.4 -0.45 -0.5 USP NUS 2015 Interest coverage (earnings basis) table for year 2011 to 2015 2011 2012 2013 2014 2015 USP Invalid Invalid Invalid Invalid Invalid NUS 6.62 -1.49 Invalid Invalid Invalid Interest coverage (cash flow basis) table for year 2011 to 2015 2011 2012 2013 2014 2015 USP Invalid Invalid Invalid Invalid Invalid NUS -46.11 -6.34 Invalid Invalid Invalid LIQUIDITY RATIOS OF USP & NUS FOR THE YEARS 2011-2015. 2011 Current Ratio Current Assets Current Liabilities Quick Ratio Cash + Short-term investment + Accounts receivable Current Liabilities Cash Ratio Cash + Marketable securities Current Liabilities Operating Cash Flow ratio Cash flow from operations Average current liabilities USP $ 70,818,773.00 $ 48,831,107.00 1.5 NUS $ $ USP $ 58,296,830.00 $ 48,831,107.00 1.2 NUS $ $ USP $ 57,525,150.00 $ 48,831,107.00 1.18 NUS $ $ USP $ 15,628,382.00 $ 44,756,104.00 0.35 NUS $ $ 3,474,845.00 5,172,040.00 0.7 3,378,458.00 5,172,040.00 0.7 787,323.00 5,172,040.00 0.15 3,437,890.00 4,238,025.00 0.81 4 Ratios Both Universities experienced a fluctuating total curre decreasing trend of total current liabilities while for th At the end of the last three years, USP's cash ratio was its cash on hand and marketable securities. This further supported through Operating Cash Flow ra USP's cash flow from operations were exceeded by tot however reviewing the current liabilities component, i development assistance funds unexpended. These how and therefore not a risk to USP except that it must util In comparison with NUS, NUS was also experiencing th Total current assets exceeding total current periods. Quick ratios throughout the 5 years periods items like receivables and securities have ex Cash and cash from operating activities, bot In NUS case, significant portion of Accounts accrued expenses and student allowances. clients, in terms of staffs relationship, dates NUS needed to work on improving this last Given the wide and geographical nature of its total net cash flow from operations. This different places. 2012 $ $ $ $ $ $ $ $ $ $ $ $ 2013 2014 2015 66,132,912.00 $ 68,534,515.00 $ 69,318,439.00 $ 73,071,432.00 43,288,608.00 $ 49,377,064.00 $ 46,974,050.00 $ 49,329,072.00 1.5 1.4 1.5 1.5 4,189,433.00 $ 4,070,911.00 $ 1.0 5,890,713.00 $ 4,603,947.00 $ 1.3 6,327,765.00 $ 3,984,114.00 $ 1.6 5,136,008.00 4,050,650.00 1.3 59,992,812.00 $ 64,324,454.00 $ 64,730,683.00 $ 67,817,449.00 43,288,608.00 $ 49,377,064.00 $ 46,974,050.00 $ 49,329,072.00 1.4 1.3 1.4 1.4 4,084,412.00 $ 4,070,911.00 $ 1.0 5,747,977.00 $ 4,603,947.00 $ 1.2 6,230,807.00 $ 3,984,114.00 $ 1.6 5,072,514.00 4,050,650.00 1.3 47,549,825.00 $ 45,263,378.00 $ 45,645,893.00 $ 48,360,397.00 43,288,608.00 $ 49,377,064.00 $ 46,974,050.00 $ 49,329,072.00 1.10 0.92 0.97 0.98 1,128,286.00 $ 4,070,911.00 $ 0.28 1,790,889.00 $ 4,603,947.00 $ 0.39 1,029,109.00 $ 3,984,114.00 $ 0.26 630,953.00 4,050,650.00 0.16 $ (262,901.00) $ 4,571,388.00 $ 7,273,906.00 $ 14,390,420.00 $ 105,074,975.00 $ 92,813,203.00 $ 90,909,271.00 $ 94,006,290.00 0.00 0.05 0.08 0.15 $ $ 2,892,676.00 $ 4,621,475.00 $ 0.63 1,755,078.00 $ 4,337,429.00 $ 0.40 1,399,714.00 $ 4,294,030.50 $ 0.33 2,003,931.00 4,017,382.00 0.50 experienced a fluctuating total current liabilities. NUS for the last four years, experienced a of total current liabilities while for the five years period, USP total current liabilities kept on fluctuating. ast three years, USP's cash ratio was less than one meaning that its total current liabilities exceeded nd marketable securities. rted through Operating Cash Flow ratios given less than one ratio throughout the 5 years periods. om operations were exceeded by total current liabilities. It could pose risk to USP if such debts were demanded g the current liabilities component, it was obvious that significant component of current liabilities were from tance funds unexpended. These however were not meant to be reclaimed by development partners. a risk to USP except that it must utilise funds efficiently as required. h NUS, NUS was also experiencing the same trend of Liquidity as that of USP. urrent assets exceeding total current liabilities giving positive trend of more than 1 in the 5 years atios throughout the 5 years periods are more than 1 meaning cash and easily converted to cash asset ke receivables and securities have exceedingly large balances compared to total current liabilities nd cash from operating activities, both are less than 1 mainly less cash on hand compared to total current liabilities. case, significant portion of Accounts Payable were for annual and sick leave as well as other commitments: d expenses and student allowances. These could be demanded anytime but since NUS had good relationship with such in terms of staffs relationship, dates could be set of when to demand or disburse for such obligations. eded to work on improving this last ratio to more than 0.5 up to 0.8, which was a good range. he wide and geographical nature of USP's operations, its total current liabilities were far exceeding net cash flow from operations. This could be supported with number of investments USP invested in USP NUS 2011 1.5 0.7 Current Ratio 2012 2013 1.5 1.4 1.0 1.3 2014 1.5 1.6 2015 1.5 1.3 Line Graph for the Current Ratio fo 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 2011 2012 2013 USP USP NUS 2011 1.2 0.7 Quick Ratio 2012 2013 1.4 1.3 1.0 1.2 2014 1.4 1.6 2015 1.4 1.3 Column Chart for the Quick Ratio f 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 2011 2012 2013 USP USP NUS 2011 1.18 0.15 Cash Ratio 2012 2013 1.10 0.92 0.28 0.39 2014 0.97 0.26 2015 0.98 0.16 NU Bar Graph for Cash Ratio for t 2015 2014 2013 2012 2011 0.00 0.20 0.40 0.60 USP NU 2011 0.00 0.20 0.40 0.60 USP USP NUS Operating Cash Flow ratio 2011 2012 2013 0.35 0.00 0.05 0.81 0.63 0.40 2014 0.08 0.33 2015 0.15 0.50 NU Stacked Bar Graph for Operating Cash Flow 2015 2014 2013 2012 2011 -0.20 0.00 0.20 0.40 USP 0.6 NUS the Current Ratio for the years 2011 to 20154 2012 2013 2014 USP 2015 NUS for the Quick Ratio for the years 2011 to 2015 2012 2013 USP 2014 2015 NUS h for Cash Ratio for the year 2011 to 2015 0.40 0.60 USP 0.80 NUS 1.00 1.20 1.40 0.40 0.60 USP 0.80 1.00 1.20 1.40 NUS for Operating Cash Flow Ratio for the years 2011 to 2015 0.20 0.40 USP 0.60 NUS 0.80 1.00 1.20 PROFITABILITY RATIOS OF USP & NUS FOR THE PERIODS: 2011-2015 2011 1) OPERATING PROFITS MARGIN USP $ $ 7,566,787.00 144,158,014.00 5% NUS $ $ 1,218,295.00 19,143,867.00 6% USP $ $ 19,742,192.00 144,158,014.00 14% $ $ 7,057,194.00 144,158,014.00 5% $ $ (419,205.00) 19,143,867.00 -2% $ $ 7,057,194.00 257,866,797.00 3% $ $ (419,205.00) 54,779,917.00 -1% $ 7,057,194.00 OPERATING PROFITS SALES 2) EBITDA NUS 2)RETURN ON SALES NET INCOME SALES 3) RETURN ON ASSETS NET INCOME AVERAGE TOTAL ASSETS 4) RETURN ON EQUITY NET INCOME AVERAGE TOTAL EQUITY $ 153,611,052.00 5% $ $ (419,205.00) 22,512,837.50 -2% E PERIODS: 2011-2015 2012 2013 2014 $ $ 8,011,115.00 $ 164,531,653.00 $ 5% (1,044,606.00) $ 172,248,956.00 $ -1% 5,180,059.00 180,337,147.00 3% $ $ 1,562,519.00 $ 19,412,265.00 $ 8% 844,010.00 $ 20,007,396.00 $ 4% 794,205.00 20,294,207.00 4% $ $ 17,085,970.00 $ 164,531,653.00 $ 10% 9,343,893.00 $ 172,248,956.00 $ 5% 19,039,510.00 180,337,147.00 11% $ $ 7,446,085.00 $ 164,531,653.00 $ 5% (1,755,313.00) $ 172,248,956.00 $ -1% 4,935,658.00 180,337,147.00 3% $ $ 1,349,399.00 $ 19,412,265.00 $ 7% 735,342.00 $ 20,007,396.00 $ 4% 642,139.00 20,294,207.00 3% $ $ 7,446,085.00 $ 269,489,386.50 $ 3% (1,755,313.00) $ 271,391,280.00 $ -1% 4,935,658.00 275,689,069.00 2% $ $ 1,349,399.00 $ 55,044,096.00 $ 2% 735,342.00 $ 55,641,153.50 $ 1% 642,139.00 55,697,623.50 1% $ 7,446,085.00 $ (1,755,313.00) $ 4,935,658.00 $ 105,029,997.00 $ 7% 106,616,674.00 $ -2% 107,907,883.00 5% $ $ 1,349,399.00 $ 22,676,816.50 $ 6% 735,342.00 $ 23,719,187.00 $ 3% 642,139.00 24,407,927.50 3% 2015 $ $ 8,434,271.00 188,059,560.00 4% $ $ 310,194.00 22,368,381.00 1% $ $ 23,772,959.00 188,059,560.00 13% $ $ 7,172,583.00 188,059,560.00 4% $ $ 172,834.00 22,368,381.00 1% $ $ 7,172,583.00 282,477,546.00 3% $ $ 172,834.00 55,490,410.00 0% $ 7,172,583.00 $ 113,424,907.00 6% $ $ 172,834.00 25,035,311.50 1% USP NUS OPERATING PROFITS MARGIN 2011 2012 2013 2014 2015 0.05249 0.04869 -0.006065 0.028724 0.044849 0.063639 0.080491 0.042185 0.039135 0.013868 Line Graph for Operating Profits Marg 0.1 0.08 0.06 0.04 0.02 0 2011 2012 2013 -0.02 USP USP NUS RETURN ON SALES 2011 2012 2013 2014 2015 0.048955 0.045256 -0.010191 0.027369 0.03814 -0.021898 0.069513 0.036754 0.031641 0.007727 Column Chart for Return on Sales 0.08 0.06 0.04 0.02 0 2011 2012 2013 -0.02 -0.04 USP USP NUS RETURN ON ASSETS 2011 2012 2013 2014 2015 0.027368 0.02763 -0.006468 0.017903 0.025392 -0.007653 0.024515 0.013216 0.011529 0.003115 NU Bar Graph for Return on Assets fo ` 2015 2014 2013 2012 2011 -0.01 -0.005 0 0.005 0.01 USP NU USP NUS RETURN ON EQUITY 2011 2012 2013 2014 2015 0.045942 0.070895 -0.016464 0.04574 0.063236 -0.018621 0.059506 0.031002 0.026309 0.006904 Line Chart for Retun on Equity fo 0.08 0.06 0.04 0.02 0 2011 2012 2013 -0.02 -0.04 USP perating Profits Margin for the years 2011 to 2015 2012 2013 USP 2014 2015 NUS for Return on Sales for the year 2011 to 2015 2012 2013 USP 2014 2015 NUS r Return on Assets for the years 2011 to 2015 5 4 3 2 1 0 0.005 0.01 USP 0.015 NUS 0.02 0.025 0.03 r Retun on Equity for the years 2011 to 2015 2012 2013 USP 2014 NUS 2015 EFFICIENCY RATIOS Ratio Analysis of University of the South Pacific 1)Operating working capital (Current Assets-Cash and Marketable securities) - (Current liabilities- Short Term and current portion of long term debt) 2011 USP $ $ $ 22,873,432.00 48,831,107.00 (25,957,675.00) NUS $ $ $ 2,687,522.00 4,669,456.00 (1,981,934.00) USP $ $ (25,957,675.00) 144,158,014.00 -18% NUS $ $ (1,981,934.00) 19,143,867.00 -10% USP $ $ 144,158,014.00 (25,957,675.00) -5.55 NUS $ $ 19,143,867.00 (1,981,934.00) -9.66 USP $ $ 144,158,014.00 11,282,050.00 12.8 NUS $ $ 19,143,867.00 689,122.00 27.8 2)Operating working capital to sales ratio Operating working capital Sales 3)Operating working capital turnover Sales Operating working capital 4)Accounts receivable turnover Sales Average Accounts Receivable (In averaging NUS accounts receivable, we take only sundry debtors and VAGST receivables) 5)Days receivable $ $ 11,282,050.00 394,953.46 28.57 NUS $ $ 689,122.00 52,448.95 13.14 USP $ $ 144,158,014.00 185,009,553.50 0.78 NUS $ $ 19,143,867.00 52,095,536.50 0.37 USP $ $ 144,158,014.00 184,988,421.50 0.78 NUS $ $ 19,143,867.00 52,095,536.50 0.37 Average accounts receivable Average sales per day 6)Net long-term assets turnover Sales Average net long term assets 7) PP&E turnover Sales Average net Property, Plants & Equipments University of the South Pacific against National University of Samoa 2012 2013 2014 $ $ $ 37,198,413.00 $ 43,288,608.00 $ (6,090,195.00) $ 41,983,270.00 $ 49,377,064.00 $ (7,393,794.00) $ 40,602,202.00 46,974,050.00 (6,371,848.00) $ $ $ 3,061,147.00 $ 4,070,911.00 $ (1,009,764.00) $ 4,099,824.00 $ 4,603,947.00 $ (504,123.00) $ 5,298,656.00 3,984,114.00 1,314,542.00 $ $ (6,090,195.00) $ 164,531,653.00 $ -4% (7,393,794.00) $ 172,248,956.00 $ -4% (6,371,848.00) 180,337,147.00 -4% $ $ (1,009,764.00) $ 19,412,265.00 $ -5% (504,123.00) $ 20,007,396.00 $ -3% 1,314,542.00 20,294,207.00 6% $ $ 164,531,653.00 $ (6,090,195.00) $ -27.02 172,248,956.00 $ (7,393,794.00) $ -23.30 180,337,147.00 (6,371,848.00) -28.30 $ $ 19,412,265.00 $ (1,009,764.00) $ -19.22 20,007,396.00 $ (504,123.00) $ -39.69 20,294,207.00 1,314,542.00 15.44 $ $ 164,531,653.00 $ 9,985,184.50 $ 16.5 172,248,956.00 $ 15,752,031.50 $ 10.9 180,337,147.00 19,072,933.00 9.5 $ $ 19,412,265.00 $ 1,056,127.00 $ 18.4 20,007,396.00 $ 957,406.00 $ 20.9 20,294,207.00 1,033,862.00 19.6 $ $ 9,985,184.50 $ 450,771.65 $ 22.15 15,752,031.50 $ 471,914.95 $ 33.38 19,072,933.00 494,074.38 38.60 $ $ 1,056,127.00 $ 53,184.29 $ 19.86 957,406.00 $ 54,814.78 $ 17.47 1,033,862.00 55,600.57 18.59 $ $ 164,531,653.00 $ 201,013,544.00 $ 0.82 172,248,956.00 $ 204,057,566.50 $ 0.84 180,337,147.00 206,762,592.00 0.87 $ $ 19,412,265.00 $ 51,211,957.00 $ 0.38 20,007,396.00 $ 50,601,080.50 $ 0.40 20,294,207.00 49,588,384.50 0.41 $ $ 164,531,653.00 $ 200,799,954.50 $ 0.82 172,248,956.00 $ 203,671,066.50 $ 0.85 180,337,147.00 206,427,929.00 0.87 $ $ 19,412,265.00 $ 51,211,957.00 $ 0.38 20,007,396.00 $ 50,601,080.50 $ 0.40 20,294,207.00 49,588,384.50 0.41 2015 $ $ $ 42,366,807.00 49,158,557.00 (6,791,750.00) $ $ $ 4,505,055.00 4,050,650.00 454,405.00 $ $ (6,791,750.00) 188,059,560.00 -4% $ $ 454,405.00 22,368,381.00 2% $ $ 188,059,560.00 (6,791,750.00) -27.69 $ $ 22,368,381.00 454,405.00 49.23 $ $ 188,059,560.00 19,270,921.00 9.8 $ $ 22,368,381.00 1,409,902.00 15.9 $ $ 19,270,921.00 515,231.67 37.40 $ $ 1,409,902.00 61,283.24 23.01 $ $ 188,059,560.00 211,282,610.50 0.89 $ $ 22,368,381.00 50,234,948.00 0.45 $ $ 188,059,560.00 210,444,093.00 0.89 $ $ 22,368,381.00 50,234,948.00 0.45 USP NUS USP NUS USP NUS Operating working capital 2011 2012 2013 2014 2015 $ (25,957,675.00) $ (6,090,195.00) $ (7,393,794.00) $ (6,371,848.00) $ (6,791,750.00) $ (1,981,934.00) $ (1,009,764.00) $ (504,123.00) $ 1,314,542.00 $ 454,405.00 2011 -18% -10% 2011 -5.5535795868 -9.6591849174 Operating working capital to sales ratio 2012 2013 -4% -4% -5% -3% 2014 -4% 6% 2015 -4% 2% Operating working capital turnover 2012 2013 2014 2015 -27.015826751 -23.29642346 -28.302173404 -27.6894114183 -19.224556431 -39.6875286388 15.4382340009 49.2256489255 USP NUS USP NUS USP NUS 2011 2 27.7800839329 Accounts receivable turnover 2012 2013 2 2 18.380616157 20.8975042981 2014 2 19.6295124494 2015 2 15.8652026878 2011 182.5 13.1389091869 Days receivable 2012 2013 182.5 182.5 19.8578761932 17.4662004991 2014 182.5 18.5944506233 2015 182.5 23.0063244184 2011 0.7791922702 0.3674761464 Net long-term assets turnover 2012 2013 0.8185102841 0.8441194265 0.3790572776 0.3953946398 2014 0.8721942652 0.4092532395 2015 0.8900853674 0.4452752892 USP NUS 2011 0.7792812806 0.3674761464 PP&E turnover 2012 2013 0.8193809277 0.8457212846 0.3790572776 0.3953946398 2014 0.8736082752 0.4092532395 2015 0.8936319253 0.4452752892 Column Chart for Operating Working Capital for the years 2011 to 2015 $5,000,000.00 $- 2011 2012 2013 2014 2015 $(5,000,000.00) $(10,000,000.00) $(15,000,000.00) $(20,000,000.00) $(25,000,000.00) $(30,000,000.00) USP NUS Line Chart for Operating Working Capital to Sales Ration for the years 2011 to 2015 10% 5% 0% 2011 2012 2013 2014 2015 -5% -10% -15% -20% USP NUS Column Chart for Operating working capital turnover for the years 2011 to 2015 60 40 20 0 2011 2012 2013 2014 2015 -20 -40 -60 USP NUS Line Graph for Accounts Receivable Turnover for the years 2011 to 2015 30 25 Line Graph for Accounts Receivable Turnover for the years 2011 to 2015 30 25 20 15 10 5 0 2011 2012 2013 2014 USP 2015 NUS Days Receivable Chart for the years 2011 to 2015 200 180 160 140 120 100 80 60 40 20 0 2011 2012 2013 USP 2014 2015 NUS Net Long Term Assets Turnover Line Graph for the Years 2011 to 2015 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2011 2012 2013 USP 2014 2015 NUS PP&E Turnover Bar Graph for the Years 2011 to 2015 2015 PP&E Turnover Bar Graph for the Years 2011 to 2015 2015 2014 2013 2012 2011 0 0.1 0.2 0.3 0.4 USP 0.5 NUS 0.6 0.7 0.8 0.9 1 2500 3500 1500 2000 1) Financial Statement Analysis of USP and NUS for financial years 2011-2015. The two Universities' financial statements been analyzed using Liquidity measurement ratios, leverage ratios as well as efficiency and profitability ratios. USP with 12 member countries been serving as tertiary education provider throughout the Pacific Islands. National University of Samoa on the other hand, was a competitor to University of the South Pacific's regional campus in Samoa and tended to serve educational needs of Samoans only. The differences in geographical, sizes had been noted and had significant effects on the ratios calculated. 2) LIQUIDITY MEASUREMENT RATIOS OF USP & NUS FOR THE YEARS 2011 - 2015 2.1) Similarities shared by both Universities. Ability of these two Universities to cover for immediate financial obligations is measured through the 4 Liquidity measurement ratios: Current Ratio, Quick Ratio, Cash Ratio and Operating Cash Flow ratio. As noted through the ratios and bar and line graphs attached, USP and NUS shared similar trends throughout the years under review: 2011 - 2015. 2.2) Shared Characteristics by these two Universities. The trend of such 4 ratios: Current Ratio, Quick Ratio, Cash Ratio & Operating Cash Flow ratio characterized as Liquidity measurement ratios were fluctuating in both Universities' cases throughout the 5 years periods: 2011 - 2015.(refer graphs and ratios appendix 10) Both Universities possessed strong current assets base against total current liabilities as shown in both Current Ratio and Quick Ratio. As assets specifically narrowed to cash, total current liabilities increased to absorb remaining cash & cash equivalent (marketable securities) by these two Universities resulting in less than one ratio. Ratios for Net cash flow from operations were all less than one for the two Universities and there was even one financial year when USP reported negative cash flow from operations that then yield a zero ratio. 2.3) Current & Quick Ratio USP's range of current ratio falls between 1.5 and 1.4 throughout the five years periods. NUS's current asset ratio remained positive also but fluctuating from 0.7 and 1.6 ranges in the five years period. Quick Ratio remained the same with Current Ratio as in NUS's case for the 5 years periods since the three numerator component: Accounts Receivable, Term Deposits and Cash made up significant portion of NUS's total current assets. USP's ability to meet its current liabilities through quick assets: Cash, Accounts receivables and short term deposits got limited compared to Current Ratio. Current and Quick Ratio indicated both Universities' abilities to meet immediate demands should suppliers, authorities such as Tax office and Provident Funds office in Samoa, Fiji and around the regions claimed outstandings. 2.4) Cash Ratio of USP & NUS 2011-2015' USP experienced a negative trend of cash ratio in the first 3 years period 2011-2013. Unlike its current and quick ratios, USP now reported 2013-2015's cash ratio by less than one. Despite having reduced capabilities in meeting of immediate financial obligations as indicated in 2013-2015 ratios, the repayment terms of current liabilities of USP would finally determine its ability either in meeting payment demands or not. In revising USP's current liabilities items, the most significant liability portion was Development Assistance (Projects) unexpended. These referred to funds received from development partners and appropriated for research, scholarship, and community outreach and capital developments but had not yet utilized. This in real sense were not demandable from third parties: Development partners (donors) however USP was in the best position if such funds utilized according to these Development partners terms and conditions. Deferred income was also undemandable and at a range of $4 and $5 million annually, its obvious current assets was sufficient enough to cover for the following uncontrollable debts. 2011 Provisions for employees entitlements Payroll Creditors Trade Creditors Other Creditors & Accruals 2012 2013 2014 $5,237,533 $3,786,157 $ $5,049,645 $1,860,984 $7,495,925 $1,424,553 $8,702,654 $3,963,790 $4,948,974 $ $ $692,365 $1,016,516 $915,205 $ 2015 $ Pursuant to USP's disclosure on Provisions for employees' entitlements, current annual leave liabilities were payable within the next 12 months after each reporting date: 31 st December, since there was no unconditional right to defer these settlements. It therefore clear that provisions was Other immediate liabilities included that of payroll creditors, trade creditors, Other Creditors & Accruals. NUS's cash ratio throughout the 5 years period was less than one indicating less than sufficient cash available for NUS to settle for immediate financial obligations. As total liabilities exceeded cash at bank and on hand, actual ability to meet payments demands rest well with NUS's repayment terms with suppliers. In reviewing NUS's liabilities items, Other Payables and Accruals formed a significant portion of Current liabilities, followed by Annual & sick leave and deferred income. Since deferred income could not be demanded anytime, this provided relief to NUS. NUS's repayments to Annual and sick leave, Other Payables and Accruals, Loan from UTOs, therefore must be prioritized. 2.5) Operating Cash Flow Ratio of USP & NUS 2011-2015' Both Universities, USP and NUS had limited ability against total current liabilities according to Operating cash flow ratio from 2011 - 2015. USP's operating cash flow ratio reduced to 0.35 as the highest in the year 2011 and zero as its minimum ratio in 2012. It was because of a negative net cash flow from operations in year 2012, indicating nil possibilities to pay demands should any made. However, bank overdraft facilities could assist at these times and as USP disclosed in note 3, it had accessed to bank overdraft facilities in most regional campuses. (give actual number and locations) In subsequent years, all USP's cash ratios were less than 0.2. This trend of USP's Operating cash flow ratio indicated very limited ability of USP in meeting current liabilities however utilizing of bank overdraft could greatly assist. NUS had more repayment abilities proved from its cash ratios range of 0.33 to 0.81. 2.6) Conclusions on trend of Liquidity measurement ratios by USP and NUS, 2011-2015 The trend in Current and Quick ratios indicated strong ability of both USP and NUS to cover short term obligations through cash and cash equivalents and assets that can be sold quickly. In Cash Ratio, even though ratios indicated less ability to cover short term obligations, both Universities were in a good position to repay provided some significant portion of current liabilities were not immediate financial obligations such as Deferred Income and Development Assistance (projects) unexpended. In operating cash flow ratio, the same applies as in Cash ratio. Most significant component of current liabilities were not immediate financial obligations such by these Universities such as Deferred Income, Development Assistance (projects) unexpended. LEVERAGE 3) Commentary on USP and NUS's Leverage ratios for the years 2011-2015 Both Universities according to calculated Leverage measurement ratios namely: Liabilities to Equity ratio, Debt to Equity ratio, Net Debt to Equity ratio, Interest Coverage based on earnings and cash flow showed similar trends for the years under review. The ratios indicated higher proportion of liabilities against total equities, nil obligations to pay income tax and noted years when interest on loans were not payable. Similarly, both Universities experienced the same proportion of higher liabilities compared to total equities. While USP's trend was steady at 1.6 and 1.5 throughout the five years, NUS had double liabilities in comparison to its total equity thus had increasing ratios trend of 2.2, 2.2, 2.3, 2.4 & 2.5. These two Universities also shared the ratio of zero debts against total equities as both were not engaging in external financing from any financial institutions. For the first three years, the two Universities shared that trend of zero debts however on the fourth year in 2014, USP drawdown 2.5 million from WorldBank. According to annual report 2014, the debts mainly used in financing capital projects for regional campuses upgrading. In 2015, NUS first entered in debt arrangements as the ratio indicated a 0.023. Since these two universities entered into credit contract in the latter years, different debt covenants governing their credit transactions affect their Interest Coverage ability. USP being given 20 years grace period from WorldBank, therefore was not bind to pay interest during the years under review. NUS on the other hand, instantly paid interest in 2015. Interest coverage from cash flow from operations was in error for the first three years since such Universities were not paying interests at all. Only on the fourth and fifth years that NUS started paying for finance lease and interests on loans from UTO. 3.1) Conclusions on the trend of these two Universities Both Universities shared the followings: - Higher liabilities against shareholders equity ranging between 1.5 and 1.6 in USP's case, that was considered reasonable. - For NUS's case however, its total liabilities each year was twice the amount of shareholder's equity. Its range of Liabilities to Equity ratio was 2.2 to 2.5 in the five years period that was increasing per year. - For the first three years, 2011-2013, both Universities did not engaged in external debts financing of major capital projects. - However, USP engaged in external debts of a component of less than one. - NUS started engaging itself in external financing in 2015 but at moderate range of 0.023 - Thus this trend affect latter ratios including interest expenses since the two Universities were not obliged to pay interest in the periods we analyse as USP was given a grace periods of 20 years from WorldBank. NUS simply paid out on interest expenses in 2014. - Since the two Universities were both tax exempted, both were not obliged to pay income tax expenses. Overall, the two Universities had strong equity (review it). But the recent trend in utilising of external debts had to be carefully monitored. 4) PROFITABILITY The higher the firm's profitability, the more the efficient it was in utilizing its resources particularly its assets and managing its liabilities. In terms of education, the more efficient its collection policies it adopted and careful monitoring over operation costs. Considering the cases of USP and NUS, both tertiary education provider in the Pacific Islands enjoyed rather super abnormal profits throughout the years under review: 2011-2015. Out of the five financial years under review, both Universities only experienced one out period of significant financial losses that was in 2013 and 2011 for USP and NUS respectively. Significant contributing factors to such losses were based on impairment losses on Property plants & equipment and movement in impairment provisions. In reviewing related factors contributing significantly to the loss, it was noted that both Universities reported impairment losses. the profitability of the two universities proved sustainable profits of the two firms for the years 20112015. Such 4 ratios: Operating Margin Profits, Return on Assets, Return on Equity and Net Profits Margin reported positive trend of profitability by these two Universities. Operating Profits for USP and NUS in 2011 till 2015 were fluctuating at -1% and 8% ranges. USP's operating profits in 2013 was -1% and this was due to NUS on the other hand, had positive Operating profits margin and a lowest 1% in 2015. Net Profits Margin was even fluctuating for these two Universities. 5) EFFICIENCY Efficiency ratios measures how well a company uses its assets or resources to make a profit. In analyzing both USP's and NUS's efficiency, it was evident from ratios including charts and graphs attached as appendices, that in each year from 2011 till 2015, each University's efficiency in utilizing its assets: accounts receivables, property, plants & equipment were decreasing. Accounts receivable turnover for these two Universities were fluctuating and both reported the least turnover times in the year 2015. (USP: 9.8 Times and NUS: 15.9 Times) While NUS reported high receivable turnover rates than USP, this was noted to be caused by differences in revenue recognition policies by these two Universities. For each private student enrolled at NUS, this had no impact on either sales or accounts receivable pursuant to NUS choice of revenue recognition. On the contrary, USP recognized each student registered as increase to its sales and accounts receivables. This greatly impacted turnover rates as the increases in both sales and accounts receivables did contributed to low turnover rates. The turnover of accounts receivables did affect the number of days when these receivables turn into cash sales. However, as noted the ranges of collection in terms of days by these two Universities falls between a month for NUS and not more than two months for USP. These were reliable rates. Looking at Property, Plants and Equipment's turnover, both Universities reported less than one ratio in the 5 years period. As this could be indicating less efficiency in utilization of assets to generate income, as tertiary education providers, to invest in more property, plants and equipment each year represented strategies towards achieving excellence. USP instead of reporting declining non-current assets, its property plants and equipment kept increasing each year. Computers for students would ensure National University of Samoa Statement of Financial Perfomance For the Year ended 30 June 2011-2015 2015 $ Notes 2014 $ Income Operating Grant Course fees Rental Income Hire of Gowns Gymnasium fees Project donor funds $ 11,888,120.00 $ $ 8,586,986.00 $ $ 471,937.00 $ $ 82,454.00 $ $ 58,594.00 $ $ 1,174.00 $ Amortisation of deferred income Other Income $ $ 10,998,942.00 7,316,581.00 570,566.00 74,880.00 65,641.00 6,646.00 815,668.00 $ 374,818.00 $ 815,668.00 371,998.00 $ 88,630.00 $ $ - $ $ 22,368,381.00 $ 73,285.00 39,516.00 20,333,723.00 Expenses Administration expenses Accounting & Audit fees Deficit from conference hosting Depreciation Repairs & maintenance Loss from sale of fixed assets Software upgrade/fees Personnel costs Total expenses $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 4,113,050.00 32,537.00 2,267,104.00 398,924.00 132,742.00 12,595,161.00 19,539,518.00 Operating surplus $ 310,194.00 $ 794,205.00 $ 100,515.00 $ 125,499.00 Surplus from Conference hosting Surplus from Bookshop operations Gain from sale of fixed assets Less other expenses Net finance income Impairment loss - NUS Consult cash injection $ Impairment loss- Old fale samoa Provision for annual sick leave Provision for long service leave Total other expenses $ $ $ $ Net Surplus for the year $ 4,463,814.00 29,977.00 33,019.00 2,348,144.00 607,468.00 154,285.00 14,421,480.00 22,058,187.00 (237,875.00) (137,360.00) $ - $ $ $ $ (277,565.00) (152,066.00) 172,834.00 $ 642,139.00 The accompanying notes form an integral part of the above financial statement 2013 $ $ $ $ $ $ $ $ $ $ 2012 $ 11,574,802.00 6,707,125.00 489,053.00 55,180.00 61,059.00 - Notes for 2012 $ 11,586,670.00 $ 11,426,425.00 $ 6,085,187.00 $ 6,332,077.00 $ 390,201.00 $ 302,221.00 $ 70,632.00 $ 80,155.00 $ 54,167.00 $ 24,437.00 $ 149,078.00 $ 4,770.00 815,669.00 $ 214,817.00 $ - 2011 $ $ 815,668.00 $ 135,846.00 $ 28,622.00 $ 3 7 5 798,025.00 88,043.00 4 - $ $ $ 89,691.00 $ 96,194.00 $ 87,714.00 3,496.00 $ - $ 47,435.00 20,010,892.00 $ 19,412,265.00 $ 19,191,302.00 8 6 $ $ $ $ $ $ $ $ $ 3,374,794.00 30,353.00 21,684.00 2,299,267.00 754,160.00 231,327.00 12,455,297.00 19,166,882.00 9 $ 3,244,995.00 $ $ 42,496.00 $ $ - $ $ 2,201,717.00 $ $ 510,172.00 $ $ 13,239.00 $ $ $ 11,837,127.00 $ $ 17,849,746.00 $ $ 844,010.00 $ $ 67,355.00 $ $ - $ $ $ $ (176,023.00) $ (108,668.00) $ $ 735,342.00 $ 2,700,240.00 20,500.00 47,947.00 2,787,132.00 508,828.00 ### 11,908,360.00 17,973,007.00 repairs & maintenance was not cons In 2013, reported comparative balan If only balance was adjusted based o then the new balance was okay, if no 1,562,519.00 $ 1,218,295.00 21,114.00 $ 13,006.00 12 ### $ (100,000.00) 21 $ (650,000.00) $ (604,104.00) $ (296,402.00) $ (1,637,500.00) 21 21 21 ### ### (234,234.00) (213,120.00) 1,349,399.00 $ (419,205.00) $ - maintenance was not consistently brought forward in 2013 account eported comparative balance of repair & maintenance in 2013 was $411171 ance was adjusted based on audit recommendations new balance was okay, if not then why??? National University of Samoa Statement of Financial Position For the Year ended 30 June 2011-2015 2015 $ Notes ASSETS Non-Current Assets Property, Plant & Equipments Total non current assets Current Assets Other receivables and prepayments Bookshop inventory Term Deposits Cash on hand & cash equivalents Total Current Assets 10 $ 50,405,087.00 $ 50,405,087.00 13 14 15 16 $ $ $ $ $ 1,916,150.00 63,494.00 2,525,411.00 630,953.00 5,136,008.00 Total Assets $ 55,541,095.00 Equity & Liabilities Equity Capital Accumulated losses Total Equity' $ 29,997,837.00 $ (4,656,211.00) $ 25,341,626.00 Non Current Liabilities Deferred income Long service leave Total non current liabilities Current Liabilities Loan UTO's Deferred income Annual and sick leave Other Payable & Accruals ANZ Finance Lease - current portion Project funds & others Total Current Liabilities Total Equity & Liabilities 4 4 17 18 $ 24,324,484.00 $ 1,824,336.00 $ 26,148,820.00 $ $ $ $ $ $ $ 815,668.00 1,018,154.00 1,317,897.00 898,931.00 4,050,650.00 $ 55,541,096.00 The accompanying notes form an integral part of the above financial statement ty of Samoa ancial Position ed 30 June 2011-2015 Note (2012) 2014 $ 2013 $ $ 49,111,960.00 $ $ 49,111,960.00 $ $ $ $ $ $ 50,064,809.00 50,064,809.00 2012 $ 2011 $ $ 51,137,352.00 $ 51,286,562.00 $ 51,137,352.00 $ 51,286,562.00 $ $ $ $ $ 1,126,391.00 142,736.00 2,830,697.00 1,790,889.00 5,890,713.00 $ 55,439,725.00 $ 55,955,522.00 $ 55,326,785.00 $ 54,761,407.00 $ 29,997,837.00 $ $ (5,268,840.00) $ $ 24,728,997.00 $ 29,997,837.00 (5,910,979.00) 24,086,858.00 ### $ 29,997,837.00 $ (6,646,321.00) $ (7,995,720.00) $ 23,351,516.00 $ 22,002,117.00 $ 25,140,153.00 $ $ 1,586,461.00 $ $ 26,726,614.00 $ 25,955,821.00 $ 1,308,896.00 $ 27,264,717.00 $ $ $ $ $ $ $ $ 1,275,386.00 96,958.00 3,926,312.00 1,029,109.00 6,327,765.00 Comparative 2012 to 2013 account 815,668.00 1,042,064.00 1,294,034.00 832,348.00 3,984,114.00 $ $ $ $ $ $ $ $ 55,439,725.00 $ 815,668.00 1,440,931.00 2,347,348.00 4,603,947.00 $ $ $ $ $ $ $ $ $ $ 1,344,940.00 96,387.00 1,246,195.00 787,323.00 3,474,845.00 26,771,489.00 $ 26,771,490.00 $ 27,587,159.00 1,132,869.00 $ - $ 27,904,358.00 $ 26,771,490.00 $ 27,587,159.00 $ $ $ 815,668.00 1,442,850.00 $ 1,812,392.00 $ $ 4,070,910.00 $ 55,955,522.00 $ 1,173,477.00 105,021.00 1,782,649.00 1,128,286.00 4,189,433.00 ### ### 4,388,111.00 ### ### 5,203,779.00 $ $ $ $ $ $ $ 500,000.00 815,668.00 3,853,788.00 2,584.00 5,172,040.00 55,326,784.00 $ 55,326,785.00 $ 54,761,316.00 Note (2012) 18 17 National University of Samoa Statement of Financial Position For the Year ended 30 June 2011-2015 2015 $ Notes Cash Flows from Operating Activities Cash was received from: Government grants Course fees Canteen & Other facilities rental Miscellaneous income Cash was applied to: Personnel costs Administration and other Net Cash from operating activities Cash flows from investing activities Cash was received from: Interests from term deposits Proceeds from asset disposal Proceeds from term investments OUM integrated with the NUS Cash was applied to: Purchase of fixed assets (including WIProgress) New term deposit (ANZ Bank) New term investment (UTOS) Operation grant to NUS Consult Net cash flows from investing activities Cash flows from financing activities Cash was received from: Loan from UTOs Cash was applied to: Interest and principal paid on borrowings (UTOS) Finance Lease Net Cash Flow from financing activities Net increase/(decrease) in cash balances $ $ $ $ $ 11,888,120.00 8,287,666.00 542,729.00 698,410.00 21,416,925.00 $ $ $ 13,753,314.00 5,659,680.00 19,412,994.00 $ 2,003,931.00 $ $ $ $ $ 174,242.00 1,201,338.00 439,795.00 1,815,375.00 $ $ $ $ $ 4,187,462.00 30,000.00 4,217,462.00 $ (2,402,087.00) $ - $ - $ - $ (398,156.00) Cash balances brought forward Ending cash balances 16 $ $ 1,029,109.00 630,953.00 June 2011-2015 2014 $ 2013 $ $ $ $ $ $ 10,998,942.00 7,227,263.00 640,290.00 661,177.00 19,527,672.00 $ $ $ $ $ $ $ $ 12,595,161.00 $ 5,532,797.00 $ 18,127,958.00 $ $ 1,399,714.00 $ 2012 $ 11,574,802.00 6,624,968.00 495,794.00 361,442.00 19,057,006.00 2011 $ $ 11,586,670.00 $ 11,426,425.00 $ 5,714,564.00 $ 5,745,711.00 $ 374,026.00 $ 351,036.00 $ 383,298.00 $ 408,127.00 $ 18,058,558.00 $ 17,931,299.00 12,455,297.00 $ 11,688,493.00 $ 11,257,997.00 4,846,631.00 $ 3,477,389.00 $ 3,235,412.00 17,301,928.00 $ 15,165,882.00 $ 14,493,409.00 1,755,078.00 $ 2,892,676.00 $ 3,437,890.00 $ $ $ $ $ 115,454.00 39,516.00 154,970.00 $ $ $ $ $ 48,049.00 $ 24,235.00 $ 72,284.00 $ 34,003.00 10,500.00 ### ### 44,503.00 $ $ $ $ $ 34,683.00 8,000.00 42,683.00 $ $ $ $ $ 1,316,555.00 1,000,000.00 2,316,555.00 $ $ $ $ $ 1,164,759.00 $ 1,164,759.00 $ 2,054,875.00 ### ### ### 2,054,875.00 $ $ $ $ $ 2,046,060.00 100,000.00 2,146,060.00 $ (2,161,585.00) $ (1,092,475.00) $ (2,010,372.00) $ (2,103,377.00) $ - $ - $ - $ - $ $ - $ - $ (761,781.00) $ ### $ 500,000.00 $ (541,250.00) $ $ (541,250.00) $ (3,750.00) (70,895.00) 425,355.00 662,603.00 $ 341,054.00 $ 1,759,868.00 $ $ 1,790,889.00 $ 1,029,108.00 $ 1,128,286.00 $ 1,790,889.00 $ 787,232.00 $ 1,128,286.00 $ (972,636.00) 787,232.00 National University of Samoa Statement of Changes in Equity For the Year ended 30 June 2015 Notes Restated opening balance 1-Jul-13 Excess of Income over expenditure Balances as at 30 June 2014 Faculty of Medicine Integration effective 1 July 2014 Capital $ 29,997,837.00 $ (5,910,979.00) $ 642,139.00 $ 29,997,837.00 $ (5,268,840.00) $ 439,795.00 $ 172,834.00 $ 29,997,837.00 $ (4,656,211.00) 24 Excess of Income over expenditure Balance as at 30 June 2015 Accumulated Losses National University of Samoa Statement of Changes in Equity For the Year ended 30 June 2013 Notes Capital Accumulated Losses Balance as at 1 July 2011 Restated Opening balance 1.7.2011 $ 29,997,837.00 $ (7,995,720.00) Excess of Income over expenditure Balance as at 30 June 2012 $ $ 29,997,837.00 $ 1,349,399.00 (6,646,321.00) $ $ 29,997,837.00 $ 735,342.00 (5,910,979.00) Excess of Income over expenditure Balance as at 30 June 2013 National University of Samoa Statement of Changes in Equity For the Year ended 30 June 2012 Total Notes $ 24,086,858.00 $ $ Balance as at 1 July 2010 642,139.00 $ 24,728,997.00 439,795.00 1-Jul-10 Adjustment-provision for long service leave, new policy approved by Council in March 2012, retrospective impact 2010 (Note.21) Restated Opening balance 1.7.2010 172,834.00 $ 25,341,626.00 Total $ 22,002,117.00 $ 1,349,399.00 $ 23,351,516.00 $ 735,342.00 $ 24,086,858.00 $ 29,997,837.00 $ 29,997,837.00 $ 29,997,837.00 $ 29,997,837.00 Restated excess of expenditure over income Balance as at 30 June 2011 $ Capital Excess of Income over expenditure Balance as at 30 June 2012 University of Samoa nt of Changes in Equity Year ended 30 June 2012 Accumulated Losses Total $ (6,974,279.00) $ 23,023,558.00 $ $ (602,236.00) $ (602,236.00) (7,576,515.00) $ 22,421,322.00 $ $ (419,205.00) ### (7,995,720.00) $ 22,002,117.00 $ $ 1,349,399.00 ### (6,646,321.00) $ 23,351,516.00 National University of Samoa Notes to the Financial Statements For the Year Ended 30 June 2015 1 General The National University of Samoa was created by an Act of Parliament in 1 upon the merger of Samoa Polytechnic and the National University of Sam of Samoa Act 2006. The National University of Samoa Act 2006 establishe and the Institute of Technology. The University is located at the Lepapaiga Toomatagi, Apia. 2 Summary of significant accounting policies a Statement of Compliance These financial statements have been prepared in accordance with the re Act 2001 and the International Financial Reporting Standard issued by the b Basis of Preparation Historical costs basis c Functional and presentation currency Samoan tala (WST) d Foreign Currency Transactions e Educational institution mergers Accounted for by combining the net identifiable fair value of assets and co There was no cost consideration involved in the merger nor is there any g f Property, Plant and Equipments Items of PPE are measured at cost less accumulated depreciation and imp Cost includes expenditures that are directly attributable to the acquisition the cost of materials and direct labour, any other costs directly attributab intended use and the costs of dismantling and removing the items and re Purchased software that is integral to the functionality of the related equip The costs of replacing part of an item of PPE is recognised in the carrying benefits embodied with that part will flow to the University and its cost ca of the PPE are recognised in profit and loss as incurred. an Act of Parliament in 1996 that was recently repealed tional University of Samoa under the new National University moa Act 2006 established the Institute of Higher Education ocated at the Lepapaigalagala Campus in the village of accordance with the requirements of the Public Finance Management Standard issued by the IASB. ir value of assets and contingent liabilities at the date of the merger. erger nor is there any goodwill acquired as part of the merger. ed depreciation and impairment losses. utable to the acquisition of assets. The cost of self constructed assets includes the costs directly attributable to bringing the asset into working condition for its moving the items and restoring the site on which they are located. ality of the related equipment is capitalised as part of that equipment. ognised in the carrying amount of the item if it is probable that the future economic niversity and its cost can be measured reliably. The costs of the day to day servicing