GRIPS Financial Report 2014
GRIPS Financial Report 2014 –outline-

Budget and Accounting Division

－Contents－

1. Financial Operation and PDCA Cycle

1

2. Financial Highlights for Fiscal 2013

2

3. Outline of Financial Statements
・Balance Sheet

4・Profit and Loss Statement

6

・Cash Flow Statement

8・National University Corporation Business
Operation Cost Statement

9・Earnings Statement10

4. Financial Information on Management (Analysis Using
Financial Indicators)

12

Financial Operation and PDCA Cycle◯ In financial operation, the budget should be accurately compiled and executed in line with confirmation andevaluation.

Feedback
Medium-term goals and plans(six years)

Evaluation (Minister of
Education, Culture, Sports,
Science and Technology, etc.)

Annual plan (each fiscal year)

Audit (auditor-secretary,
accounting auditor, etc.)

Compilation of GRIPS budget

Execution of budget andsettlement of accounts-1-

Financial Highlights for Fiscal 2013

Financial Conditions including Land and Building Holding, Investment from the Government, andBorrowings at the End of Fiscal 2013
- Outline and component ratio of the balance sheet for fiscal 2013 (as of March 31, 2014)◯The assets at the end of fiscal
2013 were 27.629 billion yen(down 146 million yen from theprevious fiscal year), the liabilities
were 4.843 billion yen (down 561
million yen), and total net assets
were 22.786 billion yen (up 415
million yen).

[Assets]¥27.6 billion（down 0.5%）◯About 80% of the property (assets) necessary for conducting theoperations of GRIPS was mainly accounted for by investment from thegovernment (net assets), and the remaining 20% was composed ofsubsidies from the government, borrowings, donations, etc. (liabilities).

[Liabilities and net
assets]¥4.8 billion/¥22.8 billion(down 10.4%/up 1.9%)※
Financial Operation Conditions for Fiscal 2013 (Amounts Received and Spent*)- Outline and component ratio of ordinary revenues and ordinary expenses for fiscal 2013 (April 1, 2013 – March 31, 2014

◯The ordinary revenues at the end of fiscal 2013 were 2.935
billion yen (up 94 million yen from the previous fiscal year), andthe ordinary expenses were 2.838 billion yen (up 112 million yen).
The net profit for the current fiscal year, which adds temporary
losses to this balance, was 97 million yen (down 17 million yen).
◯Income from government subsidies for
management expenses accounts for about
66% of the ordinary revenues, and income
from tuition fees, etc. accounts for 8%.
Income from contracted research, subsidies,and donations accounts for 20%.
◯With regard to ordinary expenses, 48%
consists of personnel expenses, about 30%
consists of education and researchexpenses (education expenses, researchexpenses, and expenses for education andresearch support), and 10% consists ofgeneral and administrative expenses.

[Ordinary
revenues]¥2.9 billion(up 3.3%)[Ordinary
expenses]¥2.8 billion(up 4.1%)* National university corporations cannot immediately record received government subsidies for management expenses,
tuition fees, constructed research, subsidies, and donations as revenues.
These funds are once recorded as debts, and then used as expenditures of education research activities and transferred torevenues in accordance with the progression of corporation businesses. This is referred to as monetization.
The amount of income and that of monetization in each fiscal year may differ because all of the received funds (funds
recorded as debts) are not necessarily monetized during such fiscal year.

-2-

Financial Highlights for Fiscal 2013

Major financial injection from thegovernment

Income from government subsidies for management expenses◯The amount of subsidies granted in fiscal 2013 was 2.07 billion yen (about 85% of income from government subsidies for
management expenses) <including -60 million yen due to the influence of the Act on Special Measures for Salaries>.
◯It has decreased by an average of about 15 million yen per year due to the efficiency factor (decreased by 1% year-on-year).

Million yen

Million yen* The above figure shows annual changes in general subsidies for
management expenses (basic subsidies for management expenses) andspecial allowance (allowance for special projects, etc.). (Figures for 20062013 are actual results and those for 2014 are on a budgetary basis.)* The above figure shows annual changes in special factor allowance(retirement allowance, PFI maintenance and management expenses, etc.)
among government subsidies for management expenses. (Figures for
2006-2013 are actual results and that for 2014 is on a budgetary basis.)

Payment from students
and exemption system

Payment from students

Million yen◯The amount of payment from students is about 0.2 billion yen every
year as indicated in the figure to the right (about 9% of income from“government subsidies for management expenses” and “tuition fees”).
* The amount of payment from students should be decided by each corporation withina certain limit based on the standard amount under the Ministerial Ordinance on
Tuition and Other Expenses at National Universities, etc. (Unit tuition fee (annual
amount): 535,800 yen)

Tuition exemption system
Total number of the eligible students for tuition exemption in fiscal 2013 was 58, and the amount of exemption was 16
million yen, equivalent to 7.7% of the amount of tuition fees subject to be collected.

外部資金受入Acceptanceof external funds◯The amount of acceptance of external funds(excluding grant-in-aid for scientific researchand subsidies) in fiscal 2013 was 0.35 billion
yen (increased to 156.9% compared withfiscal 2005).
◯The amount of acceptance of external funds
including grant-in-aid for scientific researchand subsidies was 0.99 billion yen.
(increased to 244.6% compared with fiscal
2005)

Million yen

External funds include contracted researchand donations from companies, and contracted
projects applied to the Ministry of Education,
Culture, Sports, Science and Technology(MEXT) and other ministries. These funds are
becoming more important for the vitalization of
education and research and the stabilization ofmanagement amid declining basic subsidies for
management expenses.

-3-Outline of Financial Statements

Balance Sheet
The balance sheet indicates the balance of assets, liabilities and net assets at the end of the fiscal year, andshows the financial conditions of the GRIPS.
Liabilities and net assets indicate the source of funding, and assets indicate operation forms of funds raised.
Assets:Fixed assets including land and buildings account for the majority of assets.
Liabilities: PFI liabilities for which the government takes steps to cover the serving costs account for 56% ofliabilities, and debts that arose from the unique accounting of national university corporations,such as asset collateral liabilities, account for 29%. However, GRIPS works for stable financial
management through systematic payment, etc.
Net assets: Net assets account for 82% of the total of liabilities and net assets, 77% of which was accounted
for by government equity.

■Breakdown of Assets, Liabilities, and Net Assets in Fiscal 2013

Books
3.2%

AssetsBuildings/
Structures
22.4%

Land
66.4%

Liabilities andnet assets

Fixedliabilities
11.7%

Liabilities

Current
assets7.2%

Machinery
Other fixed assets
equipment/Tools
0.2%
and equipment
0.5%
Reserves for education andCapital surplus
research, etc.
16.7%
2.0%

Current liabilities
5.8%

Government’s equity
63.4%

Net assets-4-

Unappropriatedincome for thecurrent year
0.4%Outline of Financial Statements■Balance Sheet
Item(Unit: million yen)
Increase/
Decrease

Fiscal 2012

Fiscal 2013

27,77527,629( 146)

26,08325,648( 435)

Land

18,351

18,3510

Buildings

6,364

6,097

( 267)

Structures

111

96

( 15)

Machinery equipment

5

4

( 1)

Tools and equipment

208

141

( 67)

Books

870

894

24

Software174

64( 109)

1

1

0

1,692

1,981

289

1,526

1,772

246

Accrued income for payment
from students

2

2

0

Other accrued income

159

205

46

Other current assets

5

1

( 3)

5,404

4,844

( 561)

3,955

3,239

( 717)

1,067

1,091

25

168

8

( 160)

PFI liabilities

2,720

2,139

( 581)

Current liabilities

1,449

1,605

156

Liabilities from government
subsidies for management
expenses

50

135

84

Donation liabilities

131

163

33

PFI liabilities to be repaid within
a year

569

581

13

Accounts payable

431

459

28

Other current liabilities

269

267

( 2)

22,371

22,786

415

Government equity

17,507

17,5070

Capital surplus

4,300

4,618

318

Retained earnings

564

661

97

Reserve carried forward during
former medium-term target period

148

148

0

Reserves for education andresearch

301

416

114

97

( 17)

AssetsFixed assets

Telephone rights
Current assets
Cash and deposits

Liabilities
Fixed liabilities
Asset collateral liabilities
Long-term accounts
payableNet assets

Unappropriated income for the114
current year
* Total amounts and other amounts may differ due to rounding up to the nearest unit.

-5-

Decrease due to depreciation

Increase due to making a net profit
for the current year

Decrease due to fulfillment of
obligation based on the PFI projectcontract

Government subsidies for
management expenses, tuition fees paidby students, and donations fromcompanies are recorded as current
liabilities, not as revenues, at the time ofreceipt.
This is caused by having theobligations to implement certain projects
match the amounts of subsidies andamounts received, including education
and research. These obligations aremonetized in accordance with the lapseof the time and the amount expended
for the projects.

Increase due to receipt of facilities
improvement subsidies (for PFI
projects), etc.

Increase due to recording ofreserve for specific purposesOutline of Financial Statements■Breakdown of Ordinary Expenses and Ordinary
Revenues in Fiscal 2013
Profit and Loss Statement

Ordinary expenses

The profit and loss statementshows how many expenses andrevenues
arose
duringanaccounting period. It illustrates thesituations of what types of expenses
are caused by the implementation of
education and research by national
university corporations, then whattypes of revenues arose throughthese expenses, and as a result,what types of profits or losses arose.
It excludes subsidies for scientificresearch and other expenses
granted for individual researchers.

Ordinary revenues

What is the difference between profit
and income?
Profit/expense: accrual basis accounting
Income/expenditure: cash basis accounting
Items as profit, but not as income(Ex.) Accrued income, such as interest
Items as income, but not as profit(Ex.) Deferred income, such as a deposit
Items as expenditure, but not as expenses(Ex.) Expenses in advance, such as rent
Items as expenses, but not as expenditure(Ex.) Allowance for depreciation-6-

Outline of Financial Statements■Profit and Loss Statement
Item(Unit: million yen)
Increase/decrease

Fiscal 2012

Fiscal 2013

2,727

2,838

112

2,343

2,498

154

Education expenses

270

267

( 3)

Research expenses

263

345

82

Expenses for education andresearch support

240

243

3

Contracted researchexpenses, etc.

98

182

84

Contracted project
expenses, etc.

105

98

( 6)

Personnel expenses

1,368

1,363

( 5)

General and administrative
expenses

303

275

( 28)

Financial expenses

80

65

( 15)

2,841

2,935

94

1,949

1,942

( 7)

Ordinary expenses
Operating expenses

Ordinary revenues
Revenues from government
subsidies for management
expenses

Revenues from tuition fees

233

227

( 6)

Revenues from contracted
research, etc.

101

192

92

Revenues from contracted
project, etc.

138

129

( 9)

Revenues from subsidies

238

259

20

Revenues donations

16

22

6

Reversal of asset collateralliabilities

31

30

( 1)

Financial revenues

0

1

1

Miscellaneous gains

135

134

( 1)

Ordinary income

114

97

( 17)

Temporary losses

0

1

0

Temporary income

0

1

0

Net profit for the current year

114

97

( 17)

Gross income for the current
year

114

97

( 17)

* Total amounts and other amounts may differ due to rounding up to the nearest unit.

-7-

Decrease due to the change of
payment processing of TIEC rent, etc.

Increase in the amount of subsidies
granted, etc.

Increase in expenses due to theprogress of research, etc.

Decrease in retirement allowance, etc.

Decrease in PFI expenses, and decrease
due to the change of payment processingof staff residence rent, etc.

Decrease in monetized amount due tothe decrease in retirement allowance,
etc.

Increase in expenses due to theprogress of research, etc.

Increase in monetized amount due tothe increase in subsidies

Outline of Financial Statements
Cash Flow Statement
The cash flow statement indicates, as a certain activity, classifications focusing on cash flow during
an accounting year. It indicates cash flow and surplus or deficit, which are not read from the balance
sheet or profit and loss statement.
While the profit and loss statement shows expenses and revenues generated during the current
year, it recognizes and measures the fact of receipt and payment of cash including addition ofborrowing and investment irrelevant to expenses and revenues, and is indicated in the classificationof income (plus) or expenditure (minus: ( ) ).

■Cash Flow Statement
Indicating cash flow of eachproject income or expenditure
regarding the implementation ofbusinesses such as education
and research

Recording a balance of theamount received and paid

Showing cash flow including
gain of fixed assets and fundmanagement for establishingmanagement bases for the
futureItem

Showing increase or decreasein cash during the current year.
The increase in cash during thecurrent year is caused by adecrease in investment
activities.
Cash at end of year excludes
time deposits, therefore, it
differs from cash and deposits
in the balance sheet.

Increase/
Decrease

Fiscal 2012

Fiscal 2013

376

481

105

( 788)( 802)( 15)

Payments for personnel expenses( 1,384)( 1,477)

Payments for other businesses( 302)( 240)

62

Income from government subsidies for
management expenses

1,957

2,065

108

Income from payments from students

216

210

(

Income from contracted research, contracted
projects, etc.

297

259

( 37)

Income from subsidies, etc.

244

270

25

Income from donations

19

49

29

Income from other businesses

142

132

Income from deposits received

( 25)

16

41

Accounts paid into national treasury

0

0

0

II Cash flow from investment activities

294

478

184

Payments for purchases of tangible assets
and intangible assets

( 47)

( 48)

Income from repayment of time deposit

30

250

( 250)( 300)

Income from facility expenses

561

575

14

Interest and dividends received

0

1

0

III Cash flow from financial activities( 762)( 763)

Redemption paid of lease liabilities( 125)( 123)

Redemption paid of PFI liabilities( 685)( 569)

Interest paid

( 76)

(

I Cash flow from business activities
Payments for purchases of raw materials, products,
or services

Payments for deposit to time deposit

Showing cash flow regarding
repayment of borrowing, etc.

(Unit: million yen)

(

93)

(

(

6)

9)

1)
220

(

50)

(

1)
2

(

8)

72)

5

0

0

0

V Increase/decrease in cash

( 92)

196

288

VI Cash at beginning of year

1,368

1,276

VII Cash at end of year

1,276

1,472

IV Effect of exchange rate changes on cash

* Total amounts and other amounts may differ due to rounding up to the nearest unit.

-8-

(

92)
196

Outline of Financial Statements
National University Corporation Business Operation Cost Statement
This statement shows how many of the costs spent for business management of GRIPS,
including education and research, were taxpayer-funded as “national university corporation
business operation cost.”
This statement is only prepared by incorporated administrative agencies and national
university corporations, not by private companies.
It excludes subsidies for scientific research and other expenses granted for individual
researchers.
■National University Corporation Business Operation Cost Statement(Unit: million yen)
Item

Increase/decrease

Fiscal 2012

Fiscal 2013

I Business costs

2,132

2,191

59

(1) Costs in the profit and loss statement

2,727

2,839

112

2,343

2,498

154

General and administrative expenses

303

275

( 28)

Financial expenses

80

65

( 15)

Temporary losses

1

1

0

(2) (Deduction) Self-income, etc.

( 595)( 648)( 53)

Revenues from tuition fees

( 164)( 160)

3

Revenues from admission fees

(

62)

(

60)

2

Revenues from application fees

(

7)

(

7)

0

Revenues from contracted research, etc.

( 101)( 192)( 92)

Revenues from contracted projects, etc.

( 138)( 129)

9

Revenues from donations

(

16)

(

22)

(

6)

Financial revenues

(

0)

(

1)

(

0)

Miscellaneous gains( 107)

(

74)

0

(

2)

Operating expenses

Reversal of government subsidies for asset
collateral management expenses

33
(

(

1)

(

1)

0

Temporary profits

(

0)

(

0)

0

257

257

0

III Estimated amount increased in bonuses
outside allowance

0

5

5

IV Estimated amount increased in retirement
benefits outside allowance

109

24

V Opportunity costs

121

141

19

0

0

0

121

141

19

Opportunity costs of loan transaction with thenational and local governments at no or reduced
chargeGovernment-funded opportunity costs(

VII National university corporation business operation
cost

85)

0

VI (Deduction) Payment into national treasury

2,619

2,617

* Total amounts and other amounts may differ due to rounding up to the nearest unit.

-9-(

Showing the non-taxpayerfunded revenues

Showing the depreciationequivalent of nonprofitable assets

2)

Reversal of asset collateral donations

II Depreciation equivalent outside of profit andloss

Showing the costequivalent in the profit andloss statement from which
the revenues from selfincome were deducted2)

Showing the estimated amountincreased in allowance forbonuses financed by thegovernment subsidies for
management expenses(recording the difference fromthe previous year)

Showing the estimated amountincreased in allowance forretirement benefits financed by
the government subsidies for
management expenses(recording the difference fromthe previous year)

Outline of Financial Statements

Earnings Statement
This statement should be prepared pursuant to the accounting recognition standard (cash basis andsettlement period) in Japan, and shows prospects and results of management conditions of national university
corporations.
Specifically, it compares budget amounts in the annual plan (calculated based on budget amounts andothers under the estimation of government subsidies for management expenses presented from MEXT) withsettlement amounts that were actually executed.
It excludes subsidies for scientific research and other expenses granted for individual researchers.

■Breakdown of Settlement Amounts of Income and Expenditure in Fiscal 2013
IncomeExpenditure-10-Outline of Financial Statements■Earnings Statement(Unit: million yen)
BudgetamountSettlement
amount

2,065

2,065

0

575

575

0

0

274

274

342

361

19

Income from tuition fees, admission fees,
and application fees

218

227

9

Miscellaneous income

124

134

10

Income from industry-university collaboration
research, and income from donations, etc.

350

399

49

Reversal of reserve for specific purposes

62

0

( 62)

3,393

3,674

281

2,469

2,237

( 232)

575

575

0

0

274

274

Industry-university collaboration researchexpenses and donation project expenses, etc.

350

296

( 53)

Total

3,393

3,382

( 11)

Item

Increase/decrease[Income]Government subsidies for management expenses

Facilities improvement subsidies
Income from subsidies, etc.
Self-income

Total

Increase due to gaining a project
covered by the government subsidy

Increase due to making efforts togain contracted research, etc. fromincorporated administrative
agencies, etc.

Decrease due to not drawing down
the reserve for specific purposes[Expenditure]
Operating expenses
Education and research expenses
Facilities improvement expenses
Subsidies, etc.

* Total amounts and other amounts may differ due to rounding up to the nearest unit.

-11-

Decrease due to a reduction in
education and research expenses

Increase due to gaining a project
covered by the government
subsidy

Decrease in monetized amount due
to the progress of research, etc.

Financial Information on Management■Analysis Using Financial Indicators

Financial analysis
Financial analysis is a way to evaluate and assess the management of national university corporations by
preparing numerical indicators using data including financial statements for stakeholders of national university
corporations to gain necessary information for decision making concerning such national university corporations.

Financial indicators used for financial analysis are roughly classified as follows.

Soundness/Stability

Efficiency

ActivityIs the financial soundness for providing continuous andstable education and research secured? (“Current
ratio”)Is the management efficiently conducted?
(“Personnel expenses ratio,” “General andadministrative expenses ratio”)
Are the education and research activities conducted at
an appropriate level?
“Ratio of operating expenses to research expenses,” “Ratio of operating expenses to
education expenses,” “Ratio of operating expenses to expenses for education and researchsupport,” “Research expenses per faculty,” “Education expenses per student”

Expansivity

Are the financial resources as a university stable bysecuring various funds (external funds)? (“Externalfunds ratio”)

Profitability

Are the revenues that match the expenses secured?
(“Ordinary income ratio”)-12-Financial Information on Management

Financial Indicators between Fiscal 2007 and Fiscal 2013
Fiscal year
2007

2008

2009

2010

2011

2012

2013

1. Current ratio(current assets ÷current liabilities)

178.7%

187.6%

115.0%

92.9%

107.5%

116.8%

123.5%

2. Personnel expenses ratio

64.8%

61.2%

58.7%

59.9%

58.1%

58.4%

54.6%

15.4%

15.6%

17.8%

12.4%

14.4%

12.9%

11.0%

8.4%

13.7%

11.7%

9.2%

10.8%

11.2%

13.8%

Financial indicator(personnel expenses ÷operating expenses)

3. General and administrative expenses ratio(general and administrative expenses ÷operating
expenses)

4. Ratio of operating expenses to research expenses(research expenses ÷operating expenses)

5. Research expenses per faculty

2,162

3,875

3,619

3,124

3,128

3,460

4,314

thousand yen

thousand yen

thousand yen

thousand yen

thousand yen

thousand yen

thousand yen

2.6%

8.2%

11.0%

10.7%

10.9%

11.5%

10.7%

(research expenses ÷number of faculty)

6. Ratio of operating expenses to education expenses(education expenses ÷operating expenses)

169

537

705

645

583

663

645

thousand yen

thousand yen

thousand yen

thousand yen

thousand yen

thousand yen

thousand yen

education and research support(expenses for education and research support ÷
operating expenses)

12.4%

10.0%

9.0%

9.1%

10.2%

10.3%

9.7%

9. External funds ratio ((revenues from contracted

10.2%

7.9%

10.1%

12.4%

11.2%

9.0%

11.7%

14.3%

6.0%

1.6%

2.3%

7.4%

4.0%

3.3%

7. Education expenses per student(education expenses ÷number of students)

8. Ratio of operating expenses to expenses forresearch, etc. ＋ revenues from contracted projects, etc.
＋ revenues from donations) ÷ordinary revenues)

10. Ordinary income ratio(ordinary income ÷ ordinary revenues)(Legend)Better than the previous year (an increase in points from the previous year that is desirable in the financial indicators)
Better than the previous year (a decrease in points from the previous year that is desirable in the financial indicators)
Worse than the previous year (an increase in points from the previous year that is not desirable in the financial indicators)
Worse than the previous year (a decrease in points from the previous year that is not desirable in the financial indicators)-13-

[Contact] Administration and Budget Team
Budget and Accounting Division
Administrative Bureau
TEL 03-6439-6024
FAX 03-6439-6030
URL http://www.grips.ac.jp