Integrated Annual Report 2020-21 - University of Winchester by University of Winchester

Integrated Annual Report 2020-21 Year ending 31st July 2021

Our vision is to help shape a better world through everything we do, driven by the ambition, wisdom and impact of our students and staff.

University of Winchester

Our mission: to be a beacon of excellence in education, sustainability and social justice. We are a community committed to making a difference, passionate about seeing individuals and communities flourish.

Contents About us

Chair’s introduction

Vice-Chancellor foreword

Value creation model

Materiality

Strategic review incorporating the operational review

Financial review

Statement of Board of Governors’ responsibilities in respect of the strategic report, the directors’ report and the financial statements

Our Governors

Statement of corporate governance and internal control

Statement of internal controls

Independent auditor’s report to the Board of Governors

Financial statements

Statement of principal accounting policies

Notes to accounts

Administrative information

Integrated Annual Report 2020-21

University of Winchester At a glance

FINANCIAL HIGHLIGHTS (£M) Total Revenue

ACADEMIC STAFF (Headcount)

2020-21

84.4

2019-20

388 393 STUDENT NUMBERS (Headcount)

2019-20

2020-21

80.9

8,142 8,001

EBITDA* (£M)

PROFESSIONAL SERVICE STAFF (Headcount)

2020-21

16.3 2019-20

10.3 CAPITAL EXPENDITURE (£M)

2020-21

3.1

2019-20

564 553 STUDENT NUMBERS Total students (full-time equivalents)

89%

of students study full-time

are international students

16%

of students are postgraduates

2019-20

15.8

*EBITDA = earnings before interest, tax, depreciation and amortisation (and adjusting for capital grants released and changes to pension provision within staff costs as reported by the Office for Students).

University of Winchester

About us

We are a community bound by educational excellence, where people come together to be the difference and make the world better. We are the University for Sustainability and Social Justice. We are proud to be a special kind of university, where everything we do is driven by our values (outlined on page 12), a commitment to the United Nation’s Sustainable Development Goals (SDGs) and a passion for seeing individuals and communities flourish. Our principles are the pillars of our vision and include:

EDUCATIONAL EXCELLENCE Our core purpose is to deliver educational excellence. We believe in the value of education in its own right, and as a force for good in the world. Providing a distinctly valuesdriven higher education is our ethos. Depth in subject expertise is matched by depth of character development; breadth of knowledge is matched by breadth of concern with issues transcending those of self-interest; academic rigour is matched by respect and kindness towards all life; seriousness of study is matched by the fun and excitement of shared learning; and intellectual growth is matched by freedom for personal, emotional, spiritual, religious, and artistic growth.

SUSTAINABILITY

SOCIAL JUSTICE

To us, sustainability means living in harmony, acting with kindness, and caring for the planet and all living things, now and for future generations. This means we act responsibly, consider the wider implications of our actions, and strive to have a positive impact on the world. Our staff and students are engaged in the importance of sustainability and feel confident to engage with finding solutions to the world’s greatest challenges. We equip our students with the skills to make a difference in their future careers and enable staff and students to consider their individual and collective environmental and social impacts.

Our staff and students work together to make a real difference in the world around us. Together we uphold the dignity and wellbeing of others, whoever they are, regardless of background. As a University of Sanctuary, we continue to be a welcoming and safe place for refugees and asylum seekers. We work with the local community and global partners to create greater prosperity and reduce deprivation. In all of our operations, we are committed to the highest ethical and fair trading standards.

Integrated Annual Report 2020-21

Chair’s introduction

The year continued to be very challenging for all types of organisations around the world and the University of Winchester was no exception to that. Our academic staff and students managed extremely well with the ongoing challenges of online learning and working from home, ensuring Winchester did its best to protect everyone, as much as possible, from the pandemic. From Spring 2021, we focussed on establishing the best way to welcome students back to campus for the new academic year, so that they felt happy and safe studying at Winchester. The pandemic brought with it significant challenges and risks and the Board and Executive Leadership Team worked closely to maintain focus on our major risks. This included managing new circumstances with the majority of staff working from home, some staff on furlough for part of the year and the majority of students studying online from home.

Winchester like most organisations, faced loss of income as we could not undertake all of our normal activities. We invested considerably in supporting the wellbeing of our staff and students during this difficult time. The senior leaders managed that situation with great skill, turning out a much better financial position at year-end than had been expected at the start of the year.

Alan helped lead Winchester through a very successful growth period, including overseeing the construction of the West Downs Centre, as well as the significant and rapid adaptation required at the start of the pandemic. I am very honoured to have been selected to succeed Alan and am looking forward to working with my fellow Governors and the senior leaders.

Our Vice-Chancellor, Professor Joy Carter, retired in March 2021 after 15 years in the role. Professor Carter made a huge contribution to Winchester leading it through much change and success, including significant growth of student numbers and courses and enhancing our standing within the region. Our First Deputy Vice-Chancellor, the Reverend Professor Liz Stuart, has continued to lead the University as Vice-Chancellor from 1 April 2021 with great skill at a very challenging time.

Finally, I would like to express my huge gratitude to all the Winchester staff and our great leadership team for their dedication and resilience, and for ensuring our Winchester community spirit was maintained despite everything thrown at them from the pandemic. I would also like to thank my fellow Governors for their continuous and enormous support through a long period of disruption. I look forward to the new academic year which, hopefully, will bring a ‘new normal’ to our activities and enable us to continue our mission of providing excellent education and research.

I would like to pay tribute to my predecessor, Alan Lovell DL, who has chaired the Board of Governors for 5 years and stepped down at the end of his term on 31 July 2021.

MARY EDWARDS CHAIR OF BOARD OF GOVERNORS

University of Winchester

Vice-Chancellor foreword

The pandemic continued to cast its shadow over the last academic year, causing uncertainty and change. Most of our staff and students had to move back to online learning before Christmas. I am in awe of the resilience of our students and grateful for the agility of our staff who worked in impossibly difficult conditions to get students through their studies. I could not be prouder of them. Winchester continued to record relatively few Covid cases and we created a safe and secure campus.

came through in the feedback we received from final year students in the National Student Survey.

We did not get everything right. Communication is a challenge at the best of times, but we failed to keep an open and transparent line of communication with our students at key times. The work was being done in the background – for example developing policies to protect students’ grades from the impact of the pandemic – but we did not keep them sufficiently in the loop. This breakdown in communication

We are committed to improving the student experience with a firm focus on teaching excellence. We have already taken measures to reset our relationship with our student body, working closely with the Student Union, and I am confident we will return to our previously high student satisfaction scores. In July, we finally had the opportunity to celebrate the achievements of our students at graduation ceremonies in Winchester Cathedral. Over 2,000 graduands, whose ceremonies were postponed last autumn due to COVID-19 restrictions, graduated at in-person Covid-safe ceremonies with guests attending in-person and virtually. We were delighted to welcome Michelle Donelan, Minister of State for Higher and Further Education to the campus in

July. The Minister visited our growing Faculty of Health and Wellbeing, and met with students training to be teachers and nurses. We have an excellent team of staff right across the institution, committed to doing the best for our students and our community. This report demonstrates the sound organisation and management underpinning everything we do, including the strong financial position we are in even with the huge challenges presented by the pandemic. We continue to develop our ambitious and clear plans for a post-pandemic future which will see a demographic upturn and one in which we intend to focus firmly on our core business of delivering excellent education.

THE REVEREND PROFESSOR ELIZABETH STUART VICE-CHANCELLOR (DURING THE PERIOD 1 APRIL TO 31 DECEMBER 2021)

Integrated Annual Report 2020-21

Value creation model

We are committed to integrated thinking as part of our strategic plan and our drive for organisational excellence. We continue our journey to adopt the principles of integrated reporting in this year’s annual report. Our value creation model (VCM) is at the heart of our integrated thinking and reporting. Our model continuously evolves and our vignettes highlight our commitment to ensure we are sustaining and adding value for all our stakeholders.

Our VCM is at the centre of our strategic objectives, with sustainability, student and staff satisfaction and research and learning running through all the outputs. Over the last year, we have further embedded the UN SDGs within our strategic objectives and aligned them to the key outputs of our model.

HOW DO WE CREATE VALUE? We deliver impact for society and have a strategic target to foster stronger recruitment from groups currently under-represented in higher education, by working to raise aspirations and break down barriers to participate, such as those created by culture, geography, social and economic factors.

University of Winchester

HUMAN SOCIAL AND RELATIONSHIPS

INTELLECTUAL

NATURAL AND MANUFACTURED

FINANCIAL

INPUTS

OUTSTANDING CAMPUS

STUDENT-LED APPROACH

E CREATION VALU

VALUES IN ACTION

WE ARE A COMMUNITY COMMITTED TO MAKING A DIFFERENCE TO ALL LIFE AND THE PLANET.

TEACHING AND RESEARCH EXCELLENCE

BUSINESS EXCELLENCE

ETHICAL RESOURCE MANAGEMENT

OUTPUTS

BUSINESS EXCELLENCE AND GROWTH

9 15

12 17

ENVIRONMENTAL SUSTAINIBILITY

GRADUATE SUCCESS AND RESEARCH IMPACT

13 4

13 15 17

SOCIAL JUSTICE INDIVIDUALS MATTER

2 1

13 16

Number of corresponding UN Sustainable Development Goals

6 12 13

14 15

Integrated Annual Report 2020-21

Materiality

The interpretation of materiality in integrated reporting is multi-faceted, going well beyond financial materiality. In this Integrated Annual Report, we consider a matter to be material if it could substantively affect Winchester’s ability to create value in the short, medium or long term. The process of determining materiality is specific to Winchester and based on multi-stakeholder perspectives within the Higher Education (HE) sector. An emphasis on material matters improves strategic decision-making by limiting extraneous information and focusing disclosures on the core issues under Winchester’s control. This emphasis improves the quality of information available to

stakeholders and enables a more efficient and productive allocation of capital resources. In preparing the content for this integrated report, we established parameters within which we determined the materiality of matters by identifying their relevance, evaluating their importance and prioritising them based on relative importance. Judgement was used when deciding if, and to what extent, a detailed assessment was reported.

Embedding materiality determination into governance processes has enhanced the efficiency and effectiveness of decision-making and reporting, and links to Winchester’s Board and management discussions. In considering the materiality for this integrated report, Winchester considers all known matters at the time of signing the report, such as the political landscape, the student experience, institutional reputation, the impact of the COVID-19 pandemic, financial sustainability, the environment – including the 17 UN Sustainable Development Goals – and Winchester’s values. How material issues impact Winchester are signposted on the following page:

University of Winchester

MATERIAL ISSUE

THE STUDENT EXPERIENCE AND QUALITY EDUCATION Winchester understands the impact student experience has on future undergraduate and postgraduate recruitment in an increasingly competitive higher education market. In the recent National Student Survey (NSS), we achieved a disappointing overall satisfaction rating of 70%, which placed us 123rd out of 151 higher education institutions. This has revealed to us problems that we urgently need to address for our students. In the next academic year, we will relentlessly focus on enhancing our teaching quality as an integral element of the student experience.

THE ENVIRONMENTAL CRISIS The impact of climate change brought on by our detrimental impact on the planet has caused an unprecedented crisis. It encompasses numerous potentially catastrophic issues, from ozone depletion, air and water quality degradation to land contamination and biodiversity loss. We are one institution leading the sector by declaring a climate emergency and have set our target to be an institution with net-zero carbon emissions by 2025.

COVID-19 COVID-19 has continued to massively disrupt worldwide businesses and economies, and the higher education sector. In line with government advice, Winchester has continued to review our approach to COVID-19. Through our pandemic outbreak plan and incident management team, we have implemented several new policies and procedures to ensure the safety and wellbeing of all staff and students.

POLITICAL AND ECONOMIC ENVIRONMENT Winchester is concerned about the current political situation in Afghanistan and how it will impact our community. Uncertainty remains around immigration and the impact on EU student funding as well as the longer-term impact on research. Economic uncertainties resulting from the COVID-19 pandemic and the UK’s departure from the EU continue to compound challenges around financial sustainability within the sector.

COMMITMENT TO WINCHESTER’S VALUES AND THE SDGS We believe that the ability to hold true to our values is especially important during a time of political and economic uncertainty within an increasingly competitive market. These values are the bedrock of the institution and underpin our unique position as a leading values-driven institution within the higher education sector.

Integrated Annual Report 2020-21

Our values

Individuals matter We’re passionate about seeing staff and students succeed and flourish, so they feel encouraged to help others and empowered to make a real difference in the world. To achieve this, we seek to provide a challenging and supportive environment that encourages ambition, nurtures the embrace of equality, diversity and inclusivity, develops wisdom for a fulfilling life and embeds the knowledge needed for a successful career. Our staff and students will have the resilience and resourcefulness to seize the opportunities and face the challenges of life. We are committed to working globally to fight for equality, integrity and justice. Together, we will uphold the dignity and wellbeing of others, whoever they are and whatever their background.

Compassion We love and respect the planet and all life. In alignment with the UN Sustainable Development Goals, we strive to meet the needs of the present without compromising the ability of future generations to meet their own needs. We seek to nurture a love and value for all life and the planet, and challenge all staff and students to adopt this as second nature. Staff and students are empowered to change the world for the better, challenge convention with compassion and stand up for what they believe to be true.

Spirituality Together, we aim to explore the mysteries of life and grow wisdom and love. We celebrate our Anglican Christian foundation and welcome people of all faiths and none. In a world in which religion is often associated with exclusivity and anti-intellectualism, we seek to model ways of being religious that are inclusive and intellectually robust. We believe that everyone should be encouraged to express themselves through a unique collage of values, disciplines and practices. Our staff and students will have the opportunity to experience and reflect on the creativity, beauty and compassion in life.

University of Winchester

Our faculties

We currently have a wide range of undergraduate and postgraduate courses delivered across five faculties, each led by a separate Dean and faculty admin support. FACULTY OF ARTS The Faculty of Arts comprises three academic departments: English, Creative Writing and American Studies, the School of Media and Film, and Performing Arts. Rigorous, creative programmes provide handson, fulfilling student experiences and an outstanding foundation for professional life after graduation.

FACULTY OF BUSINESS, LAW AND DIGITAL TECHNOLOGIES This faculty spans a wide range of disciplines including Accounting, Business Management, Digital Media, Enterprise, Event Management, Fashion, Law, Logistics, Global Issues, Marketing, Politics, Retail, and Supply Chain Management. A number of courses can be combined into coherent study programmes. The faculty are proud to support and share extensive links with the professional community, ensuring

that what we teach is relevant and that graduates possess essential employability skills.

FACULTY OF EDUCATION This faculty is home to two departments – Education Studies and Liberal Arts and the Institute of Education (formerly the Department of Teacher Development). The faculty offers a wide range of dynamic courses specifically tailored to meet the needs of professions. These programmes are consistently rated highly in internal and national student satisfaction surveys. Teaching staff have both practical know-how and academic expertise, with many years of subject-area experience, with the faculty consistently receiving high ratings from students. We are driven by, and dedicated to, inspirational learning, combining teaching with work placements and impactful research.

FACULTY OF HUMANITIES AND SOCIAL SCIENCES This faculty offers research-led teaching and outstanding support across numerous disciplines: Anthropology, Archaeology, Criminology, Forensic Studies, Geography, History, Politics, Psychology, Sociology, Theology and Religion, and Philosophy. The faculty is driven by passionate inquiry into what makes us human, and members are actively engaged in impactful research through our research centres, consultancies and public engagement.

FACULTY OF HEALTH AND WELLBEING The Faculty of Health and Wellbeing is home to our students studying to attain the following qualifications: BSc (Hons) Physiotherapy, BN (Hons) Nursing (Adult), BA (Hons) Animal Welfare and Society, BSc (Hons) Social Work and BSc (Hons) Sport and Exercise Science. This follows our pledge between the University and Hampshire Hospitals NHS Foundation Trust to work together to help address the growing demand for healthcare professionals in the region. From this partnership, students will gain access to cuttingedge medical equipment, on-thejob training and teaching spaces within the Royal Hampshire County Hospital in Winchester, Andover and Basingstoke.

Integrated Annual Report 2020-21

Our stakeholders

As a university, we work closely and constantly with a wide range of stakeholders and partners. Our primary stakeholders are the students, both undergraduate and postgraduate, whom we help to progress onto future thriving lives and careers. They are diverse in their backgrounds, interests, programmes of study and future aspirations. Our student stakeholders also include future students and potential higher education (HE) students in general. A key plank of our work is widening participation in HE among underrepresented groups.

TS EN D U ST

FUND IN AND REG G B UL O AT

PEOPLE

S U P P LIE R S

Our Board plays an important nonexecutive role in Winchester’s success. Our Governors, who reflect our core values, are dedicated to the development of staff, student learning experience, Winchester’s growth and institutional value for money. We have an extensive range of partners, which include the Diocese of Winchester, Winchester Cathedral, Winchester Action on Climate Change, Compassion in World Farming, ‘feeder’ schools

Our Community Impact Strategy aligns with ‘serving the common good’, as stated in our mission. As well as the aforementioned local communities, we stand by our responsibility to the wider UK economy and society in widening participation of students from backgrounds who are underrepresented in HE. Research is important to Winchester, particularly its dissemination to local community groups.

We view research as being for the common good, not purely for academia, although topics and audiences can vary. For example, our Faculty of Arts is now hosting weekly classes at the youth theatre group at the Theatre Royal in Winchester. We also promote the undertaking and dissemination of research on specific topics, for example from the remits of the Centre for Climate Change Education and Communication (CCEC) and the Centre for Responsible Management. This sound approach to research dissemination with the local community helps us to expand our connections, develop research partnerships and promote our impact agenda. The diagram below identifies our key partners.

ES DI ORS

Our students and staff are integral to ensuring we continue to be a successful institution. We have various ways of engaging our internal stakeholders with our work and helping them shape what we do as an institution and how we do it. An example of this is the Student Academic Council, which meets several times a year. It consists of student representatives who advise our Executive Leadership Team (ELT) on matters relating to the student experience. We also work in partnership with the Student Union, ensuring that all students are represented in all key decisionmaking processes.

and colleges in the UK and abroad. We also work in partnership with the City of Winchester, Hampshire County Council and local businesses, charities, other educational establishments and community organisations. We consider our suppliers and external customers as important stakeholders for our value for money and income generation. We seek suppliers that align with our values and work with them to embed our environmental sustainability initiatives. We also have a broad and diverse range of community relationships with neighbours, including with the Hampshire Hospitals NHS Foundation Trust (HHFT), our local police force and Councillors, as well as with many others from the UK and further afield.

PA R

Y, IET Y A C S O NIT E N U M C O M M IR O N V N E

N T D

ERS

University of Winchester

Our strategy

Strategic review Our 2020-2030 strategic plan – launched before the COVID-19 Pandemic – is a key responsibility for the Executive Leadership Team (ELT), and our Board of Governors. As the pandemic emerged, both worked closely together to pivot to a short-term strategy of resilience, with a primary focus of managing the crisis within our community, to ensure the well-being of our students, our staff and our local community. This was followed by a focus on the transition to empowering recovery, concentrating on student retention and the 2021-22 recruitment cycle. Moving forward over the

next 6-12 months, Winchester intends to focus more heavily on excellence in teaching and enhancing the student experience. Further details on our Strategic Vision 2030 can be found on our website at www.winchester.ac.uk/about-us/ our-future/our-strategy.

GROWTH: CONTROLLED SUSTAINABLE GROWTH IN UNDERGRADUATE STUDENT NUMBERS AND QUALITY

FINANCIAL: STRONG FINANCIAL MANAGEMENT

We are maintaining sustained growth with student numbers, and at the time of signing these financial statements, the University is showing an increase in student applictions for 2022 entry, based on UCAS reporting.

Strong student demand and careful cost management have resulted in a healthy surplus of £5.0m and an increase in cash of £7.3m generated during the year. However, we are mindful that the pandemic is still very much with us and we continue to model the most challenging scenarios that the pandemic may introduce for 2021/22 financial year and beyond.

STUDENT AND GRADUATE SUCCESS

REPUTATION

We were delighted to be able to hold in-person graduation ceremonies during the summer. Over two weeks, 1,838 students graduated. HESA data also showed that we are joint 6th in the UK for our students either continuing into further study or employment.

Our international reputation has increased over the last two years and has resulted in a significant international recruitment increase of 35%.

Integrated Annual Report 2020-21

The United Nations Sustainable Development Goals (SDG) and Winchester’s impact We are proud to have been ranked second in the UK in the Times Higher Impact Rankings for UN SDG 4 – Quality Education. This reflects our groundbreaking work in sustainability and social justice in education. The following text illustrates our commitment to all of the UN’s SDGs.

University of Winchester

NO POVERTY COVID-19 has led to an additional 119–124 million people being pushed back into extreme poverty in 2020. The Student Union’s ‘Responsible Futures’ accreditation includes carrying out curriculum audits to demonstrate progress in embedding sustainability across the curriculum, including integration of SDGs at programme level. This includes analyses of how teaching addresses awareness of poverty and the identification of solutions.

ZERO HUNGER Worldwide, an additional 70–161 million people are likely to have experienced hunger in 2020 as a result of the pandemic. Our Business School research initiatives include Community Hunger Response-Ability: Learning Partnerships with Others, which examines austerity in cross-sector hunger partnerships, specifically addressing the absence of community within UK community-focused initiatives.

GOOD HEALTH AND WELLBEING 90% of countries are still reporting one or more disruptions to essential health services, and the impact of COVID-19 has not helped the stretch on these services. The Winchester Centre for Global Health (part of the Faculty for Health and Well-being) is a supporting partner in the Wessex Global Health Network, which shares good practice at local, national and international level.

QUALITY EDUCATION An additional 101 million or 9% of children in grades 1 through 8 fell below minimum reading proficiency levels in 2020. Research by the University of Winchester’s Centre for Real World Learning has led to shifts in public policy in education and changes to pedagogical / assessment practices both nationally and internationally regarding creativity.

GENDER EQUALITY Gender parity remains far off. Women make up only 25.6% of people in national governments, 36.3% of people in local government and 28.2% of people in managerial positions. Winchester’s Women in Digital Enterprise programme – which has supported 100 women in setting up and growing their businesses – is committed to identifying and implementing practical steps to help further reduce in the gender pay gap.

CLEAN WATER AND SANITATION 2.3 billion people live in water-stressed countries. Water consumption at the University of Winchester – per m2 of estate – has reduced by 34% since 2006/07, and water-saving devices are now installed in all new buildings and developments.

AFFORDABLE AND CLEAN ENERGY 759 million people lack access to electricity. Winchester has received a grant from the Public Sector Decarbonisation Scheme (PSDS) as part of a major capital investment programme by Winchester in innovative low carbon plant and equipment.

DECENT WORK AND ECONOMIC GROWTH The pandemic has led to the loss of the equivalent of 255 million full-time jobs worldwide. Winchester’s Social Mobility Pipeline to Degree Apprenticeships is initially focusing on care leavers; women aspiring to enter traditionally male-dominated occupations and leadership roles, women entrepreneurs, and underachieving males from white British low socioeconomic groups.

INDUSTRY, INNOVATION, AND INFRASTRUCTURE Global manufacturing production plummeted by 6.8% in 2020, with a 4% growth in mediumand high-tech products fuelling economic recovery. Winchester now has 13 fully electric vehicles in its growing fleet, resulting in a significant reduction in the amount of diesel and petrol being bought for campus vehicles, with annual reduction of 45% in 2019/20 and 74% in 2018/19.

Integrated Annual Report 2020-21

REDUCED INEQUALITIES The proportion of the global population who are refugees has more than doubled since 2010.

CLIMATE ACTION The climate crisis continues, largely unabated, with temperature increases continuing (1.2°C above pre-industrial levels in 2020).

Winchester received a Sanctuary Award from UK charity City of Sanctuary in recognition of its initiatives to welcome refugees and asylum seekers and support them in higher education study.

Academics, students and professional staff at all levels have taken part in the Carbon Literacy Project certified course in climate change and carbon literacy.

SUSTAINABLE CITIES AND COMMUNITIES 156 countries have developed national urban policies but only half are in the implementation stage. Winchester is the first UK university to secure green finance for campus development, with the new West Downs Centre well placed to achieve the Building Research Establishment Environmental Assessment Method (BREEAM) rating of ‘Excellent’.

RESPONSIBLE CONSUMPTION AND PRODUCTION Each person generates about 7.3kg of e-waste, which is not disposed of responsibly. Winchester has signed up to the Eco-Campus certification scheme which will include significantly increasing procurement from renewable sources and reduction of single-use plastics.

LIFE BELOW WATER Dead zones (areas that lack sufficient oxygen) are rising at an alarming rate, from 400 in 2008 to 700 in 2019. A research project of Winchester’s Business School – Broadly Engaging with Tranquillity Project – is examining how development can be sensitive to ecological, social and economic interests, whilst also providing enjoyment of the countryside and coastal areas.

LIFE ON LAND Dead Progress has been made towards sustainable forest management, but the world lost 100 million hectares of forest over two decades (2000-2020). Winchester’s Catering team secured a place in the 2020 Green Gown Awards for the inspiring catering initiative LIFE (Local, Independent, Fair and Ethical), which ensures commitment to compassion in animal welfare, reducing food miles and sustainable sourcing.

PEACE, JUSTICE AND STRONG INSTITUTIONS Only 82 countries had independent national human rights institutions in compliance with international standards in 2020. Winchester’s Business School was amongst the early signatories to the United Nations Principles of Responsible Management Education (PRME) Principles in 2007/8. As such, PRME has played a central role in informing strategies relating to teaching, research and external engagement since the very formation of the Business School.

PARTNERSHIPS FOR THE GOALS Nearly half of the global population – 3.7 billion people – are still not online. Winchester’s Flourishing Communities Framework captures the institution’s commitment to supporting students and staff to flourish and inspire them to use their energy and skills to contribute to improving local and global communities.

University of Winchester

Our transformational journey

We are amongst a handful of universities in the UK adding value to their reporting by incorporating the benefits of an integrated report for our wide-ranging stakeholders. As leaders in the UK Higher Education Sector for annual reporting, we are providing an exemplar for other public and private sector organisations. This is our fourth year of reporting under the guiding principles of integrated reporting, a process founded on integrated thinking, that seeks to address how Winchester generates value for its stakeholders over time, and presents related communications regarding our aspects of value creation. Integrated reporting has enabled Winchester to develop a new approach to stakeholder engagement. Consequently, this has led to improved relationships and enhanced our understanding of our strategic enablers. Adopting the framework has empowered us to broaden our perspectives, and better connect Winchester’s departments and faculties, to enable the successful delivery of our Strategic Plan. Our integrated report is a concise communication about how Winchester’s strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of value in the short, medium and long term. Our report differentiates itself from our previous reports by further embodying the six guiding principles of integrated reporting: focus and future • Strategic orientation – We provide an insight into our strategy and how it relates to Winchester’s ability to create value in the short, medium and long term.

of information – This • Connectivity report provides a holistic picture of the combination, interrelatedness and dependencies between the factors that affect Winchester’s ability to create value over time.

relationships – • Stakeholder We explain the nature and quality of Winchester’s relationships with its key stakeholders.

– We disclose • Materiality information about matters that

substantively affect Winchester’s ability to create value over time.

and completeness – • Reliability We have included all material

matters impacting Winchester’s ability to create value during the year ended 31 July 2021 in a balanced and concise way.

and • Consistency comparability – Our Integrated Annual Report is presented in a manner that allows for comparability with other providers in the HE sector and is consistent with previous years’ reports. This year we have enhanced our material issues with a clear and concise presentation of their content and impact on our performance. In this report, we have described how Winchester has created wider value and performed a vital role in society that benefits all of our stakeholders. We hope that this report portrays Winchester’s clear purpose and standing within its sector and how our added value benefits local, national and international communities.

Integrated Annual Report 2020-21

Some highlights from this year

Winchester hosted a range of online events including workshops, presentations and reading groups to celebrate Black History Month in October, giving staff and students the opportunity to increase their understanding of black culture and history.

Winchester was named as one of the UK’s top 50 training providers for its degree apprenticeship courses at the 2020 RateMyApprenticeship Awards.

Winchester hosted a Beacon of Hope event as the November lockdown was ending, to thank staff, students, the wider community, and the NHS and show a symbol of hope after what had been a hugely challenging year.

Winchester was ranked number two in the UK for its ground-breaking work in sustainability and social justice in education contributing to the UN’s SDG 4 – Quality Education.

Professor Joy Carter announced her retirement at the end of March 2021 after 15 successful years as Vice-Chancellor at Winchester.

We pledged support for the newlylaunched Winchester Cycling Charter – a statement of the benefits cycling can bring to a city, its businesses, schools and citizens through supporting local business, boosting economic productivity and contributing to workforce wellbeing.

University of Winchester

Winchester received the British Hedgehog Preservation Society’s Silver Accreditation for completing the second stage of a national campaign to make university campuses more hedgehog-friendly.

Winchester staff and students who volunteered with organisations across the city were celebrated at a special virtual ceremony for the University.

The Business School was awarded the Small Business Charter Award due to its innovative schemes to support small businesses and student entrepreneurship and its commitment to the local economy.

Demonstrating its commitment to tackling racial inequalities within the higher education sector, Winchester signed the Race Equality Charter, which aims to improve the representation, progression and success of minority ethnic staff and students within higher education.

Winchester was the first university to receive a Gold Eco Church award from Christian environmental charity A Rocha UK, for the sustainability work within its Chapel.

After graduation was postponed in October 2020 due to the Coronavirus pandemic, more than 2,000 students from the class of 2020, alongside their families and friends, were able to formally celebrate their academic achievements at graduation ceremonies throughout July 2021.

Integrated Annual Report 2020-21

Strategic review incorporating the operational review Business excellence and growth We are acutely aware of the responsibility we have to those who choose to invest in us, in particular students. We are committed to demonstrating to students how tuition fees contribute to the delivery of an excellent student experience. How we use money also matters, for example ethical investment forms an integral part of our values. We are mindful of the need to avoid undermining our

beliefs and ethos, by not providing capital to activities that are materially inconsistent with our values. Further analysis of how we strategically invest our financial capital is outlined within our Ethical Investment Policy.

Key performance indicators NSS OVERALL SATISFACTION %

ACCESS FOR STUDENTS FROM LOW-PARTICIPATION NEIGHBOURHOODS

70% We have seen a significant fall in overall satisfaction from 81.02% to 69.88%, an 11% decline, compared to a sector decline of 7.2%. We are working closely with the Student Union and colleagues to identify areas of concern from these results and urgently address these to improve the student experience from semester one onwards.

15% We continue our commitment to ensuring all students have an opportunity to study at university. Of our student community, 14.9% of our recruited students are from low-participation neighbourhoods. We have also exceeded our benchmarks and access targets.

University of Winchester

GRADUATE EMPLOYABILITY– NUMBER OF STUDENTS IN GRADUATE EMPLOYMENT OR FURTHER STUDY

90% While our employed or further study metric dropped from 92% to 90%, we remain joint 6th in the UK. We are also top in the region for employability or higher study.

FINANCIAL SURPLUS

£5.0 MILLION

Savings resulting from the reduction in student and staff activity over almost an entire academic year of lockdown have significantly improved the outturn forecast to a healthy surplus of £5.0m for the year.

REDUCTION IN SCOPE 1, 2 AND 3 EMMISSIONS PER M2

17% We have shown a significant reduction last year, with emissions dropping by 17%, putting us on target of achieving a reduction target of 65% by 2025.

Integrated Annual Report 2020-21

Understanding Winchester’s risks We define risk as the potential effects of uncertainty on achieving objectives, which can take the form of adverse consequences or unexpected opportunities. As with most institutions, risks are inherent in all activities, Winchester undertakes new risks in pursuit of its strategic objectives. Effective risk management is about ensuring all significant, relevant risks are understood and prioritised as part of standard management practice to increase the probability of successful outcomes, whilst protecting Winchester’s reputation and sustainability. To create longterm value, we must anticipate the risks threatening our institution, customers and stakeholders, whilst still capitalising on new opportunities offered by an ever-changing world.

We must maintain a dialogue with internal and external stakeholders to identify those risks and opportunities. These are illustrated in our Risk Register, which includes vital business and sector risks, as well as some specific to Winchester and key customers and stakeholders. Our Board of Governors has delegated authority to the Risk and Audit Committee to oversee risk management, including monitoring the Risk Register. This ongoing review enables Winchester to identify material issues that are most likely to affect value creation, strategic

objectives, service delivery and assets. We undertake a systematic and methodical identification of key risks and identify measures to mitigate them. Whilst risk cannot be completely eliminated, the approach of the Risk and Audit Committee is to be ‘risk aware’ rather than ‘risk adverse’, by taking intelligent risks to protect strategic objectives. Illustrated in this report is the most recent update of our Risk Register, presented to the Board of Governors on the 7th July 2021

University of Winchester

STUDENT EXPERIENCE AND WELLBEING

STUDENT RECRUITMENT

PANDEMIC

RISK AND RANKING

RISK DESCRIPTION

The risk that Winchester may be unable to respond appropriately if there is an outbreak of COVID-19 on campus.

RISK MANAGEMENT

The risk that Winchester fails to attract the required number of students to remain sustainable.

In response to the COVID-19 pandemic, we quickly adapted and mitigated our recruitment activities to be delivered online. Throughout the winter, we continued to replace traditional open days with new and enhanced virtual tours, faculty open events, video interviews, and additional videos of campus facilities. With lockdown lifted in spring, we reintroduced (ahead of our competitors) our Covid-secure, GPS and self-guided campus tours and physical ‘Visit Days’ in July for late 2021 applicants and prospective 2022 applicants.

The risk that Winchester sees a high level of student dissatisfaction and a significant decline in student wellbeing.

Student experience and wellbeing are incredibly important to us and during the pandemic continued to be a large concern. Consequently, we reviewed our mental wellbeing support offerings, student enquiries provision and student support policies to build on provision for the new 2021/22 academic year. This included the introduction of ‘Academic Safety Net’ and the extension of additional mental wellbeing support options. Whilst we also launched a ‘No Detriment’ policy, we acknowledge that there were issues with the length of time taken to approve and deploy the policy. With a strong focus on engagement across the institution, we continued to maintain a high level of communication with students through strategies including end of year engagement activities, evening and weekend help points for students in libraries, and formal weekly contact with selfisolating students. We are also progressing the development of a digital ‘one-stop shop’ for student enquiries and help.

Our Financial Capital

RELATED CAPITAL

With a pandemic outbreak plan and incident management team in place, we introduced and maintained several Covid-secure measures across campus. Along with our in-house track and trace system, regular Covid testing was made available to all staff and students through our on-site, asymptomatic test centre, and test at home kits. We implemented a flexible teaching approach with most teaching moving online and an interactive system to track and support overseas students. Also, we developed a HR policy for home working, with most staff having the ability to work at home if required. We continue to review our pandemic building layout and social distancing rules as part of our project rollout for preparing to deliver Semesters 1 and 2 of the 2021/22 academic year.

OUR CAPITALS

Our Intellectual Capital

RELATED RISK

OUR RISKS

Our Human Resources Capital

Our Social Capital

Our Natural and Operational Manufactured Risks Capital

Reputational Risks

Financial Risks

Compliance Risks

Strategic Risks

RISK AND RANKING

RISK MANAGEMENT

The risk that Winchester’s income decreases or costs/ provisions increase, and not being able to service Winchester’s debts or satisfy loan covenants sufficiently, putting the financial sustainability of Winchester at risk.

We have identified several mitigations for risks to our financial sustainability from the pandemic through scenario planning. We utilised all available forms of government support throughout the pandemic but still had to make radical costs reductions, by example through introducing a voluntary severance and restructuring scheme, and withdrawing our staff Pay Award for 2020/21. We have strategically invested in our Health and Wellbeing faculty courses and secured additional funding from the Office for Students from our new Engineering courses. We will continue to maintain a culture of cost-effective control and budget holder visibility by increasing our incomegenerating activities, bidding for public and private grants and taking a new approach to fundraising.

The risk that Winchester has poor rates of graduatelevel employability compared with the rest of the sector and competitors.

We published our new Graduate Employability and Higher Study Strategy in summer 2020, which outlined how we would ensure that all programmes of study focus on employability and have high graduate employability with our new Winchester Employability fund. We also opened a brand-new Careers and Opportunities Centre on our King Alfred Campus with another centre for our West Downs Campus planned. Through these centres, we will continue to offer a careers service to our students for life with dedicated career advice sessions and webinars, two ‘Employability Weeks’ a year, along with offering and promoting new graduate internship opportunities and work placement modules throughout different programmes.

The failure to deliver adequate IT infrastructure and services of a kind and quality sufficient to meet the expectations of students and staff

The sector continues to face cyber-attacks, which are exploiting out of service and end of life hardware. To help improve the student experience, we developed our mobile app and upgraded our wireless provision. To support home and distance working throughout the pandemic, we continued to offer our Laptop Loan scheme and instigated a widespread rollout of Microsoft Office 365 including Microsoft Teams. We have formed a new IT Governance Group to ensure we carefully consider the strategic and financial elements of any new system or approach and remain aware of gaps in staff IT knowledge which we will continue to address through increased levels of training.

The risk that the security of Winchester’s systems and network is compromised, leading to loss of critical services and/ or loss or exposure of sensitive data.

We continue to preserve our close professional relationship with JISC, working with JANet and Cyber teams to share knowledge, review and mitigate sector-wide IT, information, and data security threats. We also have in place a continued service contract with Orange Cyber Security. We are planning to move to a cloud-first strategy for new and existing technology from secure suppliers who are all certified to ISO 27001.

GRADUATE EMPLOYABILITY / HIGHER STUDY

FINANCIAL SUSTAINABILITY

RISK DESCRIPTION

IT INFRASTRUCTURE

Integrated Annual Report 2020-21

IT, INFORMATION AND DATA SECURITY

RELATED RISK

RELATED CAPITAL

RISK MANAGEMENT

The risk that Winchester is adversely impacted by government policy, funding, and rhetoric.

Our scenario planning and financial modelling efforts have been based on potential Governmental policy changes, and we have maintained close engagement with Universities UK and Guild HE to ensure we understand sector issues and they understand Winchester’s perspective on issues. Daily briefings from WonkHE and other sector sources have helped us to keep abreast of the changing policy landscape. Despite the Government rhetoric of ‘low value’ courses and policy pushes towards HE alternatives (such as FE and vocational training) that threatens to have a negative impact on our reputation, we have achieved Ofsted Outstanding recognition for all aspects of our education provision, an upward trend in PG ITE recruitment, and a national reputation for successful consortium leadership and delivery of PgCert SENCO accreditation. To offset the EU recruitment downturn, we have developed a new international recruitment strategy, specifically targeting the USA and Far East.

STAFF SATISFACTION AND WELLBEING

RISK AND RANKING

A decline in staff motivation and morale could seriously detriment Winchester’s performance by negatively impacting staff commitment, engagement, and willingness to expend discretionary effort.

The COVID-19 pandemic caused generalised anxiety, increased stress and mental health difficulties along with social isolation for some throughout prolonged home working periods. In response, we offered a varied and diverse range of staff wellbeing resources and events, an enhanced wellbeing platform with a huge range of shopping discounts, and a 24/7 employee helpline. We also introduced extra staff counselling provision, a reading week into each semester, and allowed our staff to carry up to 10 days of leave into the next year. Deans, Directors and HoDs were trained as Mental Health First Aiders and made occupational health referrals where appropriate, with assistance and guidance from HR made available to managers on handling people management issues. Work to improve the experience of hybrid teaching for both staff and students is ongoing, whilst a draft hybrid working policy for professional services staff implemented in September 2021.

The risk that Winchester has an Ofsted inspection at 2 days’ notice and is unprepared. The consequence of failing an Ofsted inspection will risk our ability to offer degree apprenticeship programmes, and our wider provision.

We have clarified the roles and responsibilities of the DA operational governance within Winchester and raised awareness of the requirements of an Ofsted inspection through resources offered by the UVAC and offering engaging development/training sessions for staff. We are also planning to review operational management of our degree apprenticeship provision, secure dedicated software support to enable professional-level relationship management and have employed a new staff member in the Quality office to provide support in undertaking a mock Ofsted review of our degree apprenticeships.

GOVERNMENT POLICY

RISK DESCRIPTION

OFSTED INSPECTION FOR DEGREE APPRENTICESHIPS

University of Winchester

RELATED RISK

RELATED CAPITAL

Integrated Annual Report 2020-21

Challenges

Recruitment

Afghanistan

There continues to be rising uncertainty in recruitment across the sector with the ongoing COVID-19 pandemic, and a demographic downturn set to last until 2022. With competitors using increasingly aggressive tactics to plug the decline in applications and firm acceptances as a result of COVID-19, and the sector receiving negative press due to the impact of the pandemic on student experience, we experienced a lower number of student applications and were unable to maintain strong levels of engagement with feeder schools. Lockdown restrictions prevented oncampus recruitment activities for most of the last academic year, so we had to quickly migrate our recruitment activities online, replacing traditional open days with new and enhanced virtual tours, faculty open events, video interviews, and additional videos of campus facilities. When lockdown was lifted in spring 2021, we reintroduced (ahead of our competitors) our Covid-secure, GPS and self-guided campus tours and physical ‘Visit Days’ in July for late 2021 applicants and prospective 2022 applicants.

We are deeply concerned about the current situation in Afghanistan and the impact it will have on members of our community, particularly those with family and friends still in the country. With other Universities of Sanctuary, we stand in solidarity with those impacted and with compassion will continue to welcome students, academics and researchers from Afghanistan seeking sanctuary. Working closely with our partners, we are supporting those at risk both in the UK and Afghanistan, helping our Afghan students however we can to get them to the UK safely. For any locally based refugees and asylum seekers, we are planning to offer English for Speakers of Other Languages provisions on-campus in partnership with the Winchester City of Sanctuary group.

University of Winchester

Financial Sustainability We took the opportunity in 2020/2021 to review our portfolio and undertook a voluntary severance scheme for academics in Autumn 2020. We continue to review our financial sustainability and develop our procurement function to ensure robust purchasing control and to maximise value for money. We are continuing to carefully monitor staff costs through control of staff recruitment and examining opportunities for restructuring.

The Business School will deliver the Help to Grow Management Programme which aims to upskill 30,000 SME leaders over the next 3 years through over £200m allocated by the UK Government.

Health and Wellbeing faculty applications increased by +29%.

NSS Scores Our results for the 2021 National Student Survey (NSS) were disappointing. Our overall student satisfaction dropped by just over 10%, placing 123rd out of 151 universities within the UK – 18 places lower than our 2020 ranking. As a matter of urgency, for the next academic year, we will have a strong focus on addressing our teaching quality as an integral part of the student experience.

The Faculty of Humanities and Social Sciences is developing a new architecture initiative with the Royal Institute of British Architects New Courses Group that aims to develop a course that will prepare future students for professional practice and employment within industry.

Integrated Annual Report 2020-21

Graduate success and research impact Behind everything we do is a drive to empower graduates to thrive in the future endeavours of their choice, and improving the resonance and social utility of our research. Building on a platform of excellent teaching, for which we have been awarded Silver in the Teaching Excellence Framework (TEF), we continue to increase our focus on graduate support, with initiatives such as ensuring our curriculum is designed with employability and career thinking as key considerations, through to introducing Careers Advice for Life. We are also dedicated to transformative research, which can be seen in our growing representation in the Research Excellence Framework (REF).

University of Winchester

Graduate employability

Our previous Employability Strategy has dramatically been replaced by our new Graduate Employability and Higher Study Strategy (2020-25). Its founding principle is that everyone is responsible for the graduate outcomes of our students. Previously, employability skills development was embedded within our vocational programmes such as Primary Education and Event Management. This was seen to be a vital aspect of the vocational programme’s success. Our new Strategy seeks to extend this provision to our non-vocational programmes such as those within Arts and Humanities and strives to embed employability within the curriculum more formally, to ensure that employability skills development is a key success indicator for these courses. Consequently, we extended this provision to our non-vocational programmes, which make up most of our curricular offering.

In 2020 we placed employability and career thinking at the foundation of all course design. The Careers Team led employability workshops for existing courses so that employability shifted from being considered as a single class or assessment into being an ever-present consideration for curriculum design and student learning. Academics are crucial to the success of our agenda. Our lecturers have become ambassadors for employability, as much as our Careers Advisers. From 2020 onwards, employability has been increasingly weaved throughout the curriculum and extracurricular opportunities. Previously, excluding our vocational

programmes, employability advice for the majority of our students consisted of well-run volunteering opportunities, one-to-one advice and in-class workshops. Moving into 2021, we revised our portfolio of opportunities for our students, evolving beyond workshops and one-to-one advice, which often led to high waiting times. Also, in September 2020, we established our Business Engagement Strategy Group to become employer-led, engaging with regional corporates and local SMEs. Their remit is to listen first, to ask employers to guide our Strategy and to create new partnerships for our students.

LIFELONG CAREERS ADVICE In 2020, we established Careers Advice for Life for our graduates and Alumni, enabling them to contact us beyond the original two-year window. We sent our first Careers Graduate Pack to all graduates of 2020, which included relevant resources and the offer of a summer webinar series to support them facing particular challenges due to COVID-19. Through our new Graduate Engagement Assistant Scheme, we now proactively support our unemployed and under-employed graduates, signposting them to resources, job board, and one-toone advice.

Integrated Annual Report 2020-21

Teaching excellence

We have been awarded Silver in the Teaching Excellence Framework (TEF). This result reflects the high quality of our teaching and the hard work of all staff and their tireless commitment to teaching excellence. We have one Principal Fellow, 27 Senior Fellows, 103 Fellows, and two Associate Fellows of the Higher Education Academy (now part of Advance HE) amongst our full-time staff. The TEF Panel and its judgement reflects, in particular, evidence of: contact hours, • Appropriate personalised learning through tutorials and buddy schemes that provide high levels of engagement, and commitment to learning and study from students.

institutional culture that • An facilitates excellent teaching

through professional development schemes, teaching awards, and promotion schemes.

institutional approach to • An developing high-quality physical

and digital resources, which together with student-based research projects, aid and enhance learning and develop study and research skills.

design and assessment • Course practices that provide sufficient

stretch to ensure most students make progress, and acquire knowledge, skills and understanding that are valued by employers, by working closely with industrial partners in course development and approval.

QUALITY ASSURANCE The Quality Assurance Agency (QAA) commended our commitment to the enhancement of our teaching. The following features of good practice were identified: extensive range of • The volunteering opportunities available to students, which enhance employability skills and career prospects.

widespread opportunities for • The students to engage in decision making through the Student Academic Council.

strength of partnerships • The between staff and students within the Student Fellows Scheme and that scheme’s effective contribution to enhancing the wider student experience.

wide engagement of students • The and staff in Winchester’s structured and values-driven approach to the enhancement of students’ learning opportunities.

TECHNOLOGY ENHANCED LEARNING Over the last 12 months the virtual learning environment, supported by the TEL team, has played a critical role in maintaining the consistency and quality of the learning experience during a period of upheaval and disruption.

The Canvas Learning Management System has been the primary mechanism for delivering curriculum content and supporting digital assessment, while new tools, such as Microsoft Teams, have been introduced to support live online teaching. Staff in academic and professional departments had to accommodate significant changes in terms of how they teach and deliver their services. The TEL team supported this with extensive live online training and self-paced ’just in time’ guidance. In the period running up to the start of the teaching year, 120 staff attended webinars and we delivered 248 hours of one-to-one training. Meanwhile, 497 individuals completed a dedicated Canvas-based course on online teaching. Recognised that students faced similar challenges, the TEL team created the Canvas Handbook for Students Course, which empowered students to improve their digital literacy in key areas relating to their studies. Their engagement is recognised using a system of badges and is recorded on their Higher Education Achievement Record (HEAR). Nearly 700 students have acquired at least 1 badge.

University of Winchester

Research and knowledge exchange RESEARCH GROWTH

RESEARCH INCOME

The major activity in Research and Knowledge Exchange in 2020-2021 was Winchester’s submission to the 2021 Research Excellence Framework (REF 2021). our submission outlined a substantial development in research and research infrastructure over previous submissions.

Winchester’s research income doubled, from £1.7million in REF 2014 to £3.6million in REF 2021.

Winchester increased the number of Units of Assessment (UoAs) submitted over the past two assessment exercises. In the 2008 Research Assessment Exercise (RAE), the precursor to the REF, six were entered. In REF 2014 this was increased to eight (33%), and in REF 2021 thirteen UoAs were submitted (an increase of 63% since 2014 and 117% since 2008). Successful investment in research was also demonstrated through the substantial increase in the number of staff being entered, with a headcount of 81 in REF 2014 rising to 179 in REF 2021 and Full Time Equivalent (FTE) of 72.58 in REF 2014 to 163.81 in REF 2021 – increases of 121% and 126% respectively.

GENDER EQUALITY IN RESEARCH In addition to increases in the number of UoAs and staff entered the REF2021, we also saw an improved gender balance in the submission.

SUBMITTED STAFF REF 2014 (HEADCOUNT)

SUBMITTED STAFF REF 2021 (HEADCOUNT)

MALE

48 (59.3%)

92 (51.4%)

FEMALE

33 (40.7%)

87 (48.6%)

TOTAL

81 (100%)

179 (100%)

KNOWLEDGE EXCHANGE FRAMEWORK 2021 saw the first results for the new Knowledge Exchange Framework (KEF), indicating several areas where action towards improvement is required. While there is no previous data for comparison, based on the results of the institutions Winchester was benchmarked against the institution’s portfolio. Four KEF areas have been designated as urgent priorities: Local Growth and Regeneration; Working with Business; Working with the Public and Third Sector; and Skills, Enterprise and Entrepreneurship. A KEF action plan has been put in place to ensure considerable improvement in these and other areas. However, as the KEF utilises the previous three years of data (in this case, 2017-18, 2018-19, and 2019-20), it is likely to take several years (KEF 24-25) until marked positive improvement can be achieved, especially as 2020-21 saw a decrease in KEF-related activity due to the pandemic.

Paul Sheeran is working with Coutts Bank to help improve our student’s employability within finance, economics and banking. Sheeran is now scoping with Coutts a series of events for students to help them to promote gender equality in banking, economics and finance.

The new Centre for Professional Learning in Education was established in 2021 to support and deliver CPD to regional schools. The unit is a vibrant community of PGR students encouraged to undertake projects with a specific impact on their professional contexts.

POSTGRADUATE RESEARCH Winchester achieved Research Degree Awarding Powers in 2008, leading to 59 completions in REF 2014 and 121 in REF 2021 (an increase of 105%). The Research Knowledge Exchange (RKE) Strategy – in place during the first part of the REF cycle – set a target to increase the number of PGR students from 160 to 225 by 2020. This was exceeded a year in advance, with 267 registered across the PhD programme and Winchester’s professional doctorates.

Vanessa Harbour made many virtual visits to primary and special needs schools for a Popup Festival, creating a variety of resources based on her 2018 young adults’ novel, Flight. The Book Council of Wales selected a copy of Flight to be provided for every primary school.

Integrated Annual Report 2020-21

Thriving individuals The dignity and wellbeing of individuals are vitally important, as is fomenting a positive working environment for both staff and students. Never more so than during the COVID-19 pandemic. From March 2020, we worked to try to ensure the health and safety of our staff and students, as much as was it was in our power to do so – such as supporting staff required to work on campus (including direct input from our Health and Wellbeing faculty) and providing mental health assistance such as counselling. Overall, we worked to redress demographic imbalances in our staff profile, whilst providing encouragement for first year staff to join our occupational pension schemes.

University of Winchester

Individuals matter

Building on our value ‘individuals matter’, Winchester has sought to create a working culture that enables us to deal successfully with the many challenges presented by a fast-changing and evolving HE sector. Our culture encourages the open sharing of ideas, leading to change that ultimately enhances staff experience. With the Coronavirus pandemic, which had a considerable impact on our staff from March 2020, we took all practicable steps to protect the health and safety of staff and worked absolutely in line with Government guidelines throughout. We made gratitude payments to our staff who were required to work on campus to maintain essential services during the initial lockdown. Additionally, we supplied a wealth of resources, wellbeing activities, and materials accessible online to help mitigate against potential detrimental mental health consequences. We also provided additional counselling support for staff who required it.

HIRING AND RETAINING THE BEST PEOPLE In 2020 there were 2,264 applicants for 181 published adverts. Of those applicants, 58% were female, and 14% were BAME. We remain focused on building a highly inclusive workforce across the full demographic spectrum and have collaborated with Network Groups and trade union colleagues to agree and implement positive action initiatives to address imbalances.

EQUALITY AND DIVERSITY As proud Disability Confident employers, we have an action plan to join the Mindful Employer initiative in 2022. In the last 12 months, we have reduced the gap (between Winchester and the sector average) of the percentage of staff who are White British, at 86.8%, compared to 79.5% for the sector (source: UCEA Higher Education Workforce Report 2019). Currently, only 4.9% of staff are BAME. In collaboration with the Race Equality Action Group (REAG), the Director of Equalities and Staff Development has enacted an action plan to achieve a target of 6%. The historical breakdown of gender statistics shows that the proportion of male to female staff has continued at around 60% female over the last seven years. Female staff currently comprise 60.4% of our staff. This remains higher than the HE sector average of 54% female staff and is largely a result of our practice of employing services in-house, rather than through contractors, that typically attract female staff because of the part-time preferences and nature of these roles.

RETENTION Overall staff turnover decreased from 13.1% to 11.2% %. 6.5% of all leavers were staff with less than one year’s service.

WELLBEING Staff sickness absence per employee increased from 4.9 days to 6.3 days in the last year. Mental health and stress/ anxiety-related absences have risen from 26.1% to 34.6% of total sickness absence days lost. Stress and anxiety arising from the Coronavirus pandemic was a contributing factor to this significant increase. Winchester has prioritised staff wellbeing in the wake of the pandemic and tasked the Deputy Vice-Chancellor to lead on relevant strategies to support staff.

PENSIONS The proportion of staff enrolled in an occupational pension scheme increased from 89.9% to 91.3% this year. We see it as very positive that such a high proportion of our staff contributes to a pension scheme.

Faculty of Education staff have worked tirelessly during the pandemic devising an emergency assessment strategy to enable the faculty to temporarily assume the DfE’s responsibility for recommending graduates for Qualified Teacher Status.

Our Health and Wellbeing faculty has gone the extra mile in supporting EFS department by preparing COVID-19 ready spaces and ensuring that students have adequate PPE, especially those on placements.

With Higher Education Innovation Fund (HEIF) funding, Professor Paul Sowden, Rachel Wilcock and Gemma O’Donoughue are establishing partnerships with a number of local organisations and the Psychology Department for our Psychology Knowledge Exchange Internships scheme (PsKEIs).

Integrated Annual Report 2020-21

Social justice We are committed to empowering our students and staff to consider social justice in all aspects of their personal and professional lives, and impart such values in all their interactions. We promote volunteering as a key social justice mechanism. Our core commitment to anti-racism strengthened even further in 2020, including new initiatives to redress recruitment imbalances and gaps in student access and further close degree-awarding gaps. We are one of only five universities to formally support the Gypsy, Traveller, Roma, Showman and Boater (GTRSB) community. We also instigated numerous projects to support children from forces families, and invested heavily in support for disabled students. Ultimately, we aim to nurture students to thrive in their careers and further study, to become the conscience of their communities and places of work. This Social capital can be shown across Winchester in many ways, including student satisfaction, community engagement strategies, staff and students volunteering data, continuing alumni engagement and Research Excellence Framework (REF) impact statements. As a values-driven university committed to social justice,

“

We are anti-racist. We commit to: looking within with humility, listening keenly, and acting to effect real change.

we believe that all ‘Individuals matter’ and are dedicated to the flourishing of people. In 2020 we published our anti-racism statement and adopted a universitywide commitment to addressing issues of race. Within the statement, we committed to improving our reporting policies and procedures, introducing senior champions, closing degree-awarding gaps, and improving our recruitment of staff and students from racial minorities. In 2019 we conducted research to better understand our large Asian degree-awarding gap, developing a series of recommendations that we have begun to action and actively share with the sector. We have closed these gaps – the most recent Higher Education Statistics Agency (HESA) data shows that the BAME awarding gap has narrowed from 22.3 percentage points to 8.2 percentage points in the last three years. In December we were also one of five universities to pledge to support Gyspy, Traveller, Roma, Showman and Boater (GTRSB) communities into higher education, introducing a new support package for GTRSB students and holding a national conference to raise awareness and understanding on GTRSB access and participation in June as part of GRT History Month.

University of Winchester

SUPPORTING CHILDREN FROM FORCES FAMILIES Winchester leads the Service Children’s Progression Alliance, whose UK-wide Hub Network expanded from four to twelve Hubs this year, bringing together hundreds more organisations collaborating to help Service children thrive. Universities and military charities co-lead Hubs of diverse stakeholders to support rigorous research and its translation into policy and practice improvements. Seven new projects enhanced the scale and quality of support for Service children, including several enhancing the evidence base and impact of the hugely successful Thriving Lives Toolkit for schools across the UK and a research-to-practice project tackling loneliness and isolation for dispersed Service children in further education. The Alliance was recognised in the Secretary of State for Defence’s Armed Forces Covenant report to Parliament, the Government’s MP-led review of support for Service families and – in evidence – submitted to the Armed Forces Bill select committee. Key milestones: 2021 – Winchester publishes a statement of • April commitment towards being a truly anti-racist institution 2021 – Winchester signs the GTRSB into HE • January pledge outlining its commitment to supporting staff and students from Gypsy, Roma, Traveller, Showman and Boaters in higher education

2020 – The Thriving Lives Toolkit for schools • October was launched completing a multi-year research-topractice project

The BLDT Faculty worked with a local charity, the Allied Services Trust, integrating our undergraduate students into research into the VAT treatment of services that are chargeable for the more vulnerable in society. This project is focused on the social justice aspect of VAT applicability.

In December 2020, staff from our Nursing department made a huge contribution to the COVID-19 vaccination programme by providing intramuscular injection training for approximately 100 vaccinators. The training programme was a collaboration between regional universities (Winchester, Portsmouth, Solent, Southampton) and Health Education England.

The Journal of Nursing & Residential Care featured an article about a project run during lockdown by two of our Performing Arts students, in collaboration with care homes and a primary school, to share original creative responses in music, song, painting, poetry and stories.

Integrated Annual Report 20-21

INVESTMENT IN ACCESS AND PARTICIPATION Winchester annually prepares a 5-year rolling plan outlining its financial commitments and targets to addressing gaps in access and participation of students from underrepresented backgrounds. Our Access and Participation Plan (APP 2020-2025) has been approved by the OfS and is published on our website at https://www.winchester.ac.uk/about-us/leadershipand-governance/access-and-participation-statement/ Our APP commits to the following strategic priorities for Winchester work with local communities to increase the low rates • To of progression into higher education increase the diversity of our student body and • To close the gaps in participation in HE for students from underrepresented groups

create an inclusive learning and teaching environment • To in which all students, whatever their background, are able to flourish

improve progression rates into further study or • To graduate employment for all of our students

During the year we invested over £2,665,000 in widening access and participation across the whole student lifecycle. £2,391,703 of this expenditure was committed to the four categories of expenditure identified by the OfS for reporting Access and Participation plans and expenditure. However, in addition, Winchester invested £273,297 on success and progression activities for students from underrepresented groups, in support of our strategic priorities mentioned above. Winchester is no longer required to report expenditure on success and progression activities to the OfS, other than those identifying as relating to disabled students. Hence, our audited Access and Participation expenditure is reported at £2,391,703 as shown in the notes to the accounts on page 84, note 7 (b). This figure includes expenditure under student premium and projects funded by third parties (e.g. grants).

University of Winchester

The four categories of expenditure reportable to the OfS are:

student support (or hardship) funds throughout the year in addition to the Covid support funds supported by the OfS.

1) ACCESS INVESTMENT

3) DISABILITY SUPPORT

Winchester was not able to spend as much as planned on our APP due to the impacts of the pandemic which led to a reduction in outreach activity in local schools and colleges due to lockdown and health risks. However, instead we invested further funds to support our current students from underrepresented backgrounds.

In 2020/21 we invested £531k into support for disabled students, which included over £16k to support student access through targeted outreach and pre-entry familiarisation activity for students on the autistic spectrum, over £488k to support student success and over £26k to support disabled student progression through one-to-one careers advice and tailored workshops.

The First Star Scholars Scheme was launched in July 2021, made possible by the generous support from our lead sponsors The Linbury Trust and the Paul Hamlyn Foundation. The scheme is a four-year sustained outreach programme for young care experienced people. We host an annual summer school, a spring school and monthly Saturday schools to support the educational progression of a cohort of young care experienced people. Winchester helped raise funds to set-up the programme and continues to provide in-kind support alongside further fundraising activities in partnership with the First Star Scholars UK charity.

2) FINANCIAL SUPPORT We spent over £1m on financial support for students through a number of income-based bursaries and support packages for students from certain underrepresented backgrounds including Care Leavers, Young Adult Carers and Estranged Students. Students were able to access

4) RESEARCH AND EVALUATION In 2020/21 the Widening Participation Department employed two Graduate Research Associates to deliver research projects to support the development of transition programmes and outreach with parents and carers. We continue to drive sector-leading research and knowledge activity on the educational progression of Service Children through the Service Children’s Progression Alliance. Winchester also contributed to the ‘Disaggregating the BAME Degree-Awarding Gap’ report, which provided a series of recommendations to support the Asian student experience.

Integrated Annual Report 2020-21

Environmental sustainability We are widely recognised as one of the leading universities in the UK for environmental sustainability and carbon management. We aim to become the lowest-carbon UK university campus by 2025. Having solely used 100% renewable energy since 2008, our new low carbon plant and equipment will save just over 2.7 million kWh a year. We recently joined the Carbon Coalition, a sector group dedicated to offsetting emissions through leveraging combined buying power. Our commitment to sustainability extends into the curriculum, with climate change education being rolled out across all courses. Aligned to this are measures covering carbon emissions, water usage, and the amount of waste produced by the institution.

Public Sector Decarbonisation Scheme In 2020/21 we were awarded a grant of £3.12m from the Public Sector Decarbonisation Scheme, to help us to become one of the most carbon-efficient universities in the UK. The signalled the start of our significant capital investment programme in innovative low carbon plant and equipment. Phase one of the programme will see the replacement of 35 gas boilers with low energy air source heat pumps; a lighting upgrade to replace existing older-style lighting with low energy LEDs; an upgrade to the Building Management System to optimise energy consumption in buildings; and the installation of two large solar photovoltaic arrays designed to produce on-site electricity generation at peak times. This grant underlines the significant progress we have made since 2006 when we started our move away from fossil fuels, by reducing our emissions, increasing investment in energy efficiency measures, increasing installation of renewables, switching to electric vehicles and the procurement of renewable electricity.

Renewable energy We have used 100% renewable electricity since 2008 and switched to 100% green gas in September 2020, making us almost carbon neutral from energy sources.

“

Once installed, the low carbon plant and equipment will support savings of over 500 tonnes of carbon dioxide a year, with Scope 1 and 2 emissions falling to almost zero, which equals financial savings of up to £100k Gavin Hunter Chief Operating Officer

University of Winchester

Our new low carbon plant and equipment will save a total of 2,702,353 kWh a year: REMOVAL OF GAS BOILERS/ REPLACEMENT HEAT PUMPS

SOLAR PHOTOVOLTAIC (PV) PANELS

2,010,629 kWh saved a year

136,156 kWh saved a year

Equivalent to 23,380 tree seedlings grown for 10 years or 300 cars taken off the road.

Equivalent to 240,000 miles driven by an average vehicle or 12,275,000 smartphones charged once.

BUILDING MANAGEMENT SYSTEMS OPTIMISED IN 25 BUILDINGS

REPLACEMENT OF NON-LED LIGHTS TO FULL LED

471,543 kWh saved a year

84,025 kWh saved a year

Equivalent to 56 homes’ electrical use per year or burning 124,000 litres of diesel.

Equivalent to 13 cars driven for one year or 2,450 propane cylinders burned.

Integrated Annual Report 2020-21

SCOPE 1 & 2 EMISSIONS - TOTAL AND INTENSITY LOCATION AND MARKET BASED

T CO2

Kg CO2

Total Scope 1 & 2 Emissions - Location Based (T CO ) 2

Total Scope 1 & 2 Emissions - Market Based (T CO )

Total Scope 1 & 2 Emissions per m - Location Based (Kg CO ) 2

Total Scope 1 & 2 Emissions per m - Market Based (Kg CO ) 2

UK GREENHOUSE GAS EMISSIONS AND ENERGY USE DATA FOR THE PERIOD 1 AUGUST 2019 TO 31 JULY 2021 2020/21

2019/20

10,959,719

10,015,268

Gas consumption

93.12

80.56

Electricity consumption

56.83

61.52

Gas consumption

1,195.00

1,038.42

Owned transport

10.86

13.73

1,205.86

1,052.15

Purchased electricity

940.24

1,018.28

Total Scope 1 and 2 emissions in metric tonnes CO2e

2146.10

2,070.43

27.52

29.16

Energy consumption used to calculate emissions (kWh) Energy Intensity Ratio (kWh/m2):

Scope 1 emissions in metric tonnes CO2e

Total Scope 1 Scope 2 emissions in metric tonnes CO2e

Carbon Intensity Ratio (KgCO2e/m2)

University of Winchester

Fleet Vehicles By the end of 2020/21, 47% of fleet vehicles had been switched to electric vehicles as part of our journey towards our target of net-zero carbon emissions by 2025.

Scope 3 Emissions We have also just undertaken our first full scope 3 assessment for our carbon monitoring report. We have committed to being carbon neutral by 2030 but we have an aspiration to get there by 2025. Understanding the challenge and size of scope 3 is key to reducing our emissions and offsetting/sequestering what we cannot reduce.

Carbon Coalition In 2020/21 Winchester joined the Carbon Coalition led by the Environment Association of Universities and Colleges. This sector group will work together to improve the process for gathering scope 3 emissions data and will also procure good quality and verified carbon sequestration and retirement opportunities for the member organisations. We committed to purchasing 386t of carbon credits which equated to our verifiable scope 3 emissions from waste, water and business travel and the remaining scope 1 emissions from internal combustion fleet vehicles.

Paul Sheeran’s ESRC funded work focused on understanding the future of Canada-UK trade and the circular economy in Free Trade Agreements (UK-Canada)

Two Winchester colleagues, Dr Louise Pagden and Dr Simon Boxley, have trained as COP 26 Ambassadors. They work closely with the Earth Museum and local schools to roll out a series of lessons on sustainability, and they prepared a range of campus-wide events to mark COP26.

Academic Alexander Taylor served as a consultant on a Channel 4 documentary on the environmental impact of online activity during the pandemic, worked with the BBC World Service on a news report on the carbon costs of IT infrastructure and was a guest on FirstMile’s Wasted podcast exploring environmental sustainability in relation to cloud computing.

Integrated Annual Report 2020-21

Procurement and value for money The Office for Students terms and conditions of funding for higher education institutions (ref 2019.12) requires our Board of Governors to demonstrate that it uses public funds for proper purposes and seeks to achieve value for money from public funds. At Winchester, the responsibility for value for money is delegated to management and the Board’s responsibility is discharged through proper scrutiny of Winchester’s affairs and through exercising appropriate oversight of strategies and policies. At Winchester, we believe that there is a clear relationship between how we create value and the value for money we provide to stakeholders. Value for money is about maximising the value generated from our financial capital. However, through integrated thinking, we believe that value encompasses all capitals, as outlined in Winchester’s Value Creation model on page 8. This integrated report describes how we create value and the areas in which we have delivered value from financial inputs, amongst other sources. Direct cost savings are achieved through active contract engagement and management and robust tender processes. Winchester also benefits from a number of local and national purchasing consortia and partnerships to secure competitive commodity prices and discounts on our strategic and high-spend areas of our business. Through these consortia and frameworks, we are able to realise significant savings and to strongly influence supplier behaviour. For example, we expensed £2.4m on addressable spend through our Southern Universities Purchasing Consortium (SUPC) frameworks in 2020/21, realising £372k of savings (of which £173k were cashable savings), as identified by SUPC. The majority of Winchester’s SUPC addressable spend is associated with computer supplies and services, the remainder based on furniture, library and publications.

Other purchasing consortia and framework providers used by Winchester include:

• GOV.UK – via Crown Commercial Services (CCS) • Eduserv – for the purchase of software licences • iESE – construction framework • JISC – for broadband purchasing • NHS – TDS Framework Universities Construction Consultancy • Southern Affinity Group (SUCCAG) • The Energy Consortium (TEC) Society of College, National and University • The Libraries (SCONUL) – the leading professional membership body • TUCO for in-house caterers The aforementioned organisations consistently offer the sector value for money, often through rates specifically negotiated for the Higher Education sector. Channeling in excess of 30% of the value of our addressable spend through framework agreements arranged by higher education and public sector purchasing consortia, we ensure that our suppliers have been stringently reviewed for anti-modern slavery compliance. The particular business and supply chains which may pose particular risks in terms of slavery are in IT and AV equipment, construction and uniform/clothing supplies, the majority of which are purchased through these frameworks.

University of Winchester

Supplier engagement POLICY AND STRATEGY Winchester’s procurement strategies are well developed and aligned with the institution’s sustainability policies. The University has robust procurement policies, and sustainability has been embedded into these practices. Staff involved in buying activities have been fully trained on our procurement approach and how this should align with Winchester’s environmental objectives. The strength of these policies was reflected over the past year where we have continually selected suppliers through competitive process using award criteria heavily weighted in support of environmental and sustainability criteria in line with University values. A good example of this was the recently awarded Graduation tender where environmental and sustainability considerations were weighted at 25%. Over the last 12 months the University has carried out ten full tenders and a dozen mini competitions. All contracts have been carried out in line with Public Contract regulations ensuring the University remains fully compliant in these areas of expenditure. They have been awarded against value for money criteria that focused on whole life costs, quality and service levels as opposed to price alone.

STAKEHOLDER ENGAGEMENT Stakeholder engagement is carried out through tender user groups. It forms an extremely important part of the value for money process, ensuring end user expertise is combined with a commercial professional procurement approach. For example, Winchester has recently tendered its travel management requirements. A diverse user group was formed to agree policy around using the service before going to tender. Issues such as managing carbon footprint, using trains whenever possible instead of flying, and even decisions around the need to travel, have all been discussed, debated and incorporated into the tender, along with CO2 reporting.

Integrated Annual Report 2020-21

FAIR TRADE CONTRACTS Winchester has a strong reputation of supporting many Fairtrade initiatives, particularly in catering and hospitality. We have been able to tap into many TUCO contracts which have delivered a host of products to staff and students. We have also set out to establish these initiatives in other areas, such as clothing. It is our aspiration to use environmentally and sustainably resourced clothing wherever possible, whether they are Fairtrade, WRAP or Fit for Purpose products. We are committed to the principles of sustainable development, environmental management and protection of biodiversity.

ELECTRONICS WATCH Winchester has signed up as an affiliate member of Electronics Watch, an organisation that aims to improve working conditions in the global electronics industry. The decision was made to ensure that employees working for companies supplying ICT equipment to Winchester are treated fairly, and that the companies themselves operate to an acceptable ethical standard. Electronics Watch aims to help public sector organisations by being their eyes and ears on the ground in areas of the world where their ICT products are made. Becoming a member of Electronics Watch is testament to Winchester’s commitment to meeting the highest possible ethical and social standards when it comes to procurement.

Modern slavery Our Modern Slavery Statement is designed to satisfy the requirements of Part 6, Section 54, of the Modern Slavery Act 2015. Winchester’s Financial Regulations, Procurement Policy and Procedures and Ethical Investment Policy state our commitments to the highest standards of ethical conduct in all activities, along with making continuous improvements in this area. We do not engage in, or condone, the practices of human trafficking, slavery or forced labour. We are committed to improving our business practices to combat modern slavery and human trafficking and to ensure that we are not complicit in any human rights violations. We are committed to zero tolerance of slavery and human trafficking or child labour practices. We mitigate the risk of modern slavery occurring in our workforce by ensuring that directly employed staff are recruited by following robust HR recruitment policies and checks. There is a whistle-blowing policy in place for members of staff to raise any concerns about wrongdoing by Winchester. Staff employed on a temporary staff basis via agencies are only recruited through established sources who can provide assurance that they comply fully with the requirements of legislation relating to the rights and welfare of their candidates and employees. Our Ethical Investment Policy has been developed to reflect Winchester’s commitment to ensuring that our investments are not complicit in any human rights violations. To this extent Winchester does not knowingly invest directly or indirectly in organisations that breach human or animal rights, or that are in breach of the Modern Slavery Act 2015. Our Modern Slavery Statement is published on our website and reviewed on an annual basis. It can be found at: https://www.winchester.ac.uk/about-us/sustainabilityand-social-justice/modern-slavery/

University of Winchester

Integrated Annual Report 2020-21

Financial review

It has been another year of change and turbulence across the Higher Education sector due to the impact of the COVID-19 pandemic on our students, staff, other stakeholders and the wider financial environment. However, due to actions taken in reaction to the COVID-19 pandemic and targeted investments made last year, we were able to deliver a strong surplus and EBITDA result and preserve healthy year end cash balances. We have confidence that our strategy, and implementation of robust cost-control measures, will protect Winchester’s financial position and enable delivery of the best possible experience for students under the current conditions. Our key financial sustainability measures, outlined in the table above, reflect a year-on-year improvement as we were able to draw upon out investments made in 2019/20. These investments included ‘Covid-secure’ campus measures and investments in technology to enable hybrid teaching. Strong student recruitment and savings resulting from a reduction in student and staff activity over almost an academic year of lockdown have significantly improved our financial outturn for 2020/21. Our £5.0m reported surplus for the year comes despite the ongoing challenges presented by the pandemic which included £1.7m of accommodation refunds resulting from the Government imposed restrictions on students returning to campus in January 2021. In addition, the Government and the University invested a total of £1.9m in student hardship and support, including financial support for IT poverty to our most vulnerable students and those adversely impacted by the pandemic.

Our cash flow also benefitted from this reduction in activity and, coupled with our careful cash management, has meant that Winchester’s cash in hand did not fall below our treasury management financial sustainability level of 10% of turnover (£8.4m), at any point during the year. Cash for the year showing a £6.0m improvement in our net cash inflow from operating activities and a cash and investments balance of £35.1m at 31 July 2021. However, we are still challenged by uncertainty that the pandemic has

caused and continue to regularly review and update our medium and long-term financial forecasts. However, our strong performance for 2020/21 exceeded budget expectations and provides a strong financial foothold from which to face another challenging year ahead. This Financial Review (pages 48 to 54) puts the year in perspective and outlines our financial environment, finance strategy, financial KPIs, financial performance and our future outlook.

KPI HIGHLIGHTS 2020/21

2019/20

Change

Surplus (£m)

5.0

1.5

3.5

EBITDA (£m)

16.3

10.3

6.0

Net cash inflow from operating activities (£m)

17.0

11.0

6.0

Staff cost % income

54%

57%

-3%

Net cash / (borrowing) (£m)

2.2

-10.8

13.0

University of Winchester

Financial environment This year the financial environment was again dominated by the direct and indirect impacts of the COVID-19 pandemic. The UK government introduced further support measures as the country continued to navigate the economic risk and uncertainty caused by the pandemic. At a local level, Winchester experienced another year of unprecedented challenges including: investment in new equipment and practices to • Further enhance our online delivery of lectures on campus adaptations and additional • Expenditure supplies to maintain a ‘Covid-safe’ campus of catering and conferencing income • Loss Putting staff onto the furlough scheme (80% of salary), • if they were unable to work, and topping their salary

• • • •

back up to 100% Implementing a number of cost saving initiatives and mitigating actions Restricted travel for international students and staff Turbulent financial markets adversely impacting pension valuations Reductions in grant funding for research

The global pandemic continues to overshadow ongoing concerns over the Government’s spending review

recommendations, the wider impacts of Brexit and Union reactions to the sector pension crisis. Winchester is regularly reviewing its financial and operational risks associated with the withdrawal of the United Kingdom from the European Union and incorporates these into our risk register. We have undertaken a risk review of our supply chains to identify high-risk areas for further contingency planning and are reviewing our international partnerships. We seek to secure local supplies where possible to protect both our local community and the environment.

LIVING WITH COVID-19 The University continues to hold regular COVID-19 pandemic risk management meetings to monitor local infections and manage the risks locally. We have also engaged with the local NHS trust, setting up testing centres and supporting vaccine centres.

Finance strategy Our finance strategy is designed to empower Winchester to exceed its potential and achieve our Strategic Vision 2030. It has been drafted with reference to these five principles: 1. L ong-term viability and matching resources with objectives 2. Maintaining productive capacity to meet current objectives 3. Financing development and investment 4. Evaluating strategic alternatives and managing risks 5. Integrating financial and other corporate strategies In light of the financial environment we are navigating, the Finance Strategy outlines our four strategic priorities for the year ahead: Financial sustainability – To remain financially sustainable and produce

sufficient cash to support our strategic objectives and provide institutional sustainability. Operational efficiency – To continuously improve efficiency and effectiveness - by managing the cost of operations and delivering value for money whilst continuing to maintain a sustainable recurrent investment in the academic, corporate and support operations. Capital investment – To ensure the maintenance of our estate and future strategic investment to support the delivery of excellence in education. To also ensure capital investment is

at a level that will not put Winchester at financial risk. Treasury management – To assess and manage risk in all of Winchester’s growth and development activities and to operate sound treasury management as outlined in our Treasury Management Policy. In order to assess our performance against our Financial Strategy, the Board of Governors monitor a number of KPIs, some of which are outlined at the start of this Financial Review.

Integrated Annual Report 2020-21

Financial KPIs Key performance indicators (KPIs) are used by our Executive Leadership Team and by our Board of Governors to assess the University’s performance. Our KPIs are presented at every board meeting and are regularly reviewed against our strategic plan and are modified, as required, to remain current with a rapidly changing external operating environment. Our KPIs cover a number of operational areas from student satisfaction to student employability. Our financial KPIs reflect those used by our funding bodies and banks, and are reconciled to accounting data. A selection of our financial management KPIs are shown in the table at the beginning of this Financial Review. Within this table, EBITDA refers to our Earnings Before Interest, Tax, Depreciation and Amortisation. Earnings are taken before FRS 102 pension adjustments as is common with the sector. We focus on this KPI as a strong measure of our ability to generate cash since it is less susceptible than total surplus to changes in non-cash movements (such as depreciation). Our EBITDA outturn of £16.3m for 2020/21 shows a considerable (58.3%) improvement on 2019/20, and reflects our strong performance for the year.

Whilst EBITDA can be used as a measure of cash generation, we also report our net cash inflow from operating activities as a KPI. This provides a clear marker of the cash our business is generating each year to service its investing and financing activities. And in line with our EBITDA measure, our net cash inflow from operating activities improved by 55% to £17.0m. After allowing for capital investments and our debt servicing costs, we generated an increase in cash of £7.3m in the year (£7.6m in 2019/20). This increase in cash will provide us with significant funds to invest in improvements to our physical estate to further improve our students’ experience at Winchester. Staffing costs as a percentage of income are another sector standard KPI which we report on regularly. However, in recent years this KPI

has primarily reflected the impact of pension costs and other on-costs associated with staffing rather than a salary or staff FTE increase. 2020/21 shows an increase in this cost KPI of 3%, however it should be noted that, on further investigation, our basic salary and social security costs actually decreased by 4.4% (£1.6m) year-on-year whilst pension costs increased by 24.0% (£1.8m). Our Net cash/(borrowing) is derived from our total cash and investments less the capital amount of bank debt outstanding at the balance sheet date. Winchester has not drawn any additional borrowing in 2020/21 thus this KPI largely reflects our improvement in cash and investments, increasing from a net borrowing position of £10.8m in 2019/20 to a net cash position of £2.2m in 2020/21.

University of Winchester

Financial performance The pandemic continued to disrupt our financial year, as it did for the whole sector. The impact led to increased expenditure on student hardship support and accommodation refunds, but savings arising from an underutilised campus and restricted learning and teaching activities coupled with careful cost and cash flow management were sufficient to more than mitigate the impact of the ongoing pandemic, resulting in a strong surplus outturn of 5.9% of income for 2020/21. INCOME Total income for the year was £84.4m, a 4.3% improvement on 2019/20 (£80.9m). Tuition fees and education contracts income accounts for 81% of Winchester’s income and has increased by 4% to £68.3m in the year, with the increase reflecting strong recruitment, but also notably stronger than anticipated retention of students progressing into their second and third years of undergraduate study. TOTAL INCOME 2020/21 (£m) Total: £84.4m £0.3m

£11.6m

£0.1m

£4.1m

£68.3m

Tuition fees and education contracts Funding body grants Research grants and contracts Other income Investment income

TUITION FEE INCOME 2020/21 Per cent 3%

89%

Full-time home students Full-time international students Part-time students Self-financing courses

Recruitment of full-time undergraduate home and EU students was in line with 2019/20, although the total population of this category of students showed an improvement of 2% against the previous year, primarily due to our improved student retention. Part-time student income was lower than anticipated and will be mitigated in future years with the introduction of a number of new short courses, initially associated with Health and Wellbeing courses.

Research grants and contracts income were significantly affected by COVID-19 in the year, closing at £291k. However, due to the pandemic impact also affecting 2019/20, our income remained in line with the previous year albeit £223k lower than 2018/19 (the last pre-pandemic year). Grant income is expected to increase once we are able to reinstate research hours and our academic staff are able to increase the number of bid submissions for external research funding.

Within funding body grants, our core teaching grant (OfS funding) and our core research grant (Research England Funding) have been broadly in line with our initial funding allocation forecast. However, both exceeded 2019/20 receipts, by a total of £680k. This included an additional £461k in Hardship Funds from the Office for Students. These funds were used to support students who found themselves in financial hardship as a result of the pandemic. Specifically, we supported students: who had rent arrears, both those in the private sector and university accommodation; who experienced digital poverty; who are parents of school age children; care leavers, young carers and estranged students. We also used funds to support students who are not domiciled in the UK and who were unable to collect their belongings.

Other income includes receipts from our managed housing, catering facilities, conferences and other ancillary income generating activities. Our outturn of £11.6m in the year was in line with 2019/20, although both years have experienced a reduction in accommodation income as a result of extraordinarily high levels of accommodation refunds as a result of COVID-19 restrictions preventing some students from returning to their accommodation after a break. £1.7m was refunded during 2020/21.

Students also made greater use of our standard Student Support Fund during the year. Winchester was also grateful to receive a £265k Higher Education Innovation Fund grant to support our knowledge exchange activities in 2020/21.

Investment income has seen a minor (£34k) decrease since 2019/20 due to less capital flowing through our cash flow and available for deposit following the completion of our new West Downs building last year.

Integrated Annual Report 2020-21

EXPENDITURE Total expenditure for the year was 0.1% lower than 2019/20, at £79.4m. However, 2020/21 saw a considerable increase in depreciation charges – as our new West Downs building was brought into use – which as offset by year-on-year savings in both staff costs and other operating expenditure, as follows:

Other operating expenditure decreased by 3.3% to £25.3m (2019/20 £26.1m). Whilst 2019/20 experienced a reduction in expenditure as a consequence of the Government restrictions imposed in response to the COVID-19 pandemic, 2020/21 experienced greater restrictions.

EXPENDITURE 2020/21 Total: £79.4m £6.2m

Although there has been a slight decrease in staff costs in the year, our average full time equivalent headcount increased by 3 heads to 803, as shown in note 6 of our notes accompanying the financial statements to this report. The change in mix of staff grades resulted in the increase in staff with a decrease in staff costs.

£2.4m

£25.3m

previous year (4.9%) primarily due to an increase in pension cost interest charges levied by our local government pension scheme.

BALANCE SHEET Fixed Assets Capital additions during the year were £3.1m (2019/20 £15.8m), primarily expended on the estate infrastructure. The decrease in expenditure reflecting the completion of the new West Downs building in 2019/20, without a similar large scale investment in 2020/21. There were no significant disposals or impairments in the year, and the net book value of our fixed assets decreased by 1.6% to £206.0m.

£45.5m

Staff costs Other operating expenses Depreciation Interest and other finance costs

Total staff costs for the year decreased by 0.8% to £45.5m (2019/20 £45.9m). This reduction was due to changes in all categories of staff costs as outlined below. Following a staff restructure in 2019/20, basic salary costs decreased by 4.3% (£1.5m) since that year with a corresponding social security cost decrease. There were no material staff restructuring costs in 2020/21, compared to £0.6m of restructuring costs expensed in 2019/20. However, our salary cost savings were negated by an increase in pension costs, primarily arising from our Local Government Pension Scheme (LGPS) – explained in more detail in note 21 of our notes accompanying the financial statements to this report. A £1.5m increase in the current service cost of our LGPS scheme caused the majority of the £1.6m pension cost increase. The balance of the increase was due to increases in pension scheme contribution rates since 2019, in our three major schemes, a full year impact of the increases being experienced in 2020/21.

Coming out of the first lockdown, in the first part of the financial year, and entering the second lockdown at the turn of the calendar year, followed by the slow unlocking in spring 2021 resulted in savings in expenditure across all areas of the University, as a result of prolonged inactivity of the campus. Expenditure on residences, catering, conferences and consumables show a £2.4m savings against 2019/20. A reduction in estates maintenance was also experienced as contractors were restricted from accessing our estate for a large part of the year. However, these spending reductions were partly offset by an increase in expenditure on IT equipment (£1.1m increase) and IT software (£0.5m) as we mobilised our staff for hybrid teaching and improved IT security for remote users. Both these measures were initiated in response to the pandemic. Depreciation increased by £1.1m since 2019/20, due to a full year of depreciation on our new, £48m flagship West Downs building that opened at the beginning of the financial year. Interest and other finance costs showed a slight increase on the

Current Assets Current assets increased by £11.8m to £40.2m during the year due to an increase in cash resulting from our better than anticipated operating performance for 2020/21, as outlined above. The increase in cash and investments was partly negated by a 9.9% decrease in our trade and other receivables. Creditors Short term creditors increased by £0.6m year-on-year due to the final drawdown in 2019/20 of a £30m loan from the Triodos Bank, which was used to fund out new West Downs flagship building. Conversely, long term creditors showed an improvement of £0.8m primarily due to the final capital repayment of two Allied Irish Bank loans in the year. However, this improvement was partly mitigated by a £0.8m increase in deferred capital grants. Pensions Winchester has two main employee pension schemes, Hampshire LGPS and the Teachers’ Pension Scheme (TPS), and an auto-enrolment scheme, our Higher Education Defined Contribution Scheme (HEDCS) held with Aviva. In addition, we have a low number of members (less than 50) in the University

University of Winchester

Superannuation Scheme (USS), the National Health Service Scheme (NHSBSA) and the Church of England Funded Pension Scheme (CEFPS). Our largest scheme is the TPS, which is a statutory, unfunded, governmentdefined benefit scheme, and as such it does not require Winchester to provide for any pension deficits arising in the fund. However, an outcome of the 2016 actuarial valuations of the public service pension schemes determined that the valuations would lead to very substantial increases to employer contribution rates. In relation to the Teachers’ Pension Scheme, the increase from September 2019 was 44% (a 7.2% percentage point increase from 16.48% to 23.68% employers’ contribution). This change resulted in a circa £1.1m increase in the annual cost of our TPS pension. Our LGPS is a funded defined-benefit scheme

with assets held in separate funds administered by Hampshire County Council. The pension fund performed well during the year, closing with a net asset gain of £6.8m (£17.7m loss 2019/20) recognised through other comprehensive income. However, the employers’ contribution rate has remained at 22%, the current service cost of the scheme has increased by £2.8m over the past two years, putting an additional burden on Winchester’s financial sustainability. Over the past few years, the University’s pension costs have risen faster than inflation. The Board of Governors have recognised the ongoing financial risk of our pension portfolio and have convened a Pension Risk Review Committee that will meet at least twice per year to address the current cost risks associated with the University’s pension schemes

and to inform future decision making regarding our pension portfolio. Cash Position Closing cash and investments increased by £12.3m to £35.1m. This was primarily due to the operating performance improvement resulting for the extended lockdown periods in the second and third quarter of the financial year. This was assisted by mitigating actions during the year to reduce expenditure, and by Government assistance, including furlough and student hardship funding. All bank covenants for the AIB and Triodos Bank were met at the date of the Statement of Financial Position and the University has no concern over meeting the bank covenants for at least 12 months from the date of signing these financial statements.

Integrated Annual Report 2020-21

Future outlook After a summer of re-opening mothballed buildings and maintaining a ‘Covid-safe’ campus, students were welcomed back for semester one in 2021. Learning and teaching has been radically changed to blend both online and face-to-face teaching, ensuring that Winchester is able to offer students the best possible learning experience under COVID-19 restrictions. We were delighted to start our 2021/22 academic year with relaxed government restrictions permitting us to allow full face-toface teaching on campus, bringing back the vibrant heart of our community. Our overall intake of new full-time students in 2021 was 2.8% higher than the previous year and in line with budget. However, whilst undergraduate full-time student intake was 1.3% less than last year at 2,387 students, our full-time postgraduate recruitment exceeded last year’s intake by 19.0%, including a significant increase in international students. This improvement against last year and against budget has started our 2021/22 financial year with a strong cash position. We have also seen a continuation of the reduction in other operating expenditure in certain categories of expenditure, similar to that we experienced in 2020/21. This is partly due to a reduction in expenditure on travel and conferencing as government and international restrictions continue to curtail our ability to travel.

We are therefore confident that the University has sufficient resources to remain financially sustainable for at least twelve months from the date of signing these financial statements. We are forecasting a deficit for 2021/22 and have recently forecast an improvement in our outturn. However, we continue to model the most challenging scenarios that the pandemic may introduce for 2021/22 and beyond, and whilst we have experienced a strong start to the year, we are mindful that the pandemic is still very much with us and could impact our projections adversely depending on the progression on new variants. However, we believe that the most likely scenarios are fully sustainable, even with higher inflation modelling. Despite the challenges COVID-19 presents, Winchester has remained committed to our values and has invested time and resources to consider how it can build upon its strong foundations as a compassionate university community where all individuals matter, where wellbeing is paramount and pastoral care is of the highest quality. To help us mitigate current and future challenges, we have embedded our 2020-2030 strategic plan. The vision includes a five-year business plan that sets the baseline financial projections on which we modelled the possible

impacts and scenarios of the shortterm and medium-term challenges we are facing. With a robust strategic vision and business plan, a stronger than planned opening cash balance, and having met our budget for new student intake for 2021, Winchester is in a healthy position for a successful 2021/22.

SIGNED ON BEHALF OF THE BOARD OF GOVERNORS:

M B Edwards Chair of Board of Governors

Professor Sarah Greer Vice-Chancellor Date: 26 January 2022

University of Winchester

Statement of Board of Governors responsibilities in respect of the strategic report, the directors’ report and the financial statements The Board of Governors is responsible for preparing the strategic report, the directors’ report and the financial statements in accordance with the requirements of the Office for Students’ Terms and conditions of funding for higher education institutions and Research England’s Terms and conditions of Research England grant and applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law they have elected to prepare the University of Winchester’s financial statements in accordance with UK accounting standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland. The terms and conditions of funding further require the financial statements to be prepared in accordance with the 2015 Statement of Recommended Practice – Accounting for Further and Higher Education, in accordance with the requirements of the Accounts Direction issued by the Office for Students. Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the University of Winchester and of their income and expenditure, gains and losses and changes in reserves for that period. In preparing each of the University of Winchester’s financial statements, the directors are required to:

• select suitable accounting policies. • and then apply them consistently. judgements and • make estimates that are reasonable and prudent.

whether applicable UK • state accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.

Winchester’s ability to • assess continue as a going concern,

disclosing, as applicable, matters related to going concern.

the going concern basis of • use accounting unless they either

intend to liquidate the University of Winchester or to cease operations, or have no realistic alternative but to do so. The Board of Governors are responsible for keeping adequate accounting records that are sufficient to show and explain Winchester’s transactions and disclose with reasonable accuracy at any time the financial position of the University of Winchester and enable them to ensure that its financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. They also have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the University of Winchester and to prevent and detect fraud and other irregularities.

The Board of Governors are also responsible for ensuring that: from whatever source • funds administered by Winchester for specific purposes have been properly applied to those purposes and managed in accordance with relevant legislation.

provided by the Office for • funds Students, Research England, the

Department of Education and all other direct funding bodies have been applied in accordance with the terms and conditions attached to them.

are appropriate financial and • there management controls in place to safeguard public funds and funds from other sources; and securing the economical efficient and effective management of Winchester’s resources and expenditure.

The Board of Governors are responsible for the maintenance and integrity of the corporate and financial information included on the University of Winchester website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Integrated Annual Report 2020-21

STATEMENT BY THE DIRECTORS IN PERFORMANCE OF THEIR STATUTORY DUTIES IN ACCORDANCE WITH S172(1) COMPANIES ACT 2006 The Companies (Miscellaneous Reporting) Regulations 2018 (Reporting Regulations 2018) require that large private institutions include additional corporate governance reporting disclosures in their strategic report and directors’ report, effective for financial years beginning on or after 1 January 2019. Large private institutions are now required to include in their strategic report a separate statement describing how the directors have had regard to the matters set out in section 172(1)(a) to (f) of the Companies Act 2006 when performing their duty under section 172. The Board of Governors of the University of Winchester consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the University of Winchester for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1)(a-f) of the Act) in the decisions taken during the year ended 31 July 2021. In particular, by reference to the approval of our Strategic Vision 2030 and five-year business plan from 2021, supported by the initiatives outlined throughout this integrated report.

DELEGATION OF AUTHORITY The Board of Governors believes governance of the University of Winchester is best achieved by delegation of its authority for the executive management of the University of Winchester to the

Vice-Chancellor (Accountable Officer), subject to defined limits and monitoring by the board. The Board of Governors routinely monitors the delegation of authority, ensuring that it is regularly updated, while retaining ultimate responsibility. The Board has adopted a longstanding corporate governance framework which is outlined in more detail in our Statement of Corporate Governance and Internal Control and our Statement of Internal Controls on pages 66 to 67.

SIGNED ON BEHALF OF THE BOARD OF GOVERNORS:

M B Edwards Chair of Board of Governors

Further information as to how the board has had regard to the s172 factors is embedded in this integrated report as noted in the table opposite.

AUDITOR A resolution to re-appoint KPMG LLP as auditor for the forthcoming year was proposed and approved, and the audit plan endorsed at a Risk and Audit Committee meeting on 15 June 2021. The auditor has served for five years.

DISCLOSURE OF INFORMATION TO AUDITOR The Governors who held office at the date of approval of this report confirm that so far as they are each aware there is no relevant audit information of which the University of Winchester’s auditor is unaware, and each Governor has taken all the steps that he or she ought to have taken to be aware of any relevant audit information and to establish that the University of Winchester’s auditor is aware of that information.

Professor Sarah Greer Vice-Chancellor Date: 26 January 2022

REGISTERED OFFICE: University of Winchester Sparkford Road Winchester Hampshire SO22 4NR

University of Winchester

SECTION 172 FACTOR

KEY EXAMPLES

a. The likely consequences of any decision in the long term

Winchester is proud to have developed a 10-year strategic plan – Strategic Vision 2030: A beacon of education excellence, sustainability and social justice. This plan is fundamental to our decision making as outlined in our going concern statement.

b. The interests of the company’s employees

Winchester is proud to be an institution focused on educational excellence, sustainability and social justice, where everything we do is driven by our values. Our employees are a central theme throughout our Integrated Annual Report and this is exemplified by our governance structure with regular HR committee and nominations committee meetings to oversee staffing strategy. In addition, our Executive Leadership Team hold monthly staffing working group meetings to consider the interest of our employees.

c. The need to foster the company’s business relationships with suppliers, customers and others

d. The impact of the company’s operations on the community and the environment

Our Integrated Annual Report includes several examples of the strong partnerships we have fostered with suppliers and customers, including our growing partnership with Hampshire Hospitals Foundation Trust (HHFT) as we build our Faculty of Health and Wellbeing.

Winchester’s support for the Climate Emergency and the United Nations Sustainable Development Goals are evident throughout our integrated report. Our commitment is ongoing with our £4.6m Public Sector Decarbonisation Scheme (PSDS), a major capital investment in air source heat pumps, solar photovoltaic panels, LED lighting and energy efficient building management systems as we are set to become one of the lowest carbon emitting universities in the UK. Our community engagement reach has also been extended during the year with the opening of our Winchester Health Clinic which provides high quality physiotherapy assessment and treatment.

e. The desirability of the company maintaining a reputation for high standards of business conduct

Our commitment to high quality standards is reflected in all that we do and is exemplified by several prestigious sector awards mentioned throughout this integrated report, our commitment to the student experience and quality education, and our robust project methodology,procedures and policies.

f. The need to act fairly as between members of the company

Our governance structure is critical to the equality between our members. Winchester prides itself on inclusivity, including representation the Winchester Student Union on our Board of Governors. Our balanced governance structure is explained in detail under our Statement of corporate governance and internal controls, including the importance of our nominations committee.

PAGES

15, 19, 48-54

12, 27, 32-35

14, 44-45

14, 16-18, 40-43

20-21, 30-33

55-67

Integrated Annual Report 2020-21

Our Governors The following are current Winchester Governors (Directors) or those who served during the year ended 31 July 2021. In governing the operations at Winchester, the Board of Governors holds a number of relevant committees. These committees and their respective attendance by each Governor can be found listed below. Meeting: Board Members

Membership Appointed on

Board of Governors

Resigned on

Members

Attendance

31 July 2021

Chair

6/6

15 October 2021



2/6

Risk & Audit Committee Members

Attendance

Standing Committee Members

Attendance



4/4

DIOCESAN GOVERNORS Alan Lovell (Chair) Tim Dakin, The Right Revd. The Bishop of Winchester (ex officio) Jane Jessop



5/6



3/4

Andrew Robinson



6/6



3/4

Edward Rochead



5/6

Mark Thistlethwayte



6/6



4/4

David Williams, The Right Revd. The Bishop of Basingstoke



4/6



2/4



4/4

CO-OPTED GOVERNORS Margaret Chin-Wolf



6/6

Mary Edwards (Vice-Chair)



6/6

Prof. Chris Gaskell



6/6

Dr. Emma Page



6/6

Chair

3/3

Andrew Smith



6/6



3/3

Rae Tooth



5/6



2/3



6/6 

2/2



2/2



3/3



4/4



2/2



4/4



4/4



3/4



3/4

31 July 2021



3/3 

4/4 3/4

ACADEMIC GOVERNORS Dr. Emile Bojesen Prof. Joy Carter (ex-officio)



4/6

Dr. Robert Gray



6/6

Gavin Hunter (ex-officio and company secretary)



Angus Paddison

31 March 2021

6/6



1/1



6/6

Dr. Lesley Black



6/6

Tom Lowe



5/6

31 July 2021



4/6

01 July 2021



5/5



1/1

01 April 2021

The Revd. Prof. Elizabeth Stuart (ex-officio)



1/1

PROFESSIONAL SERVICES STAFF GOVERNORS

FORMER STUDENT GOVERNOR Peter Lidgitt STUDENT GOVERNOR Megan Ball Charis McCobb

01 July 2021

NON-GOVERNOR CO-OPTED MEMBER Bruce Elkins



2/3

NON-GOVERNOR MANAGEMENT TEAM ATTENDEE Sam Jones CLERK TO THE GOVERNORS Stephen Dowell



6/6

University of Winchester

Meeting: Board Members

Nominations Committee Appointed on Resigned on

Remuneration Committee

Foundation Committee

HR Committee

Members

Attendance

Members

Attendance

Members

Attendance



2/2



3/3



3/3

Chair

2/3 Chair

3/3



3/3

DIOCESAN MEMBERS Alan Lovell (Chair)



3/3

Tim Dakin, The Right Revd. The Bishop of Winchester (ex officio) Andrew Robinson



3/3

Edward Rochead

Chair

2/2



2/2



4/6

CO-OPTED GOVERNORS Margaret Chin-Wolf Mary Edwards

Chair

3/3

Andrew Smith



2/3

Rae Tooth



1/2



2/2

3/3



Prof. Chris Gaskell

3/3 2/3

STUDENT GOVERNOR Prof. Joy Carter (ex-officio)



2/2

Dr. Robert Gray



3/3

Angus Paddison



1/1



3/3

The Revd. Prof. Elizabeth Stuart (ex-officio)



1/1



1/1



2/2

PROFESSIONAL SERVICES STAFF GOVERNORS Dr. Lesley Black Tom Lowe

 

3/4

3/3

STUDENT GOVERNOR Megan Ball



3/3

Governor attendance at committee meetings is not mandatory and our Governors are extremely dedicated and endeavour to attend all meetings of which they are members. Reasons for absence are recorded by the Clerk to the Board of Governors and such absences are predominantly due to work-related reasons or illness.

Integrated Annual Report 2020-21

Statement of corporate governance CORPORATE GOVERNANCE Winchester is committed to exhibiting best practice in all aspects of corporate governance. This statement details how Winchester has applied the principles set out in the Committee of University Chairs (CUC) published guidance, the Higher Education Code of Governance (September 2020) and the 2018 UK Corporate Governance Code issued by the Financial Reporting Council in July 2018, in so far as they relate to Higher Education Institutions. Its purpose is to help the reader of the Financial Statements understand how the principles have been applied.

LEGAL STATUS AND PUBLIC BENEFIT The University of Winchester is a company limited by guarantee, registered company number 05969256. Every Director and member of the company is also an acting Governor. Winchester is an exempt charity under the terms of the Charities Act 2011, meaning it is exempt from registration with the Charity Commission, with its Governors as managing trustees. The principal objectives of Winchester, in accordance with Section 124 of the Education Reform Act 1988, are concerned with the provision of Higher Education and the conduct of research. Supporting this, Winchester also undertakes other activities including knowledge exchange, consultancy and the provision of accommodation, catering and conference services. In setting and reviewing Winchester’s strategy and activities, the Board of Governors takes into consideration the Charity Commission’s guidance

on the reporting of public benefit and the supplementary public benefit guidance on the advancement of education. Indeed, Winchester takes seriously its commitment to ensure that it satisfies the Charity Commission’s public benefit requirements. As an exempt charity, the Governors of the University of Winchester have had due regard to the guidance on public benefit published by the Charity Commission in exercising their powers and performing their duties. The Board of Governors has due regard to any detrimental harm that may arise from Winchester’s activities and particularly to the impact of its campus developments on its immediate locality. We aim to minimise this impact through extensive community discussion and consultation in addition to working closely with Winchester City Council. Winchester does not currently incur private benefit from its activities undertaken in pursuance of its purposes. The Board of Governors recognises that students, both undergraduate and postgraduate, are the principal beneficiaries of the provision of higher education whilst the public at large are beneficiaries of Winchester’s Research and Knowledge Exchange and community engagement activities.

RESPONSIBILITIES OF THE BOARD OF GOVERNORS The Board of Governors of the University of Winchester, which meets formally at least five times a year, are responsible for – but limited to – the determination of the

educational character and objectives of the University of Winchester, the oversight of its activities, the effective and efficient use of resources, Winchester’s solvency, for safeguarding its assets and for approving annual estimates of income and expenditure. Winchester’s Board of Governors comprises of people appointed under the Winchester’s Memorandum and Articles of Association, which were adopted by the Board of Governors on 16 March 2011, a copy of which can be found on the policies and procedures page of our website under: www.winchester.ac.uk/aboutus/leadership- and-governance/ policies-and-procedures/. The responsibilities of the Board of Governors are set out in paragraph 22 of the terms and conditions of the Office for Students funding and paragraph 21 of the terms and conditions of UKRI funding relating to funds administered through Research England. Winchester has been designated by the Secretary of State as an institution in the further and higher education sector, who has its own contract with the Education and Skills Funding Agency (ESFA). The Board of Governors is responsible for the appointment and removal of the external auditor and outsourced internal audit providers. The Board of Governors comprises seven independent diocesan appointed members (non-executive), six independent co-opted members (non-executive), five academic governors, two professional services staff governors, one independent former student governor and one student governor. The Diocesan

University of Winchester

Governors of the Board are appointees of the Church of England by the Winchester Diocesan Synod. The student governor holds office until the end of the academic year in which the student governor is appointed or until their appointment by the students comes to an end, whichever is sooner. Other governors (not being governors ex-officio) hold office for a term of three years and shall be eligible for reappointment up to a maximum of three terms, of three years each in total. The role of the Chair of the Board of Governors is separated from Winchester’s Chief Executive, the ViceChancellor. The Chair is elected from amongst the independent members. No member of the Board of Governors receives any remuneration for work they do for that Board. The Board has determined that the Vice-Chancellor shall be the Accountable Officer who has the responsibilities set out by the Office for Students for an accountable

officer from time to time. The Board is satisfied that all conditions of receiving and using funds provided by the Office for Students, UK Research and Innovation (including Research England), Education and Skills Funding Agency and the Department for Education have been applied in accordance with the relevant terms and conditions for the year to 31 July 2021. Winchester’s constitution places responsibility for the University’s operations with the ViceChancellor who, as the Accountable Officer, supported by the Executive Leadership Team, implements the Board’s policies and develops and manages Winchester’s business. Winchester endeavours to conduct its business in accordance with the seven principles identified by the Committee on Standards in Public Life (selflessness, integrity, objectivity, accountability, openness, honesty and leadership) and with guidance to institutions of higher education which has been provided by the Committee

of University Chairs in its Guide for Members of Higher Education Governing Bodies in the UK. In accordance with the Memorandum and Articles of Association, the Board of Governors of the University of Winchester is the most senior body of the University, responsible for determining the educational character and objectives of Winchester and for the oversight of its activities including approving its mission, values, strategic vision and long-term business plans, to remain sustainable and financially viable. The Board of Governors is also the principal financial and business authority of the University of Winchester and oversees Winchester’s financial health. In executing its duties, the Board of Governors maintains a comprehensive system of risk management, control and corporate governance, including the prevention and detection of corruption, fraud, bribery and irregularities.

Integrated Annual Report 2020-21

• • •

The Board receives adequate and regular information to monitor performance and track the use of public funds to enable it to identify any material change in its circumstances, including any significant developments that could impact the mutual interests of Winchester and the Office for Students. For the purposes of this statement, public funds include funds received from the Student Loans Company, UK Research and Innovation (including Research England), Education and Skills Funding Agency and the Department for Education. Winchester obtains assurance over the adequacy and effectiveness of the arrangements for corporate governance, risk management and oversight of statutory and other irregularities through its external and internal audit assurance process. Each year, aspects of our corporate governance arrangements are tested through our internal audit function, and the experience of our Board is

annually reviewed by our nomination committee. Our risk management and regulatory reporting are approved by our Board of Governors through the committee structure herein outlined. A ‘Statement of Primary Responsibilities’ provides more detail of the responsibilities of the Board, which include:

• the determination of Winchester’s • • • • •

educational character and objectives and for the oversight of its activities. the effective and efficient use of resources. Winchester’s solvency and the safeguarding of its assets. approving annual estimates of income and expenditure. the assignment of duties and the appraisal of the Vice-Chancellor. determining the identity of the designated staff and their selection, appraisal, remuneration and monitoring of their performance. For 2020-21 the Designated Staff are the Vice-Chancellor, the First Deputy Vice-Chancellor,

the Chief Operating Officer, the Deputy Vice-Chancellor, the Assistant Vice-Chancellor, the Dean of Spiritual Life, and the Clerk to the Governing Body. the setting of a framework for the pay and general conditions of employment of the staff who are not designated staff. after consultation with the staff, making the rules relating to the conduct of the staff;. the appointment of an Auditor.

The Vice-Chancellor is the Chief Executive Officer who has a general responsibility to the Board of Governors for the organisation, direction and management of Winchester. Under the Office for Students terms and conditions (OfS 2019.12) between Office for Students and the Board of Governors, the ViceChancellor is the Accountable Officer of the University of Winchester and in that capacity can be summoned to appear before the Public Accounts Committee of the House of Commons. Winchester maintains a Register of Interests of members of the Board (and senior managers) which may be consulted by arrangement with the Clerk to the Governors. In accordance with its Memorandum and Articles of Association, Winchester has appointed a Clerk to the Governors who provides independent advice on matters of governance to Board members. The Board of Governors (Board) delegates operational management control of the University to the Executive Leadership Team (ELT), which is chaired by the ViceChancellor. Our ELT meets at least three times each month and once a month they meet with the Deans of Faculty to focus on the academic delivery and other related matters; known as the University Management Group (UMG) Membership and attendance for all Board Committees can be found on pages 58 and 59 of this report.

University of Winchester

STANDING COMMITTEE The Board has delegated to the Standing Committee the primary responsibility for reviewing all aspects of strategic planning, estates strategy, academic affairs, student affairs and all financial matters. The Committee undertakes a detailed review of the annual budget and makes recommendations to the Board for its approval or further revisions.

arrangements are in place to promote economy, efficiency and effectiveness.

It is responsible for the annual review of the five-year financial forecast, monitors financial and management accounts at each meeting and is responsible for the monitoring of treasury management policy and options.

Members of the Committee do not have executive authority and whilst senior managers attend meetings of the Committee, they are not members. The Committee Chair is not a member of any other sub-committee of the Board. The Committee meets at least once a year without the external and internal auditors to consider performance and to advise the Board on the appointment of auditors. It is entitled to meet at least once a year with the external and internal auditors without Winchester officers present.

RISK AND AUDIT COMMITTEE

REMUNERATION COMMITTEE

The Risk and Audit Committee is responsible for reviewing the audit aspects of Winchester’s financial statements, and the audit plans and final audit reports. It considers the appropriateness of the internal auditor’s risk assessment and audit plans and reviews their investigative reports. It monitors the implementation of all agreed audit-based recommendations. The Committee is responsible for exercising governor oversight and reporting to the Board on the adequacy and effectiveness of Winchester’s risk management strategy, control and governance, as well as the management and quality assurance of data submitted to the Office for Students, Higher Education Statistics Agency, Student Loans Company, and other funding bodies. The Committee also satisfies itself that Winchester policies and positions on ethical and other behaviours are followed, including on health and safety, whistleblowing, anti‐bribery, reportable events, fraud and irregularity. It considers reports from the Office for Students as they affect Winchester’s business and monitors adherence with regulatory requirements. The Committee also satisfies itself that suitable

The primary function of the Remuneration Committee is to determine annually the remuneration of the designated staff. A secondary function of the Committee is to determine any severance payment to be made to a senior post holder in respect of the termination of their employment, under the terms of a settlement agreement, as and when this arises. The Remuneration Committee is committed to complying with all the elements of the Committee for

University Chairs’ (CUC) guidelines on best practice, as set out in its Higher Education Senior Staff Remuneration Code. It always seeks to ensure that its decisions are based on robust evidence, including performance measured against personal objectives, the performance of Winchester measured against its KPIs and targets, and the use of relevant benchmarking comparators. The committee recognises that it must strike the right balance between recruiting, rewarding and retaining the best senior staff possible. The Committee values senior staff who can deliver the best outcomes for students and for the institution whilst at the same time demonstrating effective use of limited resources and achieving value for money. The Remuneration Committee members are all independent, nonexecutive members of Winchester’s Board of Governors. The ViceChancellor is not a member of the Committee and plays no part in the final discussions and decision making of the Committee in relation to determining the emoluments of any of the senior staff within its remit. In line with CUC best practice guidance, the Committee is not chaired by the Chair of the Board.

Integrated Annual Report 2020-21

NOMINATIONS COMMITTEE The Nominations Committee regularly reviews which skills, knowledge and experience the Board requires. It leads the process for recruiting and recommending candidates to the Board to fill vacant Governor positions on the Board. It is responsible for developing, implementing and reviewing processes for the selection and recruitment of the Chancellor, independent governors, the Chair and the Vice-Chair of the Board, the Vice-Chancellor, and members of the designated staff. The Committee makes recommendations to the Board about the membership of Board committees and those Winchester committees with governor representation, seeking to ensure that committees have a balanced and appropriate range of members. It also develops and oversees the implementation of the induction, training and development of governors.

HUMAN RESOURCES COMMITTEE This committee is responsible for the governance of employment-related

matters. It sets the framework for the pay and conditions and development for our staff, as well as the procedures for their appointment. The Committee also receives recommendations from management arising from negotiations between the University and the recognised Unions and submits recommendations to the Board of Governors as appropriate. Recommendations from the Universities and Colleges Employers’ Association on conditions of service are received and discussed at this committee. This committee serves as a point of contact for the recognised Trade Unions, and is also responsible for hearing any employment appeals on behalf of the Board of Governors.

TRADE UNION FACILITY TIME REPORTING Recent changes in legislation introduced a new requirement to publish data on trade union facility time. This new duty applies to all public sector employers. Universities in England fall within the definition of public sector employers for this purpose. The

Human Resources Committee led the process for data collection which we reported on to the government in compliance with their new requirements.

FOUNDATION COMMITTEE The Foundation Committee is responsible for monitoring and making recommendations to the Board on matters related to our Christian foundation. From this perspective, it monitors the interpretation and execution of Winchester’s mission, values, Strategic Plan and Foundation Strategy. It seeks to encourage the critical study of faith throughout Winchester. The committee fosters positive relationships and engagement between the University of Winchester, the Diocese of Winchester, the Cathedral, the local parish and beyond. This committee also agrees to the programme of Foundation events and receives regular reports from the Chaplaincy, the Centre for Music and the Department of Theology, Religion and Philosophy and other University areas of the institution where appropriate.

University of Winchester

OTHER COMMITTEES In addition to the aforementioned committees, Winchester holds the following committee meetings with student and/or Student Union representation as previously denoted.

BOARD OF GOVERNORS

Human Resources Committee

Risk & Audit Committee

Nominations Committee

Standing Committee

Remuneration Committee

Foundation Committee

Executive Leadership Team

Senate Student Experience Committee

University Management Group

Equality and Diversity Committee

Joint Health and Safety Committee

Fundraising Committee

Sustainability Committee

Honorary Award Committee

Senate Academic Development Committee

Academic Regulations, Policies and Procedures Committee

Faculty Management Group

Senate Research and Knowledge Exchange Committee

Research Degree Quality Committee

Faculty Academic Development Committees

RKE Ethics Committee

RKE Grants Committee

Faculty RKE Committee

PG Cert Programme Committee

Programme Committees

REMUNERATION COMMITTEE’S DECISION ON VICE-CHANCELLOR’S SALARY

University funds, so as to ensure value for money and the protection of the Institution’s reputation.

2020/21 was an unusual year for the Remuneration Committee due to the timing of the Former Vice-Chancellor’s retirement. Usually, in determining the Vice-Chancellor’s remuneration the Remuneration Committee takes into account a range of factors to inform its determination of the remuneration of the head of institution. The Committee’s decisions are based on the premise of fair, appropriate and justifiable remuneration that demonstrates procedural fairness and sensitivity to the stewardship of

The Committee has access to a range of information to inform its decisions including: the University’s latest key performance indicators and associated red, amber and green ratings and trends, set against agreed strategic targets for the University as a whole; the latest position on HE sector-wide pay negotiations; the current median pay ratio of the Vice-Chancellor to all university staff; HE sector comparator remuneration data for senior staff in similar sized universities including the

University and Colleges Employers Association senior staff remuneration survey and the Committee of University Chairs (CUC) ViceChancellor salary survey; and other relevant data regarding external senior staff in public bodies locally (such as Hampshire County Council and Winchester City Council). In addition, the Remuneration Committee assesses the ViceChancellor’s performance against objectives set for the past year and the Committee members’ own observations, insights and judgements.

Integrated Annual Report 2020-21

Statement of internal controls

The Board of Governors has responsibility for maintaining a sound system of internal controls that supports the achievement of policies, aims and objectives, while safeguarding the public and other funds and assets for which they are responsible. This is in accordance with the responsibilities assigned to the governing body in the Office for Students terms and conditions of funding for higher education institutions dated 6 May 2020 (OfS 2020.22). Since the introduction of the Office for Students, Winchester has complied with the ongoing conditions of registration including giving due regard to relevant guidance about how to comply with consumer protection law when developing and implementing policies, procedures and terms and conditions, and adopting and publishing a Student Protection Plan. We have complied with the terms and conditions of funding made under section 65 of the Further and Higher Education Act 1992, as amended by a statutory instrument setting out the transitional arrangements, the Higher Education and Research Act 2017 (Consequential, Transitional, Transitory and Saving Provisions) Regulations 2018. We comply with the CUC Code of Governance (published in September 2020) and refer to best practice guidance, including guidance from British Universities Finance Directors Group (BUFDG). The system of internal controls is designed to manage rather than eliminate the risk of failure to achieve policies, aims and objectives; therefore, it only provides reasonable and not absolute assurance of effectiveness. The system of internal controls is based on an on-going process designed to identify risks to the achievement of policies, aims and objectives, to evaluate the nature and extent of those risks and to manage them efficiently, effectively and economically. This process has been in place for the year ended 31 July 2021 and up to the date of approval of the Financial Statements, and accords with the Office for Students guidance. The Board of Governors has responsibility for reviewing the effectiveness of the system of internal controls. The following processes have been established:

•

The Board currently meets at regular intervals of at least five times per year to consider Winchester’s plans and strategic direction.

Board receives periodic reports from the Chair of the • The Risk and Audit Committee concerning internal controls, and it requires regular reports from managers on the steps they are taking to manage risks in their areas of responsibility, including progress reports on key projects. The Board and Vice-Chancellor receive an annual report from the Chair of the Risk and Audit Committee covering the business of the Committee over that year.

Board has delegated to the Risk and Audit • The Committee some of the responsibility for providing oversight of risk management.

Risk and Audit Committee receives regular • The reports from the internal auditor, which includes their independent opinion on the adequacy and effectiveness of Winchester’s system of internal controls, together with recommendations for improvement.

programme of review is undertaken to identify • Aandregular keep up to date the record of risks facing the organisation.

awareness is facilitated at Winchester and • Risk operational levels as appropriate to the risk. Risk management is embedded in all of our operations.

system of key performance and risk indicators have • Abeen developed. robust risk prioritisation methodology based on risk • Aranking and cost-benefit analysis has been established. An organisation-wide Risk Register, informed by HEFCE’s guidance, ‘Risk Management: a guide to good practice for higher education institutions’, is maintained. The Risk Register identifies those risks which might prevent Winchester from achieving its strategic priorities.

are received from budget holders, department • Reports heads and project managers on internal control activities. The Board’s review of the effectiveness of the system of internal controls is informed by the internal audit service, which operates to standards defined in Office for Students Accounts Direction (OfS 2019.41).

University of Winchester

The internal auditor submits regular reports on the adequacy and effectiveness of Winchester’s system of risk management, internal controls and corporate governance, and economy, efficiency and effectiveness (value for money) with recommendations for improvement. The Board’s review of the effectiveness of the system of internal controls is also informed by the work of the executive managers within Winchester who have responsibility for the development and maintenance of the internal control framework, and by comments made by the external auditor in their management letter and other reports.

SIGNED ON BEHALF OF THE BOARD OF GOVERNORS:

M B Edwards Chair of Board of Governors

GOVERNORS’ LIABILITY ON DISSOLUTION As per section 7 of the Memorandum and Articles of Association every Governor undertakes to pay up to onepound sterling (£1.00) towards the costs of dissolution and the liabilities incurred by the University while he or she was a Governor, if the University is dissolved while he or she is a Governor, or within one year afterwards.

Professor Sarah Greer Vice-Chancellor

GOING CONCERN

Date: 26 January 2022

After making appropriate enquiries, the Board of Governors has a reasonable expectation that Winchester has adequate resources to continue in operational existence for at least 12 months from the date of these financial statements, as described within our Statement of principal accounting policies on pages 76 to 80. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

REGISTERED OFFICE: University of Winchester Sparkford Road Winchester Hampshire SO22 4NR

Independent auditor’s report to Board of Governors of University of Winchester Report on the audit of the financial statements OPINION We have audited the financial statements of University of Winchester (“the University”) for the year ended 31 July 2021 which comprise the Statement of Comprehensive Income and Expenditure, Statement of Changes in Reserves, Statement of Financial Position, Cash Flow Statement and related notes, including the Statement of Principal Accounting policies. In our opinion the financial statements:

• give a true and fair view of the state of the University’s affairs as at 31 July 2021, and of the University’s income and expenditure, gains and losses and changes in reserves, and of the University’s cash flows, for the year then ended.

• have been properly prepared in

accordance with UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

• have been properly prepared in

accordance with the Companies Act 2006.

BASIS FOR OPINION We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the University of Winchester in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that

the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.

GOING CONCERN The Board of Governors has prepared the financial statements on the going concern basis as they do not intend to liquidate the University or to cease their operations, and as they have concluded that the University’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over their ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”). In our evaluation of the Board of Governors’ conclusions, we considered the inherent risks to the University’s business model and analysed how those risks might affect the University’s financial resources or ability to continue operations over the going concern period. Our conclusions based on this work:

• we consider that the Board of

Governors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate

• we have not identified, and concur with the Board of Governors’ assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the

University’s ability to continue as a going concern for the going concern period. However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the University will continue in operation.

FRAUD AND BREACHES OF LAWS AND REGULATIONS – ABILITY TO DETECT To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:

• Enquiring of the Board of Governors,

the Risk and Audit Committee, internal audit and inspection of policy documentation as to the University’s high-level policies and procedures to prevent and detect fraud, including the internal audit function, and the University’s channel for “whistleblowing”, as well as whether they have knowledge of any actual, suspected or alleged fraud.

• Reading Board of Governors and Risk and Audit Committee minutes. • Using analytical procedures to

identify any unusual or unexpected relationships.

We communicated identified fraud risks throughout the audit team and remained alert to any indications of

fraud throughout the audit. As required by auditing standards, and taking into account possible pressures to meet loan covenants, we perform procedures to address the risk of management override of controls and the risk of fraudulent revenue recognition, in particular the risk that income from tuition fees is recorded in the wrong period and the risk that management may be in a position to make inappropriate accounting entries.

environment including the entity’s procedures for complying with regulatory requirements.

We did not identify any additional fraud risks.

First, the University is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation, pensions legislation and specific disclosures required by higher education related legislation, including the Accounts Direction issued by the Office for Students on 25 October 2019. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

In determining the audit procedures we took into account the results of our evaluation and testing of the operating effectiveness of some of the fraud risk management controls. We also performed procedures including: journal entries to test • Identifying based on risk criteria and comparing the identified entries to supporting documentation. These included revenue journals made to unrelated accounts and unusual journal entries in relation to cash and borrowings.

cash receipts in the period • Inspecting prior to and following 31 July 2021 to verify tuition fee income had been recognised in the correct accounting period. Identifying and responding to risks of material misstatement due to noncompliance with laws and regulations We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the Board of Governors and other management (as required by auditing standards) and discussed with the Board of Governors and other management the policies and procedures regarding compliance with laws and regulations. As the University is regulated, our assessment of risks involved gaining an understanding of the control

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.

Second, the University is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the need to include significant provisions. We identified the following areas as those most likely to have such an effect: compliance with higher education regulatory requirements of the Office for Students and recognising the regulated nature of the University’s activities. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. Context of the ability of the audit to detect fraud or breaches of law or regulation Owing to the inherent limitations of

an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of nondetection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing noncompliance or fraud and cannot be expected to detect non-compliance with all laws and regulations

OTHER INFORMATION The Board of Governors is responsible for the other information, which comprises the Financial Review for the year ended 31 July 2021. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work: have not identified material • we misstatements in the other information.

opinion the information given • inin our the Financial Review, is consistent with the financial statements.

our opinion those reports have • inbeen prepared in accordance with the Companies Act 2006.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION Under the Companies Act 2006, we are required to report to you if, in our opinion:

• adequate accounting records. not been kept by the • have University, or returns adequate for our audit have not been received from branches not visited by us.

University’s financial statements • the are not in agreement with the accounting records and returns.

disclosures of directors’ • certain remuneration specified by law are not made.

have not received all the • we information and explanations we

BOARD OF GOVERNORS RESPONSIBILITIES As explained more fully in their statement set out on pages 55 to 56, the Board of Governors is responsible for: the preparation of the financial statements and for being satisfied that they give a true and fair view; such internal control as it determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing the University’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless it either intends to liquidate the University or to cease operations, or has no realistic alternative but to do so.

require for our audit.

AUDITOR’S RESPONSIBILITIES Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/ auditorsresponsibilities.

We have nothing to report in these respects.

Report on other legal and regulatory requirements We are required to report on the following matters by the Accounts Direction dated 25 October 2019 issued by the Office for Students (‘the Accounts Direction’).

In our opinion, in all material respects: from whatever source administered by the • funds University for specific purposes have been properly

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

1992 institutions.

We are required by the Accounts Direction to report to you where the University has an access and participation plan that has been approved by the Office for Students’ director of fair access and participation and the results of our audit work indicate that the University’s expenditure on access and participation activities for the financial year disclosed in Note 7(b) has been materially misstated.

Education and Skills Funding Agency and the Department for Education have been applied in accordance with the relevant terms and conditions.

We are also required by the Accounts Direction to report to you where the results of our audit work indicate that the University’s grant and fee income, as disclosed in note 3(a) to the financial statements has been materially misstated.

applied to those purposes and managed in accordance with relevant legislation.

has been applied in accordance with the • income University’s Statutes (or articles of government for post

provided by the Office for Students, UK Research • funds and Innovation (including Research England), the

financial statements meet the requirements of the • the Accounts Direction dated 25 October 2019 issued by the Office for Students.

We have nothing to report in these Respects.

The purpose of our audit work and to whom we owe our responsibilities This report is made solely to the Board of Governors, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and paragraph 13(2) of the University’s Articles of Government and section 124B of the Education Reform Act 1988.

Our audit work has been undertaken so that we might state to the Board of Governors those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the University and the Board of Governors for our audit work, for this report, or for the opinions we have formed.

Rees Batley Senior Statutory Auditor for and on behalf of KPMG LLP, Statutory Auditor Chartered Accountants Date: 28 January 2022 Office Address: KPMG LLP, 66 Queen Square Bristol BS1 4BE

Integrated Annual Report 2020-21

Financial statements UNIVERSITY OF WINCHESTER Statement of Comprehensive Income and Expenditure Year Ended 31 July 2021

2021

2020

£'000

Notes Income Tuition fees and education contracts Funding body grants Research grants and contracts Other income Investment income Total income before endowments

1 2 3 4 5

68,259 4,083 291 11,648 77 84,358

65,698 3,253 291 11,558 111 80,911

Endowments

84,358

80,911

45,472 25,298 6,164 2,455 79,389

45,857 26,149 5,095 2,341 79,442

4,969

1,469

6,837

(17,682)

Total comprehensive surplus/(deficit) for the year

11,806

(16,213)

Represented by: Endowment Comprehensive Income for the year Unrestricted comprehensive surplus/(deficit) for the year

11,806

(16,213)

11,806

(16,213)

Total income Expenditure Staff costs Other operating expenses Depreciation Interest and other finance costs Total expenditure

6 7 9 8

Surplus for the year Actuarial gain/(loss) in respect of pension schemes

All items of income and expenditure relate to continuing activities. The accompanying notes form part of these financial statements.

University of Winchester

UNIVERSITY OF WINCHESTER Statement of Changes in Reserves Year Ended 31 July 2021

Endowment

Income and expenditure account

Revaluation reserve

Total

£'000

35,837

82,780

118,658

Income and expenditure surplus

4,969

Other comprehensive surplus

6,837

Transfers between revaluation and income and expenditure reserves

1,692

(1,692)

Total comprehensive income for the year

13,498

(1,692)

11,806

49,335

81,088

130,464

Balance at 31 July 2020

Balance at 31 July 2021

The accompanying notes form part of these financial statements.

Integrated Annual Report 2020-21

UNIVERSITY OF WINCHESTER UNIVERSITY OFWINCHESTER WINCHESTER UNIVERSITY UNIVERSITY OF OF WINCHESTER A company limited by guarantee and registered in England and Wales. A company limited byguarantee guarantee and registered inEngland England and Wales. A company A company limited limited by by guarantee and and registered registered in in England and and Wales. Wales. UNIVERSITY OF WINCHESTER Registration number: 05969256 Registration number: 05969256 Registration Registration number: number: 05969256 05969256 AStatement company limited by guarantee and registered in England and Wales. of Financial Position at 31 July 2021 Statement ofFinancial Financial Position at 31July July 2021 Statement Statement of of Financial Position Position at 31 at 31 July 2021 2021 Registration number: 05969256 Statement of Financial Position at 31 July 2021

Notes 999 9 10 1010 10 9 10

2021 2021 2021 2021 £'000 £'000 £'000 £'000 2021 £'000--- 206,023 206,023 206,023 206,023 -660 660 660 660 206,023 660 206,683 206,683 206,683 206,683

2020 2020 2020 2020 £'000 £'000 £'000 £'000 2020 £'000 76 7676 76 209,314 209,314 209,314 209,314 76650 650 650 650 209,314 650 210,040 210,040 210,040 210,040

11 11 11 11 12 1212 12 11 13 1313 13 12 13 14 1414 14

206,683 25 2525 25 5,163 5,163 5,163 5,163 25 5,016 5,016 5,016 5,016 5,163 30,041 30,041 30,041 30,041 5,016 40,245 40,245 40,245 40,245 30,041 40,245 (12,253) (12,253) (12,253) (12,253)

210,040 36 3636 36 5,730 5,730 5,730 5,730 36 16 1616 16 5,730 22,711 22,711 22,711 22,711 16 28,493 28,493 28,493 28,493 22,711 28,493 (11,634) (11,634) (11,634) (11,634)

(12,253) 27,992 27,992 27,992 27,992

(11,634) 16,859 16,859 16,859 16,859

27,992 234,675 234,675 234,675 234,675

16,859 226,899 226,899 226,899 226,899

Notes Notes Notes Notes Non-current assets Non-current assets Non-current Non-current assets assets Intangible assets Intangible assets Intangible Intangible assets assets Non-current assets Tangible fixed assets Tangible fixed assets Tangible Tangible fixed fixed assets assets Intangible assets Investment property and other investments Investment property and other investments Investment Investment property property and and other other investments investments Tangible fixed assets Investment property and other investments Current assets Current assets Current Current assets assets Stock Stock Stock Stock Current assets Trade and other receivables Trade and other receivables Trade Trade and and other other receivables receivables Stock Investments Investments Investments Investments Trade and other receivables Cash and cash equivalents Cash and cash equivalents Cash Cash and and cash cash equivalents equivalents Investments Cash and cash equivalents Less: Creditors: amounts falling due within one year Less: Creditors: amounts falling due within one year Less: Less: Creditors: Creditors: amounts amounts falling falling due due within within one one year year Less: Creditors: amounts Net current assets Net current assets Net Net current current assets assets falling due within one year Net current assets Total assets less current liabilities Total assets less current liabilities Total Total assets assets less less current current liabilities liabilities Total assets less current liabilities Creditors: amounts falling due after more than one year Creditors: amounts falling due after more than one year Creditors: Creditors: amounts amounts falling falling due due after after more more than than one one year year

15 1515 15

234,675 (65,832) (65,832) (65,832) (65,832)

226,899 (66,586) (66,586) (66,586) (66,586)

Creditors: amounts falling due after more than one year Pension provisions Pension provisions Pension Pension provisions provisions

15 16 1616 16

(65,832) (38,379) (38,379) (38,379) (38,379)

(66,586) (41,655) (41,655) (41,655) (41,655)

Pension provisions Total net assets Total net assets Total Total net net assets assets

(38,379) 130,464 130,464 130,464 130,464

(41,655) 118,658 118,658 118,658 118,658

130,464

118,658

Total net assets Restricted Reserves Restricted Reserves Restricted Restricted Reserves Reserves Income and expenditure endowment reserve Income and expenditure endowment reserve Income Income and and expenditure expenditure ---endowment - endowment reserve reserve Restricted Reserves Income and expenditure - endowment reserve Unrestricted Reserves Unrestricted Reserves Unrestricted Unrestricted Reserves Reserves Income and expenditure account Income and expenditure account Income Income and and expenditure expenditure account account Unrestricted Reserves Revaluation reserve Revaluation reserve Revaluation Revaluation reserve reserve Income and expenditure account Total Unrestricted Reserves Total Unrestricted Reserves Total Total Unrestricted Unrestricted Reserves Reserves Revaluation reserve Total Unrestricted Total Reserves Total Reserves Total Total Reserves Reserves Reserves

41 4141 41

41 49,335 49,335 49,335 49,335 81,088 81,088 81,088 81,088 49,335 130,423 130,423 130,423 130,423 81,088 130,423 130,464 130,464 130,464 130,464

41 35,837 35,837 35,837 35,837 82,780 82,780 82,780 82,780 35,837 118,617 118,617 118,617 118,617 82,780 118,617 118,658 118,658 118,658 118,658

Total Reserves 130,464 118,658 The financial statements on pages 72 to 93 were approved by the Board of Governors on 26 January 2022 The financial statements onpages pages 72to to93 93were were approved bythe the Board ofGovernors Governors on26 26January January 2022 The The financial financial statements statements on on pages 72 72 to 93 were approved approved by by the Board Board of of Governors on on 26 January 2022 2022 and signed on its behalf by: and signed onits itsbehalf behalf by:by: and and signed signed on on its behalf by: The to 93 93 were were approved approved by by the the Board Boardof ofGovernors Governorson on26 26January 2022 Thefinancial financialstatements statements on on pages pages 72 72 to January 2022 signedby: on its behalf by: and signed onand its behalf ………………………………………………………………………………… …………………………………………………………………………… ………………………………………………………………………………… …………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… …………………………………………………………………………… …………………………………………………………………………… M Edwards Professor Greer MEdwards Edwards Professor Greer M M Edwards Professor Professor SSSGreer S Greer ………………………………………………………………………………… …………………………………………………………………………… Chair of Board of Governors Vice-Chancellor Chair ofBoard Board ofGovernors Governors Vice-Chancellor Chair Chair of of Board of of Governors Vice-Chancellor Vice-Chancellor M Edwards Professor S Greer Chair of Board of Governors Vice-Chancellor The notes on pages 81 to 93 form part of these financial statements. The notes onpages pages 81to to93 93form form part ofthese these financial statements. The The notes notes on on pages 81 81 to 93 form part part of of these financial financial statements. statements. The notes on pages 81 to 93 form part of these financial statements.

University of Winchester

UNIVERSITY OF WINCHESTER Cash Flow Statement UNIVERSITY UNIVERSITY UNIVERSITY OFWINCHESTER WINCHESTER OF For the year OF ended 31 WINCHESTER July 2021 Cash CashFlow Flow CashStatement Statement Flow Statement For Forthe the For year year the ended ended year ended 31 31July July31 2021 2021 July 2021

Cash flow from operating activities Surplus for the year Cash Cash from flowoperating from operating activities activities Cashflow flow from operating activities Adjustment for non-cash Surplus Surplus for for year the year items Surplus forthe the year Amortisation Adjustment Adjustment for for non-cash items Adjustment fornon-cash non-cash items items Depreciation Amortisation Amortisation Amortisation Impairments Depreciation Depreciation Depreciation Fair value gain on Investment Property Impairments Impairments Impairments Decrease in stock Fair Fairgain value on Investment ontrade Investment Property Property Fairvalue value gain ongain Investment Property Decrease/(Increase) in and other receivables Decrease Decrease in in stock Decrease instock stock (Decrease)/Increase in creditors Decrease/(Increase) Decrease/(Increase) Decrease/(Increase) intrade trade inand and trade other other andreceivables receivables other receivables Increase in provisionsin UNIVERSITY OF operating WINCHESTER (Decrease)/Increase increditors creditors (Decrease)/Increase (Decrease)/Increase in in creditors Cashflow from activities Statement Changes in Reserves Increase Increase in provisions in provisions Increase inof provisions Adjustment forJuly investing or financing activities Year Ended 31 2020 Cashflow Cashflow from operating from operating activities activities Cashflow from operating activities Investment income Adjustment Adjustment for for investing or or financing activities activities Adjustment forinvesting investing orfinancing financing activities Interest payable Investment Investment income Investment income Gain on saleincome of fixed assets Interest Interest payable payable Interest payable Capital grant income Endowment Gain on Gain sale on of fixed ofassets fixed assetsactivities Gaincash on sale ofsale fixed assets Net inflow from operating Capital grant grant income CapitalCapital grantincome income Cash flows frominflow investing Net Netinflow cash from operating fromactivities operating activities activities Netcash cash inflow from operating activities £'000 Proceeds from sale of fixed assets Cash Cash from flows investing from investing activities activities Cashflows flows from investing activities Capital grant receipts Proceeds Proceeds from from of fixed ofassets fixed assets Proceeds fromsale sale ofsale fixed assets New investment deposits Balance at 31 July 2019 41 Capital Capital grant receipts grant receipts Capital grantdeposits receipts Investment New investment New investment deposits deposits New investment deposits Investment income Income and expenditure surplus/(deficit) Investment Investment deposits deposits Investment deposits Payments made to acquire fixed assets Investment Investment income income Investment income Other comprehensive deficit Payments Payments made made to acquire fixed fixed assets Payments madeto toacquire acquire fixedassets assets Cash flows from financing activities Transfers between revaluation and income Interest paid Cash flows Cash from flows financing from financing activities activities Cash flows from financing activities Interest element of finance lease payments and expenditure reserves Interest Interest paid Interest paid paid New loans Interest Interest element of ofborrowed finance lease lease payments Interest element offinance finance leasepayments payments Repayments ofelement amounts Total comprehensive income/(deficit) for New loans New loans New loans Capital the yearelement of finance lease payments Repayments Repayments of of amounts borrowed borrowed Repayments ofamounts amounts borrowed Capital element element of of finance lease lease payments CapitalCapital element offinance finance leasepayments payments Balance at 31 July 2020 41 Increase in cash and cash equivalents in the year

Notes

31 July 2021 31 July 2020 £'000 £'000 Notes Notes Notes 31 31July July31 2021 2021 July 31 2021 31July July31 2020 2020 July 2020 £'000 £'000 £'000 £'000 £'000 4,969 1,469 £'000 4,969 4,969 4,969 1,469 1,469 1,469 76 164 9 6,164 5,095 76 76 164 164 76 164 257 99 9 6,164 6,164 6,164 5,095 5,095 5,095 (10) (5) 257 --9 257 11 257 (10) (5) (5) (10) (10) (657) (5) 567 11 11 1,463 99 9 11 (59) 567 567 567 (657) (657) (657) 3,005 1,494 (59) (59) 1,463 1,463 1,463 (59) 14,980 9,032 3,005 3,005 3,005 1,494 1,494 1,494 14,980 14,98014,980 9,032 9,032 9,032 (14) (53) 8 2,455 2,341 (14) (53) (14) (53) (4) (14) (22) (53) Income and Revaluation 88 8 2,455 2,455 2,455 2,341 2,341 2,341 (377) (306) expenditure Total (4) (4) 10,992 (22) (4)reserve (22) (22) 17,040 account (377) (377) (377) (306) (306) (306) 17,040 17,04017,040 10,992 10,99210,992 £'000 4 £'000 22 £'000 1,223 348 44 4 22 22 22 (5,000) -134,871 50,358 84,472 1,223 348 1,223- 1,223 348 109 348 (5,000) -(5,000) 14(5,000) 56 1,469 1,469 109 109 109 (3,130) (20,592) 14 14(20,057) 56 56 14 56 (6,889) (17,682) (3,130) (17,682) (20,592) (3,130)(3,130)(20,592) (20,592) (6,889) (20,057) (6,889)(6,889)(20,057) (20,057) (856) (882) 1,692 (991) (1,692) (1,018) (856) (882) (856)- (856) 20,000 (882) (882) (991) (991) (991) (1,018) (1,018) (677) (1,132) (1,018) 20,000 20,000 (14,521) (297) (1,692) (287)20,000 (16,213) (677) (677) (677) (1,132) (1,132) (1,132) (2,821) 16,681 (297) (287) (287) (297) 82,780 (287) 35,837 (297) 118,658 7,330(2,821) 16,681 7,61616,681 (2,821) (2,821) 16,681

Cash and cash equivalents at beginning theyear year 13 Increase Increase Increase in in cash cash inand and cash cash cash andequivalents equivalents cash equivalents in inofthe the in year the year Cash and cash equivalents at end of the year 13 Cash Cashand and Cash cash cash andequivalents equivalents cash equivalents at atbeginning beginning at beginning of ofthe theyear of year the year 13 13 Cash Cash cash andequivalents cash equivalents at of the of the year 13 13 Cashand and cash equivalents atend endat ofend theyear year The accompanying notes form part of these financial statements. The accompanying notespart form offinancial these financial statements. The Theaccompanying accompanying notes notesform form part of ofpart these these financial statements. statements.

The accompanying notes form part of these financial statements.

13 13

22,711 7,330 7,330 7,330 30,041 22,711 22,71122,711 30,041 30,04130,041

15,095 7,616 7,616 7,616 22,711 15,095 15,09515,095 22,711 22,711 22,711

Integrated Annual Report 2020-21

Statement of principal accounting policies BASIS OF PREPARATION The University’s financial statements have been prepared in accordance with United Kingdom Accounting Standards, including Financial Reporting Standard 102 (FRS 102) and the Statement of Recommended Practice: Accounting for Further and Higher Education (HE SORP 2019). They have also been prepared in accordance with the ‘carried forward’ powers and duties of previous legislation (Further and Higher Education Act 1992 and the Higher Education Act 2004) and the new powers of the Higher Education and Research Act 2017 during the transition period to 31 July 2019, the Accounts Direction issued by the Office for Students, the Terms and conditions of funding for higher education institutions issued by the Office for Students and the Terms and conditions of Research England Grant. The financial statements are prepared in sterling which is the functional currency of the group and rounded to the nearest £’000. The University is a public benefit entity and therefore has applied the relevant public benefit requirement of the applicable UK laws and accounting standards. The University is registered with the Office for Students (OfS).

GOING CONCERN The University’s activities, together with the factors likely to affect its future development, performance and position, are set out in the Strategic Review Incorporating the Operational Review which forms part of the Board of Governors’ Integrated Report. The Board of Governors’ Financial Review also describes the University’s financial position, its cash flows, liquidity position and borrowing facilities. The financial statements have been prepared on a going concern basis which the Board of Governors consider to be appropriate for the following reasons. The Board of Governors have prepared income and expenditure, balance sheets and cash flow statement forecasts for the four years ending 31 July 2025. After reviewing these forecasts, the Board of Governors is of the opinion that, taking account of severe but plausible downsides, including the impact of interest rate rises, tuition fee reductions and student recruitment reductions, the University will have sufficient funds to meet their liabilities

as they fall due over the period of 12 months from the date of approval of the financial statements (the going concern assessment period). In January 2021, the Board of Governors approved the University’s financial forecast. This forecast has recently been updated to incorporate the University’s latest business plan following a special board meeting held in October 2021. When approving the plan, the Board of Governors considered several different strategies and the consequences each would have on the financial sustainability of the University. At the meeting scenario modelling that had been undertaken was presented and reviewed. This modelling was based upon the February 2021 OfS Financial Forecast and provided a long-term vision of academic improvement and estates development with financial projections to 2028/29. The Board of Governors considered:

• the University’s strategic vision to 2030 • the academic strategy • demographic and market led data analysis • a funding options appraisal • an estates vision master plan • financial modelling of various scenarios The University has no undrawn lending facilities and the budgeted cash flow does not require any additional facilities within the next 12 months. The approved business plan does not breach any covenant thresholds on our existing facilities with the Triodos Bank and Allied Irish Bank for the periods to 31 July 2029. Having reviewed the scenario modelling, the Board of Governors is confident that the University will have sufficient funds to continue to meet their liabilities as they fall due for at least 12 months from the date of approval of the financial statements. This is based upon the strategic growth and associated estates development plan approved by the Board of Governors on 12 October 2021. The Board of Governors have therefore prepared the financial statements on a going concern basis.

University of Winchester

BASIS OF CONSOLIDATION At 31 July 2021 the University held significant controlling interest in Winchester Business School Limited and Winchester Management School Limited. These companies have been dormant since incorporation, therefore these financial statements do not consolidate the results of these companies. The financial statements do not include the income and expenditure of Winchester Student Union as the University does not exert significant control or dominant influence over policy decisions.

INCOME RECOGNITION Income from the sale of goods or services is credited to the Statement of Comprehensive Income (SCI) when the goods or services are supplied to the external customers or the terms of the contract have been satisfied. Tuition fee income is stated gross of any expenditure which is not a discount and credited to the Statement of Comprehensive Income (SCI) over the period in which students are studying. Where the amount of the tuition fees is reduced, by a discount for prompt payment, income receivable is shown net of the discount. Bursaries and scholarships are accounted for gross as expenditure and not deducted from income. Education contracts are recognised when the Institution is entitled to the income, which is period in which students are studying, or where relevant, when performance conditions have been met. Investment Income is credited to the SCI on a receivable basis. Funds the University receives and disburses as paying agent on behalf of a funding body are excluded from the income and expenditure where the University is exposed to minimal economic benefit related to the transaction.

income or capital gains received within categories covered by section 478-488 of the Corporation Tax Act 2010 (CTA 2010) or section 256 of the Taxation of Chargeable Gains Act, to the extent that such income or gains are applied to exclusively charitable purposes. The University receives no similar exemption in respect of Value Added Tax. Irrecoverable VAT on inputs is included in the cost of such inputs. Any irrecoverable VAT allocated to fixed assets is included in their cost.

GRANT FUNDING Government revenue grants including funding council block grant and research grants are recognised in income over the periods in which the University recognises the related costs for which the grant is intended to compensate. Where part of a government grant is deferred it is recognised as deferred income within creditors and allocated between creditors due within one year and due after more than one year as appropriate. Grants (including research grants) from non-government sources are recognised in income when the University is entitled to the income and performance related conditions have been met. Income received in advance of performance related conditions being met is recognised as deferred income within creditors on the Statement of Financial Position and released to income as the conditions are met.

DONATIONS AND ENDOWMENTS Non-exchange transactions without performance related conditions are donations and endowments. Donations and endowments with donor imposed restrictions are recognised in income when the University is entitled to the funds. Income is retained within the restricted reserve until such time that it is utilised in line with such restrictions at which point the income is released to general reserves through a reserve transfer.

TAXATION STATUS The University is an exempt charity within the meaning of Part 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 to the Finance Act 2010 and therefore meets the definition of a charitable company for UK Corporation Tax purposes. Accordingly, the University is potentially exempt from taxation in respect of

Donations with no restrictions are recognised in income when the University is entitled to the funds. Investment income and appreciation of endowments is recorded in income in the year in which it arises and as either restricted or unrestricted income according to the terms or restrictions applied to the individual endowment fund.

Integrated Annual Report 2020-21

CAPITAL GRANTS

ENHANCED PENSIONS

Government capital grants are recognised in income over the expected useful life of the asset. Other capital grants are recognised in income when the University is entitled to the funds subject to any performance related conditions being met.

The actual cost of any enhanced on-going pension to a former member of staff is paid by the University annually. An estimate of the expected future cost of any enhancement to the on-going pension of a former member of staff is charged in full to the University’s Statement of Comprehensive Income in the year that the member of staff retires. In subsequent years a charge is made to provisions in the balance sheet using a basis provided by the funding bodies.

ACCOUNTING FOR RETIREMENT BENEFITS The principal pension schemes for the University’s staff are the Local Government Pension Scheme (LGPS) and the Teachers’ Pension Scheme (TPS). The schemes are defined benefit schemes but the TPS scheme is a multi-employer scheme where it is not possible to identify the assets of the scheme that are attributable to the University. Accordingly, the TPS scheme is accounted for on a defined contribution basis and contributions to the scheme are recognised as expenditure in the period to which they are payable. The University is able to identify its share of the assets and liabilities of the LGPS and accordingly the University recognises its share of the scheme’s assets and liabilities in its Statement of Financial Position.

EMPLOYMENT BENEFITS Short term employment benefits such as salaries and compensated absences are recognised as an expense in the year in which the employees render service to the University. Any unused benefits are accrued and measured as the additional amount the University expects to pay as a result of the unused entitlement.

FINANCE LEASES Leases in which the University assumes substantially all the risks and rewards of ownership of the leased asset are classified as finance leases. Leased assets acquired by way of finance lease and the corresponding lease liabilities are initially recognised at an amount equal to the lower of their fair value and the present value of the minimum lease payments at the inception of the lease. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to each period during the lease term to produce a constant periodic rate of interest on the remaining balance of the liability.

OPERATING LEASES Costs in respect of operating leases are charged to the Statement of Comprehensive Income on a straight- line basis over the lease term.

University of Winchester

TANGIBLE FIXED ASSETS

IMPAIRMENT

Land and buildings Land and buildings that were owned by the University at the FRS 102 transition date of 1 August 2014 were valued by Alder King. The valuations were on a depreciated replacement cost basis for specialist assets and at market value where this was reasonable to obtain. The University followed the transitional arrangements as at 31 July 2014 and does not intend to carry out regular revaluations of these assets in the future.

A review for impairment of property, plant and equipment is carried out if events change or circumstances indicate that the carrying amount of asset may not be recoverable.

Depreciation and impairment losses are subsequently charged on the revalued amount and subsequent costs that enhance the asset are capitalised and recognised at cost. Newly acquired assets are capitalised at cost. Freehold land is not depreciated as it is considered to have an indefinite useful life. Buildings, plant and machinery are depreciated on a straight-line basis over their expected useful lives.

• Buildings between 10 and 60 years • Plant and Machinery between 5 and 25 years Where an item of land and buildings comprises two or more major components with substantially different useful economic lives (UELs), each component is accounted for separately and depreciated over its individual UEL. Only items of capital expenditure with a value of £5,000 or more per individual item are recognised as fixed assets. No depreciation is charged on assets in the course of construction and finance costs which are directly attributable to the construction of land and buildings are capitalised as part of those assets.

BORROWING COSTS Borrowing costs are recognised as expenditure in the period in which they are incurred.

INTANGIBLE ASSETS Intangible assets are recognised in the Statement of Financial Position at cost and are amortised over a period of between 3 and 10 years representing the estimated economic life of the assets. Intangible assets are subject to impairment review each year.

INVESTMENT PROPERTIES Investment property consists of land and buildings held for rental income or capital appreciation (or both) rather than for use in delivering services. Investment properties are revalued at 31 July each year at market value with movements recognised in the Statement of Comprehensive Income (SCI).

INVESTMENTS Non-current asset investments are held on the Statement of Financial Position at fair value unless it is not possible to determine a value in which case they are held at amortised cost less impairment. Current asset investments are included in the balance sheet at fair value.

STOCKS Stocks are valued at the lower of cost and net realisable value.

CASH AND CASH EQUIVALENTS Cash includes cash in hand, deposits repayable on demand and overdrafts. Deposits are repayable on demand if they are in practice available within 24 hours without penalty.

Equipment Equipment, including computers and software, costing less than de minimis of £5,000 per individual item are recognised as expenditure. All other equipment is capitalised.

Cash equivalents are short term deposits (maturity term of less than 3 months from the placement date), highly liquid investments that are readily convertible to known amounts of cash with insignificant risk of change in value.

Capitalised equipment is stated at cost and depreciated over its expected useful life as follows:

PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS Provisions are recognised in the financial statements when:

IT equipment Motor vehicles Fixtures and fittings

3 years 5 years 10 years

Depreciation methods, useful lives and residual values are reviewed at the date of preparation of each Statement of Financial Position.

a. t he University has a present obligation (legal or constructive) as a result of a past event. b. it is probable that an outflow of economic benefits will be required to settle the obligation. c. a reliable estimate can be made of the amount of the obligation.

Integrated Annual Report 2020-21

The amount recognised as a provision is determined by discounting the expected future cash flows at a rate that reflects risks specific to the liability.

KEY ESTIMATES AND JUDGEMENTS

A contingent liability arises from a past event that gives the University a possible obligation whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the University. Contingent liabilities also arise in circumstances where a provision would otherwise be made but either it is not probable that an outflow of resources will be required or the amount of the obligation cannot be measured reliably.

TANGIBLE FIXED ASSETS

A contingent asset arises where an event has taken place that gives the University a possible asset whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the University.

LOCAL GOVERNMENT PENSION SCHEME

Contingent assets and liabilities are not recognised in the Statement of Financial Position but are disclosed in the notes.

RESERVES Reserves are classified as restricted or unrestricted. Restricted endowment reserves include balances which, through endowment to the University, are held as a permanently restricted fund which the University must hold in perpetuity. Other restricted reserves include balances where the donor has designated a specific purpose and therefore the University is restricted in the use of these funds.

In preparing these financial statements, management have made the following judgements:

Assets have been reviewed to assess whether there are indicators of impairment. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset. Where indicators exist at 31 July 2021, the recoverable amount of the affected asset is estimated and compared with its carrying amount. The recoverable amount is the higher of the asset’s fair value less costs to sell and its value in use.

The present value of the Local Government Pension Scheme defined benefit liability depends on several factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions, which are disclosed in Note 21, will impact the carrying amount of the pension liability. The figures included in the University’s Financial Statements allow for the 2019 Actuarial Valuation of the Fund. The effect of allowing for this 2019 Valuation is shown in the “Liability gains/losses arising during the period” and the “Asset gains/losses arising during the period” and is reflected in the Statement of Financial Position. The demographic assumptions have also been updated to reflect those used for the 2019 Actuarial Valuation. These changes may have had a positive or negative effect on the Statement of Financial Position. The Current service cost has also been updated to reflect the results of the 2019 valuation.

University of Winchester

Notes to accounts Notes to the Financial Statements for the year ended 31 July 2021 Note 1

2021 £'000 61,226 3,929 1,862 1,242 68,259

2020 £'000 58,213 3,948 2,078 1,459 65,698

2021 £'000 2,215 948 544 376 4,083

2020 £'000 1,621 862 464 306 3,253

2021 £'000 291

2020 £'000 291

2021 £'000 3,043 1,331 66,696 482 1,081 72,633

2020 £'000 2,308 1,236 63,886 479 1,333 69,242

2021 £'000 9,243 86 2,319 11,648

2020 £'000 8,951 157 2,450 11,558

2021 £'000 14 10 53 77

2020 £'000 53 5 53 111

Salaries Social security costs Other pension costs Apprenticeship levy Sub-total

2021 £'000 32,613 3,190 9,519 150 45,472

2020 £'000 34,089 3,343 7,678 153 45,263

Restructuring costs Total

45,472

594 45,857

Tuition fees and education contracts Full-time home and EU students Full-time international students Part-time students Self-financing courses

Note 2

Funding body grants Recurrent grant from OfS Recurrent research grant Specific grants Deferred capital grants released in year

Note 3

Research grants and contracts Grants

Note 3a

The sources of grant and fee income are as follows: Grant income from the OfS Grant income from other bodies Fee income for taught awards (exclusive of VAT) Fee income for research awards (exclusive of VAT) Fee income from non-qualifying courses (exclusive of VAT) Total grant and fee income

Note 4

Other income Residences, catering and conferences Other services rendered Other income

Note 5

Endowment and Investment Income Income from short term investments Fair value gain on Investment Property Income from Investment Property Income from endowments

Note 6

Staff costs

Integrated Annual Report 2020-21

Notes to the Financial Statements Note 6

Staff costs (continued) During the year, the University was served by two vice-chancellors; Professor Joy Carter (1 August 2020 to 31 March 2021) and Professor Elizabeth Stuart (from 1 April 2021 to 31 December 2021). The highest paid director of the University is the Vice-Chancellor and the emoluments of the two people who served in that role are set out below: Emoluments of Former Vice-Chancellor (1 Agust 2020 to 31 March 2021) Professor Joy Carter Basic salary Payments in lieu of pension contributions Salary sacrifice arrangements Other taxable benefits Non-taxable benefits Total emoluments including pension costs Emoluments of Vice-Chancellor (1 April 2021 to 31 July 2021) Professor Elizabeth Stuart Basic salary Payments in lieu of pension contributions Total emoluments including pension costs

2021 £

2020 £

155,471 32,804 (3,874) 16,549 7,129 208,079

233,207 48,585 (5,803) 2,574 10,678 289,241

63,186 12,898 76,084

Neither the Former Vice-Chancellor or Vice-Chancellor benefitted from employer pension contributions during the year ended 31 July 2021. Other taxable benefits represents payments made to a private medical health scheme (2020) and pay in lieu of holiday entitlement (2021). Non-taxable benefits represent payments made for life insurance cover. Vice-Chancellors basic pay and total remuneration expressed as a multiple of the median of all other employees of the University are: Multiples for Former Vice-Chancellor (1 Agust 2020 to 31 March 2021) Professor Joy Carter Basic pay Total remuneration Multiples for Vice-Chancellor (1 April 2021 to 31 July 2021) Professor Elizabeth Stuart Basic pay Total remuneration

2021 No.

2020 No.

6.0 6.8

6.1 6.5

No.

4.9 5.0

The median salary and remuneration calculations for the year ended 31 July 2021 are calculated in accordance with the methodology prescribed by the OfS in Accounts Direction 2019.41, where the median pay is calculated on a full-time equivalent basis for the salaries paid by the University to all its employees. The methodology is based on all staff employed at any point during the financial year, including all part-time staff and agency workers, which have been converted to a full-time equivalent cost. The University has incorporated the OfS threshold as a reasonable basis for excluding lower paid part-time staff on variable hours, casual or temporary contracts from the pay multiple calculations. The threshold reflects employees that are not required to be included in real-time reporting to HMRC who should be excluded from the calculation, as requested by the OfS. In accordance with the OfS Accounts Direction 2019.41 paragraph 12(c), the University is required to provide an explanation of the process adopted for judging the performance and total remuneration package for the head of the institution, the Vice-Chancellor. The remuneration of the Vice-Chancellor is based on robust evidence, comprising a combination of: • Performance against personal objectives • The performance of the University against its KPIs and targets • Relevant benchmarking comparators In relation to benchmarking, particular attention is given to comparator data for the heads of providers of similar sized higher education sector institutions. Account is also taken of the outcome of higher education sector pay negotiations for staff on the national pay spine. Further information and disclosures required by the OfS are included in the Remuneration Committee's decision on the Vice-Chancellor's salary on page 65 of this integrated report.

University of Winchester

Notes to the Financial Statements Note 6

Staff costs (continued) Other higher paid staff The number of employees with a basic salary exceeding £100,000 per annum, excluding pension contributions, is:

£120,000 to £125,000 to

£124,999 £129,999

Average staff numbers by major category : By Headcount Academic Administration By full time equivalent staff (FTE) Academic Administration

2021 Number

2020 Number

1 1

Headcount 388 564 952

Headcount 393 553 946

FTE 319 484 803

FTE 328 472 800

Severance payments Severence payments amounted to £96k in the year and were made to 12 employees (2020: £594k to 32 employees). Amounts for compensation for loss of office and redundancy for all staff are approved by the University's senior management team in accordance with delegated authority. Key management personnel Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the University and include the Vice-Chancellor, the First Deputy Vice-Chancellor, the Chief Operating Officer, the Assistant Vice-Chancellor and members of the Board of Governors who are also members of staff of the University. 2021 2020 The number of key management personnel

2021 £'000 1,141 169 1,310

2020 £'000 920 69 989

Staff costs includes compensation paid to key management personnel as follows:

Salaries Other pension costs Key management personnel compensation

There was no compensation for loss of office payable to any key management personnel in the year (2020: £58k payable to one member of staff).

Integrated Annual Report 2020-21

Notes to the Financial Statements Note 7

Analysis of total expenditure by activity Residences, catering and conferences Consumables Books and periodicals Fellowships, bursaries, scholarships and prizes Heat, light, water and power Repairs and general maintenance Grants to Winchester Students Union Rentals Other expenses

Surplus before taxation is stated after charging: Auditor's remuneration (excluding VAT): External auditor's remuneration in respect of audit services External auditor's remuneration in respect of non-audit services Internal Audit

Note 7 (b)

Access and participation Access Investment Financial Support Disability Support Research and evaluation

2021 £'000 3,737 574 1,941 1,869 1,386 2,175 340 469 12,807 25,298

2020 £'000 5,286 1,419 1,735 1,774 1,309 2,436 332 379 11,479 26,149

2021 £'000

2020 £'000

63 16 34

54 9 23

2021 £'000 592 1,042 531 226 2,391

2020 £'000 329 1,335 603 221 2,488

Of these costs, £1,085k are already included in the staff costs disclosed in note 6 (2020: £802k). The University’s 2020/21 Access and Participation Plan forecast expenditure of approximately £2,268k. The total expenditure incurred by the University in connection with access and participation activities amounted to £2,391k (£2,488k in 2019/20) and was therefore broadly in-line with the total identified in the Access and Participation Plan approved by the OfS. The costs reported comprise direct financial support to students plus direct staff costs and direct expenses incurred in respect of the University's access and participation activities and no allocation or apportionment of overheads has been made. A copy of the University's Access and Participation Plan for 2020/21 is available using the link below: https://winchester.ac.uk/media/content-assets/documents/University-of-Winchester-2020-2021---20242025-Access-Participation-Plan.pdf

Note 8

Interest and other finance costs Interest on bank loans Interest on finance leases Net interest on defined benefit scheme

2021 £'000

2020 £'000

908 991 556 2,455

879 1,014 448 2,341

University of Winchester

Notes to the Financial Statements Note 9

Fixed Assets Freehold Land and Buildings £'000

Leasehold Land and Buildings £'000

£'000

Equipment, Furniture and Fittings £'000

Assets in the Course of Construction £'000

£'000

160,893 557 46,970 208,420

29,071 190 29,261

609 23 632

5,664 408 1,515 7,587

48,053 1,952 (48,485) (257) 1,263

244,290 3,130 (257) 247,163

Depreciation At 1 August 2020 Charge for the year Disposals At 31 July 2021

22,190 4,719 26,909

8,034 556 8,590

391 88 479

4,361 801 5,162

34,976 6,164 41,140

Net book value At 31 July 2021

181,511

20,671

153

2,425

1,263

206,023

At 31 July 2020

138,703

21,037

218

1,303

48,053

209,314

Cost and valuation At 1 August 2020 Additions Transfers Impairment Disposals At 31 July 2021

Motor Vehicles

Total

The net book value of Leasehold Land and Buildings includes an amount of £20,671k (2020: £21,037k) in respect of assets held under finance leases. The University's freehold land and buildings were revalued as at 31st July 2014 by Alder King LLP. The valuations were prepared in accordance with the RICS Valuation - Professional Standard December 2014 ('Red Book'), FRS102 and the HE SORP 2019. The University took the transitional provision under FRS102 section 35 to elect to use fair value as deemed cost. The valuation of each part of University of Winchester was on the following bases of value and assumptions: - Owner-occupied property - to Fair Value ('FV') assuming that the property would be sold as part of the continuing business - Specialised property - to FV using the depreciated replacement cost ('DRC') approach and assuming that the property would be sold as part of the continuing business Note 10

Investment Property and Other Investments The University holds two classes of investments as follows:

10 a)

Other Investments Hampshire Community Bank

10 b)

Investment Property Opening balance Fair value gain on Investment Property Closing balance Total Investments and Investment Property

2021 £'000 100 100

2020 £'000 100 100

2021 £'000 550 10 560

2020 £'000 545 5 550

660

650

The investment property fair value gain of £10,000 is for a single property and is based on a valuation by Alder King LLP, Pembroke House, 15 Pembroke Road, Bristol, BS8 3BA. The investment property was valued on 31 July 2021. The valuation report was prepared in accordance with the RICS Valuation – Global Standards 2020 incorporating the International Valuation Standards (“Red Book”) and the UK national supplement effective from 14 January 2019, FRS 102 and the SORP (for Further and Higher Education).

Integrated Annual Report 2020-21

Notes to the Financial Statements Note 11

Trade and other receivables Amounts falling due within one year: Debtors Prepayments and accrued income

2021 £'000

2020 £'000

1,023 4,140 5,163

1,308 4,422 5,730

2021 £'000 5,008 8 5,016

2020 £'000 8 8 16

2021 £'000 30,041 30,041

2020 £'000 22,711 22,711

2021 £'000 1,277 311 884 1,769 884 6,759 369 12,253

2020 £'000 667 298 784 1,185 1,135 7,257 11 297 11,634

Trade and other receivables include long term prepayments of £1.7m (2020: £1.7m). Note 12

Current Investments Nationwide 95 Day Saver Lloyds 175 Day Account

Note 13

Cash and cash equivalents Cash and cash equivalents

Note 14

Creditors : amounts falling due within one year

Mortgages and unsecured loans Obligations under finance lease Trade payables Other Payables Social security and other taxation payable Accruals and deferred income Loans repayable to Funding Council Deferred income - Government capital grants

Mortgages and unsecured loans During the the financial year the University had the following borrowing arrangements in place: 1. A £30.0 million loan from Triodos Bank raised specifically for the purpose of funding the University's West Downs development and amortising as follows: a) £10 million amortising from May 2018 to July 2043 at 3.09%, fixed until June 2028. b) £10 million amortising from January 2021 to July 2043 at 2.025%, fixed until January 2028. c) £10 million on a variable rate of interest, amortising to July 2043. 2. A £5 million loan from Allied Irish Bank, amortising over 25 years from August 2006, £2.7 million of the loan at a fixed rate of 6.25% and £2.3 million of the loan at 5.13% specifically for the purpose of building the University Centre. At 31 July 2021, £2.9 million remains outstanding and the loans are repayable by instalments in the period to July 2031 and are secured on the University's freehold property. 3. During the year two Allied Irish Bank loans completed the loan term and were fully repaid as follows: a) A £4.7 million loan amortising over 25 years commencing in January 1996 at 6.43% completed its term with the final payment being made in January 2021. b) A £5.9 million loan amortising over 19 years commencing in March 2002 at 6.3% completed its term with the final payment being made in December 2020. Note 15

Creditors : amounts falling due after more than one year

Mortgages and unsecured loans Obligations under finance lease Other Creditors Funding Council loan Deferred Capital Grants

2021 £'000 31,604 23,446 10,782 65,832

2020 £'000 32,880 23,756 9,950 66,586

University of Winchester

Notes to the Financial Statements Note 15

Creditors : amounts falling due after more than one year (continued)

15 a)

Maturity of debt Mortgages and unsecured loans are repayable as follows: Due between one and two years Due between two and five years Due in five years or more Due after more than one year

15 b)

2020 £'000 1,274 4,048 27,558 32,880

2021 £'000 324 1,058 22,064 23,446

2020 £'000 311 1,014 22,431 23,756

Enhanced Pensions £'000 348 (24) 324

Total £'000 41,655 (24) (3,252) 38,379

Finance leases The finance lease obligations that the University is committed to are as follows:

Between one and two years Between two and five years In five years or more

Note 16

2021 £'000 1,314 4,175 26,115 31,604

Provisions for liabilities At 31 July 2020 Utilised in year Charge to Income and Expenditure Account At 31 July 2021

LGPS Scheme USS Scheme £'000 £'000 40,534 773 (3,230) (22) 37,304 751

USS deficit The obligation to fund the past deficit on the Universities Superannuation Scheme (USS) arises from the contractual obligation with the pension scheme for total payments relating to benefits arising from past performance. Management have assessed future employees within the USS scheme and salary payment over the period of the contracted obligation in assessing the value of this provision. Enhanced Pension Provision The enhanced pension provision relates to the cost of staff that have already left the University's employment from which the University cannot reasonably withdraw at the Statement of Financial Position date. This provision has been recalculated in accordance with guidance issued by the funding bodies. The principal assumptions for this calculation are:

Note 17

Price inflation

2021 7.03%

2020 7.03%

Lease obligations

2021 £'000

2020 £'000

Payable during the year

3,432

4,372

3,368 8,283 26,340 37,991

3,573 8,288 28,249 40,110

Future minimum lease payments due: Payable within 1 year Later than 1 year and not later than 5 years Later than 5 years Total lease payments due

Note 18

Receivable during the year

298

408

Future minimum lease payments receivable Receivable within 1 year Later than 1 year and not later than 5 years Later than 5 years Total lease payments receivable

229 717 946

378 1,148 1,526

Capital commitments

Commitments contracted for

2021 £'000

2020 £'000

3,879

243

Integrated Annual Report 2020-21

Notes to the Financial Statements Note 19

Contingent liabilities The incorporation of the University in 2008/09 triggered certain provisions of the Occupational Pension Schemes (Employer Debt) Regulations 2005 relating to the unincorporated University's membership of the Universities Superannuation Scheme (USS). The Regulations require that the incorporation of the University be treated as a "Withdrawal Event", potentially causing the University's pension liability in respect of sixteen staff members of the scheme to crystallise. USS agreed with the University to enter into a "Withdrawal Arrangement" that allowed settlement of the liability to be deferred indefinitely, subject to a guarantee by the new incorporated University entity. The principal circumstances in which the liability may crystallise include: (i) in the event that the USS is wound-up; and (ii) in the event that the Pension Regulator of the USS require that the liability be paid.

Note 20

Events after the reporting period There are no events that have occurred since 31 July 2021 that are required to be reported in these financial statements.

Note 21

Defined Benefit Obligations The University's employees belong to two principal post-employment benefit plans: the Teachers’ Pension Scheme England and Wales (TPS) for academic and related staff; and the Hampshire County Council Pension Fund which is part of the Local Government Pension Scheme (LGPS) for non-teaching staff. Both are multiemployer defined-benefit plans.

Teachers’ Pension Scheme The Teachers' Pension Scheme (TPS or scheme) is a statutory, unfunded, defined benefit occupational scheme, governed by the Teachers' Pensions Regulations 2010 (as amended), and the Teachers’ Pension Scheme Regulations 2014 (as amended). These regulations apply to teachers in schools and other educational establishments, including academies, in England and Wales that are maintained by local authorities. In addition, teachers in many independent and voluntary-aided schools and teachers and lecturers in some establishments of further and higher education may be eligible for membership. Membership is automatic for full-time teachers and lecturers and, from 1 January 2007, automatic too for teachers and lecturers in parttime employment following appointment or a change of contract. Teachers and lecturers are able to opt out of the TPS. The Teachers’ Pension Budgeting and Valuation Account Although members may be employed by various bodies, their retirement and other pension benefits are set out in regulations made under the Superannuation Act (1972) and Public Service Pensions Act (2013) and are paid by public funds provided by Parliament. The TPS is an unfunded scheme and members contribute on a ’pay as you go‘ basis – contributions from members, along with those made by employers, are credited to the Exchequer under arrangements governed by the above Acts. The Teachers' Pensions Regulations 2010 require an annual account of the Teachers' Pension Budgeting and Valuation Account to be kept of receipts and expenditure (including the cost of pension increases). From 1 April 2001, the Account has been credited with a real rate of return, which is equivalent to assuming that the balance in the Account is invested in notional investments that produce that real rate of return. Valuation of the Teachers’ Pension Scheme As a result of the latest scheme valuation employer contributions were increased in September 2019 from a rate of 16.4% to 23.6%. Employers also pay an additional charge equivalent to 0.08% of pensionable salary costs to cover administration expenses. The next valuation is expected to take effect in 2023. The new employer contribution rate for the TPS was implemented in September 2015. A copy of the latest valuation report can be found by following this link to the Teachers' Pension Scheme website: https://www.teacherspensions.co.uk/news/employers/2019/04/teachers-pensions-valuation-report.aspx

University of Winchester

Notes to the Financial Statements Note 21

Defined Benefit Obligations (continued)

Teachers’ Pension Scheme (continued) Scheme Changes In December 2018, the Court of Appeal held that transitional protection provisions contained in the reformed judicial and firefighter pension schemes, introduced as part of public service pension reforms in 2015, gave rise to direct age discrimination and were therefore unlawful. The Supreme Court, in a decision made in June 2019, rejected the Government's application for permission to appeal the Court of Appeal's ruling and subsequently referred the case to an Employment Tribunal to determine a remedy which will need to be offered to those members of the two schemes who were subject of the age discrimination. Since then, claims have also beed lodged against the main public service schemes including the TPS. The Department has conceded those in line with the rest of the government. In July 2020 HM Treasury launched a 12-week public consultation which will provide evidence to support the delivery of an appropriate remedy for the affected schemes, including TPS. A final remedy will be determined once the results of the consultation are established. In December 2019, a further legal challenge was made against the TPS relating to an identified equalities issue whereby male survivors of opposite-sex marriages and civil partnerships are treated less favourably than survivors in same-sex marriages and civil partnerships. The Secretary of State for Education agreed not to defend the case. In June 2020, the Employment Tribunal recorded its findings in respect of the claimant. DfE is curently working to establish what changes are necessary to address this discrimination. Any impact of these events will be taken into account when the next scheme valuation is implemented. This is scheduled to be implemented in April 2023, based on April 2020 data. The TPS pension costs to the University in the year amounted to £3,476k (2020: £3,410k). FRS 102 (28) Under the definitions set out in FRS 102 (28.11), the TPS is a multi-employer pension plan. The University is unable to identify its share of the underlying assets and liabilities of the plan. Accordingly, the University has taken advantage of the exemption in FRS 102 and has accounted for its contributions to the scheme as if it were a defined-contribution plan. The University has set out above the information available on the plan and the implications for the University in terms of the anticipated contribution rates. Local Government Pension Scheme The LGPS is a funded defined-benefit plan, with the assets held in separate funds administered by Hampshire County Council. The total contributions made for the year ended 31 July 2021 were £3,210k of which employer’s contributions totalled £2,514k and employees’ contributions totalled £696k. The agreed contribution rates for future years are 22% for employers and range from 5.5% to 12.5% for employees, depending on salary. GMP judgement (past service cost £0.05m) - 'Guaranteed Minimum Pension (GMP) is a portion of pension that was accrued by individuals who were contracted out of the State Second Pension between 6 April 1978 and 6 April 1997. The rate at which GMP was accrued, and the date it is payable, is different for men and women, meaning there is an inequality for male and female members who have GMP. This was a consequence of the State Pension itself being unequal at the time. On 26 October 2018, the High Court handed down a judgment involving the Lloyds Banking Group’s defined benefit pension schemes. The judgment concluded the schemes should be amended to equalise pension benefits for men and women in relation to guaranteed minimum pension benefits, “GMP”. In March 2016, the Government introduced an ‘interim’ solution for public sector schemes to pay full inflationary increases on GMP’s for those reaching State Pension Age (SPA) between 6 April 2016 and 5 December 2018 to ensure these members continued to receive full inflationary increases on the combined public sector scheme and State pensions. This was included in the 2016 valuation of the LGPS fund and was therefore recognised on the balance sheet for year ending 31 July 2017. In January 2018, the interim solution was extended to individuals reaching SPA on or before 5 April 2021. In addition, the Government has indicated that it is committed to continuing to compensate all members of public sector pension schemes reaching SPA after April 2021.

Integrated Annual Report 2020-21

Notes to the Financial Statements Note 21

Defined Benefit Obligations (continued) Local Government Pension Scheme (continued) The constructive obligation at 31 July 2021, based on a valuation of the University’s liabilities, for the Government’s commitment to pay pension increases on GMP’s for members reaching SPA after December 2018, which includes a liability for Government’s commitment to compensate all members in the future for changes to the State Pension has been included in the 2020/21 pension cost. McCloud Judgement - In December 2018 the Court of Appeal ruled in the 'McCloud / Sergeant' judgement that the transitional protection arrangements put in place when the Firefighters' and Judges' pensions scheme were reformed were age discriminatory. The Government applied to the Supreme Court for permission to appeal this judgement, however the Supreme Court rejected the Government's request on 27 June 2019. The next stage is for the case to be referred to the Employment Tribunal to agree the remedy, following appropriate consultation. In a Ministerial Statement dated 15 July 2019 the Government committed to extending a remedy across all public sector schemes which included similar transitional protection arrangements, which includes the LGPS. A constructive obligation at 31 July 2021 has been calculated, in relation to a potential remedy, based on a valuation of the University's liabilities, and which has been included in the pension cost. Principal Actuarial Assumptions The following information is based upon a full actuarial valuation of the fund at 31 March 2019. Principal actuarial assumptions

Discount Rate CPI inflation Rate of increase to pensions in payment Pension accounts revaluation rate Rate of general increase in salaries

31 July 2021

31 July 2020

31 July 2019

31 July 2018

(% pa) 1.7 2.6 2.6 2.6 3.6

(% pa) 1.4 2.2 2.2 2.2 3.2

(% pa) 2.2 2.2 2.2 2.2 3.7

(% pa) 2.8 2.1 2.1 2.1 3.6

Mortality assumptions The mortality assumptions are based on the actual mortality experience of members within the Fund based on analysis carried out as part of the 2019 Actuarial Valuation, and allow for expected future mortality improvements. Sample life expectancies at age 65 in normal health resulting from these mortality assumptions are shown below. 2021

2020

Pensioner member aged 65 Male Female

23.1 25.5

23.0 25.5

Active member aged 45 Male Female

24.8 27.3

24.7 27.2

Value at 31 July 2021 57.9% 6.2% 17.1% 1.0% 17.8% 100.0%

Value at 31 July 2020 55.0% 6.1% 20.8% 1.6% 16.5% 100%

Asset Allocation

Equities Property Government bonds Corporate bonds Cash Other

The amount included in the Stement of Financial Position in respect of the defined benefit pension plan is as follows: 2021 2020 £'000 £'000 Fair value of plan assets 59,665 48,906 Present value of plan liabilities (96,969) (89,440) Net pensions liability (note 16) (37,304) (40,534)

University of Winchester

Notes to the Financial Statements Note 21

Defined Benefit Obligations (continued) Local Government Pension Scheme (continued) Amounts recognised in the Statement of Comprehensive Income in respect of the Plan are as follows:

Amounts included in staff costs Current service cost Past service cost Interest on net defined benefit liability Total Amounts recognised in Other Comprehensive Income Asset gains arising during the period Liability (loss) arising during the period Amounts recognised in Other Comprehensive Income

2021 £'000 5,571 550 6,121

2020 £'000 4,117 27 427 4,571

2021 £'000 8,034 (1,197) 6,837

2020 £'000 1,363 (19,045) (17,682)

The split of the liabilities at the last valuation between the various categories of members is as follows: Active members 57% Deferred Pensioners 18% Pensioners 25% Changes in the present value of defined benefit obligations Defined benefit obligations at start of period Current service cost Interest expense on defined benefit obligation Contributions by participants Actuarial gains Net benefits paid out Past service cost Defined benefit obligations at end of period Changes to the fair value of assets Opening fair value of assets Interest income on assets Re-measurement gains on assets Employer contributions Contributions by participants Net benefits paid out Fair value of plan assets at end of period Actual return on assets Interest income on assets Gain on assets

Reconciliation of funded status to balance sheet Fair value of assets Present value of (liabilities) (Liability) recognised on the balance sheet

2021 £'000 89,440 5,571 1,249 696 1,197 (1,184) 96,969

2020 £'000 64,580 4,117 1,423 695 19,045 (447) 27 89,440

2021 £'000 48,906 699 8,034 2,514 696 (1,184) 59,665

2020 £'000 44,020 996 1,363 2,279 695 (447) 48,906

2021 £'000 699 8,034 8,733

2020 £'000 996 1,363 2,359

2021 £'000 59,665 (96,969) (37,304)

2020 £'000 48,906 (89,440) (40,534)

Integrated Annual Report 2020-21

Notes to the Financial Statements Note 22

Financial instruments The University has chosen to adopt Sections 11 and 12 of FRS 102 in full in respect of financial instruments.

Financial assets and liabilities Financial assets and financial liabilities are recognised when the University becomes a party to the contractual provisions of the instrument. Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations rather than the financial instrument's legal form. All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets measured at fair value through the profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless arrangement constitutes a financing transaction. A financial asset or financial liability that is payable or receivable in one year is measured at the undiscounted amount expected to be received or paid net of impairment, unless it is a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

The financial instruments may be analysed as follows:

Financial assets that are debt instruments measured at amortised cost Financial liabilities measured at amortised cost

2021 £'000 38,201 (63,899)

2020 £'000 24,114 (64,093)

Financial assets measured at amortised cost comprise cash and cash equivalents, investments and receivables. Financial liabilities measured at amortised cost comprise mortgages, unsecured loans, finance leases, trade payables, accruals and other payables. Note 23

Related party Transactions Due to the nature of the University’s operations and the composition of the Board of Governors being drawn from local public and private sector organisations, it is inevitable that transactions will take place with organisations in which a member of the Board of Governors may have an interest. A register of Governors’ interests is maintained by the University and updated at least annually. All transactions involving organisations in which a member of the Board may have an interest are conducted at arms length and in accordance with the University’s Financial Regulations and follow our standard procurement procedures.

University of Winchester

Notes to the Financial Statements Note 23

Related party Transactions (continued) The following transactions have been identified for disclosure in relation to those organisations related to senior executive staff and members of the Board of Governors: (Income)/ expenditure £'000

(Debtor)/ creditor £'000

Name of organisation

Nature of interest

Hampshire County Council

One of our co-opted Governors receives remuneration from Hampshire County Council.

Purchases Sales

824 (170)

33 -

Hampshire Hospitals NHS Foundation Trust

Our Vice-Chancellor performs a duty as voluntary Chaplain for the Trust

Purchases Sales

155 (148)

(101)

Sales

(239)

Sales

(90)

(26)

Purchases

Purchases Sales

361 (165)

(20)

Ministry of Defence

The Vice-Chair of our Board of Governors and one diocesan appointed Governor receive remuneration from the Ministry

University of Winchester Multi Academy Trust

Our current Vice-Chancellor and former Vice-Chancellor are members of the Trust

Winchester Cathedral Trust

Our former Chair of Governors is a member of the Council

Winchester Student Union

Our Student Governor is also a member of the Winchester Student Union. The Union receives a block grant from the University, which is calculated annually according to a methodology agreed between the University and the Union. All other transactions between the two parties are conducted on a commercial basis.

The University has reviewed the sector guidance in relation to linked charities. There are no such transactions to disclose. As stated in the Statement of Corporate Governance and Internal Control no member of the Board of Governors received any remuneration/ waived payments from the University for the work they do as members of that Board during the year (2020:nil). However, Governors do receive compensation for travel costs. Members of the Board of Governors who are also members of staff of the University receive remuneration in their capacity as members of staff only. There were no expenses paid to or on behalf of members of the Board of Governors in the year ending 31 July 2021 (2020: £873).

Integrated Annual Report 2020-21

Administrative information

REGISTERED OFFICE: University of Winchester Sparkford Road Winchester Hampshire SO22 4NR Telephone: 01962 841515 Facsimile: 01962 842280 Website: http://www.winchester.ac.uk The University of Winchester is a private charitable company limited by guarantee in England and Wales. The University is registered with the Office for Students. Company registration number: 05969256 (England and Wales) University registration numbers; UKPRN: 10003614 OP EID: 02149700

SENIOR OFFICERS AND ADVISORS: Chancellor Chancellor Emeritus Vice-Chancellor and Accountable Officer First Deputy Vice-Chancellor Deputy Vice-Chancellor Chief Operating Officer Assistant Vice-Chancellor Director of Finance and Planning Clerk to the Board of Governors

Alan Titchmarsh Lady Mary Fagan Prof. Sarah Greer The Revd. Prof. Elizabeth Stuart Dr Angus Paddison Gavin Hunter Sam Jones Simon Day Stephen Dowell

PRINCIPAL BANKER

INTERNAL AUDITOR

NatWest Bank PLC 105 High Street Winchester Hampshire SO23 9AW

TIAA Ltd Artillery House Fort Fareham, Newgate Lane Fareham PO14 1AH

EXTERNAL AUDITOR

LAWYER

KPMG LLP 66 Queen Square Bristol BS1 4BE

Blake Morgan New Kings Court Tollgate Chandlers Ford Eastleigh

University of Winchester

Integrated Annual Report 2020-21 - University of Winchester

Articles inside

Administrative information

Statement of principal accounting policies

Notes to accounts

Independent auditor’s report to the Board of Governors

Statement of internal controls

Statement of corporate governance and internal control

Strategic review incorporating the operational review

Value creation model

Statement of Board of Governors’ responsibilities in respect of the strategic report, the directors’ report and the financial statements

Financial review

Materiality

Vice-Chancellor foreword

Chair’s introduction

About us