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. • The Board receives periodic reports from the Chair of 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. • The Board has delegated to the Risk and Audit

Committee some of the responsibility for providing oversight of risk management. • The Risk and Audit Committee receives regular 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. • A regular programme of review is undertaken to identify and keep up to date the record of risks facing the organisation. • Risk awareness is facilitated at Winchester and operational levels as appropriate to the risk. Risk management is embedded in all of our operations. • A system of key performance and risk indicators have been developed. • A robust risk prioritisation methodology based on risk ranking 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. • Reports are received from budget holders, department 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).

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.

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.

GOING CONCERN

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.

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

REGISTERED OFFICE:

University of Winchester Sparkford Road Winchester Hampshire SO22 4NR