Notes to accounts

Notes to the Financial Statements for the year ended 31 July 2021

Note 1 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

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

Restructuring costs Total

2021 2020 £'000 £'000 61,226 58,213 3,929 3,948 1,862 2,078 1,242 1,459 68,259 65,698

2021 2020 £'000 £'000 2,215 1,621 948 862 544 464 376 306 4,083 3,253

2021 2020 £'000 £'000 291 291

2021 2020 £'000 £'000 3,043 2,308 1,331 1,236 66,696 63,886 482 479 1,081 1,333 72,633 69,242

2021 2020 £'000 £'000 9,243 8,951 86 157 2,319 2,450 11,648 11,558

2021 2020 £'000 £'000 14 53

10

5 53 53

- 77 111

2021 2020 £'000 £'000 32,613 34,089 3,190 3,343 9,519 7,678 150 153 45,472 45,263

- 594 45,472 45,857

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 2021 2020

£

£

155,471 233,207 32,804 48,585 (3,874) (5,803) 16,549 2,574 7,129 10,678 208,079 289,241

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

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

2021 2020

No. No.

6.0 6.1 6.8 6.5

Multiples for Vice-Chancellor (1 April 2021 to 31 July 2021) Professor Elizabeth Stuart

Basic pay Total remuneration No. 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.

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:

2021 2020 Number Number

£120,000 to £124,999 £125,000 to £129,999

1 1

1 1

Average staff numbers by major category : By Headcount Academic Administration

By full time equivalent staff (FTE) Academic Administration

Headcount Headcount 388 393 564 553 952 946

FTE FTE 319 328 484 472 803 800

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 12 8

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

Salaries Other pension costs Key management personnel compensation 2021 2020 £'000 £'000 1,141 920 169 69 1,310 989

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).

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

2021 2020 £'000 £'000 3,737 5,286 574 1,419 1,941 1,735 1,869 1,774 1,386 1,309 2,175 2,436 340 332 469 379 12,807 11,479 25,298 26,149

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 2021 2020 £'000 £'000

63 54

16

9 34 23

Note 7 (b) Access and participation

Access Investment Financial Support Disability Support Research and evaluation 2021 2020 £'000 £'000 592 329 1,042 1,335 531 603 226 221 2,391 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 expenditureincurred by the Universityinconnectionwith access and participationactivities amounted to £2,391k (£2,488k in 2019/20)and was therefore broadly in-line with the total identifiedin the Access and Participation Plan approvedby the OfS. The costs reported comprise directfinancial support tostudents plus direct staff costs anddirect expenses incurred in respect of the University's access and participationactivities 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

2021 2020 £'000 £'000

Interest on bank loans Interest on finance leases Net interest on defined benefit scheme

908 879 991 1,014 556 448 2,455 2,341

Notes to the Financial Statements

Note 9 Fixed Assets

Freehold Land and Buildings Leasehold Land and Buildings

Motor Vehicles Equipment, Furniture and Fittings Assets in the Course of Construction Total

£'000 £'000 £'000 £'000 £'000 £'000

Cost and valuation

At 1 August 2020 160,893 29,071 609 5,664 48,053 244,290 Additions 557 190 23 408 1,952 3,130 Transfers 46,970 - - 1,515 (48,485) Impairment - - - - (257) (257) Disposals - - - - - -

At 31 July 2021 208,420 29,261 632 7,587 1,263 247,163

Depreciation

At 1 August 2020 22,190 8,034 391 4,361 Charge for the year 4,719 556 88 801 Disposals - - - -

At 31 July 2021 26,909 8,590 479 5,162 - 41,140

Net book value At 31 July 2021 181,511 20,671 153 2,425 1,263 206,023

- 34,976 - 6,164 - -

At 31 July 2020 138,703 21,037 218 1,303 48,053 209,314

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

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).

- 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 2021 2020 £'000 £'000 100 100 100 100

10 b) Investment Property

Opening balance Fair value gain on Investment Property Closing balance

Total Investments and Investment Property

2021 2020 £'000 £'000 550 545

10

5 560 550

660 650

Notes to the Financial Statements

Note 11 Trade and other receivables

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

Trade and other receivables include long term prepayments of £1.7m (2020: £1.7m). 2021 2020 £'000 £'000

1,023 1,308 4,140 4,422 5,163 5,730

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 2021 2020 £'000 £'000

5,008

8 8 8 5,016 16

2021 2020 £'000 £'000 30,041 22,711 30,041 22,711

2021 2020 £'000 £'000 1,277 667 311 298 884 784 1,769 1,185 884 1,135 6,759 7,257 - 11 369 297 12,253 11,634

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 2020 £'000 £'000 31,604 32,880 23,446 23,756

-

-

-

10,782 9,950 65,832 66,586

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

2021 2020 £'000 £'000 1,314 1,274 4,175 4,048 26,115 27,558 31,604 32,880

15 b) 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

2021 2020 £'000 £'000 324 311 1,058 1,014 22,064 22,431 23,446 23,756

Note 16 Provisions for liabilities

LGPS Scheme USS Scheme

Enhanced Pensions Total £'000 £'000 £'000 £'000

At 31 July 2020

40,534 773 348 41,655

Utilised in year - - (24) (24) Charge to Income and Expenditure Account (3,230) (22) - (3,252)

At 31 July 2021 37,304 751 324 38,379 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.

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.

Enhanced Pension Provision

The principal assumptions for this calculation are:

Price inflation

2021 2020 7.03% 7.03%

Note 17 Lease obligations Payable during the year 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 Receivable during the year 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

Note 18 Capital commitments

Commitments contracted for 2021 2020 £'000 £'000

3,432 4,372

3,368 3,573 8,283 8,288 26,340 28,249 37,991 40,110 298 408

229 378 717 1,148 - 946 1,526

2021 2020 £'000 £'000 3,879 243

Notes to the Financial Statements

Note 19 Contingent liabilities

Note 20 Events after the reporting period

Note 21 Defined Benefit Obligations

Teachers’ Pension Scheme

The Teachers’ Pension Budgeting and Valuation Account

Valuation of the Teachers’ Pension Scheme

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.

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

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.

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.

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.

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.

A copy of the latest valuation report can be found by following this link to the Teachers' Pension Scheme website:

The new employer contribution rate for the TPS was implemented in September 2015.

https://www.teacherspensions.co.uk/news/employers/2019/04/teachers-pensions-valuation-report.aspx

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.

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.

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.

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

Principal actuarial assumptions

31 July 2021 31 July 2020 31 July 2019 31 July 2018 (% pa) (% pa) (% pa) (% pa) 1.7 1.4 2.2 2.8 2.6 2.2 2.2 2.1 2.6 2.2 2.2 2.1 2.6 2.2 2.2 2.1 3.6 3.2 3.7 3.6

Mortality assumptions

Pensioner member aged 65

Male Female 2021 2020

23.1 23.0 25.5 25.5

Active member aged 45

Male Female 24.8 24.7 27.3 27.2

Asset Allocation

Equities Property Government bonds Corporate bonds Cash Other

Value at 31 July 2021

Value at 31 July 2020 57.9% 55.0% 6.2% 6.1% 17.1% 20.8%

-

1.0% 1.6% 17.8% 16.5% 100.0% 100%

The amount included in the Stement of Financial Position in respect of the defined benefit pension plan is as follows:

Fair value of plan assets Present value of plan liabilities

Net pensions liability (note 16)

2021 2020 £'000 £'000 59,665 48,906 (96,969) (89,440) (37,304) (40,534)

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

2021 2020 £'000 £'000 5,571 4,117 - 27 550 427 6,121 4,571

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 2020 £'000 £'000 8,034 1,363 (1,197) (19,045) 6,837 (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

2021 2020 £'000 £'000 89,440 64,580 5,571 4,117 1,249 1,423 696 695 1,197 19,045 (1,184) (447) - 27 96,969 89,440

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

2021 2020 £'000 £'000 48,906 44,020 699 996 8,034 1,363 2,514 2,279 696 695 (1,184) (447) 59,665 48,906

Actual return on assets

Interest income on assets Gain on assets 2021 2020 £'000 £'000 699 996 8,034 1,363 8,733 2,359

Reconciliation of funded status to balance sheet

Fair value of assets Present value of (liabilities) (Liability) recognised on the balance sheet

2021 2020 £'000 £'000 59,665 48,906 (96,969) (89,440) (37,304) (40,534)

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 2020 £'000 £'000 38,201 24,114 (63,899) (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.

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:

Name of organisation Nature of interest

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

Hampshire Hospitals NHS Foundation Trust

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

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

(Income)/ (Debtor)/ expenditure creditor £'000 £'000

Purchases 824 33 Sales (170) -

Purchases 155 - Sales (148) (101)

Sales (239) -

Sales (90) (26)

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. Purchases 29 29

Purchases 361 - Sales (165) (20)

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).