Integrated Annual Report 2019-20 Year ending 31st July 2020
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.
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.
Integrated reporting journey
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University of Winchester at a glance
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Some highlights from this year
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Chair report
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Vice-Chancellor foreword
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Materiality
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Strategic review incorporating the operational review
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Financial review
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Statement of Board of Governors’ responsibilities in respect of the strategic report, the directors’ report and the financial statements
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Our governors
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Statement of corporate governance and internal control
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Statement of internal controls
68
Independent auditor’s report to the Board of Governors
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Financial Statements
73
Statement of principal accounting policies
77
Notes to accounts
81
Administrative information
94
University of Winchester
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About us
Integrated Annual Report 2019-20
Contents
About us
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University of Winchester
Integrated Annual Report 2019-20
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 6), 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. Our ethos is one of a distinctly values-
driven higher education. 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 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 our 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.
SOCIAL JUSTICE 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 trade standards.
Integrated reporting journey
Winchester is one of a select group of universities that have embraced the integrated reporting framework. Therefore, we are leaders in the UK Higher Education Sector providing an exemplar for other public and private sector organisations.
Our Board of Governors has been involved in the development of this annual integrated report. We are still on our integrated reporting journey and are not yet fully compliant with the International Integrated Reporting Council (IIRC) Framework. However, this year’s report significantly improves upon the previous two years reports. We aim to think well beyond financial value when evaluating the value
Winchester has generated throughout the year. In addition to monetary value creation, this report also considers Winchester’s non-monetary value creation. Winchester’s most valuable capital resources include: • Staff and students • Business partners • Social and relationship capital • Intellectual capital These are underpinned by Winchester’s: • Financial capital • Campus estates • Natural resources In preparing for this year’s report, we have also fully embedded integrated thinking in our core operations. Indeed, integrated thinking has been a fundamental principle in our response to the COVID-19 pandemic, drawing support and collaboration from all our departments, as exemplified by our COVID-19 preparedness project detailed on page 14.
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University of Winchester
This framework has enabled us to develop a new and better understanding of how we create, or diminish, value for all our stakeholders. It has improved
institutional decision making, accountability and governance, while promoting transparency and trust. 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 facilitated us to broaden our perspectives, and better connect Winchester’s departments and faculties, to improve the delivery of our Strategic Plan.
Integrated Annual Report 2019-20
Winchester remains at the cutting edge of this important global reporting initiative. We pre-empted the Sustainable Development Goals (SDGs) recommendations, published in January 2020, by aligning the SDGs with Winchester’s value creation model in last year’s report, published in December 2019.
@peterlangdownphotography
Our values
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University of Winchester
Integrated Annual Report 2019-20
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 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 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 At a glance FINANCIAL HIGHLIGHTS (£M)
2019-20
80.5 80.9
2019-20
EBITDA* (£M)
2018-19
2019-20
PROFESSIONAL SERVICE STAFF (HEADCOUNT)
6.7 10.3
2019-20
STUDENT NUMBERS Total students (HESES** Headcount)
32.8 15.8
2018-19
2019-20
7,792 8,001
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2019-20
556 553
2018-19
CAPITAL EXPENDITURE (£M)
2018-19
438 393
2018-19
Integrated Annual Report 2019-20
2018-19
University of Winchester
Total Revenue
ACADEMIC STAFF (HEADCOUNT)
STUDENT NUMBERS Total students (full-time equivalents)
93% 6% of students study full-time
* Earnings Before Interest, Tax, Depreciation and Amortisation
are international students
** Higher Education Students Early Statistics.
10%
of students are postgraduates
Some highlights from this year
Job prospects of Winchester graduates among highest in the UK. The numbers of graduates from Winchester’s undergraduate programmes who are in employment and further study have placed Winchester in the top 10 universities in the country. Winchester is also the highest placed university in the region.
International animal welfare honour for Winchester academic. Congratulations to Professor Andrew Knight, who is among five veterinarians around the globe honoured with a Humane Achievement Award for advocacy and continued work in the field of animal welfare.
Winchester wins the EFQM Global Award for customer/ student satisfaction.
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University of Winchester
Integrated Annual Report 2019-20
Winchester received a Silver award in the Ministry of Defence’s Defence Employer Recognition Scheme for its commitment to the support of armed forces personnel and their families.
Winchester declares a climate emergency as 100 staff and students join Global Climate strike in the city centre.
Team of researchers from the Children and Youth research group, in the Psychology Department, launched a new study aiming to understand how parents are managing the demands of home schooling and parenting during the coronavirus lockdown.
Winchester supports the NHS during coronavirus pandemic by providing campus accommodation to frontline staff unable to stay in their own homes, and providing free face masks to students and staff.
Students and staff who volunteered with organisations and people in the city were honoured for their outstanding contribution at a special University of Winchester Volunteering and Community Champions Awards 2020.
Winchester launched a ÂŁ3.4 million fund to support students who returned home because of the coronavirus outbreak and are no longer living in their campus accommodation.
Winchester leads new study into the effect of coronavirus lockdown on physical activity and wellbeing. A team of researchers led by the University of Winchester has launched a new study to examine the effect of the UK Government’s lockdown strategy on our physical activity levels and wellbeing during the coronavirus pandemic.
University of Winchester
For University Mental Health Day, we hosted a range of activities to raise awareness of the importance of caring for your mental health and wellbeing. Activities included: a wall of kindness to provide inspirational messages for others, a health talk about the beneficial impact of exercise on mental health, mental wellbeing drop-ins, and a visit from a Therapy Dog.
Integrated Annual Report 2019-20
Winchester hosted BBC Radio 4’s politics debate show Any Questions in the Stripe Auditorium.
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Winchester joined other UK universities in pledging to increase Higher Education access for refugees and asylum seekers on World Access to Higher Education Day.
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University of Winchester
Integrated Annual Report 2019-20
Chair report This Integrated Annual Report covers a year that began so well, completing a decade of year-on-year growth against the backdrop of a declining number of 18-year-olds resident in the UK. In 2010, Winchester had just over 4,000 students and a turnover of £46m. As this report shows, we ended the decade with our turnover and student numbers nearly doubled, with turnover just over £80m and our student body at nearly 8,000. As an organisation that prides itself on business excellence, this is something of which the Board and all members of staff should be extremely proud. A notable marker of this success was the completion of the biggest capital project ever undertaken by Winchester – the new £50m teaching and learning building at West Downs. As a key institution within Hampshire, this new iconic building is a point of pride not only for the University but for the city of Winchester too. Also, in the first half of the year, the Board played an active role in shaping Winchester’s new 10-year strategy and accompanying business plan, setting in stone an ambitious plan for continued growth together with a commitment to our values and to business excellence. Then, as the COVID-19 pandemic hit the country, Winchester entered a period of unprecedented uncertainty, requiring rapid changes in the way it operates.
I am proud of how Winchester made the necessary changes to its teaching and social environment, while continuing to deliver strong financial performance. Winchester has undertaken excellent work to manage costs and mitigate income losses resulting from the pandemic. We were able to take the decision to provide generous discounts for students living in Winchester accommodation and to top-up the Government’s furlough scheme to 100% of salary for all staff. Winchester is pleased to deliver a positive outturn for the year. That is a helpful backdrop as we face up to a period of unprecedented challenge, not only from the effects of COVID-19 but also from uncertainties over Government policy. It is in these difficult times that the core strengths of Winchester, its valuesdriven approach and its unwavering commitment to educational excellence, to sustainability and to social justice, will be particularly important. As I come to the end of my tenure as Chair of the Board at the end of July 2021, I remain confident that despite facing a challenging year ahead, the strength of the Board and of the whole team at Winchester will enable the beginning of another successful decade. A C Lovell Chair of Board of Governors
Vice-Chancellor foreword
The strategic vision intentionally covers a 10-year period to look beyond the immediate challenges and opportunities in any given year and sets out a vision of how we will be an institution that makes a difference, making our own contribution for the future of our planet and all life.
This Integrated Annual Report is testament to the quality, passion and dedication of our staff. It highlights the range and excellence of teaching and research across this institution, together with the commitment to sustainability and social justice that runs through everything we do. I hope that as we enter the next year and look further to the future, we are able to continue to see our students and staff flourish, together with the communities we work with locally and globally. Professor Joy Carter CBE DL Vice-Chancellor
Integrated Annual Report 2019-20
But there can be no denying it has been difficult. Our staff and students are precious to us and their wellbeing – both physical and mental – has really been impacted this year.
University of Winchester
In November last year, we launched our 10-year strategic vision – Strategic Vision 2030: A beacon of education excellence, sustainability and social justice. In the foreword, I talked about the significantly different world future generations will face. The climate crisis, technological advancements, globalisation, demographic shifts, geopolitical uncertainty and resource shortages will have a major impact on how we work, connect, go about our lives and care for our planet. The future of Higher Education will be subject to much change and uncertainty, from constant shifts in policy to increasing marketisation and global competition.
In March, together with the rest of the UK, the University went into lockdown and all teaching moved online. Everything changed. We have been extremely proud of the way our staff embraced that change and continue to deliver for our students. We are equally proud of the way our students were determined to make the best of this challenging time.
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The past year has been unlike any I have ever experienced as ViceChancellor. The global pandemic has created levels of uncertainty, risk and anxiety across all parts of society and the economy the likes of which we have not seen for generations. With nearly 2.4 million students and 440,000 staff, the Higher Education sector has had to deal with significant and complex challenges over the past year.
Materiality
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University of Winchester
Integrated Annual Report 2019-20
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 here:
MATERIAL ISSUE
THE STUDENT EXPERIENCE AND QUALITY EDUCATION Winchester understands the impact student experience has on future recruitment in an increasingly competitive market. This experience is underpinned by prospects of a graduate level job or further postgraduate study. Winchester is continually seeking to provide excellence in teaching and the very best student experience possible. We have achieved a National Student Survey (NSS) rating of 81%.
SIGNPOST
This material issue is covered under Student engagement and quality of learning and teaching on page 33, and under Key performance indicators on page 28. We are also making a substantial investment in student employability with a new Careers Centre due to be opened in Autumn 2020.
This material issue is covered under Energy and environment on pages 35 to 36, and Environmental sustainability on page 38.
Winchester, amongst others, is leading the sector by declaring a climate emergency and setting a net-zero carbon target by 2025.
COVID-19 The outbreak of COVID-19 has been an unprecedented crisis, having a hugely detrimental impact on worldwide businesses and economies. Winchester rose to this challenge and worked closely with its governing body, employing a cross-institutional, integrated approach to planning and implementing mitigating actions and a recovery plan for high quality blended learning, complying with Government guidelines.
This material issue is covered on page 14 under Business excellence and growth.
POLITICAL AND ECONOMIC ENVIRONMENT
COMMITMENT TO WINCHESTER’S VALUES AND THE SDGS During a time of political and economic uncertainty, recovering from an unprecedented pandemic outbreak and in an increasingly competitive market, our ability to hold true to Winchester’s core values is important. These values are the bedrock of the institution and underpin our niche within the HE sector.
This material issue is covered on page 50 under Financial environment.
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Winchester remains concerned about the impact of the UK’s departure from the EU. Uncertainty remains around immigration and the impact on EU student funding as well as the longer-term impact on research. Economic uncertainties continue to compound the challenges facing Winchester’s largest pension schemes (Teachers’ Pension Scheme, Local Government Pension Scheme and the Universities Superannuation Scheme).
University of Winchester
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.
Integrated Annual Report 2019-20
THE ENVIRONMENTAL CRISIS
Winchester continues to embed its core values and the SDGs in all that it does, including taught curriculum. This material issue is covered on pages 24 to 26 under United Nations Sustainable Development Goals.
Strategic review incorporating the operational review
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University of Winchester
Integrated Annual Report 2019-20
Business excellence and growth – COVID-19 preparedness Since the outbreak of the COVID-19 pandemic, Winchester has been undertaking a cross-institutional project to prepare for the 2020/2021 academic year. Overseen by the Senior Management Team (SMT), its aim was to provide a safe, friendly and positive experience for students and staff as Winchester opened for its first semester of the 2020/2021 academic year. This project was designed to ensure Winchester could rapidly respond to the changing circumstances of a pandemic, even after implementation. The outbreak of COVID-19 in the UK led to extraordinary challenges for Winchester, as it has done for society as a whole. We responded rapidly to the lockdown in March, moving our teaching online and supporting staff and students to work and study remotely with a new IT infrastructure in place. In a very short amount of time, students and staff had to learn how to work in a completely new way. The months that followed were dedicated to a cross-institutional project to prepare for the 2020/21 Academic Year. This wide-ranging project sought to identify what adaptations would be needed to enable Winchester to continue to attract students and deliver high-quality higher education. The project’s scope included adapting, altering and augmenting:
• Pedagogical practice • Programme curricula • Student assessment • IT infrastructure • Estates infrastructure • Enrolment
• Campus life (accommodation and catering)
• Student welfare • Learning support • Library service • Graduation procedures PROJECT METHOD We broadly based the project’s structure on HM Government’s Functional Standard for Project Delivery, produced by the Infrastructure and Projects Authority as best practice for UK Government projects. The project structure was founded upon a process of linear stages, with each stage subject to a gateway sign-off process, adapted to suit the type and scope of the project. The five stages are: 1. Business justification 2. Appraise and select teams 3. Define 4. Deliver 5. Operate, review and adjust The gateway includes a review against project objectives at the end of each stage, as well as a review of project risks. The project board then decides whether to approve its move into the next stage.
Workstreams made up the second major element of the project. In this project, there were 20 workstreams, including Accommodation and Learning Experience. Workstream leads were identified and all workstreams reported weekly into the project. A traffic light red, amber and green (RAG) rating system was implemented so that each workstream could report on key issues and RAG ratings. RAG ratings and required decisions were tabled to the project board’s weekly meetings to ensure timely decision making and continued momentum to meet programme scheduling objectives. The project has been a success and highlights the collaborative and integrated approach now embedded at Winchester. It has overseen a considerable amount of preparatory work across the institution, has run on time and within budget.
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University of Winchester
Integrated Annual Report 2019-20
Our strategic vision In November 2019, Winchester launched Strategic Vision 2030, setting out how we plan to continue to grow and flourish as an institution and make a difference. Strategic Vision 2030 – aligned with the United Nations’ Agenda 2030 and Sustainable Development Goals – was the culmination of 18-months of work with staff, students, Governors and other stakeholders. At its core sits a bold vision and clear mission, from which flows our strategic goals and framework. All of it is shaped, informed and inspired by our values and commitment to educational excellence, sustainability and social justice.
OUR VALUES
University of Winchester
STRATEGIC VISION FRAMEWORK
Integrated Annual Report 2019-20
OUR MISSION
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Strategic Vision 2030 sets out how we will deliver transformative education, research and innovation; support people to flourish; and champion organisational excellence. It is our roadmap outlining how we will strive to have an impact, be the difference and make the world better. The following diagram outlines our strategic vision framework, linking our mission with our values of compassion, individuals matter and spirituality.
BEACON OF EXCELLENCE IN EDUCATION, SUSTAINABILITY AND SOCIAL JUSTICE
Flourishing people and communities
Transformative education, research and innovation
Organisational Excellence
COMPASSION | INDIVIDUALS MATTER | SPIRITUALITY
3.
4.
GROWTH
FINANCIAL Strong financial management
STUDENT AND GRADUATE SUCCESS
REPUTATION
Controlled, sustainable growth in undergraduate student numbers and quality
To achieve this, the University will deliver a programme of work outlined in our five-year rolling Business Plan, to improve performance across areas of particular importance to the delivery of our strategic goals, including:
• Improving teaching and learning outcomes, to retain TEF Silver and aim for TEF Gold, in particular focusing on student satisfaction and graduate employability measures
• Develop and strengthen our course portfolio, brand and national and global reach to support growth in student numbers
• Deliver a step change in support for student wellbeing and graduate success
Major improvements to student satisfaction and attainment, graduate employability and graduate salaries
• Build greater links with employers and the wider community
• Diversify income streams • Deliver ongoing improvements to the estate and IT infrastructure to deliver an exceptional experience for students and staff The actions Winchester is taking to address these strategic goals is evidenced throughout this integrated report, and specifically included within Faculties and Research (pages 18 and 19), Developments in graduate employability and higher study (page 22), Thriving individuals (page 30), Student engagement and quality of learning and teaching (page 33), Faculty highlights (page 37) and within our Financial review (page 50).
A stronger national and international reputation
Further details of our Strategic Vision 2030 can be found on our website at: www.winchester.ac.uk/about-us/ our-future/our-strategy/
Integrated Annual Report 2019-20
2.
University of Winchester
1.
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In delivering our strategic vision we have identified the following four strategic goals:
Faculties We have a wide range of undergraduate and postgraduate courses delivered currently 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, Performing Arts, and the School of Media and Film. Rigorous, creative programmes provide handson, fulfilling student experiences and an outstanding foundation for professional life after graduation.
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University of Winchester
Integrated Annual Report 2019-20
FACULTY OF BUSINESS, LAW AND DIGITAL TECHNOLOGIES The 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. Our 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 The faculty is home to two departments – Education Studies and Liberal Arts and the Institute of Education (formerly the Department of Teacher Development). Our 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 The 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 was launched on 1 August 2019. It is home to students studying courses including 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 a 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. Flowing 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.
Research
University of Winchester
For a third consecutive year, we were awarded Higher Education Innovation Funding (HEIF). The award was used to develop high-quality, valuable knowledge exchange activities that benefit our communities and stakeholders. These far-ranging activities included support for student entrepreneurship, the health agenda, digital focused projects and SME partnerships. Funds were also strategically invested in our Knowledge Exchange (KE) infrastructure, the upskilling of staff and raising awareness, to strengthen our chances of retaining this vital HEIF, which in turn will impact our placing in the upcoming national Knowledge Exchange Framework (KEF).
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Preparations for entry into the Research Excellence Framework (REF) continued to progress. We confirmed entry of 13 Units of Assessment into REF 2021: an increase of five on entries into REF 2014. By 2021, we are planning to double 2014’s 72.6 FTE submissions, reflecting the successful recruitment, selection, development and retention of high-quality researchers. The internal funding policy was revised to ensure greater longer-term strategic outcomes. For example, priority was given to applications which benefitted impact, the research environment and the development of external grants, rather than those focussing on the production of outputs.
Integrated Annual Report 2019-20
Throughout the year, the Research and Knowledge Exchange Centre (RKE) led on developing a new RKE Strategy 2020-2030, in alignment with Winchester’s Strategic Vision 2030.
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. An example of this is the Student Academic Council. It meets several times a year and is made up of student representatives who advices SMT on matters relating to the student experience.
TS EN D U ST
We also promote research and dissemination on specific topics, for example 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.
FUND IN AND REG G B UL O AT
PEOPLE
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 and colleges in the UK and abroad. We also work in partnership with
As with our partners, we have a broad and diverse range of community relationships with neighbours, including Hampshire Hospitals NHS Foundation Trust (HHFT), the Police Force, Councillors and many others, both in the UK and further afield. We contribute over £266m a year to the regional business community, according to an external commissioned report in 2018. An externally commissioned Economic Value report of the University shows that more than £203m a year added income is created by its alumni – the impact of the skills acquired by students remaining in the region £20m a year by student expenditure and £42m a year by university expenditure. We also contribute to nearly 10,000 jobs a year into the regional economy.
Our Community Impact Strategy aligns with ‘serving the common good’, as stated in our mission. As well as the local communities covered above, we stand by our responsibility to the wider UK economy and society in widening participation of students from backgrounds who would not normally enter Higher Education. 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 vary. For example, our Arts faculty are now hosting weekly classes at the youth theatre group at the Theatre Royal in Winchester.
S U P P LIE R S
Our External Board plays an important non-executive role in Winchester’s success. Our Governors, who reflect our core values, are dedicated to the development of staff, student learning experience, Winchesters growth and institutional value for money.
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 respectively. We seek suppliers that align with our values and work with them to embed our environmental sustainability initiatives.
PA R
TN
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
As a university, we work constantly and closely 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 under-represented groups.
ES DI ORS
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Integrated Annual Report 2019-20
Stakeholders
ERS
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University of Winchester
Integrated Annual Report 2019-20
Developments in graduate employability and higher study Winchester recently saw positive headlines in The Times highlighting their position as one of the
Top 10
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University of Winchester
Integrated Annual Report 2019-20
universities in the UK for overall graduate outcomes.* *Source: HESA Graduate Outcome Survey
In January 2020, we launched a new department entitled Student Engagement and Employability, which unified four staffing subunits dedicated to employability and student enrichment (Careers, Winchester Scholars, Winchester Hub and Student Enterprise). A new Head was appointed to coordinate activities and structure the department to ensure their processes and practice are contributing to Winchester’s strategic goals. One of these goals was to establish specific work placement modules within different degree programmes. Work Placement Coordinators were appointed to encourage and assist students to take at least one taught employability module during their degree (either a Work Placement, Volunteering Placement or Get into Teaching module).
The team are developing data resources to inform their decision making and working to proactively minimise local and national skills gaps. For example, Winchester is now employing data to highlight the value of new graduate employment courses, assess which areas of employability and student engagement require further development, and as a tool to compare employability and student engagement across the sector to enhance our graduate employability. This department will continue to prioritise student outcomes and develop students to be partners in their future success.
Value creation model
Our value creation model (VCM) is a 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.
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.
Integrated Annual Report 2019-20
HUMAN SOCIAL AND RELATIONSHIPS
INTELLECTUAL
NATURAL AND MANUFACTURED
FINANCIAL
INPUTS
OUTSTANDING CAMPUS
STUDENT-LED APPROACH
E CREATIO VALU N
UE CREATION VAL
VALUES IN ACTION
WE ARE A COMMUNITY COMMITTED TO MAKING A DIFFERENCE TO ALL LIFE AND THE PLANET. TEACHING AND RESEARCH EXCELLENCE
ETHICAL RESOURCE MANAGEMENT
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BUSINESS EXCELLENCE
University of Winchester
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 United Nations Sustainable Development Goals within our strategic objectives and aligned them to our key outputs of our 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.
OUTPUTS
BUSINESS EXCELLENCE AND GROWTH
4
8
9 15 17
ENVIRONMENTAL SUSTAINIBILITY
GRADUATE SUCCESS AND RESEARCH IMPACT
12 13 4
5
SOCIAL JUSTICE FLOURISHING INDIVIDUALS
2 1
13 15 16 17
1
5
9
13 16
17
3
10
3
4
9
11
13
16
10
Number of corresponding UN Sustainable Development Goals
6 12 13
7
9
11
14 15
United Nations Sustainable Development Goals The Sustainable Development Goals are the blueprint for achieving a better and more sustainable future for all life and the planet. They address the global challenges we face, including those related to poverty, inequality, climate change, environmental degradation, peace, and justice. The 17 Goals are all interconnected and have been defined by the United Nations as follows:
No Poverty: 55 percent of the world’s population have no access to social protection
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University of Winchester
Integrated Annual Report 2019-20
Zero Hunger: A profound change of the global food and agriculture system is needed to nourish today’s 800 million hungry and the additional 2 billion increase in global population expected by 2050 Winchester became a founding member of the Winchester Food Partnership, whose vision is to create a healthy and sustainable food culture for people living and working in the Winchester district regardless of income (as part of the Sustainable Food Cities Network).
Good Health and Wellbeing: Spending $1 billion in immunization coverage can save the lives of one million children per year Winchester’s West Downs development is one of the first university projects in the UK to be registered to receive WELL Certification. A new study led by Winchester academics investigates the impact of the UK lockdown strategy. This research is concentrating on physical activity levels and wellbeing during the pandemic.
Quality Education: 262 million children and adolescents remain out of school. 617 million lack minimum proficiency in reading and mathematics Winchester joined other UK universities in pledging to increase access to HE for refugees & asylum seekers on World Access to Higher Education Day. UNICEF Rights Respecting Education underpins all teacher education at Winchester and we offer a wide range of modules focusing on social mobility, including one on forced migration.
Gender Equality: In 2018, women only held 27 percent of managerial positions worldwide Winchester has a Department for Equality and Diversity and Staff Development. We are in the progress of developing a new Gender Pay Gap Strategy.
Clean Water and Sanitation: Half of the world’s population is already experiencing severe water scarcity at least one month a year Winchester has reduced water consumption by 41% per m2 of estate since 2006/07, with water saving initiatives including leak detection, automated meter reading and monitoring, waterless urinals, dual flush toilets, low volume cisterns and automatic taps.
Affordable and Clean Energy: Three billion people lack access to clean cooking fuels, resulting in nearly four million premature deaths each year Students and staff take part in campus-wide energy saving initiatives throughout the year through the our JUMP staff engagement programme, the NUS Student Switch Off programme, and the Campus Blackout. 100% of the electricity we buy is sourced from renewables and we currently generate over 50,000 kWh from solar panels installed on four roof spaces across campus.
I ndustry, Innovation, and Infrastructure: 3.8 billion people do not have access to the internet representing 80 percent of the population in the least developed countries Winchester’s Business School is one of the first in the UK to sign up to the UN Global Compact ‘PRME’ initiative, which aims to develop a new generation of business leaders capable of managing the complex economic, environmental and social challenges faced by business in the 21st century.
Reduced Inequalities: 16,000 children die each day from preventable diseases such as measles and tuberculosis Winchester stands in solidarity with the Black Lives Matter movement. We are designing a new curriculum approval process centred on the principles of Universal Design for Learning, which is about ensuring inclusive learning for all. These principles argue that if we don’t cater for the culture, history and presence of under-represented groups, then we are denying people an education, increasing the corresponding social and economic disadvantages.
Sustainable Cities and Communities: 60 percent of the world’s population will live in cities by 2030 Winchester received a Silver Award from Green Tourism for its commitment to sustainability throughout its business operations. ARCA Geoarchaeology (specialist Winchester team of archaeologists) are set to undertake borehole investigations across the Central Winchester Regeneration site, to inform future development proposals for the city centre project. Winchester was awarded the NUS Responsible Futures accreditation in 2019 for its commitment to embedding sustainability and social responsibility in its teaching and other activities.
University of Winchester
Winchester’s Estates and Facilities department were awarded the Cabinet Office Customer Service Excellence accreditation for the high quality of its customer services.
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Decent Work and Economic Growth: In 2018, 20 percent of the world’s youth were not engaged in either education, employment or training
Integrated Annual Report 2019-20
Winchester has also invested over £1.5m in carbon emissions reduction projects since 2010. These include Building Management Systems installation, automated metering reading equipment, LED lighting and controls, boiler replacements, motors replacements and upgrades, and insulation of buildings and pipework. Winchester is committed to building all new buildings to the BREEAM (Building Research Establishment Environmental Assessment Method) Excellent standard. Past BREEAM buildings built on campus feature a number of sustainable design innovations such as natural ventilation, energy-efficient lighting and controls, air source heat pumps, solar photovoltaic panels, sub-metering and wildflower roofs.
Responsible Consumption and Production: If the global population reaches 9.6 billion by 2050, the equivalent of almost three planets will be required to sustain current lifestyles Winchester joins forces with Winchester Churches Nightshelter to ensure first year students’ unwanted household items, clothes and canned food are given a second life. We tackled the use of single-use disposable cups on campus by introducing a bold new pricing structure (25p surcharge on all hot and cold drinks) on takeaway drinks, combined with a giveaway of reusable Gum-tec mugs to students and staff. This reduced the number of disposable cups by 60,000 while sales of drinks in reusable cups leapt to an average of 30%. It was so successful that it attracted global media attention, including being featured in the prestigious BBC World Service programme World Hacks.
Climate Action: To limit global warming to 1.5°C global carbon emissions will need to fall by a staggering 45 percent by 2030 from 2010 levels Winchester teacher training students are set to be among the world’s first UN accredited Climate Change teachers, with the opportunity to undertake the Climate Change Teacher course as part of their Education degree. Winchester declares a climate emergency as 100 staff and students join the Global Climate strike in the city centre.
University of Winchester
Integrated Annual Report 2019-20
Our Vice-Chancellor was appointed as the Winchester representative for GuildHE & Climate Commission for UK HE & Further Education Leaders. We have one of the lowest carbon campuses in the country, with a recycling rate of 64% in 2016/17. We plan to eliminate all unnecessary single-use plastics by December 2020, and become carbon neutral by 2025.
Life Below Water: Over three billion people depend on marine and coastal biodiversity for their livelihood
Life on Land: One million plant and animal species are at risk of extinction Winchester plants trees in honour of graduating students as part of our pledge for a sustainable future, and joined the Hedgehog Friendly Campus campaign.
eace, Justice and Strong Institutions: Today, 20 million people are considered refugees, over 41 million P people have been internally displaced, and at least four million people are stateless Winchester launched an Institute of Contemplative Education and Practice.
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Partnerships: Strong international cooperation is needed now more than ever to ensure that countries have the means to achieve the Sustainable Development Goals Winchester became a member of the UN Sustainable Development Solutions Network, underlining its commitment to tackling the significant global challenges the world now faces, including climate change. Winchester partners in an international research study called GreenCOVID initiative, which aims to assess the impact on people who are unable to enjoy being outdoors or have access to green spaces and countryside because of lockdown restrictions during the current pandemic.
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University of Winchester
Integrated Annual Report 2019-20
Key performance indicators Over the next 10 years, our Strategic Plan will drive our journey towards becoming a university that is internationally recognised for the way in which we, and our students and graduates, engage with and respond to the biggest and most urgent problems facing the planet and all life. We measure our progress on this journey through our key performance indicators (KPIs), which are linked to our capital inputs and outputs, with the following outcomes for 2019/20:
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University of Winchester
Integrated Annual Report 2019-20
NSS OVERALL SATISFACTION %
ALL IN EMPLOYMENT OR FURTHER STUDY, OF LEAVERS OBTAINING FULLTIME UG QUALIFICATIONS (TEF BENCHMARK)
81%
92%
We continue to strive to improve Winchester’s NSS scores, and have implemented a new NSS Strategy, with accompanying actions. Within our overall NSS satisfaction score, over 84% of students are satisfied with their teaching, and 74% are satisfied with their assessment and feedback.
The number of students finding graduate employment has increased to 66%, from 63.6% the previous year. We have introduced a new Graduate Employability and Higher Study Strategy, which sets out a step-change in Winchester’s approach to graduate employability through seven key areas to be addressed to improve these metrics. Graduate Employability is a key metric used in most national League Tables. The anticipated improvements in these results for Winchester are therefore likely to have a positive impact on future League Table rankings.
FULL-TIME UNDERGRADS (UG) AT CENSUS (MARKET SHARE)
0.53% Our full-time market share of UG students has remained consistent, and our market share of UG applications has increased to 0.37%
17% The number of Winchester academics producing internationally excellent and world leading research continues to grow, and forms an integral part of our new Research and Knowledge Exchange Strategy.
SCOPE 1, 2 AND 3 CO2 EMISSIONS PER M2 (REDUCTION ON 2006/07)
94.3% 57.1% We continue to exceed the sector benchmark for continuation of full-time UG students. The percentage of UG students from low-participation neighbourhoods continues to grow, from 13.7% to 14.4%, which also exceeds the sector benchmark.
We have shown a significant reduction last year, with emissions dropping by 12%, putting us on target of achieving a reduction target of 65% by 2025.
Integrated Annual Report 2019-20
CONTINUATION OF FULL-TIME UG ENTRANTS %
University of Winchester
INCREASE IN PERCENTAGE OF ACADEMIC STAFF PRODUCING INTERNATIONALLY EXCELLENT AND WORLDLEADING RESEARCH
(management consultant, educator, and author)
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“
If you can’t measure it, you can’t improve it.” Peter Drucker
Thriving individuals
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University of Winchester
Integrated Annual Report 2019-20
INDIVIDUALS MATTER Building on the value ‘individuals matter’, Winchester has sought to create a working culture which 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. The Coronavirus epidemic had a considerable impact on our staff from March 2020. We took all practicable steps to protect the health and safety of staff, including making a wealth of resources and materials accessible online to help mitigate against potential detrimental mental health consequences.
HIRING AND RETAINING THE BEST PEOPLE In 2019 there were 13,332 applicants for 178 published adverts. Of those applicants, 54% were female and 19% were BAME. We remain focused on building a highly-inclusive workforce across the full demographic spectrum.
compared to 59.6%). This remains higher than the HE sector average of 54% female staff.
RETENTION Overall turnover has increased to 13.1% from 10.6% in 2018-19. This year there has also been an increase in the number, but a reduction in the proportion, of leavers with less than one year's service, from eight staff (8.5% of all leavers) 2018 to ten staff (7.8% of all leavers).
WELLBEING AND PROGRESSION 2019 saw a total of 17 re-grading applications, a large decrease of 59.5% on the 42 from the previous year. Of those 17 applications this year, 88.2% (15) were successful. Staff sickness absence per employee slightly decreased – from 5.1 days to 4.9 days – in the last year, a number significantly lower than the HE sector
average of 6.2 days (UCEA Sickness Absence Report 2018). However, of those absence days, mental health and stress/anxiety related made up 26.1% of total sickness absence days lost, an increase of four percentage points.
PENSIONS The proportion of staff who enrolled in a pension scheme increased from 86.6% in 2018 to 89.9% this year. The TPS (Teachers' Pension Scheme) has the highest membership with 39%, closely followed by the LGPS (Local Government Superannuation Scheme) at 38.9%.
HISTORICAL BREAKDOWN OF STAFF BY GENDER AT THE UNIVERSITY
EQUALITY AND DIVERSITY As proud Disability Confident employers, we have an action plan to join the Mindful Employer initiative by 2022. In the last 12 months, we have reduced the gap (between Winchester and the sector average) of the percentage of staff who are British, at 87.9%, compared to 79.5% for the sector (source: UCEA Higher Education Workforce Report 2019). Whilst we are pleased we had an increase in BAME applications, more work is needed to encourage a higher rate of BAME candidates. Currently, only 4.6% of staff are BAME, and the Director of Equalities and Staff Development has enacted an action plan to achieve a target of 6%. The historical breakdown of gender statistics (see figure 1) shows that the proportion of male to female staff has continued at around 60% female over the last six years and remains largely static compared to last year (58.7%
Female
Male
Non-binary
Integrated Annual Report 2019-20 University of Winchester 31
“
Our people are key to ensuring staff satisfaction. For this reason, we strive to understand staff needs; we are aware we must evolve to keep attracting, retaining and growing talent.�.
We have used the International Integrated Reporting Council's (IIRC) generic ‘capitals’ (the inputs to our value creation model on page 23) to identify the resources and inputs we have with which to create value and ultimately make a difference. We are committed to using integrated thinking in all decision making.
FINANCIAL
FINANCIAL – 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.
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University of Winchester
Integrated Annual Report 2019-20
Identifying capital inputs and outputs
INTELLECTUAL
The dignity and wellbeing of individuals are important as are their opinions and views. We encourage a positive working environment in which both students and staff can reach their full potential. HUMAN
SOCIAL AND RELATIONSHIPS
SOCIAL AND RELATIONSHIP – SOCIAL JUSTICE
We aim to achieve the highest levels of student satisfaction across all courses. We are proud of the positive impact Winchester students have in the community through the thousands of volunteering hours they put in and the businesses they support as consumers and employees. 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 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.
INTELLECTUAL – GRADUATE SUCCESS AND RESEARCH IMPACT
Everything we do is about building, sharing and creating knowledge through excellent teaching and research. Students are taught by staff active in research and the professions, who work with them to create a personal and transformative learning experience. Throughout this report, intellectual capital will include Winchester’s academic portfolio, academic quality awards, innovative
HUMAN – THRIVING INDIVIDUALS
learning and teaching opportunities, research and knowledge exchange.
@ally.innes
NATURAL AND MANUFACTURED
NATURAL AND MANUFACTURED – 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 2030. This commitment extends into the curriculum, with climate change education being rolled out across all courses. Aligned to this capital are measures covering carbon emissions, water usage, and amount of waste produced by the institution.
Student engagement and quality of learning and teaching
A Postgraduate Certificate is usually mandatory for new academic staff and can lead to Fellowship of the Higher Education Academy (HEA), However, staff can also continue onto a Postgraduate Diploma and MA in Learning and Teaching in Higher Education at Winchester, and we also run a highly successful masters course in Student Engagement in Higher Education.
WEST DOWNS
We provide staff with experiential routes into obtaining Associate, Fellow or Senior Fellows of the HEA, which is mandatory for all fulltime teaching staff, as it promotes and ensures a shared, reflective understanding and language about teaching and learning within the institution. 66 staff obtained an HEA fellowship during 2019/20. We also support staff who wish to apply for a Principal Fellowship. In addition, we
Due to the COVID-19 pandemic, we transformed our traditional, one day face-to-face learning and teaching conference into a week-long celebration of learning and teaching at Winchester. We employed a series of lunchtime webinars on the topic of embedding employability in the curriculum. This new bite sized approach was well received by participants and will be adopted for future learning and teaching events.
• Delivered on budget • Environmentally sustainable construction and operation • Ethically financed • Significant additional specialist and general teaching space and a wide range of other important extra facilities. June 2020 witnessed the formal hand over of the West Downs Quarter building from construction partners, Osborne, and award-winning Winchester-based architects, Design Engine. The building, delivered on budget, showcases state-of-the-art facilities and an outstanding learning
Integrated Annual Report 2019-20
In response to moving some teaching provision online in March 2020 due to COVID-19, we provided guidance for staff and have since developed a comprehensive course in online pedagogy to ensure staff are well trained to deliver teaching in either fully online or blended.
University of Winchester
In addition, innovation and excellence are recognised in diverse ways. Each year the Student Union hosts the Student & Staff Recognition Awards, and students can nominate lecturers in a range of categories including Lecturer of the Year, Student Life Champion and Student Experience Champion.
have recently redeveloped our Peer Observation of Teaching (POT) Policy, which ensures that we continually strive to improve teaching practice and the student experience.
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We encourage innovation in learning and teaching through our Learning and Teaching Innovation Fund, which provides funding for a number of projects to develop and share innovative practice. Examples of projects completed in 2019-20 are the Gamification of Statistics and Virtual Reality Teaching Workshops.
We have extensive experience and expertise in student engagement. Students can contribute formally to the academic life and operations at Winchester, as a Student Academic Representative or member of the Student Academic Council. Students can also contribute to the digital provision of teaching through the Technology Enhanced Learning (TEL) Champion scheme. In addition, students write for, and co-edit, the student journal Alfred, and have helped enhance the life of Winchester’s community through leading on projects funded by the Student Fellows scheme (a jointly run venture with the Student Union), or by assisting an academic with an aspect of their own research through Winchester Research Apprenticeship Programme (WRAP) partnerships. In 2019/20, we developed a postgraduate diploma module for staff to explore student-led/student opportunities as collaborators for teaching models and practices.
environment for the next generation of students. It provides specialist teaching space for growing subjects in digital and computer related programmes as well as generalist teaching space and other facilities for all students to enjoy. Other highlights include:
• art gallery • 250-seat auditorium • café and food hall • serene contemplation space • beautiful courtyard garden • additional general teaching spaces • modern library with copious social The building increases Winchester’s available teaching space by 20%. This has been significant in enabling the correct implementation of appropriate social distancing measures as part of Winchester’s response to the COVID-19 pandemic. The building is one of the first university projects in the UK to be registered for WELL Certification, an accreditation scheme recognising buildings that support and advance human health and wellbeing. Winchester is also the first UK university to secure Green finance for campus development, with a £30m loan from Triodos Bank, Europe's leading sustainable bank. With numerous sustainable features including rainwater recycling, solar photo voltaic panels, a combined heat and power system and smart building management, the West Downs Centre is also well placed to achieve the Excellent rating of the Building Research Establishment Environmental Assessment Method (BREEAM).
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University of Winchester
Integrated Annual Report 2019-20
learning space and wonderful light.
@peterlangdownphotography
Energy and environment
METHODOLOGY Our Environmental Performance data has a baseline year of 2006/7 academic year, the year of the start of our Carbon Management Journey. Energy and fuel data are collected from our billing information and reported for the relevant periods and verified using metering data from our Energy Management System (EMS). The University reports both marketbased and location-based emission factors in line with greenhouse gas reporting requirements. All carbon calculations have been made using the government carbon conversion data sets for the relevant year. We use both location-based carbon factors (grid factors) and market-based factors (to recognise the purchasing of renewable energy) in our carbon management programmes
We have 13 fully electric vehicles in our growing fleet. Replacement of fossil fuelled vehicles has had a significant impact in the amount of diesel and petrol being bought to fuel campus vehicles, with volumes reducing by 45% and 74% respectively compared to the previous year. Electric vehicles make up 38% of the entire University fleet at the end of 2019/20.
University of Winchester
We are progressive and pioneering, ahead of our time. Our staff and students are engaged in the importance of sustainability and feel confident to engage with finding solutions to our world’s most significant challenges. Our strategic target is to be carbon neutral by 2025. The data below is two years comparable datasets and forms part of our annual Carbon Management Plan reporting.
We have been purchasing 100% renewable electricity since 2008/9. In 2019/20 we also started to procure renewable gas; 47% of our gas consumption for 2019/20 was purchased from renewable sources (generated from biomethane). We have four renewable energy installations across our campuses, with our total energy generation increased by 149% compared to 2011/12, which was the first year the University generated electricity. On site generation accounted for 1.35% of electricity consumed in 2019/20 compared to 1.22% in 2018/19. Several building management system optimisations have occurred this year, which has resulted in improved control of heating systems thereby reducing gas consumption.
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We see sustainability as fundamental to our culture and practice.
Integrated Annual Report 2019-20
2019-20 REVIEW
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 )
2
University of Winchester
Integrated Annual Report 2019-20
Total Scope 1 & 2 Emissions per m - Location Based (Kg CO ) 2
2
2
UK GREENHOUSE GAS EMISSIONS AND ENERGY USE DATA FOR THE PERIOD 1 AUGUST 2019 TO 31 JULY 2020 2019/20 Energy consumption used to calculate emissions (kWh)
10,015,268
2018/19 10,703,537
Energy Intensity Ratio (kWh/m2): Gas consumption
80.56
84.42
Electricity consumption
61.52
68.25
Gas consumption
1,038.42
1,088.15
Owned transport
13.73
25.45
1,052.15
1,113.60
Purchased electricity
1,018.28
1,223.28
Total Scope 1 and 2 emissions in metric tonnes CO2e
2,070.44
2,362.06
29.16
33.33
Scope 1 emissions in metric tonnes CO2e
Total Scope 1
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2
Total Scope 1 & 2 Emissions per m - Market Based (Kg CO )
Scope 2 emissions in metric tonnes CO2e
Carbon Intensity Ratio (KgCO2e/m2)
Faculty highlights
The BA (Hons) Music and Sound Production programme achieved Joint Audio Media Education Support (JAMES) accreditation in June 2020. JAMES is a group of industry organisations that promote excellence in education and employ industry professionals to assess the relevance and quality of programmes. This prestigious award reflects the strengths the programme has shown in recent years as it has grown in reputation and size, attracted high profile guest lecturers and offered superb new recording studios.
GRADUATE SUCCESS AND RESEARCH IMPACT From the Faculty of Arts, MA Creative and Critical Writing graduate Clare Whitfield secured a publishing deal with Head of Zeus for her debut crime novel, People of Abandoned Character. Set for release in October 2020, it focuses on a female protagonist who suspects her husband is Jack the Ripper. In
A number of sport psychology studies developed by Matthew Smith and others within the Sport, Exercise and Health department have featured on The Conversation – an independent website that delivers news to the public from academic researchers.
THRIVING INDIVIDUALS In June 2020, a new Dean, Professor Martin Broad, was appointed to lead the Faculty of Business, Law and Digital Technologies, and direct the Business school. Formerly head of Southampton University's School of Management, Professor Broad has nearly 30 years' higher education experience. His role will be instrumental in supporting the growth of the faculty's course offerings and research base. From the Faculty of Humanities and Social Sciences, internationally
Professor Neil Messer, from the Department of Theology, Religion and Philosophy, founded (and became co-convener) of a special interest group in Neuroethics and Theology, within the largest academic Christian ethics society in the world. In January 2020, Professor Messer convened the inaugural meeting of his interest group within the Society of Christian Ethics' annual meeting. He was also appointed to a new working group for the ethics of sexuality and gender by the Community of Protestant Churches in Europe.
SOCIAL JUSTICE Within the Faculty of Education, the University of Winchester Academy Trust will be opening two primary schools at the heart of new housing developments in Winchester and Eastleigh in September 2020. Each school will open with a Reception class and then expand within their communities, helping form stronger community bonds. Both schools recognise Winchester’s commitment to promoting sustainability and social justice. For example, one of the new schools – Barton Farm Academy – has been designed as an ecoschool, using the latest sustainable technologies and enabling outdoor learning to take place. Senior Lecturer in Human Geography, Dr. Jen Dickinson, led a Global Challenges Research Fund project that operated in London and Rwanda. It explored the role of the Rwandan diaspora in building up the skills of Rwandan youth. This is a significant contribution to Winchester’s commitment to the UN's SDGs.
Integrated Annual Report 2019-20
Winchester built a new state-ofthe-art forensic laboratory in 2019, which was opened by award-winning actor Sir David Suchet. The new laboratory equipment included a vital electrophoresis DNA kit and petrographic microscope, which will benefit students on various Humanities and Social Sciences courses such as BA Archaeology and BA Forensic Studies.
Within the Faculty of Humanities and Social Sciences, members of the Archaeology department successfully excavated the crash site of a Second World War Hurricane fighter plane in Hampshire in August 2019. In addition, ARCA Geoarchaeology, a specialist team of Winchester archaeologists, were appointed by Winchester City Council to undertake borehole investigations across the Central Winchester Regeneration site in August 2020. The data collected and analysed will inform future project proposals for development of the city centre.
recognised expert in Anglo-Saxon Winchester and King Alfred, Professor Ryan Lavelle, helped weave historical accuracy into hit Netflix drama The Last Kingdom. Professor Lavelle has been a historical advisor on all four seasons of the Viking-based drama and also reviews each episode for the BBC History Magazine website History Extra.
University of Winchester
Winchester has grown in the last year, with the creation of a new Faculty of Health and Wellbeing. This brings together three departments – Sport, Exercise and Health, Health and Care Professions, and Interprofessional Studies. The Faculty has developed a new partnership between Winchester and Hampshire Hospitals NHS Foundation Trust, with a drive to improve student employability by enabling access to cutting-edge material, equipment and on-the-job training.
addition, for the second year running, two BA (Hons) Journalism students were shortlisted by the Broadcast Journalism Training Council (BJTC) for the Student Journalism Awards 2019. Student nominations were received within the Best Social Short and Best TV Documentary categories. BJTC is the UK's largest industry-backed higher education training body for multiplatform, broadcast, and mobile journalism and introduced the awards to recognise the country's newly qualified journalists.
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BUSINESS EXCELLENCE AND GROWTH
From the Business, Law and Digital Technologies Faculty, Dr. Martina Hutton led research into the economic strains placed on those with criminal convictions after their release from prison. The respective project article was highlighted on the website of OffPloy – an organisation that aims to reduce criminal reoffending through employment. As a result of this project, Dr. Hutton joined the Food Poverty Working Group for the Winchester Food Partnership.
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University of Winchester
Integrated Annual Report 2019-20
ENVIRONMENTAL SUSTAINABILITY The Faculty of Arts 2019 stage production Climate 4 Change was nominated for a prestigious Green Gown Award in autumn 2019. Staged at Theatre Royal Winchester, this collaboration between Performing Arts and Creative Writing students featured four original short plays about climate change. This was followed in March 2020 by Climate 4 Change 2020, a new set of plays also staged at Theatre Royal Winchester. One of these plays was later recorded as an audio drama in Winchester’s music studios, and broadcast on BBC Radio Solent in summer 2020.
Faculty of Education students will be among the world's first UN climate change teachers. In Spring 2020, Winchester became the first in the world to partner with the eduCCate Global Climate Change Teacher Academy and offer the UN accredited Climate Change Teacher Course to teacher training students. Learning about the climate emergency through a range of topics including climate change science and human health will enable students to develop knowledge and confidence to better teach climate change lessons to children. In addition, Winchester plans to host a series of climate change public lectures for students, teachers and the general public. The Business School continues to be committed to the UN's PRME, a movement that helps establish a process of continuous improvement within management education, in order to develop a new generation of business leaders capable of managing the complex economic, environmental and social challenges faced by businesses in the 21st century. Winchester is one of a small handful of universities in the world to be a UN PRME Champion
University. Professor Carol Parkes, in collaboration with the Schumacher Institute, organised PRME workshops on systems thinking and was also invited to become an Advisory Board member within the Prince's Responsible Management Business network. As Winchester's Hedgehog Champion, Carol Cook, an MSc Animal Welfare Science, Ethics and Law student, led work which secured for Winchester Bronze HedgehogFriendly Campus status from the British Hedgehog Preservation Society. Staff and students were actively involved in completing the various requisite initiatives for this. For example, helping Winchester acquire My Green Labs status for the Archaeology and Forensics Laboratories, an international standard recognising excellence in sustainable lab practices. Winchester has also been awarded the Echo Church (Rocha UK) Gold Award, for its Chapel.
Social Justice FLOURISHING COMMUNITIES One of the three pillars of Winchester’s Strategic Vision 2030 is Flourishing People and Communities. This pillar captures the institution’s commitment to support students and staff to flourish and inspire them to use their energy and skills to contribute to flourishing local and global communities.
“
We are the University for Sustainability and Social Justice. We are working for a world in which all lives and communities thrive sustainably. ”
Working with our local community, we developed a shared vision with seven features of what a flourishing community looks like. After further community consultation, we also developed a Flourishing Communities Framework, in which we articulate three principles (start together, start by listening and start with values) and three actions (model change, support change and make change). Winchester will support this shared vision and work towards its achievement.
Winchester continues to hold widening access and participation at the heart of its mission. However, the impact of COVID-19 altered the landscape of our access and outreach work. Outreach is traditionally a social activity, with face-to-face interactions with practitioners and students oncampus or in the community. This year, we had to adapt and develop pre-recorded online sessions and
competitions for schools to utilise within their own virtual learning environments. In addition, we provided a home-based reading programme that gifts learners with books and resources to encourage them to read with parents and carers to support guided reading practice. Prospective Winchester students were provided with university pen pals, or student buddies, to keep in-
touch with over the summer months. Winchester colleagues have also collaborated with other UK institutions as part of the National Educational Opportunities Network's (NEON) Access Academy, enhancing online outreach provision and contributing to the new national Uni4Me website, which launched in July 2020.
University of Winchester
ACCESS AND OUTREACH
Integrated Annual Report 2019-20
Sarah-Louise Collins, Director of widening participation
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KEY MILESTONES 31 MARCH 2020
14 MAY 2020
30 JUNE 2020
Flourishing Communities Framework launched.
Dr. Michael Hall launched the Service Children’s Progression (SCiP) Alliance’s Listening to Learn report.
Winchester and the Service Children’s Progression Alliance acknowledged in the Living in our Shoes. Understanding the needs of UK Armed Forces families independent report for government.
Risk register Material risks
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University of Winchester
Integrated Annual Report 2019-20
UNDERSTANDING WINCHESTER’S RISKS We define risk as the potential effects of uncertainty on achieving objectives, which can take the form of averse consequences or unexpected opportunities. As with most institutions, risks are inherent in all activities, Winchester undertakes new risks in pursuit of it’s 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, while protecting Winchester’s reputation and sustainability. To create long-term 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.
WINCHESTER’S PROCESS 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 eliminated completely, 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 8 July 2020.
Catastrophic event
=1 Financial sustainability
=1 Student recruitment
4 Student retention
5 IT, information & data security
We have responded effectively to the current pandemic by identifying and suitably equipping those staff deemed essential whilst enabling remaining staff to work from home, moving teaching online and locking down unused buildings. In line with our Business Continuity and Disaster Recovery Plan, we have implemented procedures to protect our buildings from damage by IT, maintenance and contractors.
The risk that Winchester’s income decreases, or costs increase, and not being able to service Winchester’s debts sufficiently, putting the financial sustainability of Winchester at risk.
We have undertaken financial scenario planning in response to the current pandemic and identified several areas in which radical cost reductions must be made. We have utilised all available government support, and associated aids, such as the furlough and loan schemes, and we have had to undertake a voluntary severance scheme. We endeavour to maintain a culture of effective cost control, strategically investing in our new Health & Wellbeing courses (which have attracted additional OfS funding) and increasing the amount of other incoming-generating activities. We are developing a procurement function to ensure robust purchasing control and to maximise value for money. We are undertaking long-range (5 years) forecasting and scenario planning.
The risk that Winchester fails to attract a sufficient number of students.
We have adapted recruitment activities in response to the COVID-19 pandemic, including replacing traditional open days with virtual experiences. We undertake regular monitoring of student application numbers at weekly senior management meetings and closely monitor the competitor activity and UCAS data to identify potential risks and react accordingly. We have appointed new creative agencies to support strong recruitment campaigns and promotions. We are piloting a refined approach to unconditional offers, to better understand the evidence that points towards the positives of unconditional offers.
Failure to maintain high levels of retention in the context of the Teaching Excellence Framework and current recruitment uncertainties
Security of Winchester systems and network being compromised leading to loss of critical services and/or loss or exposure of sensitive data.
Ensuring students are satisfied with their Winchester experience is vital. We have an Enrolment and Retention strategy currently in place which has led to the development of several retention initiatives including student listeners, attendance monitoring and extending our Peer Assisted Learning scheme to those programmes with low retention. We have provided mental health training for all staff and further customer service training to staff in student-facing roles. We have adopted a data-driven approach to student retention and recently established the TEF Working Group.
We created a pandemic action plan, implementing Microsoft Teams to enable staff to work from home. We have a close working relationship with JISC to help us mitigate any attacks. A robust internal process ensures that all software requests are instigated for security and data protection issues, and management of core infrastructure conforms to good practice, including moves to cloud provisioning with secure suppliers all certified to ISO 27001.
Integrated Annual Report 2019-20
The risk that Winchester may be unable to respond to a catastrophic event.
RISK MANAGEMENT
University of Winchester
=1
RISK DESCRIPTION
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RISK AND RANKING
6 IT infrastructure
7 8 Staff wellbeing and satisfaction
9 Graduate employability /higher study
The failure to deliver continual improvement in student experience in the context of current financial constraints and uncertainties.
If there is a reduction in staff motivation and morale, this can have a seriously detrimental impact on Winchester’s performance as it will impact negatively on staff engagement, commitment and willingness to expend discretionary effort.
Reduced rates of graduate-level employability compared with sector/competitors.
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University of Winchester
Integrated Annual Report 2019-20
Student experience
The failure to deliver adequate IT infrastructure and services of a kind and quality sufficient to meet the expectations of students and staff.
10 Reputation
A decline in external perceptions of Winchester.
We have introduced several new schemes and systems to improve IT Infrastructure. We have increased the number of open access PCs at West Downs and set up new PC availability screens in the library, alongside a PC booking system. We have upgraded wireless provision and improved Winchester’s student mobile app to support attendance monitoring. We delivered on the initial phase of the new Intranet and deployed Office 365 provision, including Microsoft Teams, to support staff with collaborative and distance working throughout the pandemic.
The student experience is of the utmost importance to Winchester. In response to the pandemic, we have moved all teaching and student support services online and increased the amount of communication made with students during lockdown. We have introduced additional mental health resources and appointed a new Head of Operations responsible for improving customer service within Student Services. We continue having a strong focus on retention across the institution, with the Student Transition Group continuing to develop plans and communications for incoming and returning students.
Ensuring student satisfaction and wellbeing is incredibly important to us. We continue to provide a range of wellbeing activities for staff (on-campus and online) and have enhanced the employee wellbeing online platform, offering discounts. We continue to provide a 24/7 helpline. On some occasions, we restrict professional services vacancies to internal applicants only and ask all newly appointed staff to confirm that they support Winchester’s values. In response to the pandemic, we made the decision to top up furlough payments to 100% and have supported academics in the move to online teaching.
We have validated programmes offered to ensure they focus on students' employability and have high graduate employability. We have created a Winchester Employability Fund and developed a new Careers Centre which will open in September 2020. The Careers Connect programme, which enables students to search for vacant graduate jobs, book career advice appointments and attend career event, is working well, with over 2,500 students registered since September 2018. We will continue to offer this provision to students, for life. We have moved career advice sessions and webinars online due to the pandemic. Winchester’s Graduate Employability and Higher Study Strategy Groups published their long-term strategies in summer 2020.
We have continued to maintain a strong brand image. We were rated as Outstanding in our most recent Ofsted review and received the Social Enterprise Gold Mark. Throughout the pandemic, we have ensured effective crisis management and communication. We focus on positive news stories about Winchester and consider how we affect the local community and economy through our respective Community & Economic Impact strategies, holding regular meetings with Winchester City Council.
Challenges COVID-19 Pandemic
RECRUITMENT The demographic downturn, with the number of 18-year-olds resident in the UK continuing to reduce until 2021, and the global impact of COVID-19, has led to rising uncertainty in recruitment across the sector. In response, we have enhanced our marketing strategy and continue to innovate and evolve our portfolio to secure a strong future for Winchester. This is a critical component of our new Strategic Vision 2030. In June/July 2020, a portfolio review led to Winchester introducing a targeted voluntary severance scheme, concentrating on specific academic areas where recruitment has decreased. 23 members of staff accepted voluntary severance. We continuously review financial sustainability with our Director of Finance and Planning, reporting to the SMT. Winchester plans to offer
In recognition of the exceptional circumstances caused by the COVID-19 pandemic, we introduced a ‘No Detriment Policy’ to support students through the 2019-20 academic year. This involved consultation with the President and the Vice President (Education and Welfare) of the Student Union, to ensure student views were represented. Key elements of this policy include: 1. The decision to move teaching online as soon as practical. 2. A two-week extension to the submission deadline for assessments due to be submitted between 18 March and 22 May 2020. 3. Replacing traditional timeconstrained on-campus examinations with a range of carefully designed and approved alternative assessments. 4. Revisions to our extenuating circumstances policy to enable students to self-certify for COVID-19 related issues and to remove the need for evidence in several cases. 5. No detriment frequently asked questions (FAQs) made available for students.
7. Emergency regulations for taught programmes for 2019-20. These included a benchmark safety net for all students (except those with Public, Statutory or Regulatory Body (PSRB) or equivalent constraints) to ensure they were not disadvantaged by performance in semester two assessments should these have had a negative impact on degree classification or progression. 8. Additional support for postgraduate research students on a case by case basis.
Integrated Annual Report 2019-20
At the start of June 2020, 218 employees were on furlough, of whom 140 were salaried staff and 78 were staff on casual contracts working regular hours. The numbers fluctuated week by week as staff returned from furlough and other staff were newly placed on furlough leave.
REDUCING THE IMPACT TO STUDENTS (NO DETRIMENT POLICY)
6. Weekly progression and award boards over summer 2020 to ensure that students received their results as soon as possible.
University of Winchester
FURLOUGH SCHEME
further voluntary redundancies in autumn 2020. We continue to develop our procurement function to ensure robust purchasing control and to maximise value for money. We are carefully monitoring staff costs through control of staff recruitment and examining opportunities for restructuring.
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COVID-19 continues to be the main challenge Winchester faces. Policies and procedures have been established to ensure the safety and wellbeing of students and staff. The Senior Management Team (SMT), together with colleagues from across the institution, have focused on managing the financial impact of the results of the pandemic and assuring the quality of the student experience in a time of pandemic. The Board of Governors received detailed papers on the financial implications and planned cost-savings as well as Winchester's response to the broader challenges presented by the pandemic.
#BlackLivesMatter
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University of Winchester
Integrated Annual Report 2019-20
Our response to the murder of George Floyd and the recognition of systematic racism within academia is an ongoing challenge. Winchester condemns racism wherever it exists and recognises that this is a journey needing a clear signal for action. The SMT are committed to leading this change. While work had already started, in recognition of this commitment we will bring change through actions to focus on the following: 1. Establishing a working group, in partnership with BAME staff and students and white allies at Winchester, to identify what needs to be done and establishing and reviewing an action plan to monitor change.
3. Accelerating our unconscious bias training for all staff including separate training on race and introducing interventions in staff recruitment practises to maximise the opportunity for BAME applicants.
2. Decolonising our curriculum through faculty representatives who are agents for change, by creating resources, workshops and learning events to support staff.
4. Creating a plan to become a member of Advance HE’s Race Equality Charter by 2022.
5. Addressing the BAME attainment gap through data-driven, department-level initiatives. 6. Reflecting the rich diversity of culture that staff and students bring in our materials and promotions.
Sustainability and social justice We pride ourselves in being the University for Sustainability and Social Justice, living in harmony and caring for the planet and all living things now and for future generations. We were the first university in the world to offer student teachers the opportunity to complete the UN-accredited Climate Change Teacher Course. We have improved carbon literacy among staff and students through training on the Carbon Literacy Project, recognised globally as a transformative action programme.
1. Implementing an improved approach to collecting and analysing business travel data, using the travel hierarchy to refine the existing travel policy and to encourage low carbon travel options for business travel.
The reduction in ranking in the Times Higher Sustainability League table was disappointing but has provided the impetus needed to re-focus. With a newly appointed Sustainability and Environmental Manager, we will embrace the new challenges presented by the Climate Emergency, realising that to bring change through actions, we need to concentrate on the following for the next academic year:
3. Providing a clear definition of roles and responsibilities across Winchester.
2. Promoting and increasing student awareness of doctoral research on sustainability, responsible management and climate change and environmental management systems (EMS).
4. Focusing on energy efficiency measures, verifying the savings for each project to understand their impact and continue to identify and implement additional energy conservation measures to close the performance gap.
5. Increasing the awareness of the opportunities to reduce energy consumption in information technology, integrating the environmental matters into IT’s decision making and implementing energy-saving initiatives 6. Improving data collection, analysis and reporting for energy, water, waste and travel, and visibility of performance
Image taken prior to COVID-19 pandemic 2020 45
University of Winchester
Integrated Annual Report 2019-20
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.
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University of Winchester
Integrated Annual Report 2019-20
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 23. This integrated report describes how we create value and the areas in which we have delivered value from financial inputs, amongst other sources. As the University for Sustainability and Social Justice, we place greater value on financially supporting environmentally sustainable, low carbon practices, which is exemplified by how we invested in our new carbon efficient building at West Downs Quarter. Whilst value for money was at the forefront of the tender for securing a development partner, it was also important to Winchester that all partners would support an energy efficient design incorporating solar PV, green roofs and rainwater harvesting. Not only does the sustainable design lead to a carbon efficient building, but it also leads to an improved full-life cost of running the building. We provide value for money for students, investing in a modern, sustainable and safe campus. 57% of tuition fee income is spent on
direct teaching costs and learning resources. 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, including:
• Southern Universities Purchasing Consortium (SUPC)
• GOV.UK – via Crown Commercial Services (CCS)
• HE Shared Legal – legal services provision
• British Universities Finance Directors Group (BUFDG) – for online financial training
• Eduserv – for the purchase of software licences
• iESE – construction framework • JISC – for broadband purchasing • NHS – TDS Framework • Southern Universities Construction Consultancy Affinity Group (SUCCAG)
• The Energy Consortium (TEC) • The Society of College, National and University Libraries (SCONUL)
• TUCO – the leading professional membership body for in-house caterers The aforementioned organisations consistently offer the sector value for money, often through rates specifically negotiated for the Higher Education sector. For example, figures published by SUPC for our 2018/19 expenditure demonstrate that Winchester has saved a total of £288,710 (£132,880 cashable savings)
on an addressable spend of £2.3m, through channelling Winchester’s non-pay spend through regional and national collaborative agreements where possible. The majority of Winchester’s SUPC addressable spend is associated with computer supplies and services, the remainder based on furniture, library and publications.
Supplier engagement SUPPLY CHAINS
STAKEHOLDER ENGAGEMENT
Winchester’s supply chains predominantly fall within the following categories:
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 will shortly be tendering its travel management requirements and a diverse user group has been formed to agree policy around using the service. 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.
We are a member of the Southern Universities Purchasing Consortium (SUPC) which has also published its own Modern Slavery Statement. We channel in excess of 30% of the value of our addressable spend through SUPC and other agreements arranged by higher education and public sector purchasing consortia or frameworks. 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.
POLICY AND STRATEGY Winchester’s procurement strategies are well developed and aligned with the institution's sustainability policies. Winchester has clear procurement policies and sustainability has been embedded into these practices. Staff involved in buying activity have been fully trained on their procurement approach and how this should align with Winchester’s environmental objectives. These policies are reviewed throughout the financial year.
ACTION PLANNING TO DRIVE SUSTAINABILITY
Integrated Annual Report 2019-20
• ICT equipment and services • Professional services • Teaching materials
Action planning is extremely important to Winchester. It incorporates objectives and associated value for money targets and drives activity across the board. This includes the development of mutually beneficial links between suppliers who have strong ethical and responsible procurement values. Winchester has recently released Strategy Review 2030. From this strategy, each department and faculty produce an annual operating statement that identifies objectives against this strategy for that year. Hence, corporate objectives are disseminated to each area of the business to reflect Winchester’s values and direction. Procurement is one such department, under Finance and Planning, which is targeted to implement environmental sustainability into the supply chain. Winchester’s stationery provider, Warrens, is a good example of this. We have partnered with them and worked together to reduce packaging and single-use plastics from their deliveries.
University of Winchester
(works, services and goods)
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• Estates and facilities management
Sustainability is embedded in all areas of our operations, from our Values Studies modules taught to our students, to our project to have the first WELL accredited building in the sector. @peterlangdownphotography
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 Winchester’s 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. It is our aim to use Fairtrade or equivalent garments wherever possible.
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University of Winchester
Integrated Annual Report 2019-20
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.
DELIVERING SAVINGS AND EFFICIENCIES Over the last 12 months, we have made a conscious effort to move procurement away from reactionary activity to a more strategic, proactive approach. Procurement activity now aims to not only deliver governance and value for money, but also support and drive Winchester’s values and aspirations around stimulating the local community, fostering sustainability, delivering ethical sourcing and managing the environmental footprint of our buying activity. In short, we have worked hard towards having a positive and balanced impact on our community and environment. A good example of this is our relationship with our stationery supplier, Warrens Office Supplies, a local supplier who was recently awarded Winchester’s stationery contract. Winchester has recently awarded its stationery contract to a local supplier. One of the initial aims of the procurement approach was to give local business the opportunity to bid for our requirements. In an unusual
step for the sector, Winchester decided to run its own EU compliant tender for stationary provisions. This enabled us to give our local business community a chance to pitch for this business. It also enabled us to fully control the specification and requirements, meaning we could weight environmental factors such as controlling delivery, managing packaging and reducing single-use plastics as high priority factors in the award criteria. Warrens Office Supplies’ bid not only offered improved value for money, but also more importantly fully understood and incorporated our sustainability and environmental requirements and were keen to work together in order to achieve this. The contract was able to deliver: • Value for money, realising considerable savings on our legacy supplier. • A reduction in all cardboards and packaging, by utilising a special reusable delivery box – "Notbox". • A commitment to work with their suppliers to reduce all single-use plastics in the packaging. • Reductions in deliveries from every day to twice a week, in order to cut emission on site. • A supporting initiative to move to an electronic fleet of delivery vehicles.
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. 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: www.winchester.ac.uk/about-us/ sustainability-and-social-justice/ modern-slavery/
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University of Winchester
Integrated Annual Report 2019-20
Financial review It has been a 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. The uncertainty was exacerbated by a lockdown in March 2020 which prompted Winchester into emergency planning to establish new ways of teaching and preparing our estate to be ‘Covid safe’. Despite the lockdown’s detrimental financial impact Winchester’s robust financial management, strong governance and swift mitigating actions resulted in a successful year-end surplus of £1.5m, operating cash flow of £11.0m and a £7.6m increase in closing cash and cash equivalents. We are still challenged by the uncertainty the pandemic has caused and continue to regularly review and update our medium- and long-term financial forecasts. However, our strong performance for 2019/20 exceeded budget expectations and provides a stronger financial foothold from which to face another challenging year ahead as the world searches for a viable vaccine. This Financial Review (pages 50–54) puts the year in perspective and outlines our financial environment, finance strategy, financial KPIs, financial performance and our future outlook.
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University of Winchester
Integrated Annual Report 2019-20
Financial environment This year the financial environment was dominated by the direct and indirect impacts of the COVID-19 pandemic. This catastrophic event has led to increased uncertainty and risk across all parts of the global economy. At a local level, Winchester experienced a number of unprecedented challenges including: • Rapidly investing in new equipment and practices for online delivery of lectures • Expenditure on campus adaptations to deliver a ‘Covid safe’ campus for the start of semester 1 • Mothballing buildings over the summer • Disruptions to summer estates works as contractors went into lockdown • Delayed opening of our new West Downs learning and teaching building • Loss of catering and conferencing income over the summer and thereafter • 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 including a voluntary redundancy scheme • Restricted travel for international students impacting current students and future demand • Turbulent financial markets adversely impacting pension valuations
As well as the financial impact of the pandemic, Winchester encountered a University and Colleges Union (UCU) strike (representing our academic staff) in February and March 2020. The two weeks of action was over issues that were not all within Winchester’s direct control – a dispute between the UCU and the Universities and Colleges Employers' Association (UCEA). The dispute was over a number of factors, the primary one regarding the level of pay, which is negotiated at a national level by UCEA. Winchester did all it could to minimise the impact of the strike on the student experience and where lectures were impacted, we endeavoured to find suitable alternatives so that classes could go ahead. We extended deadlines for student assignments by two weeks to allow for the disruption caused by the strike and financially compensated those whose lectures were materially disrupted by the strike. The global pandemic and strike overshadowed ongoing concerns over the Government’s possible implementation of some of the Augar review recommendations, the
ongoing decline in the number of 18-year-olds living in the UK and the impacts of Brexit. Winchester is regularly reviewing the 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. Winchester continues to hold regular Brexit meetings to keep abreast of the latest changes as the United Kingdom manages its exit from the European Union.
RESPONDING TO COVID-19 Winchester responded quickly to the challenges presented by the pandemic by mobilising a crossinstitutional project to manage the closure, and subsequently the reopening of the estate in preparation for the 2020/2021 academic year. The project was exemplar of our integrated thinking approach and is outlined in more detail on page 14.
Finance strategy Our finance strategy is designed to empower Winchester to reach its potential and implement its Strategic Vision 2030. It has been drafted with reference to these five principles:
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:
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
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 on pages 28-29.
Financial KPIs Key performance indicators (KPIs) are used by our Senior Management Team and by our Board of Governors to assess the Winchester’s performance. Our KPIs are regularly reviewed in line with 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 are reconciled to accounting data. Our three main financial performance KPIs for 2019/20 were:
FINANCIAL KPIs
2019/20
2018/19
Profitability %: EBITDA/Total Income
12.7%
9.1%
Margin for Sustainability and Investment (MSI)
11.4%
8.7%
1.0
(0.1)
Financing: Net bank borrowing/EBITDA EBITDA = Earnings Before Interest, Tax, Depreciation and Amortisation. MSI is calculated from an average of the last three completed years and three forecast future years EBITDA, divided by the current year total income. Our profitability percentage has increased to 12.7% in 2019/20 due to our improved financial performance in the year described in more detail under Financial performance which follows.
Our MSI factor is similarly derived from EBITDA but is calculated from historic periods and future forecast periods taken from our business plan. The improvement for 2019/20 is due to the much higher outturn for the year. However, whilst our MSI showed an improvement for 2019/20, subsequent forecasts are expected to reduce this improvement following the medium-term impact modelling of the pandemic.
Our financing KPI of 1.0 for 2019/20 represents the ratio of net bank borrowing to EBITDA. This is a strong result after having fully drawn our £30m Triodos loan in the year, showing that our net debt is no greater than our EBITDA. The negative ratio for 2018/19 was due to our cash exceeding our bank borrowing whilst the Triodos loan facility was still being drawn.
Integrated Annual Report 2019-20
3. Financing development and investment
delivery of excellence in education. Ensure capital investment is at a level that will not put Winchester at financial risk.
University of Winchester
2. Maintaining productive capacity to meet current objectives
Financial sustainability – To remain financially sustainable and produce sufficient cash to support our strategic objectives and provide institutional sustainability.
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1. Long-term viability and matching resources with objectives
Financial performance The onset of the COVID-19 pandemic has had a significant impact on this year’s financial statements, in respect of reducing both income and expenditure. However, despite the challenges resulting from the first wave of the pandemic we end the year in a strong financial position, which will better help us navigate what will be a period of continued uncertainty in the coming year.
Staff costs are lower than the previous year due to a voluntary redundancy scheme at the end of 2018/19. Other operating expenditure has also reduced where the effects of COVID-19 saw a marked decrease in expenditure in the latter months of the financial year, due to: some staff on furlough; catering, conferencing and accommodation largely closed; buildings being mothballed for several months; and usual operating activities reduced. The year saw the final stages of construction of our new West Downs teaching and learning building, which was partly funded (£20m, 40%) from internally generated funds. However, the pandemic delayed the opening of the building until the first semester of 2020/21.
COVID-19 pandemic – we begin the new financial year with more available cash than at the end of last year.
INCOME Total income for the year is £80.9m (2018/19 £80.5m) :TOTAL INCOME 2019/20 (£m) Total: £80.9m
Tuition fees and education contracts Funding body grants Research grants and contracts Other income
TUITION FEE INCOME 2019/20 Per cent
Full-time home and EU students Full-time international students Part-time students Self-financing courses
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University of Winchester
Integrated Annual Report 2019-20
For the year ended 31 July 2020, we report a surplus of £1.5m (2018/19 deficit £2.9m). Student recruitment was strong in the year and overall income is marginally higher than in 2018/19, despite sizeable reductions in accommodation rental income, catering income and conferencing income as a result of COVID-19. Student recruitment was supported by our new Faculty of Health and Wellbeing, which continues to become fully established with new courses proving extremely popular with students.
During the year, Winchester signed a revised loan covenants with the Allied Irish Bank which now aligns with our Triodos Bank agreement, making compliance easier to monitor and bringing the loans in-line with the HE SORP 2019, reporting under FRS 102. Net cash inflow from operating activities increased from £5.8m to £11.0m. Maintaining our cash position is paramount during this period of uncertainty and – despite having endured the first wave of the
Tuition fee income accounts for 81% of the Winchester’s income and has increased by 6% to £65.7m in the year, with the increase reflecting strong recruitment achieved in this and previous years; all this being achieved against the back-drop of a period of declining numbers of 18-year-olds resident in the UK. Funding body grants from the Office for Students and Research England were awarded at a similar level to 2018/19 at £3.3m.
Income from research grants and contracts was impacted by COVID-19 with much of the research work being suspended following the onset of the pandemic. Income from accommodation, catering and conferences was also significantly impacted by COVID-19 in the year, with income being 27% lower than the previous year at £8.9m (2018/19 £12.2m). Once lockdown was announced in March 2020, most students vacated their rooms. In support of its values, Winchester chose to refund students for their accommodation fees from the date the University went into lockdown, amounting to £3.2m of refunds being awarded. However, over the summer Winchester was able to support the NHS by providing 60 rooms at our Burma Road Student Village to house key workers for Hampshire Hospitals NHS Foundation Trust. The onset of the pandemic also meant that catering operations and conference activity was considerably reduced from March 2020 onwards. Interest receivable reduced from £0.2m to £0.1m due to a reduction in the deposit interest rates and a lower cash balance held during the year. Interest payable was also minimised as £20m of drawdowns from the £30m Triodos Bank loan facility were not actioned until absolutely necessary.
EXPENDITURE Total expenditure for the year is £79.4m (2018/19 £83.4m), a decrease of 5%. The main driver of this reduction was a lower operating expenditure in the final months of the financial year due to the impact of the COVID-19 pandemic. Total staff costs for the year decreased by 2% to £45.9m (2018/19 £46.9m) due to changes in all categories of staff costs as follows:
• Basic salary and social security
Staff cost % turnover
reductions of 10-20% and only spend on essential items. The reduction in expenditure more than offsetting the reductions in accommodation, catering and conference income. Depreciation reduced by 5% during the year, with some summer estate projects being deferred due to COVID-19. The postponement in the use of the new £50m teaching and learning building at West Downs resulted in no depreciation charge
being incurred in the year, saving £1.7m against budget.
Creditors Creditors falling due after more than one year has increased from £45.4m to £66.6m, with the increase reflecting the remaining £20m draw down of the Triodos Loan Facility and the transfer of amounts falling due after more than one year of the Allied Irish Bank loan, as mentioned above.
balance sheet liability of £20.0m (£6.6 2018/19) was charged in respect of the LGPS.
Interest and other finance costs have increased by 7% (£0.2m) due to the remaining £20m of the £30m loan facility from Triodos Bank being drawn during the year to fund the final construction and fit-out phases of the new teaching and learning building at West Downs.
BALANCE SHEET Fixed Assets Capital additions during the year were £15.8m, with £14.4m relating to the final stages of construction and fit-out of the new teaching and learning building at West Downs. There were no significant disposals or impairments in the year, and the net book value of our fixed assets increased by £10.7m to £209.3m. Current Assets Current assets increased by £8.2m to £28.5m during the year due to an increase in cash. Due to the on-going negotiations with the Allied Irish Bank at the end of 2018/19 regarding revising the loan covenants, the full outstanding loan of £4.7m was shown in 2018/19 in creditors falling due within one year. The Deed of Amendment with revised covenants was signed with the Allied Irish Bank during the year which caused the creditor to be re-classified between amounts falling due within one year and amounts falling due after more than one year, under the terms of the loan agreement.
Pension provisions have increased by £19.6m as detailed in note 16 to the accounts, following an adverse actuarial valuation due to weakened financial markets following the pandemic outbreak. Pensions Due to the performance of our main pension schemes, and legal and actuarial changes to schemes, Winchester is likely to suffer future pension cost increases. The cost of Winchester’s three main schemes, Local Government Pension Scheme (LGPS), Teachers’ Pension Scheme (TPS) and Universities Superannuation Scheme (USS), amounted to contributions of £6.0m in 2019/20. In addition to these charges, a further
Over the past few years, the Winchester’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 Winchester’s pension schemes and to inform future decision making regarding the Winchester’s pension portfolio. Cash Position Closing cash and investments increased by £7.5m to £22.7m. This was primarily due to the mitigating actions during the year to reduce expenditure, and was assisted by the Government furlough receipts.
Integrated Annual Report 2019-20
Basic salary % turnover
University of Winchester
Other operating expenditure decreased by 10% to £26.1m (2018/19 £29.0m) due to the impact of the COVID-19 pandemic in the final half of the year with many activities ceasing and staff being asked to take budget
STAFF COSTS AS A PERCENTAGE OF INCOME
53
costs decreased by £0.2m to £37.4m due to the impact of a voluntary redundancy scheme at the end of 2018/19 coupled with careful scrutiny of staff recruitment during the year. • Pension costs decreased by 4% to £7.7m (2018/19 £8.0m). The increase in the TPS contribution rate to 24% in September 2019 increased contributions by £0.8m to £3.4m, but this was negated by pension provisions relating to the USS and LGPS reducing to £1.5m (2018/19 £2.8m). • Restructuring costs of £0.6m have been reported in the year as a result of a 2019/20 voluntary severance scheme (2018/19 £1.1m). • Staff as a percentage of income reduced to 56.7% (2018/19 58.2%), following the impact of the 2018/19 voluntary severance scheme.
University of Winchester
Integrated Annual Report 2019-20
Future outlook After a summer of opening mothballed buildings and implementing a ‘Covid safe’ campus, students were welcomed back for semester one 2020. Learning and teaching has been radically changed to blend both online and face to face teaching, where it is safe to do so, ensuring that Winchester is able to offer students the best possible learning experience under COVID-19 restrictions.
in other incomes. However, as with 2019/20, whilst under COVID-19 restrictions and with little certainty of the future impacts of the pandemic, Winchester continues to closely monitor its cash flows and revise its short- and medium-term forecast. The Board of Governors have also approved a list of ranked mitigating actions that would result in further cost reductions and income generation should any be required.
Our 2020 intake of new students was on budget, and our budget plans have incorporated a number of possible adverse impacts from the second, and possibly further, wave of COVID-19 infections. We are confident that Winchester has sufficient resources to remain financially sustainable. We have modelled the most challenging scenarios that the pandemic may cause, and whilst the worst scenario would require Winchester to seek further financial support, we believe that the most likely scenarios are fully sustainable.
Despite the challenges COVID-19 presents, Winchester has remained committed to its 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 developed our new 10-year plan: Strategic Vision: A beacon of education excellence, sustainability and social justice. The vision includes a Five-Year Business Plan which set the baseline financial projections on which we modelled the possible impacts and scenarios of the short-term and medium-term
Our prudent plans for 2020/21 have incorporated an inflated withdrawal rate and provisions for an increase in doubtful debts, and a reduction
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 2020, Winchester is in a healthy position for a successful 2020/21.
SIGNED ON BEHALF OF THE BOARD OF GOVERNORS:
A C Lovell Chair of Board of Governors
Professor Joy Carter CBE DL Vice-Chancellor Date: 2 December 2020
CHANGES IN CASH MOVEMENT 2019/2020
£20.0m
£0.5m
£3.4m
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£20.6m
£11.0m £22.7m £15.2m
Opening cash and investments
Cash inflow from operating activities
New borrowing
Cash flows from investing activities
Cash flows from financing activities
Capital expenditure
Closing cash and investments
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
• make judgements and estimates that are reasonable and prudent
• state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements
• assess Winchester’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern
• use the going concern basis of 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
The Board of Governors are also responsible for ensuring that:
• funds from whatever source administered by Winchester for specific purposes have been properly applied to those purposes and managed in accordance with relevant legislation
• funds provided by the Office for Students and Research England have been applied in accordance with the terms and conditions attached to them
• there are appropriate financial and 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.
University of Winchester
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.
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.
55
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.
Integrated Annual Report 2019-20
Statement of Board of Governors responsibilities in respect of the strategic report, the directors’ report and the financial statements
STATEMENT BY THE DIRECTORS IN PERFORMANCE OF THEIR STATUTORY DUTIES IN ACCORDANCE WITH S172(1) COMPANIES ACT 2006
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University of Winchester
Integrated Annual Report 2019-20
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 2020. In particular, by reference to the approval of our Strategic Vision and five year business plan for the period 2020–25, supported by the initiative 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 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 61 to 69. Further information as to how the board has had regard to the s172 factors is embedded in this integrated report with the following references:
Section 172 factor
Key examples
Page
a. The likely consequences of any decision in the long term
The University of Winchester is proud to have launched 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.
11, 16 & 77
b. The interests of the company’s employees
The University of 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 most notably in our Vice-Chancellor foreword.
11 & 30
c. The need to foster the company’s business relationships with suppliers, customers and others
Our Integrated Annual Report includes several examples of the strong partnerships we have fostered with suppliers and customers, including our relationship with Hampshire Hospitals NHS Foundation Trust (HHFT).
20, 37 & 46-48
d. The impact of the company’s operations on the community and the environment
The University of Winchester’s support for the Climate Emergency and the United Nations Sustainable Development Goals; our value creation model; and our value of social justice and impact on our flourishing communities.
8-9, 23-26, 35-36 & 38
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.
8-9, 13-14, 33-34 & 37-38
f. The need to act fairly as between members of the company
Our governance structure is core to the equality between out members. The University of Winchester prides itself on including the Winchester Student Union President on our Board of Governors. Our governance structure is explained in detail under our Statement of corporate governance and internal control and statement of internal controls.
55-65
AUDITOR A resolution to re-appoint KPMG LLP as auditor for the forthcoming year was proposed and approved at the meeting of the Board of Governors on 2 December 2020. The auditor has served for four 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.
Integrated Annual Report 2019-20
SIGNED ON BEHALF OF THE BOARD OF GOVERNORS:
University of Winchester
A C Lovell Chair of Board of Governors
Professor Joy Carter CBE DL Vice-Chancellor
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Date: 2 December 2020
REGISTERED OFFICE: University of Winchester Sparkford Road Winchester Hampshire SO22 4NR
@peterlangdownphotography
Our Governors The following are current Winchester Governors (Directors) or those who served during the year ended 31 July 2020. 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 is also listed below.
Membership
Meeting: Board Members
Appointed on
Resigned on
Board of Governors Members
Attendance
Chair
Risk & Audit Committee Members
Attendance
Standing Committee Members
Attendance
5/5
Chair
4/4
DIOCESAN GOVERNORS
University of Winchester
Integrated Annual Report 2019-20
Alan Lovell (Chair) Winifred Harris (Vice-Chair)
31 July 2020
5/5
4/4
Mark Byford
31 July 2020
5/5
4/4
Tim Dakin, The Right Revd. The Bishop of Winchester (ex officio)
3/5
Jane Jessop
4/5
Andrew Robinson
4/5
3/4
4/5
4/4
4/5
5/5
4/4
Mary Edwards (Vice-Chair)
5/5
Prof. Chris Gaskell
4/5
4/4
Dr. Emma Page
Edward Rochead
01 August 2020
Mark Thistlethwayte
01 October 2019
David Williams, The Right Revd. The Bishop of Basingstoke CO-OPTED GOVERNORS Margaret Chin-Wolf David Cook
31 July 2020
2/3
3/3
5/5
Chair
3/3
2/2
1/1
5/5
2/3
4/4
24 January 2020
3/3
30 March 2020
1/1
1/1
1/1
3/3
1/1
1/1
5/5
4/4
5/5
Dr. Lesley Black
5/5
4/4
Tom Lowe
5/5
4/5
5/5
3/4
Andrew Smith
29 January 2020
Rae Tooth
01 August 2020
4/4
ACADEMIC GOVERNORS Dr. Emile Bojesen
01 August 2020
Prof. Joy Carter (ex-officio) Dr. Robert Gray Gavin Hunter (ex-officio and company secretary) Prof. Neil Marriott (ex-officio)
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31 January 2020
Revd. Prof. Elizabeth Stuart (ex-officio) Prof. Nigel Tubbs
31 July 2020
PROFESSIONAL SERVICES STAFF GOVERNORS
FORMER STUDENT GOVERNOR Peter Lidgitt STUDENT GOVERNOR Megan Ball
01 August 2019
CLERK TO THE GOVERNORS Stephen Dowell
01 November 2019
COMPANY SECRETARY Colette Fletcher
30 September 2019
Meeting: Board Members
Nominations Committee
Remuneration Committee
Foundation Committee
HR Committee
Members
Attendance
Members
Attendance
Members
Attendance
Members
Attendance
3/3
2/2
1/2
1/3
Chair
3/3
2/2
3/3
Chair
2/2
Chair
3/3
3/3
DIOCESAN MEMBERS
Andrew Robinson
Chair
1/2
3/3
David Williams, The Right Revd. The Bishop of Basingstoke
1/2
CO-OPTED GOVERNORS Margaret Chin-Wolf David Cook
2/3
Mary Edwards
2/2
2/2
2/3
1/1
1/1
ACADEMIC GOVERNORS Prof. Joy Carter (ex-officio)
1/2
2/3
Revd. Prof. Elizabeth Stuart (ex-officio)
2/2
3/3
Prof. Nigel Tubbs
2/2
3/3
3/3
PROFESSIONAL SERVICES STAFF GOVERNORS Dr. Lesley Black Tom Lowe
2/3
STUDENT GOVERNOR Megan Ball
0/2
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 2019-20
Mark Byford Tim Dakin, The Right Revd. The Bishop of Winchester (ex officio)
University of Winchester
Winifred Harris (Vice-Chair)
59
Alan Lovell (Chair)
@peterlangdownphotography
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University of Winchester
Integrated Annual Report 2019-20
Statement of corporate governance and internal control Corporate governance
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 of the University. The University 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 the University, 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, the University also undertakes other activities including knowledge exchange, consultancy and the provision of accommodation, catering and conference services. In setting and reviewing the University’s strategy and activities,
The Board of Governors have due regard to any detrimental harm that may arise from the University’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. The University does not currently incur private benefit from its activities undertaken in pursuance of its purposes. The Board of Governors recognise that students, both undergraduate and postgraduate, are the principal beneficiaries of the provision of higher education whilst the public at large are beneficiaries of the University’s Research and Knowledge Exchange and community engagement activities.
The Board of Governors of the University, 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, the oversight of its activities, the effective and efficient use of resources, the solvency of the University, for safeguarding its assets and for approving annual estimates of income and expenditure. The University’s Board of Governors comprises persons appointed under the University’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. The University has been designated by the Secretary of State as an institution in the further and higher education sector, which 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.
Integrated Annual Report 2019-20
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.
RESPONSIBILITIES OF THE BOARD OF GOVERNORS
University of Winchester
LEGAL STATUS AND PUBLIC BENEFIT
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, the University takes seriously its commitment to ensure that it satisfies the Charity Commission’s public benefit requirements.
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The University is committed to exhibiting best practice in all aspects of corporate governance. This statement details the manner in which the University 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.
62
University of Winchester
Integrated Annual Report 2019-20
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 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 re-appointment 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 the University’s Chief Executive, the Vice-Chancellor. 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 2020. The University’s constitution places responsibility for the University’s operations with the ViceChancellor who, as the Accountable Officer, supported by the Senior Management Team, implements the Board’s policies and develops and manages the University’s business. The University 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 the University and for the oversight of its activities including approving its mission, values, strategic vision and long-term business plans, in order to remain sustainable and financially viable. The Board of Governors is also the principal financial and business authority of the University and oversees the financial health of the University. 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. 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 on the mutual interests of the University and the Office for Students. For the purposes of this statement, public funds includes funds received from the Student Loans Company, UK Research and Innovation (including Research England), Education and Skills Funding Agency and the Department for Education.
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 the University. Under the Office for Students terms and conditions (OfS 2019.12) between Office for Students and the Board of Governors, the Vice-
SENIOR MANAGEMENT TEAM The Board of Governors (Board) delegate operational management control of the University to the Senior Management Team (SMT), which is chaired by the Vice-Chancellor. SMT meets at least three times each month. In addition to these meetings, once a month the SMT meets with the Deans of Faculty to focus on the academic delivery and other related matters of the University; this is known as the University management Group (UMG) Membership and attendance for all Board Committees can be found on pages 58-59.
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. 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.
RISK AND AUDIT COMMITTEE The Risk and Audit Committee is responsible for reviewing the audit aspects of the University’s financial statements, reviews the audit plans and the final audit reports. It considers the appropriateness of the internal
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 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 any University officers present.
REMUNERATION COMMITTEE 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
Integrated Annual Report 2019-20
The University 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, the University has appointed a Clerk to the Governors who provides independent advice on matters of governance to Board members.
auditor's risk assessment and audit plans and reviews reports from them on their investigations. 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 the University’s risk management strategy, control and governance, 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 suitable arrangements are in place to promote economy, efficiency and effectiveness. It considers reports from the Office for Students as they affect the University’s business and monitors adherence with regulatory requirements.
University of Winchester
A ‘Statement of Primary Responsibilities’ provides more detail of the responsibilities of the Board, which include: • the determination of the educational character and objectives of the University and for the oversight of its activities; • the effective and efficient use of resources; • the solvency of the University and for safeguarding its assets; • approving annual estimates of income and expenditure; • the assignment of duties and of the appraisal of the Vice-Chancellor; • determining the identity of the Designated Staff and their selection, appraisal, remuneration and monitoring of their performance. For 2019-20 the Designated Staff are the Vice-Chancellor, the First Deputy Vice-Chancellor, the Chief Operating Officer, the Deputy ViceChancellor, the Assistant ViceChancellor, 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 Auditor.
Chancellor is the Accountable Officer of the University and in that capacity can be summoned to appear before the Public Accounts Committee of the House of Commons.
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The University 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.
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University of Winchester
Integrated Annual Report 2019-20
against personal objectives; the performance of the University against its KPIs and targets; and the use of relevant benchmarking comparators. The committee recognises it must strike the right balance between recruiting, rewarding and retaining the best senior staff possible. The committee value 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 the University’s Governing Board. The Vice-Chancellor 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.
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 recruitment and selection 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 University 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.
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 on matters related to our Christian foundation to the Board. It annually monitors the interpretation and execution of the University’s Mission, Values, Strategic Plan and Foundation Strategy, and fosters wider development of awareness and debate on matters of faith, and positive relations between faith communities, the Diocese of Winchester, the Cathedral, the local parish and beyond. This committee also organises and manages 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 reports where appropriate.
OTHER COMMITTEES In addition to the aforementioned committees, the University holds the following committee meetings with student and/or Student Union representation as denoted opposite.
The data relates to the period 1 April 2019 to 31 March 2020.
TRADE UNION FACILITY TIME REPORTING 2019/20 UNION OFFICIALS Number of employees who were relevant union officials during the period
4
Full-time equivalent employee number
2.4
NUMBER OF TU REPRESENTATIVES BY PERCENTAGE OF TIME SPENT ON FACILITY TIME 0%
0
1-50%
4
51-99%
0
100%
0
PAY BILL SPENT ON FACILITY TIME
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
Total pay bill Paid Trade Union activities Percentage of paid facility time hours spent on paid Trade Union activities
£42,753,829 £29,978 0%
OUR UNIVERSITY COMMITTEE STRUCTURE BOARD OF GOVERNORS
Standing Committee
Risk & Audit Committee
*Foundation Committee
Senior Management Team
Senate
University Management Group
*Equality and Diversity Committee
*Joint Health and Safety Committee
*Student Academic Council
*Honorary Award Committee
*Senate Academic Development Committee
*Academic Regulations, Policies and Procedures Committee
Faculty Management Group
Planning and Resources Committee
*Faculty Academic Development Committees
*Programme Committees
*Research Degree Quality Committee
*PG Cert *Programme Committee
*Student Experience Committee
*Senate Research and Knowledge Exchange Committee
*RKE Ethics Committee
*RKE Grants Committee
*Faculty RKE Committee
Integrated Annual Report 2019-20
Nominations Committee
University of Winchester
Remuneration Committee
65
Human Resources Committee
REMUNERATION COMMITTEE'S DECISION ON VICE-CHANCELLOR'S SALARY The Remuneration Committee met on two occasions in 2019/2020 – on 24th April 2020 and on 8th July 2020. All members were present at both meetings, which were held remotely via Microsoft Teams.
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University of Winchester
Integrated Annual Report 2019-20
The Chair of the Remuneration Committee always stresses to the Committee that their decisions should be based on fair, appropriate and justifiable remuneration that demonstrates procedural fairness and sensitivity to the stewardship of Winchester’s funds to ensure value for money and the protection of the Institution’s reputation. The Committee has access to a range of information to inform its decisions including: • Winchester’s latest key performance indicators table and associated RAG ratings and trends, set against agreed strategic targets for Winchester as a whole
• The Vice-Chancellor’s achievements against the objectives set in her individual review • The latest position on the HE-wide pay negotiations • The current median pay ratio of the Vice-Chancellor to all Winchester staff • Higher Education sector comparative remuneration data for senior staff in similarsized universities including the Universities and Colleges Employers’ Association (UCEA) senior staff remuneration survey and the CUC Vice-Chancellor salary survey • Other relevant data regarding external senior staff in public bodies locally (such as Hampshire County Council and Winchester City Council) • Consideration of these sources of comparative information ensures that the Vice-Chancellor’s
remuneration is set at a level that is appropriate and justifiable in relation to the size and complexity of the role. The Committee noted the serious detrimental impact on the financial position of the higher education sector caused by the COVID-19 pandemic and noted that this had resulted in UCEA taking the decision that there would be no uplift of the national pay spine salaries in 2020/21. Taking both the national and the Winchester’s specific financial situation into account, the Committee took the unanimous decision that there should be no salary increase for the Vice-Chancellor for the financial year 2020/21 and that this decision should also apply to all other members of Winchester’s Senior Management Team. Accordingly, the basic salary of the Vice-Chancellor remains unchanged at £233,207 per annum.
@saetre96
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University of Winchester
Integrated Annual Report 2019-20
Statement of internal controls
68
University of Winchester
Integrated Annual Report 2019-20
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 29 March 2019 (OfS 2019.12). Since the introduction of the Office for Students, which took on the funding and regulation of the Higher Education sector from 1 April 2018, the University has complied with the ‘carried forward’ powers and duties of the Office for Students including:
• The terms and conditions of Office for Students funding,
• The terms and conditions of Research England Grant funding, and
• The requirements set out in the Agreement on Institutional Designation, as outlined in the Office for Students terms and conditions of funding for higher education institutions. We have complied with the Office for Students 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 Practice and refers 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 2020 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 three times per year to consider the plans and strategic direction of the University.
• 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 ViceChancellor 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 the University’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 University and operational levels as appropriate to the risk. Risk management is embedded in the operation of the University.
• A system of key performance and risk indicators has been developed.
• A robust risk prioritisation methodology based on risk ranking and cost-benefit analysis has been established. An organisationwide Risk Register, which is 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 the University from achieving its strategic priorities.
• Reports are received from budget holders, department heads and project managers on internal control activities.
As per section 7 of the Memorandum and Articles of Association every Governor of the University undertakes to pay up to one pound (£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.
A C Lovell Chair of Board of Governors
GOING CONCERN After making appropriate enquiries, the Board of Governors has a reasonable expectation that the University 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 page 77. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
Professor Joy Carter CBE DL Vice-Chancellor Date: 2 December 2020 Integrated Annual Report 2019-20
The Board’s review of the effectiveness of the system of internal controls is also informed by the work of the executive managers within the University, 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:
University of Winchester
The internal auditor submits regular reports on the adequacy and effectiveness of the University’s system of risk management, internal controls and corporate governance, and economy, efficiency and effectiveness (value for money) with recommendations for improvement.
GOVERNORS’ LIABILITY ON DISSOLUTION
69
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).
Independent auditor’s report to Board of Governors of University of Winchester Report on the audit of the financial statements
70
University of Winchester
Integrated Annual Report 2019-20
OPINION We have audited the financial statements of University of Winchester (“the University”) for the year ended 31 July 2020 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Reserves, Cash Flow Statements and related notes, including the 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 2020, 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, and with the 2019 Statement of Recommended Practice – Accounting for Further and Higher Education;
• meet the requirements of the Accounts Direction dated 25 October 2019 issued by the Office for Students;
• have been prepared in accordance with the requirements of 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 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”). We are required to report to you if we have concluded that the use of the going concern basis of accounting is inappropriate or there is an undisclosed material uncertainty that may cast significant doubt over the use of that basis for a period of at least a year from the date of approval of the financial statements. 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. We have nothing to report in these respects. 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 absence of reference to a material uncertainty in this auditor's report is not a guarantee that the University will continue in operation.
OTHER INFORMATION The Board of Governors is responsible for the other information, which comprises the Strategic Review incorporating the Operational Review, the Financial Review and the Corporate Governance and Internal Control Statement. 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: • we have not identified material misstatements in the other information;
been 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 have not been kept by the parent University, or returns adequate for our audit have not been received from branches not visited by us; or
• university’s financial statements are not in agreement with the accounting records and returns; or
• certain disclosures of directors’ remuneration specified by law are not made; or
information and explanations we require for our audit. We have nothing to report in these respects.
BOARD OF GOVERNORS RESPONSIBILITIES As explained more fully in their statement set out on pages 61, the Board of Governors (who are the Directors of the University company for the purposes of company law) 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.
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.
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: • funds from whatever source administered by the University for specific purposes have been properly applied to those purposes and managed in accordance with relevant legislation;
• income has been applied in accordance with the articles of government for post 1992 institutions; and
• funds provided by the Office for Students, UK Research and Innovation (including Research England), the Education and
Skills Funding Agency and the Department for Education have been applied in accordance with the relevant terms and conditions.
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION 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. 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.
Integrated Annual Report 2019-20
• in our opinion those reports have
• we have not received all the
University of Winchester
given in the Strategic Review and the Report of the Governors and Corporate Governance Statement, which together constitute the strategic report and the directors’ report for the financial year, is consistent with the financial statements; and
We have nothing to report in these respects. 71
• in our opinion the information
The purpose of our audit work and to whom we owe our responsibilities
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University of Winchester
Integrated Annual Report 2019-20
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 Office Address: KPMG LLP, Gateway House, Tollgate, Chandler’s Ford, Eastleigh, Hampshire SO53 3TG
Financial statements UNIVERSITY OF WINCHESTER Statement of Comprehensive Income and Expenditure Year Ended 31 July 2020
2020
2019
ÂŁ'000
ÂŁ'000
Notes
65,698 3,253 291 11,558 111 80,911
61,834 3,244 514 14,714 227 80,533
Endowments and donations
5
-
2
80,911
80,535
45,857 26,149 5,095 2,341 79,442
46,873 29,026 5,345 2,183 83,427
1,469
(2,892)
Actuarial loss in respect of pension schemes
(17,682)
(4,000)
Total comprehensive deficit for the year
(16,213)
(6,892)
Represented by: Endowment Comprehensive Income for the year Unrestricted comprehensive deficit for the year
(16,213)
2 (6,894)
(16,213)
(6,892)
Total income Expenditure Staff costs Other operating expenses Depreciation Interest and other finance costs Total expenditure
6 7 9 8
Surplus/(Deficit) for the year
All items of income and expenditure relate to continuing activities. The accompanying notes form part of these financial statements.
University of Winchester
1 2 3 4 5
73
Tuition fees and education contracts Funding body grants Research grants and contracts Other income Investment income Total income before endowments and donatons
Integrated Annual Report 2019-20
Income
UNIVERSITY OF WINCHESTER Statement of Changes in Reserves Year Ended 31 July 2020
Endowment
Income and expenditure account
Revaluation reserve
Total
£'000
£'000
£'000
£'000
41
50,358
84,472
134,871
Income and expenditure surplus/(deficit)
-
1,469
-
1,469
Other comprehensive deficit
-
(17,682)
-
(17,682)
Transfers between revaluation and income and expenditure reserves
-
1,692
(1,692)
-
Total comprehensive income/(deficit) for the year
-
(14,521)
(1,692)
(16,213)
41
35,837
82,780
118,658
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University of Winchester
Integrated Annual Report 2019-20
Balance at 31 July 2019
Balance at 31 July 2020
The accompanying notes form part of these financial statements.
Non-current assets Intangible assets Tangible fixed assets Investment property and other investments
9 10
2020 £'000
2019 £'000
76 209,314 650
240 198,618 645
210,040
199,503
Current assets Stock Trade and other receivables Investments Cash and cash equivalents
11 12 13
36 5,730 16 22,711 28,493
45 5,072 125 15,095 20,337
Less: Creditors: amounts falling due within one year
14
(11,634)
(17,525)
16,859
2,812
226,899
202,315
Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year
15
(66,586)
(45,413)
Pension provisions
16
(41,655)
(22,031)
118,658
134,871
41
41
Unrestricted Reserves Income and expenditure account Revaluation reserve Total Unrestricted Reserves
35,837 82,780 118,617
50,358 84,472 134,830
Total Reserves
118,658
134,871
Total net assets Restricted Reserves Income and expenditure - endowment reserve
University of Winchester
Notes
Integrated Annual Report 2019-20
UNIVERSITY OF WINCHESTER A company limited by guarantee and registered in England and Wales. Registration number: 05969256 Statement of Financial Position at 31 July 2020
75
The financial statements on pages 73 to 93 were approved by the Board of Governors on 2 December 2020 and signed on its behalf by:
………………………………………………………………………………… A C Lovell Chair of Board of Governors The notes on pages 81 to 93 form part of these financial statements.
…………………………………………………………………………… Professor J Carter CBE DL Vice-Chancellor
UNIVERSITY OF WINCHESTER Cash Flow Statement For the year ended 31 July 2020 Notes Cash flow from operating activities Surplus/(Defecit) for the year
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University of Winchester
Integrated Annual Report 2019-20
Adjustment for non-cash items Amortisation Depreciation Impairments Fair value gain on Investment Property Decrease/(Increase) in stock Increase in debtors Increase in creditors Increase in provisions Cashflow from operating activities Adjustment for investing or financing activities Investment income Interest payable Endowment income Gain on sale of fixed assets Capital grant income Net cash inflow from operating activities
9
8 5
Cash flows from investing activities Proceeds from sale of fixed assets Capital grant receipts Investment deposits withdraws Investment income Payments made to acquire intangible assets Payments made to acquire fixed assets Cash flows from financing activities Interest paid Interest element of finance lease payments New loans Repayments of amounts borrowed Endowment income Capital element of finance lease payments Increase/(Decrease) in cash and cash equivalents in the year Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year
The accompanying notes form part of these financial statements.
13 13
31 July 2020 31 July 2019 ÂŁ'000 ÂŁ'000 1,469
(2,892)
164 5,095 (5) 9 (657) 1,463 1,494 9,032
163 5,345 83 (10) (3) (1,804) 375 2,834 4,091
(53) 2,341 (22) (306) 10,992
(164) 2,183 (2) (18) (330) 5,760
22 348 109 56 (20,592) (20,057)
18 538 27,457 201 (228) (29,036) (1,050)
(882) (1,018) 20,000 (1,132) (287) 16,681
(777) (1,044) (1,086) 2 (274) (3,179)
7,616
1,531
15,095 22,711
13,564 15,095
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.
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 cash flow forecasts for a period of 44 months from the date of approval of these financial statements. After reviewing these forecasts, the Board of Governors is of the opinion that, taking account of severe but plausible downsides, including the anticipated impact of COVID-19 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). The Board of Governors has considered the future cash flows of the University in December 2019 when approving the OfS Financial Forecast for submission to the Office for Students. In response to COVID-19 there was a Special Standing Committee meeting on the 4th May 2020 to discuss the University’s financial contingency planning. At the meeting scenario modelling that had been undertaken was presented and reviewed. This modelling was based upon the December 2019 OfS Financial Forecast as its starting point, with the key stress tests under consideration being:
• Reduced tuition fee income • Reduced student retention rate • Loss of accommodation, catering and conference income The Committee also discussed the mitigation actions already implemented by management, including a freeze in staff recruitment of all but essential posts and a pause on expenditure classed as non-essential to the running of the University. The Committee recommended that more work be
undertaken at reducing expenditure for 2020/21, particularly on staff costs, which culminated in a voluntary severance scheme being conducted in July 2020. The 2020/21 Budget, approved by the Board of Governors in July 2020, incorporated lower expectations regarding recruitment and accommodation, catering and conference income, to ensure that the University would remain financially sustainable should these circumstances crystallise. The University has no undrawn lending facilities and the budgeted cash flow does not require any additional facilities within the next 12 months. The budget does not breach any covenant thresholds on our existing facilities with the Triodos Bank and Allied Irish Bank. Having reviewed the scenario modelling performed, and the mitigation actions taken, 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 and therefore have prepared the financial statements on a going concern basis
BASIS OF CONSOLIDATION At 31 July 2020 the University held significant controlling interest in Winchester Business School Limited, Winchester Management School Limited and the University of Winchester Academy Trust due to a majority of the share capital of the entities being held by employees of the University of Winchester. 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 of Winchester
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 (OfS 2019.41), the Terms and conditions of funding for higher education institutions issued by the Office for Students (OfS 2018.15) and the Terms and conditions of Research England Grant.
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BASIS OF PREPARATION
Integrated Annual Report 2019-20
Statement of principal accounting policies
University does not exert significant control or dominant influence over policy decisions.
INCOME RECOGNITION
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University of Winchester
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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.
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 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. 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.
CAPITAL GRANTS 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.
ACCOUNTING FOR RETIREMENT BENEFITS The principal pension schemes for the University’s staff are the Local Government Pension Scheme (LGPS), the Teachers' Pension Scheme (TPS) and the University Superannuation Scheme (USS). The schemes are defined benefit schemes but the TPS and USS schemes are multiemployer schemes where it is not possible to identify the assets of the scheme that are attributable to the University. Accordingly, the TPS and the USS schemes are accounted for on a defined contribution basis and contributions to the schemes 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 balance sheet. A liability is recorded within provisions for any contractual commitment to fund past deficits within the USS scheme.
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.
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 so as 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 straightline basis over the lease term.
TANGIBLE FIXED ASSETS 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. Depreciation and impairment losses are subsequently charged on the revalued amount and subsequent
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 The University has adopted the useful economic life proposed by our quantity surveyor, Jackson Coles LLP, for a new learning and teaching building at the West Downs campus. Accordingly, the maximum useful life of buildings has been increased from 50 to 60 years and plant and machinery from 20 to 25 years. There was no impact on depreciation charges for the year ended 31 July 2020. Future years depreciation charges on the new West Downs building are estimated to be £230k (£130k buildings, £100k plant and machinery) per annum less than the previous maximum useful lives would permit, once the building comes into use in 2020/21. 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.
Equipment Equipment, including computers and software, costing less than de minimus of £5,000 per individual item are recognised as expenditure. All other equipment is capitalised. Capitalised equipment is stated at cost and depreciated over its expected useful life as follows: 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.
IMPAIRMENT 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.
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.
Integrated Annual Report 2019-20
FINANCE LEASES
costs that enhance the asset are capitalised and recognised at cost.
University of Winchester
The actual cost of any enhanced on-going pension to a former member of staff is paid by a 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.
79
ENHANCED PENSIONS
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. 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.
80
University of Winchester
Integrated Annual Report 2019-20
PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS Provisions are recognised in the financial statements when: a. the 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; and c. a reliable estimate can be made of the amount of the obligation. 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. 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. 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.
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.
KEY ESTIMATES AND JUDGEMENTS In preparing these financial statements, management have made the following judgements:
TANGIBLE FIXED ASSETS 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 2020, 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.
LOCAL GOVERNMENT PENSION SCHEME 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.
Notes to accounts 2019 £'000 54,050 3,752 1,782 2,250 61,834
2020 £'000 1,621 862 770 3,253
2019 £'000 1,685 829 730 3,244
2020 £'000 291
2019 £'000 514
2020 £'000 2,308 1,236 63,886 479 1,333 69,242
2019 £'000 2,377 1,381 60,125 402 1,307 65,592
2020 £'000 8,951 157 2,450 11,558
2019 £'000 12,193 220 2,301 14,714
2020 £'000 53 5 53 111
2019 £'000 164 10 53 2 229
Salaries Social security costs Other pension costs Apprenticeship levy Sub-total
2020 £'000 34,089 3,343 7,678 153 45,263
2019 £'000 34,275 3,340 7,969 156 45,740
Restructuring costs Total
594 45,857
1,133 46,873
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
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
University of Winchester
2020 £'000 57,060 3,948 2,078 2,612 65,698
Tuition fees and education contracts
81
Note 1
Integrated Annual Report 2019-20
Notes to the Financial Statements for the year ended 31 July 2020
Notes to the Financial Statements Note 6
Staff costs (continued) The highest paid director is the Vice-Chancellor whose emoluments are:
Basic salary Payments in lieu of pension contributions Pension Contributions Salary sacrifice arrangements Other taxable benefits Non-taxable benefits Total emoluments including pension costs
2020 £ 233,207 48,585 (5,803) 2,574 10,678 289,241
2019 £ 226,855 41,968 (5,671) 2,575 10,435 276,162
The Vice-Chancellor does not benefit from employer pension contributions. Other taxable benefits represents payments made to a private medical health scheme and non-taxable benefits represents payments for life insurance cover. The Vice-Chancellor’s basic salary, expressed as a multiple of all other employees, is 6.1 times the median basic salary of staff (2019 6.2). Using the same methodology, the Vice-Chancellor’s total remuneration is 6.5 times the median total remuneration of staff (2019 6.5).
University of Winchester
Integrated Annual Report 2019-20
The median salary and remuneration calculations for the year ended 31 July 2019 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 Further information and disclosures required by the OfS are included in the Remuneration Committee's Decision on Vice Chancellor's Salary on page 66 of this integrated report. Other higher paid staff: The number of employees with a basic salary exceeding £100,000 per annum, excluding pension contributions, is:
£114,999 £129,999
82
£110,000 to £125,000 to
Average staff numbers by major category : By Headcount Academic Administration By full time equivalent staff (FTE) Academic Administration
2020 Number
2019 Number
1 1
1 1 2
Headcount 393 553 946
Headcount 438 556 994
FTE 328 472 800
FTE 353 474 827
Notes to the Financial Statements Note 6
Staff costs (continued) Severance payments During the year the Institution undertook significant restructuring which resulted in £594k in compensation for loss of office being paid to 32 employees, 23 of these employees were part of a structured Voluntary Severance scheme (2019: £1,133k to 60 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. The number of key management personnel
2020
2019
8
8
2019 £'000 920 69 989
2018 £'000 946 53 999
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
2020 £'000 5,286 1,419 1,735 1,774 1,309 2,436 332 379 11,479 26,149
2019 £'000 5,336 1,254 1,768 2,326 1,294 3,188 310 417 13,133 29,026
2020 £'000
2019 £'000
54 9 23
34 44 22
2020 £'000 Note 7 (b)
Access and participation Access Investment Financial Support Disability Support Research and evaluation
£802k of these costs are already included in the staff costs dislosed in note 6.
329 1,335 603 221 2,488
University of Winchester
Compensation for loss of office payable to key management personnel included in the above is £58k (2019: £80k), payable to one member of staff.
83
Salaries Other pension costs Key management personnel compensation
Integrated Annual Report 2019-20
Staff costs includes compensation paid to key management personnel as follows:
Notes to the Financial Statements Note 7 (b)
Access and participation (continued) The University’s 2019/20 Access and Participation Plan forecast expenditure of approximately £3,348k. However, the total expenditure incurred by the University in connection with access and participation activities was £2,488k in 2019/20, £860k less than the Access and Participation Plan approved with the OfS. The costs reported comprise direct financial support to students plus direct staff costs and direct expenses incurred in respect of our access and participation activities and no allocation or apportionment of overheads has been made. The primary reason for the shortfall in actual expenditure related to the University’s requirement to respond to the Covid-19 pandemic. This led to the University to shut down a significant part of its operations in March 2020, and certain costs that would have been incurred were foregone leading to a shortfall against the planned expenditure. A copy of the University's Access and Participation Plan is available using the link below: https://www.winchester.ac.uk/media/content-assets/documents/University-of-Winchester-2019-20-Access-andParticipation-Plan-(updated-31-07-2018).pdf
Note 8
Interest and other finance costs Interest on bank loans Interest on finance leases Net interest on defined benefit scheme
University of Winchester
Integrated Annual Report 2019-20
Note 9
2020 £'000
2019 £'000
879 1,014 448 2,341
775 1,037 371 2,183
Fixed Assets
Cost and valuation At 1 August 2019 Additions Transfers Impairment Disposals At 31 July 2020 Depreciation At 1 August 2019 Charge for the year Disposals At 31 July 2020 Net book value At 31 July 2020 At 31 July 2019
£'000
Equipment, Furniture and Fittings £'000
Assets in the Course of Construction £'000
£'000
28,061 44 966 29,071
575 114 (80) 609
5,394 193 77 5,664
34,165 15,381 (1,493) 48,053
228,579 15,791 (80) 244,290
18,509 3,681 22,190
7,283 751 8,034
383 88 (80) 391
3,786 575 4,361
-
29,961 5,095 (80) 34,976
138,703
21,037
218
1,303
48,053
209,314
141,875
20,778
192
1,608
34,165
198,618
Freehold Land and Buildings £'000
Leasehold Land and Buildings £'000
160,384 59 450 160,893
Motor Vehicles
Total
84
The net book value of Leasehold Land and Buildings includes an amount of £21,037 (2019: £20,778k) 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
Notes to the Financial Statements 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
2020 £'000 100 100
2019 £'000 100 100
2020 £'000 545 5 550
2019 £'000 535 10 545
650
645
Amounts falling due within one year: Debtors Prepayments and accrued income
2020 £'000
2019 £'000
1,308 4,422 5,730
1,590 3,482 5,072
Trade and other receivables include prepayments and accrued income of £1.7m (2019: £1.7m) due after more than one year.
Note 12
Current Investments Nationwide 95 Day Saver Lloyds 175 Day Account
Note 13
Cash and cash equivalents Cash and cash equivalents
2020 £'000 8 8 16
2019 £'000 118 7 125
2020 £'000 22,711 22,711
2019 £'000 15,095 15,095
University of Winchester
Trade and other receivables
85
Note 11
Integrated Annual Report 2019-20
The investment property fair value gain of £5,000 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 2020. The valuation report was prepared in accordance with the RICS Valuation – Global Standards 2017 - incorporating the International Valuation Standards (“Red Book”) and the UK national supplement effective from 14 July 2019, FRS 102 and the HE SORP 2019.
Notes to the Financial Statements 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
2020 £'000 667 298 784 1,185 1,135 7,257 11 297 11,634
2019 £'000 4,658 286 685 1,448 1,198 8,929 21 300 17,525
Mortgages and unsecured loans Throughout the financial year the University had the following borrowing arrangements in place: 1. A £4.7m loan from Allied Irish Bank, amortising over 25 years from January 1996, at a 6.43% rate of interest, specifically for the purpose of building student accommodation. £185k remains outstanding at 31 July 2020. 2. A £5.9m loan from Allied Irish Bank, amortising over 19 years from March 2002, at a 6.30% rate of interest, specifically for the purpose of renovating a listed teaching facility. £265k remains outstanding as at 31 July 2020.
The Allied Irish Bank loans are at fixed rates which are repayable by instalments in the period to 2031 and are secured on part of the University's freehold property. 4. A £30.0m loan facility from Triodos Bank specifically for the purpose of building the West Downs development has now been fully utilised. £10.0m was drawn down in May 2018 with the loan amortising over 25 years at a 3.09% rate of interest, fixed until 1st June 2028. The remaining £20.0m has been drawn down during the year at a variable rate of 1.6% plus Bank of England Base Rate (minimum 0.5%). Note 15
Creditors : amounts falling due after more than one year
University of Winchester
Mortgages and unsecured loans Obligations under finance lease Other Creditors Funding Council loan Deferred Capital Grants
15 a)
86
Integrated Annual Report 2019-20
3. A £5.0m loan from Allied Irish Bank, amortising over 25 years from August 2006, at an interest rate of 6.25% (£2.7m) and 5.13% (£2.3m), specifically for the purpose of building the University Centre. £3.096m remains outstanding as at 31 July 2020.
15 b)
2020 £'000 32,880 23,756 9,950 66,586
2019 £'000 10,000 24,055 1,481 11 9,866 45,413
2020 £'000 1,274 4,048 27,558 32,880
2019 £'000 999 9,001 10,000
2020 £'000 311 1,014 22,431 23,756
2019 £'000 298 973 22,784 24,055
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 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
Notes to the Financial Statements Note 16
Provisions for liabilities At 31 July 2019 Utilised in year Charge to Income and Expenditure Account At 31 July 2020
LGPS Scheme USS Scheme £'000 £'000 20,560 1,103 19,974 (330) 40,534 773
Enhanced Pensions £'000 368 (20) 348
Total £'000 22,031 (20) 19,644 41,655
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.
2020 £'000
2019 £'000
Payable during the year
4,372
4,187
3,573 8,288 28,249 40,110
2,346 8,071 30,274 40,691
Future minimum lease payments due: Payable not later than 1 year Later than 1 year and not later than 5 years Later than 5 years Total lease payments due Receivable during the year
408
339
Future minimum lease payments receivable
Note 18
Payable not later than 1 year Later than 1 year and not later than 5 years
378 1,148
408 1,257
Later than 5 years Total lease payments receivable
1,526
268 1,933
2020 £'000
2019 £'000
243
15,466
Capital commitments
Commitments contracted for 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" which allowed that settlement of the liability is 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. The University has a 40 year ‘Education Agreement’ with Shoei College in Japan for the provision of a two year certificate for 40 students. When the agreement was put in place in March 1982 Shoei lent the University £151,688 to build a teaching block on the University’s Medecroft site. The loan was secured by a legal charge on the property and the capital was due to be repaid over 40 years effective from 22nd March 1982 at £3,792 per annum. While the education agreement remains in place Shoei waives payments. Termination of the agreement will trigger the University to start annual capital repayments for the balance of the 40 year period; repayments for the period up to termination are written off. The University and Shoei have no plans to terminate the agreement but were either party to do so then the University would be liable for repayments totalling £7,584 through until March 2022.
University of Winchester
Lease obligations
87
Note 17
Integrated Annual Report 2019-20
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 balance sheet date. This provision has been recalculated in accordance guidance issued by the funding bodies. The principal assumptions for this calculation are: 2020 2019 Price inflation 7.03% 7.03%
Notes to the Financial Statements Note 20
Events after the reporting period There are no events that have occurred since 31 July 2020 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.
Universities Superannuation Scheme In September 2020, the Trustee of the USS Pension Scheme (USS) launched a consultation with Universities UK on key aspects of the scheme's 2020 valuation. The scope of this exercise covers a wide range of potential outcomes - reflecting issues still to be resolved on employer support as well as uncertainties for the higher education sector and financial markets in general - but, based on the proposals put forward, the Trustees have indicated that the fund's deficit at 31 March 2020 could range from between £9.8bn and £17.9bn.
88
University of Winchester
Integrated Annual Report 2019-20
At this stage, an outome is far from agreed and the USS Trustee has until 30 June 2021 to conclude the valuation. Teachers’ Pension Scheme The Teachers' Pension Scheme (TPS) is a statutory, unfunded, defined benefit scheme, governed by the Teachers' Pensions Regulations 2010, and the Teachers’ Pension Scheme Regulations 2014. 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 part-time 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 – these contributions, 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, 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 The latest valuation of the Teachers' Pension Scheme has now taken place, in line with directions issued by HM Treasury and using membership data as at 31 March 2016. As a result of this valuation TPS employers have paid and will continue to pay an increased contribution rate of 23.68% from September 2019 (this includes the administration levy of 0.8%). 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/public-news/2019/04/teachers-pensions-valuation-report.aspx
Scheme Changes The arrangements for a reformed Teachers' Pension Scheme, in line with the recommendations made by Lord Hutton, in particular the introduction of a Career Average Revalued Earnings (CARE) scheme, were implemented from 1 April 2015. 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, have rejected the Government's application for permission to appeal the Court of Appeal's ruling. This case will now be referred to an Employment Tribunal for a decision regarding the remedy which will need to be offered to those members of the two schemes who were subject of the age discrimination.
Notes to the Financial Statements Note 21
Defined Benefit Obligations (continued) Scheme Changes (continued) HM Treasury are clear that the ruling has implications for the other public service schemes, including the Teachers' Pension Scheme. Those implications are currently being considered and any impact on scheme costs is expected to be looked at within the next scheme valuation, which is currently scheduled to be based on April 2020 data and implemented in April 2023. The TPS pension costs to the University in the year amounted to £3,410k (2019: £2,570k). 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.
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. The constructive obligation at 31 July 2020, 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 2019/20 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 2020 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.
University of Winchester
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.
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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 2020 were £2,974k of which employer’s contributions totalled £2,279k and employees’ contributions totalled £695k. The agreed contribution rates for future years are 22% for employers and range from 5.5% to 12.5% for employees, depending on salary.
Integrated Annual Report 2019-20
Local Government Pension Scheme
Notes to the Financial Statements Note 21
Defined Benefit Obligations (continued) Local Government Pension Scheme (continued) 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 RPI inflation CPI inflation Rate of increase to pensions in payment Pension accounts revaluation rate Rate of general increase in salaries
31 July 2020
31 July 2019
31 July 2018
31 July 2017
(% pa) 1.4 2.2 2.2 2.2 2.2 3.2
(% pa) 2.2 3.2 2.2 2.2 2.2 3.7
(% pa) 2.8 3.2 2.1 2.1 2.1 3.6
(% pa) 2.6 3.1 2.0 2.0 2.0 3.5
Inflation assumptions
Integrated Annual Report 2019-20
At 31 July 2020, in order to reflect the impact of proposals by the UK Chancellor and the UK Statistics Authority (UKSA) to align RPI with CPIH (a variant of the Consumer Prices Index that includes an estimate of housing costs), the CPI assumption methodology was reassessed. The CPI assumption was 0.4% higher than it would have been under the previous methodology used. Impact of this change is expected to have resulted in a £8.9m increase in the Fund’s liabilities since the prior year end. Mortality assumptions The mortality assumptions are based on the recent actual mortality experience of members within the Fund and allow for expected future mortality improvements. Sample life expectancies at age 65 resulting from these mortality assumptions are shown below. 2020
2019
Retiring today Male Female
23.0 25.5
23.1 25.8
Retiring in 20 years Male Female
24.7 27.2
24.7 27.6
Value at 31 July 2020 55.0% 6.1% 20.8% 1.6% 16.5% 100.0%
Value at 31 July 2019 60.2% 7.2% 20.6% 1.9% 10.1% 100%
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University of Winchester
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: 2020 2019 £'000 £'000 Fair value of plan assets 48,906 44,020 Present value of plan liabilities (89,440) (64,580) Net pensions liability (note 16) (40,534) (20,560)
Notes to the Financial Statements Defined Benefit Obligations (continued) Local Government Pension Scheme (continued) 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 RPI inflation CPI inflation Rate of increase to pensions in payment Pension accounts revaluation rate Rate of general increase in salaries
31 July 2020
31 July 2019
31 July 2018
31 July 2017
(% pa) 1.4 2.2 2.2 2.2 2.2 3.2
(% pa) 2.2 3.2 2.2 2.2 2.2 3.7
(% pa) 2.8 3.2 2.1 2.1 2.1 3.6
(% pa) 2.6 3.1 2.0 2.0 2.0 3.5
Inflation assumptions At 31 July 2020, in order to reflect the impact of proposals by the UK Chancellor and the UK Statistics Authority (UKSA) to align RPI with CPIH (a variant of the Consumer Prices Index that includes an estimate of housing costs), the CPI assumption methodology was reassessed. The CPI assumption was 0.4% higher than it would have been under the previous methodology used. Impact of this change is expected to have resulted in a £8.9m increase in the Fund’s liabilities since the prior year end.
2020
2019
Retiring today Male Female
23.0 25.5
23.1 25.8
Retiring in 20 years Male Female
24.7 27.2
24.7 27.6
Value at 31 July 2020 55.0% 6.1% 20.8% 1.6% 16.5% 100.0%
Value at 31 July 2019 60.2% 7.2% 20.6% 1.9% 10.1% 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: 2020 2019 £'000 £'000 Fair value of plan assets 48,906 44,020 Present value of plan liabilities (89,440) (64,580) Net pensions liability (note 16) (40,534) (20,560)
University of Winchester
The mortality assumptions are based on the recent actual mortality experience of members within the Fund and allow for expected future mortality improvements. Sample life expectancies at age 65 resulting from these mortality assumptions are shown below.
Integrated Annual Report 2019-20
Mortality assumptions
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Note 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.
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University of Winchester
Integrated Annual Report 2019-20
The financial instruments may be analysed as follows:
Financial assets that are debt instruments measured at amortised cost Financial liabilities measured at amortised cost
2020 £'000 24,114 (64,093)
2019 £'000 16,910 (47,461)
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. 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:
Notes to the Financial Statements Related party Transactions (continued)
Hampshire County Council
One of our co-opted governors is employed by the Council
Purchases Sales
76 (183)
2 (18)
Hampshire Hospitals NHS Foundation Trust
Our Deputy Vice-Chancellor acts as a voluntary Chaplain for the trust
Purchases Sales
123 (301)
11 (291)
The Mary Rose Trust
Our Chair of Governors acts as Chair of Trustees for the trust
Purchases
18
2
Ministry of Defence
One of our diocesan governors is employed by the Ministry
Sales
(62)
-
Universities and Colleges Admissions Service (UCAS)
Our Vice-Chancellor acts as a Governor on the agency's Board
Purchases
137
1
Our Chair of Governors acts as a Trustee for the trust
Purchases
18
-
Purchases Sales
344 (129)
-
Winchester Cathedral Trust
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 (2019: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. The total expenses paid to or on behalf of members of the Board of Governors was £873 (2019:£2,480). This represents travel and subsistence expenses incurred in attending Board of Governors meetings, other committee meetings and events undertaken in connection with their official capacity.
Integrated Annual Report 2019-20
(Debtor)/ creditor £'000
Nature of interest
University of Winchester
(Income)/ expenditure £'000
Name of organisation
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Note 23
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, UKPRN 10003614. Registered number: 05969256 (England and Wales)
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University of Winchester
Integrated Annual Report 2019-20
SENIOR OFFICERS AND ADVISORS: Chancellor Alan Titchmarsh Chancellor Emeritus Lady Mary Fagan Vice-Chancellor and Accountable Officer Professor Joy Carter First Deputy Vice-Chancellor Reverend Professor Elizabeth Stuart Chief Operating Officer Gavin Hunter Assistant Vice-Chancellor Sam Jones Director of Finance and Planning Simon Day Clerk to the Board of Governors Stephen Dowell
PRINCIPAL BANKERS
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
LAWYERS
KPMG LLP Gateway House Tollgate Chandler’s Ford Eastleigh SO53 3TG
Blake Morgan New Kings Court Tollgate Chandlers Ford Eastleigh SO53 3LG
@peterlangdownphotography
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University of Winchester
Integrated Annual Report 2019-20
@peterlangdownphotography
