Integrated Annual Report 2017-18 Year ended 31 July 2018
CONTENTS VICE-CHANCELLOR FOREWORD
1
WHY INTEGRATED REPORTING?
2
STRATEGIC REVIEW INCORPORATING THE OPERATIONAL REVIEW
4
ABOUT US
5
OUR VALUES: WHAT WE BELIEVE IN OUR UNIVERSITY AT A GLANCE
7
OUR FACULTIES
8
OUR RESEARCH
8
OUR STAKEHOLDERS
13
OUR STRATEGIC PLAN
14-15
KEY PERFORMANCE INDICATORS
15-17
INTEGRATED REPORTING MODEL
19
IDENTIFYING OUR CAPITAL INPUTS AND OUTPUTS
20
BUSINESS EXCELLENCE AND GROWTH – INVESTING IN THE FUTURE
21-24
TEACHING EXCELLENCE
25
STUDENT EXPERIENCE
25
EXCELLING AT TEACHER TRAINING
26
THRIVING INDIVIDUALS
27
MODERN SLAVERY
28
OUR SUPPLY CHAINS
28
SOCIAL JUSTICE
29-30
ENVIRONMENTAL SUSTAINABILITY
31-32
HIGHLIGHTS FROM OUR FACULTIES
33-36
UNDERSTANDING OUR RISKS
37
PUBLIC BENEFIT
38
CHARITY STATUS AND PUBLIC BENEFIT STATEMENT
38
VALUE FOR MONEY AND PROCUREMENT
2
5-6
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EMPLOYEE INVOLVEMENT
41
EMPLOYEE WELLBEING AND ENGAGEMENT
41
FINANCIAL REVIEW
42
FINANCIAL STRATEGY
43
FINANCIAL ENVIRONMENT
44
FINANCIAL PERFORMANCE
45-48
FUTURE SUSTAINABILITY
49
FINANCIAL KEY PERFORMANCE INDICATORS
50
STATEMENT OF DIRECTORS’ RESPONSIBILITIES IN RESPECT OF THE STRATEGIC 52-54 REPORT, THE DIRECTORS’ REPORT AND THE FINANCIAL STATEMENTS OUR GOVERNORS
56-57
STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL
58
CORPORATE GOVERNANCE
59
LEGAL STATUS
59
RESPONSIBILITIES OF THE BOARD OF GOVERNORS
59-61
MEMBERSHIP AND ATTENDANCE OF COMMITTEE MEETINGS
62
STATEMENT OF INTERNAL CONTROLS
68
GOVERNORS’ LIABILITY ON DISSOLUTION
69
GOING CONCERN
69
INDEPENDENT AUDITOR’S REPORT TO THE BOARD OF GOVERNORS OF THE UNIVERSITY OF WINCHESTER FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2018
70-73
74
STATEMENT OF COMPREHENSIVE INCOME AND EXPENDITURE
75
STATEMENT OF CHANGES IN RESERVES
76
BALANCE SHEET
77
CASH FLOW STATEMENT
78
STATEMENT OF PRINCIPAL ACCOUNTING POLICIES
79-83
NOTES TO ACCOUNTS
84-98
ADMINISTRATIVE INFORMATION
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VICE-CHANCELLOR FOREWORD This has been another big year in the history of our University, marked by us being shortlisted for the Times Higher Education University of the Year. It was a huge achievement for us to make the shortlist and testament to the excellent work of our staff and students in making Winchester an outstanding institution. We have a bold and distinctive vision to provide world-leading, values-driven higher education: this means everything we do is built upon our deep commitment to our values and aims to make a real difference in the world. This is our first annual report taking steps towards aligning with the International Integrated Reporting Framework, which describes our integrated thinking and how we combine our capitals to generate value. We are all excited about this new approach, bringing together the numerous ways we add value to our students and the communities we serve. You will see
Professor
evidence of our impact and the business excellence that underpins it, as
Joy Carter CBE DL
reflected in our healthy financial performance. However, the Higher Education
Vice-Chancellor
sector continues to be operating in a climate of political uncertainty. In February 2018, the Prime Minister announced a major review of post-18 education and funding which is due to conclude in early 2019 and the ongoing negotiations on the exit of the UK from the European Union continue. Against a backdrop of decline across many higher education institutions, we continue to grow our undergraduate student recruitment. The University is in a strong, financially sustainable position, as we enter a new chapter of political and financial uncertainty in the Higher Education sector. We have grown and enhanced our academic portfolio, extended our partnerships in the UK and across the globe, and continue to invest in our students’ experience, academic endeavours and capital infrastructure. In particular, in January 2018 we started work on our largest campus development in the 178 year history of the University. This £48m teaching and learning building in the heart of our West Downs Quarter will be a significant and impressive addition to our campus and will be home to our digital futures courses. We pride ourselves on being a university that goes above and beyond in widening access, and we will continue to invest in widening participation, including £2.9m in non-repayable fellowships, bursaries, scholarships and prizes to support our students. We are sector leading in supporting young people who are traditionally less likely to enter higher education, particularly young carers and children from military families. I hope that as you read this report, you will get a strong sense of our passion for outstanding education and research underpinned by our strongly rooted values and business excellence.
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WHY INTEGRATED REPORTING? ‘The political debate that is taking place on university financing in the UK is focussing on crude economic inputs and outputs such as class contact time and graduate salary levels. It is currently a very narrow discussion that does not attempt to measure the value of a UK university education to the individual and the society in which they live. A degree is not just a route to high paid employment opportunities. Integrated reporting is an opportunity to discuss the wider value of universities using examples of the comprehensive contribution they make beyond the education of undergraduate students. What we learned from the Advance HE Integrated Thinking and Reporting Project is that we were already engaged in integrated thinking but we did not communicate this effectively in our annual report and accounts. Integrated Reporting is therefore our chance to broaden the political debate on university financing to communicate to wider stakeholders the important and broad contribution made by the Higher Education sector’. Professor Neil Marriott, Deputy Vice-Chancellor,
During the year we were pleased to
International Integrated Reporting Framework
collaborate with other Higher Education
have not yet been incorporated. We will
(HE) institutions, the Advance HE Leadership
continue to develop the report over the next
Foundation, British Universities Finance
two years to fully embed the methodology of
Directors Group (BUFDG) and the International
Integrated Reporting and Integrated Thinking.
Integrated Reporting Council (IIRC) on the
This report highlights the resources and inputs
start of our journey into Integrated Reporting.
that contribute to our value creation, as well
The University joined the Leadership
as identifying potential risks and opportunities
Foundation pilot in 2017, supported by the
that could affect our ability to create value over
Funding Councils. The aim of this pilot was to
time. We recognise that our students, staff and
review how integrated thinking and reporting
stakeholders have a significant influence on our
can be embedded in Higher Education in
ability to create value and are essential to our
the same manner it has been adopted by
success.
many other sectors. It more fully reflects the integrated relationships and thinking that
The International Integrated Reporting
drives universities forward and supports
Framework was developed by the IIRC and
both academic excellence and financial
we have used this framework as our basis for
sustainability. We have adopted this advanced
developing our integrated reporting. However,
approach to reporting, to make us think
to embed it within our organisation we have
beyond just our financial value and incorporate
re-assigned the ‘capitals’ (financial, intellectual,
non-financial added value for our students,
human, social and relationship, and natural
staff and stakeholders. This has enabled us
and manufactured) around our values and our
to present a more balanced report of how we
commitment to value creation (see pages 19-20
create value in the short, medium and long
for further details).
term. This is our first report on our integrated report journey and some aspects of the
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MATERIALITY In assessing what should be included in our Integrated Report, we applied the principle of materiality. The materiality determination process for the purpose of preparing and presenting our integrated report involves: • Identifying relevant matters based on their ability to affect value creation and our values, as described earlier under ‘Our Integrated Reporting Model’ section; • Evaluating the importance of relevant matters in terms of their known or potential effect on value creation and/or sustainability; • Prioritising the matters based on their relative importance. This includes matters that have, or may have, an effect on the University’s ability to create value over time. Such matters are determined by considering their effect on the University’s strategy, governance, performance or prospects. Such matters related to value creation are discussed at meetings of those charged with Governance, as outlined under our ‘Statement of Corporate Governance and Internal Control’; • Determining the relevant information to disclose about material matters. This process applies to both positive and negative matters, including risks and opportunities and favourable and unfavourable performance or prospects. It also applies to both financial and non-financial information depending on their relative impacts on ability to create value over time. In considering materiality for our Integrated Report the University considers all known matters at the time of signing the report, such as the political landscape, the student experience, our reputation, our financial sustainability, our environment including the seventeen United Nations Sustainable Development Goals and our values.
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Strategic Review Incorporating the Operational Review
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ABOUT US Since our foundation in 1840, we have been a community committed to making a difference. Through relentless commitment to our values we challenge convention with compassion, invigorate and shake up the world around us and catalyse change. Our students are empowered through the rigorous, liberal education we offer in a supportive and creative environment. They grow as whole, confident and successful individuals committed to lives of meaning and purpose, determined to challenge the status quo. Our research and strategic partnerships focus on making a better, more secure and sustainable world. We are a university community where people are valued as individuals, where the wellbeing of students and staff is paramount, and our pastoral care is exceptional. We are committed to working globally to ensure equality and justice for all. We are proud to be a special kind of university, in everything we do we endeavour to help
OUR VALUES: WHAT WE BELIEVE IN
individuals and communities flourish. By putting our values into action and embedding the Sustainability Development Goals, we are being the difference, helping transform society for the
We are passionate about seeing individuals
common good.
and communities flourish. Our values of Compassion, Individuals Matter and Spirituality shape how we do this and why – we believe
The Sustainable Development Goals
academic freedom leads to big ideas which in
(SDGs) are a collection of 17 global
turn lead to social justice, equality and creativity
goals set by the United Nations
for a better world.
General Assembly in 2015. The SDGs are part of Resolution 70/1 of the
COMPASSION
United Nations General Assembly:
Conscious of the kinship that exists between
a universal call to action to end
all life, by embedding the Sustainable
poverty, protect the planet and
Development Goals across our curriculum
ensure that all people enjoy peace
and business functions, we seek to nurture
and prosperity.
compassion and embody social justice for people, animals and the planet. This is a
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supportive, caring and safe place to work and
believe in. Staff and students are supported
study. Staff and students will be supported
to engage with the big and deep questions of
to flourish, encouraged to help others and
life, to bring about change and really make a
empowered to make a difference in the world.
difference. We seek to challenge and develop
We seek to challenge and nurture in all staff
staff and students’ thinking, enabling them to
and students a love and value for all life and the
develop in wisdom for a fulfilling life as well
planet. Our staff and students are empowered
as the knowledge they need for a successful
to change the world for the better, challenge
career. Our staff and students will have the
convention with compassion and stand up for
resilience and resourcefulness to seize the
what they believe to be true.
opportunities and face the challenges of life.
INDIVIDUALS MATTER
OUR ENVIRONMENT
We are passionate about seeing individuals
The University is operating within a Higher
flourish at the University of Winchester.
Education sector that is facing considerable
The dignity and wellbeing of individuals is
challenges and continued change. The
important as are their opinions and views. We
removal of the cap on the number of students
are committed to working globally to ensure
universities can recruit, coupled with the
equality and justice for all. Everyone is welcome
dramatic decline in the number of 18 years olds
here. Staff and students will learn to value
since 2009 and an increase in the number of
and appreciate others, whoever they are and
Higher Education Providers in the UK, has led
whatever their background. You will be listened
to a heavily competitive environment. Within
to; your opinions count. Together, staff and
this context, the University has continued to
students will be supported and challenged to
remain attractive to prospective students and is
reach their full potential. Our staff and students
steadily growing year on year.
are nurtured to embrace equality, diversity and
The sector also faces uncertainty from the
inclusivity to the full. Staff and students are
outcome of Brexit and the Government’s
supported to fight for integrity and justice in a world of compromises and prejudice.
Review of Post-18 Education and Funding.
SPIRITUALITY
and GuildHE, and works closely with both to
We celebrate our Anglican Christian foundation
cement our understanding of the issues and to
and welcome people of all faiths and none. In a
ensure policy developments represent views
world in which religion is often associated with
from across the whole sector, including the
exclusivity and anti-intellectualism, we seek
University of Winchester. Both Brexit and the
to model ways of being religious which are
Funding Review present potential risk to the
inclusive and intellectually robust.
University, both in terms of student recruitment
The University is a member of Universities UK
and funding for teaching and research. All levels We believe that everyone expresses their
of governance within the University are focused
spirituality through a unique collage of values,
on monitoring their development and planning
disciplines and practices. Working and studying
for what may happen as a result.
at the University of Winchester offers a chance to experience and reflect on the creativity, beauty and compassion in life – together, we aim to explore the mystery of life and grow in wisdom and love. Our passion is to see staff and students grow as a whole person. It is safe to try new things here, to stand up for what you
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OUR UNIVERSITY AT A GLANCE FINANCIAL HIGHLIGHTS Total revenue (£m) 2016-17
75
2017-18
79
Operating surplus (£m) 2016-17
5.2
2017-18
2.0
Capital expenditure (£m) 2016-17
4.7
2017-18
12.1 (157% increase)
STAFF HEADCOUNT Academic staff (headcount) 407
2016-17 2017-18
422
Support staff (headcount) 2016-17
524 546
2017-18
STUDENT NUMBERS Total students (full-time equivalents) 6,250
2016-17 2017-18
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6,373
86%
6%
67%
of students study full-time
are international students
of students are female
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OUR FACULTIES
OUR RESEARCH
We have a wide range of undergraduate and
Our research is driven by the commitment
postgraduate courses delivered across four
to make a difference and our reputation for
faculties, each led by a Dean:
research excellence is growing. We have established four research themes which are
FACULTY OF ARTS:
reflected in Research Centres and projects
encompassing English, creative writing,
across the University:
American studies, performing arts, media
1. Understanding society, culture and the arts
and film.
2. Exploring the past and the world around us FACULTY OF BUSINESS, LAW AND SPORT:
3. Enhancing wellbeing, nurturing the individual
encompassing responsible management and leadership, marketing, event and project
4. Building a sustainable and responsible
management, accounting, finance, economics,
future.
digital futures, law, sport, exercise and health.
We continue to deliver research with impact
FACULTY OF EDUCATION, HEALTH AND SOCIAL CARE:
at regional, national and international levels.
encompassing education studies, liberal arts,
External peers have reviewed our research
teacher development and interprofessional
output prior to the Research Excellence
studies.
Framework (REF) 2021 and the preliminary results indicate a high percentage of work
FACULTY OF HUMANITIES AND SOCIAL SCIENCES:
is recognised internationally, and is classed
encompassing criminology, forensic studies,
grant process enabled a more strategic use
archaeology, anthropology, geography, history,
of funds to maximise the quality of our entry.
politics, animal welfare, psychology, theology,
Our continued progress since the REF 2014 has
religion and philosophy.
strengthened our potential to enter new Units of
as world-leading. A revision of the internal
Assessment in the REF. We were awarded Higher Education Innovation Funding (HEIF) (ÂŁ268,508) which has been used by our Research and Knowledge Exchange (RKE) Centre to significantly develop our knowledge exchange infrastructure, which will be implemented in 2018-19. This will increase the visibility and development of our knowledge exchange activities, which in turn will support our entry into the upcoming Knowledge Exchange Framework (KEF).
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THE £266M ECONOMIC IMPACT
• The University employed 748 full-time equivalent faculty and support staff, approximately 78 per cent of whom live in the region.
A report, launched in June 2018, showed that
• Staff costs amounted to £31.5 million, much of which was spent in the region on groceries, clothing and other household goods and services supporting regional shops and businesses.
the University contributes over £266 million a year to the regional business community. The Economic Value of the University of Winchester shows that more than £203 million a year added income is created by its alumni (the
• As a buyer of good and services, the University spent £26.4 million to support its operations, with expenditure further benefitting many regional suppliers in the region.
impact of the skills acquired by students remaining in the region), £20 million a year by student expenditure, and £42 million a year by university expenditure. The University also
• The net impact of staff and University expenditure in the region (£42.1 million a year) is equivalent to supporting 1,569 average wage jobs.
contributes nearly 10,000 jobs a year into the regional economy. Speaking about the findings in the report,
• Expenditure of the University’s out-of-region students (£20.8 million a year) is equivalent to supporting 774 average wage jobs.
Steve Brine, MP for Winchester and Chandler’s Ford, said, ‘It is very pleasing to see the economic benefits derived from having a
• An estimated 38 per cent of Winchester graduates remain the region and the accumulated impact of the University’s alumni (£203.7 million a year) employed in the regional workforce is equivalent to supporting 7,591 average wage jobs.
major university in Winchester presented in this report. The University has made a huge impact economically, as well as socially and culturally. As a resident, as well as the local MP, I am excited about the opportunities that the University continues to bring to the city and
The research was conducted by Emsi, an economic modelling and analysis consultancy.
look forward to supporting its work.’
OUR CONTRIBUTION TO THE REGIONAL BUSINESS COMMUNITY (PER YEAR)
The CBI’s Sector Development Director, Mr George McFarlane, who spoke at the launch of the report, added: ‘UK universities are a
TOTAL: £266m
key national asset and make a substantial contribution to prosperity through their research, innovation and teaching. As this report highlights, the University of Winchester
Student spending
£20m
University expenditure
£42m
is a major part of the local economy and plays a critical role in supporting regional growth through its expenditure, investment and the skills of its graduates. As we look to develop a modern industrial strategy, universities have an
Alumni
important contribution to make in helping to drive growth across all UK regions and nations.’ Other key facts and figures emerging from The Economic Value of the University of Winchester, based on 2014-15 data analysis are:
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£203m
@stormcloud_arts
@mollyyringwood
@hannahown
@philipstanier
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SOME HIGHLIGHTS FROM THIS YEAR
AUGUST 2017
SEPTEMBER 2017
• Largest number of first year students take up their places at the University.
• Shortlisted for the Times Higher Education University of the Year 2017 award.
• Carole Parkes, Professor of Global Issues and Responsible Management, was made a special advisor to the United Nations for PRME (the Principles for Responsible Management Education).
• We became the first university to develop links with the Nelson Mandela Museum in South Africa. Our newly signed partnership agreement will see us working with the Museum on joint teaching and research activities, study visits and an exchange programme.
DECEMBER 2017
JANUARY 2018
• Professor A.C. Grayling opens new postgraduate study centre.
• Our groundbreaking ceremony took place to mark the first official day of construction of the University’s new landmark development at West Downs.
• The University Christmas Day Café opened for third year running, offering a place for lonely or vulnerable people to have some food and company.
• Winchester awarded Ofsted ‘Outstanding’ for Teacher Training.
APRIL 2018
MAY 2018
• Vice-Chancellor Professor Joy Carter and President of the Student Union Tali Atvars signed a Sustainability Statement to demonstrate the University’s dedication to creating a more environmentally-friendly future.
• Launch of the Medieval History Research Centre. • Our first graduating cohort of BA Hons Musical Theatre students performed their final project at Winchester Royal Theatre.
• We hosted the UN Global Compact Network Sustainable Development Goals Roadshow, an event aimed at showing businesses how they could conduct business more responsibly and make the world a better place.
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OCTOBER 2017
NOVEMBER 2017
• Launch of new Centre for Forensic and Investigative Psychology.
• Launch of Centre for Climate Change Education and Communication.
• Partnered with Compassion in World Farming on the Extinction and Livestock Conference, a major international event held in London.
• Awarded two Green Gown awards for innovative sustainability initiatives – including our Gum-tec coffee cups and a climate change album written and performed by students and staff.
FEBRUARY 2018
MARCH 2018
• We signed a partnership agreement with Hampshire Hospitals Foundation Trust that will see both organisations work together to increase research and education opportunities.
• Mercury-Prize-winning indie rock band alt-J formally opened the University’s new state-of-the-art sound recording studios. • We sealed a partnership deal with the Theatre Royal Winchester.
JUNE 2018
JULY 2018
• The Economic Value of the University of Winchester shows that we contribute over £266 million a year to the regional business community.
• Following us becoming their first UK university partner earlier this year, the University was one of four global partners invited by the Nelson Mandela Museum (based in Qunu, South Africa), to host a conference to mark the 100 year anniversary of Mandela’s birth.
• The University welcomed Dr Abdullah Abdullah, Chief Executive of the Islamic Republic of Afghanistan, who gave a speech to an invited audience of students, staff and members of the local community during a three-day visit to the UK. • We became the first UK university to secure green finance for campus development. We secured a £30m loan from Triodos Bank. Europe’s leading sustainable bank, to fund our new building at West Downs.
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OUR STAKEHOLDERS We have a complex group of stakeholders who are critical to our success. We regularly communicate with these stakeholders to ensure that we meet their requirements. An understanding of our key stakeholders’ perspectives is critical for identifying relevant matters for inclusion in our integrated report. The diagram below identifies some of our partners; however, due to the nature of our organisation, these are continuously changing.
OfS
Ofsted
TRA QAA
Governors
FUNDING BODIES AND REGULATORS
Research councils and funding bodies
UG IT suppliers Marketing and PR
PEOPLE SUPPLIERS
Students
PGR
Parents
PGT
Alumni
Estates suppliers Catering suppliers PROCESSES
CUSTOMERS Conferences
Accommodation providers Business services
LEADERS Trade Unions Partner colleges
SMT
International agencies
Graduate employers
Management structure Student Union Exec
Feeder schools and colleges NUS/Student Union
Environment
SOCIETY COMMUNITY ENVIRONMENT
Conferences/ seminars
Knowledge exchange
Dissemination
Pubic engagement
Public performances
Volunteering Schools-based activities
Charitable sector Hampshire County Council/ Winchester City Council Police NHS
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Public sector
Local residents
Link Gallery Resident meetings
Public lectures
Local Enterprise Partnerships Local businesses Chamber of Commerce
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ARCA
Consultancy
Governors PARTNERS
Sports facilities
INTEGRATED ANNUAL REPORT 2017-18
Inaugural lectures Enterprise lectures
Sports Science
OUR STRATEGIC PLAN
our Institute for Value Studies. Our approach will be distinctive. Our induction, our curriculum,
This sets out who we are and where we are
our approach to teaching and learning, and
going in the context of the big challenges
our relationship with students before they
facing the higher education sector and the
arrive and after they graduate will support and
UK. Beyond that, it is also shaped by the most
challenge them to grow as creative and critical
urgent problems facing humankind as set
thinkers.
out in the UN SDG’s – issues such as social cohesion, climate change, sustainability,
We are in a time of unprecedented geopolitical
population growth and poverty. Throughout
uncertainty as well as changes in higher
our Strategic Plan we ask ourselves: What
education policy. We are very aware of the
are our responsibilities, as a values-driven
challenges of public funding, of demographic
university? How can we maximise the benefits
change, and the increased marketisation of the
of our research for the common good?
university sector driving competition nationally
How well are we equipping our students to
and globally. In response, our strategy is
contribute to society and the economy?
ambitious and infused with the desire to extend our impact. We build on strong foundations
The success and wellbeing of our students
and we are determined to flourish through a
drives everything we do. We value them all and
continuous drive for excellence.
work in partnership with them in creative ways We have three strategic priorities: to Educate,
to shape their education and their future.
Advance Knowledge and Sustain. We have a long history of equipping students for the professions and for public service. Our
EDUCATE • Our educational experience combines subject specialism, Liberal Arts and vocational training with the nurturing of a love and joy in learning.
graduates leave us with the knowledge, skills, experience and drive to succeed as leaders in whichever field they choose to enter. But more
• We seek to offer excellence in teaching and the very best student experience possible, as evidenced and recognised nationally, underpinned by an unremitting focus on the place of values in higher education.
than that, their time at university will have given them the opportunity to challenge themselves, think critically, and engage with the biggest questions facing humanity. We believe that creative and critical thinkers are essential to
• Our students are taught by research active and professionally engaged staff who work with students to create a personalised and transformational learning experience.
any free society. It is our ambition to nurture graduates who will become the conscience of their communities and places of work by
• We seek to ensure that all who can benefit from a Winchester education will have the opportunity to do so, regardless of their background, and that we should do this with particular regard for marginalised groups.
allowing them to grow in knowledge, resilience, humility and wisdom. Our graduates will leave Winchester with a justified confidence in their own abilities and the strength to stand up for what they believe to be true.
• Our courses will be reviewed regularly and vigorously. We will develop new offerings which meet demand from students and employers and which reflect and build upon our values.
How are we to achieve this ambition? We will create employment opportunities for our students: to take part in volunteering;
• Enhanced graduate employability is a vital outcome from all of our courses.
to develop entrepreneurship; to engage in research; and in interdisciplinary study through
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• We take spirituality seriously: as a personal
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bring mutual benefits for communities and for the University.
experience; as a wellspring for social transformation; as a subject for academic study; and as a focus for debate within the University and wider society.
KEY PERFORMANCE INDICATORS
ADVANCE KNOWLEDGE • We are rooted in research and knowledge exchange.
Over the next 10 years our Strategic Plan will
• We will continue to build an ever-stronger research environment and seek further recognition for the excellence and creativity of our research in strategically important areas.
drive our journey towards becoming a university
• Research and professional practice underpin the quality of our teaching and the student experience.
most urgent problems facing humankind.
that is internationally-recognised for the way in which we, and our students and graduates, engage with and respond to the biggest and We will measure our progress on this journey through our Key Performance Indicators (KPIs),
• We value all scholarship that impacts positively on lives beyond the University the creation and exchange of knowledge is essential to a strong economy and society within which the University plays a vital role.
which are linked to our Capital inputs and outputs. Our assessment of progress against our KPIs is based on:
SUSTAIN
Good progess
• Our efforts to reduce carbon emissions
Target/benchmark achieved or on track
has led us to be ranked as one of the top universities for sustainability – our ambition
Acceptable progess
is to become the lowest-carbon university
Further action required
campus in the UK by 2020.
High priority
• Our University has grown significantly in
Requires urgent action
recent years and we have a bold strategic plan to maintain our student numbers and
Financial –> Business Excellence and Growth
continue that growth in both domestic and international markets in the future where
Our Strategic Plan will ensure that the University
possible.
will continue to be financially sustainable.
• Our success is founded on the commitment,
We will continue to innovate to ensure that
professionalism, enthusiasm and talents of
we remain attractive to prospective students,
the individuals who are part of the University
despite an increasing number of alternative
community.
choices. In addition to the Financial KPIs, which are reported in the Financial Review, we will
• Continuous improvement and efficient
measure our progress using the following KPIs:
practices underpin our organisational structures and processes. We will build on our national reputation for organisational
KPI
excellence and continuous improvement. • We will build on our strong reputation in
Undergraduate applications (market share)
delivering high quality values-driven teacher education and in securing a positive impact on young lives. • We offer our intellectual and physical resources to serve the common good and to
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Target / benchmark 0.38%
Status
Full-time Undergraduate Enrolments (market share)
0.58%
Entry standards – Average tariff score FT UG under 21 (league table rank – The Complete University Guide)
Improve ranking
Employability Advisers in all of our Faculties. Research is essential to what we do as a University. Our Strategic Plan will help us to grow our research excellence and ensure that as many academic staff as possible are engaged in Research and Knowledge Exchange (RKE) activities. We will measure our progress using the following KPI: KPI
Intellectual -> Graduate success and research impact
% Full-time academic staff involved in RKE
In addition to the value that they will bring to society more widely, our Strategic Plan will
Target / benchmark
Status
98%
Human -> Thriving Individuals
also increase the number of our graduates who are in employment or further study following
Our Strategic Plan is driven by our desire to see
university. We will measure our progress using
our staff and students flourish. We will continue
the following KPIs, which draw on information
to support and encourage all those with the
from the national Teaching Excellence and
potential to succeed in Higher Education,
Student Outcomes Framework (TEF):
regardless of their background. We will measure our progress using the following KPIs:
KPI
Target / benchmark
TEF metric: All employment or further study of leavers obtaining FT UG qualifications (TEF benchmark)
Meet TEF benchmark
TEF metric: Highly skilled employment or further study Leavers obtaining FT UG qualifications (TEF benchmark)
Meet TEF benchmark
Status KPI
Target / benchmark
Status
Access and Retention Students from low-participation neighbourhoods % (benchmark)
Meet or exceed benchmark (12.3%)
TEF metric: Continuation of fulltime UG entrants % (benchmark)
Meet or exceed benchmark (93.3%)
Social and Relationship -> Social Justice Although the percentages are improving, we are currently slightly below our benchmarks for
Through our Strategic Plan we will continue to
these KPIs. To address this we have established
deliver an excellent student experience and
a new Employability and Further Study Strategy
strong student engagement. We will measure
Group, which is overseeing plans to fully embed
our progress using the following KPIs, which
employability opportunities into the curriculum,
draw on information from the national Teaching
and to provide work or volunteering placements
Excellence and Student Outcomes Framework
for all programmes. We have also appointed
(TEF) and the National Student Survey (NSS):
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KPI
Target / benchmark
Status
Student satisfaction and engagement (from the National Student Survey) TEF metric: NSS % Exceed TEF Agree – The teaching benchmark by on my course (TEF 2% benchmark) TEF metric: NSS % Agree – Assessment and feedback (TEF benchmark)
Exceed TEF benchmark by 2%
TEF metric: NSS %
Exceed TEF
Agree – Academic
benchmark by
support (TEF
2%
benchmark) NSS Overall
Top 25% (above
satisfaction %
34/135)
(ranking)
Natural and manufactured –> Environmental Sustainability Our Strategic Plan sets out our ambition to move from fourth to become the lowest-carbon university campus in the UK by 2020. We will tackle this both operationally, by reducing our own negative impact on the environment, and through education, by including climate change education in all of our programmes. We will measure our progress using the following KPI: KPI
Target / benchmark
Environmental sustainability – Scope 1, 2 and 3 CO2 emissions per m2 (reduction on 2006/07)
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Status
-65% (by 2025)
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INTEGRATED REPORTING MODEL FINANCIAL
INTELLECTUAL
HUMAN
SOCIAL AND RELATIONSHIP
NATURAL AND MANUFACTURED
INPUTS
Student-led Approach
VALUE CREATION
Values in Action
We are a community committed to making passionate about seeing individuals and communities flourish Ethical Resource Management
Outstanding Campus
Teaching and Research Excellence
OUTPUTS
BUSINESS EXCELLENCE AND GROWTH
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GRADUATE SUCCESS AND RESEARCH IMPACT
THRIVING INDIVIDUALS
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SOCIAL JUSTICE
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ENVIRONMENTAL SUSTAINABILITY
IDENTIFYING OUR CAPITAL INPUTS AND OUTPUTS full potential.
We have used the International Integrated Reporting Council’s (IIRC) generic ‘capitals’
Social and Relationship -> Social Justice
to identify the resources and inputs we have with which to create value and ultimately
Our aim is to have the highest levels of student
make a difference. We are committed to
satisfaction across all our courses. We are
using integrated thinking in all of our decision
proud of the positive impact our students
making.
have in the community through the thousands
Financial –> Business Excellence and Growth
of volunteering hours they put in and the
We are acutely aware of the responsibility we
employees. Ultimately, our aim is to nurture
have to those who choose to invest in us, in
our students to thrive in their careers and
particular our students. We are committed to
further study, to become the conscience of
demonstrating to students how their university
their communities and places of work. This
fees contribute to the delivery of an excellent
capital can be shown across the University
student experience. How we use our money
in many ways, including student satisfaction,
matters too. Ethical investment forms an
our community engagement strategy, staff
integral part of our values. We are mindful of
and students volunteering data, our continued
the need to avoid undermining our beliefs and
engagement with our alumni and our
ethos by providing capital to activities that are
Research Excellence Framework (REF) impact
materially inconsistent with our values. Further
statements.
businesses they support as consumers and
analysis of how we strategically invest our
Natural and manufactured –> Environmental
financial capital is outlined within the Financial Review of these statements.
Sustainability
Intellectual -> Graduate success and research
We are widely recognised as one of the leading
impact
universities for sustainability and carbon
Everything we do is about building, sharing and
campus in the sector, our ambition is to become
creating knowledge through excellent teaching
the lowest-carbon university campus in the
and research. Students are taught by staff active
UK by 2020. This commitment extends into
in research and the professions, who work with
the curriculum, with climate change education
them to create a personal and transformative
being rolled out across all our courses. Aligned
learning experience. Throughout the report,
to this capital are measures covering carbon
intellectual capital will encompass areas
emissions, water usage, and amount of waste
including our academic portfolio, academic
produced by the institution.
management. Currently the fourth most efficient
quality awards, innovative learning and teaching opportunities and research and knowledge exchange. Human -> Thriving Individuals The dignity and wellbeing of individuals is important as are their opinions and views. We encourage a positive working environment in which both students and staff can reach their
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BUSINESS EXCELLENCE AND GROWTH – INVESTING IN THE FUTURE
hall; a contemplation space; courtyard garden and library. Many of the facilities will be open for members of the local community to enjoy. The new building boasts cutting-edge sustainability features including:
In January 2017, the University started work on the largest development since its
• Combined heat and power plant
foundation in 1840 of a new learning and
• Heat recovery systems
teaching building at our West Downs Quarter
• Solar photovoltaic panels
on Romsey Road, Winchester. The project also
• Rainwater harvesting
provides a new gateway, linking the University
• Green roof
and the city, creating an impressive addition
• Bat and bird boxes to promote biodiversity
to Winchester’s civic buildings on the main
• And the electricity used to power the building will be bought from renewable sources.
route into the city centre from the South West, where it will be visible from Romsey Road.
Once complete, the building promises to
The £48m new development, which is being
achieve a BREEAM ‘Excellent’ rating, with
built on undeveloped land within the West
‘Outstanding’ credits for energy, contributing to
Downs site next to our grade-II-listed West
the University’s ambition to become the most
Downs Centre, will provide first-class teaching
sustainable higher education institution in the
and learning facilities. It will be home to the
UK.
University’s computer and digital-related
Consideration was also given to the United
degree courses.
Nations seventeen sustainable development
Designed by award-winning Winchester-based
goals, not only climate and environmental goals
architects, Design Engine, the building will
but also in other areas such as ensuring that the
completed in autumn 2019. The contemporary
construction contractors are remunerated at or
design features an art gallery; a 250-seat
above the Governments National Living Wage.
auditorium for performances; a café and food
The West Downs Development: view from Romsey Road (CGI courtesy of Design Engine Architects)
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.
SUSTAINABLE DEVELOPMENT
ENCOURAGING BIODIVERSITY We’re hoping there’ll be lots of wildlife attracted by a wildflower grassland, open water areas,
EXCELLENT SUSTAINABILITY RATING
and bird and bat boxes that have been planned
Plans for the West Downs development have
in conjunction with the local wildlife trust.
been rated ‘Excellent’ by the recognised assessment method, BREEAM, which assesses
SUSTAINABLE TRANSPORT
the sustainability of buildings.
We’re making it easier for staff, students and visitors to use sustainable transport with
GREEN ROOF
covered cycle areas, showers, and a nearby bus
A 300m2 wildflower roof is planned for the top
stop – while reducing parking spaces.
of the drum shaped auditorium, with native plants that will be beautiful to look at as well as
BUILDING MATERIALS
environmentally friendly.
Many building materials have been carefully selected with reference to the BRE ‘Green
RAINWATER HARVESTING
Guide’. Materials have also been chosen for
Water will be recycled from the Learning
their longevity as well as costs.
Hall roofs to provide flushing water as well as CONSTRUCTION WASTE
irrigation for the trees and plants.
We’re aiming for 90 per cent of the construction SOLAR POWER
waste to avoid going to landfill. Some
Photovoltaic panels will help power the
excavated chalk will be re-used at other
building, making the most of those sunny days
local building sites.
– while still working on the slightly duller ones. LIMITING NOISE ENERGY EFFICIENT
A noise impact assessment has been carried
The building will be thermally efficient with
out and we have put measures in place to limit
mechanical ventilation and heat recovery
noise pollution.
systems to help minimise the amount of energy that can escape to the outside.
The West Downs Development: the main entrance and the 250-seat Drum Auditorium (CGI courtesy of Design Engine Architects)
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FUNDING In June 2018, the University became the first UK university to secure green finance for campus development. The University secured a £30m loan from Triodos Bank, Europe’s leading sustainable bank, ensuring the development will be completed for the 2019-2020 academic year. Professor Joy Carter CBE DL, Vice-Chancellor of the University of Winchester said:
‘We think it’s incredibly important that higher education institutions take social responsibility seriously. That’s why we put our ambition to be the most sustainable university in the UK at the centre of all the decisions we make. It is reflected in everything we do from the courses we offer, to the business decisions we make. This project – the most ambitious in our history – typifies our commitment to this cause and is made even better by receiving funding from such a like-minded and values-driven bank.’
The West Downs Development: architectural model courtesy of Design Engine Architects The West Downs Development: artistic impression of the new Digital Futures breakout space 23
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TEACHING EXCELLENCE
Engagement with students was central to the review process. Students were fully involved
We have been awarded Silver in the Teaching
in the preparations for the review visit. The
Excellence Framework (TEF). This result
Student Union wrote a submission detailing the
reflects the high quality of our teaching and
experience of being a student at the University
the tireless commitment and hard work of
for the reviewers to read before they visited.
all staff to teaching excellence. We have
Following the review, student representatives
one Principal Fellow, 27 Senior Fellows, 103
were involved in drafting the action plan
Fellows, and two Associate Fellows of the
responding to the report. During their review
Higher Education Academy (now part of
visit, the QAA reviewers also met with a wide
Advance HE) amongst our full-time staff.
selection of current students and recent graduates. A student from another university was on the QAA review panel. The QAA review commended the enhancement of student learning opportunities. The following features of good practice were identified: • The extensive range of volunteering opportunities available to students, which enhance employability skills and career prospects
The TEF Panel considered the University‘s submission in relation to the TEF criteria and its judgement reflects, in particular, evidence of:
• The widespread opportunities for students to engage in decision making through the Student Academic Council
• Appropriate contact hours, personalised learning through tutorials and buddy schemes that provide high levels of engagement, and commitment to learning and study from students
• The strength of partnerships between staff and students within the Student Fellows Scheme and its effective contribution to enhancing the wider student experience
• An institutional culture that facilitates excellent teaching through professional development schemes, teaching awards, and promotion schemes
• The wide engagement of students and staff in the University’s structured and values-driven approach to the enhancement of students’ learning opportunities
• An institutional approach to developing high quality physical and digital resources, which together with student-based research projects aid and enhance learning and develop study and research skills
STUDENT EXPERIENCE
• Course design and assessment practices that provide sufficient stretch to ensure most students make progress, and acquire knowledge, skills and understanding that are valued by employers, by working closely with industrial partners in course development and approval.
Embedded at the heart of our University
Our teaching provision has been quality assured
nationally from final year students by the
by the Quality Assurance Agency (QAA), and
NSS. The survey was introduced in 2005 and
our commitment to the enhancement of our
is implemented between January and March
teaching has been commended.
each year. In 2017-18, we had a completion
is an ongoing commitment to listen to our student body and respond to their needs in order to provide the best possible student experience. The National Student Survey (NSS) is a helpful lens through which to consider student satisfaction. This feedback is gathered
rate of 75%, which is 5% higher than the sector
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EXCELLING AT TEACHER TRAINING
average. We rank consistently high for student satisfaction, and in 2018, we achieved 84% for overall student satisfaction. The University is very proud to have been ranked in the top 20
Our Initial Teacher Education (ITE) programmes
UK universities for teaching quality, with 87%
were recognised as ‘Outstanding’ by Ofsted in
of our students saying they were satisfied with
2017-18, confirming our position as one of the
the teaching on their course. This is a rise of 26
best providers of teacher education in the
places from the previous year. We are in the
country. The latest report rates Winchester as
top quartile of UK universities for ‘academic
a provider of ‘outstanding’ teacher training in
support with 82% of students highlighting they
England for its provision of both primary and
were happy with the services provided.
secondary ITE.
We are continually looking at ways to improve our students’ experience and in 2017/18 the NSS Strategy Group embarked on an extensive enhancement programme to improve student satisfaction. We focused on three TEF-relevant measures – teaching on my course, assessment and feedback, and academic support. These efforts are reflected in greater student
Our primary teacher training has been rated
satisfaction.
outstanding since 2010. However, this is the first time our secondary teacher training has also
The following courses scored 100% for overall
received the highest accolade. As a values-
student satisfaction in 2017-18:
driven institution, we are especially pleased that Ofsted highlighted that: “respecting values
• Education Studies
– including the promotion of equality and
• Education Studies (Early Childhood)
elimination of discrimination – are enshrined in
• English Language Studies
the University’s vision for teaching training and
• History and the Medieval World
embedded throughout our programmes”.
• Sports Coaching
Our Ofsted report highlighted that we produce “highly professional, confident, enthusiastic
We achieved
teachers who are welcomed into the profession and make a strong contribution from the start of their careers”. The report goes on to highlight that trainee teachers demonstrate exceptionally high levels of personal and professional conduct and have demanding expectations of themselves and of their pupils’ learning and behaviour. The inspectors also praise our staff stating that they are “passionate and enthusiastic” leaders and managers who actively pursue excellence and seek to improve training provision and outcomes. Currently we work in partnership with almost 400 schools to provide excellent work-based placements for our trainee teachers.
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THRIVING INDIVIDUALS
racial, ability and sexual orientation experiences and representations. As an employer and as a service provider, the University continually
INDIVIDUALS MATTER
monitors and updates its policies, processes
“Staff and students will learn to value and appreciate others, whoever they are and whatever their background. Together, we will be supported and challenged to reach our full potential.”
and public sector duties to ensure they are compliant with the protections and obligations found in the Equality Act 2010. This ensures that we have the structures in place to allow us to pursue our equality, diversity and inclusion agenda. The wellbeing of staff and students is an
We are committed to being a university
important factor and support is offered through
community where all individuals matter, where
our HR and Student Services Departments,
wellbeing is paramount and pastoral care
with occupational health and mental health
is of the highest quality. A place driven by
support. Following staff feedback, the University
compassion, where people, the planet, and all
has made significant changes to its grading
living things are held in the highest regard.
structure to facilitate greater salary progression opportunities.
We are proud to be one of the minority of UK organisations accredited as a Living Wage
We recognise the importance of health and
employer. We have a number of formal
safety in all our undertakings. We rely upon the
recognition schemes in place, including the
initiative, teamwork and active participation of
Chancellor’s Award, Values Award and the
management and workforce to maintain safe
Leadership Award, which are presented to staff
working practices and procedures in order to
at our graduation events.
fulfil our legal obligations under the Health and Safety at Work Act 1974, the Management
The Senior Management Team (SMT) have
of Health and Safety at Work Regulations
an open door policy, with staff encouraged
1999 and all other relevant health and safety
to interact and communicate with senior
legislation in force at any time. In addition to
managers. Our Vice-Chancellor holds regular
fulfilling its legal obligations, the aim of the
open meetings and visits departments and
University is to achieve best health and safety
faculties to help facilitate a two-way flow of
practice in all that we do.
communication.
We continually review health and safety
We actively engage with staff in terms of
provision to ensure the safety of all users of
inclusivity, from the introduction of gender
our facilities and introduce new systems or
neutral toilet facilities to being a Stonewall
upgrades as required. Our Health and Safety
Champion in Higher Education.
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Policy has been developed to ensure the health
As a values-led institution, we delight in
and safety of all employees, students, visitors,
diversity and strive continually to ensure a
other employers and their employees and all
safe and supportive working environment
others who may be affected by activities on
for all staff and students. We are committed
its premises. However, a policy can achieve
to ensuring that the learning environment of
nothing on its own: it is what people do in their
the University reflects a diverse student and
everyday working life that counts. To help
staff body and also reflects a wider learning
achieve that, the Policy establishes a range of
perspective, inclusive of varied gender, cultural,
necessary procedures and practices.
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The safety and security of our students is
not knowingly invest directly or indirectly in
paramount and our 24-hour Site Steward Team
organisations that breach human or animal
provide security, emergency call-out and
rights or that are in breach of the Modern
pastoral care amongst other duties. Our Police
Slavery Act 2015.
liaison officer is also on hand to provide advice
Our Modern Slavery Statement is published on
and support to students and staff.
our website and reviewed on an annual basis. It can be found at:
MODERN SLAVERY
www.winchester.ac.uk/media/ Modern-Slavery-Statement-17-18.pdf
Our Modern Slavery Statement is designed to satisfy the requirements of Part 6 Section 54 of
OUR SUPPLY CHAINS
the Modern Slavery Act 2015. The University’s Financial Regulations, Procurement Policy and
The University’s supply chains predominantly
Procedures and Ethical Investment Policy state our commitments to the highest standards
fall within the following categories:
of ethical conduct in all our activities, along with making continuous improvements in this
• Estates and facilities management (works, services and goods)
area. The University does not engage in, or
• ICT equipment and services
condone, the practices of human trafficking,
• Professional services
slavery or forced labour.
• Teaching materials
We are committed to improving our business
We are a member of the Southern Universities
practices to combat modern slavery and
Purchasing Consortium (SUPC) which has also
human trafficking and to ensure that we are not
published its own Modern Slavery Statement.
complicit in any human rights violations. We
We channel in excess of 30% of the value
are committed to zero tolerance of slavery and
of our addressable spend through SUPC
human trafficking or child labour practices.
and other agreements arranged by higher
We mitigate the risk of modern slavery
education and public sector purchasing
occurring in our workforce by ensuring that
consortia or frameworks. The particular
directly employed staff are recruited by
business and supply chains which may pose
following robust HR recruitment policies.
particular risks in terms of slavery are in IT
There is a whistleblowing policy in place for
and AV equipment, construction and uniform/
members of staff to raise any concerns about
clothing supplies.
wrongdoing by the University. Staff employed
Our campus services are almost entirely
on a temporary staff basis via agencies are only
in-sourced and the University has made a
recruited through established sources who
commitment to honouring the Living Wage for
can provide assurance that they comply fully
all our employees, full-time or fractional.
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 our commitment to ensuring that our investments are not complicit in any human rights violations, in so far as possible. To this extent the University does
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SOCIAL JUSTICE SECTOR-LEADING IN WIDENING PARTICIPATION (WP) Our results (2017/18 )
Better than national performance
WP Category
Access
Success
Progession
UK first degree students
Recruitment
Non-completion (Yr 1)
Attainment (1st or 2:1)
In employment/ study
Male
1,918 (33.7%)
43 (6.3%)
392 (71.1%)
332 (87.1%)
Low Participation Neighbourhood
1,653 (29.0%)
51 (8.6%)
355 (76.3%)
338 (90.9%)
Disability
1,383 (24.3%)
23 (5.6%)
312 (72.7%)
275 (87.3%)
Black, Asian, Minority Ethnic
599 (9.8%)
20 (8.7%)
92 (57.9%)
82 (88.2%)
Mature
755 (13.3%)
19 (7.2%)
199 (82.6%)
141 (90.8%)
The Access and Outreach team launched a new
Access and Outreach
UWin Aspire widening participation programme
In 2017/18, there were over 4,790 engagements
for local primary and secondary schools in 2018.
with young people, including 2,480 primary school children and 2,219 secondary school
We were one of the first universities to offer
students. Of those secondary school
financial support for students seeking asylum.
students attending on-campus events, 88%
Our Sanctuary Award waives the tuition fee
were identified as coming from a Widening
and we now offer a bursary of ÂŁ3,000 per year
Participation (WP) background.
to support the cost of studying for up to five new students each year. We are pleased to
Over the last ten years, 76% of the tracked
report that so far 18 students from 11 countries
participants who were classified in the lowest
have received the Awards. Thirteen will have
social groups (NS-SEC groups 4-8) on entry
graduated by the end of 2018. We are known
to HE, moved into the higher socio-economic
as a pioneer university in this field, frequently
groups 1-3 after leaving HE. The average young
providing workshops and presentations to other
participation rate of Winchester’s tracked cohort
universities and have also contributed to the
from low-participation neighbourhoods was
development of resources which enable them
33% compared to 25% nationally and 20.6%
to learn how to set up and administer such
locally (Hampshire rate in 2014/15).
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Worse than national performance
UNIVERSITY OF WINCHESTER
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Military service children and families The Office for Students (OfS) credited the University for its role in pioneering research and collaborative practice that is driving this new emerging agenda. The Service Children’s Progression (SCiP) Alliance have secured over £65,000 to undertake a collaborative project with National Collaborative Outreach Projects across England to develop an organisational framework, professional development and resources for school staff supporting children from military services. Supporting at-risk academics. We are a member of the Council for At-Risk Academics (CARA). We seek to support academics from abroad who are in immediate danger and those who have been forced into exile. We offer solidarity, support to reach a place where they can work in safety and financial and practical help. One such academic joined our staff in the summer of 2018. Outreach activities We are an exemplar for supporting young adult carers through university and host the National (NNECL). NNECL was instrumental in lobbying for the inclusion of student carers in access and participation agreements.
@philipstanier
Network for the Education of Care Leavers
We offer a Spring School break for 14-19-year olds. This year the session included a CSIthemed day of activities, looking at forensics, policing, criminology and psychology, with students and lecturers attending a murder mystery evening where participants had to put their investigative skills to the test. Participants also took part in career-based taster sessions. During the visit, they found out more about careers and apprenticeships in outdoor education, whilst developing their team working, communication and leadership skills in a number of team challenges.
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ENVIRONMENTAL SUSTAINABILITY
of sales annually. The introduction of a 25p
We are one of the lowest carbon university
had a dramatic effect, resulting in over 60,000
campuses in the country: since 2008, we have
fewer disposable cups being used since its
reduced our emissions by 45.53 per cent, the
introduction. Sales of drinks in reusable cups
fifth highest reduction in the sector. None
have leapt to an average of 30% as more people
of our waste goes to landfill: any waste that
now bring a reusable mug to avoid paying the
is not recyclable is sent to an energy from
surcharge.
surcharge in November 2016 on all hot and cold drinks purchased in a disposable cup has
waste facility, food waste is sent for anaerobic digestion and waste cooking oil is turned into
The success of the coffee cup initiative has
bio-diesel.
attracted global media attention, including being featured in the prestigious BBC World
Staff and students have established their own
Service programme ‘World Hacks’ – evidence
definition of sustainability for the University in a
that we are world leading in this area. We
joint statement signed by the Vice-Chancellor
have demonstrated that a charge rather than
and the Student Union President in April 2018:
a discount has the most meaningful effect on consumer behaviour, something we have advocated to UK Government. We have been
“To us, sustainability means living in harmony, acting with kindness, and caring for all living things, now and for future generations’’.
fortunate to win three national awards: a Green Gown Award (Food & Drink category), Public Sector Waste Management Initiative at the Awards for Excellence in Waste Management, and Public Sector Campaign of the Year at the
Our recycling rate was 64% in 2016/17, up from
National Recycling Awards. In 2018 we switched
14% in 2009. We achieved zero waste to landfill
from plastic straws to paper straws and we will
in 2013. Any waste that is not recyclable is sent
be introducing a branded reusable water bottle,
to an energy from waste facility and food waste
new drinking fountains and bottle filling stations
is sent for anaerobic digestion.
on campus.
We also climbed 43 places in the 2017 People
SALES OF DRINKS By cup type
and Planet University Green League. Now placed 32nd out of 154 universities, we scored
2015/16
highly for ethical investment, education for
Reusable: 3%
sustainable development and sustainability staffing.
Disposable
CASE STUDY: UNIVERSITY OF WINCHESTER COFFEE CUP INITIATIVE We’ve tackled the use of single-use disposable cups on campus by introducing a bold new
2016/17
pricing structure on takeaway drinks, combined Reusable: 30%
with a giveaway of 6,500 reusable Gum-tec Disposable
mugs to students and staff. For a number of years, we had offered a 25p discount on any drink purchased at our cafés in a reusable cup but this incentive only accounted for 3%
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HIGHLIGHTS FROM OUR FACULTIES
works with performers with learning disabilities
FACULTY OF ARTS
of Arts colleagues. Looking forward, the Faculty
– has seen the Theatre team move its HQ into the University to work closely alongside Faculty is developing public engagement activities for
Thriving Individuals
staff and students. The Faculty will pilot monthly
Professor Marcus Leaning was awarded a
term-time open events (pub talks) to aim at 100+
National Teaching Fellowship, in recognition of
footfall engagement during 2018-19, and will
his outstanding impact on student outcomes
continue to develop cooperative projects with
and the teaching profession in HE. This award
Theatre Royal Winchester and other cultural
particularly concentrated on his work on issues
industry partners.
faced by neuro-diverse students – specifically those with dyslexia and dyspraxia. Marcus has
FACULTY OF EDUCATION, HEALTH AND SOCIAL CARE
also been awarded a Visiting Professorship in Information Literacy and Inter-culturalism at the
Graduate success and research impact
University of Costa Rica.
In September 2017 the Centre for Research into
The new volume of Arthur Conan Doyle’s The
Teaching and Teacher Education convened
Adventures of the Creeping Man (2017, WUP),
the symposium Bringing teaching to research
edited by Professor Neil McCaw, has been
and research into teaching: a symposium on
reviewed in the Times Literary Supplement.
learning in Higher Education. This explored the
Published in 1927, the Sherlock Holmes story
relationship between research and teaching, the
was part of the final collection of detective
ways we bring research into our teaching, and
stories, The Case-Book of Sherlock Holmes.
how teaching enhances our research. Staff from
The volume features the facsimile handwritten
the Department of Education Studies and Liberal
manuscript, a transcribed, annotated version
Arts hosted two international conferences. The
of the story and an introductory essay that
Philosophy of Education Research Centre co-
examines the critical history of the tale and
hosted the International Conference on Critical
the details of the manuscript. Looking forward,
Pedagogies and Philosophies of Education
the Faculty is establishing a staff-wellbeing
with the Philosophy of Education Society of
committee to develop new initaitves within the
Great Britain, bringing together international
Faculty.
scholars to consider contemporary debates across educational theory and practice. Liberal
Social Justice
Arts staff co-hosted with the Association of Core
The Faculty is forging new strategic cultural
Texts and Courses the European Liberal Arts
partnerships on behalf of the University with
Education: renewal and reformation Conference.
key arts organisations in the region to benefit
Both conferences cemented the reputation
students and art lovers and audiences in
of the Department as a significant leader in
Winchester and more widely in Hampshire, with
international debates about the purpose and
the University cooperating across a range of
character of education, and the ways in which
artistic and academic areas. The University has
to achieve high quality educational provision
signed strategic partnership deals with the Live
that enables each individual to flourish, while
Theatre Winchester Trust – which incorporates
acknowledging its social responsibilities.
the Hat Fair and the Theatre Royal Winchester
Dr Louise Pagden, Dr Vicky Randall and Dr Mary
– Winchester Film Festival, Winchester Poetry
Scanlon launched Winchester’s regional hub
Festival and The Point, Eastleigh. A five-year
for the Chartered College of Teachers, which
residency with Blue Apple Theatre – which
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is the new professional body for the teaching
local schools and the Walter Sisulu University.
profession. It aims to support teachers in sharing
Two Film Studies students are producing a
practice and engaging with research evidence
documentary of the visit. In summer 2018, we
to enhance teaching and learning for children.
hosted one of four high-profile celebrations
Looking forward, we are launching a new
around the world to mark the 100-year
research centre for Forced Migration, and are
anniversary of Mandela’s birth. Freedom in
hosting the Boundary Crossings International
a Fractured World: Sustaining the Legacy of
Conference in 2018.
Nelson Mandela formed a quartet of major international conferences taking place in the UK,
Thriving Individuals
USA, Kenya and South Africa. It explored how his
Professor Stephanie Spencer was confirmed
commitment to, and understanding of, freedom
President of the History of Education UK Society
might help us to navigate our way through our
at its 50th anniversary conference in Winchester.
current challenging times.
Scholars came from across the world to speak on the subject of ‘Celebration, Commemoration
FACULTY OF BUSINESS LAW AND SPORT
and Collaboration: milestones in the history of education’. We held our second Early Career
Business Excellence and Growth
Teacher conference for Primary and Secondary
Following the University’s successful bid
colleagues who are in their first three years of
for £250,000 of funding from the Degree
teaching. Over 75 delegates attended, of which
Apprenticeship Development Fund, the
over half were alumni. Professor of Learning and
Centre for Women in Digital Enterprise has
Director of the Centre for Real-World Learning
been launched. The Centre is targeted at
(CRL) Professor Bill Lucas was appointed by the
women entrepreneurs and is based on social
OECD as co-chair of the strategic advisory group
mobility and the concept of inclusive growth.
for the 2021 PISA test of Creative Thinking which
This ensures opportunities for all sections of
will draw on the work of the CRL.
the population, with a special emphasis on achieving gender equality which has a positive
Social Justice
impact on society as a whole and, in particular,
The University and the Nelson Mandela
economic growth. The project has supported
Museum in South Africa signed a partnership
100 women to set up and grow their businesses.
agreement which will see the two institutions collaborate on joint teaching and research
Graduate Success and Research Impact
activities, study visits and launch an exchange
The University has recently launched two new
programme. We are the first university in the
research centres:
UK to establish a link with the Museum and the
The Centre for Climate Change Education and
partnership, which highlights the shared values
Communication, led by Dr Tammi Sinha, aims
of both organisations, will boost our research
to explore how higher education can and will,
and teaching activities and foster international
have a positive impact for climate action through
academic cooperation.
multi-disciplinary research. Focusing on the
In April, Matt Lowden, Senior Lecturer in the
UN Sustainable Development Goals 13 and 4
Faculty of Education, Health and Social Care,
(Climate Action and Quality Education), it will
who is leading on the partnership, and Miriam
act as a hub and resource for all Faculties at the
Walker, Senior Lecturer in the Department of
University and work closely with Winchester
Teacher Development, led the inaugural visit
Action on Climate Change (WinACC) amongst
by a group of undergraduate trainee teachers
others.
to the Nelson Mandela Museum in Qunu SA,
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34
The Centre for Parliament and Public Law,
establishment of the Hampshire Collaboration
headed by Dr Craig Prescott, aims to further
for Health Research and Education, in which
the existing strengths in Public Law that exist
both institutions are equal partners. The
within the University’s Law Department, with a
collaboration aims to increase research
focus on Parliament. The Centre will consider
and education opportunities for University
the whole range of constitutional and public law
academic departments and hospital staff. The
issues, including parliamentary procedure and
collaboration recently secured its first Higher
reform - for example English Votes for English
Education Innovation Funding (HEIF) grant,
Laws - human rights, the principles of judicial
winning £55,000 for a project entitled ‘A Digital
review, devolution and local government
Infrastructure for Hampshire Health’.
and the monarchy. We are looking forward
Environmental Sustainability
to launching the Centre for Women in Digital Enterprise.
The University has signed up to the Principles
Research by Marion Oswald, Head of the
(PRME), a United Nations (UN) initiative which
University’s Centre for Information Rights, has
includes over 700 institutions worldwide. As
fed directly into the Science and Technology
one of 38 UN Global PRME Champions, we
Select Committee inquiry into algorithmic
are tasked with undertaking game changing
decision-making. Conducted jointly with
projects that respond to systemic challenges
Sheena Urwin, Head of Criminal Justice,
faced by the PRME community, as well as to key
Durham Constabulary, the research explores
issues identified by the UN and the UN Global
the use of algorithmic tools to improve police
Compact. PRME seeks to establish a process of
force decision-making and proposes ALGO-
continuous improvement among management
CARE, an ethical framework of key practical
education institutions in order to develop a
and legal concerns that should be considered
new generation of business leaders. In 2017,
in relation to the use of algorithmic risk
Carole Parkes, Professor of Management and
assessment tools by the police.
Dr Roz Sunley, Senior Lecturer in Business
for Responsible Management Education
Management, led the opening plenary of the
Thriving Individuals
PRME and United Nations Global Compact
Senior Lecturer Emma Nottingham was invited
Global Forum for Responsible Management
to speak on a considerable number of radio
Education – 10 Years of PRME conference.
programmes during the Alfie Evans court action
Professor Parkes was formally recognised by
to comment on the legal proceedings and
the United Nations as a Special Advisor to the
issues that the case raised around children’s
UN for the PRME initiative.
privacy. This included BBC Radio Sheffield on how the campaign has made him a part of
FACULTY OF HUMANITIES AND SOCIAL SCIENCES
‘Generation Tagged’. She also appeared on BBC2’s Victoria Derbyshire show.
35
Educate and Advance Knowledge
Social Justice
In October 2017, we launched a new research
In February 2018 the University and Hampshire
hub, the Centre for Forensic and Investigative
Hospitals NHS Foundation Trust (HHFT) signed
Psychology. Headed by Director Dr Wendy
a partnership agreement that will see the two
Kneller, Senior Lecturer in Psychology, the
organisations collaborate on research and
Centre brings together a wide variety of
education activities. The agreement formalises
academic expertise in forensic practice in the
the partnership between HHFT and the
legal and criminal justice system, including
University which began in April 2013 with the
eyewitness identification, interviewing
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witnesses and detecting deception in
is forming part of key research around the role
interviews.
Archaeology can play in the recovery process for veterans.
Thriving Individuals Maria Uther, Visiting Professor of Cognitive
Dr Ulrike Ziemer, Senior Lecturer and
Psychology, received a Nokia Foundation
Programme Leader for Sociology in the
Award at a ceremony in Helsinki. Maria received
Department of Politics and Society, was
a grant to undertake research with Cicero
awarded a two-month Visiting Research
Learning, based at the University of Helsinki.
Fellowship at the University of Helsinki’s
Her new research in Finland builds on the
Aleksanteri Institute. Looking forward, we
‘Say it Again Kid’ project ,which investigated
are supporting all full-time academic staff to
the perception of sound in children who were
become FHEAs by 2019, and we are developing
learning a language using mobile devices. It will
partnerships that enhance the student
look at adult perceptions of sound in learning
experience with external bodies.
apps on mobile devices to see if age, language background or device type affects perception of sound quality. Dr Timothy Secret, Senior Lecturer in Philosophy, chaired a panel discussion at Tate Britain. Focusing on artistic expression and creative experimentation in the years immediately after 1918. Dr Secret, who has been awarded the title New Generation Thinker by the BBC and the Arts and Humanities Research Council, was recently also part of the discussion panel at Tate Britain for What Makes Us Human. The event explored the concept of the gaze within the visual arts. The Archaeology programme team have developed strong links with the Jon Egging Trust. Fl Lt Jon Egging had spent a season with the Red Arrows when, during the Bournemouth Airshow in 2011, he tragically lost his life. His widow, Dr Emma Egging, established a Trust in his name to help support children with barriers to learning – often, but not exclusively, experiencing difficult home lives that made focusing on their education problematic. The Trust’s ‘Blue Skies programme’ engages selected school children from target schools/ areas for several months a year over three years from ages 13 to 16. Alongside this work is the Archaeology and Op Nightingale Project, which works with Help for Heroes engaging veterans to study BA Archaeology. This work
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36
UNDERSTANDING OUR RISKS The Board of Governors has delegated authority to the Audit Committee for Governor Oversight of Risk Management, including monitoring the Risk Management Plan. The most recent update was presented at the Board meeting on 5 June 2018. The following are our keys risks, selected from our risk register:
37
Risk area
Risk description
Risk management
Student recruitment
Failure to recruit a sufficient number of students, thus directly impacting our core income stream and threatening financial sustainability.
The University has invested in data-led recruitment and an improved media presence and customer response. We are nationally recognised for our widening participation activities and hold an Ofsted Outstanding status. We are also making considerable investment in new programmes to stay ahead of current education trends.
Graduate employability/ further study
Poor rates of graduate-level employability compared with sector/competitors, impacting our league table ranking and student demand.
New opportunities for volunteering/placements together with extended alumni bursary schemes. A new Employability Strategy, faculty-based employability advisers and introducing programmes with explicit career paths. Further factors include professional accreditation secured for relevant programmes and the Winchester University Hub to support aspiring entrepreneurs.
Changes in government policy and funding
The University could be negatively affected by the uncertain and rapidly changing government policy on HE and its funding.
The University informs and influences national debate about government policy through our responses to consultations, participation in roundtables and forums, and through contributions to various Boards, Committees and Commissions within higher education. For example, the Vice-Chancellor co-chaired the HE Commission on challenger institutions and is the current Chair of GuildHE. In addition she is a Board member of the Universities and Colleges Admissions Service (UCAS) and the Quality Assurance Agency for Higher Education (QAA), a member of the All Party Parliamentary University Group (APPUG), the Teacher Education Advisory Group (TEAG) and Universities UK (UUK).
Student experience
Failure to deliver continual improvement in student experience in the context of current financial constraints and uncertainties. This could lead to a reduction in demand and therefore income. It would also reduce our ability to meet strategic objectives such as our widening participation agenda.
Many initiatives have and are being introduced to improve the student experience. The University takes time to listen to its students to ensure we rectify current issues and make enhancements. For example, during 2017-18 the University invested considerably in the appointment of additional mental health resources and introduced a new Assessment & Feedback Strategy and Action Plan.
Student retention
Failure to maintain high levels of retention in the context of The Teaching Excellence and Student Outcomes Framework (TEF) and current recruitment uncertainties.
This year the University introduced new systems to allow students to link into the University as soon as they accepted their offer to study with us. We established a Centre for Student Engagement and developed a new ‘Get Involved’ button to highlight the many opportunities open to our students. The University has appointed a student retention officer in Student Services to support students fully and we have increased resources for mental health support and wellbeing.
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PUBLIC BENEFIT
embedded in all that we do, as the following vignettes highlight.
This integrated report and financial statements provide extensive information on the public
As an exempt charity the Governors of the
benefit and the added value the University
University of Winchester have had due regard
is achieving. The activities provided in the
to the guidance on public benefit published
following sections highlight how the University
by the Charity Commission in exercising their
has met its charitable objectives during the
powers and performing their duties. We are also
year. However, of particular relevance to
required to demonstrate that this is embedded
public benefit is our commitment to widening
in our values, as detailed on page 5.
participation, engagement with the community
The Board of Governors have due regard to
and the wider public and our contributions
any detrimental harm that may arise from
to environmental sustainability and a healthy
the University’s activities and particularly to
society.
the impact of its campus developments on its immediate locality. We aim to minimise
CHARITY STATUS AND PUBLIC BENEFIT STATEMENT
this impact through extensive community discussion and consultation in addition to working closely with Winchester City Council. We do not currently incur private benefit from
The principal objectives of the University, in
its activities undertaken in pursuance of its
accordance with Section 124 of the Education
purposes. The Board of Governors recognise
Reform Act 1988, are concerned with the
that students, both undergraduate and
provision of higher education and the conduct
postgraduate, are the principal beneficiaries
of research. Supporting this, the University
of the provision of higher education whilst
also undertakes other activities including
the public at large are beneficiaries of the
knowledge exchange, consultancy and the
University’s Research and Knowledge
provision of accommodation, catering and
Exchange and community engagement
conference services.
activities.
We are an exempt charity under the terms of
FACILITIES
the Charities Act 2011: the trustees of the charity are the members of the Board of Governors.
The University provides facilities open to the
The OfS, previously The Higher Education
public, including public lectures, concerts, an
Funding Council for England (HEFCE), is the
art gallery, sports facilities and other visitor
principal regulator of English higher education
attractions.
institutions covered within the act. In setting and reviewing the University’s strategy and activities, the Board of Governors takes into consideration the Charity Commission’s guidance on the reporting of public benefit and the supplementary public benefit guidance on the advancement of education. Indeed, the University takes seriously its commitment to ensure that it satisfies the Charity Commission’s public benefit requirements. Public benefit is
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VALUE FOR MONEY AND PROCUREMENT The OfS terms and conditions of funding for higher education institutions (ref 2018.15) requires our Board of Governors to demonstrate that it uses public funds for proper purposes and seeks to achieve value for money from public funds. At the University of Winchester, the responsibility for Value for Money (VFM) is delegated to management and the Board’s responsibility is discharged through proper scrutiny of the University’s affairs and through exercising appropriate oversight of strategies and policies. In exercising this duty the University has participated in HE Shared Legal, since its commissioning on 1 May 2012. This shared service arrangement permits a single fee for legal services for the year. The University continues to benefit from membership of and active engagement in a number of cross-sector organisations including: • Academic Registrars Council (ARC) • BUFDG’s Procurement Professionals Group (PPG) • GOV.UK – via Crown Commercial Services (CCS) • HE Shared Legal – legal services provision • Southern Internal Audit Partnership with Hampshire County Council • Universities and Colleges Admissions Service (UCAS) • Higher Education Liaison Officers Association (HELOA) • UK Council for International Student Affairs (UKCISA) • Universities Human Resources (UHR) • Universities UK and Guild HE • Advanced Procurement for Universities and Colleges based in Scotland (APUC) • British Universities Finance Directors Group (BUFDG)
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flexible, responsive and resilient cost-effective
• Eduserv – for the purchase of software licences
service to all participating partners.
• Higher Education Access Tracker (HEAT) The Catering department purchases through
• iESE – construction framework
TUCO (The Universities Catering Organisation)
• JISC – for broadband purchasing
and continues to engage local suppliers to
• Local Government Procurement Network (LGPN)
ensure that, where possible, students, staff and
• London Universities Purchasing Consortium (LUPC)
visitors receive ethical, local produce. They
• NHS – TDS Framework
agreements as tenders are issued, helping
• Southern Universities Construction Consultancy Affinity Group (SUCCAG)
maintain supply and supporting the growth of
encourage those suppliers to join framework
independent business.
• The Association of Managers in Higher Education Colleges (AMHEC)
The University openly tenders for all nonframework purchases above its internal
• The Energy Consortium (TEC)
thresholds which fall within the thresholds set
• The Society of College, National and University Libraries (SCONUL)
by the UK Public Procurement regulations.
• The Universities and Colleges Employers Association (UCEA)
Our Procurement function regularly monitors category expenditure and contract
• The University Caterers Organisation (TUCO)
administration to ensure the University is
• University and Colleges Information Systems Association (UCISA).
achieving best value from existing suppliers and agreements.
The aforementioned organisations consistently offer the sector value for money, often through rates specifically negotiated for the Higher Education sector. The sector is also served by regional purchasing consortia and the University of Winchester is an associate member of the SUPC. Figures published by SUPC based on 2016/17 expenditure demonstrates that the University has succeeded in saving £194,394 through channelling the University’s nonpay spend through regional and national collaborative agreements where possible. The collaborative spend for 2017/18 amounted to £1.9m to SUPC affiliated suppliers, the majority of which is associated with computer supplies and services, for which we expect to have benefitted from similar savings to last year. The University continues to utilise a shared service arrangement for the provision of internal audit services, provided by Southern Internal Audit Partnership. This is a partnership arrangement set up by Hampshire County Council pooling expertise and enables a
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EMPLOYEE INVOLVEMENT
EMPLOYEE WELLBEING AND ENGAGEMENT
The University provides a range of expertise and support to local communities through
The University of Winchester is dependent
its staff volunteering and outreach scheme,
on the quality of the workforce we recruit.
which offers staff an opportunity to participate
This applies to all aspects of the University;
in voluntary work. Students are also active
high calibre academics are needed to
in raising funds for charity and in community
deliver excellence in teaching, research
action projects.
and knowledge exchange activities, while professional services staff must be capable of
There are a number of ways that this takes
meeting the myriad of challenges that face
place:
any large organisation on a daily basis. High
• Staff can choose to use the University’s Employer Supported Volunteering scheme (ESV) to engage with volunteering/ community activities during their normal working hours.
productivity and effectiveness have helped
• Other staff volunteer for activities out of normal working hours, either independently of the University or via engaging with oncampus community activities.
leaders and the University continues to place
enable the University to deliver excellent outcomes through a period of change and uncertainty within the sector. Wellbeing of our staff is of paramount importance to senior emphasis on helping staff to thrive and flourish through wellbeing and engagement.
• Departments can undertake a Team Volunteering Day during normal working hours
The University has a range of benefits, discounts, sources of support, development and wellbeing events available for staff to support them both within and outside of our University community. As well as regular events, such as Tai Chi, Yoga, and a summer boot camp, the University organises a series of events aimed at improving our employee wellbeing, e.g. mindfulness, resilience and nutrition events. The creation of a Staff Wellbeing Advisory Group has allowed colleagues from across the University to come together and discuss wellbeing initiatives including the drafting of a new Staff Wellbeing Policy. A new software platform, ‘Logbuy’, provides a facility to recognise the hard work of colleagues, for example by sending a thank you to someone for their efforts, and to acknowledge their birthdays or specific achievements at work. The advisory group has also supported the formation of a number of wellbeing groups for staff to enjoy.
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Financial Review
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42
FINANCIAL STRATEGY
which produce sufficient cash to support the University’s strategic objectives and provide
Our Financial Strategy is to enable the
institutional sustainability.
University to reach its potential and its ambition. It has been drafted with reference to
OPERATIONAL EFFICIENCY
the five principles identified in HEFCE’s good
To continuously improve efficiency and
practice circular (2002/34 ‘Financial strategies
effectiveness - managing the cost of operations
in higher education institutions’):
and delivering value for money whilst continuing to maintain a sustainable recurrent
1. Long-term viability and matching resources with objectives
investment in the academic, corporate and support operations. To this extent Finance and
2. Maintaining productive capacity to meet current objectives
Planning are introducing contribution costing to the University.
3. Financing development and investment CAPITAL INVESTMENT
4. Evaluating strategic alternatives and managing risks
To develop capital and other strategic investment projects to deliver future benefit
5. Integrating financial and other corporate
to the University and, if required, to borrow
strategies
for investment at a level that will not put the University at risk.
The Financial Strategy is approved by the Board of Governors and, in light of the context within
TREASURY MANAGEMENT
which the University is operating, it identifies
To assess and manage risk in all University
our strategic priorities as:
growth and development activities and to operate sound treasury management.
SURPLUS To maintain healthy operating surpluses
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FINANCIAL ENVIRONMENT
On 23 June 2016, UK citizens voted in support
Government funding from HEFCE and then OfS
future as the UK government think and work
(from April 2018), being recurrent and capital
through how best to respond to this result and
grants, continues to reduce significantly in
negotiate the best outcome for the UK. It is
place of the home undergraduate fee loan
important that we remain focused on the long-
arrangements. The University currently
term ambitions and aspirations of the University.
of leaving the EU. We now face a degree of political and economic uncertainty about the
receives less than 3% of its income from We are a people organisation and our values
HEFCE for teaching.
and purpose support us to deliver opportunities In 2015 the government announced that
for our staff and students as global citizens
universities reaching a certain threshold,
in a global knowledge economy. We are
governed by a new Teaching Excellence
engaging, and will continue to engage, in the
Framework (TEF), will be able to uplift the
long-term; delivering inclusive and inspirational
standard tuition fees by an inflationary factor.
teaching, learning and research to the diverse
Whilst this has been possible for our 2017/18
and talented communities we serve. We will
tuition fee, which rose by £250 per full time
support each other to achieve the best we can
home and EU undergraduate student to £9,250,
for our students and staff and we will engage
the government has subsequently withdrawn
with policy makers to shape our future as a
the original TEF proposal to permit a further
successful institution that is world-leading in
inflationary rise in 2018/19, choosing instead
values-driven higher education.
to hold the maximum chargeable full time fee at £9,250. At this stage the government are
Over the past few years we have been working
undertaking a review of post-18 education,
on a number of initiatives to strengthen the
including a review of tuition fees, and the
University’s financial base, to deal with existing
University currently has no certainty over the
and known pressures and to put the University
level of fees that it will be permitted to charge
into the best possible position to contend with
for 2019 entry. The government is expected to
the rapidly changing and uncertain financial
present the results of its review of fees in the
environment. These have included:
first quarter of 2019.
• Investment in a number of new core systems to improve our service delivery including a new learning management system (LMS), finance system, CRM system and data warehouse.
The capping of tuition fees to £9,250 in 2017/18 followed two years of fees frozen at £9,000, inevitably creating financial pressure in an inflationary environment; against assumptions
• A review of our portfolio of programmes with a number of new programmes coming online and in development, including STEM subjects, Foundation Degrees and Health and Well being programmes in Physiotherapy and Nursing.
of pay awards on top of incremental drift arising from rising pension costs, additional apprenticeship levy costs, inflation on energy costs and inflationary increases on goods and services. This has made it increasingly
• Considerable planned investment in our estate to enable growth of the University as the sector starts to recover from the demographic downturn in 18-20 year old students from 2020/21 (based on the Office for National Statistics national projections for 18-20 year old UK citizens).
challenging to maintain the University’s financial surplus strategy at a time when the University is investing for planned future growth in the institution.
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FINANCIAL PERFORMANCE
base, in particular due to depreciation and loan interest, the impact of which we have started
The financial statements reflect another
to see in 2017/18 with the development of
successful year of growth, whilst the sector
new programmes to complement this new
continues to contract overall. We have bucked
build. However, the additional costs of these
the trend of the demographic downturn and
new programmes will not immediately be
grown in undergraduate student recruitment,
exceeded by additional student fee income
enhanced our academic partnerships in the
until the new programmes are fully established,
UK and across the globe and invested in our
two to three years after the building is opened.
students’ experience, academic endeavours
This is the main reason for the 2017/18 results
and capital infrastructure. Together with
showing a reduction on the previous year. The
robust cost control, we have mitigated the
reduction is further forecast into the future as
future freezing of UK tuition fees, rising staff
our investment increases before returning to
costs and, in particular, pension cost increases.
successive and sustainable surpluses after 2021/22.
This years’ surplus before tax of £2.0m represents 2.6% (2016/17: 7.0%) of income.
INCOME
Whilst this is a reduction on last years’ results,
Total income for the year is £79.0m (2016/17
2017/18 saw the introduction of a new £30m
£75.0m), of which tuition fee income accounts
loan facility to support the development of
for 76%, which is broadly consistent with
a new learning and teaching building. The
2016/17 at 77%. Whilst the majority of this
construction phase of our £48 million West
increase is due to student recruitment and
Downs development commenced in January
retention, the improvement has also been
2018, with the building on schedule to open
supported by the undergraduate home and
for Semester Two in early 2020. This is a
EU tuition fee increase from £9,000 to £9,250
substantial investment for the University and
in 2017/18, and inflationary increases in
will be a flagship building that will add a further
international and postgraduate tuition fees. The
20% to the University’s learning and teaching
income for the year also saw increases in all our
space. It will be a visible advertisement for the
non-tuition income streams, including:
University due to its prominent location on Romsey Road, a major gateway into Winchester
2017/18
2016/17
3,586
3,392
641
494
Other income
2,125
1,901
Residences, catering and conferencing
12,548
11,597
285
246
£’000s
City centre. The development underpins the University’s ambition and strategic aim to
Funding body grants
continue to grow its student numbers into the future and thus benefit from the economies of scale experienced by larger universities. The
Research grants and contracts
new space will also allow the University the opportunity to widen its community and partner engagements, incorporating a public gallery and catering and conferencing facilities. By enabling the University to grow its student numbers, this development is a catalyst in securing the future financial sustainability of
Endowment and investment income
the University in the longer-term. However, in the short-term the development causes a significant increase to the University’s cost
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TOTAL INCOME 2017/18 (£m) Total: £79m
Tuition fees and education contracts: 59.8
Endowment and investment income: 0.3 Research grants and contracts: 0.6
TUITION FEE INCOME 2017/18 Per cent Full-time home and EU students: 87
Part-time students: 3
Funding body grants: 3.6
Self-financing courses: 4
Other income: 14.7
Full-time international students: 7
EXPENDITURE
Mathematics and Music and Sound Production.
Total expenditure was £77.0m (2016/17 £69.8m),
Together, these programmes attracted over 100
an increase of 10.3%.
applications in their first year, despite limited marketing. Mathematics is currently the most
Total staff costs for the year have increased by
popular A level choice for students in schools
6.7% (9.2% 2016/17) to £41.4m due to increases
or colleges and a rising trend in Economics
in all categories of expenditure as follows:
A level entrants has also been identified. The
• Salary costs increased by 6.5% to £32.6m due to an increase of 11 FTE academic staff and 17 non-academic staff to support the new programme developments and new corporate systems. Part of the non-academic staff growth has resulted from a decision to in-source our night shift library security guards, an equivalent of approximately nine FTE staff.
development also responds to the Sainsbury
• Social security costs and pension costs have increased by 6.8% to £3.1m and 5.8% to £5.6m respectively, in line with the aforementioned FTE increase.
adaptations to certain learning and teaching
Review which recommended expanding specialist Maths schools and improving FE colleges’ record on Maths. This is part of the UK government’s drive to create a “proper system of technical education”. These developments have been possible within the current estate envelope with some modification and spaces. Further programme developments, and the associated staffing increases, have been planned for the coming year, 2018/19.
• The new apprenticeship levy has added an additional £0.1m to the University’s staff cost base.
Other operating expenditure has increased by
The staff increase has predominantly resulted
has been at 2.74% across the same period.
from the recent new programmes for
The underlying expenditure showed a 31.0%
2017/18 including Anthropology, Economics,
(£1.2m) increase in residences, catering and
UNIVERSITY OF WINCHESTER
17.5% to £28.8m during a time when inflation
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conferences, primarily due to a higher number
rate fixed for 10 years. The increase in interest
of beds under University-managed housing
cost reflects this initial drawdown in 2017/18.
(UMH) than for 2016/17. UMH accommodation EXPENDITURE 2017/18 (£m) Total: £77m
is leased by the University from the owner, the student paying the University for the rent of the property. Thus this UMH cost increase is matched by a similar increase in other income.
Depreciation: 4.8
Fellowships, bursaries and scholarships show a 15.0% increase, reflecting the University’s growing commitment to widening participation. Repairs and general maintenance increased by 7.0%, reflecting the rising cost of materials and the University’s commitment to maintaining its existing estate. However, the most notable increase in other operating expenditure was experienced under other expenses, which increased by 22.5% to £13.1m. The single
Other operating expenses: 28.8
largest increase (£0.8m) was due to additional expenditure on communications and marketing to support the rollout of the University’s
BALANCE SHEET
re-branding and communicating its new
Fixed Assets
programmes. Other increases (£0.5m) were
The capital expenditure on the new West
experienced in our software and equipment
Downs development has dominated the £7.3m
cost as the University invested in the state-of-
increase in the value of our non-current assets.
the-art systems and software to support both
However, the University continues to invest
its learning and teaching and its back office
in its existing estate to maintain the quality of
systems. School placement costs increased
teaching rooms and social areas, expending
by £0.3m, reflecting the change in delivery of
more than £1.7m on existing building capital
teacher training from lecture to classroom.
improvements in the year.
Depreciation increased by 3.1% (£0.1m),
Current Assets
reflecting a continued investment in the
The increase in current assets is dominated by
University’s existing estate. The costs
an increase in cash and short-term investments
associated with the West Downs development
during the year. This is predominantly due to a
are not yet being amortised until the building
£10m loan drawn from the Triodos Bank.
is completed in 2019/20 when the University’s depreciation charge will increase considerably.
Trade and other receivables has marginally increased in the year by £44k which is
The interest and other finance costs have
consistent with the increase in the number of
increased by 9.1% (£0.2m). In order to finance
students now studying at the University.
the West Downs development, the University secured a £30m loan facility from Triodos Bank
Creditors
in May 2018. The facility is available for 3 years
Both short-term and long-term creditors have
with a 25 year term ending on 31 July 2043. On
increased considerably during the year which is
1 June 2018 the University exercised an initial
consistent with the aforementioned £10m loan
option to make a drawdown of £10m, with the
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Cash Position Over recent years the University has carefully managed its budgets, allowing it to accumulate cash reserves to help fund the development of West Downs. The University continues to be a strong generator of cash with £9.9m (2016/17 £12.3m) generated from operating activities in the year. However, whilst funds held in short-term investments and cash and cash equivalents increased by £6.8m in the year, there was an underlying cash reduction of £3.3m after allowing for the loan drawdown of £10m from the Triodos Bank in May 2018. This reduction in cash reflects the use of operating cash to fund the West Downs development. In the year to 31 July 2018 the University expended over £10m on assets in the course of construction. The University’s policy to hold no less than 10% of turnover in available cash (£7.8m for 2017/18) has been upheld throughout year. CHANGES IN CASH MOVEMENT 2017/18 Opening cash and investments
£9.9m New loan
@simplerdave
£34.3m
£10.0m
£0.8m
£2.8m Capital expenditure
£11.1m
Closing cash and investments
@thebencoleman
£41.1m
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FUTURE SUSTAINABILITY
adverse changes in the HE environment.
In January of this year the construction phase
On 6 September 2018, the Chief Secretary to
of our £48 million West Downs development
the Treasury provided an update to Parliament
commenced, with the building on schedule to
on the 2016 actuarial valuations of the Teachers’
open for semester two in January 2020. This
Pension Scheme. The update concluded that
is a substantial investment for the University
the assumptions which HM Treasury plans
and will be a flagship building that will add a
to apply to the valuations would lead to both
further 20% to the University’s learning and
an increase in member benefits and very
teaching space. The development underpins
substantial increases to employer contribution
the University’s ambition and strategic aim to
rates from September 2019 of up to 44%. Such
continue to grow its student numbers into the
an increase would add over £1m to our annual
future and thus benefit from the economies of
staff costs.
scale experienced by larger universities.
Further financial pressure may be imposed
The development has had a major impact on
by the Government if the cap on tuition fees
our predicted future financial performance.
is reduced following their Review of Post-18
By enabling the University to grow its student
Education and Funding. The report is due to
numbers, the development is a catalyst in
be released in the first quarter of 2019 and will
securing the future financial sustainability of
set the maximum tuition fee chargeable for
the University in the longer term. However,
2019 entry and beyond. It is therefore likely to
in the short term the development causes a
directly impact our future forecast income and
significant increase to the University’s cost
thus our financial sustainability.
base, in particular due to depreciation and loan
However, the University is less concerned
interest charges. Whilst we are already initiating
about the UK’s decision to leave the European
new programme developments to complement
Union (EU) (Brexit). Whilst Brexit does pose
this new build these additional costs will
considerable challenges for the HE sector,
not immediately be exceeded by additional
especially within fields of research, the
student fee income until the new programmes
University of Winchester does not recruit a
are fully established, two to three years after
large number of students from the EU. In
the building is opened. However, over recent
2016/17 the University taught 96 EU domicile
years the University has carefully managed
students representing circa 1.4% of the total
its budgets allowing it to accumulate cash
student population, so the impact of a reduction
reserves to help fund the development (circa
in EU student recruitment would be relatively
£32m excluding the initial drawdown of the
immaterial financially.
loan) thus making this considerable investment financially sustainable. The University’s cash reserves reduce during the period of the build as £18m is used to part fund the development. If the full £30m loan facility with the Triodos Bank is drawn, as is forecast, the University will retain sufficient cash reserves either to enable further projects from the University’s Estate Master Plan to proceed, or to future-proof the financial sustainability of the University should it be required following
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FINANCIAL KPIs
Our financing factor of negative 2.7 represents a ratio of net bank borrowing versus EBITDA.
Key Performance Indicators (KPI) are used
The ratio is negative due to our cash and
by the SMT and by the Board of Governors to
funds on deposit and short term investment
assess the University’s performance. All KPIs
exceeding our bank borrowing. Thus, the ratio
have been revised by the SMT in line with our
for both 2016/17 and 2017/18 is strong against a
strategic plan and changes in the external
benchmark of 5.0.
environment and reviewed in the light of feedback from the British Quality Foundation (BQF).
Signed on behalf of the Board of Governors:
Our KPIs cover a number of operational areas of the University from student satisfaction to student employability. Our financial performance KPIs reflect those used by our funding bodies and are reconciled to the accounting data. Our financial sustainability KPIs
A C Lovell
include:
Chair of Board of Governors
Financial KPIs
Previous data
Latest data
Profitability % EBITDA / Total income
16.2%
11.8% Professor J Carter Vice-Chancellor
Margin for Sustainability and Investment (MSI)
15.6%
Financing – Bank borrowing/EBITDA
-2.3
12.0% Date 14 November 2018 -2.7
Our profitability percentage has considerably reduced for 2017/18 due to investments in our University re-branding, marketing our new programmes, developing our IT infrastructure and increasing our commitment to Widening Participation. However, the percentage remains financially sustainable at 11.8%. The MSI factor is similarly derived from Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) but is calculated from historic periods and future forecast periods. It therefore presents a longer term forwardlooking factor. The 2017/18 factor of 12.0% is financially sustainable although lower than 2016/17 due to the factors mentioned above.
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@katiekiwi123
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Statement of Directors’ Responsibilities in Respect of the Strategic Report, the Directors’ Report and the Financial Statements
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going concern; and
The Board of Governors are responsible for preparing the Strategic Report, the Directors’
• use the going concern basis of accounting unless they either intend to liquidate the group or the parent University or to cease operations, or have no realistic alternative but to do so.
Report and the Financial Statements in accordance with the requirements of the Office for Students’ (OfS) terms and conditions of funding for higher education institutions and Research England’s terms and conditions
The Board of Governors is responsible for
of Research England grant and applicable law
keeping adequate accounting records that
and regulations.
are sufficient to show and explain the parent University’s transactions and disclose with
Company law requires the directors to prepare
reasonable accuracy at any time the financial
financial statements for each financial year.
position of the parent University and enable
Under that law they have elected to prepare
them to ensure that its financial statements
the group and parent University financial
comply with the Companies Act 2006. They
statements in accordance with UK accounting
are responsible for such internal control as
standards and applicable law (UK Generally
they determine is necessary to enable the
Accepted Accounting Practice), including
preparation of financial statements that are free
FRS 102 The Financial Reporting Standard
from material misstatement, whether due to
applicable in the UK and Republic of Ireland.
fraud or error, and have general responsibility
The terms and conditions of funding further
for taking such steps as are reasonably open
require the financial statements to be prepared
to them to safeguard the assets of the group
in accordance with the 2015 Statement of
and to prevent and detect fraud and other
Recommended Practice – Accounting for
irregularities.
Further and Higher Education, in accordance with the requirements of the Accounts Direction
The Board of Governors are also responsible for
issued by the OfS.
ensuring that:
Under company law the directors must not
• funds from whatever source administered by the Group or the University for specific purposes have been properly applied to those purposes and managed in accordance with relevant legislation;
approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and parent University and of their income and expenditure,
• funds provided by the OfS and Research England have been applied in accordance with the terms and conditions attached to them;
gains and losses and changes in reserves for that period. In preparing each of the group and parent University financial statements, the directors are required to:
• funds provided by HEFCE have been applied in accordance with the Memorandum of Assurance and Accountability and any other terms and conditions attached to them
• select suitable accounting policies and then apply them consistently; • make judgements and estimates that are reasonable and prudent;
• ensuring that there are appropriate financial and management controls in place to safeguard public funds and funds from other sources; and
• state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
• securing the economical, efficient and effective management of the university’s resources and expenditure.
• assess the group and parent University’s ability to continue as a going concern, disclosing, as applicable, matters related to
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The Board of Governors is responsible for the maintenance and integrity of the corporate and financial information included on the University’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. AUDITORS A resolution to re-appoint KPMG LLP as auditor for the forthcoming year was proposed at the meeting of the Board of Governors on 14 November 2018. The auditors have served for two years. DISCLOSURE OF INFORMATION TO AUDITORS 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’s auditors are 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’s auditors are aware of that information. Signed on behalf of the Board of Governors:
A C Lovell Chair of Board of Governors
Professor J Carter Vice-Chancellor Date
@emily.m.b.24
14 November 2018
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Our Governors
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The following are current Governors (Directors) of the University or those who served during the year ended 31 July 2018. Appointed on
Resigned on
Diocesan Members Alan Lovell (Chair) Winifred Harris (Vice-Chair) Mark Byford Tim Dakin, The Right Revd The Bishop of Winchester (ex-officio) Jane Jessop Andrew Robinson David Williams, The Right Revd The Bishop of Basingstoke Co-opted Members Margaret Chin-Wolf David Cook Mary Edwards
1 August 2017
Professor Christopher Gaskell
1 August 2017
Peter North Dr Emma Page Academic Governors Professor Joy Carter (ex-officio) Professor Louise Curth
1 August 2017
Professor Neil Marriott (ex-officio) Professor Elizabeth Stuart (ex-officio) Professor Nigel Tubbs
1 August 2017
Support Staff Governors Catherine Beck
31 July 2018
Dr Lesley Black Tom Lowe
1 August 2018
Former Student Governor John McKenna
31 July 2018
Peter Lidgitt
1 August 2018
Student Governor Talivaldis Atvars Clerk to the Governors/Company Secretary Nigel Trethewy Stephen Dowell (Acting)
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22 October 2018
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Statement of Corporate Governance and Internal Control
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CORPORATE GOVERNANCE
The responsibilities of the Board of Governors
The University is committed to exhibiting best
of the terms and conditions of UKRI funding
practice in all aspects of corporate governance.
relating to funds administered through
This statement details the manner in which the
Research England. The University has been
University has applied the principles set out
designated by the Secretary of State as an
in the Committee of University Chairs (CUC)
institution in the further and higher education
published guidance (HEFCE 2008/06) and
sector, which has its own contract with the
the UK Corporate Governance Code issued by
Education and Skills Funding Agency (ESFA).
are set out in paragraph 22 of the terms and conditions of OfS funding and paragraph 21
the Financial Reporting Council in July 2018, in so far as they relate to Higher Education
The Board of Governors is responsible for
Institutions. Its purpose is to help the reader of
the appointment and removal of external and
the Financial Statements understand how the
internal auditors and for appointing outsourced
principles have been applied.
internal audit providers. The Board of Governors comprises seven
LEGAL STATUS
independent diocesan appointed members (non-executive), six independent co-opted
The University of Winchester is a company
members (non-executive), five academic
limited by guarantee, registered company
governors, two support staff governors, one
number 05969256. Every Director and member
independent former student governor and one
of the company is also an acting Governor of
student governor. The Diocesan Governors
the University. The University is an exempt
of the Board are appointees of the Church of
charity with its Governors as managing trustees.
England by the Winchester Diocesan Synod. A student governor holds office until the end
RESPONSIBILITIES OF THE BOARD OF GOVERNORS
of the academic year in which the student
The Board of Governors of the University, which
sooner. Other Governors (not being Governors
meets formally at least three times a year, is
ex-officio) hold office for a term of three years
responsible for but limited to the determination
and shall be eligible for re-appointment up to a
of the educational character and objectives
maximum of three terms, of three years each in
of the University, the oversight of its activities,
total.
governor is appointed or until their appointment by the students comes to an end, whichever is
the effective and efficient use of resources, the
The role of the Chair of the Board of Governors
solvency of the University, for safeguarding
is separated from the University’s Chief
its assets and for approving annual estimates
Executive, the Vice-Chancellor. The Chair
of income and expenditure. The University’s
is elected from amongst the independent
Board of Governors comprises persons
members. No member of the Board of
appointed under the University’s Memorandum
Governors receives any remuneration for
and Articles of Association, a copy of which can
work they do for that Board. The current
be found on our website: Winchester.ac.uk/
Memorandum and Articles of Association for
integrated-annual-report-1718
the University of Winchester were adopted by the Board of Governors on 16 March 2011. The Board has determined that the Vice-
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Chancellor shall be the Accountable Officer
it to identify any material change in its
who has the responsibilities set out by the OfS
circumstances, including any significant
for an accountable officer from time to time.
developments that could impact on the mutual
The Board is satisfied that all conditions of
interests of the University and the OfS. For
receiving and using funds provided by HEFCE,
the purposes of this statement, public funds
the OfS and Research England have been met
includes funds received from the Student Loans
for the year to 31 July 2018. The University’s
Company and the Skills Funding Agency.
constitution places responsibility for the
A ‘Statement of Primary Responsibilities’
University’s operations with the Vice-Chancellor
provides more detail of the responsibilities of
who as the Accountable Officer, supported by the Senior Management Team, implements the
the Board, which include:
Board’s policies and develops and manages the
• the determination of the educational character and objectives of the University and for the oversight of its activities;
University’s business. The University endeavours to conduct its
• the effective and efficient use of resources, the solvency of the University and for safeguarding its assets;
business in accordance with the seven principles identified by the Committee on Standards in Public Life (selflessness,
• approving annual estimates of income and expenditure;
integrity, objectivity, accountability, openness, honesty and leadership) and with guidance to
• the determination of identity of the Designated Staff, save that the ViceChancellor, the Deputy and Pro ViceChancellors, and the Secretary shall always be members of the Designated Staff;
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.
• the assignment of duties and of the appraisal of the Vice-Chancellor;
In accordance with the Memorandum and
• the appointment, discipline, suspension and dismissal and the determination of the grading, pay and conditions of service of the Designated Staff provided that:-
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
-- the Vice-Chancellor shall be a practising member of the Church of England or of a church in communion with that church or of a church which is a member of Churches Together in England;
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
-- before making the appointment of ViceChancellor, the Governors shall take suitable measures including national advertising to obtain applications from qualified candidates and interview not less than three such applicants, if there be so many, as appear to them qualified for the post;
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
-- the appointment of the Vice-Chancellor shall be made on the recommendation of a committee of the Governors the majority of whose members shall be Anglicans;
governance, including the prevention and detection of corruption, fraud, bribery and irregularities. The Board receives adequate and regular information to monitor performance
-- the Pro Vice-Chancellor shall be a suitable and duly qualified person and shall be in
and track the use of public funds to enable
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60
which the Committee is able to base its annual
sympathy with the aims and objectives of an Anglican Foundation;
opinion in respect of data; a change to the
• the setting of a framework for the pay and general conditions of employment of the Staff who are not Designated Staff;
timing of the approval of the University’s annual
• after consultation with the Staff making the rules relating to the conduct of the Staff;
framework to ensure compliance with the
Transparent Approach to Costing (TRAC) return; and the development of a new assurance conditions of general registration of the OfS.
• the appointment of Auditors.
The Vice-Chancellor is the Chief Executive
It is the responsibility of the Board of Governors
Officer who has a general responsibility to
to undertake an external formal and rigorous
the Board of Governors for the organisation,
evaluation of the performance of the Board, its
direction and management of the University.
committees, the Chair and individual Governors.
Under the OfS terms and conditions terms
During the year, the University engaged KPMG
(OfS 2018.15) between OfS and the Board
to review and comment on the University’s
of Governors, the Vice-Chancellor is the
Board of Governors and its committee
Accountable Officer of the University and in that
structures, delegation and delivery of roles
capacity can be summoned to appear before
and responsibilities, assessing these against
the Public Accounts Committee of the House of
the Committee of University Chairs (CUC) and
Commons.
OfS requirements. The review has provided a high level view of the Board of Governors’
The University maintains a Register of Interests
effectiveness and has specifically assessed the
of members of the Board (and senior managers)
University’s approach to dealing with finance
which may be consulted by arrangement with
matters.
the Clerk to the Governors. In accordance with its Memorandum and Articles of Association,
The report makes a total of 34
the University has appointed a Clerk to the
recommendations for enhancement of
Governors who provides independent advice on
practice. These recommendations have been
matters of governance to Board members.
discussed by the Board of Governors and an action plan developed, which is currently
In governing the operations of the University,
being implemented. The highest priority
the Board of Governors holds a number of
recommendations related to the composition
relevant committees. These committees and
and structure of the Board and Committees,
their respective attendance by each Governor is
including a full review of the constitution
listed opposite:
and composition of the Board, which will be completed this year; an increase in the number of Board meetings to six per year, which was implemented in October 2018; and the separation of the Finance and Audit Committee into two separate components, which was implemented for the start of the 2018/19 academic year. There were also several important recommendations aimed at enhancing the University’s reporting on compliance matters, for example specifically referencing assurance sources that are regularly sent to the Audit Committee upon
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Meeting
Board of Governors
Audit Committee
Standing Committee
HR Committee
Board members
Members
Attendance
Members
Members
Attendance
Members
Attendance
Alan Lovell
Chair
3/3
Chair
3/3
0/2
Win Harris
3/3
3/3
2/2
Tali Atvars
3/3
Cath Beck
3/3
Lesley Black
3/3
2/2
Mark Byford
3/3
2/2
Joy Carter
3/3
3/3
Margaret Chin-Wolf
2/3
2/3
David Cook
3/3
Louise Curth
1/3
Tim Dakin
2/3
Mary Edwards
2/3
2/3
Chris Gaskell
3/3
3/3
Jane Jessop
2/3
Neil Marriott
3/3
3/3
John McKenna
Peter North
Attendance
2/3
Chair
3/3
3/3
2/2
3/3
3/3
0/3
3/3
2/3
Emma Page
3/3
3/3
2/2
Andrew Robinson
3/3
2/2
Elizabeth Stuart
3/3
2/2
Nigel Tubbs
3/3
David Williams
3/3
Chair
3/3
3/3
2/3
Meeting
Nominations Committee
Remuneration Committee
Foundation Committee
Estates Committee
Board members
Members
Attendance
Members
Attendance
Members
Attendance
Members
Attendance
Alan Lovell
3/3
2/2
1/3
2/3
Win Harris
Chair
2/3
2/2
Tali Atvars Lesley Black
Chair
3/3
2/2
3/3
3/3
2/3
2/3
3/3
Louise Curth
3/3
3/3
Chair
3/3
Margaret Chin-Wolf David Cook
3/3
Mark Byford Joy Carter
2/3
1/2
2/2
Tim Dakin
Chair
3/3
Jane Jessop Neil Marriott Peter North
2/3
Emma Page Andrew Robinson Elizabeth Stuart
3/3
David Williams
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Senior Management Team
Board about the adequacy and effectiveness of:
The Board of Governors (Board) delegate
• Risk management, control and governance (the risk management element includes the accuracy of the statement of internal control included with the annual statement of accounts);
operational management control of the University to the Senior Management Team (SMT), which is chaired by the Vice-Chancellor. SMT meets three times each month, in addition
• Economy, efficiency and effectiveness (value for money);
to these meetings, once a month the SMT meets with the Deans of Faculty to have a
• The management and quality assurance of data provided to OfS, HESA, Student Loans Company, and other funding bodies.
meeting focused on the academic delivery of the University and this is titled the University Management Group (UMG).
The Audit Committee meets three times Membership and attendance for all Board
annually with auditors present for at least one
Committees can be found on page 62.
meeting, to review the internal auditors’ Risk Assessment and Plan, to consider the findings
Standing Committee
of internal audit investigations, to review the external audit plan and the external auditors
Standing Committee meets at least three
final audit findings report. It also receives
times a year. The committee has responsibility
and considers reports from the OfS as they
agreeing the agenda for the Board and also the
affect the University’s business and monitors
governance for Strategic planning, including
adherence with regulatory requirements.
Estates planning, Academic affairs, Student
They review our annual financial statements
affairs and Financial affairs. The Committee
together with the accounting policies. Whilst
will undertake a detailed examination of the
senior managers attend meetings of the Audit
annual budget, and make recommendations to
Committee when necessary, they are not
the Board for its approval or further revisions.
members. The Committee meets at least once
Standing Committee is responsible for the
a year with the external and internal auditors
annual review of the five year financial forecast,
without any officers present. They also meet
and monitors our financial and management
once a year without the external and internal
accounts at each meeting. The Committee
auditors to consider the auditors’ performance
is also responsible for the monitoring of the
and to consider and advise the Board on the
treasury management policy, and makes
appointment of the external auditors.
regular reports, and recommendations regarding the treasury management options,
Remuneration Committee
based on the level of risk versus the level of expected return on our portfolio investment.
The Remuneration Committee is an important part of our overall governance arrangement.
Audit Committee
The primary function of the Committee is to determine annually the remuneration of specific
The Audit Committee is responsible
senior staff post holders. It meets at least twice
for undertaking a detailed examination
a year to prepare and decide on the outcomes.
of the annual estimates of income and
A secondary function of the Committee is
expenditure, and the annual accounts, and for
to determine any severance payment to be
recommending to the Board for their approval
made to a senior post holder in respect of the
or otherwise. Members of the Audit Committee
termination of their employment, under the
do not have executive authority. The Audit
terms of a settlement agreement, as and when
Committee is responsible for assuring the
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to determining the emoluments of any of
this arises.
the senior staff within its remit. The current
The Remuneration Committee is committed to
membership and meetings held during the year
complying with all the elements of the CUC’s
are displayed in the table of membership and
guidelines on best practice, as set out in its
attendance of committee meetings shown on
Higher Education Senior Staff Remuneration
page 62.
Code, published in June 2018. The University’s Remuneration Committee seeks to ensure at
It should be noted that the Remuneration
all times that its decisions are based on robust
Committee is chaired by the Chair of the
evidence, including performance against
Human Resources Committee, a non-executive
personal objectives; the performance of the
governor, and not by the Chair of the Board,
University against its KPIs and targets; and the
in line with CUC best practice guidance. The
use of relevant benchmarking comparators.
Director of Human Resources acts as the Secretary to the Remuneration Committee.
The Remuneration Committee recognises it must strike the right balance between
At the Remuneration Committee meeting on
recruiting, rewarding and retaining the best
4 July 2018 the Vice-Chancellor was invited to
senior staff possible in order to deliver the best
attend part of the meeting but only in relation
outcomes for students and the University of
to the salary reviews of her direct reports - the
Winchester as an institution, whilst, at the same
First Deputy Vice-Chancellor; the Deputy Vice-
time, demonstrating effective use of limited
Chancellor and the Assistant Vice-Chancellor
resources and achieving value for money.
- in order to give an overview of their individual performances against personal objectives in
The current senior posts which fall under
the past year. She left the meeting before any
the remit of the University of Winchester
discussions took place amongst Committee
Remuneration Committee (and the current
members about any of the individual senior
named incumbents) are as follows:
management remunerations.
• Vice-Chancellor Professor Joy Carter
The CUC Code on Remuneration had been
• First Deputy Vice-Chancellor Professor Elizabeth Stuart
distributed to all members of the Committee before the meeting. The Chair stressed that
• Deputy Vice-Chancellor Professor Neil Marriott
their decisions should be based on fair, appropriate and justifiable remuneration
• Assistant Vice-Chancellor Colette Fletcher
that demonstrates procedural fairness and
• Clerk to the Board of Governors Nigel Trethewy
sensitivity to the stewardship of University funds to ensure value for money and the protection of
• Dean of Spiritual Life Dr Terry Biddington
the Institution’s reputation.
The four members of the SMT are all eligible
The Committee had access to a range of
to receive a performance related pay element
information to inform its decisions including:
in their annual remuneration review, based on
• the University’s latest overall key performance indicators table and associated ratings and trends, set against agreed strategic targets for the University as a whole;
exceptional performance. The members of the Remuneration Committee are all independent, non-executive members of the University’s Governing Board. Importantly, the Vice-
• the latest position on the HE-wide pay negotiations;
Chancellor is not a member of the Committee and plays no part in the final discussions and
• the current median pay ratio of the Vice
decision making of the Committee in relation
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64
comparison purposes, in the previous year, the
Chancellor to all university staff; • HE comparator remuneration data for senior staff in similar sized universities including UCEA’s senior staff remuneration 2017 survey and the CUC Vice-Chancellor salary survey;
Committee agreed a salary increase of 1.7%
• relevant data regarding external senior staff in public bodies locally (Hampshire County Council and Winchester City Council).
The Remuneration Committee had particular
• all this information was examined, alongside:
performance of the University as a whole; to
• the individual staff development reviews (SDRs), reporting on performance assessment against personal objectives set for the past year;
HE comparator remuneration data for similar
for the Vice-Chancellor, together with a nonconsolidated bonus payment of £4,310.
regard to the Vice-Chancellor’s performance against her own personal objectives; to the
sized sector institutions; to the latest position on the HE-wide pay negotiations; and to her roles in relation to the wider Higher Education
• the Vice-Chancellor offering her own views in relation to her direct reports’ performance in the past year;
sector, which bring credit to the Institution and are often carried out in her own time. The Vice-Chancellor’s emoluments will be reviewed
• the skills and experience of the incumbents; and
again by the Remuneration Committee at its meeting in July 2019.
• the Committee members own observations and insights.
In line with the CUC Code on Senior Staff
The relative size of the University of Winchester
Remuneration, published in June 2018, and
was set against similar sized institutions when
the new OfS Accounts Direction guidance,
benchmarking and referencing comparator
published in October 2018, the Remuneration
data. (The relevant comparator band for
Committee is committed to disclosing two pay
Winchester is the £70-£100m band comparing
ratios, which show the Vice-Chancellor’s pay
11 institutions)
as a multiple of the median earnings of the University’s whole staff (as at 31 July 2018).
The latest position of the HE Sector pay negotiations was noted, including the
For details of the two pay ratios and various
employer’s final pay offer of 2.0% uplift on the
elements of the Vice-Chancellor’s total
salaries of all staff above point 14 on the national
emoluments including pension costs, please
pay spine. It was also noted that additionally, in
refer to note 6 of the financial statements.
relation to incremental progression within pay
The ratios sit within the CUC’s best practice
grades, 66.5% of employees at the University
guidance of a range between 4.5 and 8.5. The
would be affected this year, equating thereby
Committee also noted that the current in-house
to an average additional overall increase per
provision of services such as cleaning, porters
employee of fractionally under 4%.
and security at the University of Winchester have the effect of increasing the pay multiple
Vice-Chancellors Emoluments
in comparison to the pay multiple applicable at
At its meeting in July 2018, the Remuneration
some other universities which outsource some
Committee unanimously agreed the basic
or all of these services.
salary of the Vice-Chancellor, Professor Joy
Nominations Committee
Carter, be increased by 3.5% from £219,184 per annum (2017/18) to £226,855 per annum for the
The Nominations Committee is responsible
year commencing 1 August 2018, comprising a
for the regular review of the skills, knowledge
2.0% basic uplift to mirror the national HE pay
and experience which the Board requires
offer and a consolidated increase of 1.5%. For
65
UNIVERSITY OF WINCHESTER
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recommending to the Board candidates to fill
new requirement to publish data on trade
vacant Governor positions on the Board, in line
union facility time. This new duty applies to
with the Seven Principles of Public Life and our
all public sector employers. Universities in
Equality and Diversity policy. The Committee
England fall within the definition of public sector
makes recommendations to the Board about
employers for this purpose. The committee led
the membership of Board Committees and
the process for data which we reported on to
those University Committees with Governor
the government in compliance with their new
representation, seeking to ensure that
requirements.
committees have a balanced and appropriate
The data relates to the period 1 April 2017 to 31
range of members. It is responsible for
March 2018.
developing and implementing processes for the recruitment and selection of: the Chancellor;
TRADE UNION FACILITY TIME REPORTING 2017/18
independent Governors; the Chair of the Board; the Vice Chair of the Board; the Vice Chancellor; the SMT; and other Designated Staff
Union officials
positions. It also develops, and oversees the
Number of employees who were relevant union officials during the period
implementation of, the induction, training and development of Governors. The Committee meets a minimum of three times a year: it is
4
Full-time equivalent employee number
chaired by the Vice Chair of the Board and the majority of members are independent non-
3.7
executive Governors.
Percentage of time spent on facility time employees
Human Resources Committee
0%
0
This committee is responsible for the
1-50%
4
51-99%
0
100%
0
governance of employment-related matters, and sets a framework for the pay and conditions and development for our staff. The Committee receive recommendations from the Universities and Colleges Employers’ Association on
Pay bill spent on facility time
conditions of service and take executive action
Total cost of facility time:
or submit recommendations to the Board as appropriate. The Committee also receives
Total pay bill:
recommendations from management arising
£28,795 £39,330,056
Percentage spent on facility time:
from negotiations between the University and the recognised Unions and take action or submit recommendations to the Board of
0.07%
Paid Trade Union activities
Governors as appropriate. This committee acts
Percentage of paid facility time hours spent on paid TU activities:
as the main point of contact for the recognised trade unions, and is also responsible for hearing any employment appeals on behalf of the Board of Governors.
0.00%
Foundation Committee
Trade Union Facility Time Reporting
Foundation Committee is responsible for discussing, monitoring and making
Recent changes in legislation introduced a
UNIVERSITY OF WINCHESTER
recommendations, on matters related to our
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66
Christian foundation to the Board. They annually
regular reports from the Chaplaincy, Foundation
monitor the interpretation and execution of
Music and the Department of Theology,
the University Mission, Values, Strategic Plan
Religion and Philosophy and other reports as
and Foundation Strategy, and foster wider
appropriate.
development of awareness and debate on
Other Committees
matters of faith, and positive relations between faith communities, the Diocese of Winchester,
In addition to the aforementioned committees,
the Cathedral, the local parish and beyond. This
the University holds the following committee
committee also organises and manages the
meetings.
programme of Foundation events and receives OUR UNIVERSITY COMMITTEE STRUCTURE BOARD OF GOVERNORS
SENATE
Student Academic Council
Senior Management Team Planning and Resources Committee
Human Resources Committee
Equality and Diversity Committee
Remuneration Committee
Joint Health and Safety Committee
University Management Team
Senate Academic Development Committee
Faculty Management Groups
Academic Regulations, Policies and Procedures Committee
Nominations Committee
Student Experience Committee
Standing Committee
Graduate Employability Committee and Further Strategy Group
Faculty Academic Committees
Audit Committee
Research Degree Quality Committee
Senate Research an Knowledge Exchange Committee
RKE Ethics Committee
RKE Grants Committee
PG Cert Programme Committees Committee
Programme Committee Honorary Award Committee
Estates Committee
Faculty RKE Committee
Foundation Committee
KEY Sub-committee of . . . Reporting to . . . .
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Student/Student Union representation
STATEMENT OF INTERNAL CONTROLS
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 2018 and up to the date of approval of the Financial Statements, and accords with HEFCE and OfS guidance.
1. 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, in accordance with the responsibilities assigned to the governing body in the OfS terms and conditions of funding for higher education institutions dated 29 March 2018 (OfS 2018.15).
6. 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.
2. Since the introduction of the OfS, 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 OfS including:
-- The Board receives periodic reports from the Chair of the 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 Audit Committee covering the business of the Committee over that year.
-- The terms and conditions of OfS 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 OfS terms and conditions of funding for higher education institutions.
-- The Board has delegated to the Audit Committee some of the responsibility for providing oversight of risk management.
During this ‘transition phase’ the University has complied with the terms and conditions of
-- The Audit Committee receives regular reports from the internal auditors, which include their independent opinion on the adequacy and effectiveness of the University’s system of internal controls, together with recommendations for improvement.
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)
-- A regular programme of review is undertaken to identify and keep up to date the record of risks facing the organisation.
Regulations 2018. 3. The University complies with the CUC Code of Practice and refers to best practice guidance, including guidance from BUFDG.
-- Risk awareness is facilitated at University and operational levels as appropriate to the risk. Risk management is embedded in the operation of the University.
4. The system of internal controls is designed to manage rather than eliminate the risk of failure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness.
-- 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.
5. The system of internal controls is based
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68
-- An organisation-wide 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 (as outlined on page 37 Understanding Our Risks).
pound (£1.00) towards the costs of dissolution and the liabilities incurred by the University while he or she was a Governor.
GOING CONCERN After making appropriate enquiries, the Board
-- Reports are received from budget holders, department heads and project managers on internal control activities.
of Governors has a reasonable expectation that the University has adequate resources to continue in operational existence for the foreseeable future. For this reason, they
7. 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 OfS Accounts Direction. HEFCE performed its Annual Assessment of Institutional Risk for 2016/17 which was notified on 7 February 2018. The University of Winchester was rated as “not at high risk” by HEFCE, being the lowest risk category achievable. It was also informed by a HEFCE Assurance Review during the year which presented a conclusion that overall HEFCE were able to place reliance on the University’s accountability information.
continue to adopt the going concern basis in preparing the financial statements. Signed on behalf of the Board of Governors:
A C Lovell Chair of Board of Governors
8. The internal auditors submit 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.
Professor J Carter Vice-Chancellor Date
9. 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 auditors in their management letter and other reports.
14 November 2018
GOVERNORS’ LIABILITY ON DISSOLUTION As per section 7 of the Memorandum and Articles of Association every Governor of the University undertakes, if the University is dissolved while he or she is a Governor, or within one year afterwards, to pay up to one
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Independent Auditors’ Report to the Board of Governors of the University of Winchester
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70
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS Opinion We have audited the financial statements of the University of Winchester (“the University”) for the year ended 31 July 2018 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Reserves, Cash Flow Statement and related notes. In our opinion the financial statements: • give a true and fair view of the state of the University’s affairs as at 31 July 2018, 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 2015 Statement of Recommended Practice – Accounting for Further and Higher Education; • meet the requirements of the Accounts Direction dated 19 June 2018 issued by the OfS; and • 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 group in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and
@regishab
appropriate basis for our opinion.
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Going concern
Matters on which we are required to report by exception
We are required to report to you if we have concluded that the use of the going concern
Under the Companies Act 2006, we are
basis of accounting is inappropriate or there is
required to report to you if, in our opinion:
an undisclosed material uncertainty that may
• adequate accounting records have not been kept by the University, or returns adequate for our audit have not been received from branches not visited by us; or
cast significant doubt over the use of that basis for a period of at least twelve months from the date of approval of the financial statements. We have nothing to report in these respects.
• the University’s financial statements are not in agreement with the accounting records and returns; or
Other information
• certain disclosures of directors’ remuneration specified by law are not made; or
The Directors are responsible for the other information, which comprises the Strategic
• we have not received all the information and explanations we require for our audit.
Review incorporating the Operational Review, the Financial Review and the Statement of
We have nothing to report in these respects.
Corporate Governance and Internal Control. Our opinion on the financial statements does not
Board of Governors responsibilities
cover the other information and, accordingly, we do not express an audit opinion or, except as
As explained more fully in their statement set
explicitly stated below, any form of assurance
out on page 53, the Board of Governors (who
conclusion thereon.
are the Directors of the University company for the purposes of company law) are responsible
Our responsibility is to read the other
for: the preparation of the financial statements
information and, in doing so, consider whether,
and for being satisfied that they give a true and
based on our financial statements audit work,
fair view; such internal control as it determines
the information therein is materially misstated
is necessary to enable the preparation of
or inconsistent with the financial statements
financial statements that are free from material
or our audit knowledge. Based solely on that
misstatement, whether due to fraud or error;
work:
assessing the group and parent University’s
• we have not identified material misstatements in the other information;
ability to continue as a going concern,
• in our opinion the information given in the Strategic Review incorporating the Operational Review, the Financial Review and the Statement of Corporate Governance and Internal Control, which together constitute the strategic report and the directors’ report for the financial year, is consistent with the financial statements; and
going concern; and using the going concern
• in our opinion those reports have been prepared in accordance with the Companies Act 2006.
Our objectives are to obtain reasonable
disclosing, as applicable, matters related to basis of accounting unless it either intends to liquidate the group or the parent University or to cease operations, or has no realistic alternative but to do so. Auditors’ responsibilities
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 auditors’ report. Reasonable assurance is a high level of assurance, but does not guarantee that an audit
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72
THE PURPOSE OF OUR AUDIT WORK AND TO WHOM WE OWE OUR RESPONSIBILITIES
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
This report is made solely to the Board of
of users taken on the basis of the financial
Governors, in accordance with Chapter 3 of Part
statements.
16 of the Companies Act 2006 and paragraph
A fuller description of our responsibilities is
13(2) of the University’s Articles of Government
provided on the FRC’s website at
and section 124B of the Education Reform Act
www.frc.org.uk/auditorsresponsibilities
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
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
in an auditors’ 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
We are required to report on the following
Governors for our audit work, for this report, or
matters under the OfS and Research England
for the opinions we have formed.
Audit Codes of Practice issued under the Further and Higher Education Act 1992. In our opinion, in all material respects: • funds from whatever source administered by the Group or the University for specific purposes have been properly applied to those purposes and managed in accordance with relevant legislation;
Rees Batley Senior Statutory Auditor Date: 21 November 2018
• funds provided by the OfS and Research England have been applied in accordance with the terms and conditions attached to them; and
For and on behalf of: KPMG LLP
• funds provided by HEFCE have been applied in accordance with the Memorandum of Assurance and Accountability and any other terms and conditions attached to them.
Statutory Auditor Chartered Accountants Office Address: KPMG LLP, Gateway House, Tollgate, Chandler’s Ford, Eastleigh, Hampshire. SO53 3TG
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Financial Statements Year ended 31 July 2018
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74
UNIVERSITY OF WINCHESTER STATEMENT OF COMPREHENSIVE Statement of Comprehensive Income Year ended 31 July 2018 Year Ended 31 July 2018
INCOME
2018
2017
£'000
£'000
Notes Income Tuition fees and education contracts Funding body grants Research grants and contracts Other income Investment income Total income before endowments and donatons
1 2 3 4 5
59,798 3,586 641 14,673 284 78,982
57,362 3,392 494 13,498 240 74,986
Endowments and donations
5
1
6
78,983
74,992
41,419 28,803 4,844 1,900 76,966
38,828 24,507 4,698 1,741 69,774
2,017
5,218
3,560
2,280
Total comprehensive income for the year
5,577
7,498
Represented by: Endowment Comprehensive Income for the year Unrestricted comprehensive income for the year
1 5,576
6 7,492
5,577
7,498
Total income Expenditure Staff costs Other operating expenses Depreciation Interest and other finance costs Total expenditure
6 7 9 8
Surplus for the year Actuarial gain in respect of pension schemes
All items of income and expenditure relate to continuing activities.
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STATEMENT OF CHANGES IN RESERVE UNIVERSITY OF WINCHESTER Statement Year endedof 31Changes July 2018in Reserves Year Ended 31 July 2018
Endowment
Income and expenditure account
Revaluation reserve
Total
£'000
£'000
£'000
£'000
38
47,725
88,423
136,186
Income and expenditure surplus
1
2,016
-
2,017
Other comprehensive income
-
3,560
-
3,560
Transfers between revaluation and income and expenditure reserves
-
1,976
(1,976)
-
Total comprehensive income for the year
1
7,552
(1,976)
5,577
39
55,277
86,447
141,763
Balance at 31 July 2017
Balance at 31 July 2018
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UNIVERSITY OF WINCHESTER A company limited by guarantee and registered in England and Wales. Registration number: 05969256 BALANCE SHEET Balance Sheet at 31 July Year ended 31 July 2018 2018
Non-current assets Intangible assets Tangible fixed assets Investment Property and Investments
Notes
2018 £'000
2017 £'000
9 10
175 171,238 635
58 163,999 658
172,048
164,715
Current assets Stock Trade and other receivables Investments Cash and cash equivalents
11 12 13
42 3,298 27,582 13,564 44,486
37 3,254 12,534 21,766 37,591
Less: Creditors: amounts falling due within one year
14
(11,182)
(9,242)
33,304
28,349
205,352
193,064
Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year
15
(48,763)
(39,626)
Provisions Pension provisions
16
(14,826)
(17,252)
141,763
136,186
39
38
Unrestricted Reserves Income and expenditure account Revaluation reserve Total Unrestricted Reserves
55,277 86,447 141,724
47,725 88,423 136,148
Total Reserves
141,763
136,186
Total net assets Restricted Reserves Income and expenditure - endowment reserve
The financial statements on pages 66 to 88 were approved and authorised for issue by the Board of Governors onstatements 14 November 2018, and were on its behalf The financial on pages 75 and 98signed were approved andby: authorised for issue by the Board of
Governors on 14 November 2018 and were signed on its behalf by: ……………………………………… ……………………………………… Professor J Carter A C Lovell A C Lovell Professor J Carter Chair of Board of Governors Vice-Chancellor Chair of Board of Governors Vice-Chancellor The notes on pages 70 to 88 form part of these financial statements. The notes on pages 85 to 98 form part of these financial statements.
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UNIVERSITY OF WINCHESTER CASH FLOW STATEMENT Cash Flow Statement Year ended 31ended July 2018 For the year 31 July 2018
31 July 2018 ÂŁ'000
31 July 2017 ÂŁ'000
Cash flow from operating activities Surplus for the year
2,017
5,218
Adjustment for non-cash items Amortisation Depreciation Impairments Fair value gain on Investment Property (Increase) / Decrease in stock Increase in debtors Increase in creditors due within one year Increase in creditors due after one year Increase in provisions Cashflow from operating activities
92 4,844 (60) (5) (64) 995 722 8,541
22 4,698 10 8 (380) 710 36 726 11,048
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
(172) 1,900 (1) (5) (324) 9,939
(189) 1,741 (6) (318) 12,276
5 624 (22,500) 7,452 197 (209) (10,912) (25,343)
520 (31) 2,500 188 (83) (4,490) (1,396)
(457) (1,038) 10,000 (1,041) 1 (263) 7,202
(444) (1,048) (954) 6 (253) (2,693)
(8,202)
8,187
21,766 13,564
13,579 21,766
Notes
Cash flows from investing activities Proceeds from sale of fixed assets Capital grant receipts New investment deposits Investment deposits withdraws Investment income New non-current asset investments 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
(Decrease) / Increase 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
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STATEMENT OF PRINCIPAL ACCOUNTING POLICIES
The financial statements do not include the income and expenditure of Winchester Student Union as the University does not exert significant
FOR THE YEAR ENDED 31 JULY 2018
control or dominant influence over policy Basis of preparation
decisions.
These financial statements have been
Income recognition
prepared in accordance with the Statement of Recommended Practice (SORP): Accounting
Income from the sale of goods or services is
for Further and Higher Education 2015 and in
credited to the Statement of Comprehensive
accordance with Financial Reporting Standards
Income (SCI) when the goods or services are
(FRS) 102. The University is a public benefit entity
supplied to the external customers or the terms
and therefore has applied the relevant public
of the contract have been satisfied.
benefit requirement of FRS 102. The financial
Fee income is stated gross of any expenditure
statements are prepared in accordance with
which is not a discount and credited to the
the historical cost convention (modified by
Statement of Comprehensive Income (SCI)
the revaluation of fixed assets). The financial
over the period in which students are studying.
statements have been prepared on a going
Where the amount of the tuition fees is
concern basis. This assessment has been
reduced, by a discount for prompt payment,
informed by the University’s future financial
income receivable is shown net of the discount.
forecasts/plans and its healthy cash balances.
Bursaries and scholarships are accounted for
In preparing the financial statements of the
gross as expenditure and not deducted from
University, the functional and presentational
income.
currency is sterling. Transactions in currencies
Taxation status
other than the functional currency are recognised at the rates of exchange prevailing at the dates of
The University is an exempt charity within
the transactions. No monetary or non-monetary
the meaning of Part 3 of the Charities Act
items are carried at denominations other than
2011 and is considered to pass the tests set
sterling. The financial statements are presented
out in Paragraph 1 Schedule 6 to the Finance
in thousands of pounds sterling unless stated
Act 2010 and therefore meets the definition
otherwise.
of a charitable company for UK Corporation Tax purposes. Accordingly, the University is
Basis of consolidation
potentially exempt from taxation in respect
At 31 July 2018 the University held significant
of income or capital gains received within
controlling interest in Winchester Business
categories covered by section 478-488 of the
School Limited, Winchester Management
Corporation Tax Act 2010 (CTA 2010) or section
School Limited and the University of Winchester
256 of the Taxation of Chargeable Gains Act,
Academy Trust due to a majority of the share
to the extent that such income or gains are
capital of the entities being held by employees of
applied to exclusively charitable purposes.
the University of Winchester. These companies
The University receives no similar exemption in
have been dormant since incorporation,
respect of Value Added Tax. Irrecoverable VAT
therefore the finance statements do not
on inputs is included in the cost of such inputs.
consolidate the results of these companies.
Any irrecoverable VAT allocated to fixed assets
Each company is registered in England at The
is included in their cost.
University of Winchester, Winchester, SO22 4NR.
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Grant funding
Capital grants
Government revenue grants, including funding
Government capital grants are recognised in
council block grant and research grants, are
income over the expected useful life of the
recognised in income over the periods in which
asset. Other capital grants are recognised in
the University recognises the related costs for
income when the University is entitled to the
which the grant is intended to compensate.
funds subject to any performance related
Where part of a government grant is deferred,
conditions being met.
it is recognised as deferred income within
Accounting for retirement benefits
creditors and allocated between creditors due within one year and due after more than one
The University contributes to the Local
year as appropriate.
Government Pension Scheme (LGPS), the Teachers’ Pension Scheme (TPS) and the
Grants (including research grants) from non-
University Superannuation Scheme (USS). The
government sources are recognised in income
schemes are defined benefit schemes but the
when the University is entitled to the income
TPS and USS schemes are multi-employer
and performance related conditions have
schemes where it is not possible to identify
been met. Income received in advance of
the assets of the scheme that are attributable
performance related conditions being met is
to the University. Accordingly these schemes
recognised as deferred income within creditors
are accounted for as a defined contribution
on the balance sheet and released to income as the conditions are met.
basis and contributions to the schemes are
Donations and endowments
which they are payable.
Non exchange transactions without
The University is able to identify its share
performance related conditions are donations
of the assets and liabilities of the LGPS and
and endowments. Donations and endowments
accordingly the University recognises its share
with donor imposed restrictions are recognised
of the scheme’s assets and liabilities in its
in income when the University is entitled to the
balance sheet.
recognised as expenditure in the period to
funds.
A liability is recorded within provisions for any
Income is retained within the restricted reserve
contractual commitment to fund past deficits
until such time that it is utilised in line with
within the USS scheme.
such restrictions at which point the income is
Employment benefits
released to general reserves through a reserve transfer.
Short term employment benefits such as salaries and compensated absences are
Donations with no restrictions are recognised
recognised as an expense in the year in which
in income when the University is entitled to the funds.
the employees render service to the University.
Investment income and appreciation of
as the additional amount the University expects
endowments is recorded in income in the
to pay as a result of the unused entitlement.
Any unused benefits are accrued and measured
year in which it arises and as either restricted
Enhanced Pensions
or unrestricted income according to the terms or restrictions applied to the individual
The actual cost of any enhanced on-going
endowment fund.
pension to a former member of staff is paid by a
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80
university annually. An estimate of the expected
August 2014 were valued by Alder King. The
future cost of any enhancement to the on-going
valuations were on a depreciated replacement
pension of a former member of staff is charged
cost basis for specialist assets and at market
in full to the University’s income in the year that
value where this was reasonable to obtain.
the member of staff retires. In subsequent years
The University followed the transitional
a charge is made to provisions in the balance
arrangements as at 31 July 2014 and does not
sheet using a basis provided by the funding
intend to carry out regular revaluations of these
bodies.
assets in the future.
Finance leases
Depreciation and impairment losses are subsequently charged on the revalued amount.
Leases in which the University assumes substantially all the risks and rewards of
Subsequent costs incurred that enhance the
ownership of the leased asset are classified as
asset are capitalised and recognised at cost.
finance leases. Leased assets acquired by way
Freehold land is not depreciated as it is
of finance lease and the corresponding lease
considered to have an indefinite useful life.
liabilities are initially recognised at an amount equal to the lower of their fair value and the
Buildings, plant and machinery are depreciated
present value of the minimum lease payments
on a straight line basis over their expected
at the inception of the lease.
useful lives at the date of the 1 August 2014 valuation
Minimum lease payments are apportioned between the finance charge and the reduction
Buildings: between 10 and 50 years
of the outstanding liability. The finance charge is
Plant and Machinery: between 5 and 20 years
allocated to each period during the lease term so as to produce a constant periodic rate of
No depreciation is charged on assets in the
interest on the remaining balance of the liability.
course of construction and finance costs which are directly attributable to the construction of
Operating leases
land and buildings are capitalised as part of those assets.
Costs in respect of operating leases are charged to the Statement of Comprehensive
Equipment
Income in the period in which they are incurred.
Equipment, including computers and software,
Fixed assets
costing less than de minimis of ÂŁ5,000 per individual item are recognised as expenditure.
Where parts of a fixed asset have different
All other equipment is capitalised.
useful lives, they are accounted for as separate items of fixed assets. Fixed assets are stated
Capitalised equipment is stated at cost and
at cost less accumulated depreciation and
depreciated over its expected useful life as
accumulated impairment losses. Only items
follows:
of capital expenditure with a value of ÂŁ5,000 or
IT equipment: 3 years
more per individual item are recognised as fixed
Motor vehicles: 5 years
assets.
Fixtures and fittings: 10 years
Land and buildings
Depreciation methods, useful lives and residual values are reviewed at the date of preparation
Land and buildings that were owned by the
of each Balance Sheet.
University at the FRS 102 transition date of 1
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Borrowing costs
Provisions, contingent liabilities and contingent assets
Borrowing costs are recognised as expenditure in the period in which they are incurred.
Provisions are recognised in the financial statements when:
Intangible assets
• the University has a present obligation (legal or constructive) as a result of a past event;
Intangible assets are amortised over a period of between 3 and 10 years representing the subject to impairment review each year.
• it is probable that an outflow of economic benefits will be required to settle the obligation; and
Investment Properties
• a reliable estimate can be made of the amount of the obligation.
estimated economic life of the assets and are
The amount recognised as a provision is
Investment property consists of land and
determined by discounting the expected future
buildings held for rental income or capital
cash flows at a rate that reflects risks specific to
appreciation (or both) rather than for use in
the liability.
delivering services. Investment properties are revalued at 31 July each year at market value
A contingent liability arises from a past event
with movements recognised in the Statement
that gives the University a possible obligation
of Comprehensive Income (SCI).
whose existence will only be confirmed by the occurrence or otherwise of uncertain
Investments
future events not wholly within the control of
Non-current asset investments are held on
the University. Contingent liabilities also arise
the Balance Sheet at fair value unless it is not
in circumstances where a provision would
possible to determine a value in which case
otherwise be made but either it is not probable
they are held at amortised cost less impairment.
that an outflow of resources will be required
Current asset investments are included in the
or the amount of the obligation cannot be
balance sheet at fair value.
measured reliably.
Stocks
A contingent asset arises where an event has taken place that gives the University a possible
Stocks are valued at the lower of cost and net
asset whose existence will only be confirmed
realisable value.
by the occurrence or otherwise of uncertain future events not wholly within the control of
Cash and cash equivalents
the University. Contingent assets and liabilities are not recognised in the Balance Sheet but are
Cash includes cash in hand, deposits repayable on demand and overdrafts.
disclosed in the notes.
Short term deposits that exist at the balance
Reserves
sheet date that have a maturity term of
Reserves are classified as restricted or
less than 3 months are classified as cash
unrestricted. Restricted endowment reserves
equivalents. Those with more than 3 months are
include balances which, through endowment
classified as non-current investment assets.
to the University, are held as a permanently restricted fund which the University must hold in perpetuity. Other restricted reserves include balances
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82
where the donor has designated a specific
University is exposed to minimal risk or enjoys
purpose and therefore the University is
minimal economic benefit related to the
restricted in the use of these funds.
transaction.
Key Estimates and Judgements In preparing these financial statements, management have made the following judgements: Tangible fixed assets Determine whether there are indicators of impairment of the University’s assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset. Local Government Pension Scheme The present value of the Local Government Pension Scheme defined benefit liability depends on a number of 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 24, will impact the carrying amount of the pension liability. Furthermore a roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 2016 has been used by the actuary in valuing the pensions liability at 31 July 2018. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability. Agency arrangements The University acts as an agent in the collection and payment of discretionary support funds. Related payments received from the funding bodies and subsequent disbursements to students are excluded from the income and expenditure of the University where the
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NOTES TO ACCOUNTS FOR YEAR ENDED 31 JULY 2018
Notes to accounts Year ended 31 July 2018
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84
Notes to the Accounts
NOTES TO31ACCOUNTS FOR YEAR ENDED 31 JULY 2018 for the year ended July 2018 Note 1
Tuition fees and education contracts Full-time home and EU students Full-time international students Part-time students Self-financing courses
Note 2
Funding body grants Recurrent grant from HEFCE Recurrent research grant Specific grants
2018 £'000 51,860 4,061 1,597 2,280 59,798
2017 £'000 49,010 4,355 1,624 2,373 57,362
2018 £'000 1,848 791 947 3,586
2017 £'000 2,145 772 475 3,392
From April 2018 the recurrent grant from HEFCE was received from the Office for Students totalling £446k, and from April 2018 the recurrent research grant was received from UK Research and Innovation totalling £279k.
Note 3
Research grants and contracts Grants
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 Staff Costs : Salaries Social security costs Other pension costs Apprenticeship levy Total Salaries include redundancy payments of £198,675 (2016/17: £164,055)
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2018 £'000 641
2017 £'000 494
2018 £'000 12,548 229 1,896 14,673
2017 £'000 11,597 230 1,671 13,498
2018 £'000 172 60 52 1 285
2017 £'000 189 51 6 246
2018 £'000
2017 £'000
32,595 3,125 5,553 146 41,419
30,610 2,925 5,247 46 38,828
NOTES TO ACCOUNTS FOR YEAR ENDED 31 JULY 2018 Note 6
Staff costs (continued) The highest paid director is the Vice-Chancellor whose emoluments are: 2018 £ 219,184 4,310 39,452 262,946 4,698 2,733 270,377
Basic salary Performance related pay Additional allowance Sub-total Pension Contributions Salary sacrifice arrangements Other taxable benefits Total emoluments including pension costs
2017 £ 215,520 38,793 254,313 4,526 2,450 261,289
Additional allowance represents payments payments in lieu of pension contributions. The Vice-Chancellor does not benefit from employer pension contributions. Other taxable benefits represents payments made to a private medical health scheme. The Vice-Chancellor's basic salary, expressed as a multiple of all other employees, is 6.7 times the median pay of staff, where the median pay is calculated on a full-time equivalent basis for the salaries paid by the University of its staff. The Vice-Chancellor's remuneration, expressed as a multiple of all other employees, is 6.9 times the median total remuneration of staff, where the median total remuneration is calculated on a full-time equivalent basis for the total remuneration by the University of its staff. The basic salary and remuneration ratios have been calculated excluding atypical workers and agency staff. The University does not currently record timesheets locally for agency staff and does not have sufficient full time equivalent data to accurately report the pay ratios including atypical and agency workers.
In accordance with the OfS Accounts Direction (OfS 2018.26) 15 c, the University is required to provide an explanation of the process adopted for judging the performance and total remuneration package for the head of the institution, the Vice-Chancellor. The remuneration of the Vice-Chancellor is based on robust evidence, comprising a combination of: • Performance against personal objectives • The performance of the University against its KPIs and targets • Relevant benchmarking comparators In relation to benchmarking, particular attention is given to comparator data for the heads of providers of similar sized higher education sector institutions. Account is also taken of the outcome of higher education sector pay negotiations for staff on the national pay spine. Further information regarding the Vice-Chancellors remuneration is outlined under 'Vice-Chancellors Emoluments' on page 65.
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NOTES TO ACCOUNTS FOR YEAR ENDED 31 JULY 2018 Notes to the Accounts Note 6
Staff costs (continued) The number of staff with a basic salary exceeding £100,000 per annum, excluding pension contributions, is:
£100,000 £105,000 £110,000 £115,000 £120,000 £125,000
to to to to to and
£104,999 £109,999 £114,999 £119,999 £124,999 above
Average staff numbers by major category : By Headcount Academic Administration
By full time equivalent staff (FTE) Academic Administration
2018 Number
2017 Number
1 1 2
1 1 2
Headcount 422 546 968
Headcount 407 524 931
FTE 340 463 803
FTE 329 446 775
£'000 -
£'000 -
Compensation for loss of office payable to a senior post-holder: Compensation payable recorded within staff costs
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 Deputy Vice-Chancellor, the Assistant Vice-Chancellor and members of the Board of Governors who are also members of staff of the University. 2018 2017 The number of key management personnel
8
8
2018 £'000 837 104 50 991
2017 £'000 775 96 46 917
Staff costs includes compensation paid to key management personnel as follows:
Salaries Social security costs Other pension costs Key management personnel compensation
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NOTES TO ACCOUNTS FOR YEAR ENDED 31 JULY 2018 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: External auditor's remuneration in respect of audit services External auditor's remuneration in respect of non-audit services Internal Audit
Note 8
Interest and other finance costs Interest on bank loans Interest on finance leases Net interest on defined benefit scheme
Note 9
2018 £'000 5,023 1,667 1,616 2,910 1,232 2,704 300 284 13,067 28,803
2017 £'000 3,833 1,520 1,770 2,531 1,138 2,526 290 229 10,670 24,507
2018 £'000
2017 £'000
31 31 34
31 19 13
2018 £'000
2017 £'000
455 1,033 412 1,900
442 886 413 1,741
Fixed Assets
Cost and valuation At 1 August 2017 Additions Transfers Impairment Disposals At 31 July 2018 Depreciation At 1 August 2017 Charge for the year Disposals At 31 July 2018 Net book value At 31 July 2018 At 31 July 2017
Freehold Land and Buildings £'000
Leasehold Land and Buildings £'000
Assets in the Course of Construction £'000
£'000
149,187 1,128 669 150,984
27,468 27,468
398 109 (15) 492
3,736 772 4,508
3,049 10,074 (669) 12,454
183,838 12,083 (15) 195,906
10,745 3,778 14,523
6,145 485 6,630
267 72 (15) 324
2,682 509 3,191
-
19,839 4,844 (15) 24,668
136,461
20,838
168
1,317
12,454
171,238
138,442
21,323
131
1,054
3,049
163,999
UNIVERSITY OF WINCHESTER
Equipment, Motor Furniture and Vehicles Fittings £'000 £'000
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INTEGRATED ANNUAL REPORT
Total
88
NOTES TO ACCOUNTS FOR YEAR ENDED 31 JULY 2018 Notes to the Accounts
Note 9
Fixed Assets (continued) The net book value of Leasehold Land and Buildings includes an amount of £20,838 (2017: £21,323k) 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 SORP for Further and Higher Education. The University took the transitional provision under FRS102 section 35 to elect to use fair value as deemed cost. The valuation of each part of University of Winchester was on the following bases of value and assumptions: - Owner-occupied property - to Fair Value ('FV') assuming that the property would be sold as part of the continuing business - Specialised property - to FV using the depreciated replacement cost ('DRC') approach and assuming that the property would be sold as part of the continuing business
Note 10 Investments and Investment Property The University holds two classes of investments as follows:
10 a)
Investments Hampshire Community Bank
10 b)
Investment Property Opening balance Additions to investment property in the year Reduction of investment property in the year Fair value gain / (loss) on Investment Property Closing balance Total Investments and Investment Property
2018 £'000 100 100
2017 £'000 100 100
2018 £'000 558 (83) 60 535
2017 £'000 485 83 (10) 558
635
658
The investment property fair value gain of £60k 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 31/7/2018. The valuation report was prepared in accordance with the RICS Valuation – Global Standards 2017 incorporating the International Valuation Standards (“Red Book”) and the RICS Professional Standards January 2014 (revised April 2015), FRS 102 and the SORP (For Further and Higher Education).
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NOTES TO ACCOUNTS FOR YEAR ENDED 31 JULY 2018 Notes to the Accounts
Note 11 Trade and other receivables Amounts falling due within one year: Debtors Prepayments and accrued income
Note 12 Current Investments Nationwide 95 Day Saver Lloyds Fixed Rate Bonds Lloyds 175 Day Account Triodos 95 Day Deposit Account
Note 13 Cash and cash equivalents Cash and cash equivalents
2018 £'000
2017 £'000
1,024 2,274 3,298
1,502 1,752 3,254
2018 £'000 12,570 5,007 10,005 27,582
2017 £'000 5,034 7,500 12,534
2018 £'000 13,564 13,564
2017 £'000 21,766 21,766
2018 £'000 1,065 274 792 1,266 995 6,446 21 323 11,182
2017 £'000 1,006 263 371 991 914 5,345 34 318 9,242
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
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NOTES TO ACCOUNTS FOR YEAR ENDED 31 JULY 2018 Notes to the Accounts
Note 15 Creditors : amounts falling due after more than one year
Mortgages and unsecured loans Obligations under finance lease Funding Council loan Deferred Capital Grants
2018 £'000 14,658 24,341 32 9,732 48,763
2017 £'000 5,723 24,615 54 9,234 39,626
2018 £'000 1,111 1,790 11,757 14,658
2017 £'000 1,065 2,005 2,653 5,723
Maturity of debt 15 a)
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
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. £0.981m remains outstanding at 31 July 2018. 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. £1.244m remains outstanding as at 31 July 2018. 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. £3.498m remains 8 outstanding as at 31 July 2017. 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. In May 2018 £10.0m of the facility was utilised, the loan amortising over 25 years at a 3.09% rate of interest, fixed until 1st June 2028. The £10.0m remains outstanding as at 31 July 2018. 15 b)
Finance leases The finance lease obligations that the University is committed to are as follows: 2018 £'000 274 1,219 23,122 24,615
Between one and two years Between two and five years In five years or more
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2017 £'000 263 1,170 23,445 24,878
Notes YEAR to the Accounts NOTES TO ACCOUNTS FOR ENDED 31 JULY 2018 LGPS Scheme USS Scheme £'000 £'000 16,350 510 1,220 0 (3,560) (76) 14,010 434
Note 16 Provisions for liabilities At 31 July 2017 Utilised in year Charge to Income and Expenditure Account At 31 July 2018
Enhanced Pensions £'000 392 (40) 30 382
Total £'000 17,252 1,180 (3,606) 14,826
USS deficit The obligation to fund the past deficit on the Universities Superannuation Scheme (USS) arises from the contractual obligation with the pension scheme for total payments relating to benefits arising from past performance. Management have assessed future employees within the USS scheme and salary payment over the period of the contracted obligation in assessing the value of this provision. Enhanced Pension Provision The enhanced pension provision relates to the cost of staff that have already left the University employ 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: 2018 2017 Price inflation 7.74% 6.32%
Note 17 Lease obligations Payable during the year 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
2018 £'000
2017 £'000
1,880
1,895
1,917 5,727 32,825 40,469
1,889 5,604 34,708 42,201
337
Receivable during the year Future minimum lease payments receivable Payable not later than 1 year Later than 1 year and not later than 5 years Later than 5 years Total lease payments receivable
321
306 1,232 4,305 5,843
337 1,238 4,605 6,180
2018 £'000
2017 £'000
37,551
1,137
Note 18 Capital commitments
Commitments contracted for
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NOTES TO ACCOUNTS FOR YEAR ENDED 31 JULY 2018 Notes to the Accounts
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 £18,960 through until March 2022. Note 20 Events after the reporting period There are no matters to report. Note 21 Defined Benefit Obligations The University's employees belong to two principal post-employment benefit plans: the Teachers’ Pension Scheme England and Wales (TPS) for academic and related staff; and the Hampshire County Council Pension Fund which is part of the Local Government Pension Scheme (LGPS) for non-teaching staff. Both are multiemployer defined-benefit plans. Teachers’ Pension Scheme The Teachers' Pension Scheme (TPS) 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 Act. 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.
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NOTES TO ACCOUNTS FOR YEAR ENDED 31 JULY 2018 Teachers’ Pension Scheme (continued) Valuation of the Teachers’ Pension Scheme The latest actuarial review of the TPS was carried out as at 31 March 2012 and in accordance with The Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014. The valuation report was published by the Department for Education (the Department) on 9 June 2014. The key results of the valuation are: - New employer contribution rates were set at 16.48% of pensionable pay (including administration fees of 0.08%) - total scheme liabilities for service to the effective date of £191.5 billion, and notional assets of £176.6 billion, giving a notional past service deficit of £15.0 billion. - an employer cost cap of 10.9% of pensionable pay. The new employer contribution rate for the TPS was implemented in September 2015. A full copy of the valuation report and supporting documentation can be found on the Teachers’ Pension Scheme website at the following location: https://www.teacherspensions.co.uk/news/employers/2014/06/publication-of-the-valuation-report.aspx Scheme Changes Following the Hutton report in March 2011 and the subsequent consultations with trade unions and other representative bodies on reform of the TPS, the Department published a Proposed Final Agreement, setting out the design for a reformed TPS to be implemented from 1 April 2015. The key provisions of the reformed scheme include: a pension based on career average earnings; an accrual rate of 1/57th; and a Normal Pension Age equal to State Pension Age, but with options to enable members to retire earlier or later than their Normal Pension Age. Importantly, pension benefits built up before 1 April 2015 will be fully protected. The pension costs paid to TPS in the year amounted to £2.45m (2017: £2.30m) FRS 102 (28) Under the definitions set out in FRS 102 (28.11), the TPS is a multi-employer pension plan. The University is unable to identify its share of the underlying assets and liabilities of the plan. Accordingly, the University has taken advantage of the exemption in FRS 102 and has accounted for its contributions to the scheme as if it were a defined-contribution plan. The University has set out above the information available on the plan and the implications for the University in terms of the anticipated contribution rates. Local Government Pension Scheme The LGPS is a funded defined-benefit plan, with the assets held in separate funds administered by Hampshire County Council. The total contributions made for the year ended 31 July 2018 were £2.6m of which employer’s contributions totalled £1.97m and employees’ contributions totalled £0.63m. The agreed contribution rates for future years are 18% for employers and range from 5.5% to 12.5% for employees, depending on salary.
On 26 October, 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”. The Government will need to consider this outcome in conjunction with the Government’s recent consultation on GMP indexation in public sector schemes before concluding on any changes required to LGPS schemes.
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NOTES TO ACCOUNTS FOR YEAR ENDED 31 JULY 2018 Notes to the Accounts
Local Government Pension Scheme (continued) Principal Actuarial Assumptions The following information is based upon a full actuarial valuation of the fund at 31 March 2016 updated to 31 July 2018 by a qualified independent actuary. 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 2018
31 July 2017
31 July 2016
31 July 2015
(% 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
(% pa) 2.4 2.9 1.8 1.8 1.8 3.3
(% pa) 3.6 3.2 2.1 2.1 2.1 3.6
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. 2018 2017 Retiring today Male 24.1 24.0 Female 27.2 27.0 Retiring in 20 years Male Female
26.2 29.4
26.0 29.3
Asset Allocation Value at 31 July 2018 63.6% 7.0% 23.1% 1.1% 2.1% 3.1% 100.0%
Equities Property Government bonds Corporate bonds Cash Other
Value at 31 July 2017 61.2% 6.5% 24.8% 1.1% 3.0% 3.4% 100.0%
The amount included in the balance sheet in respect of the defined benefit pension plan is as follows: 2018 ÂŁ'000 39,510 (53,520) (14,010)
Fair value of plan assets Present value of plan liabilities Net pensions liability (note 19)
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2017 ÂŁ'000 34,210 (50,560) (16,350)
NOTES TO ACCOUNTS FOR YEAR ENDED 31 JULY 2018 Notes to the Accounts Local Government Pension Scheme (continued) Amounts recognised in the Statement of Comprehensive Income in respect of the Plan are as follows:
Amounts included in staff costs Current service cost Interest on net defined benefit liability Total Amounts recognised in Other Comprehensive Income Asset gains arising during the period Liability gains arising during the period Amount recognised in Other Comprehensive Income
2018 £'000 2,790 400 3,190
2017 £'000 2,600 400 3,000
2018 £'000 2,690 870 3,560
2017 £'000 1,520 760 2,280
The split of the liabilities at the last valuation between the various categories of members is as follows: Active members 52% Deferred Pensioners 14% Pensioners 34% Changes in the present value of defined benefit obligations Defined benefit obligations at start of period Current service cost Interest expense on defined benefit obligation Contributions by participants Actuarial gains Net benefits paid out Past service cost Net increase in liabilities from disposals and acquisitions Curtailments and settlements Defined benefit obligations at end of period Changes to the fair value of assets Opening fair value of assets Interest income on assets Re-measurement gains on assets Employer contributions Contributions by participants Net benefits paid out Fair value of plan assets at end of period Actual return on assets Interest income on assets Gain on assets
2018 £'million 50.56 2.79 1.31 0.63 (0.87) (0.90) 53.52
2017 £'million 47.28 2.60 1.14 0.58 (0.76) (0.28) 50.56
2018 £'million 34.21 0.91 2.69 1.97 0.63 (0.90) 39.51
2017 £'million 29.85 0.74 1.52 1.80 0.58 (0.28) 34.21
2018 £'million 0.91 2.69 3.60
2017 £'million 0.74 1.52 2.26
Reconciliation of funded status to balance sheet Year ending 31 July 2018 £'million 39.51 (53.52) (14.01)
Fair value of assets Present value of (liabilities) (Liability) recognised on the balance sheet
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Year ending 31 July 2017 £'million 34.21 (50.56) (16.35)
Year ending 31 July 2016 £'million 29.85 (47.28) (17.43)
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NOTES TO ACCOUNTS FOR YEAR ENDED 31 JULY 2018 Notes to the Accounts
Note 22 Financial instruments The University has chosen to adopt Sections 11 and 12 of FRS 102 in full in respect of financial instruments.
Financial assets and liabilities Financial assets and financial liabilities are recognised when the University becomes a party to the contractual provisions of the instrument. Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations rather than the financial instrument's legal form. All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets measured at fair value through the profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless arrangement constitutes a financing transaction. A financial asset or financial liability that is payable or receivable in one year is measured at the undiscounted amount expected to be received or paid net of impairment, unless it is a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
The financial instruments may be analysed as follows:
Financial assets that are debt instruments measured at amortised cost Financial liabilities measured at amortised cost
2018 £'000 42,269 (47,349)
2017 £'000 35,902 (36,305)
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. 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 usual 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:
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NOTES TO ACCOUNTS FOR YEAR ENDED 31 JULY 2018 Notes to the Accounts
Note 23 Related party Transactions (continued) (Income)/ expenditure £'000
Name of organisation
Nature of interest
Higher Education Funding Council (HEFCE)
Our Deputy Vice Chancellor acted as a Governor on the Audit Committee of the council Our Vice-Chancellor acts as Chair of the Executive Board of GuildHE Our Chair of Governors acts as Chair of Trustees for the trust Our Chair of Governors acts as Chair of Trustees for the trust Our Vice-Chancellor acts as a member of the agency's Board Our Chair of Governors acts as a Trustee for the trust
GuildHE Hampshire Cultural Trust The Mary Rose Trust Quality Assurance Agency (QAA) Winchester Cathedral Trust Winchester Student Union
Universities and Colleges Admissions Service (UCAS)
The 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. Our Vice Chancellor acts as a Governor on the agency's Board
(Debtor)/ creditor £'000
(1,123)
-
33
-
20
-
10
-
20
-
12
-
Payments
341
-
Receipts
(220)
(72)
Payments Receipts
155 (20)
6 (24)
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 (2017: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 £1,962 (2017:£1,081). 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.
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REGISTERED OFFICE:
PRINCIPAL BANKERS:
University of Winchester
Nat West Bank PLC
Sparkford Road
105 High Street
Winchester, Hampshire
Winchester
SO22 4NR
SO23 9AW
TELEPHONE:
EXTERNAL AUDITOR:
01962 841515
KPMG LLP
Gateway House
FACSIMILE:
Tollgate, Chandler’s Ford
01962 842280
Eastleigh, SO53 3TG
WEBSITE: www.winchester.ac.uk
INTERNAL AUDITOR: Southern Internal Audit Partnership
The University of Winchester is a private
Corporate Services
charitable company limited by guarantee in
Hampshire County Council
England and Wales.
The Castle
REGISTERED NUMBER:
Winchester,
05969256 (England and Wales)
SO23 8UB
SENIOR OFFICERS AND ADVISORS:
LAWYERS:
Chancellor
Blake Morgan
Alan Titchmarsh
New Kings Court
Chancellor Emeritus
Tollgate, Chandlers Ford
Dame Mary Fagan
Eastleigh
Vice-Chancellor and Accountable Officer
SO53 3LG
Professor Joy Carter First Deputy Vice-Chancellor Professor Elizabeth Stuart Deputy Vice-Chancellor Professor Neil Marriott Assistant Vice-Chancellor Colette Fletcher Clerk to the Board of Governors Nigel Trethewy
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INTEGRATED ANNUAL REPORT 2017-18
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Integrated Annual Reporting Year ending 31 July 2018
101
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INTEGRATED ANNUAL REPORT 2017-18