Annual Report and Financial Statements 2023

ANNUAL REPORT AND FINANCIAL STATEMENTS 2023

OVERVIEW OF THE YEAR FROM THE VICE CHANCELLOR AND CHIEF EXECUTIVE, PROFESSOR REBECCA BUNTING

Last year, I wrote about how 2021/22 had been a period of significant change and how the University had quickly adapted to a volatile external environment. While many of these challenges remain, the focus this year has been on pushing forward with our Transforming Bedfordshire Strategy, now in its second year.

This new Annual Report accompanying the Financial Statements sets out the highlights and challenges of the year by telling the stories behind our work and demonstrating the difference the University is making locally, regionally, nationally and globally.

Our students continue to give positive feedback about their experiences, and we were very pleased to be placed mid-table in the Times Higher Education (THE) positivity ranking for the outcomes of the National Student Survey.

We were especially proud this year to install Sarfraz Manzoor as our new Chancellor. A renowned author, broadcaster and screenwriter, Sarfraz grew up in Luton. The appointment of a Chancellor with local links is significant for many reasons, not least in that it coincides with the launch of a Civic Agreement for Luton, in which we outline our shared ambition to make Luton a healthy, fair and sustainable town where everyone can thrive. This is a significant step in partnership between the University and Luton Borough Council.

Following the positive outcomes in the most recent Research Excellence Framework, we approved a new Research and Innovation Strategy. As part of this, I am delighted that we have implemented a new promotion pathway for academics to progress to Associate Professor and Professor positions, allowing us to retain the best talent and continue to build our reputation for research excellence.

A further significant development in the year was the establishment of a £3m research and innovation hub to focus on ways to improve health and social care inequalities across the region, in partnership with the Bedfordshire, Luton & Milton Keynes Health and Care Partnership.

We were proud to be awarded first place in England (out of 25 institutions) and second place in the UK in the latest People & Planet University Green League, up five places from last year. This result reinforces our commitment to a sustainable teaching and research environment and climate-friendly future and was one of three sustainability awards we received in the last 12 months.

We also celebrated the outcome of the latest Knowledge Exchange Framework, which ranks our work with businesses and the community. For the sixth year running, Bedfordshire has been placed in the top five per cent of all UK universities for our work with a very wide range of employers, particularly in the area of skills.

It is these strong links with businesses that have played an important role in developing our successful apprenticeship programme. In March, we received the outcome of the first full Ofsted inspection of our apprenticeship provision, which was graded ‘Good’ in all areas, with some excellent commentary on the quality of our courses and staff. This outcome gives us the confidence to expand our provision to support the local workforce to develop vital skills that will support the regional economy in the long term.

During the year we held over 30 graduation ceremonies at the University, always wonderful occasions, with further ceremonies overseas at partner universities and colleges. Included in this number was a very moving

ceremony at our Bedford campus to award honorary degrees to more than 250 women who trained at the campus when it was the Bedford Physical Training College (later Bedford College of Physical Education), some of whom studied during the Second World War. It was a very special occasion.

Higher Education is very much under political and public scrutiny at this time: constrained funding, new conditions of registration, greater competition for students, skills needs in the economy, the impact of cost of living increases – all have a major impact on what we do. Our University is well-placed to deal with these and many more challenges. We are enterprising and focussed, buoyed by the progress we have made this year, a strong community proud of our mission and committed to ensuring positive impacts across all areas of our work.

I would like to thank all colleagues across the University who have contributed to the successes of the past year. The external environment continues to create challenges and I am very grateful for the diligence and creativity with which we respond.

Professor Rebecca Bunting

Vice Chancellor and Chief Executive

University of Bedfordshire

WELCOMING OUR NEW CHANCELLOR SARFRAZ MANZOOR

In February 2023, we announced that the author, broadcaster and screenwriter, Sarfraz Manzoor, had been appointed as our new Chancellor.

Sarfraz was born in Pakistan and grew up in Luton. In recent years, he has received critical acclaim for his writing which has often reflected on identity, belonging and the challenges and opportunities of multiculturalism. He gained international recognition when his memoir ‘Greetings from Bury Park’ (2007), which described his childhood growing up in Luton in a British-Pakistani family, was adapted into the 2019 feature film ‘Blinded by the Light’.

Following his appointment, Sarfraz spoke about how he looks forward to being able to give something back to the town that has given him so much:

“Having grown up in the town, having walked past the University and having spent many, many hours wandering through The Arndale (now known as The Mall), the idea that I could have a role as chancellor of that University just felt really meaningful. What I’m hoping really is to just be someone who can remind people that you can come from a very, very humble background and make a fairly interesting and meaningful life for yourself through educational opportunities –and a bit of luck!

“In terms of what I can offer, I’ll be discussing with the University about what I can contribute – whether it’s doing masterclasses, bringing in special guests or doing some kind of drop-in sessions where I can talk to students and give advice, but that’s all to be confirmed. But I’m really happy to help in any way I can to try and give something back to the town that’s given me so much.”

HIGHLIGHTS FROM THE YEAR SEPTEMBER SUMMER 2022 OCTOBER

Taster research placements enrich and inspire local students

Over the summer, Year 12 students from disadvantaged backgrounds were given the chance to get involved in research projects to inspire and support their development in a chosen field. The Nuffield Research programme provides hands-on opportunities for young students to make supervised contributions towards a host organisation’s research-based work in areas such as science, social science, computing, technology, engineering and maths. The University has been working with the Nuffield Research Programme for more than a decade to offer local students practical experience of what university study is like and how it can open up career options.

New academy launched to enhance student experience

In September, we launched a new Academy for Learning & Teaching Excellence to provide academic development and knowledge exchange. The Academy is central to delivering our Education and Student Experience Strategy by supporting the student journey and graduate career prospects, as well as delivering comprehensive training for academics and much more.

Research celebrated at public exhibition

In October, we opened an interactive exhibition to showcase the value and breadth of our research. The ‘Made at Bedfordshire’ exhibition was open to the public and aimed to celebrate the University’s invaluable research and demonstrate its impact on communities and individuals.

Black History Month marked with events series

We celebrated Black History Month by hosting a series of public and student-facing events throughout October. The theme for this year’s celebration was Time for Change: Action Not Words which focused on educating allies and encouraging them to actively take part in bringing about real change.

Joint heritage project with Northampton University

Also in October, we announced that we would be pooling our expertise with the University of Northampton to keep alive the heritage of Luton and Corby for ambitious culture and community projects. The project is supported by the Heritage Lottery Fund and will see both institutions deliver heritage-related educational projects in both towns.

NOVEMBER

JANUARY FEBRUARY MARCH

In November, students studying Professional Policing, Forensic Science, Paramedic Science and Criminology took part in a mock crime scene event, hosted on the grounds of our Putteridge Bury campus. The night-time crime scene is an annual event hosted by the School of Life Sciences in collaboration with other Schools across the University, including the School of Applied Social Sciences. It provides students with an opportunity to learn what it is like to work with other agencies to support victims, find and analyse evidence and help to solve a crime.

Chris Packham delivers inspirational lecture as part of our ‘An Evening With’ series

Renowned naturalist and broadcaster, Chris Packham CBE, was welcomed to our Luton campus in January by more than 200 people who gathered to hear his inspirational lecture on sustainability, climate action and the environment. The free public event, which was part of the University’s ‘An Evening With’ series, had a green, no-waste policy in line with our Target Zero ambitions.

Support for students with cost of living hub

In February, we launched a digital Cost of Living Hub to help support students who may be struggling with the increased cost of food, energy and general living bills. The Hub helps them easily find the support they require at the tap of a button. This important tool comes as research by the Sutton Trust revealed that nearly two-thirds (63%) of students are spending less on food and essentials due to the rising cost of living.

Civic Agreement signed with Council

In March, we signed our first-ever Civic Agreement with Luton Borough Council signalling a commitment to working together to transform the town and its people. Both organisations will collaborate on special projects centred on place, public and partnerships, helping to deliver the town’s ‘Luton 2040 Vision’ of a place to thrive. The agreement also sets out how we will use the power of our research, education and enterprise to shift long-standing societal problems in the town.

Glowing Ofsted report for our apprenticeship programme

Also in March, we announced that our apprenticeship programme was rated ‘Good’ in all areas following an intensive assessment by seven Ofsted Inspectors. High-scoring areas included the quality of education, behaviour, attitude and personal development, as well as leadership and management of our provision.

Students test skills at mock crime scene

MARCH

APRIL MAY JUNE

We sign up to the Race Quality Charter

We signed up to the Race Quality Charter, to improve the representation, progression and success of minority ethnic staff and students at the University. The Race Equality Charter provides a framework through which universities work to identify and self-reflect on institutional and cultural barriers standing in the way of Black, Asian and Minority Ethnic staff and students.

Triumph at Varsity championship

In April, the University’s competitive sports teams, known as The Bulls, won the Varsity title for 2023, after successfully defending their home turf in a 7–4 win against the University of Northampton. The event features a range of sporting fixtures including swimming, volleyball, rugby and archery. This was the first Varsity win since 2019.

Book launched to boost global organ donation rates

April also saw the launch of a new book that was co-edited by our Professor of Diversity in Public Health, Gurch Randhawa, to increase conversations around organ donation amongst Muslim communities in countries including Qatar. The book has led to a PhD opportunity on behalf of Qatar’s Ministry of Public Health, to develop research capability to better understand facilitators and barriers to organ donation and to improve uptake.

Student helped prepare Luton Town FC players for promotion final

In May, one of our PhD students worked with Luton Town Football Club to prepare them for their successful playoff game against Coventry City, to win promotion to the Premier League. Jake Scott, who was in the final year of his study with the School of Sport Science and Physical Activity, worked on a part-time basis with the Club’s Sport Science Team to prepare the players for the clash in unusually high temperatures.

Research finds exercise can alleviate grief in young people suffering parental loss

A team of academics from the Institute for Sport and Physical Activity Research undertook research into the role of exercise and physical activity in dealing with the loss of a loved one among children, teenagers and young adults. Findings from the report, published in May, led by Dr Jane Williams, Lecturer in Psychology, concluded that physical activity has the potential to provide positive experiences following parental bereavement. It also found that physical activity can provide a sense of freedom and help to alleviate grief outcomes.

New state-of-the-art Strength & Conditioning Suite opens at Bedford campus

In June, we opened a new state-of-the-art Strength & Conditioning suite to enhance the learning experience for students studying on sports courses. The new suite will also increase the capacity to develop our work with local sports partnerships, such as Luton Town Football Club and the Bedford Blues rugby union team.

WHO WE ARE AND WHAT WE DO

Our vision is to be ‘a vibrant, ambitious, academic community, celebrating diversity and the transformative power of education’

Our values

We believe that our values are lived and must be owned throughout the University community

We have 12 values that have been shaped by our staff and students:

Education – we believe in higher education as life changing and world changing

Ambition – we are ambitious for our staff and our students and the University

Inclusion – we are proud to be a diverse and global community

Excellence – we will be excellent in all aspects of our work

Compassion – we are compassionate and caring and value all members of our community

Honesty – we behave ethically and with integrity

Development – we nurture talent, innovation and creativity

Agility – we are flexible and responsive in our systems and processes

Collaboration – we are positive about collaboration, internally and with partners

Community – we are an anchor institution and will work to benefit our communities

Success – we celebrate the achievements of our students, staff and alumni

Sustainability – we have a strong and evidenced commitment to environmental sustainability

OUR STRATEGIC GOALS

We have nine ambitious goals to transform Bedfordshire.

EXPERIENCE

SUCCESS

ASPIRATIONS

We will be a values driven university, with a high-performance culture, providing an excellent student and staff experience in a vibrant and diverse academic community.

We will be a leading university for student opportunity and success, supporting students to achieve their best outcomes and preparing them for successful graduate level employment.

We will enable students to thrive academically and personally, providing support for their needs and aspirations.

TEACHING

IMPACT

We will deliver inspiring, expert and innovative teaching which is student focussed, inclusive, provides challenge and leads to quality improvement.

Our research and innovation will enhance our reputation and make a positive impact on our teaching and our economic and civil role.

GLOBAL

COMMUNITIES

We celebrate the global community of the University, delivering a global perspective in our courses and an excellent experience for our international students.

As an anchor organisation, we will embrace our civic and economic role, taking pride in our positive engagement in the communities and sectors we support.

PARTNERSHIPS

SUSTAINABLE

Our strategic partnerships will deliver mutual benefit in enhancing our teaching, research and wider engagement.

Environmental sustainability and the UN Sustainable Development Goals will inform our strategy and actions.

TRANSFORMING BEDFORDSHIRE STRATEGY

Our strategic goals will be delivered through our Transforming Bedfordshire Strategy (our Strategy) for 2021-2026.

Our Strategy represents our shared ambition for the University. It sets out our vision to be a vibrant and ambitious academic community, celebrating diversity and the transformative power of education. It builds on our strengths, addresses our developing areas, and opens up new opportunities for our staff and students.

There are five priority areas, each with its own enabling strategy, which are covered in this report.

PROGRESS WITH OUR STRATEGY IN 2023

Equality,

Diversity and Inclusion and Sustainability

and

the Environment

are prominent and underpinning themes across all our enabling strategies.

EQUALITY, DIVERSITY AND INCLUSION (EDI)

Our University is proud of our super-diverse local and global community of students and staff. Diversity is one of our key strengths and is fundamental to our success. Quite simply, it runs through everything we do and contributes to the delivery of our strategic goals.

We are all committed to ensuring that our work begins with the advancement of equity and a principle of inclusion where we respect the rights and dignity of all people whatever their background.

Through our policies, practices and behaviours we continue to build a culture of equality, openness, inclusion, fairness and transparency. We do this by avoiding assumptions and checking in with people’s lived experiences to ensure equity of opportunity.

Our action plan brings together all our EDI initiatives. In the last 12 months, this included:

• Signing up to the Race Equality Charter to achieve a Bronze award status by the end of 2024.

• Working with staff, students and alumni to launch a series of events for Black History Month. This included the film premiere of ‘Pathways’, a film by one of our students which explores the reality of being Black in the UK. Our students and alumni also joined forces to create a performance of the Black History of Dance.

• Hosting a lecture during LGBTQ+ Pride month with one of our EDI leads and co-chair of the LGBTQ+ Network, Dr Alex Baird, who presented her research on leadership development in higher education in the UK.

• Signing up to Student Minds’ Mental Health Charter to help improve support for our students and staff.

• Participating in International Women’s Day (IWD) with staff and students joining in the global annual celebration to recognise the social, economic, cultural and political achievements of women around the world.

• Running a student-led public charity event called ‘Cultural Implosion’ to celebrate the University’s cultural variety and inclusion.

• Running multiple educational events for school children in the local area to show that further and higher education is accessible to them.

SUSTAINABILITY AND THE ENVIRONMENT

Our vision for sustainability is to eliminate carbon emissions; reduce waste and water consumption; cultivate education and research for sustainability among stakeholders within and beyond the University and share our good practices.

Sustainability is integrated into every aspect of our organisation, from our campuses to our community and international partnerships. It is a fundamental part of our strategies, plans and daily campus operations, and has become a way of life for us. Our efforts have been recognised by the People and Planet University Green League, where we placed first in England and second in the UK.

Over the last 12 months, our sustainability and environment policies have helped us achieve the following:

• Reducing our carbon dioxide emissions by 23%.

• Achieving platinum-level certification in the Eco-Campus Environmental Management System standard – an international management system standard.

• Updating our Sustainability Strategy to ensure that it is aligned with the United Nations’ Sustainable Development Goals (SDG) and working with course teams to embed the SDG through the Curriculum Change Programme and Course Enhancement Planning process.

• Introducing the opportunity for students to gain extra module credits through Action for Sustainability (extracurricular activity).

• Hosting a climate change summit for local schools to help students better understand climate change and sustainability.

• Supporting more than 340 SMEs in the region to develop new sustainability policies and systems.

We have continued to successfully implement environmental sustainability across our campuses including generating almost one million kWh of renewable energy, maintaining our beehives and wildflower meadows to encourage biodiversity, harvesting rainwater to flush toilets, and the use of cross-campus electric vehicles.

Our five enabling strategies continue to drive forward our Transforming Bedfordshire Strategy.

The following pages set out our progress within each of these areas over the last year, featuring highlight stories and achievements.

The Education and Student Experience Strategy takes a leading role in making the University a vibrant, ambitious academic community, celebrating diversity and the transformative power of education. The strategy sets out how it will achieve this through five commitments:

TEACHING AND ASSESSMENT

STRATEGY EDUCATION AND STUDENT EXPERIENCE

HUGE PROGRESS WITH TRANSFORMING OUR LEARNING, TEACHING AND ASSESSMENTS

The past 12 months have seen good progress with our Curriculum Change Programme (CCP) which sets out the strategic direction for our teaching, learning and assessment and defines how programmes of study should be designed, developed and delivered.

The CCP aims to allow quick changes to be made, resulting in more immediate successes at course and at University level.

An important aspect of this programme is how we work with students as partners to develop and enhance provision. We do this through the Student Experience Leaders Scheme and our Student Voice Framework, which was developed in partnership with the Students’ Union and Student Experience Directorate. The programme has three strands –inclusivity, mental wellbeing and employability – and has a strong focus on real-world employment and sustainability in the curriculum.

In the past year, we have adapted our approach to blended learning, with 25% of scheduled teaching per unit now delivered as digital learning. Our curriculum has been made even more inclusive by supporting students with mental health and enabling equality, diversity and inclusion. And we have ensured that challenge-based learning includes project and collaborative learning styles with assessments that

are authentic to the real world of work. These improvements and enhancements have been carried out across all our courses, from Higher Degree Apprenticeships and Foundation Year courses to BA/BSc and postgraduate degrees, providing flexible and diverse entry pathways through the different stages of education.

The impact of our work is reflected in the results of the latest National Students’ Survey (NSS) which reinforces that our students are satisfied that their course has prepared them for the future, which was one of our highest-scoring questions. Students are also positive about how their course is delivered and assessed, which reflects our authentic assessments and focus on real-world work.

NSS highlights include

• 81% positivity (+4.9% to sector) regarding the right balance of directed and independent study

• 86% positivity (+4.6% to sector), confirming that the course has developed students’ knowledge and skills that they think they will need for the future

• 84% positivity (+3.4% to sector) relating to how assessments have allowed students to develop what they have learned

In our internal surveys, students were also positive about their induction and our learning support services:

• 82% of 539 students who responded strongly agreed or agreed that their academic induction schedule was well organised and helped them prepare for the coming semester

• 99% of 200 students who responded said they were satisfied with the services the Library provides

OTHER ACHIEVEMENTS IN THE LAST 12 MONTHS

• Implemented the StREAM learning analytics pilot within the Health and Social Sciences Faculty to identify and support students with low engagement.

• Made further enhancements to the Personal Academic Tutor scheme by introducing e:Vision as a tool to record meetings. This was complemented by two evaluation projects to understand staff and students’ experiences of personal academic tutoring.

• Relaunched our Studiosity student feedback website based on increased use and 99.9% student satisfaction in the previous year.

• Launched the Student Experience Leaders Scheme, with 24 students employed to work in partnership with the University on projects to enhance the student experience and student voice.

• Exceeded the target of 90% course representative engagement across all courses.

• Implemented the ‘Begin, Thrive, Succeed’ student journey to frame different stages of the student lifecycle. This was complemented by the online Student Success Framework as a tool to communicate the opportunities and support available to students.

• Implemented Employer Advisory Boards in all Schools to enable a consistent baseline of practice and enhancement of practice to be achieved.

• Carried out improvements to open spaces on campus, and library group spaces and created a more welcoming and inclusive environment.

• Responded to the threat of Artificial Intelligence authoring tools to protect academic integrity by adjusting assessments and held seminars for and shared resources with support staff as well as guidance for students.

STRATEGY PEOPLE AND CULTURE

The People and Culture Strategy sets the direction to ensure we develop as a university that lives our values and delivers our goals. It aims to enable and equip people at all levels with the necessary knowledge, skills, experience and attitudes to deliver an outstanding student and staff experience and to become an employer of choice.

Our strategy has five ambitions which will help make the University of Bedfordshire a great place to work:

ENGAGEMENT & CULTURE

Bedfordshire will be an employer of choice

DEVELOPING PEOPLE

Our people will have the right skills and knowledge to deliver an excellent staff and student experience

LEADING AND MANAGEMENT

We will have great leadership

PLANNING FOR AND WITH OUR PEOPLE

We will employ the best talent at the right time, in the right roles for them

REWARDING

We will recognise and celebrate success and will reward fairly

BIG STRIDES WITH DEVELOPING OUR PEOPLE DURING 2022/23

Since 2021, we have been working on transforming our culture to create a supportive and collaborative working environment. Part of this work is creating a culture where continuous development is the norm. During 2022/23, we made significant progress in this area, taking a top-to-bottom approach by looking at development needs across the whole organisation.

First, we increased investment in staff development and centralised the development budget. We then reviewed our internal capacity and capabilities, and based on this data, we provided training, coaching and mentoring to individuals and teams. We also used insight and data from performance reviews to shape individual learning and development plans.

We have further invested in management development, offering training in key skills such as performance management, change management, data analytics, project management and resource management.

We launched a leadership programme alongside a 360-degree appraisal process which saw Heads of Schools engaged in practical action learning sets to solve problems. This helped with building peer support and sharing knowledge and practice to drive the delivery of the Transforming Bedfordshire Strategy and their faculty plans. Feedback shows that the newly formed community and the activities carried out have positively impacted organisational capacity and performance, as well as the leadership culture across the University.

We have expanded our leadership and management training offer to provide support to experienced, new and aspiring leaders and managers across academic, professional and research services.

We continued with the roll-out of the renowned Aurora Women’s Leadership programme which aims to address the underrepresentation of women in leadership positions across the higher education sector. In October 2022, a third cohort of 12 women started the programme.

These aspiring leaders from across academic, professional and research services have been able to advance their skills and knowledge in areas such as leadership identity, politics and influence, adaptive leadership and action learning.

All Aurora participants reported higher levels of self-confidence and motivation, improved networking skills and greater clarity about their career progression. Our Aurora alumni have a key role in setting up and running our women’s staff network, delivering leadership training talks and events and mentoring colleagues. They are now part of a national community of more than 10,000 women who have completed the programme.

Progress with this programme demonstrates our long-term commitment to developing our people by nurturing talent and ensuring they have the right skills to do their jobs well.

OTHER ACHIEVEMENTS IN THE LAST 12 MONTHS

• Implemented our action plans to transform our culture based on our staff survey and other staff communication channels.

• Reviewed our academic promotion pathway to create more opportunities for colleagues to become Associate Professors and Professors.

• Continued with our EDI Strategy and action plan.

• Trained a new cohort in Mental Health First Aid, committed to the Mental Health Charter and continued with work to support organisational resilience and wellbeing.

• Updated our People Policy to ensure continued compliance with the Equality Act.

• Collaborated with colleagues to further develop and promote our internal apprenticeships strand.

• Forged stronger relationships with our staff network groups and provided resources to support their activities.

• Supported the University’s successful reapplication for the HR Excellence in Research Award, which has been retained for 10 years.

• Improved internal communication by launching a new ‘Team Talk’ briefing format with the explicit aim of amplifying staff voices.

STRATEGY INTERNATIONALISATION

The Transforming Bedfordshire Strategy aims to empower people worldwide to reach their full potential and to make a positive impact on society. This underpins our International Strategy, as do our values relating to pride in our diverse and global community and the belief in the power of higher education to change lives and the world.

The International Strategy brings together two strands to help us deliver our global ambitions over the next three years. These are:

INTERNATIONAL RECRUITMENT

INTERNATIONAL PARTNERSHIPS

We aim to create mutually beneficial international partnerships that meet our financial goals and enhance our reputation as a collaborative partner around the world.

International recruitment has long been a success story at the University of Bedfordshire welcoming students from around the world, especially from Europe, the Middle East, South Asia and West and North Africa. Today, our international activities account for 39% of the University’s income. We are one of the

top-performing universities in the UK for recruiting students from South Asia with one of the biggest cohorts from India.

However, a lot has changed in UK student recruitment since Brexit and the pandemic. EU student numbers have decreased while international applications have increased higher than the sector had anticipated. We are now operating in a very different landscape with new trends and preferences emerging. For example, the squeeze on household incomes is a global issue and students are actively seeking value for money.

Our focus now is on attracting a more diverse student population from a broader range of countries and encouraging them to study a wider variety of subjects that will boost their employability in an ever-changing world. Alongside this, we have been working hard to ensure we remain fully compliant with UK Visa and Immigration (UKVI) regulations to retain our ‘Highly Trusted Sponsor’ status.

Our strategy sets out how we can create stronger and more effective Transnational Education (TNE) partnerships. Currently, we have 17 TNE partnerships in 13 different countries, with partners in every continent except for Oceania. These partnerships not only generate income for the University but also offer opportunities for collaboration, provide students with a truly international experience and improve our global reputation and profile.

PARTNERSHIPS GLOBAL SUCCESS

A RECORD YEAR FOR INTERNATIONAL STUDENT APPLICATIONS

The last financial year saw our biggest intake of international students for more than 10 years, exceeding our target by 60%, with undergraduate applications alone more than doubling.

Although we expected applications to remain high following the pandemic due to pent-up demand, the final numbers for both undergraduate and postgraduate applicants exceeded our expectations by a significant margin. The majority of applications have come from our established markets to study traditional subjects such as business and computing.

The sector predicts that the demand from international students, post-pandemic, will decline as competition builds from other countries that were slower to reopen their borders. Nevertheless, we should celebrate this achievement and recognise the hard work of staff across the University, as demand alone does not automatically lead to enrolments. From the international office and professional services, right through to academic departments, everyone has been instrumental in adapting to a challenging market and helping us achieve this record-breaking year.

OTHER ACHIEVEMENTS IN THE LAST 12 MONTHS

• Implemented a compliance-led review of our processes and systems to ensure we adhere to UKVI regulations.

• Identified new priorities for developing partnerships in addition to our TNE.

• Overhauled our onboarding and welcome for new students by improving our pre-arrival communications and welcome events.

• Revised our international scholarship offering to attract higher-performing students from a more diverse range of countries.

STRATEGY INFRASTRUCTURE

The Infrastructure Strategy sets out how the University will continue to enhance the student experience, make it easier for our colleagues to do their jobs well and minimise our impact on the environment. It also outlines how we will remain financially and environmentally sustainable and how we will maintain secure and robust systems against the ongoing threat of cybercrime.

The remit covers ICT and Estates, from networks, servers, systems and technology to green heating systems, roof replacement and teaching and learning facilities.

As some of our systems and facilities are nearing the end of service, the focus of the last financial year has been putting in place the foundations to deliver an infrastructure master plan over the next few years. This will ensure we have a modernised and sustainable infrastructure for all our students and staff.

REVOLUTIONISING OUR STUDENT INFORMATION SYSTEM

This year, we delivered the first phase of a £4m project to revolutionise our student information system (SITs).

The system stores and manages all aspects of the student journey, from initial application and registration right through to graduation.

The first phase of work delivered this year has seen improvements to the system’s capabilities, making it easier for students to access and manage data relating to them, including their ongoing study

progress. It has also reduced the need for manual interventions from staff.

More broadly, this project is transforming how we manage student data by putting in place the necessary interventions to support them throughout their student journey ensuring their success.

OTHER ACHIEVEMENTS IN THE LAST 12 MONTHS

• Carried out consultations with academic colleagues to identify what investments are needed to support our teaching strategy and enhance the student experience. The findings will help shape our Infrastructure (physical and digital estate) Masterplan.

• Implemented vital cyber security measures to protect staff and students, achieved Cyber Essentials, obtained cyber security insurance and rolled out Multi-Factor Authentication (MFA) to our key ICT systems.

• Invested £0.6m in the latest AV and recording equipment in our teaching spaces as well as new servers. Vastly improved connectivity for the whole University to prepare us for future hybrid learning.

• Expanded teaching and learning facilities at Stoke Mandeville Hospital (Aylesbury campus) to improve the experience for our nursing students. This included the creation of larger teaching spaces and enhanced simulation facilities for clinical skills training.

• Developed a new ambulance simulation area at our Bedford campus.

The Research and Innovation Strategy is central to the University’s impact goal within the Transforming Bedfordshire Strategy.

Our vision is to cultivate an interdisciplinary research culture and partnership environment that generates new knowledge and creates insights and resources that have a positive impact on society. We want to inspire our students to push the boundaries of what’s possible and transform lives. By doing so, we’ll stimulate business innovation and become a driving force behind policy and practice that will shape the future for the better.

STRATEGY RESEARCH AND INNOVATION

Achieving our vision requires us to build on three existing and internationally recognised areas of research excellence linked to our Research Institutes:

HEALTH, WELLBEING AND SOCIAL JUSTICE

TECHNOLOGY, BUSINESS AND PRODUCTIVITY

COMMUNICATION, LEARNING AND CREATIVITY

SIGNIFICANT FUNDING WINS AND KEY APPOINTMENTS

There are two notable areas of progress during the last financial year.

Following the successful outcomes of the last Research Excellence Framework, we updated our Research and Innovation Strategy to address the areas identified as needing development. This included developing a new promotions pathway for academics to progress to Associate Professor and Professor positions, helping to create a more supportive research environment while retaining outstanding talent.

We were delighted that 12 colleagues successfully progressed to Associate Professor and Professor positions, three-quarters of whom are women and

more than half identify as being from minority ethnic backgrounds. And we were pleased that two colleagues were successfully appointed to professorial positions that were advertised externally. These important appointments are already making an impact and are strengthening our reputation in research excellence.

Another area of success over the last 12 months was generating investment in research and innovation. In November 2022, we were awarded £3m by NHS England to develop a research and innovation hub in collaboration with the NHS BLMK (Bedfordshire, Luton & Milton Keynes) Health and Care Partnership, which will focus on ways to improve health and social care inequalities across the region.

Over the next three years, this project will see academics and researchers from our Institute for Health Research and Institute of Applied Social Research join forces with local health and social care professionals. Together, they will work on three targeted areas of activity to build an inclusive and results-driven health workforce, create new ways of working in the NHS and enhance the safeguarding of children and adults with complex needs.

This hugely important University-led project will directly address health inequalities in our communities through improved systems and levels of care. It will also drive research and innovation in integrated health and care, providing evidence-based interventions.

Both these strands of work are helping us to make great strides with our new strategy.

OTHER ACHIEVEMENTS IN THE LAST 12 MONTHS

• Unveiled the findings of a project which investigated solutions to help tackle inequalities around Covid-19 among specific groups in the local community.

• Rolled out a project to enhance access to antenatal care for pregnant women in ethnically diverse and socially disadvantaged areas across Luton.

• Conducted research with The Children’s Society and Research in Practice resulting in the publication of a set of new Practice Principles to help shape and inform the work of professionals responding to child exploitation and extra-familial harm.

• Developed the Local Cultural Education Partnership to run major nationally funded projects in Luton and Bedford, centred around arts, culture and heritage.

• Devised and delivered the Heritage Impact Accelerator and Heritage Enterprise Hub programmes, funded by the National Lottery Heritage Fund, leading to significant increases in investment into the local heritage ecology and stronger relationships between the University and a range of partners across the third sector.

• Ran five growth events for research and innovation-led entrepreneurs as a follow-up to our InnovateUK Oxford-Cambridge Arc Innovation Festival, attracting more than 200 delegates from across the South East.

• Continued to grow our sector-leading CPD to businesses by delivering bespoke training for companies such as Scottish and Southern Electricity, Hitachi Rail, Fujifilm and the RAF.

• Continued with research into using AI to transform several sectors such as manufacturing, agriculture, transport and health. This included working with partners to develop a ‘Fruit Scouting Robot’ to support fruit growers in the UK by gathering accurate, timely and rich data for insight on crop yield and profile, helping to reduce waste and plan more accurately. Another project that has made good progress this year is our 5G-ERA research. Working with partners across the EU, we are exploring the potential of 5G and 5G-ERA to work with robotics, AI and cloud computing.

CELEBRATING SUCCESS

We believe in celebrating success and recognising the achievements of our people. Over the last year, our staff, students and alumni have made us proud, winning awards on an individual level and playing a key role in the University being recognised nationally.

SUSTAINABILITY AND THE ENVIRONMENT

The last 12 months have been exceptional in terms of recognising the hard work of our staff and students to make our campuses sustainable places to study and work. We were recognised by two different awarding bodies.

First in England in People & Planet’s Green League

In December 2022, we were awarded the top spot in England in the People & Planet 2022/23 University Green League, and second place in the UK.

The University has appeared in the League’s top ten since 2018 and this latest achievement of scoring 81.3% reinforces our commitment to sustainable education and influence. Areas where we scored highly include carbon management, ethical careers and recruitment, energy sources, waste and recycling, and water reduction. People & Planet is the largest student network in the UK which campaigns for social and environmental justice.

Gold award in Uswitch Green University Report

In January 2023, the latest Uswitch Green University Report ranked Bedfordshire as one of the top-scoring eco-friendly universities in the UK. The report highlights UK universities’ commitment to sustainability and awarded Bedfordshire a gold-tier position in the latest rankings for going “above and beyond” in our bid to be a greener university.

The report commended us for our green energy tariff for electricity; the use of cross-campus electric vans by maintenance and staff and for deliveries; the number of renewable installations used on campus (such as solar panels and an air source heat pump); a variety of accessible recycling facilities for books, plastic, tin, cardboard, paper and batteries; and sustainable travel initiatives for staff, from cycle and car-sharing schemes to annual rail season ticket loans.

STUDENT EXPERIENCE

Platinum award for student app in Uswitch award

In June 2023, our student app, MyBedsLife, was rated Platinum – the highest possible ranking –in a new report by one of the UK's leading tech comparison services, Uswitch. It was awarded a four out of five star rating in the ‘university app’ category based on the number of downloads, accessibility, in-app features and overall popularity.

It was one of only three university apps in the Platinum tier to have all key features deemed to give maximum student satisfaction, including access to timetables, campus maps and staff contact capabilities.

Online open day wins top award

In February, the University received the most votes by the public for our online Open Day event which came out on top after competing against several other universities from across the country.

HEALTH AND SOCIAL SCIENCES

Alumni shine bright at Nursing Times awards

Two of our alumni were awarded the prestigious NHS Chief Midwife Officer’s Silver Award, presented to midwives for exceeding the expectations of their everyday role.

Michelle Causer and Jo Duke are both midwifery graduates from the University’s Faculty of Health and Social Sciences.

They now work passionately to make a difference in the local community through their clinical practice, leadership and championing diversity and inclusion.

Student crowned Social Worker of the Year

One of our social sciences PhD students won two accolades in this year’s Social Worker of the Year Awards. Kirstie Baughan won the top prize of Gold in the ‘Social Justice Advocate’ category, alongside being named the joint winner of ‘Overall Social Worker of the Year’ held in November 2022, in recognition of her substantial work with unaccompanied asylum-seeking children and refugees.

The annual Social Worker of the Year Awards is a national event celebrating social work in England, attracting hundreds of entries every year which highlight the country’s outstanding practitioners and exceptional practice.

CREATIVE ARTS & COMMUNICATIONS

More awards for Radio LaB

Our on-campus community radio station, Radio LaB, has had another award-winning year. In December 2022, our alumnus Jose Goncalves’ radio feature ‘Fighting Fear With Hope’ was awarded the Gold prize in the CRA category of ‘Speech & Journalism of the Year’. Former Radio LaB student manager and recent graduate, Toby Crabb, also took home the Silver award for ‘Young Person of the Year’.

In April 2023, Radio LaB scooped the top prize in two award categories at the Student Radio Association’s Amplify Awards. The station won ‘Gold’ in both categories they were nominated, for ‘Student Radio Moment of the Year’ for their special continuous 25-hour live show to celebrate Radio LaB’s 25th birthday last year, and ‘Outstanding Contribution’ for Radio & Audio alumnus Toby Crabb.

HONORARY AWARDS

Honorary degrees for CBeebies star and local education advocate

In November 2022, we celebrated the achievements of the last cohort of graduating students of the year and awarded Honorary Doctorates to CBeebies star Andy Day and education leader Mike Berrill.

Broadcaster and children’s actor Andy Day – the longest-running presenter on BBC’s CBeebies channel – was awarded an Honorary Doctor of Arts in recognition of services to Broadcasting.

Local school leader and educational advocate, Mike Berrill, was awarded an Honorary Doctor of Education for outstanding contribution to UK Teacher Training and School Leadership. Mike has spent a 50-year career working in education, including being the Executive Principal at Biddenham International School and Sports College in Bedford.

Honouring the achievements of our sports and PE graduates

In September 2022, we celebrated the achievements of more than 250 graduates who studied at our Bedford campus when it was known as Bedford Physical Training College (1903-1952) and Bedford College of Physical Education (1952-1978). At two ceremonies, a packed auditorium heard about their global contributions to Physical Education (PE), sport and life-long learning through physical activity.

Most of the former students contributed to teaching PE in schools, universities and local communities over the decades. Many have risen to challenges in diverse fields, achieved civic recognition, and contributed to national and international government policy. A great number also represented their country in a variety of sports. Among them was 100-year-old Hilda Moore who played Hockey for England and is believed to be the oldest recipient of an honorary degree.

STAFF AWARDS

The annual Vice Chancellor’s Awards: ‘Proud to be Beds’ honour all the people who make us proud to be part of our University’s community and allow us to recognise outstanding individual and team achievements over the past academic year.

Awards went to individuals and teams who excelled in the areas linked to our Transforming Bedfordshire Strategy. Categories included ‘Student Experience’, ‘Inspirational Teaching’, ‘Community Engagement and Outreach’, ‘Living by Our Values’, ‘Driving Success’ and ‘Supporting Graduate Employment’. Two new categories, ‘Internationalisation’ and ‘Sustainability’

were introduced this year to recognise colleagues who are helping Bedfordshire become a more globally aware and sustainable institution.

The winners were presented with their awards at a special ceremony in May 2023.

EDUCATION & STUDENT EXPERIENCE

OUR FOCUS FOR THE YEAR AHEAD

Over the next 12 months, we will continue deliver our enabling strategies, to drive forward our Transforming Bedfordshire Strategy.

PEOPLE & CULTURE

• Implementing our new Course Framework.

• Launching a significant programme of work to support first-year students to succeed and continue in their studies.

• Further enhancing practices to listen and respond to student voices.

• Implementing the new Student Success through Engagement Policy and related processes utilising learning analytics and engagement data.

• Continuing to embed graduate competencies in the curriculum, with a focus on developing confidence and digital skills to make all our graduates ready for the workplace.

• Growing collaborative communities and building a culture of belonging through training, development and mentoring.

• Ensuring that all new staff have the best welcome, support and development to thrive in their roles.

• Continuing to strengthen our collaboration with staff networks to allow more voices and views to be heard.

• Investing further in our EDI activities and quality standards to continue building an inclusive culture.

• Building organisational capacity and enable staff to do their best work.

INTERNATIONALISATION

• Focusing on enhancing student diversity in terms of nationalities and subjects studied.

• Increasing our use of marketing to drive recruitment in the lead-up to the implementation of a new CRM system.

• Reviewing our international admissions processes to ensure they are fit-for-purpose and cost-effective.

• Reviewing our TNE admissions to ensure they are efficient and allow for growth.

• Developing progression partnerships and increasing opportunities for students to spend some time studying at the University’s campuses.

INFRASTRUCTURE

• Finalising our Infrastructure Masterplan.

• Continuing with cyclical Estates and IT infrastructure refreshes.

• Concluding upgrades to our health care simulation facilities at our Luton campus.

• Investing in our cyber security and teaching simulation facilities at our Luton campus.

• Upgrading the dining experience for students, staff and external visitors to our Putteridge Bury commercial estate.

RESEARCH & INNOVATION

• Supporting our staff to undertake research by reviewing the Academic Workload Planning Framework and implementing a new Professorial Review Framework.

• Expanding the involvement of the Research and Innovation services team in activities linked to student experience and graduate outcomes.

• Implementing a new Community Engagement Strategy.

• Improving the experience of our postgraduate researchers by reorganising the Research Graduate School.

• Reviewing the performance of our Research Institutes and our delivery of research impact as part of planning for REF 2028.

• Growing our fee income from apprenticeships by expanding our provision.

FINANCIAL REVIEW

for the year ended 31 July 2023

Financial strategy

The University’s financial strategy is designed to ensure its long-term sustainability. The principal measures through which the University seeks to achieve this are:

• achieving recruitment and income targets;

• controlling pay and non-pay costs relative to income;

• achieving operating and net cash flow targets; and

• keeping net borrowings below three times net operating cash flow, whilst complying with bank borrowing covenants and other sector-specific conditions as specified by the OfS.

These measures are considered in the University’s annual planning, budgeting, and medium-term forecasting cycle, in the development and implementation of its treasury policy, and the planning and execution of its Estates Strategy and wider programme of capital investment.

Results for the year

Income

The University’s total income of £153.1m was £7.3m (+5.0%) higher than the prior year. The increase was driven by growth in international fee income of £19.6m (+58.0%), from record levels of international student recruitment. Offsetting some of this increase was a reduction in home fee income of £16.1m (-18.9%), due to a fall in home recruitment mainly at our study centre locations. This follows a decision to end new recruitment at our partnership with London School of Commerce as the University increases focus on its on-campus students. Continuing students were also lower driven by the roll through of EU students. Other significant income movements include a £2.9m increase in investment income reflecting the rise in cash deposit interest rates.

£90.0m

£80.0m

£70.0m

£60.0m

£50.0m

£40.0m

£30.0m

£20.0m

£10.0m

£0.0m

£140.0m

£120.0m

£100.0m

£80.0m

£60.0m

£40.0m

£20.0m

£0.0m

Operating expenditure

The cost environment continues to be extremely challenging (as it is for all HEIs), particularly staff costs, where pay awards (under national framework agreements) and increasing employer pension costs continue to exert upward pressure on pay expenditure. The University continuously reviews its staff costs across all areas, with efficiencies sought where possible.

The average total number of full-time equivalent (FTE) staff increased during the year, with investment in a further twenty-two FTE frontline teaching and academic support staff as the University continues to prioritise the student experience.

Before the impact of non-cash FRS102 pension costs, staff costs increased to £72.2m (+6.2%). Of this increase 1.2% is attributed to the growth in staff numbers, and the remaining 5.0% due to increases in average staff pay levels during the year. Pension adjustments included within pay, were £6.4m lower in the year at £1.0m, resulting in an overall reduction in total staff costs of £2.2m (-2.8%).

Other operating expenses increased by £7.8m (+14.4%). This was due to higher spend on recruitment activity in relation to international student recruitment of £10.3m, of which £6.5m relates to students recruited part way through or towards the end of the academic year, whereby the income benefit will be realised throughout 2023/24. Higher global energy costs led to an increase in premises related activity of £2.0m.

‘Other expenses’ increased by £1.0m due to inflationary increases in areas such as corporate systems licensing, institutional subscriptions and maintenance contracts where contracts are subjected to annual increases in line with inflation. Offsetting these increases was a decrease in payments to our educational partners of £5.6m resulting from the lower student numbers at study centre locations.

Net assets

At 31 July 2023, total net assets were £193.4m, an increase of £35.5m. Within this movement £24.7m reflects a decrease in the obligation to fund the deficit in the LGPS pension following the 31 July 2022 actuarial valuation of the pension scheme, as a result of increases in interest rates in the bond markets. The LGPS is completely independent of the Group, which has no control over its policies or decisions (note 30). The USS pension provision reduced by £0.6m.

Of the remaining £10.2m increase, cash and short-term investments increased by £19.9m, offset by an increase in payments on account of £6.9m relating to students due to register in 2023/24. Other movements in net current assets totalled £4.6m, were due to an increase in deferred income and accrued capital expenditure.

Cash flow and treasury management

The security of cash deposits is of paramount importance, and the University’s Treasury Management Policy therefore permits that accounts and deposits are to be held only with UK high street clearing banks.

The University seeks to optimise its return on cash through regular review of available interest rates, across both current accounts and fixed term deposits, whilst ensuring that it has sufficient liquidity available to meet day-to-day operational needs and investment commitments, without recourse to overdraft facilities.

Each year, as part of its planning processes, rolling five-year financial forecasts are prepared. This process incorporates a review of capital expenditure and cash generation, enabling any necessary borrowing requirements to be considered and, if necessary, negotiated well in advance of need. Regular meetings are held with the University’s banking partners to ensure that they are kept appraised of developments and have sufficient comfort and confidence in the University to provide funding, should the need arise.

As at July 2022 the University had cash and cash equivalents of £126.7m. For the year 2022/23, the University generated a positive cash inflow from operating activities of £25.3m with a further £0.7m from net financing and investment activities. Payments made in relation to capital investment totalled £6.1m and £80.9m was placed in short term investment accounts, leaving a July 2023 cash balance of £65.7m.

With the inclusion of investment balances, total cash and investments over a five-year period has shown sustained growth and provides the University with the balance sheet strength to sustain its middle-to-long term capital investment strategy and manage the potential risks that may stem from a competitive student recruitment market and inflationary pressures on expenditure.

Going concern and longer-term outlook

The financial statements have been prepared on a going concern basis which the Board of Governors consider to be appropriate for the following reasons:

• Cash flow forecasts have been reviewed for the following three financial years. These forecasts show that the Group and the University will have sufficient funds to meet their liabilities as they fall due throughout the forecast period and from the date of approval of the financial statements.

• Forecasts for cash flows, income and expenditure and net cash indicate that the University will continue to comply with all financial loan covenants throughout the going concern assessment period.

• The University also has access to a £15m revolving credit facility (RCF). The forecasts for cash flows and income and expenditure show that the University will not need to draw on the RCF at any point during the going concern assessment period.

Outlook

Overall, the University is well positioned to deliver on its financial targets for the year with a forecast for continued strong operating cash flows and surplus.

Early indications are that the University’s overall student recruitment 2023/24 is slightly above budgeted levels, with continued strong international activity offset by pressures on home recruitment that remains a challenging market for the University.

Longer term, along with the whole HEI sector, and the wider economy there are several external factors which have the potential to adversely affect the University’s progress beyond the immediate going concern period, including:

• Implementation of the Post-18 Education and Funding review. The recommendations of the review include some which have the potential to affect the University’s recruitment and financial position. For example: reduced funding, scheduled for 2025 for students on foundation year courses scheduled; the continued freeze on undergraduate home fee levels (£9,000; 2012 and £9,250; since 2016); and restricted access to SLC funding for students with lower UCAS tariff scores.

• The external UK environment represents a continual, if changing risk to international recruitment for all UK HEIs. Changes to visa rules for dependents of international students coming into effect from January 2024 are likely to have a limited effect, and has been factored into our financial forecasts, but

further changes are always a possibility. Similarly, the increase in competition from other Anglophone markets was also predicted and included in our projections, and as such we are confident in the continuation of our strong overseas recruitment.

• The current geopolitical situations and the performance of the UK economy have had an impact on the cost base of the University. The energy crisis and higher rates of inflation in the UK, have had a significant impact on the University’s cost base. The impact has seen both higher staff pay settlements and increase energy cost. Whilst the increased cost could influence the University’s surplus, cash reserves are sufficient to absorb the extra cost for a period beyond December 2024. The challenge within the sector and for the University is, how to mitigate the potential longer-term impact of higher staff pay settlements, when tuition fees for home students are frozen.

These external factors are considered as part of an annual revision to the University’s five-year financial forecast that is also submitted to the sector’s regulator, the Office for Students. This forecast is internally stress tested through a range of scenarios, that are considered by management and the Board, to ensure the impact on cash flow and surplus generation are clear. These processes coupled with the strong cash position and low levels of external debt ensure the University is well positioned to deliver on its transformative strategy.

CORPORATE GOVERNANCE STATEMENT

The Board of Governors as a whole, individual governors and officers of the University are required to conduct themselves at all times in accordance with the Nolan Committee’s standards in public life which embrace selflessness, integrity, objectivity, accountability, openness, honesty and leadership. All governors are required to exercise their responsibilities in the interests of the institution as a whole rather than as the representative of any constituency. The University maintains and makes publicly available a register of interests of all members of the Board of Governors and Senior Staff. The Board has adopted a Statement of Primary Responsibilities which is published on the University website.

During 2022/23, the Board of Governors completed the implementation of its Board Development Plan following its review of its effectiveness in 2022 which was overseen by the Governance Committee. The Board is committed to continuous monitoring of its effectiveness, following the principles of the CUC Code, including annual effectiveness reviews of its committees which provide the Board with an opportunity to reflect on its practice and recommend improvements.

It is the opinion of the Governors that they have acted in compliance with the principles set out by the Committee on Standards in Public Life in discharging their duties as Governors in respect of University

business during the financial year ended 31 July 2023 and up to the date of approval of the Financial Statements.

Legal and charitable status

The University of Luton was established as a Higher Education Corporation in England under the provisions of the Education Reform Act 1988 and the Further and Higher Education Act 1992. The University of Bedfordshire was established in August 2006 by order of the Privy Council, following the merger between the University of Luton and De Montfort University’s Bedford campus.

The Higher Education and Research Act 2017 introduced the Office for Students as the new regulator for Higher Education. The University’s registration with the Office for Students was confirmed on 9 October 2018 and the University complies with all the conditions of registration.

The University of Bedfordshire is an exempt charity, with its purpose being the advancement of education, as defined under the Charities Act 2011 and is regulated by the Office for Students (OfS) having been regulated previously by the Higher Education Funding Council for England (HEFCE) until 31 March 2018.

The University’s objectives, powers and framework of governance are set out in its Instrument and Articles of Government. The University is directed by a Board of Governors who are also its trustees. The Board of Governors is unambiguously and collectively

responsible for overseeing the University’s activities, determining its future direction and fostering an environment in which its mission is achieved and the potential of all students is maximised. It takes all final decisions on matters of fundamental concern to the institution.

The Articles of Government require the University to establish a Board of Governors and an Academic Board, each with clearly defined functions and responsibilities, to oversee and manage its activities.

In delivering the University’s new strategic goals, the Board of Governors has had due regard for the Charity Commission’s guidance on public benefit and particularly for its supplementary guidance on the advancement of education.

Beneficiaries

The University’s main beneficiaries are its undergraduate and postgraduate students, who are engaged in learning and research. Other direct beneficiaries include employers, industry and those who benefit from the University’s research activities. Other beneficiaries include alumni and their families, local communities, and businesses and organisations that receive students as volunteers or as placements or interns.

The University is committed to best practice in all aspects of corporate governance. It aims to conduct its business in accordance with the seven principles identified by the Nolan Committee on Standards in

Public Life. The Board has adopted The Higher Education Code of Governance issued by the CUC in December 2014 and revised in June 2018 and the requirements of the Memorandum of Assurance and Accountability previously issued by HEFCE, and continuing under the OfS.

Tackling barriers

The University offers excellent, innovative education and research to all who can demonstrate that they have the required attributes to benefit from these activities. It helps students to identify other sources of financial support such as student loans. Specific help is provided to students to enable them to apply for Disabled Student Allowances and a range of services, equipment and specialist software to support their learning. The University applies no geographical restrictions to its activities and students and staff are recruited from across the UK and internationally. The University delivers provision to students based in the UK and in other countries. In 2022/23 the University continued to offer a generous bursary scheme to all students alongside specific scholarships.

Tackling harm and detriment

The University does not believe that any detriment or harm arises from its activities. It has a well-publicised policy for handling and resolving student complaints and a robust research ethics policy. The University also has an environmental strategy and associated policies that promote sustainability and the protection

of the environment across the entire breadth of its activities. For example, we have specific policies on energy reduction and on recycling. All new buildings are expected to achieve Building Research Establishment Environmental Assessment Method (BREEAM) ‘excellent’ standard and existing buildings are refurbished to improve their environmental efficiency.

Incidental private benefits

The University has policies to deal with activities that may lead to incidental private benefits. Private consultancy is not permitted by University staff. Once concluded, unless otherwise contractually required, all research completed by staff is placed in the public domain.

Board of Governors

The Board of Governors is the University’s governing body and is collectively accountable for institutional activities, taking all final decisions on matters of fundamental concern. It is responsible for the finance, property and staffing of the University. It is specifically required to determine the educational character and mission of the University and to set its general strategic direction.

The Board of Governors, which meets at least four times a year, comprises up to 24 members, including the Vice Chancellor and Chief Executive. It has a majority of independent members, who are external to the institution. The Board of Governors’

membership comprises both lay and academic persons, including student and staff representation. The Chair of the Board of Governors is elected from the independent members.

No members of the Board of Governors receive any remuneration for the work they do for the Board, although they are able to claim expenses incurred in the course of undertaking their duties.

Newly appointed governors are offered individual induction programmes which include meetings with senior staff of the University. To help with the familiarisation process in their first year, Governors are also offered the opportunity to be paired with an experienced member of the Board to assist them transition into the role. Governors are provided with a training schedule giving details of seminars and conferences arranged by Advance HE, and other bodies. They receive pre-Board presentations on key topics, are encouraged to attend twilight governor development sessions on strategic areas or sectoral initiatives and have access to a wide variety of University events and are able to visit individual faculties, departments or classes. A Governance Handbook has also been developed as reference material for Board members.

The roles of the Chair and the Vice Chairs of the Board of Governors are separated from the role of the University’s Vice Chancellor and Chief Executive. Matters specially reserved to the Board of Governors for decision are set out in the Articles of Government,

by custom and in the registration conditions of the OfS, including provisions such as the Memorandum of Assurance and Accountability.

The Chair is responsible for the leadership of the Board of Governors and is ultimately responsible for its effectiveness. The Chair is responsible for ensuring that the University is well connected with its stakeholders.

The Vice Chancellor and Chief Executive is responsible for advising the Board of Governors on strategic direction and for the management of the institution, and is the accountable officer in respect of the use of OfS funds. The Vice Chancellor and Chief Executive is accountable to the Board of Governors which has set down, and regularly reviews, the authority which it delegates to the Vice Chancellor, having regard to those responsibilities conferred directly by the Articles of Government.

Certain matters such as the approval of the strategic plan, the annual budget, major investments and the sale and purchase of land are reserved matters for the Board. However, much of its detailed work is handled initially by its committees. All committees are required to report to the Board of Governors regularly, normally after each committee meeting and the decisions of all standing committees are reported formally to the Board. The Vice Chancellor also provides a report on key issues at each meeting. Senior staff of the University are present at each meeting of the Board of Governors to expand on reports as appropriate and to

answer any questions that may arise. The proceedings of the Board of Governors are conducted in as open a manner as possible. Information and papers are restricted only when the wider interests of the University or the public interest demands, including the observance of contractual obligations.

All governors are able to take independent professional advice in furtherance of their duties at the University’s expense and have access to the Clerk to the Board of Governors, who is responsible to the Board for ensuring that all applicable procedures and regulations are complied with. The appointment and removal of the Clerk are matters for the Board of Governors as a whole.

In 2022/23, the Board met on five occasions and formal agendas, papers and reports were supplied to Governors in a timely manner prior to Board and Committee meetings.

Members of the Board of Governors who served during the year and up to the date of approval of the financial statements can be found on pages 40 and 41 together with details of their attendance at Board and Committee meetings.

Academic Board

An Academic Board provides regular updates to the Board of Governors (the Board) on all academic matters, through the Academic Quality and Student Experience Committee, ensuring that the Board can discharge its obligation to have assurance on the academic quality and standards of teaching at the University.

Committees

The Board of Governors has established five standing committees to help it to take forward its work. These are:

• Resources and Employment Committee

• Audit and Compliance Committee

• Academic Quality and Student Experience Committee

• Governance Committee

• Remuneration Committee

Resources and Employment Committee

The Resources and Employment Committee meets at least four times a year and is responsible for the strategic oversight of the University’s financial, investment, estates, partnership and employment activities. The Committee has oversight of financial policy and management and the progress of significant capital projects and recommends to the Board of Governors the annual revenue and capital budgets, and the annual financial statements to confirm the University’s financial performance and financial position for the relevant year.

The Committee is responsible for approving major new academic partners and monitoring and reviewing the financial sustainability of existing partnerships, thus ensuring that business risks associated with academic partnerships are fully assessed and monitored. The Board’s Academic Quality and Student Experience Committee overseas the academic quality of partnerships. The Committee also has responsibility for staffing and HR matters, including: reviewing HR policy and process; oversight of staff health and welfare; and monitoring feedback associated with staff surveys.

Audit and Compliance Committee

The Audit and Compliance Committee meets at least four times a year, with internal and external auditors in attendance. While senior executives attend meetings of the Audit and Risk Committee as necessary, they are not members of the Committee.

The Committee has oversight of the University’s arrangements for ensuring compliance with legislation and regulations, including diversity, equalities, health and safety legislation, information and data as they apply both to staff and students. It is also responsible for ensuring that the University complies with the accountability requirements set out in the Memorandum of Assurance and Accountability and those of other funding bodies, together with the University’s Instrument and Articles of Government. The Committee ensures that a register of interests is maintained and annually reviewed for governors and senior staff of the University.

The Committee considers the detailed internal audit report findings prepared by the University’s internal audit service, reviews the effectiveness of the systems of internal control and monitors compliance with regulatory requirements. It reviews the annual financial statements, including the accounting policies, for compliance with relevant guidance as issued by the Office for Students and other parties, prior to consideration and approval of the financial statements by the Board. It ensures that the systems and processes for the preparation of statutory returns to the OfS and the Higher Education Statistics Agency are reviewed and that returns have received the required approval prior to submission.

Academic Quality and Student Experience Committee

The Academic Quality and Student Experience Committee meets at least four times a year and focuses on academic governance. The Committee is responsible for reviewing arrangements for monitoring the experience of prospective, current and former students and how the University gains their views and incorporates them within its activities. It makes recommendations to the Resources and Employment Committee on proposals for investment in student facilities and reviews the University’s strategies for supporting the increased retention of students. In consultation with the Academic Board, it also ensures that rules are made with respect to the conduct of students, including procedures for suspension and expulsion.

The Committee receives reports from the Academic Board, performance reviews, reports on partnerships and student experience and student voice reports. During the academic year 2022/23, the Committee provided confirmation to the Board of Governors that it had received adequate and sufficient information to undertake the necessary scrutiny of academic governance and responses to OfS assessment reports.

Governance Committee

The Governance Committee meets at least three times every year and has overseen the implementation of the Board Development Plan. The Committee considers new appointments to the Board of Governors and its Committees and also ensures a balance of skills amongst governors that is sufficient to enable the Board of Governors to meet its primary responsibilities and to ensure stakeholder confidence. The Committee specifies the role and capabilities required of new members, based on an ongoing evaluation of the balance of skills and experience within the Board of Governors. The Committee considers succession planning for the Board of Governors’ membership and appointments to fill vacancies under the University’s Instrument of Government, as well as succession planning for membership of the Board’s committees. Vacancies are widely publicised within and outside the University.

Remuneration Committee

The Remuneration Committee meets once a year and determines the annual remuneration of the Vice Chancellor and the Registrar and University Secretary (as Clerk to the Governors), and provides guidelines to the Vice Chancellor for determining the salaries of senior post holders. The Committee is also responsible for reviewing severance arrangements for senior post holders, taking account of guidance provided by the OfS. The Vice Chancellor is not a member of the Committee but is present to answer questions and provide additional information. The Vice Chancellor and the Registrar and University Secretary are not present for any discussion concerning their own appraisal or remuneration. The Committee membership includes a Student Governor and a Staff Governor.

Attendance of Governors for 2022/23 +

Governor Board Attendance Committee Attendance

INDEPENDENT MEMBERS

Mr Simon Yun-Farmbrough 5/5

The Rt Revd Richard Atkinson OBE 5/5

Ms Helen Beck 3/5

Academic Quality & Student Experience: 3/4

Audit and Compliance: 3/4

Governance: 2/3

Remuneration: 2/2

Resources and Employment: 3/4

Academic Quality & Student Experience: 4/4

Governance: 3/3

Remuneration: 2/2

Remuneration: 1/2

Resources and Employment: 3/4

Governance: 2/3

Ms Isabel Doverty 4/5 Resources and Employment: 3/4

Mr Richard Exact 5/5

Audit and Compliance: 4/4

Remuneration: 2/2

Mr Garry Forsyth 4/5 Resources and Employment: 4/4

Dr Ali Hadawi CBE* 2/5

Mr Simon James 4/5

Councillor M. Aslam Khan* 4/5

Academic Quality & Student Experience: 4/5

Governance: 1/1

Resources and Employment: 4/4

Audit and Compliance: 4/4

Mr Ian McKetty 5/5 Resources and Employment: 3/4

Academic Quality & Student Experience: 4/4

Changes in period

Ms Isabel Nisbet 5/5

Ms Charlynne Pullen 3/3

Ms Judit Seymour 5/5

Mr David Whincup 2/4

Audit and Compliance: 4/4

Academic Quality & Student Experience: 2/2

Governance: 2/2

Audit and Compliance: 4/4

Remuneration: 2/2

Resources and Employment: 2/4

Resigned, February 23

Term completed, May 23

+ Attendance is shown only for Governors who held office at the time when meetings which they were eligible to attend were held.

* Four members of the Board were unable to attend one board meeting due to a clash with a religious holiday.

+ Attendance is shown only for Governors who held office at the time when meetings which they were eligible to attend were held.

* Four members of the Board were unable to attend one board meeting due to a clash with a religious holiday.

Attendance of Governors for 2022/23 + (continued)

CO-OPTED MEMBERS

Mr Mohit Dhingra

NOMINEES OF THE UNIVERSITY’S STAFF

Dr Mohammad Alramahi*

Dr Helen Connolly

Ms Liz Grant

Ms Safina Kausar

NOMINEES OF BEDS SU

Mr Ryan Murphy

Ms Chidinma Akwada

Ms Laura Tamara

Mr Quadri Yusuf*

VICE CHANCELLOR

Professor Rebecca Bunting

and Compliance: 3/4

Quality & Student Experience: 4/4

Resources and Employment: 4/4

Academic Quality & Student Experience: 4/4 Remuneration: 1/2

completed, July 23

Quality & Student Experience: N/A Joined, September 23

Academic Quality & Student Experience: N/A

Audit and Compliance: N/A

Remuneration: N/A

Governance: 1/1

Academic Quality & Student Experience: N/A Governance: 1/1

Joined, July 23

Resources and Employment: N/A Joined, July 23

Academic Quality & Student Experience: 4/4

1/2

Resources and Employment: 4/4

Academic Quality & Student Experience: 3/4

Audit and Compliance: 2/4

Remuneration: 1/2

completed, June 23

completed, June 23

Academic Quality & Student Experience: 4/4

Audit and Compliance: 4/4

Governance: 3/3

Remuneration: 2/2

Resources and Employment: 4/4

INTERNAL CONTROL STATEMENT

The University’s Board of Governors is responsible for the University’s system of internal control and for reviewing its effectiveness. The adequacy and effectiveness of arrangements for corporate governance, risk management and oversight of any statutory and other regulatory responsibilities, including compliance with the OfS’ conditions of registration and any terms and conditions of funding, are ensured through ongoing oversight and review to ensure that they remain fit-for-purpose. This is achieved through a range of review mechanisms including those undertaken internally and by external parties, through internal and external auditors. The University’s system of internal control, which is designed to support the Board of Governors in carrying out its responsibilities, includes a professional internal audit service delivered under terms of reference which reflect guidance issued by the OfS, and whose annual programme is approved by the Audit and Compliance Committee. The Board is ultimately responsible for these arrangements and reviewing the effectiveness of the system of internal control, but discharges detailed review and monitoring to sub-committees and management under a Scheme of Delegation. This process is regularly reviewed by the Audit and Compliance Committee on behalf of the Board of Governors and accords with the guidance on control set out in the CUC Code of Governance for Higher Education.

The review of effectiveness of internal control 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 for managing risk using a risk-based approach and by comments made by the external auditors

in their management letter and other reports. There are clearly defined responsibilities of, and the authority delegated to, senior officers of the University, formalised requirements for approval and control of expenditure and procedures for the management of investment and risk. There is a comprehensive annual planning process, supplemented by detailed annual income, expenditure, capital and cash flow budgets and regular review of institutional performance and of financial results, involving variance reporting and updates of forecast out-turns. The University’s executive managers also receive regular reports on key performance and risk indicators and consider issues indicated by control mechanisms embedded within operational units and reinforced by risk awareness training.

These arrangements also allow for the University to ensure propriety and regularity in the use of public funding which is achieved through the operation of frameworks and policies, including a Code of Conduct for Employees and Financial Regulations, which are underpinned by linked policies, such as an Expenses Policy, a Gifts and Hospitality Policy and procedures in relation to procurement.

The Audit and Compliance Committee is responsible for meeting, at least quarterly, with the external auditors and the internal audit service, and reviewing their work. The Committee meets at least four times a year and considers detailed reports together with recommendations for the improvement of the University’s system of internal control and management’s response and implementation plans. The Committee closely monitors the University’s compliance with the conditions of registration. As part of this, it receives and considers reports from the OfS and other assurance sources as they affect the University’s business and monitors adherence with the regulatory requirements, including the need for ensuring the quality

of data returned for funding purposes. It reviews the University’s annual financial statements together with the accounting policies. Whilst senior staff of the University attend meetings of the Audit and Compliance Committee as necessary, they are not members of the Committee.

The University of Bedfordshire complies with OfS Terms and Conditions of Funding. The University has a robust financial control process in place which enables it to ensure that funds provided by the OfS are used for the purposes intended. In addition, assurance concerning the use of public funds is provided through the work of the external auditors. Further details of the remit and opinion of the external auditors can be found in the independent auditor’s report to the Governing Body of the University which is presented as part of this Annual Report.

The OfS has recently published a final report on a review of the University’s undergraduate Business & Management programmes which took place in 2022-23. The University is working at pace on a change programme to support all its students to achieve successful outcomes. The University will continue to work closely with the OfS to ensure that they are assured of the effectiveness of our delivery of change.

Overall, for the year ended 31 July 2023 and at the time of reporting, the internal auditors have provided satisfactory assurance that the University maintained adequately designed and effective arrangements for risk management, control and governance, and for economy, efficiency and effectiveness.

The Board is of the view that there are no significant internal control weaknesses or failures that have arisen during the financial year ended 31 July 2023 and up to the date of approval of the Financial Statements.

RISK MANAGEMENT

The system of internal control 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. The Board of Governors is responsible for ensuring that a sound system of controls is maintained and, along with the Audit and Compliance Committee, reviews the University’s risk management and risk appetite policies annually to ensure they remain effective and fit for purpose.

The University’s risk management processes identify and manage the major strategic and financial risks. A strategic risk register is maintained and regularly reviewed against institutional objectives. The risk register is also reviewed by the Audit and Compliance Committee at each meeting and by the Board of Governors at least annually. A summary dashboard has been developed so that major and emerging risks are easily tracked by Governors. Strategic risk appetite analysis is maintained and regularly reviewed against institutional objectives and the risk appetite analysis is also reviewed by the Audit and Compliance Committee.

The University faces a number of strategic risks which could affect its academic, professional and commercial ambitions. The Vice Chancellor and the executive group oversee risk management processes and the University takes a systematic approach to managing risk and the levels of risk the University is seeking to take, or willing to accept, are key elements within these arrangements and feature in discussions between executive members and the Board of Governors. Underpinning this is a risk management framework which incorporates an

institutional risk procedure, guidance, and managed arrangements for recording, reviewing and escalating risk information.

Risk management techniques are incorporated into the operational business of the University, including the annual business planning process and the management of major projects. High level risks to the University achieving the Transforming Bedfordshire Strategy are managed closely and documented on the Corporate Risk Register. A corporate risk and control register, covering business, operational and compliance risks as well as financial risks, is maintained throughout the year. Risks are prioritised according to defined criteria of likelihood and impact. The Board of Governors requires regular reports from executive managers on the steps they are taking to manage key risks as part of their ongoing operations, including progress reports on key projects and on internal control activities.

The Audit and Compliance Committee receives reports from the internal audit service on the adequacy and effectiveness of specific aspects of the system of internal control together with recommendations for improvement. The internal audit service reports annually to the Audit and Compliance Committee on its independent opinion on the adequacy and effectiveness of the system of internal control, together with recommendations for improvement. The Audit and Compliance Committee receives comments made by the external auditors in their management letter and other reports.

Risk and business continuity

During 2022/23, working closely with the Board’s Audit & Compliance Committee, we have continued to embed an updated Risk Management Framework. A revised Risk Appetite Statement has been developed and approved by the Board of Governors (The Board) monitoring closely those risks which fall outside of our risk tolerance limits.

During 2022/23, the University also launched its new Business Continuity Plan (BCP) developed through extensive consultation within the University community.

Risk analysis

The revised Strategic Risk Register (The Register) monitors key risks to the University including operational and compliance risks. The Register is reviewed regularly by the Vice Chancellor’s Executive Group and the Board of Governors’ Audit & Compliance Committee. The Board regularly receives a Major Risk Summary. The internal auditors have recently undertaken a review of the University’s revised risk management framework, with a positive report on the outcome.

The key financial risk relates to student recruitment, where a number of external factors, as outlined on page 34, have the potential to affect the University.

THE TRADE UNION (FACILITY TIME PUBLICATION REQUIREMENTS) REGULATIONS 2017

The Trade Union (Facility Time Publication Requirements) Regulations 2017 require the University to publish information on trade union facility time annually and the table of data for the period 1 April 2022 to 31 March 2023 is as follows:

* Activities encompass such things as branch meetings, elections and conference attendance

** Duties encompass such things as casework, representation of employees

TABLE

– RELEVANT UNION OFFICIALS

TABLE 2 –

TABLE 3 – PERCENTAGE OF PAY BILL SPENT ON FACILITY

TABLE 4 – PAID RELEVANT TRADE UNION ACTIVITIES

STATEMENT OF BOARD OF GOVERNOR’S RESPONSIBILITIES IN RESPECT OF THE FINANCIAL STATEMENTS

The Board of Governors is responsible for preparing the Report of the Governors review and the financial statements in accordance with the requirements of the Office for Students’ Terms and Conditions of Funding for Higher Education Institutions and Research England’s Terms and Conditions of Research England Grant and applicable law and regulations.

It is required to prepare group and parent University financial statements in accordance with UK accounting standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The terms and conditions of funding further require the financial statements to be prepared in accordance with the 2019 Statement of Recommended Practice – Accounting for Further and Higher Education, and in accordance with the requirements of the Accounts Direction issued by the Office for Students. The Board of Governors is required to prepare financial statements which give a true and fair view of the state of affairs of the group and parent University and of their income and expenditure, gains and losses and changes in reserves for that period.

In preparing each of the group and parent University financial statements, the Board of Governors is required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent;

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

• assess the group and parent University’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and

• use the going concern 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.

The Board of Governors is responsible for keeping adequate accounting records that are sufficient to show and explain the University’s transactions and disclose with reasonable accuracy at any time the financial position of the parent University. It is responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and has general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the group and to prevent and detect fraud and other irregularities.

The Board of Governors is also responsible for:

• ensuring that 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;

• ensuring that funds provided by the Office for Students and Research England have been applied in accordance with the terms and conditions attached to them;

• ensuring that there are appropriate financial and management controls in place to safeguard public funds and funds from other sources; and

• securing the economical, efficient and effective management of the university’s resources and expenditure.

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.

Simon Yun-Farmbrough Chair of the Board of Governors

15 December 2023

INDEPENDENT AUDITOR’S REPORT TO THE BOARD OF GOVERNORS REPORT ON

THE AUDIT OF THE

FINANCIAL STATEMENTS

Opinion

We have audited the financial statements of the University of Bedfordshire (“the University”) and its subsidiaries (the ‘Group’) for the year ended 31 July 2023 which comprise the Consolidated and University Statement of Comprehensive Income and Expenditure, the Consolidated and University Statement of Changes in Reserves, the Consolidated and University Balance Sheets, the Consolidated Cash Flow Statement and Notes to the financial statements, including the statement of accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the Group’s and of the University’s affairs as at 31 July 2023, and of the Group’s and of the University’s income

and expenditure, gains and losses and changes in reserves, and of the Group’s cash flows, for the year then ended; and

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Board of Governors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast

significant doubt on the Group’s or University's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Board of Governors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Board of Governors is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Responsibilities of the Board of Governors

As explained more fully in the statement of the responsibilities of the Board of Governors on page 45, the Board of Governors is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Board of Governors determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Board of Governors is responsible for assessing the Group’s and University’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Governors either intend to liquidate the University or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,

they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

As part of our planning process:

• We enquired of management the systems and controls the University has in place, the areas of the financial statements that are most susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The University did not inform us of any known, suspected or alleged fraud.

• We obtained an understanding of the legal and regulatory frameworks applicable to the University. We determined that the following were most relevant: FRS 102, 2019 Statement of Recommended Practice (SORP): 'Accounting for Further and Higher Education'.

• We considered the incentives and opportunities that exist in the University, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.

• Using our knowledge of the University, together with the discussions held with the University and

internal auditors at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

• Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.

• Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

• Testing key income lines, in particular cut-off, for evidence of management bias.

• Assessing the extent of compliance, or lack of, with the relevant laws and regulations.

• Obtaining third-party confirmation of material bank balances, loans and investments.

• Performing physical verifications of key assets.

• Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to the defined benefit pension obligation.

• Documenting and verifying all significant related party balances and transactions.

• Reviewing documentation such as the Board of Governors’ and committee minutes, for discussions of irregularities including fraud.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the Governing Body.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

We are required to report on the following matters by the Accounts Direction dated 25 October 2019 issued by the Office for Students (“the Accounts Direction).

In our opinion, in all material respects:

• funds from whatever source administered by the University for specific purposes have been properly applied to those purposes and managed in accordance with the relevant legislation;

• funds provided by the OfS, UK Research and Innovation (including Research England), the Education and Skills Funding Agency and the Department for Education have been applied in accordance with the relevant terms and conditions; and

• the requirements of the OfS’s Accounts Direction (issued October 2019) have been met.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the OfS Accounts Direction (issued October 2019) requires us to report to you where:

• the University’s grant and fee income, as disclosed in note 4 to the financial statements, has been materially misstated; or

• the University’s expenditure on access and participation activities for the financial year, as disclosed in note 10 to the financial statements, has been materially misstated.

USE OF OUR REPORT

This report is made solely to the Board of Governors as a body in accordance with the University's Articles, Charters, Statutes or Ordinances, and section 124B of the Education Reform Act 1988. Our audit work has been undertaken so that we might state to the Board of Governors those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the University and the Board of Governors as a body for our audit work, for this report, or for the opinions we have formed.

HW Fisher LLP

Chartered Accountants

Statutory Auditor

Acre House

11-15 William Road

London United Kingdom

NW1 3ER

Date: 15 December 2023

FINANCIAL STATEMENTS

STATEMENT OF ACCOUNTING POLICIES

for the year ended 31 July 2023

1 Legal status

The University of Luton was established as a Higher Education Corporation in England under the provisions of the Education Reform Act 1988 and the Further and Higher Education Act 1992. The University of Bedfordshire was established in August 2006 by order of the Privy Council, following the merger between the University of Luton and De Montfort University's Bedford campus.

The University of Bedfordshire is an exempt charity, with its purpose being the advancement of education, as defined under the Charities Act 2011 and is regulated by the Office for Students (OfS) having been regulated previously by the Higher Education Funding Council for England (HEFCE) until 31 March 2018.

The address of the registered office is University of Bedfordshire, University Square, Luton, LU1 3JU.

2 Basis of preparation

The Group and the University financial statements have been prepared in accordance with United Kingdom Accounting Standards, including Financial Reporting Standard 102 (FRS 102) and the Statement of Recommended Practice (SORP): Accounting for Further and Higher Education (2019 edition). They have also been prepared in accordance with the Accounts Direction issued by the Office for Students (OfS), the Terms and conditions of funding for higher education institutions issued by the Office for Students and the Terms and conditions of Research England Grant.

The University is a public benefit entity and therefore has applied the relevant public benefit requirement of the applicable UK laws and accounting standards.

The financial statements are prepared in sterling which is the functional currency of the group and rounded to the nearest £’000.

Going concern

The Group and the University’s activities, together with the factors likely to affect its future development, performance and position, are set out in the Financial Review which forms part of the Report of the Governors. The Report of the Governors also describes the financial position of the University, its cash flows, liquidity position and borrowing facilities.

In preparing these financial statements, the Board of Governors has had regard to the following:

• Cash flow forecasts which have been reviewed for the following three financial years. These forecasts show that the Group and the University will have sufficient funds to meet their liabilities as they fall due throughout the forecast period and from the date of approval of the financial statements.

• Forecasts for cash flows, income and expenditure and net cash indicate that the University will continue to comply with all financial loan covenants throughout the going concern assessment period.

• The University also has access to a £15m revolving credit facility (RCF). The forecasts for cash flows and income and expenditure show that the University will not need to draw on the RCF at any point during the going concern assessment period.

Having considered the above the Board of Governors is confident that the Group and parent University will be able to continue its operations and have the finances to do so throughout the going concern assessment period and has therefore prepared the financial statements on a going concern basis.

3 Basis of consolidation

The consolidated financial statements combine the financial statements of the University and all of its subsidiaries for the financial year to 31 July 2023.

Intragroup transactions are eliminated on consolidation and all income and expenditure relates to external activities only.

The consolidated financial statements do not include the income and/or expenditure of the students’ union, BedsSU, as the University does not exert control or dominant influence over BedsSU’s policy decisions.

4 Income recognition

Fee income

Tuition fees and income receivable under education contracts are credited to the Statement of Comprehensive Income and Expenditure over the period of study pertaining to that income as follows:

– Undergraduate income

Over the teaching period (including placement periods) for any modules where study has taken place

– Postgraduate income

Over the full duration of the programme, inclusive of any writing up period. Where additional fees are raised for specific time-limited writing up periods, these are recognised as charged.

Where fee discounts are applied the income is shown net of the relevant discount.

Discretionary bursaries and scholarships are accounted for as expenditure on a gross basis, and are not deducted from income.

Income from goods or services

Income from the sale of goods or services is credited to the Statement of Comprehensive Income and Expenditure when the goods or services are supplied to the external customers or the terms of the contract have been satisfied.

Revenue grant funding

Government revenue grants, including block teaching grants and research grants, are recognised in income over the periods in which the University recognises the related costs for which the grant is intended to compensate. Where part of a government grant is deferred, the deferred element is recognised as deferred income within creditors and allocated between creditors due within one year and creditors due after more than one year as appropriate.

Grants (including research grants) from non-governmental bodies are recognised in income when the University is entitled to the income and performance related conditions have been met. Income received in advance of performance related conditions being met is recognised as deferred income within creditors on the Balance Sheet and released to income as the conditions are met.

Capital grants

Government capital grants are recognised in income over the expected useful lives of the respective assets.

Capital grants received from non-governmental bodies are recognised in income when the University is entitled to the funds, subject to any performance related conditions being met.

Investment income

Investment income, including interest receivable on cash balances and short-term deposits, is credited to the Statement of Comprehensive Income and Expenditure on a receivable basis.

Donations and endowments

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

Donations with no restrictions are recognised in income when the University is entitled to the funds. Income from, and changes in the capital value of, endowment investments are recorded in income in the year in which they arise and as either restricted or unrestricted income according to the terms of each relevant endowment fund.

Funding received on an agency basis

Funds which the University receives and disburses as paying agent on behalf of a funding body are excluded from the Statement of Comprehensive Income and Expenditure where the University is exposed to minimal risk or enjoys minimal economic benefit related to the transaction.

5 Fixed assets

General

Fixed assets are stated at cost or deemed cost as set out below, less accumulated depreciation and any accumulated impairment losses. Certain items of fixed assets that had been revalued to fair value on or prior to the date of transition to FRS 102, are measured on the basis of deemed cost, being the revalued amount at the date of that revaluation.

Where parts of a fixed asset have different useful lives, they are accounted for as separate items of fixed assets.

Land

Land is stated at deemed cost.

Freehold land is not depreciated as it is considered to have an indefinite useful life.

Freehold buildings

Freehold buildings are stated at cost and are depreciated on a straight-line basis over their expected useful lives, up to a maximum of fifty years for each relevant component.

Costs incurred in relation to buildings after initial purchase or construction are capitalised to the extent that they increase the expected future benefits to the University.

For new developments, design costs and professional fees are capitalised only when planning permission has been received.

Assets under construction are accounted for at cost and are not depreciated until they are brought into use.

Leasehold buildings are depreciated over the life of the lease.

Equipment

Equipment costing less than £10,000 is expensed in the year of purchase, other than where it constitutes an integral and essential element of a larger project, including planned significant rolling replacement programmes, in which case it is capitalised.

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

Furniture, fixtures and fittings 10 years

Other office and teaching equipment 5 years

Personal computers (PCs) 5 years

Computer equipment other than PCs 5 years

Leased equipment

Over the term of the lease

Depreciation methods, useful lives and residual values are reviewed at the date of preparation of each Balance Sheet.

Borrowing costs

Borrowing costs which are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised.

6 Investment properties

Investment properties comprise land and buildings held for rental income or capital appreciation rather than for use in delivering services.

Investment properties are measured initially at cost and subsequently at fair value with movements recognised as part of the surplus/(deficit) for the year.

Investment properties are not depreciated but are revalued or reviewed annually according to market conditions as at 31 July each year.

7 Heritage assets

Acquisitions since 1 August 1999 have been capitalised at cost or, in the case of donated assets, at expert valuation on receipt.

Heritage assets are not depreciated as their long economic life and high residual value mean that any depreciation would not be material.

8 Investments

Non-current asset investments are held on the Balance Sheet at amortised cost less impairment. Current asset investments are held at fair value with movements recognised as part of the surplus/(deficit) for the year.

9 Stock

Stock is held at the lower of cost and net realisable value.

10 Cash and cash equivalents

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

Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash with insignificant risk of change in value. Therefore an investment will normally be classified as a cash equivalent if it has a maturity of three months or less from the date of commencement.

11 Finance leases

Leases in which the University assumes substantially all the risks and rewards of ownership of the leased asset are classified as finance leases. Leased assets acquired by way of finance lease and the corresponding lease liabilities are initially recognised at an amount equal to the lower of their fair value and the present value of the minimum lease payments at inception of the lease.

Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.

12 Operating leases

Costs in respect of operating leases are charged on a straight-line basis over the lease term. Any lease premiums or incentives are spread over the minimum lease term.

13 Maintenance of premises and equipment

The cost of routine corrective maintenance is charged to the Statement of Comprehensive Income and Expenditure as incurred.

14 Employment benefits

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

15 Accounting for retirement benefits

The three principal pension schemes of which the University’s employees are members are the Bedfordshire Pension Fund (BPF), the Teachers’ Pension Scheme (TPS) and the Universities Superannuation Scheme (USS).

Bedfordshire Pension Fund (BPF)

The BPF is part of the Local Government Pension Scheme (“LGPS”) and is accounted for as a defined benefit pension scheme.

The assets of the BPF are held separately from those of the University. Pension scheme assets are measured using market values. Pension scheme liabilities are measured using a projected unit method and discounted at the current rate of return on a high quality corporate bond of equivalent term and currency to the liability. Any pension scheme deficit is recognised in full. The movement in the pension scheme deficit is split between operating charges, finance items and actuarial gains and losses. Any pension scheme asset is not recognised, as there is no unconditional entitlement to a refund from the scheme or reduced contributions.

Teachers’ Pension Scheme (TPS)

The TPS is a defined benefit scheme. The nature and composition of the TPS means that the University is unable to identify its share of the underlying assets and liabilities of the TPS on a consistent and reasonable

basis and therefore accounts for the scheme as if it were a defined contribution scheme. As a result, the amount charged to the Statement of Comprehensive Income and Expenditure represents the contributions payable to the scheme in respect of the accounting period.

Universities Superannuation Scheme (USS)

The USS is a multi-employer defined benefit scheme for which it is not possible to identify the assets and liabilities attributable to University members due to the mutual nature of the scheme and therefore this scheme is accounted for as a defined contribution scheme. In accordance with the requirements of the SORP, the University currently recognises a provision for its obligation to fund past deficits arising within the USS.

16 Provisions

Provisions are recognised in the financial statements when:

• the University has a present obligation (legal or constructive) as a result of a past event;

• it is probable that an outflow of economic benefits will be required to settle the obligation; and

• a reliable estimate can be made of the amount of the obligation.

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

17 Significant judgements and estimates

The preparation of the consolidated financial statements requires management to make judgements, estimates and assumptions in the application of accounting policies that affect reported amounts of assets, liabilities, income and expenditure. These decisions are made by management using the best information available at the time of preparation of the financial statements.

Estimates and judgements are periodically evaluated and are based on historical experience and other factors including expectations of future events that are believed to be reasonable under the circumstances. Estimates based on assumptions and judgements could differ significantly from actual results. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.

Details of the University’s critical accounting judgements and estimates are described below.

Estimates for the accounting for employee benefits

FRS 102 requires that certain assumptions are made in order to determine the amount to be recorded for retirement benefit obligations and pension plan assets for certain of the University’s defined benefit plans. These are mainly actuarial assumptions such as

discount rate, mortality rates and expected inflation rates for both the Retail Prices Index (RPI) and the Consumer Prices Index (CPI). In determining the appropriate assumptions, the University has regard to various external sources, including as provided by actuaries and inflation projections and targets published by the Bank of England.

Differences arising from actual experience or future changes in assumptions will be reflected in future years. The key assumptions made for 2023 are included in note 30.

The effect on the surplus of changes in the assumptions adopted at 31 July 2023, prior to the asset ceiling adjustment, would be as follows:

Recoverability of debtor balances

The provision for doubtful debts up to 12 months old are based upon estimates which consider the following: the nature of the amount due; current trends for each type of debtor; historical experience; and any significant current economic factors. All balances more than 12 months old are fully provided for.

At 31 July 2023, the total value of provisions made in respect of all debtor balances was £10.1m (2022: £25.5m).

18 Foreign currency

Transactions in foreign currencies are translated to pounds sterling at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated to pounds sterling at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in the surplus/(deficit) for the year.

19 Contingent assets and contingent liabilities

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

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

Contingent assets and liabilities are not recognised in the Balance Sheet but are disclosed in the Notes to the Financial Statements.

20 Taxation

The University is an exempt charity within the meaning of Part 3 of the Charities Act 2011. It is therefore a charity within the meaning of Para 1 of schedule 6 to the Finance Act 2010 and accordingly, the University is potentially exempt from taxation in respect of income or capital gains received within categories covered by Section 478-488 of the Corporation Tax Act 2010 (CTA 2010) or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied to exclusively charitable purposes.

The University is partially exempt in respect of Value Added Tax, as its main activity is the supply of education which is an exempt supply for the purposes of VAT. Accordingly, it can only recover a minor element of VAT charged on its inputs. Irrecoverable VAT on supplies and services received is included in the related costs in the Statement of Comprehensive Income and Expenditure. It is also added to the cost of tangible fixed assets as appropriate, where the inputs themselves are tangible fixed assets by nature.

The University’s subsidiaries are liable to Corporation Tax in the same way as any other commercial organisation.

Deferred tax is recognised in full on timing differences which result in an obligation at the balance sheet date to pay more tax, or a right to pay less tax, at a future date, at rates expected to apply when they crystallise based on current rates and law. Timing differences

arise from the inclusion of items of income and expenditure in taxation computations in periods different from those in which they are included in financial statements. Deferred tax assets are recognised only when it is considered probable that the balance will be recoverable in the foreseeable future. Deferred tax assets and liabilities are not discounted.

21 Financial instruments

The University has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial assets – which includes deposits and investments, and financial liabilities including all loans – are classified as basic instruments and held at amortised cost using the effective interest rate method or cost.

22 Reserves

Reserves are classified as restricted or unrestricted. Restricted endowment reserves include balances which, through endowment to the University, are held as permanently restricted funds which the University must hold in perpetuity.

Other restricted reserves include balances where the donor has designated a specific purpose and therefore the University is restricted in the use of these funds.

CONSOLIDATED AND UNIVERSITY STATEMENT OF COMPREHENSIVE INCOME AND EXPENDITURE for the year ended 31 July 2023

All items of income and expenditure relate to continuing activities.

CONSOLIDATED AND UNIVERSITY STATEMENT OF CHANGES IN RESERVES

CONSOLIDATED AND UNIVERSITY BALANCE SHEETS

as at 31 July 2023

The financial statements on pages 49 to 99 were approved by the Board of Governors on 24 November 2023 and signed on their behalf on15 December 2023 by:

Professor Rebecca Bunting Vice Chancellor and Chief Executive

Simon Yun-Farmbrough Chair of the Board of Governors

CONSOLIDATED CASH FLOW STATEMENT

for the year ended 31 July 2023

NOTES TO THE FINANCIAL STATEMENTS

1 Tuition fees and education contracts

2 Funding body grants

NOTES TO THE FINANCIAL STATEMENTS

3 Research grants and contracts

4 Grant and fee income analysis

The 2022 comparatives have been reanalysed to align with the total amounts reported in notes 1 to 3 above.

NOTES TO THE FINANCIAL STATEMENTS

5 Other operating income

6

7

NOTES TO THE FINANCIAL STATEMENTS

8 Staff costs

Severance payments payable total £84,000 (2022: £118,000) to 11 (2022: 8) employees for the year ended 31 July 2023.

NOTES TO THE FINANCIAL STATEMENTS

8 Staff costs (continued)

The Vice Chancellor does not receive any bonus payments and her travel expenses are reimbursed under the same policy that applies to all University staff.

The Vice Chancellor’s salary and total remuneration expressed as multiples of the median full time equivalent salary of all staff employed during each year were as follows:

The Vice Chancellor’s remuneration is determined by the Remuneration Committee, which comprises seven Governors, including the Chair of the Board of Governors, a staff Governor, and a Co-President of the Students’ Union. The Vice Chair of the Board of Governors chairs the Remuneration Committee. The Vice Chancellor is not a member of the Remuneration Committee and is not present for any discussion concerning her salary or bonus.

In considering the Vice Chancellor’s remuneration, the Chair of the Board of Governors provided background to the appraisal process and gave a brief precis of the Vice Chancellor’s performance in relation to her objectives. There followed a discussion during which the Vice Chancellor’s performance against her objectives was considered. The Remuneration Committee has regard to the following factors:

• The size and complexity of the institution

• The income generated, of more than £100m

• The contribution to the local economy of more than £400m

• The relationships with a diverse range of partner organisations, within the UK and internationally

• The student population, which numbers almost 20,000

The number of staff employed, totalling more than 1,500 (including visiting staff)

NOTES TO THE FINANCIAL STATEMENTS

8 Staff costs (continued)

The Committee also receives information relating to the Vice Chancellor’s salary and total remuneration expressed as multiples of the median full time equivalent salary of all staff employed during the year, including comparisons with other universities, including Coventry University, Anglia Ruskin University, University of Hertfordshire, Northampton University and Middlesex University.

Objectives were set for the Vice Chancellor for the academic year 2022/23 and progress towards the achievement of those objectives was reviewed by the Remuneration Committee in October 2023.

The following objectives were set for 2022/23:

• Objective 1: To conduct a major review of the optimum size, shape and profile of the University to improve quality and reduce cost.

• Objective 2: Consider the provision at Study Centres, recognising its intrinsic relation to Objective 1.

• Objective 3: To ensure that interactions with the OfS deliver the best outcome for the University.

• Objective 4: Create the conditions to support achievement of four academic Super KPIs; retention, student satisfaction, graduate outcomes and the attainment gap.

• Objective 5: Secure greater change in culture and behaviour across the University.

• Objective 6: Strengthen community engagement in line with strategy.

The remuneration of all higher paid staff, excluding employer’s pension contributions, was in the following ranges:

NOTES TO THE FINANCIAL STATEMENTS

8 Staff costs (continued)

Key management personnel

The Vice Chancellor’s Executive Group collectively represent key management personnel as they have the authority and responsibility for planning, directing and controlling the activities of the University. The remuneration paid, excluding pension contributions, and the full-time equivalent number of staff who were members of the Vice Chancellor’s Executive Group were as follows:

Compensation for loss of office

There was no compensation for loss of office paid to employees earning in excess of £100,000 and funded from general income in the current year (2022: £nil).

NOTES TO THE FINANCIAL STATEMENTS

9 Other operating expenses

9

Other operating expenses (continued)

Other operating expenses stated above includes fees (net of VAT) paid directly to the external auditors for audit and other services provided by HW Fisher as follows:

Other Operating expenses stated above includes fees (net of VAT) paid directly to the external auditors for audit and other services provided by KPMG LLP as follows:

NOTES TO THE FINANCIAL STATEMENTS

10 Access and participation

The expenditure for Access and participation activities has been determined using data extracted directly from the University’s student records system and financial records as applicable. In particular:

• The expenditure shown for access investment, financial support and disability support comprises £4,582,000 (2022: £5,595,000) of directly attributable and identifiable amounts incurred/paid out for these activities. An additional £314,000 (2022: £393,000) has been included for central staffing and administration in support of these activities, based upon a proportional allocation of central overhead expenditure.

• The proportion of disabled students has been extracted from University data which is gathered as part of the application and admissions processes and updated as relevant for any subsequent information pertaining to each student. In order that disabled students receive all necessary support to progress and succeed in their studies, the University provides equipment and specialist external services as appropriate and the per capita level of University expenditure for disabled students is therefore higher on average than that for the student body as a whole. However, for the purposes of the above, the per capita level of expenditure to support disabled students has been conservatively assumed to be at least equivalent to the level of per capita support expenditure across all students (disabled and non-disabled).

• Research and evaluation costs of £205,000 (2022: £142,000) are based upon a direct time apportionment of the activities of relevant staff, at their applicable pay rates. No overhead allocation has been made for this activity.

The total expenditure of £5,101,000 (2022: £6,130,000) includes £1,382,000 (2022: £1,602,000) of staff costs which are included in the overall staff cost figures included in the financial statements (see note 8).

Further details of the University’s access and participation plan can be found at: https://www.beds.ac.uk/about-us/our-university/public-information/ofs/

11 Interest and other finance costs

CONSOLIDATED

12 Taxation

The University did not incur a tax charge or credit in either the current or prior years.

At 31 July 2023 a deferred tax asset of £2,000 (2022: £3,000) was unprovided as it was not considered probable that the balance would be recoverable in the foreseeable future.

The University meets the definition of a charitable company for UK corporation tax purposes as it is considered to pass the tests set out in Paragraph 1 schedule 6 Finance Act 2010. Accordingly, the University is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

13 Fixed assets

CONSOLIDATED

under

TO

13 Fixed assets (continued)

Land is stated at its carrying value under previous UK Generally Accepted Accounting Principles (GAAP) as its deemed cost on transition to FRS 102.

Buildings have been included at their historical cost.

In accordance with FRS102, Section 17, Heritage Assets totalling £150,000 (2022: £150,000) relating to The Hockliffe Collection of early British children’s books have not been depreciated.

In addition to the properties included as fixed assets above, the University occupies a site in Buckinghamshire in relation to the delivery of nursing contracts. These premises are used for teaching and administrative purposes. The combined annual rental and utilities cost in the year ended 31 July 2023 amounted to £66,000 (2022: £54,000) and is included within Other operating expenses.

NOTES TO THE FINANCIAL STATEMENTS

14 Investment properties

Investment properties are revalued or reviewed annually according to market conditions as at 31 July each year.

15 Nomination agreements

The University has in place nomination agreements with both of its accommodation partners. The agreements have been individually assessed and determined as not satisfying the relevant criteria stipulated under FRS 102 to be accounted for as service concession arrangements. They are therefore both treated as off balance sheet arrangements.

The status of each nomination agreement is as follows:

The agreement with Homes for Students nomination is on a rolling three year basis. The maximum potential payment for the void rooms is £2,695,000, based on room rent prices for the 2023/24 academic year.

The agreement with Campus Living Villages (CLV) comprises an original Strategic Partnering Agreement with CLV, as amended by the following, under each of which the University could be required to make a payment to CLV in the event that there were certain void rooms within the halls of residence operated by CLV:

• a Supplemental Agreement (signed in July 2022). This capped the University’s maximum payment at £1,200,000 per year. No void payments were due in the year ended 31 July 2023, and this Supplemental Agreement has now been superseded by the Additional Supplemental Agreement.

• an Additional Supplemental Agreement (signed in September 2023). The Supplemental Agreement provides for a minimum nomination level of 404 rooms to 2027/28, after which the University shall be permitted to nominate a number of rooms on an annual basis. The maximum potential payment for the void rooms is £12,456,000, based on room rent prices for the 2023/24 academic year.

16 Non-current investments

CONSOLIDATED UNIVERSITY

The University owns 100% of the issued share capital of 1,000 £1 ordinary shares of University of Bedfordshire Enterprises Limited, a company registered in England and Wales and operating in the UK, whose principal activities are the provision of conferences, full cost courses and consultancy. The registered office of University of Bedfordshire Enterprises Limited is University Square, Luton, England, LU1 3JU.

The University owns 100% of the issued share capital of the following dormant companies, all of which are registered in England and Wales:

1 £1 ordinary share in Bedford Business School Limited

2 £1 ordinary shares in Bedfordshire Business School Limited

1 £1 ordinary share in Milton Keynes Business School Limited

1 £1 ordinary share in UoB Student Accommodation (Luton) Limited

150 £1 ordinary shares in University Campus Milton Keynes Limited

9,999 £1 ordinary shares in The Centre for Competitiveness Limited

NOTES TO THE FINANCIAL STATEMENTS

17 Trade and other receivables

falling due within one year:

Trade receivables

In previous periods, the University recognised the full debtor balance and full amount of calculated deferred income in respect of student registrations in the spring and summer, and hence for which all services had not been provided by the year end. The University has re-assessed this accounting treatment in the current year such that only the element of the debt which relates to services that had been provided by 31 July has been recognised. The amounts recognised within Trade receivables in respect of services which had not been provided at 31 July 2023 was £nil (2022: £11,665k).

18 Current asset investments

Deposits are held with UK clearing banks licensed by the Financial Conduct Authority at the balance sheet date. The interest rates for these deposits are fixed for the duration of the deposit at the time of the placement.

NOTES TO THE FINANCIAL STATEMENTS

19 Creditors: amounts falling due within one year

Deferred income

In previous periods, the University recognised the full debtor balance and full amount of calculated deferred income in respect of student registrations in the spring and summer, and hence for which all services had not been provided by the year end. The University has re-assessed this accounting treatment in the current year such that only the element of the debt which relates to services which had been provided by 31 July has been recognised. The amounts recognised within Deferred income in respect of services which had not been provided at 31 July 2023 was £nil (2022: £11,665k).

Deferred income includes the following items of income which have been deferred until specific performance related conditions have been met.

NOTES TO THE FINANCIAL STATEMENTS

20 Creditors: amounts falling due after more than one year

21 Loans

on the loans is charged as follows:

HSBC 2.96% fixed rate

Barclays Bank Tranche A (i) 5.17% fixed rate

Barclays Bank Tranche A (ii) 0.22% above SONIA*

Barclays Bank Tranche B 5.34% fixed rate

Lloyds Bank 0.22% above base rate

* In line with changes required by the UK Financial Conduct Authority arising from the abolition of the London Interbank Offered Rate (LIBOR) for all UK loans, the basis of this loan was amended in 2021/22 from LIBOR to a new measure, the Sterling Overnight Index Average (SONIA).

NOTES TO THE FINANCIAL STATEMENTS

22 Pension provisions

At 31 July 2023, the LGPS fund FRS 102 actuarial report resulted in a pension asset of £11,748k. The asset has not been recognised as such on the balance sheet, as there is no unconditional entitlement to a refund from the scheme or reduced contributions. The £11,748k is eliminated by an additional asset valuation charge to Other comprehensive expenditure.

Universities Superannuation Scheme (USS) deficit

The obligation to fund the past deficit on the USS arises from the contractual obligation with the pension scheme for total payments relating to benefits arising from past performance. Management have assessed expected changes in the number of employees within the USS scheme and expected salary payments over the period of the contracted obligation in assessing the value of this provision.

23 Other provisions

The dilapidations provision represents the anticipated costs of premises where the lease is due to terminate and/or the University plans to exit the premises and/or it is expected that the landlord will exercise a notice period.

Other provisions include amounts relating to other uncertain events.

NOTES TO THE FINANCIAL STATEMENTS

24 Restricted reserves – Income and expenditure account

The above funds are used for scholarships, prizes and bursaries.

25 Unrestricted reserves

26 Consolidated reconciliation of debt

NOTES TO THE FINANCIAL STATEMENTS

27 Contingent liabilities

Nomination Agreements

Details of the nomination agreements can be found in note 15. There are no current liabilities under these guarantees.

University of Bedfordshire Enterprises Limited

The University has given written undertakings to support its trading subsidiary company, University of Bedfordshire Enterprises Limited, for a minimum period of twelve months from the date of approval of that company’s most recent financial statements, hence until 30 April 2024.

28

29

30 Pension schemes

Employees of the University and its subsidiaries belong principally to two pension schemes, the Teachers’ Pension Scheme (TPS) and the Bedfordshire Pension Fund (BPF). A small number of staff belong to the Universities Superannuation Scheme (USS).

The total employer contributions in the year, excluding the pension adjustment were:

Equalisation of Guaranteed Minimum Pension benefits (GMP)

On 23 March 2021, the Government published the outcome to its Guaranteed Minimum Pension (GMP) Indexation consultation, concluding that all public service pension schemes, including the LGPS, will be directed to provide full indexation to members with a GMP reaching Statutory Pension Age (SPA) beyond 5 April 2021. This is a permanent extension of the existing ‘interim solution’ that had previously applied to all members with a GMP reaching SPA on or after 6 April 2016.

BPF: The standard assumption has been that the BPF will pay limited increases for members that have reached SPA by 6 April 2016, with the Government providing the remainder of the inflationary increase. For members that reach SPA after 6 April 2016, the assumption is that the fund will be required to pay the entire inflationary increase. As this assumption is consistent with the consultation outcome, it is not considered that any adjustments are required to the value placed on the liabilities as a result of the UK Government’s outcome.

USS: The USS provision included within the financial statements at note 22 will only be impacted to the extent that the change in benefits require increases to cash financing.

Impact of Lloyds judgement on past transfer values

The Lloyds Banking Group court case involved a ruling that, in cases where a member exercised their right to a transfer value out of the scheme, the trustee had the duty to make a transfer payment that reflects the member’s right to equalised benefits and remains liable if an inadequate transfer payment had been paid.

It is not yet known if, or how, this will affect the LGPS, pending guidance from the UK Government and the Chartered Institute of Public Finance Accountants. Pending receipt of this guidance and associated data, no allowance has been made at 31 July 2023 to reflect this judgement.

NOTES TO THE FINANCIAL STATEMENTS

30 Pension schemes (continued)

McCloud/Sargeant judgements

An allowance of £954k for the McCloud remedy was recognised as part of the University’s liabilities in its actuarial valuation at 31 July 2019, and this has been retained at an equivalent level in all subsequent valuations including at 31 July 2023, pending publication of remedial regulations.

Remedial regulations in respect of the McCloud and Sargeant judgements came into force on 1 October 2023.

Teachers’ Pension Scheme

The Teachers’ Pension Scheme (TPS) is a statutory, contributory, scheme, with final salary and/or career average earnings sections for members according to their joining date and expected normal pensionable age.

As the University is unable to identify its share of the assets and liabilities of the TPS on a consistent and reasonable basis, the scheme has been accounted for in these financial statements as if it were a defined contribution scheme, as required by FRS102, ‘Retirement benefits’.

Actuarial reviews of the scheme are undertaken at four yearly intervals. Contributions for the year ended 31 July 2023 are based on the actuarial review undertaken as at 31 March 2016 which was published in March 2019. As a result of this review the contribution rate for employers was increased to 23.68%, to take effect from 1 September 2019; contribution rates for employees were left unchanged. The contribution rates for the future, current and prior years are set out below:

TO

30 Pension schemes (continued)

The principal assumptions used in the 31 March 2016 valuation and the summary of valuation of assets and accrued benefits were as follows:

Actuarial method

Prospective benefits

The results of the actuarial valuation of the TPS as at 31 March 2020 was published in October 2023. As a result of this review the contribution rate for employers will increase to 26.80%, with effect from 1 April 2024; contribution rates for employees are unchanged. A copy of the valuation report can be found at the Teachers’ Pension website:

Valuation | FAQs | Teachers’ Pensions (teacherspensions.co.uk)

Bedfordshire Pension Fund

General matters

The Bedfordshire Pension Fund (BPF) is a funded defined benefit scheme with the assets held in separate trustee administered funds. The total contributions for the year ended 31 July 2023 were £5,776,000 (2022: £5,506,000) of which employer contributions totalled £4,390,000 (2022: £4,189,000) and employee contributions totalled £1,386,000 (2022: £1,317,000).

The most recent full triennial actuarial valuation of the fund was undertaken by a qualified independent actuary as at 31 March 2022 and completed in March 2023.

The results of the valuation undertaken as at 31 March 2022 have been updated to 31 July 2023 and to 31 July 2022 in actuarial valuations prepared for FRS 102 purposes by that actuary. The information below has taken from those updated valuations respectively.

NOTES TO THE FINANCIAL STATEMENTS

30 Pension schemes (continued)

Assumptions used in valuations for financial statements purposes

The major assumptions used in valuations for the current year and the prior year were:

The discount rate is based upon a corporate bond yield curve appropriate to the duration of the liabilities. The discount rate has been based on a dataset of AA corporate bonds as maintained, measured and provided by actuarial advisers.

Contribution rates

The agreed University contribution rates for the prior, current and future years are as follows:

30 Pension schemes (continued)

The University’s contribution rate and additional contributions for the period from 1 April 2023 were determined as part of the triennial actuarial valuation carried out at 31 March 2022. As part of this process, it was agreed that the change in the University’s contribution rate and additional contributions would take effect from 1 August 2023, and would apply on an August to July cycle thereafter. To facilitate this transition in contribution periods, the contribution rates and additional contributions which had been agreed for the period to 31 March 2023 were extended to 31 July 2023, on a pro-rata basis as applicable.

The University’s contribution rate and additional contributions for the periods from 1 April 2020 to 31 March 2023 were determined as part of the triennial actuarial valuation carried out at 31 March 2019.

The contribution rates payable by employees are banded according to levels of pensionable pay. The range of contribution rates payable is from a minimum of 5.50% to a maximum of 12.50%.

Scheme assets

The fair value of the University’s share of the scheme’s assets and the expected rates of return thereon are set out in the table below:

The scheme’s assets are not intended to be realised in the short term and may be subject to significant change before they are realised.

NOTES TO THE FINANCIAL STATEMENTS

30 Pension schemes (continued)

NOTES TO THE FINANCIAL STATEMENTS

30 Pension schemes (continued)

The estimated value of employer contributions for the year to 31 July 2024 is £4,710,000 (estimated for year to 31 July 2023: £4,204,000).

NOTES TO THE FINANCIAL STATEMENTS

30 Pension schemes (continued)

Asset

Asset

NOTES TO THE FINANCIAL STATEMENTS

30 Pension schemes (continued)

Universities Superannuation Scheme

At 31 March 2023, the USS had over 220,000 (2022: 212,000) active members and the University had 36 (2022: 38) active members participating in the scheme.

The total pension credit in respect of the USS for the University for the year ended 31 July 2023 was £137,000 credit (2022: £1,741,000 charge), comprising contributions payable of £454,000 (2022: £473,000) and an interest charge of £72,000 (2022: £15,000) and movements relating to actuarial assumptions of £663,000 credit (2022: £1,253,000 charge).

Deficit recovery contributions due within one year for the University are £132,000 (2022: £147,000).

The latest available complete actuarial valuation of the USS is as at 31 March 2020 (the valuation date), and was completed in October 2021. The valuation was carried out using the projected unit method.

Since the University cannot identify its share of USS Retirement Income Builder (defined benefit) assets and liabilities, the following disclosures reflect those relevant for those assets and liabilities as a whole.

The 2020 valuation was the sixth valuation for the scheme under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to have sufficient and appropriate assets to cover their technical provisions. At the valuation date, the value of the assets of the scheme was £66.5bn and the value of the scheme’s technical provisions was £80.6bn indicating a shortfall of £14.1bn and a funding ratio of 83%.

Financial Assumptions

The key financial assumptions used in the 2020 valuation are described below. More detail is set out in the Statement of Funding principles (uss.co.uk/about-us/valuation-and-funding/statement-of-funding-principles).

CPI assumption

Pension increases

(subject to a floor of 0%)

Discount rate (forward rates)

Term dependent rates in line with the difference between the Fixed Interest and Index Linked yield curves less:

1.1% p.a. to 2030, reducing linearly by 0.1% p.a. to a long-term difference of 0.1% p.a. from 2040

CPI assumption plus 0.05%

Fixed interest gilt yield curve plus:

• Pre-retirement: 2.75% p.a.

• Post retirement: 1.00% p.a.

The main demographic assumptions used relates to the mortality assumptions. These assumptions are based on analysis of the scheme’s experience carried out as part of the 2020 actuarial valuation. The mortality assumptions used in these figures are as follows:

Mortality base table

Future improvements to mortality

101% of S2PMA “light” for males and 95% of S3PFA for females

CMI 2019 with a smoothing parameter of 7.5, an initial addition of 0.5% p.a. and a long-term improvement rate of 1.8% pa for males and 1.6% pa for females

NOTES TO THE FINANCIAL STATEMENTS

30 Pension schemes (continued)

Life expectancies

The current life expectancies on retirement at age 65 (in years) are:

Contribution rates

The contribution rates for the future, current and prior years are set out below:

Deficit recovery plan

A deficit recovery plan was put in place as part of the 2020 valuation, which requires payment of 6.2% of salaries over the period 1 April 2022 until 31 March 2024, at which point the rate will increase to 6.3%. The 2023 deficit recovery liability reflects this plan. The liability figures have been produced using the following assumptions:

TO THE FINANCIAL STATEMENTS

31 Access funds and opportunity bursary funds

The grants from the National College for Teaching and Leadership are available solely for students of the University. In all cases the University has acted only as paying agent. The grants and related disbursements are therefore excluded from the Statement of Comprehensive Income and Expenditure.

32 Related party transactions

Governors

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 members of the Board of Governors may have an interest. All transactions involving organisations in which a member of the Board of Governors may have an interest are conducted at arm’s length and in accordance with the University’s Financial Regulations and normal procurement procedures. The University has taken advantage of the exemption under FRS102 not to disclose transactions with other members of its group who qualify as related parties.

A Register of Interests is maintained for members of the University’s Governors and key management personnel. The below amounts relate to income and expenditure transactions with organisations where the University’s Governors and/or key personnel have a material operational role and/or controlling interest:

No Governor has received any remuneration or waived payments from the University or its subsidiaries during the year (2022: None). The total expenses paid to or on behalf of 5 Governors during the year was £1,356 (2022: 6 Governors, £1,141). This represents travel and subsistence expenses and other out of pocket expenses incurred in attending Governor meetings and charity events in their official capacity.

NOTES TO THE FINANCIAL STATEMENTS

32 Related party transactions (continued)

BedsSU

The President of the University’s Students’ Union (‘BedsSU’) also serves as a Trustee of the University and member of the Board of Governors. BedsSU is an independent entity, and the University has no involvement in the running of this organisation.

During the year the University made grant payments to BedsSU of £992,426 (2022: £972,687) and other payments for other services of £10,897 (2022: £5,587). The University received income of £3,612 (2022: £4,246) from BedsSU primarily for cleaning and printing services.

At 31 July 2023 the debtor and creditor balances owed by and to BedsSU were £870 and £3,114 respectively (2022: £1,626 and £1,439 respectively).

NOTES TO THE FINANCIAL STATEMENTS

32 Related party transactions (continued)

Reverend Richard Atkinson OBE

No other transactions were identified which require disclosure under FRS 102, Section 33, 'Related Party Disclosures’.

NOTES TO THE FINANCIAL STATEMENTS

33 US Department of Education Financial Responsibility Supplemental Schedule

In satisfaction of its obligations to facilitate students’ access to US federal financial aid, the University of Bedfordshire is required, by the US Department of Education, to present the following Supplemental Schedule in a prescribed format.

The amounts presented within the schedules have been:

• prepared under the historical cost convention, subject to the revaluation of certain fixed assets;

• prepared using United Kingdom generally accepted accounting practice, in accordance with Financial Reporting Standard 102 (FRS 102) and the Statement of Recommended Practice: Accounting for Further and Higher Education (2019 edition); and

• presented in pounds sterling.

The schedules set out how each amount disclosed has been extracted from the financial statements. As set out above, the accounting policies used in determining the amounts disclosed are not intended to and do not comply with the requirements of accounting principles generally accepted in the United States of America.

33 US Department of Education Financial Responsibility Supplemental Schedule (continued)

NOTES TO THE FINANCIAL STATEMENTS

33 US Department of Education Financial Responsibility Supplemental Schedule (continued)

NOTES TO THE FINANCIAL STATEMENTS

33 US Department of Education Financial Responsibility

Supplemental Schedule (continued)

NOTES TO THE FINANCIAL STATEMENTS