Annual Report and Financial Statements Year ended 31 July 2023
Contents 1 3 5 19 21 23 25 29 31 32 33 35 41 49 53 59 65 67 68 68 69 67 71
Foreword Strategic report Bath Spa Successes Focus On: short courses Academic excellence Key priorities in 2021/22 Financial review Governance report Executive team and governors list Operating structure Legal information Corporate governance statement Sustainability report Remuneration committee report Independent auditor’s report Statement of accounting policies Financial statements Statement of comprehensive income and expenditure Consolidated statement of changes in reserves University statement of changes in reserves Consolidated and Institution Statement of Financial Position Consolidated cash flow statement Notes to the Financial Statements
Glossary AHRC B&NES BBS BME BSU CASE CIC CPI CUC DAC DLHE DfE EAU EIB EU FE FRS FTE GCRF HE HEFCE HEIF HESES IOF
Arts and Humanities Research Council Bath and North East Somerset (Council) Bath Business School Black and Minority Ethnic Bath Spa University Council for Advancement and Support of Education Community Interest Company Consumer Price Index Committee of University Chairs Development Assistance Committee Destination of Leavers from Higher Education Department for Education External Affairs Unit European Investment Bank European Union Further Education Financial Reporting Standard Full Time Equivalent Global Challenges Research Fund Higher Education Higher Education Funding Council for England Higher Education Innovation Fund Higher Education Students Early Statistics Survey Institute of Fundraising
KEF LGPS LLC LLP MBA NSS NS-SEC
Knowledge Exchange Framework Local Government Pension Scheme Limited Liability Company Limited Liability Partnership Master of Business Administration National Student Survey National Statistics Socio-Economic Classification OfS Office for Students OfSTED Office for Standards in Education PGCE Post Graduate Certificate in Education PLC Public Limited Company POLAR Participation of Local Areas PVC Pro-Vice-Chancellor REF Research Excellence Framework RSO Research Support Office SAVP Statement of Asset Valuation Practice SLG Senior Leadership Group SORP Statement of Recommended Practice TPS Teachers’ Pension Scheme UCAS Universities and Colleges Admissions Service UCEA Universities and Colleges Employers Association UKRI United Kingdom Research and Innovation US United States (of America) VAT Value Added Tax WECA West of England Combined Authority
Jonathan Glasspool
Chair of the Board of Governors
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ANNUAL REPORT AND FINANCIAL STATEMENT
Professor Sue Rigby Vice-Chancellor
Foreword from the Chair of the Board of Governors, and the Vice-Chancellor This year has been challenging for the University sector and for Bath Spa University, but in this context we have continued to develop and to rebuild after the Covid-19 pandemic. Notwithstanding high inflation and student fees - the later of which has been fixed since 2017 - we have returned a surplus this year. This has been possible because of tight financial controls internally and a growth business model that has seen us build student numbers for undergraduates in Bath and London, international students in Bath and through franchise partnerships around England and beyond. This year we have been delighted by our best ever staff survey results, with 83% of staff indicating that they would recommend Bath Spa University to a friend as a good place to work. During the year we have been able to give junior staff a one-off award to help with the cost of living crisis. Our better financial position has enabled us to review our lower pay grades to provide financial support for the lowest paid members of staff. Our working patterns are now stabilising post-pandemic, with most staff using a blended model which sees them work on campus around 40% of the time. Ongoing industrial action has been an issue for all universities, but we were able to graduate all of our students with secure and robust final grades. Students have appreciated a return to on-campus learning, which is now the primary mode of delivery. However, a small number require ongoing remote support which means teaching staff are working hard to accommodate these individual needs in addition to managing existing workloads. Concerns about the impact of inflation on students have been intense. We have responded to this with the provision of heavily subsidised meals on campus and through food lockers in all of our residential sites. We have increased our hardship funds and made access to these easier. We are reassured that over 90% of our students complete their studies, which is well above benchmark for the sector. However, we continue to review our support for vulnerable students whose pandemic experience was poor. We continue to make ground in the key University metrics, adding a Teaching Excellence Framework Award (TEF) Silver to our best ever Research Excellence Framework (REF) return. Our National Student Survey (NSS) results were an improvement on last year, though we are cautious about the validity of this outcome given the fundamental redesign of the survey.
One consistent issue for our students has been with IT provision. This is a long-term investment area for us, and in the last year we have introduced a student app, become the UK’s third Adobe Creative Campus, and moved to Microsoft 365, in addition to introducing a new finance system. This work will continue over the next three years and will bring us up to spec for a modern university. We continue to invest in our physical estate, in the context of retaining our 1st Class People and Planet University League award. We have upgraded our music facilities and increased space provision for fine art. We are developing plans for an expanded estate at Locksbrook Road. This work, which will see us co-locate with the Fashion Museum Collection, forms the backbone for much deeper engagement with Bath as a council and as a City. It is also the springboard for our new National Centre for Fashion and Sustainability, which will provide links between the collection, our teaching and research, and businesses locally and nationally. We are inherently collaborative as a university, and this year we have deepened our partnerships across a range of areas. We have set up a jointly-operated University Centre with New City College in London, which will colocate Bath Spa University London with a growing, shared provision for level four and above. We have developed our links with business through leading the Bath Social Impact Network, FWD (a next generation skills, training, research and innovation programme), and the provision of Skills Bootcamps which include courses funded by regional and national government and by private philanthropy. Internationally we have been prominent in our support for universities in Ukraine, building on long-term and successful research partnerships with initiatives such as our twinning with the International University of Economics and Humanities (IUEH) in Ukraine. We have seen our Global Academy of Liberal Arts (GALA) research network continue to grow and develop, and in particular we welcome the deepening of our relationship with the University of Wittwatersrand, arguably the finest university in Africa. These are demanding times for English universities, with rapidly increasing financial pressures, a student body that faces heightened external stressors, and staff who are acutely conscious of the demands of their jobs. The regulatory burden on universities is increasing rapidly and we look forward to a greater maturity of oversight with time. Unless fees increase over the medium term, the sector will have to find even more novel ways to make ends meet and keep the quality of delivery high. In this context, we are doing well by the key metrics of our bottom line, REF, TEF, and staff surveys. But we are also aware that the long-term pattern of higher education provision is increasingly unstable and are unafraid to innovate in this context.
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STRATEGIC REPORT
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ANNUAL REPORT AND FINANCIAL STATEMENT
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UNIVERSITY OF THE YEAR FOR S
Bath Spa University has been named as the University of the Year for Social Inclusion by The Sunday Times Good University Guide 2024. The top place was awarded to Bath Spa in recognition of its commitment to empowering students from all backgrounds with the opportunity to study and thrive in higher education, helping people develop skills today that will set them apart in the future. 5
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SOCIAL INCLUSION
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Having a ball with Bath City FC
In August this year, Bath Spa University announced a historic partnership with Bath City FC by becoming official sponsors of the club’s home, Twerton Park. Bath Spa University also became sponsors of the Bath City FC Women’s team for the 2023/24 season. This double sponsorship signifies the start of an ambitious partnership between Bath Spa University and Bath City Football Club which includes work and volunteering opportunities for students and University staff, community engagement programmes, curriculum development and student experience initiatives.
New podcast encourages the Bath Spa community to ‘Be Open’ In 2023, Meg Robertson, Bath Spa Equalities Officer, and Neetu Karwal, Vice President Welfare and Community in our Students’ Union, joined forces to promote equality and diversity with their podcast, Be Open. In the podcast, Meg and Neetu explore their experiences of mental health, race, gender, sexuality, disability and all things equality and diversity. By sharing their experiences, Meg and Neetu hope to help others find a sense of familiarity and community of like minded people, or teach people something along the way. The podcast is available on Spotify. 7
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Bath Spa University makes Bristol Pride Day debut “The day was filled with so much joy - from walking in the march to speaking to people at the Downs, the rain definitely didn’t stop us. Pride allows us to celebrate queer joy, creativity and community, but is also vital to remember that Pride is still a protest and we are very much committed to continuing our support for the LGBTQIA+ community.” Meg
We made our Bristol Pride Day debut on Saturday 8 July 2023 as a group of colleagues, students and alumni joined thousands of others in the annual Parade March. The Bristol celebrations have become known as one of the largest Pride events in the whole of the UK and last year the festival welcomed 40,000 people to the city on Pride Day alone. This year, Bath Spa had a pop-up stand at the festival where colleagues gave out Pridethemed temporary tattoos and pin badges to complement its sponsorship of the Queer Vision Film Festival element of this year’s Bristol Pride.
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Celebrating three years of Care Dogs support As part of Mental Health Awareness Week 2023, we celebrated our very special fourlegged friends, in recognition of the combined 300 hours of service that the Care Dogs have given to support the mental health and wellbeing of thousands of students over the last three years. Launched in partnership with the charity Canine Concern in early 2020, the pilot pet therapy scheme for students has developed at a pace due to its popularity. The dogs have been the star attractions at petting sessions and scheduled dog walks with students across the University’s Bath-based campuses. They even have their very own “Care Dog of the Year” category in the prestigious VC Awards, won jointly this year by Georgie and Sid.
Further funding secured for five new Governmentbacked short courses @neverthereband
Since September 2021, Bath Spa University has taught over 500 students the sector-specific skills needed to start their dream careers through a Skills Bootcamp. Over half of these students have secured new roles in tech since completing their short course. Following this success, Bath Spa University secured funding for five new Skills Bootcamps that were rolled out in January 2023, in partnership with the West of England Combined Authority. These new courses target two of the biggest skills gaps identified within the West of England: environmental data science and digital skills within the education sector.
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Georgie Bath Social Impact Network launched by Bath Spa University and 3SG Launched as a partnership between Bath Spa University and 3SG, Bath Social Impact Network is the first of its kind in Bath and North East Somerset (B&NES), aimed at bringing together groups and individuals specifically from social enterprises with a shared purpose of improving and growing the social economy in B&NES. Professor Andy Salmon, Pro-Vice Chancellor External said: “We aim to bring together those working for good in the region because we are stronger as one. Contemporary challenges are complex, and opportunities will only be unlocked by collaboration across traditional borders. Our message is clear - we’re here for you, in mutually supportive environments, journeying together, one idea at a time. “Importantly, this network is a first for Bath - there are networks for the third sector and charities, but not one specifically for social enterprises. Working with 3SG, we are committed to addressing this gap and we’re excited about the positive impact that we know will come from bringing together great minds in this special city.”
Forest of Imagination 10th anniversary Professor Sue Rigby officially opened the 10th Anniversary event of the Forest of Imagination at the Assembly Rooms in Bath. The Forest of Imagination was masterminded a decade ago by House of Imagination, Grant Associates, and Feilden Clegg Bradley Studios in partnership with Bath Spa University. Over the last 10 years, more than 60,000 visitors have attended and over 100,000 interacted with the contemporary arts event online. The month-long anniversary celebration event was open to the public from 14 June to 14 July 2023 and invited adults and school children to ‘assemble in the forest’ as its theme, and connect with nature in a host of imaginative ways.
Ten years of TAPS June 2023 marked 10 years since the Teacher Assessment in Primary Science (TAPS) project, based at Bath Spa University, was set up to provide support, resources and learning materials to aid the nation’s teaching and assessment of science in primary and early years settings. A 10-year anniversary event was held at Bath Spa’s Newton Park campus on Tuesday 20 June 2023 to mark the milestone. Sixty attendees including university colleagues, primary school teachers, and those from science, technology, engineering, and mathematics (STEM) organisations enjoyed an afternoon of celebrations.
Since its launch, TAPS has worked with 93 project schools and delivered face-to-face training to approximately 9,700 teachers. The scheme’s informative videos have been viewed more than 20,200 times and TAPS resources, which are available free online, have been downloaded 232,000 times in 123 countries around the world. TAPS is now an accepted model of best practice in teacher assessment and has aided thousands of children’s learning. BATH SPA UNIVERSITY 10
BATH SPA SUCCESSES
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Bath Spa University becomes UK’s third Adobe Creative Campus Bath Spa University became the UK’s third Adobe Creative Campus, giving students free access to the entire suite of Adobe Creative Cloud software to boost their digital capability and better prepare them for the modern workplace. The partnership with Adobe will benefit staff as well as students, as both can now access industry-leading graphic design, video editing, web development and photography software including the popular Adobe InDesign, Photoshop, Premiere Pro and Illustrator, together with access to Adobe Stock’s millions of royalty-free stock images. Dr Rebecca Schaaf, Pro-Vice-Chancellor for Student Experience said: “We recognise the value of teaching creative and persuasive digital communication skills, and through our work with Adobe we will actively advance these skills throughout our curricula, to help our students succeed in the classroom and gain an edge in the modern, competitive workplace. The opportunity that this partnership provides to future proof our students’ skills is evident even in these early days.”
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Double win at Creative Bath Awards Bath Spa was proudly presented with not one but two Creative Bath Awards 2023 trophies designed by its very own final year BA (Hons) Product and Furniture Design student, Bo Neville. The University won the award for ‘Creativity for Good’ in special recognition of its short courses designed to help those looking to reskill into a new career, start their own business or explore an interest. Academic lead at The Studio and Professor of Cultural and Creative Industries, Kate Pullinger, also took home the award for Inspirational Person at the ceremony.
Honorary degrees awarded to nine outstanding individuals In 2023, Bath Spa University awarded honorary degrees to nine remarkable people. The degrees were awarded in recognition of their excellence and the outstanding contributions they have made in their academic fields, professions and society. They were: •
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Gopalkrishna Gandhi (pictured) - Grandson of Indian independence leader Mahatma Gandhi and former administrator and diplomat Adam Rutherford - Geneticist, author and broadcaster Andrew Grant - Landscape architect and founder of Grant Associates Carl Anka - Bath Spa University graduate, journalist, broadcaster and author Christopher Crowther - Chief Information Officer at Spectra Analytics Kate Morton - CEO of mental health charity Bath Mind Kathy Hinde - Bath Spa University graduate and audiovisual artist Russell Hobby – Teach First CEO Veronica Ryan OBE - Bath Academy of Art graduate and Turner Prize winner 13
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Bath Spa is one of the greenest universities in the UK We’ve been named as the 18th greenest university in the UK, and third in the South West, in the latest People and Planet University League Table.
‘I Vote for Peace’ project strengthens twinning partnership
This year’s impressive ranking has earned Bath Spa a first-class degree-style classification in the league of a total 153 institutions, climbing 13 places since 2021. The University was also awarded a special rosette for meeting its carbon emission reduction targets, at a time when the majority of the UK higher education sector has failed to do so, according to the findings. Among its highest results, Bath Spa scored 100 per cent for its environmental auditing and management systems, 85 per cent for carbon management, and 78 per cent for carbon reduction.
As part of a twinning partnership launched in the summer of 2022, Bath Spa University and the International University of Economics and Humanities (IUEH) in Ukraine announced the start of a joint project in March 2023 called, ‘I Vote for Peace’: Collaboration and Compassion in a Time of War. Funding awarded by the UK–Ukraine R&I Twinning Grants Scheme was used to facilitate the initiative which is underpinned by the ethos of education, solidarity, and compassion. Drawing on shared academic interests in education, humanities, and business, throughout the project Bath Spa University aims to: •
Strengthen IUEH’s research and innovation capacity by devising a strategy and action plan.
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Support collaborative research in education and humanities.
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Offer research-skills training for IUEH faculty.
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Develop a leadership training programme for IUEH faculty.
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Enhance the public-facing work of the Museum of Peace in improving wellbeing among children and young people.
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Bath Academy of Art alumna Veronica Ryan OBE wins Turner Prize
Bath Academy of Art-trained sculptor Veronica Ryan OBE was named as the winner of the Turner Prize in December 2022. Having studied for a BA in Fine Art at the Corsham Court campus-based Bath Academy of Art (now Bath Spa University’s Bath School of Art, Film and Media, at Locksbrook Campus) from 1975-1978, Veronica went on to establish an internationally revered exhibition profile, winning numerous awards across the globe. High praise for her work came from the Turner Prize judging panel for “the personal and poetic way she extends the language of sculpture” and the “noticeable shift in her use of space, colour and scale both in gallery and civic spaces”.
Bath Spa strikes gold with Social Enterprise Gold Mark Bath Spa University was awarded the Social Enterprise Gold Mark in recognition of its outstanding work as a social enterprise, making it the first university in the south west to achieve this standard, and fifth in the whole of the UK. The University achieved this accolade in recognition of its commitment to putting people, communities and the environment at the heart of its work. Bath Spa demonstrated Outstanding Practice across areas which are central to social enterprise excellence including governance, stakeholder engagement, business ethics, financial transparency and social impact.
Image © Brian Roberts
The University received particular praise for its emphasis on providing employability opportunities for students, as well as linking students to the needs and opportunities within the local economy. Another highlight was how the University creates additional social and economic impact in the city of Bath with examples including running fully funded short courses for local residents and providing an incubator space for start-up businesses. 15
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Celebrating more than 740 teaching graduates from 1948-1981
Bath Spa University, as the largest provider of teacher education in the South West, awarded Honorary BA Education Degrees to more than 740 of its teaching alumni who previously studied for a Certificate in Education at one of its predecessor colleges between 1948 and 1981. Three days of ceremonies took place across the University’s Bath and Corsham-based campuses on 9, 10 and 11 August to mark the conferring of the honorary degrees, and to celebrate the achievements of those who completed their courses as far back as the same year the National Health Service was founded.
Graduate creates world’s first patented interactive prayer mat Former teacher and Bath Spa University MA Design (Textiles) graduate Kamal Ali has used his professional creativity to solve an age-old problem, by inventing the world’s first patented interactive prayer mat. Kamal’s motivation to create the mat, called My Salah Mat®, was first brought to life by his son, Hamza, who, as an infant, was struggling to understand where to place his hands, knees,
forehead and nose when praying using a traditional prayer mat to perform Salah – a daily prayer practised by Muslims, five times a day. With the help of the Welsh Government, Kamal is now looking to branch out into new markets including Australia and India.
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Graduate lands a lead role in ITV show
Bath Spa hosts national innovation conference Bath Spa University hosted the annual Knowledge Transfer Partnership (KTP) Associates Conference in September 2023, welcoming around 150 individuals working in innovation in the UK to Newton Park campus. Launched in 1975, a KTP is a funded scheme run by Innovate UK to help universities and businesses to innovate and grow. Each KTP is a three-way partnership between a business, an academic institution and an undergraduate or postgraduate associate. This year’s conference was a culmination of the advancements made during almost 50 years of KTPs, and the two-day event invited attendees to contemplate the topic of ‘Telling Your Story’. Those in attendance had a chance to work with colleagues in the University’s state of the art TV studios to film short pitches and worked with colleagues in the publishing department to tell their story via social media. The event further strengthened Bath Spa University’s position as a creative and entrepreneurial institution in the region.
BA (Hons) Performing Arts (now BA (Hons) Acting) graduate Adeyinka Akinrinade starred as “Alesha” in “Riches”, a new six-part family drama which aired on ITV during summer 2023. Adeyinka has gone from being a budding performer studying at Bath Spa, to a star who has featured in shows such as Top Boy, Grantchester, A Discovery of Witches and now, Riches. Adeyinka said: “I learnt so much whilst studying at Bath Spa, but the biggest thing was how varied the course was. As well as developing and learning about ourselves as actors, we also got to learn about other roles in the industry. It was brilliant to have a go at behind the scenes roles, such as producing, set design or camera operating. It was so insightful because it was my degree that made me realise I also wanted to go into Creative Producing.” 17
ANNUAL REPORT AND FINANCIAL STATEMENT
New college and university partnership to boost opportunities for learners in London
Success at Bath Spa
Bath Spa University London and New City College’s existing partnership has grown to develop a ground-breaking new University Centre based in the vibrant and central location of Hackney in London. The New City College University Centre will enable thousands of learners from a range of backgrounds and ages to change their lives and life chances, while delivering on both London’s and the nation’s skills agendas. The jointly-operated University Centre will offer a blend of career enhancing degree programmes, short courses, degree apprenticeships, business networks, and continuing professional development programmes with accompanying accreditations. Vice-Chancellor Professor Sue Rigby said: “This innovative project will take our existing partnership with New City College to the next level. It will provide opportunities for learners based in Bath and London to collaborate, focusing on the personal growth and aspirations of learners, building their confidence and creating a student experience that is inclusive, challenging and enabling.”
Locksbrook wins three architecture excellence awards
Bath Spa University’s Locksbrook Campus – home to the Bath School of Art, Film and Media, and Bath School of Design – scored a hat-trick, taking home the ‘Overall Winner’, ‘Education Winner’ and ‘Sustainability Winner’ accolades at the prestigious Schüco Excellence Awards 2023. Winning three Schüco Excellence Awards serves as fitting recognition of the collaboration between Grimshaw Architects and specialist façade contractor, Structura, in transforming the building into an exceptional example of a modern educational establishment – one that inspires the delivery and learning of degrees such as BA (Hons) Architecture and BA (Hons) Interior Design.
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Short courses
FOCUS ON There are four types of short course at the university:
1. Government funded Skills Bootcamps 2. Corporate funded courses for the general population focused on inclusion 3. Courses developed in collaboration with Bath Spa University academics or partner organisations 4. Bespoke training for organisations Skills Bootcamps In September 2021, we launched our first Skills Bootcamp in Digital Marketing. Since then, we have run short courses in 15 different subjects and helped nearly 1000 learners improve their digital skills and take the next step on their career journey. Skills Bootcamps are fully funded courses of up to 16 weeks, giving adult learners the opportunity to retrain, pursue a career in a new field or start their own business. They have been developed by the Government as part of the Lifetime Skills Guarantee and Plan for Jobs, in partnership with employers, providers, and local authorities. According to a recent study from ANDDigital, only 14% of the current UK workforce have the required digital skills to fill current vacancies. Our Skills Bootcamps have been designed to address these digital skills gaps. Securing further funding At the launch of the Skills Bootcamps, we ran courses in digital marketing, web development and creative computing. Since then, we have secured further funding from the West of England Combined Authority and targeted further skills gaps identified within the West of England and across the United Kingdom. We have successfully run courses in data science, data analysis, machine learning, digital skills for education staff, organisational sustainability and cyber security. Following the success of the previous courses, we have secured funding for new Skills Bootcamps in Agile Project Management, Data Analytics and Machine Learning, UX/UI Design and Digital Marketing, taking place in September and October of 2023 and January 2024. We are also running a Skills Bootcamp in Adobe and Microsoft Teams for Bath Spa University to upskill staff members and help with the recent transition from Google to Microsoft. Reskilling the local community In addition to providing learners with sector-specific skills and certifications, our short courses equip learners with the confidence and skills needed to excel in interviews, apply for jobs and set up their own business in their chosen sector.
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For example, 85% of Skills Bootcamp learners have secured an interview in their new field following their course, 25% of those have already secured work in their chosen sector, and an additional 30% have secured progression within their current employment. Business involvement Over the past two years we have worked with local and national businesses including Microsoft, Adobe, techSPARK, Unite Students, The Data Place, Future Leap, Gel Studios, Naturally Social and TA Education to provide learners with lectures from industry experts, job interviews, certifications and in-person workshops to further improve their sector knowledge. We are currently developing a relationship with Apple to become the region’s only Apple Accredited Training Centre, and strengthening our partnership with Royal United Hospital Bath. Click Start In March 2023, the Institute of Coding, a national consortium of industry, educators and outreach providers, launched their new nationwide Click Start training programme. Click Start is funded by Nominet, a company that protects UK Internet infrastructure and uses its funds to support projects that promote digital inclusion. The new programme helps to tackle the UK’s digital skills gap by offering skills and training to more than 26,500 learners across the country, who may not have previously had opportunities. Click Start by Bath Spa is a £1.3M creative digital programme designed to help learners pursue a new career by developing their skills in digital marketing, UI/UX design and web development. We are working in collaboration with Catch22 on Click Start. Catch22 is a not-for-profit business with a social mission. They deliver high quality tailored employability programmes that equip hard to reach individuals with the support they need for a path to sustainable employment. Developing bespoke short courses As demand for digital skills grows, we have begun to develop a suite of self-funded short courses in collaboration with Bath Spa University academics and local businesses. In January 2023, we ran a two-day course in Immersive Audio for companies in Bath and Bristol interested in how to edit and mix immersive ambisonic audio, and we will shortly be launching a series of creative writing short courses. We have also worked with fashion consultancy Flourish CSR to deliver a two-day course in ESG Essentials for Fashion Professionals, and we delivered a training session to 70 of Royal United Hospital Bath’s most senior leaders on change management.
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ACADEMIC EXCELLENCE
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KEY PRIORITIES IN 2022/23 Led by the Vice-Chancellor and Provost, the Vice Provost and the Heads of School, the seven academic Schools take forward institutional priorities, in collaboration with Pro Vice-Chancellors. Bath Spa University London (BSUL) effectively operates as the eighth academic school, delivering Business Management and Health and Social Care Management courses in Hackney. The key academic excellence priorities and outcomes for 2022-23 include:
Continuing to develop/refresh our course portfolio New undergraduate degrees have been developed for September 2023, with a focus on professional creativity and building confidence through practice-based learning. These include Marketing, Sports Management, Biomedical Science, Sports and Exercise Nutrition, and a redesigned degree in Education. A wide range of new programmes is planned for 2024 including Forensic Science, Sports Media Production, Business and Management and Economics, Economics and Law, and Music (Performance). Bath Spa University London have expanded their portfolio to include pathways in Fashion, International Business and Marketing. At postgraduate level, we launched two new Master’s level law courses (LLM Law Foundations and LLM Law and Business) in 2022/23 and are now opening up to recruitment for 2023/24 for the professionally accredited Master’s course in Special Learning Difficulties/Dyslexia, and a redesigned/ refreshed professional Doctorate in Education. The first cohort of students graduated from our new LLB (Hons) Law degree in 2023. The intake of Law students has quadrupled over the last three years. Law received positive scores of over 90% in the 2023 National Student Survey for ‘Teaching on my Course’, ‘Assessment and Feedback’, ‘Learning Opportunities’, ‘Academic Support’ and ‘Learning Resources’. The recently launched BA (Hons) Architecture recruited strongly in 2022 and is receiving excellent student feedback from the first cohort. We are now progressing accreditation with the Architects Registration Board (ARB) and validation through the Royal Institute of British Architects (RIBA). As part of Bath Spa’s successful re-accreditation as an Initial Teacher Training (ITT) provider, the School of Education is engaging in new programme development for its 2024 QTSbearing teacher education provision. Bath Spa’s early success in securing Initial Teacher Training re-accreditation has reinforced our reputation for excellence in teacher education. This has led to approaches from universities who have been unable to secure accreditation. We have agreed, subject to contract, to partner with two universities as their ITT accredited provider. 23
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Diversifying income streams/supporting financial stability Bath Business School is continuing to work effectively with Bath Spa’s three biggest partners, which have approx. 6000 students on Business and Management undergraduate and postgraduate courses. It also attracted over 240 international students to its Bath based courses in the February intake. The Teach First 2022/23 contract is now in operation and the School of Education is teaching a national cohort of 650+ students, who are all working in schools across England. Teach First was ranked ‘Outstanding’ by Ofsted this year, and their report highlighted the integrated nature of working with Bath Spa, as good practice in supporting trainee teachers. The School of Art, Film and Media is leading on a regional road mapping exercise for B&NES, as part of the West of England Visual Arts Alliance £1.2M ACE funding project.
Improving the student learning experience/quality of teaching/external reputation We have been named as the University of the Year for Social Inclusion by The Sunday Times Good University Guide 2024. Bath Spa University has also climbed a further three places in the main Good University League Table. This is the fourth year in a row that the University has improved overall rankings. This is testament to our commitment not only to adopt inclusive recruitment practices, but also to offer learners from diverse backgrounds a high-quality student experience, building their confidence and empowering them to complete their studies and to secure good degrees. Bath Spa has been awarded a Silver rating in the Teaching Excellence Framework (TEF) 2023. Silver is awarded to institutions in which: “The student experience and outcomes are typically very high quality, and there may be some outstanding features”. The format of the NSS changed markedly this year which means benchmarking against previous surveys is not possible. That said, the results demonstrate that Bath Spa University continues to provide students with an excellent student experience. For the third year in a row, Bath Spa University is above the sector average for Assessment and Feedback and now ranks within the top 40 UK Universities for this section. The University was named as First Class in the People & Planet’s University League and is a double finalist in the UK Social Enterprise of the Year Awards. We also rank 11 in the Civitas league table of universities with the highest number of care experienced students.
Supporting the ongoing development of academic practice and having highly qualified teaching staff is key to academic excellence. In 2022/23, 58 staff were awarded AdvanceHE Fellowship status through either the developmental course for new lecturers or the recognition scheme for established academics delivered by the School of Education. At Bath Spa, 66% of academic staff have a recognised HE teaching qualification, which is 20% higher than the sector’s average. Bath Spa’s commitment to supporting academic staff development is also evidenced in recent investments in the Learning Innovation and Skills unit, which also supports the development of new courses.
Awards
Employability/Knowledge Exchange/ Impact Following the successful 2021 REF results, Schools have focused on maximising the impact of their research within the curriculum, harnessing curiosity and professional creativity, and developing confidence by supporting knowledge exchange and social impact. Examples include: •
Bath Business School established a partnership with Stone King and the Citizens Advice Bureau to provide legal advice to the public.
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The School of Art, Film and Media (SAFM) formalised a professional spin-out production house ‘Iris TV’ and has delivered more than ten externally-funded projects for the region this year.
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SAFM also delivered a suite of fully funded summer schools for the region’s secondary schools (11), promoting creativity to youngsters.
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Sparkfest 2023 provided the opportunity for the community to experience over 100 live performances and creative work over a six-week period, from students, alumni, partners and our collaborators across the School of Music and Performing Arts. This is in addition to bands touring the country, the Creative Music Technology showcase, the many productions staged, managed and designed by Theatre Festival and Event Production students, operas, concerts and site-specific work, which continues to add significantly to the artistic life of the region and beyond.
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Many awards have been won and achievements are evident across the Schools. These include: •
Fine Art alumna Veronica Ryan won the prestigious Turner Prize.
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Locksbrook Campus won three top architecture excellence awards at this year’s prestigious Schüco Excellence Awards.
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Senior Lecturer Sophie Francis won a BAFTA for her screenplay ‘In my Skin’ for the BBC (2022)
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Final year Product and Furniture Design student, Bo Neville, designed the trophies that were presented to winners of the ‘Creative Bath Awards 2023’.
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Professor Pete Etchells (Sciences) co-developed the Video Games Research Framework, which was launched by the government on 30 May – it provides standards to advance scientific research into games.
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In the School of Art, Film and Media, Media Communications students secured graduate jobs at companies such as Torchbox and the Hanson Wade Group, whilst Fine Art students Milly Aburrow won the Kenneth Armitage Sculpture Prize 2023, and Jack Roberts won the Peter Kinley Painting Prize 2023. This year’s Porthleven Prize Winner was Jessica Angwin.
•
A large number of students in the School of Design have won prizes and grants, including at Graduate Fashion Week (GFW23), New Designers 2023 (Creative Conscience Ethical Designers’ award, Future Icons award), Southwest Design + Digital Awards 2023, Institute of Positive Fashion Forum 2023, Graduate Fashion Foundation, The Framework Knitters Company, and were finalists for a Trailblazer award. Three Design students also won paid placement opportunities with Interaction.
•
Bath Spa University has been named as the University of the Year for Social Inclusion by The Sunday Times Good University Guide 2024 (see page 5).
Bath Spa University London celebrated its second graduating cohort of students in November 2022.
BATH SPA UNIVERSITY 24
FINANCIAL REVIEW University financial results
In the year under review the University performed well financially, making a surplus of £3.2m including £2.1m gain on investments, giving an underlying position of a £1.1m surplus. This compares to a deficit (of £4.5m) the previous year before the £27m gain on sale of Green Park House. The improvement is driven by the growth of Bath Spa University London and educational partnerships. The University generated £13.7m in cash from operating activities. This was £5m up from the £8.7m cash generated the previous year due to the 21/22 surplus being dampened by the redemption fee on repaying the Santander loan linked to the sale of Green Park House and the improvement in the bottom line performance.
Income
The University increased its gross income by £47.1m due to: •
£2.3m increase in tuition fees from students at our expanding campus at New City College, Hackney.
•
£6.7m increase in tuition fees from international students studying at our Bath campuses both undergraduate and postgraduate.
•
£40.9m from tuition fees due to the growth in the recruitment with our three largest educational partners (note that after franchise fees this is an £8.1m increase to net tuition fees).
•
£1.3m increase in OfS/Research England/Research Council Grants - £0.8m due to the Teaching Grant and £0.8m due to an increase in QR funding following the successful REF performance offset by a £0.4m reduction in the Covid-19 related funding and other grants.
•
£0.6m improvement in interest earned, taking advantage of higher interest rates on our higher short term cash balances, created by being the feereceiving institution for the majority of our educational partnerships which have expanded.
•
£0.6m increase in income from our short courses unit and other educational related contracts.
Offset by: •
£2.4m decrease in other income largely due to not having Green Park House in our portfolio of accommodation and using nomination agreements instead to provide that accommodation.
25
ANNUAL REPORT AND FINANCIAL STATEMENT
Expenditure
Staff costs before restructuring increased £2.0m (3.8%) in 22/23 to £54.1m. The £2.7m restructuring which took place in 21/22 has led to a switch in the proportion of academic to professional services staff and an overall increase in staff. Average staff FTE numbers increased by 43 during the year to 966 (923 in 21/22) with a increase of 61 professional services staff (largely due to the need to increase the business support functions affected by the growth in partner students – Registry, IT Services, Finance) and offset by a decrease in 18 FTE academic staff following the VS scheme in 21/22. The proportion of academic staff has decreased from 53% of the total staff resource in 21/22 to 49% in 22/23. Pension costs (LGPS and TPS) were £9m being £2.1m less than £11.1m in 21/22. This was partly due to the change in mix in staff, since the TPS employer contribution was 23.7% compared to 15.5% for LGPS. And partly due to the increasing interest rate giving rise to a lower LGPS service cost needing to be recognised in the income and expenditure. Operating expenditure increased year-on-year by £43.6m to £82.9m, with £32.8m of the increase being franchise fees to educational partners. Before franchise fees operating expenditure was £35.8m in 22/23 an increase of £10.8m due to: •
£4.2m related to student acquisition costs – marketing and recruitment and supporting students with bursaries and scholarships.
•
£2.5m related to infrastructure costs – the physical and digital estate including library for our four campuses at Newton Park, Locksbrook Campus, Sion Hill (all in Bath) and Hackney in London with some of the increase due to post-Covid lag.
•
£1.9m due to income generating activity and other operational costs.
•
£1.2m due to a higher bad debt provision due to the large increase in tuition fees year-on-year.
Balance sheet
The University’s balance sheet has improved by £22.7m with Total Reserves moving from £120.1m to £142.8m. The actuarial gain on the pension fund accounts for £19.5m of this movement (with bond prices significantly improving again since last year improving the valuation of the liabilities of the fund due to the discount rate increase from 3.5% to 5%) and the income and expenditure surplus of £3.2m generated in the year accounts for the balance of the movement in reserves. It should be noted that the decrease in the LGPS deficit is for actuarial accounting purposes and is not currently expected to impact on employer contributions. The terms of the LGPS scheme dictate that contribution rates can only be reevaluated between triennial valuations if there is a significant change to assets not to liabilities. The £40m net proceeds from the sale of Green Park House sale were placed under management with HSBC in February 2022 into a non-fossil fuel portfolio. The portfolio has gained in value, with the market valuation of equities, bonds and cash held at that time valued at £42.2m. Gearing remains low with the ratio of total debt to net assets being 11.4% as at 31st July 2023 (15% as at July 31st 2022 and 87% as at 31st July 2021).
Liquidity
Cash balances remain very strong with cash and cash equivalents totalling £35.1m up £4m from £31.1m in 21/22. Capex has increased year-on-year from £3m to £3.8m (£4.2m including WIP) and this is expected to increase significantly over the five year forecast. The University’s policy on treasury management is to place surplus cash with a number of highly rated counterparty banks. During the year, interest rates on money market deposits moved strongly meaning interest earned on cash balances went up by £0.6m in the year to £0.7m. It is the University’s policy to abide by terms of payment agreed with suppliers. Unless special terms apply, payment is made within 30 days of receipt of a valid invoice or after acceptance of the goods or services, whichever is the later. The University has a minimum liquidity threshold of 45 days which balances necessary cash with investment requirements. Cash holdings during the year were sound, and at the year-end the University held an equivalent of 145 days, up from 142 days at 31 July 2022 (when excluding franchise fees from operating expenditure).
BATH SPA UNIVERSITY 26
Working Capital
Working capital has seen a big change year-on-year with the impact of our educational partners and our Bath Spa University London campus having three intakes per year – September/October, January/February and June, one month before the year-end. For our educational partnerships, Bath Spa University is the fee-receiving institution, collecting the whole of the £9.25k undergraduate fee but passing on a proportion of this to the educational partner depending on the revenue share defined in the contract terms. As a result, both receivables and payables have seen a big increase year-on-year as can be seen below: MEMO ITEM
£m 22/23
21/22
% change
Trade and other receivables: Trade debtors Other receivables Subtotal
47.4 3.3 50.7
31.7 3.9 35.6
50% -15% 42%
Creditors <1yr: Accruals and deferred income Creditors due <1y Subtotal creditors <1yr
(57.6)) (7.8)) (65.4)
(37.5)) (8.4)) (45.9)
54% -7% 42%
Net receivables/payables
(14.7)
(10.3)
43%
Working capital:
Value for money The University aims to ensure a high standard of teaching and research by managing its resources effectively and efficiently. The University aims to re-invest back into the business as much of its income as it can to ensure that its infrastructure is supporting the delivery of the highest-quality teaching and research possible. Value for money is embedded in everything the University does from teaching to research, to investments and procurement processes. This approach helps to ensure that we deliver value for money to our students, the taxpayer and other stakeholders. The Board of Governors is responsible for delivering value for money from public funds. It keeps under review its arrangements for managing all the resources under its control, taking into account guidance on good practice issued from time to time by the Office for Students (OfS), the National Audit Office, the Public Accounts Committee or other relevant bodies.
27
ANNUAL REPORT AND FINANCIAL STATEMENT
The investment portfolio held by Bath Spa University is globally diversified and aims to achieve a higher environmental, social and governance (ESG) score and lower carbon intensity than a comparative market portfolio. The portfolio is aligned with the University’s Responsible Investment and excludes investing in extractor fossil fuel companies. As at end July 2023 HSBC investments had a market value of £42.2m. A notional gain of £2.2m since inception and £2.1m since last balance sheet date. Breakdown of portfolio Moderate Growth Dynamic
Risk time frame
value as at 31 July 2023
0.5 yr 5-10 yr 10 yr +
10.4 21.1 10.7 42.2
% of fixed income products held 40.9% 26.3% 12.0% 11.1
Return since inception 3.9% 5.6% 7.3% 5.6%
The benchmarking indicated by the investment strategy and mandate are: •
Bonds - Barclays Global Aggregate Fixed Income Total Return (Hedged) GBP
•
Equities – MSCI All Country World Total Return Net (Unhedged) GBP
The portfolio performed well when compared with world equity and bond indices, with overall performance across the three funds outperforming the two benchmarks. Portfolio up 2.78% net of fees since inception against 2.16% MSCI and -2.06% Barclays Global. Our portfolio had a 10.3% ESG uplift and 68.0% carbon intensity reduction against the market reference portfolio* (*June 2023 report).
Risk environment
The University operates an established approach to risk management underpinned by a framework, a policy, and associated guidance. The University Risk Register is updated regularly, has assigned University Leadership Team owners and applies its risk appetite through a comprehensive scoring matrix. Risks are formally reviewed throughout the year by the Senior Leadership Group and by the Audit Committee, which provides structured discussions and challenge on focused areas. The Board of Governors also regularly reviews the University Risk Register.
The key risks and uncertainties facing the University are summarised below and are reflected in fuller detail in the University Risk Register.
1. Political and economic uncertainty
The external environment continues to present challenges to the higher education sector. The principal issue is the currently very high rate of inflation while the undergraduate tuition fee remains fixed at £9,250. There have also been adverse impacts arising from supply chain issues, difficulties in recruiting specialist skills and a significant reduction in recruitment from EU countries arising from the increase in their tuition fee to the international rate. The University’s debt is on a fixed interest rate, so the rise in market interest rates could be of benefit in respect of interest earned on cash balances.
2. Student recruitment, experience and progression:
The ability to recruit and retain planned student numbers in an increasingly competitive market is fundamental to the University’s success. The University’s ability to provide an excellent student experience and enable students to succeed is central to its reputation and the risks of failure in these areas is that the University becomes less attractive in the student recruitment marketplace. The University is managing these risks by ensuring the continued attractiveness of its portfolio through regular planning and review, including extension into new areas; by continuing and evolving the marketing approach of recent years; by the introduction of a personalised applicant approach to utilise the University’s strengths and provide distinctiveness in the market; and through embedded student engagement, provision of integrated support for students and an enhanced focus on improvements in retention and progression, and on graduate outcomes.
3. Financial Sustainability and Partnerships:
To the extent that the risks in relation to the policy environment, recruitment and retention are not fully mitigated, there will be a risk to financial sustainability. The risk is enhanced as the rate of inflation rises, given largely fixed fee rates, and the impact of the cost of living crisis. The University is actively managing these risks by careful management of the cost base (both staffing and its estate) to ensure value for money and to retain flexibility; prioritising levels of liquidity which would enable downturns to be managed; and diversification into new income streams through partnerships alongside renewal of its own curriculum offer. While they are an essential part of the financial strategy, partnerships themselves present risks which are managed through the University’s Centre for Educational Partnerships and enhanced governance arrangements.
BATH SPA UNIVERSITY 28
GOVERNANCE REPORT
29
ANNUAL REPORT AND FINANCIAL STATEMENT
BATH SPA UNIVERSITY 30
EXECUTIVE TEAM AND GOVERNORS LIST Governors as at 13 December 2023
Senior Staff as at 13 December 2023
Professor Sabbir Ahmed (Staff) (from December 2022)
Professor Susan Rigby (Vice-Chancellor and Chief Executive)
Edward Arnall-Culliford (Staff) (from December 2023)
Professor Georgina Andrews (Vice-Chancellor and Provost) (previously Provost)
Francesca Burke (Student) (from July 2023) Emily Casey (Independent) Antony Durbacz (Independent) (Chair of the Audit Committee) (from October 2022) Steve Egan CBE (Independent) (Chair of Finance and Infrastructure Committee) Francesca Fryer (Independent) (from January 2022) Jonathan Glasspool (Independent) (Chair of the Board of Governors / Chair of the Nominations and Governance Committee Sue Lane (Independent) (Chair of Remuneration Committee) Vinita Nawathe (Independent) Jasmine Raymond-Barker (SU President) (from July 2023) Stephen Riad (Independent) Sanjay Shah (Independent) (from October 2022) Professor Susan Rigby (Vice-Chancellor and Chief Executive) Carole Stott (Independent) Nick Sturge MBE (Independent) Dr Emma Wakelin (Independent) (Deputy Chair of the Board of Governors, from December 2022)
Others who served as Governors during 2022/23 Dr Jacqueline Brasted (Independent) (to May 2023) Marianne Evans (SU President) (to July 2023)
Professor Kyriaki Anagnostopoulou (Executive Dean School of Education and Vice-Provost) (from April 2023) Paul Fox OBE (Pro Vice-Chancellor Finance and Infrastructure) (to October 2022) Professor Simon Haslett (Pro Vice-Chancellor Partnership Strategy) (from December 2022) Dr Mark McGuinness (Pro Vice-Chancellor) Melissa Mulhall (Pro Vice-Chancellor Academic Planning) (from February 2023) David Newman (University Secretary) Professor Andy Salmon (Pro Vice-Chancellor External Affairs) Professor Neil Sammells (Vice-Chancellor) (to September 2022) Dr Rebecca Schaaf (Pro Vice-Chancellor Student Experience) Joanna Stocks (Chief Financial Officer) (from October 2022) Arlene Stone (Director of Human Resources) Professor John Strachan (Pro Vice-Chancellor Research and Enterprise)
Auditors Grant Thornton UK LLP Chartered Accountants 2 Glass Wharf Temple Quay Bristol BS2 0EL
Sapphire Henriksen (Student) (to December 2022)
Bankers
Joy Luxford (Independent) (Deputy Chair of the Board of Governors / Chair of Financial Portfolio Committee) (to December 2022)
Lloyds Bank PLC 47 Milsom Street Bath BA1 1DN
Alice Workman (Independent) (to February 2023) Suzanne Harris (Staff) (to October 2023)
Solicitors Veale Wasbrough Vizards Narrow Quay House Narrow Quay Bristol BS1 4QA
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ANNUAL REPORT AND FINANCIAL STATEMENT
OPERATING STRUCTURE Professional Services divisions
Our Professional Services divisions cover a wide range of vital functions that support the University, from accommodation, communications, finance, human resources and marketing, to buildings and grounds maintenance, IT, legal services, security and sustainability. These teams work closely with academic staff to provide a comprehensive programme of support to staff and students. In partnership with the institution, they deliver changes, refinements and new initiatives arising from the implementation of our Strategy and from our response to circumstances such as financial, educational and legislative requirements. The Professional Services divisions are directed by the Vice-Chancellor through her senior staff.
BATH SPA UNIVERSITY LONDON
Strategic research centres
Academic Director: Dr Lisette Johnson
Research themes shape and inform the work of our researchers through strategic and school-based research centres. Our strategic research centres are: the Story Society (SS) (previously the Centre for Transcultural Creativity and Education); the Centre for Cultural and Creative Industries (CCCI); and the National Centre for Fashion and Sustainability (NCFS). They lead and support interdisciplinary research across the University, and report to the University’s Research and Ethics Committee.
ACADEMIC SCHOOLS
Strategic research projects led by the centres include:
SCHOOL OF ART, FILM AND MEDIA Head: Dr Dan Allen (to October 2023) BATH BUSINESS SCHOOL Heads: Dr Diana Reader and Polly Derbyshire
•
•
SCHOOL OF DESIGN Head: Dr Kristin Doern SCHOOL OF EDUCATION Executive Dean: Professor Kyriaki Anagnostopoulou SCHOOL OF MUSIC AND PERFORMING ARTS Head: Dr Mark Langley SCHOOL OF SCIENCES Head: Professor Sabbir Ahmed SCHOOL OF WRITING, PUBLISHING AND THE HUMANITIES Head: Dr Alison Hems
•
• •
•
•
The award winning Studio: Bath Spa’s Enterprise and Innovation hub supports collaboration between academics, 50+ resident creative technology micro-businesses with a focus on sustainability and students. Residents are offered physical space and specialist support, recognised by the Creative Bath Award to professor Kate Pullinger this year as ‘Inspirational Person of the year - reflecting her huge inspirational, entrepreneurial, and imaginative influence on the West Country’. MyWorld: a £46M UK Research and Innovation (UKRI) Strength in Places funded R&D programme led by The University of Bristol that builds on the existing creative strengths across the Bath and Bristol region to explore the future of creative technology innovation by pioneering new ideas, products and processes. Bath Spa is a core partner in the project and MyWorld funding has allowed us to invest in research, creative tech infrastructure and training, as well as offering Fellowship opportunities to staff (CCCI). Arts Council England grant to help fund Forest of Imagination 2023: Assemble in the Forest at Bath Assembly Rooms. The event attracted over 11,000 visitors in July 2023 and was a co-created event with a host of local and international artists, architects and designers. Funding through a National Portfolio Organisation award form the Arts Council England, to continue the work of Paper Nations into a Creative Writing Incubator for marginalized writers and the black community. Launch of Story Arcs, an AHRC Programme and training academy promoting the wider understanding of Story Skills within life, learning and work. The scheme will be led by Professor Bambo Soyinka in her two-day a week seconded role as Programme Director for Story with the AHRC, and centres around the appointment of Story Associates in a range of organisations across the UK, supported by the Story Society. Recent and ongoing RCEH collaborations with academic partners and diverse communities include work with Indigenous peoples in west Namibia, forest therapy researchers in South Korea, and young people ‘haunting the archives’ to explore working class, queer, colonial and environmental histories of Ashton Court, Bristol. Bath Spa was awarded a UUK Twinning Initiative partnership with the International University of Economics and Humanities in Ukraine, for a joint project: ‘I Vote for Peace’: Collaboration and Compassion in a Time of War, which will support joint academic and community projects and activities across the two institutions.
BATH SPA UNIVERSITY 32
LEGAL INFORMATION Legal status Bath Spa University is a UK higher education corporation under the Education Reform Act 1988, and as such is also an exempt charity, regulated by the Office for Students (OfS). With origins in the nineteenth century, the institution was initially incorporated in England as Bath College of Higher Education and, in 1999, adopted the name of Bath Spa University College. In March 2005, University status was gained, and the institution became Bath Spa University in August 2005.
Delivery of charitable objectives The charitable objects of the University are the advancement of education and research. The members of the Board of Governors, who include the Vice-Chancellor, are the trustees of the charity. As such, the Board of Governors has due regard to the Charity Commission’s general guidance on public benefit. The charity’s immediate beneficiaries are its students. The University has no linked charities attached to it. The University has a public-interest duty to conduct its affairs in a transparent and responsible way, in accordance with the ‘Nolan principles’, and to meet the regulatory requirements of relevant statutory bodies.
Regulatory and good practice context The University adheres to the University’s Instruments and Articles of Government and its Ordinances, together with the following governance codes, principles and regulatory framework(s): • • • • • •
Committee of University Chairs (CUC) HE Code of Governance Committee of University Chairs (CUC) HE Senior Staff Remuneration Code Committee of University Chairs (CUC) HE Audit Committees Code of Practice Office for Students (OfS) Regulatory Framework for Higher Education in England Office for Students (OfS) Public Interest Governance Principles Committee on Standards in Public Life – 7 Principles of Public Life
Throughout the year, up until the date of this report, the University’s governing body, the Board of Governors, is compliant with the Committee of University Chairs Higher Education (HE) Code of Governance (CUC Code), the Committee of University Chairs HE Senior Staff Remuneration Code, and the Committee of University Chairs HE Audit Committees Code of Practice. The University monitors its effectiveness and compliance with the CUC Code by conducting, at least every four years, reviews of the Board’s effectiveness and the University’s governance arrangements. The recommendations are then considered by the Board and implemented accordingly. 33
ANNUAL REPORT AND FINANCIAL STATEMENT
The most recent formal assessment of compliance with the CUC Code was considered by the Board of Governors in April 2021. Bath Spa University’s last independent review of governance effectiveness took place in early 2022. The review was conducted independently by Dawn Turpin Consulting Limited, and overseen, on behalf of the Board of Governors, by a steering group chaired by the then Chair of the Audit Committee and the then Senior Independent Governor, Jacqui Brasted. The main findings of the review were that the University’s corporate governance arrangements are effective. The review found that there has been significant progression in governance maturity in a number of areas since the last Board effectiveness review in 2017/18. The recommendations identified in the review report provided an opportunity to strengthen those arrangements. The Board of Governors approved the final effectiveness review report at its meeting in April 2022. The Board has received updates on progress made against strengthening arrangements following the review, via its Nominations and Governance Committee during 2022/23 with a final report presented to the Board of Governors at its meeting in July 2023. This concluded the implementation of all adopted recommendations from the independent review. The University undertook an internal review of academic governance during the year. Review activities included conducting individual meetings with stakeholders and participation in an online survey. The review was overseen and guided by a Steering Group chaired by the University Secretary and consisting of the Executive Dean of the School of Education and Vice-Provost, the Head of the School of Sciences (also a staff governor), and the Head of Academic Governance and Quality. The findings were presented to the meeting of the Academic Board on 11 July 2023 and provided a series of recommendations seeking to enhance the structure and operational effectiveness of the University’s academic governance. This was considered by the Board of Governors at their meeting of 12 July 2023 and amendments to the terms of reference for the Academic Board were approved by the Board of Governors at that meeting. The University is transparent about its corporate and academic governance arrangements and provides detailed information about those arrangements publicly on the University website. The Board of Governors is responsible for the maintenance and integrity of the corporate and financial information included on the University’s website.
Office for Students requirements It is the responsibility of the governing body (Board of Governors) to ensure that the University continues to satisfy all of its regulatory accountabilities. As such, the University has developed a compliance and assurance framework which sets out those primary regulatory accountabilities
and identifies who responsibility is delegated to and how assurance is given to the Board of Governors. This includes all of the conditions of registration set out in the OfS Regulatory Framework. As Accountable Officer, the Vice-Chancellor, supported by the University Secretary, oversees compliance with the various legal and regulatory accountabilities with oversight from the Audit Committee. Executive leads are responsible for ensuring that those accountabilities are discharged and that appropriate assurance is provided through the University’s governance structure. The compliance and assurance framework is maintained by the University Secretary’s Office and used to inform agenda planning where appropriate.
Access and Participation The University has an Access and Participation Plan in place, as approved by the OfS, which is published on the University’s website.
Student Protection The University has a Student Protection Plan in place, a review of which took place in 2021/22, and was signed off by the Board of Governors in April 2022. The Plan, published on the University’s website, has been approved by the OfS and came into effect from September 2022.
Degree Outcomes Statement Each year the Academic Board considers an overview report of undergraduate degree outcomes for the previous academic year. The statement considered by the Academic Board at its meeting in November 2023 presented undergraduate degree outcomes for the academic year 2022/23, comparing those outcomes with performance in each of the previous four academic years. It presents differential degree outcomes by student characteristics for the same period, highlighting both positive and negative differential attainment gaps. The University’s Education Committee also oversees an updated action plan to continue to address differential attainment gaps. The Board of Governors approves the statement annually, most recently in December 2023.
Transparency Return The OfS requires all English higher education providers to publish their data in regards to admissions and registration. As a registered provider, Bath Spa University publishes this information on its website.
Modern Slavery
Fraud reporting The University has in place an Anti-Fraud, Bribery and Corruption Policy approved by the Audit Committee, and made publicly available on the University website. The policy is scheduled for review in 2025.
Immigration compliance
The Immigration Compliance and Advice Office actively manages Bath Spa University’s obligations to the UK Home Office for international students. It works to maintain the University’s student sponsor status with the UK Home Office while supporting international student recruitment. The team works closely with colleagues across the whole University, and provides guidance and expertise for both students and staff on matters concerning UK immigration requirements, in particular: • Student engagement management • UK Visas and Immigration (UKVI) student visa sponsor guidance • International student enrolments, record keeping and fulfilling the University’s sponsorship duties The Immigration Advice Service at Bath Spa University provides free, confidential, impartial and non-judgemental advice, acting in the best interests of those who use the service, prioritising their interests, subject to regulatory and legal requirements. This service is accessible to all University students, applicants and graduates (up to two years) and University staff subject to immigration control. Our immigration advice is regulated by the Office of the Immigration Services Commissioner (OISC). Higher Education institutions are authorised under a Ministerial Order (Part V of the Immigration and Asylum Act, 1999) to provide immigration advice and services and should adhere to the OISC Code of Standards. Our advisers are all trained in student immigration and related immigration categories. We are constantly updating our knowledge through relevant publications, internal and external training, specialist networks, and direct dialogue with the Home Office. We are members of the UK Council for International Student Affairs (UKCISA) and the Association of International Student Advisers (AISA). Advisers in the Immigration Advice Service are the only University staff legally allowed to give immigration advice. We are authorised to provide immigration advice to Bath Spa University students and staff only.
The University’s anti-slavery statement is published on the University website and is reviewed and approved each year by the Board of Governors.
Equal Pay The Board of Governors is responsible for the framework for pay and conditions of staff. The Remuneration Committee reviews equality and diversity issues in relation to the remuneration of staff, whilst monitoring the gender pay gap, and makes recommendations to the Board of Governors as appropriate. BATH SPA UNIVERSITY 34
CORPORATE GOVERNANCE STATEMENT Leadership The Vice-Chancellor is the University’s Chief Executive Officer and leads and manages the institution. The ViceChancellor is also the Accountable Officer (Higher Education and Research Act 2017) and reports to the Board of Governors. The Vice-Chancellor is a member of the Board of Governors and Chair of the University’s Academic Board. The ViceChancellor is responsible for ensuring that public funds are properly used and that the University achieves value for money. The Vice-Chancellor is supported by the Executive Team and by a clear management structure that allows for the effective delivery of the University’s mission and strategy. The Vice-Chancellor leads on institutional strategy and developments, and makes proposals to the Board of Governors about the educational character and mission of the University. The Board of Governors has ultimate responsibility for overseeing the effective management, governance and conduct of the University.
The Board of Governors meets at least five times a year and has a number of standing committees including a Finance and Infrastructure Committee, a Remuneration Committee, an Audit Committee and a Nominations and Governance Committee. All are formally constituted with terms of reference, and comprise independent members of the Board of Governors, one of whom is designated to chair meetings. The University aims to be transparent about its governance arrangements by making board agendas and minutes (redacted as appropriate) publicly available on the University’s governance web pages, along with annual reports to the Board such as Remuneration and the Annual Report and Financial Statements. The Board’s Register of Interests is open for public inspection via the website. During 2022/23, the following Board committees were in operation: •
The Financial Portfolio Committee was operational during 2021/22 and the early part of 2022/23. The Committee was disbanded on 15 December 2022 and its work was absorbed into the Finance and Infrastructure Committee. During its operation it was responsible to the Board of Governors for evaluating and recommending for approval the University’s financial portfolio of investments, for investment of funds on a medium and long-term basis; recommending the approval a long-term financial portfolio investment policy, consistent with the University’s risk appetite and cash-flow requirements; appointing and monitoring the performance of Investment Fund Managers; monitoring the management of the medium and long-term financial investment portfolio against established benchmarks, agreed objectives and targets and all associated risks; recommending a Responsible Investments Policy, informed by Environmental, Social and Governance considerations, and monitoring its implementation, and appointing and liaising with specialist investment advisors as appropriate.
•
The Finance and Infrastructure Committee recommends to the Board of Governors the University’s annual income and expenditure budget and monitors performance in relation to the approved budgets and key financial indicators. The committee has oversight of the University’s digital and physical estates strategies. The Finance and Infrastructure Committee absorbed the work of the Financial Portfolio Committee, as outlined above, with effect from 15 December 2022.
•
The Remuneration Committee determines the grading, pay and terms and conditions of service for holders of
Governance The Instrument and Articles of Government require the University to have two separate bodies: the Board of Governors and the Academic Board. Each has clearly defined functions and responsibilities to oversee and manage the University’s activities.
Board of Governors The University’s Board of Governors comprises independent governors, staff and student members, appointed under the Instrument and Articles of Government of the University. The majority of members are independent and non-executive. The roles of the Chair and Deputy Chair of the Board of Governors are separated from the role of the University’s Vice-Chancellor and Chief Executive. The Board of Governors has also designated the role of Senior Independent Governor to the Chair of Audit Committee. Roles and responsibilities of specified Board and University Officers are set out within the University’s Ordinances. The matters specifically referred to the Board of Governors for decisions are set out in the Instrument and Articles of Government of the University, by custom and as directed by the Office for Students. The Board of Governors is responsible for the ongoing strategic direction of the University, approving major developments and receiving regular reports from executive officers on day-to-day operations.
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ANNUAL REPORT AND FINANCIAL STATEMENT
senior posts, which include the Vice-Chancellor and the University Secretary by virtue of the University’s constitution, and by designation the Vice-Chancellor and Provost and the Chief Financial Officer, balancing the needs of the University in a competitive environment with the appropriate use of funds. Additionally, the committee reviews the framework for the pay and conditions of service for all other staff, the gender pay gap and equality and diversity, making recommendations to the Board of Governors where appropriate. The Vice-Chancellor is not a member of this committee. The committee operates in accordance with the Committee of University Chairs HE Code of Governance, including the Committee of University Chairs Higher Education (HE) Senior Staff Remuneration Code and in alignment with the model terms of reference for Remuneration Committees. •
The Audit Committee is constituted in line with guidance issued by the CUC HE Code of Governance and with the CUC HE Audit Committees Code of Practice. It considers detailed internal audit reports and recommendations for the improvement of the University’s systems of internal control, together with management’s response and implementation plans. It also receives and considers reports from the Office for Students as they affect the University’s business, and monitors adherence with regulatory requirements. In addition, it receives reports on value for money, and reports relating to any instances of fraud and whistle-blowing. Whilst senior University officers attend meetings of the Audit Committee as necessary, they are not members of the committee. The committee meets in private with the internal auditors, and the external auditors where required, without the presence of management, for independent discussions at the start of each ordinary meeting. Both the external and internal auditors have independent access to the committee and vice versa.
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The Nominations and Governance Committee reviews the membership of the Board of Governors and considers skills, diversity and succession planning in addition to the process for nominations and appointments to the Board of Governors. In July 2022, as a result of a recommendation arising from the independent governance effectiveness review, the Board of Governors agreed to broaden the remit of the committee to encompass responsibility for oversight of effective governance operations as well as nominations. The name of the committee and revised terms of reference were agreed in the autumn term of 2022. BATH SPA UNIVERSITY 36
Academic Board The Academic Board is the academic authority of the University whose role is to oversee the scholarly activities of the University, and to be responsible for academic quality and standards and for the admission and regulation of students on behalf of the Board of Governors. Chaired by the Vice-Chancellor, its membership is drawn mainly from the academic staff of the University and also includes student representatives. The Academic Board provides assurance to the Board of Governors that academic governance is effective. Independent members of the Board of Governors are invited to attend and observe a meeting of the Academic Board as part of induction, with the purpose of experiencing the University’s academic governance in operation.
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Register of Interests The University maintains a register of interests of members of the Board of Governors, members of the Committees of the Board of Governors, including co-opted members, and senior officers of the University. The register is available for inspection on request to the University Secretary on the University’s website. During the year ending 31 July 2023, a total of £1,320.52 was reimbursed to, or paid on behalf of, members of the Board of Governors in respect of travel and other expenses. Members are not remunerated for their services to the Board of Governors.
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Statement of the primary responsibilities of the Board of Governors The Board of Governors is the supreme governing body of the University and is responsible for the exercise of the University’s powers. The following are the primary responsibilities of the Board of Governors as set out in the University’s Ordinances, which were last revised and approved by the Board of Governors on 28 September 2022: •
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To approve the mission and strategic vision of the University, long-term academic and business plans and key performance indicators, and to ensure that these meet the interests of stakeholders; To ensure that processes are in place to monitor and evaluate the performance and effectiveness of the University against the plans and approved key performance indicators, which should be, where possible and appropriate, benchmarked against other comparable institutions; To appoint a Vice-Chancellor as chief executive, and to put in place suitable arrangements for the monitoring of his/her performance; To delegate (whilst retaining the ability to scrutinise such delegation) authority to the Vice- Chancellor, as Chief Executive, for the academic, corporate, financial, estate and human resources management of the University and to establish and keep under regular review the policies, procedures and limits within such management functions as shall be undertaken by and under the authority of the Vice-Chancellor; To ensure the establishment and monitoring of systems of control and accountability, including financial and ANNUAL REPORT AND FINANCIAL STATEMENT
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operational controls and risk assessment and procedures for handling internal grievances and for managing conflicts of interest; To establish processes to monitor and evaluate the performance and effectiveness of the Board itself; To conduct its business in accordance with the Office for Students’ public interest governance principles, best practice in higher education corporate governance and with the principles of public life drawn up by the Committee on Standards in Public Life; To safeguard the good name and values of the University; To appoint a Secretary and to ensure that, if the person appointed has managerial responsibilities in the University, there is an appropriate separation in the lines of accountability; To be the employing authority for all staff in the University and to be responsible for establishing a human resources strategy; To be the principal financial and business authority of the University, to ensure that proper books of account are kept, to approve the annual budget and financial statements, and to have overall responsibility for the University’s assets, property and estate; To be the University’s legal authority and, as such, to ensure that systems are in place for meeting all the University’s legal obligations, including health and safety, and those arising from contracts and other legal commitments made in the University’s name; To receive assurance that adequate provision has been made for the general welfare of students; To act as a trustee for any property, legacy, endowment, bequest or gift in support of the work and welfare of the University; To ensure that the University’s constitution is followed at all times and that appropriate advice is available to enable this to happen.
Statement of the responsibilities of the Board of Governors for the financial statements
In accordance with the University’s Instrument and Articles of Government, the Board of Governors of Bath Spa University is responsible for the oversight of the conduct of the affairs of the University, and is required to present audited financial statements for each financial year. The Board of Governors is responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the University and to enable it to ensure that the financial statements are prepared in accordance with the University’s Instrument and Articles of Government, the Statement of Recommended Practice on Accounting in Higher Education Institutions, Office for Students’ accounts direction, and other relevant accounting standards. In addition, within the terms and conditions of funding for higher education institutions with the Office for Students, the Board of Governors, through its designated office holder,
is required to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the University and of the surplus or deficit and cash flows for that year. In causing the financial statements to be prepared, the Board of Governors has ensured that: • • •
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Suitable accounting policies are selected and applied consistently. Judgements and estimates are made that are reasonable and prudent. Applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements. Financial statements are prepared on the going concern basis unless it is inappropriate to presume that the University will continue in operation. The Board of Governors is satisfied that the University has adequate resources to continue in operation for the foreseeable future. For this reason the going concern basis continues to be adopted in the preparation of the financial statements.
any weaknesses identified are dealt with promptly and proportionally. The system of internal control is based on an on-going process designed to identify the principal risks to the University’s policies, aims, and objectives, to evaluate the nature and extent of those risks, and to manage them efficiently, effectively and economically, including an evaluation of the likelihood and impact of risks becoming a reality. The review process covers business, operational and compliance risk as well as financial risk. This process has been in place for the year ended 31 July 2023 and up to the date of approval of the financial statements. 3. The Board of Governors has responsibility for reviewing the effectiveness of the system of internal control. The following processes have been established: •
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The Board of Governors has taken reasonable steps to: •
Ensure that funds from the Office for Students are used only for the purposes for which they have been given and in accordance with the ongoing conditions of registration, including compliance with the OfS terms and conditions of funding for higher education institutions, and financial memoranda issued by other funding bodies. • Ensure that there are appropriate financial and management controls in place to safeguard public funds and funds from other sources. • Safeguard the assets of the University and to prevent and detect fraud. • Secure the economical, efficient and effective management of the University’s resources and expenditure. Statement of internal control for the period 1 August 2022 to the date of this report 1. As the governing body of Bath Spa University, the Board of Governors has responsibility for maintaining a sound system of internal control that supports the fulfilment of the University’s policies, aims and objectives, while safeguarding public funds and other funds and assets for which it is responsible, in accordance with the responsibilities assigned to the governing body in the University’s Instrument and Articles of Government and the public interest governance principles set out in the OfS regulatory framework for higher education in England, together and financial memoranda issued by other funding bodies. 2. The system of internal control is designed to manage rather than eliminate the risk of failure, and to achieve policies, aims and objectives. It can therefore only provide reasonable and not absolute assurance of effectiveness. However, it is constantly monitored and
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The Board of Governors meets formally at least five times a year to consider the plans and strategic direction of the University. The Board of Governors receives periodic reports from the Audit Committee concerning internal control, and requires regular reports from managers on the steps they are taking to manage risks in their areas of responsibility, including progress reports on key projects. The Board of Governors discusses risk and related reports from its Committees, in particular the Audit Committee, and risk reviews include business, operational and compliance risk as well as financial risk. These discussions set the tone and influence the culture of risk management, determine the risk appetite of the University and set standards and expectations of staff conduct and probity in relation to risk management (information about the key strategic risks for the University are included in the ‘Strategic report’ section of this Annual Report). The Audit Committee receives regular reports from the Head of Internal Audit which include the Head of Internal Audit’s independent opinion on the adequacy and effectiveness of the University’s system of internal control, evidence to support achievement of value for money in respect of the systems reviewed, together with recommendations for improvement. Material issues are escalated to the Board of Governors. A regular programme of meetings of senior staff is held to identify and keep up to date the record of risks facing the University. A system of key performance and risk indicators is maintained and is regularly reviewed. A robust risk prioritisation methodology based on risk ranking is maintained and subject to regular review. The University manages risks through a University Risk Register, which is reviewed regularly throughout the year and is considered at every meeting of Audit Committee and periodically by the Board of Governors. BATH SPA UNIVERSITY 38
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School/Department Risk Registers are regularly maintained with risks escalated to the University Risk Register where appropriate as part of an annual risk review process. Effective identification and management of risk is critical to the achievement of the University’s long-term objectives and helps determine the University’s longer term planning and Strategy. The Board of Governors has adopted a risk management policy in line with governance best practice both inside and outside of the higher education sector. The University’s risk management policy and risk appetite statement is reviewed annually by the University Executive team, the Audit Committee and the Board of Governors. Both documents were last revised in July 2023 and no amendments were deemed necessary at that time. Reports are received from budget holders and department heads on internal control activities. The External Audit function gives an independent opinion on the University’s annual Financial Statements and the use of public funds. These statements summarise the University’s financial performance during the year and its financial position as at the end of the financial year. For the period 1 August 2022 up to the date of this report, the University is compliant with the CUC Higher Education Code of Governance which is principally committed to identifying the key values and practices on which the effective governance of UK higher education providers is based. An independent governance effectiveness review was conducted in early 2022 and the review determined that the University’s corporate governance arrangements are effective. The Board of Governors monitors 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 ongoing conditions of registration. In particular, the University maintains a register setting out the sources of assurance in respect of the University’s ongoing conditions of registration with the OfS. This register is reviewed annually by the Audit Committee and the Board of Governors to ensure and monitor compliance.
In July 2022 the University commissioned an independent audit in respect of the internal control arrangements for the recruitment, registration and enrolment of students and the return of accurate data about students to the Student Loans Company. A follow-up review was conducted by the University’s internal auditors in May 2023 which found that all outstanding recommendations arising from the independent audit had been completed.
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During the reporting year, the University participated in an OfS data assurance audit in respect of specific aspects of a student data return made to the designated data body in 2021/22. As part of the University’s response to this audit, the University initiated an action plan to strengthen and enhance its internal controls, in-line with the recommendations made. Planned progress updates will be reported to the University’s Audit Committee throughout 2023/24 and until such time as the actions are deemed to have been completed Review of the effectiveness of the system of internal control is informed by the Internal Audit Service which operates to good governance standards and best practice. The Internal Auditors submit regular reports which include their opinion on the adequacy and effectiveness of the University’s system of internal control, with recommendations for improvement. Review of the effectiveness of the system 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 by comments made by the external auditors in their management letter and other reports. On behalf of the Board of Governors, and after having considered reports, recommendations and reviews on the effectiveness of the University’s arrangements for risk management, internal control and governance and for financial year 2022/23, the Audit Committee has expressed itself satisfied that the systems and controls are effective, including for public funding received from the OfS, UK Research and Innovation (UKRI, including Research England) and other funding public bodies. Overall, the University has a robust governance framework that gives the Board of Governors assurance that its governance arrangements are sound. The review of Governance and Internal Controls has not identified any actions other than those already reported, and being monitored, from internal and external reviews. By Order of the Board of Governors, 13 December 2023
Jonathan Glasspool Susan Rigby Chair Accounting Officer
BATH SPA UNIVERSITY 40
REPORT OF THE BOARD OF GOVERNORS
SUSTAINABILITY REPORT
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BATH SPA UNIVERSITY 42
Principles Sustainability is one of the University’s unique selling points. Our Sustainability Strategy comprises nine themes (below) and is framed in response to the UN Sustainable Development Goals (SDGs). Each theme has a theme leader, who is a senior manager responsible for delivery.
Themes: 1. 2. 3. 4.
5. 6. 7. 8. 9.
Education Research Social enterprise Campus management 4.1 Energy and carbon 4.2 Waste 4.3 Emissions and discharges 4.4 Water 4.5 Biodiversity 4.6 Construction and refurbishment Digital technology Transport Procurement Health and wellbeing Sustainable finance
Governance and Reporting Implementation of the strategy is overseen by the Sustainability Steering Group (SSG), which comprises the Theme Leaders and is Chaired by our Pro-Vice-Chancellor External, Andy Salmon. SSG meets three times annually. We maintain an internal measure of progress towards our ultimate goals, in the form of a “Maturity Matrix” (Figure 2). This enables us to identify areas that require the most support and to track progress overall. Our two primary external measures of progress are the Times HE Impact Ranking, which ranks worldwide Universities according to their contribution to the UN SDGs, and the People and Planet University “Green League”, which ranks UK universities according to a wide range of sustainability criteria. We achieved a First Class position last year, with a ranking of 18th in the UK.
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Our environmental impacts and energy consumption are strategically managed via our independently audited ISO14001 and ISO50001-certified Environmental and Energy Management Systems. These systems ensure that our governance, processes and procedures reflect international best practice and that we can demonstrate continual improvement.
Significant achievements in 2022/23 academic year People and Planet University “Green League” Bath Spa were ranked 18th of all universities in the UK and 3rd of 16 in the Southwest against a wide range of sustainability criteria. This is a People and Planet 1st Class Award and is our best position since 2014.
Social Enterprise Gold Mark certification
Thanks to the determined efforts of many at the University, most notably the recent partnership building by the External Affairs Team under Andy Salmon and the hard work of Hannah Whiting, we were awarded the Social Enterprise Gold Mark. Recommended areas of improvement have been incorporated into the new Theme 3 “Social Enterprise” section of the Sustainability Strategy.
Hedgehog Friendly Campus Silver Award
We were proud to have been awarded the Gold Hedgehog Friendly Award in 2023. Most of the work was done by our student Sustainability Ambassadors, which we employ in the sustainability team, giving students experience of working on sustainability topics throughout the year. Travel plan Our newly updated Travel Plan was published during 2023, alongside the roll-out of our new business travel partner, Key Travel, which replaces our previous provider, Corporate Traveller. The new provider will enable much simpler, userfriendly booking of all forms of travel, including UK and overseas rail travel and accommodation. Staff will now be able to compare the climate impact of different modes of travel before booking and can choose carbon-neutral accommodation, where available. We have also launched a salary sacrifice scheme to electric vehicles and are increasing the provision of chargers on campus.
Times HE Impact Ranking This is the Times Higher Education Impact’s fifth year of publication and Bath Spa’s fourth year of participation. This year’s results are based primarily on 2021/22 data from 1,591 universities Worldwide (Figure 1).
Institutions with overall rankings below the top 100 are grouped in subsequent tiers of 100. Our overall ranking in this year’s league table was in the 300-400thth tier, out of 1,591 participating universities worldwide.
Our overall score decreased from 941 to 914 out of a possible 1,700. The number of SDGs in which we were placed in the top 75%ile decreased by three to four. Our overall ranking remained in the 300-400th band. However, the pool of participants increased again from 1,441 to 1,591.
We scored within the top 75%ile worldwide in five SDGs: SDG 4 Quality Education; SDG 10 Reduced Inequalities; SDG13 Climate Action; and SDG17 Partnerships for the Goals (Figure 1). Our worst scoring SDG was SDG 9 Industry, Innovation and Infrastructure.
Overall, this puts Bath Spa in the top quartile of Universities worldwide, with room for improvement
Figure 1. THE Impact Ranking scores (black dots) with comparisons to the world’s highest and lowest scores, 75%ile and median scores
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Maturity Matrix Our maturity matrix (Figure 2) enables us to see at a glance where we are doing well and where additional focus is required. A score of 100 represents our view of aspirational best practice. Our position in the 2020-21 academic year is indicated by the solid blue line. Progress in the last academic year is given by the red dashed line.
Progress scores are agreed annually at SSG but are a moving feast as progress is made throughout the year. These metrics include estimates for the new Themes of Research, Digital Technology have not yet been agreed at SSG and will be subject to change, following the November meeting.
Sustainability Strategy Theme Status
Figure 2. Bath Spa Sustainability Strategy Maturity Matrix showing 2020/21 position in blue solid line and 2021/22 progress in red dashed lines.
Education and Research
A maturity score of 100 in this Theme would require that for education, sustainability is a clear “graduate attribute”, or similar measure, and is integrated across the entire curriculum and, carbon/sustainability literacy training is available to all staff and students and is part of the student induction process. For research, our current research strategy already clearly aligns with the UN SDGs and we are developing a methodology to demonstrate the degree to which our research supports this. A score of 100 for research would reflect a position where we are able to demonstrate the positive contribution to the SDGs across all our research and publication output. However, in the forthcoming iteration of our Sustainability Strategy, Research will have its own theme. Work is underway on the other measures of success outlined above.
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Campus Management Energy and carbon Reducing our energy consumption and carbon emissions has been a major focus for us since 2010. A score of 100 would be represented by achieving complete de-carbonisation of our energy and heat supply. This is already the case for electricity, since we negotiated a certified renewable electricity supply from UK wind and solar in 2016. Work on de-carbonising our heat supply is on-going and is the primary focus looking towards 2030. The continuation of this work will be essential if we are to meet our Net Zero 2030 ambitions costeffectively. Total Scope 1 and 2 (gas, electricity, Bath Spa vehicles and refrigerant losses), accounting for our renewable electricity supply, have remained fairly constant at around 1,000 t/y since the completion of our energy performance contract (EPC) in 2016, which implemented the remaining projects in
our 2010 CRMP (Figure 3). This is despite the addition of our Locksbrook Campus facilities and the expansion of Oldfield Park theatre workshops. The decrease in carbon emissions over the summer of 2022 was due to the shutting down of our gas supply to NP, to repair a gas leak. Energy intensity (kWh/m2/y, red line Figure 4) is a key measure to determine the efficiency with which we run our estate, which is independent of the size of the estate. Following a sustained multi-year period of continual improvement, energy intensity increased over the Covid pandemic, due to regulatory changes to our ventilation strategy.
The 2022/23 value of 157 kWh/m2 demonstrates that we have now regained the pre-pandemic level of efficiency. Work is continuing on developing the next phase of efficiency opportunities. The tender for the next phase of our de-carbonisation programme, which will focus on heat demand reduction and replacement of our gas heating with electrical heat pump technology has been published. The selection process to find a partner that we believe will be able to deliver the multiyear programme to our satisfaction has begun. The initial phase of this work will focus on developing a detailed, costed de-carbonisation plan and investment-grade proposal, for submission to Salix for funding. We expect this plan to be delivered in this (2023/24) academic year.
Figure 3. Total Scope 1 and 2 carbon emissions for Bath Spa University , Green bars show emissions, accounting for our procurement of renewable electricity since 2016. Black dashed line shows our Scope 1 and 2 emissions if we purchased grid-averaged electricity
Figure 4. Energy intensity (red line, kWh/m2/y). Carbon intensity (blue line kg CO2/m2/y) and floor area of our estate (m2 GIA)
BATH SPA UNIVERSITY 46
Waste
A score of 100% would be attained if we recycled all recyclable materials and sent nothing to landfill or incineration. In reality, this would require change in the UK’s waste management infrastructure and circularity of the economy on a scale that is unlikely in the near future. Landfill rates have been below 2% of our total waste for several years. Waste that is not recycled (including AD treatment of food waste) or landfilled, is incinerated for energy recovery. This is currently considered the least-worst option available to us but is far from ideal. At the end of 2022/23, we implemented an additional step in the processing of our residual (non-food and non-recycling) waste stream to recover additional recyclable materials before the remaining waste is sent for EFW (energy from waste incineration). We expect that this will increase our recycling rates by at least a further 10%.
Total waste (blue bars Figure 5) has remained fairly consistent over the last four years, which included the Covid shut-down period. This is a substantial reduction from the 2017/18 height of 521 tonnes, following the inclusion of Green Park House and Locksbrook Campus in our estate. This is an exceptional result, which is corroborated by the waste per FTE, which has halved from 48 kg/FTE in 2017/18 to 23 kg/FTE last year. Our recycling rates have remained above 70% every year since the implementation of our bag-less 3-stream process in 2014/15. We expect that the additional step in our residual waste processing, which we implemented recently, will see an increase in this parameter to the mid 80’s from this academic year.
Figure 5. Total waste (blue bars) % recycling (green line with squares) and waste per FTE (red line)
Water
A maturity score of 100 would require the elimination of leaks from our infrastructure and water-minimisation facilities in all our buildings. Considerable work has gone into finding and eliminating leaks from our water mains infrastructure at NP over the last three years. We have reduced losses at Newton Park form around 3M3/h to well below 1M3/h. This will reduce annual water bills by c.£70k p.a. We continue to monitor, find and repair leaks on our water mains, with the intention of replacing over time, all historic pipes and connections that are at high risk of leaking.
Emissions and Discharges
We remain compliant with all emissions and discharges, via our proactive maintenance of heating and cooling plant and through vigilant spill prevention and control. A maturity score of 100 would require the elimination of all refrigerant leaks and the replacement of biomass fuel and gas with electrical heat pump plant at all sites.
Biodiversity
Biodiversity enhancements and monitoring continued during the last year, including newt surveying, for Great Crested 47
ANNUAL REPORT AND FINANCIAL STATEMENT
Newt population recording, bird and bat box surveys, and of course, hedgehog surveys carried out by students. We are now proud holders of the Hedgehog Friendly Campus Gold Award.
Construction and refurbishment A score of 100 would be achieved if we had a sustainable construction policy in place, which committed us to zero carbon construction, Passivhaus new builds and Enerphit standard major refurbishments. This policy would need to have been demonstrated by the successful completion of a Passivhaus development. Work is ongoing to achieve this.
Transport A score of 100 would require large-scale electrification of our commuting traffic, complete electrification of our fleet vehicles, a robust policy to manage and reduce business travel emissions and an offsetting programme to mitigate any remaining emissions. Work is ongoing to achieve all these aspirations.
Business travel
Complete business travel data from 2022/23 have not yet been updated due to technical issues, which are being resolved currently. However, flight data from Corporate Traveller, which makes up around 90% of our flights, have been analysed and suggests that our post-Covid return to “normal” travel is around double the emissions of 2021/22 but a significant reduction on pre-Covid levels.
Daily commuting
Due to a range of factors, including Covid-related disruptions, the 2022 travel survey was the first to have returned usable results for both staff and students since 2017/18. Responses were received from approx. 900 students and 450 staff, representing 14% and 38% respectively. A 20% or 765 t reduction in total carbon emissions from commuting was recorded in the 2022 survey, reducing from 3,715 t in 2017/18 to 2,951 t in 2022/23. This was due to a reduction in car journeys by both staff and students. The use of bus services has increased by 26% in the student body but bus travel by staff has decreased by 23%. Overall bus travel increased by c.38% from c.8M km in 2017/18 to c.12.8M in 2022/23. A Salary Sacrifice scheme for leasing electric vehicles was implemented in the Summer of 2023. This scheme is aimed at increasing EV usage among commuting staff, to accelerate the reduction in commuting emissions.
Procurement A score of 100 will be attained when we have a Sustainable Procurement System in place, which is compliant with ISO20400, and can demonstrate with confidence that we have significantly reduced the risk of modern slavery, exploitation and environmental degradation from our supply chains. In addition, a methodology to reliably measure the carbon impact of our supply chains and be able to influence procurement decisions, based on this information. Significant work remains to achieve all these goals.
The sustainability and procurement teams are working together to develop a Sustainable Procurement System, which will be compliant with the new standard ISO20400. This includes risk analysis of our supply chains to identify high risk areas for attention. This work is progressing, and it is our intention to have an externally-certified ISO20400 system in place by 2025.
Wellbeing We would score 100 if we thought we had in place all possible measures to ensure the health and wellbeing of all staff and students. The joint work of our HR department and the Student Wellbeing team over the last couple of years towards achieving certification to the University Mental Health Charter has taken us a long way there. Final certification will increase our score and this is expected during 2024. Theme 8 of the Sustainability Strategy has been redrafted to reflect this “whole university approach”. The redraft is expected to be incorporated in the November SSG meeting.
Sustainable Financial Management A Maturity Score of 100 would be achieved if we could demonstrate that all our investments and our day-to-day banking aligned with our values and Social Enterprise Gold Mark status. During 2022, we made significant progress in this regard with the development of our Responsible Investment Policy and associated Committee. There is scope for continual improvement in this regard. Monitoring to ensure that the Policy commitments are adhered to, and their intent is upheld will be crucial. In terms of our day-to-day banking, we are working with our service provider and looking at other products to understand the risks and opportunities inherent in our current practice and how our response to these challenges can be aligned to support our core values in an optimal way. We must also evaluate opportunities to diversify the management of our different income streams for maximum social benefit.
BATH SPA UNIVERSITY 48
REPORT OF THE BOARD OF GOVERNORS
REMUNERATION COMMITTEE REPORT
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Terms of reference and membership
Principles
The Remuneration Committee terms of reference were reviewed in October 2022 and, following some minor updates, were approved by the board of governors on 15 December 2022
Bath Spa University is aware of its responsibilities to demonstrate appropriate use of resources, whilst ensuring that we attract and retain the best possible staff to maintain our reputation, add to society and the local economy, and ensure our students have the best possible experience and outcome. Our staff are our greatest asset and appropriate remuneration and reward are an important part of our relationship.
The Committee’s remit applies only to the holders of “Senior Posts” defined as Vice-Chancellor, ViceChancellor and Provost, Chief Financial Officer and the Secretary to the Board of Governors (a role undertaken by the University Secretary). In 2022/23, the Committee met on two occasions, October 2022 and May 2023, both meetings were quorate. The members, as outlined below, were in attendance for the review period with the University Secretary represented by L Barling, Governance Manager for the October meeting and Ms K Lee, Governance Manager for the May meeting as the Committee Secretary. The University Secretary was not present for any discussions about his own pay. The Remuneration Committee meetings are also attended by the University’s HR Director who provides information and analysis. The Vice-Chancellor was not present for any discussions, including discussions about her own pay but is in attendance when requested by the Chair; this of course excludes meetings or agenda items where discussions and decisions are made where there would be personal implications.
The following three elements of fair and appropriate remuneration, from the Committee of University Chairs (CUC) code, shall govern the determination of remuneration for senior staff: • • •
A fair, appropriate and justifiable level of remuneration Procedural fairness Transparency and accountability.
In setting/approving the remuneration of senior post holders of the University, multiple factors are considered that have arisen through discussion and reference to the CUC HE Remuneration Code: • • •
The economic environment and the extent of pay restraint nationally The role and ability to recruit into that role in the current local/ national/international market The skills and experience the individual brings to the role and the wider University, including leadership skills Role-based market rates/benchmark information The performance in the previous 12 months measured through individual and team performance review related to the University’s strategic objectives. In particular, exceptional performance should be rewarded The overall pay envelope The requirement to reduce the gender pay gap.
The Remuneration Committee comprises independent members from a range of backgrounds who are able to provide an independent view on remuneration matters. Remuneration Committee members have the requisite skills in line with the current Higher Education Senior Staff Remuneration Code. During 2022/23, the Committee’s membership was composed as follows:
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CATEGORY OF MEMBERSHIP
In doing all of the above, remuneration decisions will enable:
The Chair of the Board of Governors Independent members of the Board with expertise in leadership and/or senior remuneration in other sectors, appointed by the Board
NAME
Mr J Glasspool (Chair of the Board) Ms S Lane (Current Chair) Dr J Brasted attended the October meeting before retiring as a governor Ms J Luxford was a member for the October meeting where she sent apologies before she retired as a governor Dr E Wakelin joined the Committee as a member for the May meeting Ms C Stott became a member from the May meeting but sent her apologies
*No member of University staff is a member of the Remuneration Committee. There was no conflict of interest for Remuneration Committee members at any meeting during 2022/23. 51
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• • • • •
The recruitment, motivation and retention of the highest quality staff Exceptional performance to be recognised Internal relativity.
The Committee and the Board of Governors approved a Reward and Recognition Strategy in May and September 2022 respectively, which expands on how the University intends to implement these principles. This involved input and advice from an external reward specialist.
Work of the Committee The Committee has been mindful of the challenges the University operates within that include the post-pandemic environment, and a range of high levels of uncertainty and change. Members considered the turnover and size of the University, understanding that it is positioned as relatively small in the sector. The Committee also considered the challenges that are faced by having multiple sites, the increasing number of educational partnerships, the ambitions of the University in the Strategic Plan 2022-25, and international links.
In addition to the above, the Committee examined and discussed a broad and comprehensive set of data identified below. In summary, the main considerations taken into account by the Committee in determining changes to the remuneration packages of the holders of Senior Posts were: •
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The performance of the University, for example as set out in the regular reports to the Board on specified key performance indicators The individual contribution of post-holders, as aligned with the University’s Strategy and performance, and in relation to agreed personal objectives The need for the University to maintain its competitive position in higher education and the wider marketplace for equivalent positions Affordability and reputation.
Given that the University is competing in increasingly competitive national and international markets, the data the Committee used to inform its deliberations therefore draws on a broad range of contextual and bench-marking information. The information analysed included the following: •
University and Colleges Employers Association (UCEA) Senior Staff Remuneration Survey data for:
•
During 2022/23, the Committee received reports on the performance of the holders of Senior Posts against their objectives. The Committee recognised the unpredictability of the external environment and the impact on the financial performance of the organisation. The Remuneration Committee were extremely complimentary about how effectively the leadership team had worked particularly given some changes in the senior team. The Committee’s discussions during this time period covered inter alia: The important governance role of the Committee in reaching remuneration decisions.
•
Alignment between the remuneration packages of holders of Senior Posts with the performance of both the individuals and the University and in particular that performance related pay should only reward exceptional performance.
Benchmark information from other universities including the CUC Vice-Chancellor salary survey data for:
•
How the Committee would be able to demonstrate that their decisions represented value for money.
◊ Falmouth University ◊ Goldsmiths ◊ University of Winchester ◊ University of Portsmouth ◊ University of Buckingham ◊ University for the Creative Arts ◊ Coventry University
•
The potential for other roles outside the sector to also be used as benchmarks.
The Committee also received and noted information on: •
Following some discussion the previous year about involving staff and students in remuneration issues, the HR Director met with staff and student governors and reported their views back to the Remuneration Committee to inform their decision making.
•
◊ All institutions ◊ All Post-92 institutions ◊ All institutions with an income of £70m to £100m ◊ Post 92 universities with an income of £70m to £100m ◊ Million+ group •
In 2020/21, the committee conducted a self-assessment against the CUC HE Remuneration Code. As part of that review, they asked for confirmation from all senior post holders that they had not exceeded the maximum income derived from external activities of £15,000 per annum as per the consultancy policy for all staff. This was confirmed to the committee for the academic year 2021/22 at its meeting on 12 October 2022.
The national pay negotiations between UCEA and the five trade unions The pay multiple of the remuneration of the ViceChancellor to the median earnings of the University workforce. This year the ratio for the basic pay of the Vice-Chancellor compared to medians was 6.1 compared to 6.3 the previous year and 7.1 for total pay which was the same for the previous year.
In addition to the above, the Committee received papers about and discussed the gender pay gap (which covers all staff groups), ethnicity and disability pay gaps, staff diversity data and equality and diversity activities prior to a summary report going to the Board. They also reviewed the framework for pay and conditions of staff and received a report on governor’s expenses.
Sue Lane Chair of the Remuneration Committee
BATH SPA UNIVERSITY 52
INDEPENDENT AUDITOR’S REPORT TO THE GOVERNING BODY OF BATH SPA UNIVERSITY
awaiting
53
ANNUAL REPORT AND FINANCIAL STATEMENT
content
BATH SPA UNIVERSITY 54
Opinion We have audited the financial statements of the Group and Parent University for the year ended 31 July 2023, which comprise the Consolidated and Institution Statements of Comprehensive Income, the Consolidated and Institution Statements of Financial Position, the Consolidated and Institution Statements of Changes in Reserves, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant 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 Parent University’s affairs as at 31 July 2023 and of the group’s and parent University’s income and expenditure, gains and losses, changes in reserves and of the group’s cash flows for the year then ended;
In our evaluation of the Board of Governors conclusions, we considered the inherent risks associated with the Group and Parent University’s business model including effects arising from macro-economic uncertainties such as the cost of living crisis, we assessed and challenged the reasonableness of estimates made by the Board of Governors and the related disclosures and analysed how those risks might affect the group’s and parent University’s financial resources or ability to continue operations over the going concern period.
•
Our responsibilities and the responsibilities of the Board of Governors with respect to going concern are described in the relevant sections of this report.
Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice.
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 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.
Basis for opinion
Other information
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 and Parent University 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.
The other information comprises the information included in the Reports and Financial Statements, other than the financial statements and our auditor’s report thereon. The Board of Governors is responsible for the other information contained within the Reports and Financial Statements. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Conclusions relating to going concern We are responsible for concluding on the appropriateness of the Board of Governors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group and Parent University’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the Group and Parent University to cease to continue as a going concern.
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ANNUAL REPORT AND FINANCIAL STATEMENT
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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is 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.
Opinion on other matters prescribed by the Office for Student’s (‘OfS’) accounts direction (issued October 2019)
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 relevant terms and conditions; and The requirements of the OfS accounts direction 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 requires us to report to you where: • The Group and Parent University’s grant and fee income, as disclosed in the note to the accounts, has been materially misstated; or •
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 noncompliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below: •
We obtained an understanding of the legal and regulatory frameworks that are applicable to the University and the sector in which it operates. We determined that the following laws and regulations were most significant: The Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102), FEHE SORP 2019, Further and Higher Education Act 1992, Higher Education and Research Act 2017, OfS Accounts Direction (October 2019), Relevant OfS regulatory notices and advices, The Higher Education Code of Governance and The Data protection Act 2018;
•
We understood how the Group and Parent University is complying with these legal and regulatory frameworks by making inquiries of management and those charged with governance. We enquired of management and those charged with governance whether there were any instances of non-compliance with laws and regulations, or whether they had any knowledge of actual or suspected fraud. We corroborated the results of our enquiries through our review of relevant committee minutes and through our legal and professional expenses review;
•
We assessed the susceptibility of the University’s financial statements to material misstatement, including how fraud might occur and the risk of material override of controls. Audit procedures performed by the engagement team included:
The Group and Parent University’s expenditure on access and participation activities for the financial year has been materially misstated.
Responsibilities of Governing Body for the financial statements As explained more fully in the Board of Governors’ Responsibilities Statement, 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 determine 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 intends to liquidate the group or parent University or to cease operations, or has no realistic alternative but to do so.
◊
Identifying and assessing the design effectiveness of certain controls management has in place to prevent and detect fraud
◊
Challenging assumptions and judgements made by management in its significant accounting policies
BATH SPA UNIVERSITY 56
•
•
◊
Identifying and testing journal entries, with a focus on unusual journals with specific risk characteristics and large value journals.
◊
Review of business register of interest and the general ledger for any undisclosed related party transactions
◊
Inspecting the Board of Governors and other committee minutes
◊
Assessing the extent of compliance with the relevant laws and regulations as part of our procedures on the related financial statement item
These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it; Assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team’s. ◊
Understanding of, and practical experience with audit engagements of a similar nature and complexity through appropriate training and participation
◊
Knowledge of the higher education sector
◊
Understanding of the legal and regulatory requirements specific to the University including: Ð
The provisions of the applicable legislation
Ð
Guidance issued by the OfS.
•
The team communications in respect of potential non-compliance with relevant laws and regulations, including the potential for fraud in revenue through manipulation of income and management override of controls; and
•
In assessing the potential risks of material misstatement, we obtained an understanding of:
•
The University’s operations, including the nature of its income and expenditure and its services and of its objectives and strategies to understand the classes of transactions, account balances, expected financial statement disclosures and business risks that may result in risks of material misstatement.
57
ANNUAL REPORT AND FINANCIAL STATEMENT
•
The University’s control environment, including: the policies and procedures implemented by the University to ensure compliance with the requirements of the financial reporting framework and relevant laws and regulations.
•
The policies and procedures implemented by the University to ensure compliance with the requirements of the financial reporting framework and relevant laws and regulations
•
The adequacy of procedures for authorisation of transactions and review of management accounts
•
Procedures to ensure that possible breaches of laws and regulations are appropriately resolved.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/ auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report This report is made solely to the University’s Board of Governors, as a body, in accordance with paragraph 13(2) of the University’s articles of government. Our audit work has been undertaken so that we might state to the University’s 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 University’s Board of Governors as a body, for our audit work, for this report, or for the opinions we have formed.
Grant Thornton UK LLP Statutory Auditor, Chartered Accountants Birmingham Office 21 December 2023
BATH SPA UNIVERSITY 58
STATEMENT OF ACCOUNTING POLICIES
59
ANNUAL REPORT AND FINANCIAL STATEMENT
BATH SPA UNIVERSITY 60
Basis of preparation These financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP): Accounting for Further and Higher Education 2019 and in accordance with Financial Reporting Standards (FRS 102). The University is a public benefit entity and therefore has applied the relevant public benefit requirement of FRS 102. The financial statements are prepared in accordance with the historical cost convention (modified by the revaluation of fixed assets and derivative financial instruments).
Going concern The Executive and Board of Governors of Bath Spa University have a duty to assess and satisfy themselves that it is appropriate that the financial statements have been prepared on a going concern basis. The five-year plan signed off by the Board in July 2023 forecasts a financially sustainable position and performance for the next five years. The basis for our assessment is this five year plan updated for the enrolment information as of November 2023. This going concern assessment is done to stress test some of these assumptions and forecasts over a 12 month period from signing the accounts (so to December 2024). Under the FRC guidance the University has utilised the selfassessment questionnaire that provides a framework to assist the Board in determining whether it is appropriate to adopt the going concern basis for preparing financial statements, and, in making balanced, proportionate and clear disclosure. The activities which present greatest financial uncertainty to the university are student recruitment and inflation impacts on pay and non-pay including utilities. Although considered highly unlikely we have also considered a change to the OfS funding regime in our going concern stress testing. While other risks exist, they are either not significant by comparison in terms of their financial magnitude or not expected to impact within the next 18 months. Potential favourable events are discounted for the purposes of this analysis and assessment although some would be likely to occur alongside any negative impacts. Given that our loans are unsecured and also of a level well within the range that could be repaid almost immediately by liquidating our investments with HSBC, the risks considered for the purposes of the going concern assessment are those which impact operating cash after financing payments. The result of stress testing has indicated that the University could withstand considerable adverse movement in the areas of uncertainty, giving comfort over liquidity for the year and 2023/24 and into 24/25. Obviously, these scenarios would create significant challenge for the University in maintaining the full range and quality of our educational activities, but the results show that the University could sustain operational and financial viability even in these circumstances of exceptional stress.
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ANNUAL REPORT AND FINANCIAL STATEMENT
Based on information and knowledge available to the Board in carrying out this review the Board has a reasonable expectation that the University has adequate resources to continue in operational existence for the foreseeable future. For this reason, the Board continues to adopt the going concern basis for preparing the accounts.
Basis of consolidation The consolidated financial statements include the University and all its subsidiaries for the financial year to 31 July 2023. The results of subsidiaries acquired or disposed of during the period are included in the consolidated statement of income and expenditure from the date of acquisition or up to the date of disposal. Intra-group transactions are eliminated on consolidation. The consolidated financial statements do not include the income and expenditure of the Students’ Union as the University does not exert control or dominant influence over policy decisions. The one remaining subsidiary of the University is Bath Spa U Limited which is now a Dormant Company. Former subsidiary, Summix LRB Developments Ltd has not traded in the year and was dissolved on 25 July 2023. The University’s commercial activities had in past years gone through the subsidiary, Bath Spa Venues Ltd, but for the year ended 31 July 2023 these all went through the University itself and the non trading Bath Spa Venues Ltd was dissolved on 29 August 2023.
Income recognition Income from the sale of goods or services is credited to the Consolidated 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. Fee income is stated gross of any expenditure which is not a discount and credited to the Consolidated Statement of Comprehensive Income and Expenditure over the period in which students are studying. Where the amount of the tuition fee is reduced, by a discount for prompt payment, income receivable is shown net of the discount. Bursaries and scholarships are accounted for gross as expenditure and not deducted from income. Investment income is credited to the statement of income and expenditure on a receivable basis. Funds the University receives and disburses as paying agent on behalf of a funding body are excluded from the income and expenditure of the University where the University is exposed to minimal risk or enjoys minimal economic benefit related to the transaction.
Grant funding
Grant funding including funding council block grant, research grants from government sources, grants (including research grants) from non-government sources are recognised as 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.
•
Avon Pension Fund assets are measured using market value. 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. The increase in the present value of the liabilities of the University’s defined benefit pension scheme expected to arise from employee service in the period is charged to operating surplus. The expected return of the scheme’s assets and the increase during the period in the present value of the scheme’s liabilities arising from the passage of time are included in other finance income/charges. Actuarial gains and losses are recognised in the statement of total recognised gains and losses. The pension scheme’s deficit is recognised in full and presented on the face of the balance sheet.
Donations and endowments Non exchange transactions without performance related conditions are donations and endowments. Donations and endowments with donor imposed restrictions are recognised in income when the University is entitled to the funds. Income is retained within the restricted reserve until such time that it is utilised in line with such restrictions at which point the income is released to general reserves through a reserve transfer. Donations with no restrictions are recognised in income when the University is entitled to the funds. Investment income and appreciation of endowments is recorded in income in the year in which it arises and is categorised according to the terms of restriction applied to the individual endowment fund.
The present value of the Local Government Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 21, will impact the carrying amount of the pension liability. Furthermore, a roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 2019 has been used by the actuary in valuing the pensions liability at 31 July 2022. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability.
There are four main types of donations and endowments identified within reserves: Restricted donations—the donor has specified that the donation must be used for a particular objective. 2. Unrestricted permanent endowments—the donor has specified that the fund is to be permanently invested to generate an income stream for the general benefit of the University. 3. Restricted expendable endowments—the donor has specified a particular objective other than the purchase or construction of tangible fixed assets, and the University has the power to use the capital. 4. Restricted permanent endowments—the donor has specified that the fund is to be permanently invested to generate an income stream to be applied to a particular objective.
1.
Capital grants Government capital grants are recognised in income over the expected useful life of the asset. Other capital grants are recognised in income when the University is entitled to the funds subject to any performance related conditions being met.
Accounting for retirement benefits Retirement benefits to employees of the University are provided by the Teachers’ Pension Scheme, the Avon Pension Fund, and Aviva:
•
Avon Pension Fund
•
Aviva The UCRSS administered by Aviva is used for any staff who choose to opt-out of either the TPS or LGPS. This scheme is a defined contributions scheme with both employee and employer contributions paid over monthly for investment on behalf of the member. Employer contributions are charged to the Income and Expenditure account in the year to which they are processed via the payroll.
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.
Teachers’ Pension Scheme
Operating leases
Employers’ pension contributions to the Teachers’ Pension Scheme are charged to the income and expenditure account in the year to which the salaries on which they are payable relate.
Costs in respect of operating leases are charged on a straightline basis over the lease term. Any lease premiums or incentives are spread over the minimum lease term.
BATH SPA UNIVERSITY 62
Fixed assets
Investments
Fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Certain items of fixed assets that had been revalued to fair value on or prior to the date of transition to the 2015 FE HE SORP, are measured on the basis of deemed cost, being the revalued amount at the date of that revaluation.
Non-current asset investments are held on the Balance Sheet at Fair Value Investments in subsidiaries are carried at cost less impairment in the University’s accounts. Current asset investments are held at fair value with movements recognised in the Surplus or Deficit.
Where parts of a fixed asset have different useful lives, they are accounted for as separate items of fixed assets.
Land and buildings Tangible fixed assets taken over from Avon County Council at 1 April 1989 are stated at a valuation adjusted for depreciation. Tangible fixed assets acquired since 1 April 1989 are stated at cost less accumulated depreciation.
Anything on a deposit account which needs more than 90 days notice is classified as a Fixed Asset Investment.
Stock Stock is held at the lower of cost and net realisable value, and is measured using an average cost formula.
Cash and cash equivalents
The transitional rules set out in FRS 15 Tangible Fixed Assets were adopted as at 31 July 2000 and book values of property assets were frozen accordingly.
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.
The transitional rules set out in FRS 102 were adopted as at 31 July 2016 and fair value has been used for deemed cost for properties measured at fair value.
Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash with insignificant risk of change in value.
Equipment costing less than £10,000 per individual item or group of related items is written off in the year of acquisition. (In previous years this threshold was £2,500.)
Anything on a deposit account which needs more than 90 day’s notice is classified as a Fixed Asset Investment.
Depreciation is provided on cost or revalued amounts in equal annual instalments over the estimated lives of the assets. The rates of depreciation are as follows: Building improvements 10% per annum Music equipment 20% per annum Motor vehicles 25% per annum Equipment, fixtures and fittings 25% per annum Computer software and hardware 331/3% per annum Freehold and leasehold buildings are amortised over their useful economic lives; the typical useful life is considered to be 48 years. The Newton Park estate is held on a 99 year lease that expires in 2044. Freehold land is not depreciated.
Financial instruments The provisions of both section 11 and 12 of FRS102 are applied in full. Basic financial instruments are held at amortised cost using the effective interest method or cost and are subject to an annual impairment review.
Borrowing costs Borrowing costs are recognised as expenditure in the period in which they are incurred.
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ANNUAL REPORT AND FINANCIAL STATEMENT
Inherited liability grant In January 2008 the University received £14.4m from HEFCE as buy-out of inherited liabilities at Corsham Court. This sum is being amortised on a straight-line basis over the remaining 50 years of the Corsham Court lease and will mitigate associated expenditure under the lease covered by the buyout agreement.
Provisions, contingent liabilities and contingent assets Provisions are recognised in the financial statements when: (a) The University has a present obligation (legal or constructive) as a result of a past event; (b) It is probable that an outflow of economic benefits will be required to settle the obligation; and (c) a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is determined by discounting the expected future cash flows at a pre-tax rate that reflects risks specific to the liability. A contingent liability arises from a past event that gives the University a possible obligation whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the University. Contingent liabilities also arise in circumstances where a provision would otherwise be made but either it is not probable that an outflow of resources will be required, or the amount of the obligation cannot be measured reliably.
A contingent asset arises where an event has taken place that gives the University a possible asset whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the University.
•
Contingent assets and liabilities are not recognised in the Balance Sheet but are disclosed in the notes.
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.
Other key source of estimation uncertainty •
Local Government Pension Scheme The present value of the Local Government Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 25, will impact the carrying amount of the pension liability. Furthermore, a roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 2022 has been used by the actuary in valuing the pensions liability at 31 July 2023. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability.
The University receives no similar exemption in respect of Value Added Tax. Irrecoverable VAT on inputs is included in the costs of such inputs. Any irrecoverable VAT allocated to fixed assets is included in their cost. The University’s subsidiaries are liable to Corporation Tax in the same way as any other commercial organisation. Deferred tax is provided 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 more likely than not to be recovered. Deferred tax assets and liabilities are not discounted.
Determined whether there are indicators of impairment of the group’s tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.
•
Depreciation Depreciation is also an uncertainty given the estimation of an assets useful life.
Reserves Reserves are classified as restricted or unrestricted. Restricted endowment reserves include balances which, through endowment to the University, are held as a permanently restricted fund which the University must hold in perpetuity. Other restricted reserves include balances where the donor has designated a specific purpose and therefore the University is restricted in the use of these funds.
Key Accounting judgements and estimates In preparing these financial statements, management have made the following judgements: •
Determined whether leases entered into by the University either as a lessor or a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis. BATH SPA UNIVERSITY 64
FINANCIAL STATEMENTS
For the year ended 31 July 2023
65
ANNUAL REPORT AND FINANCIAL STATEMENT
BATH SPA UNIVERSITY 66
Statement of Comprehensive Income and Expenditure For the year ended 31 July 2023
As at 31 July 2023 Note
As at 31 July 2022
Consolidated
University
Consolidated
University
£’000
£’000
£’000
£’000
INCOME Tuition fees and education contracts
1
125,293
125,293
78,160
78,160
Funding body grants
2
5,811
5,811
4,492
4,492
Research grants and contracts
3
1,501
1,501
1,663
1,663
Other income
4
12,460
12,460
14,178
14,149
Investment income
5
677
677
58
58
Donations and endowments
6
18
18
135
4,306
145,761
145,761
98,686
102,828
54,272
54,272
52,177
51,692
-
-
2,743
2,743
82,843
82,843
39,305
39,750
5,954
5,954
4,159
4,159
1,532
1,532
4,770
4,770
144,601
144,601
103,154
103,113
1,160
1,160
(4,468)
(286)
Total income EXPENDITURE Staff costs
7
Restructuring costs Other operating expenses
9
Depreciation and amortisation Interest and other finance costs
8
Total expenditure Surplus/(deficit) before other gains/losses Gain on disposal of tangible assets
-
-
26,967
26,967
Impairment of asset
10
-
-
-
(4,171)
Gain on investments
2,134
2,134
106
106
Surplus for the year
3,293
3,293
22,605
22,616
Actuarial gain in respect of pension schemes
19,469
19,469
36,487
36,487
Total comprehensive income for the year
22,763
22,763
59,092
59,103
Unrestricted comprehensive income for the year
22,763
22,763
59,092
59,103
Attributable to the Institution
22,763
22,763
59,092
59,103
3,293
3,293
22,605
22,616
Other comprehensive income
Represented by:
Surplus for the year attributable to: University
67
ANNUAL REPORT AND FINANCIAL STATEMENT
Consolidated Statement of Changes in Reserves For the year ended 31 July 2023
Income and expenditure account £’000
Revaluation reserve
Total
£’000
£’000
Balance at 1 August 2021
38,386
22,998
61,384
Surplus from income and expenditure statement
22,616
-
22,616
Actuarial gain on pension fund
36,487
-
36,487
Transfers between revaluation and income and expenditure reserve
10,690
(10,690)
-
Total comprehensive income for the year
69,793
(10,690)
59,103
Balance at 1 August 2022
108,179
12,309
120,487
Surplus from income and expenditure statement
3,293
-
3,293
Actuarial gain on pension fund
19,469
-
19,469
Total comprehensive income for the year
22,763
-
22,763
Balance at 31 July 2023
130,941
12,309
143,250
Revaluation reserve
Total
£’000
£’000
UNIVERSITY
University Statement of Changes in Reserves For the year ended 31 July 2023 CONSOLIDATED
Income and expenditure account £’000
Balance at 1 August 2021
37,986
22,998
60,984
Surplus from the income and expenditure statement
22,605
-
22,605
Actuarial gain on pension fund
36,487
-
36,487
Transfers between revaluation and income and expenditure reserve
10,690
(10,690)
-
Total comprehensive income for the year
69,782
(10,690)
59,092
Balance at 1 August 2022
107,768
12,308
120,076
Surplus from income and expenditure statement
3,293
-
3,293
Actuarial gain on pension fund
19,469
-
19,469
Total comprehensive income for the year
22,763
-
22,763
Balance at 31 July 2023
130,531
12,308
142,839
BATH SPA UNIVERSITY 68
Consolidated and Institution Statement of Financial Position For the year ended 31 July 2023
As at 31 July 2023 Note
As at 31 July 2022
Consolidated
University
Consolidated
University
£’000
£’000
£’000
£’000
NON-CURRENT ASSETS Tangible assets
15
107,914
107,914
109,643
109,643
Investments
16
46,436
46,436
40,106
40,156
154,350
154,350
149,749
149,799
50
50
48
48
CURRENT ASSETS Stock Trade and other receivables
17
55,624
56,036
35,587
35,577
Cash equivalents
18
19,439
19,439
8,259
8,259
15,702
15,702
22,867
22,835
90,815
91,227
66,761
66,719
(70,242)
(70,242)
(45,936)
(45,534)
Net current assets
20,573
20,985
20,824
21,185
Total assets less current liabilities
174,923
175,335
170,573
170,984
20
(27,234)
(27,234)
(29,067)
(29,067)
Pension provisions
23
(3,959)
(3,959)
(20,445)
(20,445)
Other provisions
22
(891)
(891)
(985)
(985)
142,838
143,250
120,076
120,487
-
-
2
2
Income and expenditure reserve
130,529
130,941
107,766
108,177
Revaluation reserve
12,309
12,309
12,309
12,309
142,838
143,250
120,074
120,485
142,838
143,250
120,076
120,487
Bank and cash
Creditors: amounts falling due within one year
Creditors: amounts falling due after more than one year
19
PROVISIONS
TOTAL NET ASSETS Share Capital RESERVES
TOTAL RESERVES
The notes on pages 73 to 84 form part of these financial statements. These financial statements were approved and authorised for issue by the Board of Governors on 13 December 2023 and signed its behalf by:
Jonathan Glasspool Chair 69
ANNUAL REPORT AND FINANCIAL STATEMENT
Susan Rigby Accounting Officer
Consolidated Cash Flow Statement For the year ended 31 July 2023
Year ended 31 July 2023
Year ended 31 July 2022
£’000
£’000
£’000
£’000
Cash flow from operating activities Surplus for the year before tax
3,293
22,605
Adjustment for non-cash items Depreciation
5,954
4,159
Release of Inherited Liability grant
(240)
(240)
Release of Capital Grants
(205)
(335)
Gain on Fixed Asset investments
(2,134)
-
Interest payable Avon pension
674
827
Increase in pension service cost provision
2,181
2,479 6,230
6,890
Changes in Working Capital Decrease/(increase) in stock
2
3
Decrease/(increase) in debtors
(15,166)
(28,908)
Increase/(decrease) in creditors
19,371
31,618
(93)
(274)
(Decrease)/increase in other provisions
4,113
2,439
Adjustment for investing or financing activities Interest received
(677)
(164)
Finance cost of enhanced pension provision
25
12
Interest payable
834
3,931
-
(26,967)
(50)
-
Gain on the sale of tangible assets Capital grant income Net cash inflow from operating activities
132
(23,188)
13,768
8,746
Cash flows from investing activities Interest received
677
164
Finance cost of enhanced pension provision
(25)
(12)
(3,826)
(3,091)
Purchase of tangible fixed assets Summix
-
(4,171)
Purchase of HSBC Investments
-
(40,000)
Proceeds from sales of tangible assets
8
80,191
Capital grants receipts
50
128
Purchase of tangible fixed assets
(3,116)
33,209
Cash flows from financing activities Increase/decrease in short term deposits
(15,335)
8,139
Repayment of Bank Loans
(1,633)
(34,745)
Repayment of Salix Loans
(14)
(33)
Interest paid
(834)
(3,931) (17,816)
(30,570)
(Decrease)/increase in cash and cash equivalents in the year
(7,164)
11,385
Cash and cash equivalents at beginning of the year
22,866
11,481
Cash and cash equivalents at end of the year
15,702
22,867
Total cash and cash equivalents
15,702
22,867
BATH SPA UNIVERSITY 70
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 July 2023
71
ANNUAL REPORT AND FINANCIAL STATEMENT
BATH SPA UNIVERSITY 72
1. Tuition fees and educational contracts Year ended 31 July 2023
Year ended 31 July 2022
Consolidated
University
Consolidated
University
£’000
£’000
£’000
£’000
Full-time home students
112,663
112,663
72,440
72,440
Full-time international students
10,298
10,298
3,566
3,566
Part-time students
2,332
2,332
2,154
2,154
125,293
125,293
78,160
78,160
Total Tuition fees and education contracts
2. Funding body grants Year ended 31 July 2023
Year ended 31 July 2022
Consolidated
University
Consolidated
University
£’000
£’000
£’000
£’000
Office for Students
2,570
2,570
1,723
1,723
Research England
2,286
2,286
1,460
1,460
4,855
4,855
3,183
3,183
112
112
492
492
Office for Students
272
272
129
129
Research England
126
126
-
-
-
112
112
399
399
241
241
240
240
240
240
Office for Students
35
35
257
257
Research England
132
132
167
167
257
257
Office for Students
32
32
Research England
6
6
78
78
38
38
78
78
5,811
5,811
4,492
4,492
Recurrent grants:
Hardship funding Other grants:
Department for Education Inherited liability grant (Corsham Court) Deferred capital grants (Buildings):
Deferred Capital Grants (Equipment):*
Total funding body grants
* amounts released to income and expenditure from the Balance Sheet.
3. Research grants and contracts Year ended 31 July 2023
Year ended 31 July 2022
Consolidated
University
Consolidated
University
£’000
£’000
£’000
£’000
Research councils
629
629
942
942
Others
872
872
721
721
Total Research Grants and Contracts
1,501
1,501
1,663
1,663
4. Other income Year ended 31 July 2023
Year ended 31 July 2022
Consolidated
University
Consolidated
University
£’000
£’000
£’000
£’000
Residences, catering and conferences
6,323
6,323
8,807
8,807
Others
6,136
6,136
5,342
5,342
12,460
12,460
14,149
14,149
73Total ANNUAL REPORT AND FINANCIAL STATEMENT other income
5. Interest Receivable Year ended 31 July 2023
Year ended 31 July 2022
Consolidated
University
Consolidated
University
£’000
£’000
£’000
£’000
677
677
58
58
Interest earned on bank deposits
6. Donations Year ended 31 July 2023
Year ended 31 July 2022
Consolidated
University
Consolidated
University
£’000
£’000
£’000
£’000
Donations with restrictions
-
-
75
75
Unrestricted donations
18
18
4,232
4,232
Total donations
18
18
4,306
4,306
7. Staff costs Year ended 31 July 2023
Year ended 31 July 2022
Consolidated
University
Consolidated
University
£’000
£’000
£’000
£’000
Salaries
40,870
40,870
36,450
36,450
Social Security Costs
4,228
4,228
4,121
4,121
Pension Costs
9,036
9,036
11,121
11,121
Sub Total
54,134
54,134
51,692
51,692
Restructuring Costs
138
138
2,743
2,743
Total Staff Costs
54,272
54,272
54,434
54,434
Emoluments of the Accounting Officer and Chief Executive Information regarding the Vice-Chancellor is set out below.
The remuneration of the Vice-Chancellor is agreed by the Remuneration Committee, entirely composed of lay members. In making their decision the Committee reviews data on Vice-Chancellor salaries from CUC and UCEA, and considers the differential between the VC’s salary and the lowest and the average academic salary at the University. They also discuss the current levels of uncertainty and change in the higher education sector, and consider concerns about the escalation of pay in the sector, and also take cognisance of Bath Spa’s relatively small size, but also the university’s extensive change and development programme. The annual report of the Remuneration Committee can be found at: www.bathspa.ac.uk/about-us/governance/board-ofgovernors/remuneration/ The current salary of the Vice-Chancellor is detailed on our website and for this financial year was a base pay of £226,000 with an additional payment of £53,000 which she has elected to receive as payment in lieu of pension. The total emoluments of the Accounting Officer and Chief Executive, Professor Susan Rigby, was as follows:
Total Remuneration of the Head of the University Year ended 31 July 2023
Year ended 31 July 2022
£’000
£’000
Salary
226
216
Pension Allowance
53
41
279
257
BATH SPA UNIVERSITY 74
7. Staff costs (continued) Professor Sue Rigby’s basic salary is 6.1 times the median pay of staff (21/22: 6.3 times), where the median pay is calculated on a full time equivalent basis for the salaries paid by the provider to its staff. The total remuneration of 7.1 times the median total remuneration of staff (21/22 7.5 times), where the median total remuneration is calculated on a full time equivalent basis for the total remuneration by the provider to its staff. The University has carefully reviewed the financial data available in respect of agency salaries and considers it is both extremely difficult and not cost-effective to determine a robust annual salary for each worker engaged on an agency basis. For these reasons the university has decided not to include the agency salaries in the pay ratio calculations.
Average staff numbers by major category Year ended 31 July 2023
Year ended 31 July 2022
FTE
FTE
Full time academic staff
368
383
Part time lecturers
62
55
Technicians
41
51
Support staff - administration (inc casuals)
396
331
Support staff - manual workers
99
103
966
923
Year ended 31 July 2023
Year ended 31 July 2022
£’000
£’000
Salary
1,218
1,166
Employer's NIC and Employer's Pension
384
346
-
190
1,602
1,702
Year ended 31 July 2023
Year ended 31 July 2022
10.2
10.0
Key Management Personnel Remuneration
Loss of office
FTE
Key Management Personnel are those persons having authority for planning, directing and controlling the activities of the University. During the year ended 31 July 2023, this included the Vice-Chancellor, Pro-Vice Chancellor External Affairs, ProVice Chancellor Research, Director of Human Resources, University Secretary, Pro-Vice Chancellor SE, Pro-Vice Chancellor Academic Planning, Pro-Vice Chancellor Finance & infrastructure, Vice Provost. Chief Financial Officer, Pro-Vice Chancellor Partnerships.
Remuneration of higher paid staff (Not including Head of University) Year ended 31 July 2023
Year ended 31 July 2022
£100,001 - £105,000
2
-
£115,001 - £120,000
1
-
£125,001 - £130,000
1
1
£150,001 - £155,000
-
1
8. Interest payable and other finance charges Year ended 31 July 2023
Loan Costs Bank fees/charges Net Cost on Pension Scheme Finance cost of enhanced pension provision 75Total ANNUAL REPORT AND FINANCIAL STATEMENT interest payable and other finance charges
Year ended 31 July 2022
Consolidated
University
Consolidated
University
£’000
£’000
£’000
£’000
834
834
911
911
-
-
3,020
3,020
674
674
827
827
25
25
12
12
1,532
1,532
4,770
4,770
9. Analysis of total expenditure by activity 2022
Staff costs
Other operating expenses
Depreciation
Interest payable
Total
£’000
£’000
£’000
£’000
£’000
%
Academic departments
28,943
3,004
90
-
32,038
31%
Academic services
5,762
5,168
412
-
11,342
11%
Research grants and contracts
1,064
829
8
-
1,901
2%
537
1,477
679
-
2,692
3%
General education expenditure
2,467
20,809
13
-
23,290
23%
Premises
2,716
5,064
2,943
3,931
14,654
14%
Administration
10,759
2,519
8
839
14,125
14%
2,151
842
7
-
2,999
3%
36
38
-
-
74
0%
54,434
39,750
4,160
4,770
103,113
100%
Staff costs
Other operating expenses
Depreciation
Interest payable
Total
£’000
£’000
£’000
£’000
£’000
%
Academic departments
28,719
3,740
22%
6,169
5,496
11,665
8%
Research grants and contracts
845
1,023
1,868
1%
Residences, catering and conferences
729
725
1,453
1%
General education expenditure
2,872
55,347
58,219
40%
Premises
3,601
8,064
-
32,459
Academic services
-
11,665
8%
Administration
8,675
6,727
5,954
1,532
22,888
16%
Staff and student services
2,612
1,679
3%
42
-
4,291
51
-
93
0%
54,272
82,843
5,954
1,532
144,601
100%
Residences, catering and conferences
Staff and student services Other expenses
2023
Other expenses
Total External Audit fees paid in 22/23 were £79,000 (21/22 £61,000). General Educational Expenditure includes Franchise Fee Payments to our Educational Partners.
10. Profit on sale
The University sold a major asset, Green Park House in January 2022 making a profit of £26,967,004 before the early redemption penalty on redeeming the loan. There has been no equivalent sale in 2023. Consolidated and University Year ended 31 July 2023
Year ended 31 July 2022
£’000
£’000
Sale Proceeds
-
81,969
Fees and associated costs
-
(1,778)
Net Book Value disposed of
-
(53,224)
-
26,967
BATH SPA UNIVERSITY 76
11. Taxation
The University, having charitable status, is liable to UK Corporation Tax only on activities which are additional to its principal educational activities. The University’s activities did not give rise to any significant taxable profit.
12. Access and participation
Year ended 31 July 2023
Year ended 31 July 2022
£’000
£’000
Access investment
1009
916
Financial support
1079
1037
Disability support
719
700
Research and evaluation
83
55
2,890
2,708
Included above are staff costs already accounted for in overall staff costs figures shown at note 7, as follows: Year ended 31 July 2023
Year ended 31 July 2022
£’000
£’000
Access investment
835
594
Financial support
0
-
Disability support
562
588
Research and evaluation
73
45
1,470
1,227
The University’s Access and Participation Plan can be found on the University’s website.
13. Governors’ expenses Consolidated and University
Governors’ expenses
Year ended 31 July 2023
Year ended 31 July 2022
£’000
£’000
1.3
1.0
The governors, other than the Accounting Officer, did not receive any payment from the institution other than the reimbursement of travel and subsistence expenses incurred in the course of their duties.
14. Teacher Training bursaries
Consolidated and University
Funds received Disbursed to students Balance due (from)/to DfE at 31 July 2023
Year ended 31 July 2023
Year ended 31 July 2022
£’000
£’000
671
1,523
(682)
(1,419)
(11)
104
Teacher training bursaries are available solely for students; the University acts only as paying agent. The grants and related disbursements are therefore excluded from the statement of comprehensive income and expenditure. The figures decreased from 2020/21 due to change in the model of providing teacher training, moving more into the Teach First and SCITTS model of provision.
77
ANNUAL REPORT AND FINANCIAL STATEMENT
15. Tangible assets Year ended 31 July 2023
Year ended 31 July 2022
£’000
£’000
Freehold land and buildings
51,617
49,610
Leasehold land and buildings
54,124
53,373
317
-
1,431
-
Plant and machinery
75
-
Building improvements
-
4,276
Fixtures and fittings and vehicles
-
1,704
107,565
108,962
349
681
107,914
109,642
Equipment, furniture and fittings IT
Total tangible assets Assets under construction Total tangible assets and work in progress
Consolidated and University Freehold land and buildings
Leasehold land and properties
Equipment, furniture and fittings
IT
Plant and machinery
Building improvements
Fixtures and fittings, and vehicles
Assets in course of construction
Total
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
Valuation
10,638
5,551
-
-
-
-
-
-
-
Cost
41,614
65,158
-
-
-
-
-
-
-
At 1 August 2022
52,252
70,709
-
-
-
19,894
15,909
681
159,445
Additions in the year
2,225
284
284
996
58
-
-
349
4,226
Reclassification
1,727
10,804
35
2,162
118
(12,303)
(2,543)
-
-
Reclassification from WIP
169
-
-
511
-
-
-
(681)
-
-
-
-
-
-
(7,592)
(13,365)
-
(20,957)
Valuation
10,638
5,551
-
-
-
-
1,267
-
17,456
Cost
45,766
76,246
319
3,669
176
(0)
(1,267)
349
125,258
At 31 July 2023
56,404
81,797
830
3,158
176
(0)
0
349
142,714
Disposed of on migration
Consolidated and University Freehold land and buildings
Leasehold land and properties
Equipment, furniture and fittings
IT
Plant and machinery
Building improvements
Fixtures and fittings, and vehicles
Assets in course of construction
Total
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
At 1 August 2022
2,643
17,336
-
-
-
15,619
14,205
-
49,802
Charge in the year
1,485
3,557
200
665
47
-
-
-
5,954
658
658
6,781
313
1,062
54
(7,445)
(1,422)
-
1
Disposed of on migration
-
-
-
-
-
(8,174)
(12,783)
-
20,957
At 31 July 2023
5,786
27,674
513
1,727
101
(0)
(0)
-
34,800
Accumulated depreciation
BATH SPA UNIVERSITY 78
15. Tangible assets (continued) Consolidated and University Freehold land and buildings
Leasehold land and properties
Equipment, furniture and fittings
IT
Plant and machinery
Building improvements
Fixtures and fittings, and vehicles
Assets in course of construction
Total
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
At 1 August 2022
49,610
53,373
-
-
-
4,276
1,704
681
109,642
At 31 July 2023
51,618
54,123
317
1,431
75
-
-
349
107,914
Carrying amount
The categories of “building improvements” and “fixtures, fittings and vehicles” are no longer being used therefore the assets within these categories have been moved out and into the relevant category. This is just a presentational change, the value and useful life of the assets have not been changed.
16. Non current investments INVESTMENTS HELD WITH HSBC PRIVATE BANK
Moderate
Growth
Dynamic
Total
£
£
£
£
At 1 August 2021
-
-
-
-
Invested July 2022
10,000
20,000
10,000
40,000
37
53
16
106
10,037
20,053
10,016
40,106
Revaluation gain year to 31 July 2022 At 1 August 2022 Revaluation gain year to 31 July 2023 At 31 July 2023
350
1,068
715
2,134
10,387
21,121
10,731
42,240
PLUS DEPOSITS WHERE FUNDS ARE ON OVER 90 DAYS NOTICE
Total £
Santander 10140987 95 Day Notice
4,155
HSBC KRR
28
Santander 10577521 180 Day Notice
28 46,436
17. Trade and other receivables - amounts falling due within one year Year ended 31 July 2023
Year ended 31 July 2022
Consolidated
University
Consolidated
University
£’000
£’000
£’000
£’000
Trade debtors
52,305
52,717
31,717
31,710
Other debtors
125
125
45
42
Amounts owed by subsidiaries
71
71
409
409
Prepayments and accrued income
3,123
3,123
3,416
3,416
Total trade and other receivables
55,624
56,036
35,587
35,577
The increase in Trade Debtors year on year is due to the timing of June 2022 intake at Bath Spa London and the three main partnerships where the full tuition fee invoice is raised at time of enrolment and we have seen a big increase in students year on year due to the increases in Partnership volumes. No debtors were due after more than one year.
18. Cash equivalents Year ended 31 July 2023
Cash equivalents 79 ANNUAL REPORT AND FINANCIAL STATEMENT
Year ended 31 July 2022
Consolidated
University
Consolidated
University
£’000
£’000
£’000
£’000
19,439
19,439
8,259
8,259
19. Creditors - amounts falling due within one year Year ended 31 July 2023
Year ended 31 July 2022
Consolidated
University
Consolidated
University
£’000
£’000
£’000
£’000
Bank loans
1,712
1,712
1,647
1,647
Trade creditors
2,821
2,821
1,614
1,614
Taxation and social security
2,047
2,047
387
387
Other creditors
5,646
5,646
4,100
3,712
Accruals and deferred income
57,621
57,621
37,469
37,455
Corsham Court Inherited Liability Grant
240
240
240
240
Deferred capital grant
155
155
479
479
70,242
70,242
45,936
45,534
Total - creditors - amounts falling due within one year
20. Creditors - amounts falling due after more than one year Year ended 31 July 2023
Corsham Court Inherited Liability Grant Deferred capital grants Bank loans
Consolidated
University
Consolidated
University
£’000
£’000
£’000
£’000
10,440
10,440
10,680
10,680
2,119
2,119
1,950
1,950
14,675
14,675
16,387
16,387
-
-
50
50
27,234
27,234
29,067
29,067
Investment in subsidiary Total - creditors - amounts falling due after more than one year LOAN SUMMARY
Year ended 31 July 2022
Year ended 31 July 2023
Year ended 31 July 2022
< 1 Year
> 1 Year
Total
< 1 Year
> 1 Year
Total
£’000
£’000
£’000
£’000
£’000
£’000
Lloyds loan one
714
2,500
3,214
714
3,214
3,929
Lloyds loan two
485
6,171
6,656
453
6,656
7,109
Lloyds loan three
498
5,997
6,495
466
6,495
6,961
1,697
14,668
16,366
1,633
16,366
17,999
14
7
21
14
21
36
1,712
14,675
16,387
1,647
16,387
18,035
Salix Finance (solar panels financing)
Lloyds loan one In June 2013 the University drew down a £10m EIB loan, being part of a £30m loan facility with Lloyds Bank PLC. The EIB loan is repayable in quarterly instalments commencing June 2013 and ending May 2027. Interest is fixed at 3.268%. Lloyds loan two In February 2014 the University drew down a £10m loan from Lloyds Bank PLC that is repayable in quarterly instalments commencing May 2014 and ending February 2034. Interest is fixed at 5.693%. Lloyds loan three In August 2014 the University drew down a £10m loan from Lloyds Bank PLC that is repayable in quarterly instalments commencing November 2014 and ending February 2034. Interest is fixed at 4.765% Salix Loan The University received an interest free loan from Salix of £71,500 to part-fund the installation of solar panels on one of the University’s residences. The loan is repayable in half-yearly instalments over five years, commencing May 2020 and ending November 2024.
BATH SPA UNIVERSITY 80
21. Deferred capital grants Consolidated and University Buildings
Equipment
Total
£’000
£’000
£’000
At 1 August 2021
2,379
257
2,636
Received in Year
128
-
128
Released to Income and Expenditure in year
(257)
(78)
(335)
At 1 August 2022
2,250
179
2,429
Received in year
50
-
50
Released to Income and Expenditure in year
(173)
(32)
(205)
At at 31 July 2023
2,127
147
2,274
22. Provisions for liabilities Consolidated and University Enhanced pension provision
Landlords Guarantees
Green Park House Dilapidations
Total
£’000
£’000
£’000
£’000
At 1 August 2021
754
505
-
1,259
Interest cost
59
(287)
50
(178)
Used in year
(68)
(29)
At 1 August 2022
745
190
50
985
Benefits paid
(71)
Interest Cost
25 190
50
891
Actuarial gain over year
(47)
At at 31 July 2023
652
(97)
An amount of £652,000 (21/22: £745,000) is included in provisions representing the extent to which the capital cost charged exceeds actual payments made. The provision will be released against the cost to Bath Spa University of enhanced pension entitlements over the estimated life expectancy of each relevant employee. To ensure that there is sufficient residential accommodation for its first year students the University contracts with external providers. In return for guaranteed availability of places the University will pay a proportion of the rent for any unfilled places. The landlords’ guarantee provision reflects the number of study bedrooms for which the University has a potential liability. The cost of such compensation is expected to be £190,000 (21/22: £190,000). The Board of Governors consider that the provision will be paid during the forthcoming year and consequently have not discounted the provision to net present value. In the year ended 31 July 2023 the University paid £0 (21/22 £29,000) in respect of unfilled places from a total of 611 study bedrooms.
81
ANNUAL REPORT AND FINANCIAL STATEMENT
23. Pension costs
The University’s employees belong to two principal pension schemes, the Teachers’ Pension Scheme (TPS) and the Local Government Pension Scheme, Avon Pension Fund (LGPS). One of the University’s subsidiaries. The total pension costs for the period were £9,036,000 (21/22: £9,865,000).
Teachers’ Pension Scheme (TPS)
The Teachers’ Pension Scheme is an unfunded defined benefit scheme. Contributions on a pay-as-you-go basis are credited to the exchequer under arrangements governed by the Superannuation Act 1972. The level of contribution required by Bath Spa University is assessed in accordance with the advice of the government actuary. The assumptions and other data that have the most significant effect on the determination of the contribution levels are as follows: Latest actuarial valuation Actuarial method
31 March 2016 Prospective benefits
Investment returns per annum
2.9% per annum
Salary scale increases per annum
4.2% per annum
Market value of assets at date of last valuation
£196.1 billion
Proportion of members’ accrued benefits covered by the actuarial value of the assets
90%
For the year ended 31 July 2023 the employer contribution was 23.7% (21/22: 23.7%). The total pension cost for the period was £4,645,000 (21/22: £4,489,000). Under the definitions set out in FRS102, the TPS is a multi-employer pension scheme. The University is unable to identify its share of the underlying assets and liabilities of the scheme. Accordingly, the University has accounted for its contributions as if it were a defined contribution scheme.
Avon Pension Fund (LGPS) The University participates in the Avon Pension Fund (LGPS) which is a funded defined benefit pension scheme with the assets held in separate trustee administered funds. The most recent actuarial valuation was as at the 31st March 2022. This set the contribution rates for the period 1 April 2023 to the 31 March 2026. The next triennial valuation will be as at the 31 March 2025 (with new rates effective from the 1 April 2026). The total contribution made for the year ended 31 July 2023 was £3,516,000 (21/22: £5,204,000) of which employers’ contributions totalled £2,347,000 (21/22: £4,211,000) and employees’ contributions totalled £1,169,000 (21/22: £993,000). The agreed contribution rates, excluding deficit recovery payments, was 15.5% for 22/23 and will be17.5% for future years (21/22: 15.5%) for employers, and salary-determined rates for employees ranging from 5.5-12.5%. The following information under FRS 102 is based upon a full actuarial valuation of the Fund at 31 March 2023 updated to 31 July 2023 by a qualified independent actuary. 2023
2022
Rate of increase in salaries
4.2%
4.2%
Rate of increase in pensions in payment
2.8%
2.8%
Discount rate
5.1%
3.5%
Inflation assumption CPI
2.7%
2.7%
The current mortality assumptions include sufficient allowance for future improvements in mortality rates. The assumed life expectations on retirement age 65 are: 2022
2021
Males
22.0
23.1
Females
24.0
25.3
Males
23.2
24.6
Females
25.7
27.3
Retiring today
Retiring in 20 years
BATH SPA UNIVERSITY 82
23. Pension costs - Avon Pension Fund (LGPS) (continued) The assets in the scheme were: 2023
2022
£’000
£’000
Equities
24,127
31,109
Government bonds
14,933
7,457
Other bonds
6,400
5,499
Property
4,561
5,499
Cash
736
226
Other
22,804
25,536
73,561
75,326
The following amounts at 31 July 2023 were measured in accordance with the requirements of FRS102: 2023
2022
£’000
£’000
University estimated share of assets
73,561
75,326
Present value of scheme liabilities
(77,520)
(95,771)
Deficit in the scheme – net pension liability
(3,959)
(20,445)
2023
2022
£’000
£’000
Current service cost
4,528
6,601
Total operating charge
4,528
6,601
2023
2022
£’000
£’000
Expected interest pension scheme assets
2,666
1,150
Interest on pension scheme liabilities
(3,342)
(1,977)
(676)
(827)
2023
2022
£’000
£’000
Actual return less expected return on pension scheme assets
(5,997)
483
Change in financial and demographic assumptions underlying the scheme liabilities
25,444
36,051
Actuarial gain recognised in the statement of comprehensive income and expenditure
19,447
36,534
Analysis of amount charged to staff costs within income and expenditure statement
Analysis of amount that is charged to interest payable
Net interest cost
Analysis of amount recognised in income and expenditure statement
83
ANNUAL REPORT AND FINANCIAL STATEMENT
Movement in deficit during year 2023
2022
£’000
£’000
Deficit in scheme at 1 August
(20,445)
(53,673)
Current service cost
(4,528)
(6,601)
2,347
4,211
Contributions Net interest cost
(676)
(827)
Actuarial gain (loss)
19,447
36,534
Administration expenses
(104)
(89)
Deficit on scheme at 31 July
(3,959)
(20,445)
2023
2022
£’000
£’000
At beginning of the year
95,771
123,645
Current service cost
4,528
6,601
Interest cost
3,342
1,977
Contributions by scheme participants
1,169
993
Actuarial (gain)
(25,444)
(36,051)
Benefits paid
(1,846)
(1,394)
Deficit on scheme at 31 July
77,520
95,771
2023
2022
£’000
£’000
At beginning of the year
75,326
69,972
Expected Interest on scheme assets
2,666
1,150
Actuarial gain / (loss)
(5,997)
483
Administration expenses
(104)
(89)
Contributions by employer
2,347
4,211
Contributions by scheme participants
1,169
993
Benefits paid
(1,846)
(1,394)
At end of the year
73,561
75,326
Analysis of the movement in the present value of the scheme liabilities
Analysis of the movement in the market value of the scheme assets
BATH SPA UNIVERSITY 84
23. Pension costs - Avon Pension Fund (LGPS) (continued) History of experience gains and losses 2023
2022
2021
2020
2019
2018
Amount (£’000)
(5,997)
483
8,174
(2,721)
2,203
2,092
% of scheme assets
-8.2%
0.6%
11.7%
(4.6%)
3.7%
4.0%
Amount (£’000)
8,256
7,752
2,226
(3,821)
-
-
% of scheme liabilities
10.7%
8.1%
1.8%
(3.4%)
-
-
Amount (£’000)
19,447
36,534
2,924
(15,614)
(11,902)
7,242
% of the present value of scheme liabilities
25.1%
38.1%
2.4%
(14.0%)
(12.9%)
10.2%
Difference between the expected and actual return on scheme assets:
Experience gains and losses on scheme liabilities:
Total amount recognised in the income and expenditure statement:
The projected contribution to the defined benefit scheme for the forthcoming year is £3,697,000 (2021/22: £2,469,000). Sensitivity analysis Actuaries appointed by Avon Pension Fund have prepared the following sensitivity analysis that indicates the likely changes to pension liabilities, asset values, costs and returns on assets in the event of changes to key assumptions used by the actuary in determining the valuation of the fund at 31 July 2023. Central
Sensitivity 1 - +0.1% pa. discount rate
Sensitivity 2 - +0.1% pa. inflation
Sensitivity 3 - +0.1% pay growth
Sensitivity 4 - 1 year increase in life expectancy
Sensitivity 5 +1% /- 1% change in 2021/22 investment return
£’000
£’000
£’000
£’000
£’000
£’000
£’000
Liabilities
77,520
70,659
81,195
78,059
79,790
77,520
77,520
Assets
(73,561)
(73,561)
(73,561)
(73,561)
(73,561)
(74,305)
(72,817)
Deficit
3,959
(2,902)
7,634
4,498
6,229
3,215
4,703
Projected service cost
2,518
2,104
2,745
2,518
2,587
2,518
2,518
Projected interest cost
107
(243)
295
135
192
69
145
Aviva The UCRSS administered by Aviva is used for any staff who choose to opt-out of either the TPS or LGPS. This scheme is a defined contributions scheme with both employee and employer contributions paid over monthly for investment on behalf of the member. Employer contributions are charged to the income and expenditure account in the year to which they are processed via the payroll. As at 31 July 2023 there was only one employee in this scheme and the total employer contributions for the period December 22 to July 23 were £2,122.74. At 1 August 2022
23. Analysis of changes in net funds£’000
Cash flows
Other movements
At 31 July 2023
£’000
£’000
£’000
Cash at bank and in hand
22,867
(7,165)
-
15,702
Short-term deposits
8,259
11,180
-
19,439
Net funds
31,126
4,015
-
35,141
85
ANNUAL REPORT AND FINANCIAL STATEMENT
24. Capital commitments
There are no capital commitments to provide for during year ended 31 July 2023.
Capital commitments
2023
2022
£’000
£’000
-
1,680
25. Property lease obligations At 31 July 2023 the University had total rental payable under non-cancellable operating leases for land and buildings as follows:
Property lease obligations
Expiring within one year Expiring from one to five years Expiring after more than five years
23/24
24/25
25/26
26/27
27/28
28/29 and beyond
£’000
£’000
£’000
£’000
£’000
£’000
927
989
989
989
989
122
2023
2022
£’000
£’000
927
562
3,936
-
122
1,007
4,985
1,569
In October 2022, the university took out a lease on a new building for use at its BSU London campus @ £799k per annum.
26. Related party transactions Due to the nature of the University’s operations and the composition of the Board of Governors (being drawn from local public and private sector organisations) it is possible that transactions will take place with organisations in which a member 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. During the year the University provided a block grant to Bath Spa University’s Student Union of £782,468 (21/22: £598,700) enabling it to provide essential services to University students.
BATH SPA UNIVERSITY 86
87
ANNUAL REPORT AND FINANCIAL STATEMENT
BATH SPA UNIVERSITY 87