Integrated Annual report 17-18

Integrated Annual Report 2017-18 Year ended 31 July 2018

CONTENTS VICE-CHANCELLOR FOREWORD

1

WHY INTEGRATED REPORTING?

2

STRATEGIC REVIEW INCORPORATING THE OPERATIONAL REVIEW

4

ABOUT US

5

OUR VALUES: WHAT WE BELIEVE IN OUR UNIVERSITY AT A GLANCE

7

OUR FACULTIES

8

OUR RESEARCH

8

OUR STAKEHOLDERS

13

OUR STRATEGIC PLAN

14-15

KEY PERFORMANCE INDICATORS

15-17

INTEGRATED REPORTING MODEL

19

IDENTIFYING OUR CAPITAL INPUTS AND OUTPUTS

20

BUSINESS EXCELLENCE AND GROWTH – INVESTING IN THE FUTURE

21-24

TEACHING EXCELLENCE

25

STUDENT EXPERIENCE

25

EXCELLING AT TEACHER TRAINING

26

THRIVING INDIVIDUALS

27

MODERN SLAVERY

28

OUR SUPPLY CHAINS

28

SOCIAL JUSTICE

29-30

ENVIRONMENTAL SUSTAINABILITY

31-32

HIGHLIGHTS FROM OUR FACULTIES

33-36

UNDERSTANDING OUR RISKS

37

PUBLIC BENEFIT

38

CHARITY STATUS AND PUBLIC BENEFIT STATEMENT

38

VALUE FOR MONEY AND PROCUREMENT

2

5-6

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39-40

EMPLOYEE INVOLVEMENT

41

EMPLOYEE WELLBEING AND ENGAGEMENT

41

FINANCIAL REVIEW

42

FINANCIAL STRATEGY

43

FINANCIAL ENVIRONMENT

44

FINANCIAL PERFORMANCE

45-48

FUTURE SUSTAINABILITY

49

FINANCIAL KEY PERFORMANCE INDICATORS

50

STATEMENT OF DIRECTORS’ RESPONSIBILITIES IN RESPECT OF THE STRATEGIC 52-54 REPORT, THE DIRECTORS’ REPORT AND THE FINANCIAL STATEMENTS OUR GOVERNORS

56-57

STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL

58

CORPORATE GOVERNANCE

59

LEGAL STATUS

59

RESPONSIBILITIES OF THE BOARD OF GOVERNORS

59-61

MEMBERSHIP AND ATTENDANCE OF COMMITTEE MEETINGS

62

STATEMENT OF INTERNAL CONTROLS

68

GOVERNORS’ LIABILITY ON DISSOLUTION

69

GOING CONCERN

69

INDEPENDENT AUDITOR’S REPORT TO THE BOARD OF GOVERNORS OF THE UNIVERSITY OF WINCHESTER FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2018

70-73

74

STATEMENT OF COMPREHENSIVE INCOME AND EXPENDITURE

75

STATEMENT OF CHANGES IN RESERVES

76

BALANCE SHEET

77

CASH FLOW STATEMENT

78

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES

79-83

NOTES TO ACCOUNTS

84-98

ADMINISTRATIVE INFORMATION

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VICE-CHANCELLOR FOREWORD This has been another big year in the history of our University, marked by us being shortlisted for the Times Higher Education University of the Year.

It was a huge achievement for us to make the shortlist and testament to the excellent work of our staff and students in making Winchester an outstanding institution. We have a bold and distinctive vision to provide world-leading, values-driven higher education: this means everything we do is built upon our deep commitment to our values and aims to make a real difference in the world.

This is our first annual report taking steps towards aligning with the International Integrated Reporting Framework, which describes our integrated thinking and how we combine our capitals to generate value. We are all excited about this new approach, bringing together the numerous ways we add value to our students and the communities we serve. You will see

Professor

evidence of our impact and the business excellence that underpins it, as

Joy Carter CBE DL

reflected in our healthy financial performance. However, the Higher Education

Vice-Chancellor

sector continues to be operating in a climate of political uncertainty. In February 2018, the Prime Minister announced a major review of post-18 education and funding which is due to conclude in early 2019 and the ongoing negotiations on the exit of the UK from the European Union continue.

Against a backdrop of decline across many higher education institutions, we continue to grow our undergraduate student recruitment. The University is in a strong, financially sustainable position, as we enter a new chapter of political and financial uncertainty in the Higher Education sector.

We have grown and enhanced our academic portfolio, extended our partnerships in the UK and across the globe, and continue to invest in our students’ experience, academic endeavours and capital infrastructure.

In particular, in January 2018 we started work on our largest campus development in the 178 year history of the University. This £48m teaching and learning building in the heart of our West Downs Quarter will be a significant and impressive addition to our campus and will be home to our digital futures courses.

We pride ourselves on being a university that goes above and beyond in widening access, and we will continue to invest in widening participation, including £2.9m in non-repayable fellowships, bursaries, scholarships and prizes to support our students. We are sector leading in supporting young people who are traditionally less likely to enter higher education, particularly young carers and children from military families.

I hope that as you read this report, you will get a strong sense of our passion for outstanding education and research underpinned by our strongly rooted values and business excellence.

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WHY INTEGRATED REPORTING? ‘The political debate that is taking place on university financing in the UK is focussing on crude economic inputs and outputs such as class contact time and graduate salary levels. It is currently a very narrow discussion that does not attempt to measure the value of a UK university education to the individual and the society in which they live. A degree is not just a route to high paid employment opportunities. Integrated reporting is an opportunity to discuss the wider value of universities using examples of the comprehensive contribution they make beyond the education of undergraduate students. What we learned from the Advance HE Integrated Thinking and Reporting Project is that we were already engaged in integrated thinking but we did not communicate this effectively in our annual report and accounts. Integrated Reporting is therefore our chance to broaden the political debate on university financing to communicate to wider stakeholders the important and broad contribution made by the Higher Education sector’.

Professor Neil Marriott, Deputy Vice-Chancellor,

During the year we were pleased to

International Integrated Reporting Framework

collaborate with other Higher Education

have not yet been incorporated. We will

(HE) institutions, the Advance HE Leadership

continue to develop the report over the next

Foundation, British Universities Finance

two years to fully embed the methodology of

Directors Group (BUFDG) and the International

Integrated Reporting and Integrated Thinking.

Integrated Reporting Council (IIRC) on the

This report highlights the resources and inputs

start of our journey into Integrated Reporting.

that contribute to our value creation, as well

The University joined the Leadership

as identifying potential risks and opportunities

Foundation pilot in 2017, supported by the

that could affect our ability to create value over

Funding Councils. The aim of this pilot was to

time. We recognise that our students, staff and

review how integrated thinking and reporting

stakeholders have a significant influence on our

can be embedded in Higher Education in

ability to create value and are essential to our

the same manner it has been adopted by

success.

many other sectors. It more fully reflects the integrated relationships and thinking that

The International Integrated Reporting

drives universities forward and supports

Framework was developed by the IIRC and

both academic excellence and financial

we have used this framework as our basis for

sustainability. We have adopted this advanced

developing our integrated reporting. However,

approach to reporting, to make us think

to embed it within our organisation we have

beyond just our financial value and incorporate

re-assigned the ‘capitals’ (financial, intellectual,

non-financial added value for our students,

human, social and relationship, and natural

staff and stakeholders. This has enabled us

and manufactured) around our values and our

to present a more balanced report of how we

commitment to value creation (see pages 19-20

create value in the short, medium and long

for further details).

term. This is our first report on our integrated report journey and some aspects of the

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MATERIALITY In assessing what should be included in our Integrated Report, we applied the principle of materiality. The materiality determination process for the purpose of preparing and presenting our integrated report involves: • Identifying relevant matters based on their ability to affect value creation and our values, as described earlier under ‘Our Integrated Reporting Model’ section; • Evaluating the importance of relevant matters in terms of their known or potential effect on value creation and/or sustainability; • Prioritising the matters based on their relative importance. This includes matters that have, or may have, an effect on the University’s ability to create value over time. Such matters are determined by considering their effect on the University’s strategy, governance, performance or prospects. Such matters related to value creation are discussed at meetings of those charged with Governance, as outlined under our ‘Statement of Corporate Governance and Internal Control’; • Determining the relevant information to disclose about material matters. This process applies to both positive and negative matters, including risks and opportunities and favourable and unfavourable performance or prospects. It also applies to both financial and non-financial information depending on their relative impacts on ability to create value over time.

In considering materiality for our Integrated Report the University considers all known matters at the time of signing the report, such as the political landscape, the student experience, our reputation, our financial sustainability, our environment including the seventeen United Nations Sustainable Development Goals and our values.

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Strategic Review Incorporating the Operational Review

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ABOUT US Since our foundation in 1840, we have been a community committed to making a difference.

Through relentless commitment to our values we challenge convention with compassion, invigorate and shake up the world around us and catalyse change.

Our students are empowered through the rigorous, liberal education we offer in a supportive and creative environment. They grow as whole, confident and successful individuals committed to lives of meaning and purpose, determined to challenge the status quo.

Our research and strategic partnerships focus on making a better, more secure and sustainable world.

We are a university community where people are valued as individuals, where the wellbeing of students and staff is paramount, and our pastoral care is exceptional. We are committed to working globally to ensure equality and justice for all.

We are proud to be a special kind of university, in everything we do we endeavour to help

OUR VALUES: WHAT WE BELIEVE IN

individuals and communities flourish. By putting our values into action and embedding the Sustainability Development Goals, we are being the difference, helping transform society for the

We are passionate about seeing individuals

common good.

and communities flourish. Our values of Compassion, Individuals Matter and Spirituality shape how we do this and why – we believe

The Sustainable Development Goals

academic freedom leads to big ideas which in

(SDGs) are a collection of 17 global

turn lead to social justice, equality and creativity

goals set by the United Nations

for a better world.

General Assembly in 2015. The SDGs are part of Resolution 70/1 of the

COMPASSION

United Nations General Assembly:

Conscious of the kinship that exists between

a universal call to action to end

all life, by embedding the Sustainable

poverty, protect the planet and

Development Goals across our curriculum

ensure that all people enjoy peace

and business functions, we seek to nurture

and prosperity.

compassion and embody social justice for people, animals and the planet. This is a

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supportive, caring and safe place to work and

believe in. Staff and students are supported

study. Staff and students will be supported

to engage with the big and deep questions of

to flourish, encouraged to help others and

life, to bring about change and really make a

empowered to make a difference in the world.

difference. We seek to challenge and develop

We seek to challenge and nurture in all staff

staff and students’ thinking, enabling them to

and students a love and value for all life and the

develop in wisdom for a fulfilling life as well

planet. Our staff and students are empowered

as the knowledge they need for a successful

to change the world for the better, challenge

career. Our staff and students will have the

convention with compassion and stand up for

resilience and resourcefulness to seize the

what they believe to be true.

opportunities and face the challenges of life.

INDIVIDUALS MATTER

OUR ENVIRONMENT

We are passionate about seeing individuals

The University is operating within a Higher

flourish at the University of Winchester.

Education sector that is facing considerable

The dignity and wellbeing of individuals is

challenges and continued change. The

important as are their opinions and views. We

removal of the cap on the number of students

are committed to working globally to ensure

universities can recruit, coupled with the

equality and justice for all. Everyone is welcome

dramatic decline in the number of 18 years olds

here. Staff and students will learn to value

since 2009 and an increase in the number of

and appreciate others, whoever they are and

Higher Education Providers in the UK, has led

whatever their background. You will be listened

to a heavily competitive environment. Within

to; your opinions count. Together, staff and

this context, the University has continued to

students will be supported and challenged to

remain attractive to prospective students and is

reach their full potential. Our staff and students

steadily growing year on year.

are nurtured to embrace equality, diversity and

The sector also faces uncertainty from the

inclusivity to the full. Staff and students are

outcome of Brexit and the Government’s

supported to fight for integrity and justice in a world of compromises and prejudice.

Review of Post-18 Education and Funding.

SPIRITUALITY

and GuildHE, and works closely with both to

We celebrate our Anglican Christian foundation

cement our understanding of the issues and to

and welcome people of all faiths and none. In a

ensure policy developments represent views

world in which religion is often associated with

from across the whole sector, including the

exclusivity and anti-intellectualism, we seek

University of Winchester. Both Brexit and the

to model ways of being religious which are

Funding Review present potential risk to the

inclusive and intellectually robust.

University, both in terms of student recruitment

The University is a member of Universities UK

and funding for teaching and research. All levels We believe that everyone expresses their

of governance within the University are focused

spirituality through a unique collage of values,

on monitoring their development and planning

disciplines and practices. Working and studying

for what may happen as a result.

at the University of Winchester offers a chance to experience and reflect on the creativity, beauty and compassion in life – together, we aim to explore the mystery of life and grow in wisdom and love. Our passion is to see staff and students grow as a whole person. It is safe to try new things here, to stand up for what you

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OUR UNIVERSITY AT A GLANCE FINANCIAL HIGHLIGHTS Total revenue (£m) 2016-17

75

2017-18

79

Operating surplus (£m) 2016-17

5.2

2017-18

2.0

Capital expenditure (£m) 2016-17

4.7

2017-18

12.1 (157% increase)

STAFF HEADCOUNT Academic staff (headcount) 407

2016-17 2017-18

422

Support staff (headcount) 2016-17

524 546

2017-18

STUDENT NUMBERS Total students (full-time equivalents) 6,250

2016-17 2017-18

7

6,373

86%

6%

67%

of students study full-time

are international students

of students are female

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OUR FACULTIES

OUR RESEARCH

We have a wide range of undergraduate and

Our research is driven by the commitment

postgraduate courses delivered across four

to make a difference and our reputation for

faculties, each led by a Dean:

research excellence is growing. We have established four research themes which are

FACULTY OF ARTS:

reflected in Research Centres and projects

encompassing English, creative writing,

across the University:

American studies, performing arts, media

1. Understanding society, culture and the arts

and film.

2. Exploring the past and the world around us FACULTY OF BUSINESS, LAW AND SPORT:

3. Enhancing wellbeing, nurturing the individual

encompassing responsible management and leadership, marketing, event and project

4. Building a sustainable and responsible

management, accounting, finance, economics,

future.

digital futures, law, sport, exercise and health.

We continue to deliver research with impact

FACULTY OF EDUCATION, HEALTH AND SOCIAL CARE:

at regional, national and international levels.

encompassing education studies, liberal arts,

External peers have reviewed our research

teacher development and interprofessional

output prior to the Research Excellence

studies.

Framework (REF) 2021 and the preliminary results indicate a high percentage of work

FACULTY OF HUMANITIES AND SOCIAL SCIENCES:

is recognised internationally, and is classed

encompassing criminology, forensic studies,

grant process enabled a more strategic use

archaeology, anthropology, geography, history,

of funds to maximise the quality of our entry.

politics, animal welfare, psychology, theology,

Our continued progress since the REF 2014 has

religion and philosophy.

strengthened our potential to enter new Units of

as world-leading. A revision of the internal

Assessment in the REF. We were awarded Higher Education Innovation Funding (HEIF) (ÂŁ268,508) which has been used by our Research and Knowledge Exchange (RKE) Centre to significantly develop our knowledge exchange infrastructure, which will be implemented in 2018-19. This will increase the visibility and development of our knowledge exchange activities, which in turn will support our entry into the upcoming Knowledge Exchange Framework (KEF).

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THE £266M ECONOMIC IMPACT

• The University employed 748 full-time equivalent faculty and support staff, approximately 78 per cent of whom live in the region.

A report, launched in June 2018, showed that

• Staff costs amounted to £31.5 million, much of which was spent in the region on groceries, clothing and other household goods and services supporting regional shops and businesses.

the University contributes over £266 million a year to the regional business community. The Economic Value of the University of Winchester shows that more than £203 million a year added income is created by its alumni (the

• As a buyer of good and services, the University spent £26.4 million to support its operations, with expenditure further benefitting many regional suppliers in the region.

impact of the skills acquired by students remaining in the region), £20 million a year by student expenditure, and £42 million a year by university expenditure. The University also

• The net impact of staff and University expenditure in the region (£42.1 million a year) is equivalent to supporting 1,569 average wage jobs.

contributes nearly 10,000 jobs a year into the regional economy.

Speaking about the findings in the report,

• Expenditure of the University’s out-of-region students (£20.8 million a year) is equivalent to supporting 774 average wage jobs.

Steve Brine, MP for Winchester and Chandler’s Ford, said, ‘It is very pleasing to see the economic benefits derived from having a

• An estimated 38 per cent of Winchester graduates remain the region and the accumulated impact of the University’s alumni (£203.7 million a year) employed in the regional workforce is equivalent to supporting 7,591 average wage jobs.

major university in Winchester presented in this report. The University has made a huge impact economically, as well as socially and culturally. As a resident, as well as the local MP, I am excited about the opportunities that the University continues to bring to the city and

The research was conducted by Emsi, an economic modelling and analysis consultancy.

look forward to supporting its work.’

OUR CONTRIBUTION TO THE REGIONAL BUSINESS COMMUNITY (PER YEAR)

The CBI’s Sector Development Director, Mr George McFarlane, who spoke at the launch of the report, added: ‘UK universities are a

TOTAL: £266m

key national asset and make a substantial contribution to prosperity through their research, innovation and teaching. As this report highlights, the University of Winchester

Student spending

£20m

University expenditure

£42m

is a major part of the local economy and plays a critical role in supporting regional growth through its expenditure, investment and the skills of its graduates. As we look to develop a modern industrial strategy, universities have an

Alumni

important contribution to make in helping to drive growth across all UK regions and nations.’

Other key facts and figures emerging from The Economic Value of the University of Winchester, based on 2014-15 data analysis are:

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£203m

@stormcloud_arts

@mollyyringwood

@hannahown

@philipstanier

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SOME HIGHLIGHTS FROM THIS YEAR

AUGUST 2017

SEPTEMBER 2017

• Largest number of first year students take up their places at the University.

• Shortlisted for the Times Higher Education University of the Year 2017 award.

• Carole Parkes, Professor of Global Issues and Responsible Management, was made a special advisor to the United Nations for PRME (the Principles for Responsible Management Education).

• We became the first university to develop links with the Nelson Mandela Museum in South Africa. Our newly signed partnership agreement will see us working with the Museum on joint teaching and research activities, study visits and an exchange programme.

DECEMBER 2017

JANUARY 2018

• Professor A.C. Grayling opens new postgraduate study centre.

• Our groundbreaking ceremony took place to mark the first official day of construction of the University’s new landmark development at West Downs.

• The University Christmas Day Café opened for third year running, offering a place for lonely or vulnerable people to have some food and company.

• Winchester awarded Ofsted ‘Outstanding’ for Teacher Training.

APRIL 2018

MAY 2018

• Vice-Chancellor Professor Joy Carter and President of the Student Union Tali Atvars signed a Sustainability Statement to demonstrate the University’s dedication to creating a more environmentally-friendly future.

• Launch of the Medieval History Research Centre.

• Our first graduating cohort of BA Hons Musical Theatre students performed their final project at Winchester Royal Theatre.

• We hosted the UN Global Compact Network Sustainable Development Goals Roadshow, an event aimed at showing businesses how they could conduct business more responsibly and make the world a better place.

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OCTOBER 2017

NOVEMBER 2017

• Launch of new Centre for Forensic and Investigative Psychology.

• Launch of Centre for Climate Change Education and Communication.

• Partnered with Compassion in World Farming on the Extinction and Livestock Conference, a major international event held in London.

• Awarded two Green Gown awards for innovative sustainability initiatives – including our Gum-tec coffee cups and a climate change album written and performed by students and staff.

FEBRUARY 2018

MARCH 2018

• We signed a partnership agreement with Hampshire Hospitals Foundation Trust that will see both organisations work together to increase research and education opportunities.

• Mercury-Prize-winning indie rock band alt-J formally opened the University’s new state-of-the-art sound recording studios.

• We sealed a partnership deal with the Theatre Royal Winchester.

JUNE 2018

JULY 2018

• The Economic Value of the University of Winchester shows that we contribute over £266 million a year to the regional business community.

• Following us becoming their first UK university partner earlier this year, the University was one of four global partners invited by the Nelson Mandela Museum (based in Qunu, South Africa), to host a conference to mark the 100 year anniversary of Mandela’s birth.

• The University welcomed Dr Abdullah Abdullah, Chief Executive of the Islamic Republic of Afghanistan, who gave a speech to an invited audience of students, staff and members of the local community during a three-day visit to the UK. • We became the first UK university to secure green finance for campus development. We secured a £30m loan from Triodos Bank. Europe’s leading sustainable bank, to fund our new building at West Downs.

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OUR STAKEHOLDERS We have a complex group of stakeholders who are critical to our success. We regularly communicate with these stakeholders to ensure that we meet their requirements. An understanding of our key stakeholders’ perspectives is critical for identifying relevant matters for inclusion in our integrated report. The diagram below identifies some of our partners; however, due to the nature of our organisation, these are continuously changing.

OfS

Ofsted

TRA QAA

Governors

FUNDING BODIES AND REGULATORS

Research councils and funding bodies

UG IT suppliers Marketing and PR

PEOPLE SUPPLIERS

Students

PGR

Parents

PGT

Alumni

Estates suppliers Catering suppliers PROCESSES

CUSTOMERS Conferences

Accommodation providers Business services

LEADERS Trade Unions Partner colleges

SMT

International agencies

Graduate employers

Management structure Student Union Exec

Feeder schools and colleges NUS/Student Union

Environment

SOCIETY COMMUNITY ENVIRONMENT

Conferences/ seminars

Knowledge exchange

Dissemination

Pubic engagement

Public performances

Volunteering Schools-based activities

Charitable sector Hampshire County Council/ Winchester City Council Police NHS

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Public sector

Local residents

Link Gallery Resident meetings

Public lectures

Local Enterprise Partnerships Local businesses Chamber of Commerce

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ARCA

Consultancy

Governors PARTNERS

Sports facilities

INTEGRATED ANNUAL REPORT 2017-18

Inaugural lectures Enterprise lectures

Sports Science

OUR STRATEGIC PLAN

our Institute for Value Studies. Our approach will be distinctive. Our induction, our curriculum,

This sets out who we are and where we are

our approach to teaching and learning, and

going in the context of the big challenges

our relationship with students before they

facing the higher education sector and the

arrive and after they graduate will support and

UK. Beyond that, it is also shaped by the most

challenge them to grow as creative and critical

urgent problems facing humankind as set

thinkers.

out in the UN SDG’s – issues such as social cohesion, climate change, sustainability,

We are in a time of unprecedented geopolitical

population growth and poverty. Throughout

uncertainty as well as changes in higher

our Strategic Plan we ask ourselves: What

education policy. We are very aware of the

are our responsibilities, as a values-driven

challenges of public funding, of demographic

university? How can we maximise the benefits

change, and the increased marketisation of the

of our research for the common good?

university sector driving competition nationally

How well are we equipping our students to

and globally. In response, our strategy is

contribute to society and the economy?

ambitious and infused with the desire to extend our impact. We build on strong foundations

The success and wellbeing of our students

and we are determined to flourish through a

drives everything we do. We value them all and

continuous drive for excellence.

work in partnership with them in creative ways We have three strategic priorities: to Educate,

to shape their education and their future.

Advance Knowledge and Sustain.

We have a long history of equipping students for the professions and for public service. Our

EDUCATE • Our educational experience combines subject specialism, Liberal Arts and vocational training with the nurturing of a love and joy in learning.

graduates leave us with the knowledge, skills, experience and drive to succeed as leaders in whichever field they choose to enter. But more

• We seek to offer excellence in teaching and the very best student experience possible, as evidenced and recognised nationally, underpinned by an unremitting focus on the place of values in higher education.

than that, their time at university will have given them the opportunity to challenge themselves, think critically, and engage with the biggest questions facing humanity. We believe that creative and critical thinkers are essential to

• Our students are taught by research active and professionally engaged staff who work with students to create a personalised and transformational learning experience.

any free society. It is our ambition to nurture graduates who will become the conscience of their communities and places of work by

• We seek to ensure that all who can benefit from a Winchester education will have the opportunity to do so, regardless of their background, and that we should do this with particular regard for marginalised groups.

allowing them to grow in knowledge, resilience, humility and wisdom. Our graduates will leave Winchester with a justified confidence in their own abilities and the strength to stand up for what they believe to be true.

• Our courses will be reviewed regularly and vigorously. We will develop new offerings which meet demand from students and employers and which reflect and build upon our values.

How are we to achieve this ambition?

We will create employment opportunities for our students: to take part in volunteering;

• Enhanced graduate employability is a vital outcome from all of our courses.

to develop entrepreneurship; to engage in research; and in interdisciplinary study through

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• We take spirituality seriously: as a personal

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bring mutual benefits for communities and for the University.

experience; as a wellspring for social transformation; as a subject for academic study; and as a focus for debate within the University and wider society.

KEY PERFORMANCE INDICATORS

ADVANCE KNOWLEDGE • We are rooted in research and knowledge exchange.

Over the next 10 years our Strategic Plan will

• We will continue to build an ever-stronger research environment and seek further recognition for the excellence and creativity of our research in strategically important areas.

drive our journey towards becoming a university

• Research and professional practice underpin the quality of our teaching and the student experience.

most urgent problems facing humankind.

that is internationally-recognised for the way in which we, and our students and graduates, engage with and respond to the biggest and We will measure our progress on this journey through our Key Performance Indicators (KPIs),

• We value all scholarship that impacts positively on lives beyond the University the creation and exchange of knowledge is essential to a strong economy and society within which the University plays a vital role.

which are linked to our Capital inputs and outputs.

Our assessment of progress against our KPIs is based on:

SUSTAIN

Good progess

• Our efforts to reduce carbon emissions

Target/benchmark achieved or on track

has led us to be ranked as one of the top universities for sustainability – our ambition

Acceptable progess

is to become the lowest-carbon university

Further action required

campus in the UK by 2020.

High priority

• Our University has grown significantly in

Requires urgent action

recent years and we have a bold strategic plan to maintain our student numbers and

Financial –> Business Excellence and Growth

continue that growth in both domestic and international markets in the future where

Our Strategic Plan will ensure that the University

possible.

will continue to be financially sustainable.

• Our success is founded on the commitment,

We will continue to innovate to ensure that

professionalism, enthusiasm and talents of

we remain attractive to prospective students,

the individuals who are part of the University

despite an increasing number of alternative

community.

choices. In addition to the Financial KPIs, which are reported in the Financial Review, we will

• Continuous improvement and efficient

measure our progress using the following KPIs:

practices underpin our organisational structures and processes. We will build on our national reputation for organisational

KPI

excellence and continuous improvement.

• We will build on our strong reputation in

Undergraduate applications (market share)

delivering high quality values-driven teacher education and in securing a positive impact on young lives.

• We offer our intellectual and physical resources to serve the common good and to

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Target / benchmark 0.38%

Status

Full-time Undergraduate Enrolments (market share)

0.58%

Entry standards – Average tariff score FT UG under 21 (league table rank – The Complete University Guide)

Improve ranking

Employability Advisers in all of our Faculties.

Research is essential to what we do as a University. Our Strategic Plan will help us to grow our research excellence and ensure that as many academic staff as possible are engaged in Research and Knowledge Exchange (RKE) activities. We will measure our progress using the following KPI: KPI

Intellectual -> Graduate success and research impact

% Full-time academic staff involved in RKE

In addition to the value that they will bring to society more widely, our Strategic Plan will

Target / benchmark

Status

98%

Human -> Thriving Individuals

also increase the number of our graduates who are in employment or further study following

Our Strategic Plan is driven by our desire to see

university. We will measure our progress using

our staff and students flourish. We will continue

the following KPIs, which draw on information

to support and encourage all those with the

from the national Teaching Excellence and

potential to succeed in Higher Education,

Student Outcomes Framework (TEF):

regardless of their background. We will measure our progress using the following KPIs:

KPI

Target / benchmark

TEF metric: All employment or further study of leavers obtaining FT UG qualifications (TEF benchmark)

Meet TEF benchmark

TEF metric: Highly skilled employment or further study Leavers obtaining FT UG qualifications (TEF benchmark)

Meet TEF benchmark

Status KPI

Target / benchmark

Status

Access and Retention Students from low-participation neighbourhoods % (benchmark)

Meet or exceed benchmark (12.3%)

TEF metric: Continuation of fulltime UG entrants % (benchmark)

Meet or exceed benchmark (93.3%)

Social and Relationship -> Social Justice Although the percentages are improving, we are currently slightly below our benchmarks for

Through our Strategic Plan we will continue to

these KPIs. To address this we have established

deliver an excellent student experience and

a new Employability and Further Study Strategy

strong student engagement. We will measure

Group, which is overseeing plans to fully embed

our progress using the following KPIs, which

employability opportunities into the curriculum,

draw on information from the national Teaching

and to provide work or volunteering placements

Excellence and Student Outcomes Framework

for all programmes. We have also appointed

(TEF) and the National Student Survey (NSS):

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KPI

Target / benchmark

Status

Student satisfaction and engagement (from the National Student Survey) TEF metric: NSS % Exceed TEF Agree – The teaching benchmark by on my course (TEF 2% benchmark) TEF metric: NSS % Agree – Assessment and feedback (TEF benchmark)

Exceed TEF benchmark by 2%

TEF metric: NSS %

Exceed TEF

Agree – Academic

benchmark by

support (TEF

2%

benchmark) NSS Overall

Top 25% (above

satisfaction %

34/135)

(ranking)

Natural and manufactured –> Environmental Sustainability Our Strategic Plan sets out our ambition to move from fourth to become the lowest-carbon university campus in the UK by 2020. We will tackle this both operationally, by reducing our own negative impact on the environment, and through education, by including climate change education in all of our programmes. We will measure our progress using the following KPI: KPI

Target / benchmark

Environmental sustainability – Scope 1, 2 and 3 CO2 emissions per m2 (reduction on 2006/07)

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Status

-65% (by 2025)

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INTEGRATED REPORTING MODEL FINANCIAL

INTELLECTUAL

HUMAN

SOCIAL AND RELATIONSHIP

NATURAL AND MANUFACTURED

INPUTS

Student-led Approach

VALUE CREATION

Values in Action

We are a community committed to making passionate about seeing individuals and communities flourish Ethical Resource Management

Outstanding Campus

Teaching and Research Excellence

OUTPUTS

BUSINESS EXCELLENCE AND GROWTH

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GRADUATE SUCCESS AND RESEARCH IMPACT

THRIVING INDIVIDUALS

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ENVIRONMENTAL SUSTAINABILITY

IDENTIFYING OUR CAPITAL INPUTS AND OUTPUTS full potential.

We have used the International Integrated Reporting Council’s (IIRC) generic ‘capitals’

Social and Relationship -> Social Justice

to identify the resources and inputs we have with which to create value and ultimately

Our aim is to have the highest levels of student

make a difference. We are committed to

satisfaction across all our courses. We are

using integrated thinking in all of our decision

proud of the positive impact our students

making.

have in the community through the thousands

Financial –> Business Excellence and Growth

of volunteering hours they put in and the

We are acutely aware of the responsibility we

employees. Ultimately, our aim is to nurture

have to those who choose to invest in us, in

our students to thrive in their careers and

particular our students. We are committed to

further study, to become the conscience of

demonstrating to students how their university

their communities and places of work. This

fees contribute to the delivery of an excellent

capital can be shown across the University

student experience. How we use our money

in many ways, including student satisfaction,

matters too. Ethical investment forms an

our community engagement strategy, staff

integral part of our values. We are mindful of

and students volunteering data, our continued

the need to avoid undermining our beliefs and

engagement with our alumni and our

ethos by providing capital to activities that are

Research Excellence Framework (REF) impact

materially inconsistent with our values. Further

statements.

businesses they support as consumers and

analysis of how we strategically invest our

Natural and manufactured –> Environmental

financial capital is outlined within the Financial Review of these statements.

Sustainability

Intellectual -> Graduate success and research

We are widely recognised as one of the leading

impact

universities for sustainability and carbon

Everything we do is about building, sharing and

campus in the sector, our ambition is to become

creating knowledge through excellent teaching

the lowest-carbon university campus in the

and research. Students are taught by staff active

UK by 2020. This commitment extends into

in research and the professions, who work with

the curriculum, with climate change education

them to create a personal and transformative

being rolled out across all our courses. Aligned

learning experience. Throughout the report,

to this capital are measures covering carbon

intellectual capital will encompass areas

emissions, water usage, and amount of waste

including our academic portfolio, academic

produced by the institution.

management. Currently the fourth most efficient

quality awards, innovative learning and teaching opportunities and research and knowledge exchange.

Human -> Thriving Individuals The dignity and wellbeing of individuals is important as are their opinions and views. We encourage a positive working environment in which both students and staff can reach their

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BUSINESS EXCELLENCE AND GROWTH – INVESTING IN THE FUTURE

hall; a contemplation space; courtyard garden and library. Many of the facilities will be open for members of the local community to enjoy.

The new building boasts cutting-edge sustainability features including:

In January 2017, the University started work on the largest development since its

• Combined heat and power plant

foundation in 1840 of a new learning and

• Heat recovery systems

teaching building at our West Downs Quarter

• Solar photovoltaic panels

on Romsey Road, Winchester. The project also

• Rainwater harvesting

provides a new gateway, linking the University

• Green roof

and the city, creating an impressive addition

• Bat and bird boxes to promote biodiversity

to Winchester’s civic buildings on the main

• And the electricity used to power the building will be bought from renewable sources.

route into the city centre from the South West, where it will be visible from Romsey Road.

Once complete, the building promises to

The £48m new development, which is being

achieve a BREEAM ‘Excellent’ rating, with

built on undeveloped land within the West

‘Outstanding’ credits for energy, contributing to

Downs site next to our grade-II-listed West

the University’s ambition to become the most

Downs Centre, will provide first-class teaching

sustainable higher education institution in the

and learning facilities. It will be home to the

UK.

University’s computer and digital-related

Consideration was also given to the United

degree courses.

Nations seventeen sustainable development

Designed by award-winning Winchester-based

goals, not only climate and environmental goals

architects, Design Engine, the building will

but also in other areas such as ensuring that the

completed in autumn 2019. The contemporary

construction contractors are remunerated at or

design features an art gallery; a 250-seat

above the Governments National Living Wage.

auditorium for performances; a café and food

The West Downs Development: view from Romsey Road (CGI courtesy of Design Engine Architects)

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SUSTAINABLE DEVELOPMENT

ENCOURAGING BIODIVERSITY We’re hoping there’ll be lots of wildlife attracted by a wildflower grassland, open water areas,

EXCELLENT SUSTAINABILITY RATING

and bird and bat boxes that have been planned

Plans for the West Downs development have

in conjunction with the local wildlife trust.

been rated ‘Excellent’ by the recognised assessment method, BREEAM, which assesses

SUSTAINABLE TRANSPORT

the sustainability of buildings.

We’re making it easier for staff, students and visitors to use sustainable transport with

GREEN ROOF

covered cycle areas, showers, and a nearby bus

A 300m2 wildflower roof is planned for the top

stop – while reducing parking spaces.

of the drum shaped auditorium, with native plants that will be beautiful to look at as well as

BUILDING MATERIALS

environmentally friendly.

Many building materials have been carefully selected with reference to the BRE ‘Green

RAINWATER HARVESTING

Guide’. Materials have also been chosen for

Water will be recycled from the Learning

their longevity as well as costs.

Hall roofs to provide flushing water as well as CONSTRUCTION WASTE

irrigation for the trees and plants.

We’re aiming for 90 per cent of the construction SOLAR POWER

waste to avoid going to landfill. Some

Photovoltaic panels will help power the

excavated chalk will be re-used at other

building, making the most of those sunny days

local building sites.

– while still working on the slightly duller ones.

LIMITING NOISE ENERGY EFFICIENT

A noise impact assessment has been carried

The building will be thermally efficient with

out and we have put measures in place to limit

mechanical ventilation and heat recovery

noise pollution.

systems to help minimise the amount of energy that can escape to the outside.

The West Downs Development: the main entrance and the 250-seat Drum Auditorium (CGI courtesy of Design Engine Architects)

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FUNDING In June 2018, the University became the first UK university to secure green finance for campus development. The University secured a £30m loan from Triodos Bank, Europe’s leading sustainable bank, ensuring the development will be completed for the 2019-2020 academic year.

Professor Joy Carter CBE DL, Vice-Chancellor of the University of Winchester said:

‘We think it’s incredibly important that higher education institutions take social responsibility seriously.

That’s why we put our ambition to be the most sustainable university in the UK at the centre of all the decisions we make. It is reflected in everything we do from the courses we offer, to the business decisions we make.

This project – the most ambitious in our history – typifies our commitment to this cause and is made even better by receiving funding from such a like-minded and values-driven bank.’

The West Downs Development: architectural model courtesy of Design Engine Architects The West Downs Development: artistic impression of the new Digital Futures breakout space 23

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TEACHING EXCELLENCE

Engagement with students was central to the review process. Students were fully involved

We have been awarded Silver in the Teaching

in the preparations for the review visit. The

Excellence Framework (TEF). This result

Student Union wrote a submission detailing the

reflects the high quality of our teaching and

experience of being a student at the University

the tireless commitment and hard work of

for the reviewers to read before they visited.

all staff to teaching excellence. We have

Following the review, student representatives

one Principal Fellow, 27 Senior Fellows, 103

were involved in drafting the action plan

Fellows, and two Associate Fellows of the

responding to the report. During their review

Higher Education Academy (now part of

visit, the QAA reviewers also met with a wide

Advance HE) amongst our full-time staff.

selection of current students and recent graduates. A student from another university was on the QAA review panel.

The QAA review commended the enhancement of student learning opportunities. The following features of good practice were identified: • The extensive range of volunteering opportunities available to students, which enhance employability skills and career prospects

The TEF Panel considered the University‘s submission in relation to the TEF criteria and its judgement reflects, in particular, evidence of:

• The widespread opportunities for students to engage in decision making through the Student Academic Council

• Appropriate contact hours, personalised learning through tutorials and buddy schemes that provide high levels of engagement, and commitment to learning and study from students

• The strength of partnerships between staff and students within the Student Fellows Scheme and its effective contribution to enhancing the wider student experience

• An institutional culture that facilitates excellent teaching through professional development schemes, teaching awards, and promotion schemes

• The wide engagement of students and staff in the University’s structured and values-driven approach to the enhancement of students’ learning opportunities

• An institutional approach to developing high quality physical and digital resources, which together with student-based research projects aid and enhance learning and develop study and research skills

STUDENT EXPERIENCE

• Course design and assessment practices that provide sufficient stretch to ensure most students make progress, and acquire knowledge, skills and understanding that are valued by employers, by working closely with industrial partners in course development and approval.

Embedded at the heart of our University

Our teaching provision has been quality assured

nationally from final year students by the

by the Quality Assurance Agency (QAA), and

NSS. The survey was introduced in 2005 and

our commitment to the enhancement of our

is implemented between January and March

teaching has been commended.

each year. In 2017-18, we had a completion

is an ongoing commitment to listen to our student body and respond to their needs in order to provide the best possible student experience. The National Student Survey (NSS) is a helpful lens through which to consider student satisfaction. This feedback is gathered

rate of 75%, which is 5% higher than the sector

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EXCELLING AT TEACHER TRAINING

average. We rank consistently high for student satisfaction, and in 2018, we achieved 84% for overall student satisfaction. The University is very proud to have been ranked in the top 20

Our Initial Teacher Education (ITE) programmes

UK universities for teaching quality, with 87%

were recognised as ‘Outstanding’ by Ofsted in

of our students saying they were satisfied with

2017-18, confirming our position as one of the

the teaching on their course. This is a rise of 26

best providers of teacher education in the

places from the previous year. We are in the

country. The latest report rates Winchester as

top quartile of UK universities for ‘academic

a provider of ‘outstanding’ teacher training in

support with 82% of students highlighting they

England for its provision of both primary and

were happy with the services provided.

secondary ITE.

We are continually looking at ways to improve our students’ experience and in 2017/18 the NSS Strategy Group embarked on an extensive enhancement programme to improve student satisfaction. We focused on three TEF-relevant measures – teaching on my course, assessment and feedback, and academic support. These efforts are reflected in greater student

Our primary teacher training has been rated

satisfaction.

outstanding since 2010. However, this is the first time our secondary teacher training has also

The following courses scored 100% for overall

received the highest accolade. As a values-

student satisfaction in 2017-18:

driven institution, we are especially pleased that Ofsted highlighted that: “respecting values

• Education Studies

– including the promotion of equality and

• Education Studies (Early Childhood)

elimination of discrimination – are enshrined in

• English Language Studies

the University’s vision for teaching training and

• History and the Medieval World

embedded throughout our programmes”.

• Sports Coaching

Our Ofsted report highlighted that we produce “highly professional, confident, enthusiastic

We achieved

teachers who are welcomed into the profession and make a strong contribution from the start of their careers”. The report goes on to highlight that trainee teachers demonstrate exceptionally high levels of personal and professional conduct and have demanding expectations of themselves and of their pupils’ learning and behaviour. The inspectors also praise our staff stating that they are “passionate and enthusiastic” leaders and managers who actively pursue excellence and seek to improve training provision and outcomes. Currently we work in partnership with almost 400 schools to provide excellent work-based placements for our trainee teachers.

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THRIVING INDIVIDUALS

racial, ability and sexual orientation experiences and representations. As an employer and as a service provider, the University continually

INDIVIDUALS MATTER

monitors and updates its policies, processes

“Staff and students will learn to value and appreciate others, whoever they are and whatever their background. Together, we will be supported and challenged to reach our full potential.”

and public sector duties to ensure they are compliant with the protections and obligations found in the Equality Act 2010. This ensures that we have the structures in place to allow us to pursue our equality, diversity and inclusion agenda.

The wellbeing of staff and students is an

We are committed to being a university

important factor and support is offered through

community where all individuals matter, where

our HR and Student Services Departments,

wellbeing is paramount and pastoral care

with occupational health and mental health

is of the highest quality. A place driven by

support. Following staff feedback, the University

compassion, where people, the planet, and all

has made significant changes to its grading

living things are held in the highest regard.

structure to facilitate greater salary progression opportunities.

We are proud to be one of the minority of UK organisations accredited as a Living Wage

We recognise the importance of health and

employer. We have a number of formal

safety in all our undertakings. We rely upon the

recognition schemes in place, including the

initiative, teamwork and active participation of

Chancellor’s Award, Values Award and the

management and workforce to maintain safe

Leadership Award, which are presented to staff

working practices and procedures in order to

at our graduation events.

fulfil our legal obligations under the Health and Safety at Work Act 1974, the Management

The Senior Management Team (SMT) have

of Health and Safety at Work Regulations

an open door policy, with staff encouraged

1999 and all other relevant health and safety

to interact and communicate with senior

legislation in force at any time. In addition to

managers. Our Vice-Chancellor holds regular

fulfilling its legal obligations, the aim of the

open meetings and visits departments and

University is to achieve best health and safety

faculties to help facilitate a two-way flow of

practice in all that we do.

communication.

We continually review health and safety

We actively engage with staff in terms of

provision to ensure the safety of all users of

inclusivity, from the introduction of gender

our facilities and introduce new systems or

neutral toilet facilities to being a Stonewall

upgrades as required. Our Health and Safety

Champion in Higher Education.

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Policy has been developed to ensure the health

As a values-led institution, we delight in

and safety of all employees, students, visitors,

diversity and strive continually to ensure a

other employers and their employees and all

safe and supportive working environment

others who may be affected by activities on

for all staff and students. We are committed

its premises. However, a policy can achieve

to ensuring that the learning environment of

nothing on its own: it is what people do in their

the University reflects a diverse student and

everyday working life that counts. To help

staff body and also reflects a wider learning

achieve that, the Policy establishes a range of

perspective, inclusive of varied gender, cultural,

necessary procedures and practices.

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The safety and security of our students is

not knowingly invest directly or indirectly in

paramount and our 24-hour Site Steward Team

organisations that breach human or animal

provide security, emergency call-out and

rights or that are in breach of the Modern

pastoral care amongst other duties. Our Police

Slavery Act 2015.

liaison officer is also on hand to provide advice

Our Modern Slavery Statement is published on

and support to students and staff.

our website and reviewed on an annual basis.

It can be found at:

MODERN SLAVERY

www.winchester.ac.uk/media/ Modern-Slavery-Statement-17-18.pdf

Our Modern Slavery Statement is designed to satisfy the requirements of Part 6 Section 54 of

OUR SUPPLY CHAINS

the Modern Slavery Act 2015. The University’s Financial Regulations, Procurement Policy and

The University’s supply chains predominantly

Procedures and Ethical Investment Policy state our commitments to the highest standards

fall within the following categories:

of ethical conduct in all our activities, along with making continuous improvements in this

• Estates and facilities management (works, services and goods)

area. The University does not engage in, or

• ICT equipment and services

condone, the practices of human trafficking,

• Professional services

slavery or forced labour.

• Teaching materials

We are committed to improving our business

We are a member of the Southern Universities

practices to combat modern slavery and

Purchasing Consortium (SUPC) which has also

human trafficking and to ensure that we are not

published its own Modern Slavery Statement.

complicit in any human rights violations. We

We channel in excess of 30% of the value

are committed to zero tolerance of slavery and

of our addressable spend through SUPC

human trafficking or child labour practices.

and other agreements arranged by higher

We mitigate the risk of modern slavery

education and public sector purchasing

occurring in our workforce by ensuring that

consortia or frameworks. The particular

directly employed staff are recruited by

business and supply chains which may pose

following robust HR recruitment policies.

particular risks in terms of slavery are in IT

There is a whistleblowing policy in place for

and AV equipment, construction and uniform/

members of staff to raise any concerns about

clothing supplies.

wrongdoing by the University. Staff employed

Our campus services are almost entirely

on a temporary staff basis via agencies are only

in-sourced and the University has made a

recruited through established sources who

commitment to honouring the Living Wage for

can provide assurance that they comply fully

all our employees, full-time or fractional.

with the requirements of legislation relating to the rights and welfare of their candidates and employees.

Our Ethical Investment Policy has been developed to reflect our commitment to ensuring that our investments are not complicit in any human rights violations, in so far as possible. To this extent the University does

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SOCIAL JUSTICE SECTOR-LEADING IN WIDENING PARTICIPATION (WP) Our results (2017/18 )

Better than national performance

WP Category

Access

Success

Progession

UK first degree students

Recruitment

Non-completion (Yr 1)

Attainment (1st or 2:1)

In employment/ study

Male

1,918 (33.7%)

43 (6.3%)

392 (71.1%)

332 (87.1%)

Low Participation Neighbourhood

1,653 (29.0%)

51 (8.6%)

355 (76.3%)

338 (90.9%)

Disability

1,383 (24.3%)

23 (5.6%)

312 (72.7%)

275 (87.3%)

Black, Asian, Minority Ethnic

599 (9.8%)

20 (8.7%)

92 (57.9%)

82 (88.2%)

Mature

755 (13.3%)

19 (7.2%)

199 (82.6%)

141 (90.8%)

The Access and Outreach team launched a new

Access and Outreach

UWin Aspire widening participation programme

In 2017/18, there were over 4,790 engagements

for local primary and secondary schools in 2018.

with young people, including 2,480 primary school children and 2,219 secondary school

We were one of the first universities to offer

students. Of those secondary school

financial support for students seeking asylum.

students attending on-campus events, 88%

Our Sanctuary Award waives the tuition fee

were identified as coming from a Widening

and we now offer a bursary of ÂŁ3,000 per year

Participation (WP) background.

to support the cost of studying for up to five new students each year. We are pleased to

Over the last ten years, 76% of the tracked

report that so far 18 students from 11 countries

participants who were classified in the lowest

have received the Awards. Thirteen will have

social groups (NS-SEC groups 4-8) on entry

graduated by the end of 2018. We are known

to HE, moved into the higher socio-economic

as a pioneer university in this field, frequently

groups 1-3 after leaving HE. The average young

providing workshops and presentations to other

participation rate of Winchester’s tracked cohort

universities and have also contributed to the

from low-participation neighbourhoods was

development of resources which enable them

33% compared to 25% nationally and 20.6%

to learn how to set up and administer such

locally (Hampshire rate in 2014/15).

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Worse than national performance

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Military service children and families The Office for Students (OfS) credited the University for its role in pioneering research and collaborative practice that is driving this new emerging agenda. The Service Children’s Progression (SCiP) Alliance have secured over £65,000 to undertake a collaborative project with National Collaborative Outreach Projects across England to develop an organisational framework, professional development and resources for school staff supporting children from military services.

Supporting at-risk academics.

We are a member of the Council for At-Risk Academics (CARA). We seek to support academics from abroad who are in immediate danger and those who have been forced into exile. We offer solidarity, support to reach a place where they can work in safety and financial and practical help. One such academic joined our staff in the summer of 2018.

Outreach activities We are an exemplar for supporting young adult carers through university and host the National (NNECL). NNECL was instrumental in lobbying for the inclusion of student carers in access and participation agreements.

@philipstanier

Network for the Education of Care Leavers

We offer a Spring School break for 14-19-year olds. This year the session included a CSIthemed day of activities, looking at forensics, policing, criminology and psychology, with students and lecturers attending a murder mystery evening where participants had to put their investigative skills to the test.

Participants also took part in career-based taster sessions. During the visit, they found out more about careers and apprenticeships in outdoor education, whilst developing their team working, communication and leadership skills in a number of team challenges.

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ENVIRONMENTAL SUSTAINABILITY

of sales annually. The introduction of a 25p

We are one of the lowest carbon university

had a dramatic effect, resulting in over 60,000

campuses in the country: since 2008, we have

fewer disposable cups being used since its

reduced our emissions by 45.53 per cent, the

introduction. Sales of drinks in reusable cups

fifth highest reduction in the sector. None

have leapt to an average of 30% as more people

of our waste goes to landfill: any waste that

now bring a reusable mug to avoid paying the

is not recyclable is sent to an energy from

surcharge.

surcharge in November 2016 on all hot and cold drinks purchased in a disposable cup has

waste facility, food waste is sent for anaerobic digestion and waste cooking oil is turned into

The success of the coffee cup initiative has

bio-diesel.

attracted global media attention, including being featured in the prestigious BBC World

Staff and students have established their own

Service programme ‘World Hacks’ – evidence

definition of sustainability for the University in a

that we are world leading in this area. We

joint statement signed by the Vice-Chancellor

have demonstrated that a charge rather than

and the Student Union President in April 2018:

a discount has the most meaningful effect on consumer behaviour, something we have advocated to UK Government. We have been

“To us, sustainability means living in harmony, acting with kindness, and caring for all living things, now and for future generations’’.

fortunate to win three national awards: a Green Gown Award (Food & Drink category), Public Sector Waste Management Initiative at the Awards for Excellence in Waste Management, and Public Sector Campaign of the Year at the

Our recycling rate was 64% in 2016/17, up from

National Recycling Awards. In 2018 we switched

14% in 2009. We achieved zero waste to landfill

from plastic straws to paper straws and we will

in 2013. Any waste that is not recyclable is sent

be introducing a branded reusable water bottle,

to an energy from waste facility and food waste

new drinking fountains and bottle filling stations

is sent for anaerobic digestion.

on campus.

We also climbed 43 places in the 2017 People

SALES OF DRINKS By cup type

and Planet University Green League. Now placed 32nd out of 154 universities, we scored

2015/16

highly for ethical investment, education for

Reusable: 3%

sustainable development and sustainability staffing.

Disposable

CASE STUDY: UNIVERSITY OF WINCHESTER COFFEE CUP INITIATIVE We’ve tackled the use of single-use disposable cups on campus by introducing a bold new

2016/17

pricing structure on takeaway drinks, combined Reusable: 30%

with a giveaway of 6,500 reusable Gum-tec Disposable

mugs to students and staff. For a number of years, we had offered a 25p discount on any drink purchased at our cafés in a reusable cup but this incentive only accounted for 3%

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HIGHLIGHTS FROM OUR FACULTIES

works with performers with learning disabilities

FACULTY OF ARTS

of Arts colleagues. Looking forward, the Faculty

– has seen the Theatre team move its HQ into the University to work closely alongside Faculty is developing public engagement activities for

Thriving Individuals

staff and students. The Faculty will pilot monthly

Professor Marcus Leaning was awarded a

term-time open events (pub talks) to aim at 100+

National Teaching Fellowship, in recognition of

footfall engagement during 2018-19, and will

his outstanding impact on student outcomes

continue to develop cooperative projects with

and the teaching profession in HE. This award

Theatre Royal Winchester and other cultural

particularly concentrated on his work on issues

industry partners.

faced by neuro-diverse students – specifically those with dyslexia and dyspraxia. Marcus has

FACULTY OF EDUCATION, HEALTH AND SOCIAL CARE

also been awarded a Visiting Professorship in Information Literacy and Inter-culturalism at the

Graduate success and research impact

University of Costa Rica.

In September 2017 the Centre for Research into

The new volume of Arthur Conan Doyle’s The

Teaching and Teacher Education convened

Adventures of the Creeping Man (2017, WUP),

the symposium Bringing teaching to research

edited by Professor Neil McCaw, has been

and research into teaching: a symposium on

reviewed in the Times Literary Supplement.

learning in Higher Education. This explored the

Published in 1927, the Sherlock Holmes story

relationship between research and teaching, the

was part of the final collection of detective

ways we bring research into our teaching, and

stories, The Case-Book of Sherlock Holmes.

how teaching enhances our research. Staff from

The volume features the facsimile handwritten

the Department of Education Studies and Liberal

manuscript, a transcribed, annotated version

Arts hosted two international conferences. The

of the story and an introductory essay that

Philosophy of Education Research Centre co-

examines the critical history of the tale and

hosted the International Conference on Critical

the details of the manuscript. Looking forward,

Pedagogies and Philosophies of Education

the Faculty is establishing a staff-wellbeing

with the Philosophy of Education Society of

committee to develop new initaitves within the

Great Britain, bringing together international

Faculty.

scholars to consider contemporary debates across educational theory and practice. Liberal

Social Justice

Arts staff co-hosted with the Association of Core

The Faculty is forging new strategic cultural

Texts and Courses the European Liberal Arts

partnerships on behalf of the University with

Education: renewal and reformation Conference.

key arts organisations in the region to benefit

Both conferences cemented the reputation

students and art lovers and audiences in

of the Department as a significant leader in

Winchester and more widely in Hampshire, with

international debates about the purpose and

the University cooperating across a range of

character of education, and the ways in which

artistic and academic areas. The University has

to achieve high quality educational provision

signed strategic partnership deals with the Live

that enables each individual to flourish, while

Theatre Winchester Trust – which incorporates

acknowledging its social responsibilities.

the Hat Fair and the Theatre Royal Winchester

Dr Louise Pagden, Dr Vicky Randall and Dr Mary

– Winchester Film Festival, Winchester Poetry

Scanlon launched Winchester’s regional hub

Festival and The Point, Eastleigh. A five-year

for the Chartered College of Teachers, which

residency with Blue Apple Theatre – which

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is the new professional body for the teaching

local schools and the Walter Sisulu University.

profession. It aims to support teachers in sharing

Two Film Studies students are producing a

practice and engaging with research evidence

documentary of the visit. In summer 2018, we

to enhance teaching and learning for children.

hosted one of four high-profile celebrations

Looking forward, we are launching a new

around the world to mark the 100-year

research centre for Forced Migration, and are

anniversary of Mandela’s birth. Freedom in

hosting the Boundary Crossings International

a Fractured World: Sustaining the Legacy of

Conference in 2018.

Nelson Mandela formed a quartet of major international conferences taking place in the UK,

Thriving Individuals

USA, Kenya and South Africa. It explored how his

Professor Stephanie Spencer was confirmed

commitment to, and understanding of, freedom

President of the History of Education UK Society

might help us to navigate our way through our

at its 50th anniversary conference in Winchester.

current challenging times.

Scholars came from across the world to speak on the subject of ‘Celebration, Commemoration

FACULTY OF BUSINESS LAW AND SPORT

and Collaboration: milestones in the history of education’. We held our second Early Career

Business Excellence and Growth

Teacher conference for Primary and Secondary

Following the University’s successful bid

colleagues who are in their first three years of

for £250,000 of funding from the Degree

teaching. Over 75 delegates attended, of which

Apprenticeship Development Fund, the

over half were alumni. Professor of Learning and

Centre for Women in Digital Enterprise has

Director of the Centre for Real-World Learning

been launched. The Centre is targeted at

(CRL) Professor Bill Lucas was appointed by the

women entrepreneurs and is based on social

OECD as co-chair of the strategic advisory group

mobility and the concept of inclusive growth.

for the 2021 PISA test of Creative Thinking which

This ensures opportunities for all sections of

will draw on the work of the CRL.

the population, with a special emphasis on achieving gender equality which has a positive

Social Justice

impact on society as a whole and, in particular,

The University and the Nelson Mandela

economic growth. The project has supported

Museum in South Africa signed a partnership

100 women to set up and grow their businesses.

agreement which will see the two institutions collaborate on joint teaching and research

Graduate Success and Research Impact

activities, study visits and launch an exchange

The University has recently launched two new

programme. We are the first university in the

research centres:

UK to establish a link with the Museum and the

The Centre for Climate Change Education and

partnership, which highlights the shared values

Communication, led by Dr Tammi Sinha, aims

of both organisations, will boost our research

to explore how higher education can and will,

and teaching activities and foster international

have a positive impact for climate action through

academic cooperation.

multi-disciplinary research. Focusing on the

In April, Matt Lowden, Senior Lecturer in the

UN Sustainable Development Goals 13 and 4

Faculty of Education, Health and Social Care,

(Climate Action and Quality Education), it will

who is leading on the partnership, and Miriam

act as a hub and resource for all Faculties at the

Walker, Senior Lecturer in the Department of

University and work closely with Winchester

Teacher Development, led the inaugural visit

Action on Climate Change (WinACC) amongst

by a group of undergraduate trainee teachers

others.

to the Nelson Mandela Museum in Qunu SA,

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34

The Centre for Parliament and Public Law,

establishment of the Hampshire Collaboration

headed by Dr Craig Prescott, aims to further

for Health Research and Education, in which

the existing strengths in Public Law that exist

both institutions are equal partners. The

within the University’s Law Department, with a

collaboration aims to increase research

focus on Parliament. The Centre will consider

and education opportunities for University

the whole range of constitutional and public law

academic departments and hospital staff. The

issues, including parliamentary procedure and

collaboration recently secured its first Higher

reform - for example English Votes for English

Education Innovation Funding (HEIF) grant,

Laws - human rights, the principles of judicial

winning £55,000 for a project entitled ‘A Digital

review, devolution and local government

Infrastructure for Hampshire Health’.

and the monarchy. We are looking forward

Environmental Sustainability

to launching the Centre for Women in Digital Enterprise.

The University has signed up to the Principles

Research by Marion Oswald, Head of the

(PRME), a United Nations (UN) initiative which

University’s Centre for Information Rights, has

includes over 700 institutions worldwide. As

fed directly into the Science and Technology

one of 38 UN Global PRME Champions, we

Select Committee inquiry into algorithmic

are tasked with undertaking game changing

decision-making. Conducted jointly with

projects that respond to systemic challenges

Sheena Urwin, Head of Criminal Justice,

faced by the PRME community, as well as to key

Durham Constabulary, the research explores

issues identified by the UN and the UN Global

the use of algorithmic tools to improve police

Compact. PRME seeks to establish a process of

force decision-making and proposes ALGO-

continuous improvement among management

CARE, an ethical framework of key practical

education institutions in order to develop a

and legal concerns that should be considered

new generation of business leaders. In 2017,

in relation to the use of algorithmic risk

Carole Parkes, Professor of Management and

assessment tools by the police.

Dr Roz Sunley, Senior Lecturer in Business

for Responsible Management Education

Management, led the opening plenary of the

Thriving Individuals

PRME and United Nations Global Compact

Senior Lecturer Emma Nottingham was invited

Global Forum for Responsible Management

to speak on a considerable number of radio

Education – 10 Years of PRME conference.

programmes during the Alfie Evans court action

Professor Parkes was formally recognised by

to comment on the legal proceedings and

the United Nations as a Special Advisor to the

issues that the case raised around children’s

UN for the PRME initiative.

privacy. This included BBC Radio Sheffield on how the campaign has made him a part of

FACULTY OF HUMANITIES AND SOCIAL SCIENCES

‘Generation Tagged’. She also appeared on BBC2’s Victoria Derbyshire show.

35

Educate and Advance Knowledge

Social Justice

In October 2017, we launched a new research

In February 2018 the University and Hampshire

hub, the Centre for Forensic and Investigative

Hospitals NHS Foundation Trust (HHFT) signed

Psychology. Headed by Director Dr Wendy

a partnership agreement that will see the two

Kneller, Senior Lecturer in Psychology, the

organisations collaborate on research and

Centre brings together a wide variety of

education activities. The agreement formalises

academic expertise in forensic practice in the

the partnership between HHFT and the

legal and criminal justice system, including

University which began in April 2013 with the

eyewitness identification, interviewing

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witnesses and detecting deception in

is forming part of key research around the role

interviews.

Archaeology can play in the recovery process for veterans.

Thriving Individuals Maria Uther, Visiting Professor of Cognitive

Dr Ulrike Ziemer, Senior Lecturer and

Psychology, received a Nokia Foundation

Programme Leader for Sociology in the

Award at a ceremony in Helsinki. Maria received

Department of Politics and Society, was

a grant to undertake research with Cicero

awarded a two-month Visiting Research

Learning, based at the University of Helsinki.

Fellowship at the University of Helsinki’s

Her new research in Finland builds on the

Aleksanteri Institute. Looking forward, we

‘Say it Again Kid’ project ,which investigated

are supporting all full-time academic staff to

the perception of sound in children who were

become FHEAs by 2019, and we are developing

learning a language using mobile devices. It will

partnerships that enhance the student

look at adult perceptions of sound in learning

experience with external bodies.

apps on mobile devices to see if age, language background or device type affects perception of sound quality.

Dr Timothy Secret, Senior Lecturer in Philosophy, chaired a panel discussion at Tate Britain. Focusing on artistic expression and creative experimentation in the years immediately after 1918. Dr Secret, who has been awarded the title New Generation Thinker by the BBC and the Arts and Humanities Research Council, was recently also part of the discussion panel at Tate Britain for What Makes Us Human.

The event explored the concept of the gaze within the visual arts.

The Archaeology programme team have developed strong links with the Jon Egging Trust. Fl Lt Jon Egging had spent a season with the Red Arrows when, during the Bournemouth Airshow in 2011, he tragically lost his life. His widow, Dr Emma Egging, established a Trust in his name to help support children with barriers to learning – often, but not exclusively, experiencing difficult home lives that made focusing on their education problematic.

The Trust’s ‘Blue Skies programme’ engages selected school children from target schools/ areas for several months a year over three years from ages 13 to 16. Alongside this work is the Archaeology and Op Nightingale Project, which works with Help for Heroes engaging veterans to study BA Archaeology. This work

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36

UNDERSTANDING OUR RISKS The Board of Governors has delegated authority to the Audit Committee for Governor Oversight of Risk Management, including monitoring the Risk Management Plan. The most recent update was presented at the Board meeting on 5 June 2018. The following are our keys risks, selected from our risk register:

37

Risk area

Risk description

Risk management

Student recruitment

Failure to recruit a sufficient number of students, thus directly impacting our core income stream and threatening financial sustainability.

The University has invested in data-led recruitment and an improved media presence and customer response. We are nationally recognised for our widening participation activities and hold an Ofsted Outstanding status. We are also making considerable investment in new programmes to stay ahead of current education trends.

Graduate employability/ further study

Poor rates of graduate-level employability compared with sector/competitors, impacting our league table ranking and student demand.

New opportunities for volunteering/placements together with extended alumni bursary schemes. A new Employability Strategy, faculty-based employability advisers and introducing programmes with explicit career paths. Further factors include professional accreditation secured for relevant programmes and the Winchester University Hub to support aspiring entrepreneurs.

Changes in government policy and funding

The University could be negatively affected by the uncertain and rapidly changing government policy on HE and its funding.

The University informs and influences national debate about government policy through our responses to consultations, participation in roundtables and forums, and through contributions to various Boards, Committees and Commissions within higher education.

For example, the Vice-Chancellor co-chaired the HE Commission on challenger institutions and is the current Chair of GuildHE. In addition she is a Board member of the Universities and Colleges Admissions Service (UCAS) and the Quality Assurance Agency for Higher Education (QAA), a member of the All Party Parliamentary University Group (APPUG), the Teacher Education Advisory Group (TEAG) and Universities UK (UUK).

Student experience

Failure to deliver continual improvement in student experience in the context of current financial constraints and uncertainties. This could lead to a reduction in demand and therefore income. It would also reduce our ability to meet strategic objectives such as our widening participation agenda.

Many initiatives have and are being introduced to improve the student experience. The University takes time to listen to its students to ensure we rectify current issues and make enhancements. For example, during 2017-18 the University invested considerably in the appointment of additional mental health resources and introduced a new Assessment & Feedback Strategy and Action Plan.

Student retention

Failure to maintain high levels of retention in the context of The Teaching Excellence and Student Outcomes Framework (TEF) and current recruitment uncertainties.

This year the University introduced new systems to allow students to link into the University as soon as they accepted their offer to study with us. We established a Centre for Student Engagement and developed a new ‘Get Involved’ button to highlight the many opportunities open to our students. The University has appointed a student retention officer in Student Services to support students fully and we have increased resources for mental health support and wellbeing.

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PUBLIC BENEFIT

embedded in all that we do, as the following vignettes highlight.

This integrated report and financial statements provide extensive information on the public

As an exempt charity the Governors of the

benefit and the added value the University

University of Winchester have had due regard

is achieving. The activities provided in the

to the guidance on public benefit published

following sections highlight how the University

by the Charity Commission in exercising their

has met its charitable objectives during the

powers and performing their duties. We are also

year. However, of particular relevance to

required to demonstrate that this is embedded

public benefit is our commitment to widening

in our values, as detailed on page 5.

participation, engagement with the community

The Board of Governors have due regard to

and the wider public and our contributions

any detrimental harm that may arise from

to environmental sustainability and a healthy

the University’s activities and particularly to

society.

the impact of its campus developments on its immediate locality. We aim to minimise

CHARITY STATUS AND PUBLIC BENEFIT STATEMENT

this impact through extensive community discussion and consultation in addition to working closely with Winchester City Council.

We do not currently incur private benefit from

The principal objectives of the University, in

its activities undertaken in pursuance of its

accordance with Section 124 of the Education

purposes. The Board of Governors recognise

Reform Act 1988, are concerned with the

that students, both undergraduate and

provision of higher education and the conduct

postgraduate, are the principal beneficiaries

of research. Supporting this, the University

of the provision of higher education whilst

also undertakes other activities including

the public at large are beneficiaries of the

knowledge exchange, consultancy and the

University’s Research and Knowledge

provision of accommodation, catering and

Exchange and community engagement

conference services.

activities.

We are an exempt charity under the terms of

FACILITIES

the Charities Act 2011: the trustees of the charity are the members of the Board of Governors.

The University provides facilities open to the

The OfS, previously The Higher Education

public, including public lectures, concerts, an

Funding Council for England (HEFCE), is the

art gallery, sports facilities and other visitor

principal regulator of English higher education

attractions.

institutions covered within the act.

In setting and reviewing the University’s strategy and activities, the Board of Governors takes into consideration the Charity Commission’s guidance on the reporting of public benefit and the supplementary public benefit guidance on the advancement of education. Indeed, the University takes seriously its commitment to ensure that it satisfies the Charity Commission’s public benefit requirements. Public benefit is

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VALUE FOR MONEY AND PROCUREMENT The OfS terms and conditions of funding for higher education institutions (ref 2018.15) requires our Board of Governors to demonstrate that it uses public funds for proper purposes and seeks to achieve value for money from public funds.

At the University of Winchester, the responsibility for Value for Money (VFM) is delegated to management and the Board’s responsibility is discharged through proper scrutiny of the University’s affairs and through exercising appropriate oversight of strategies and policies.

In exercising this duty the University has participated in HE Shared Legal, since its commissioning on 1 May 2012. This shared service arrangement permits a single fee for legal services for the year.

The University continues to benefit from membership of and active engagement in a number of cross-sector organisations including: • Academic Registrars Council (ARC) • BUFDG’s Procurement Professionals Group (PPG) • GOV.UK – via Crown Commercial Services (CCS) • HE Shared Legal – legal services provision • Southern Internal Audit Partnership with Hampshire County Council • Universities and Colleges Admissions Service (UCAS) • Higher Education Liaison Officers Association (HELOA) • UK Council for International Student Affairs (UKCISA) • Universities Human Resources (UHR) • Universities UK and Guild HE • Advanced Procurement for Universities and Colleges based in Scotland (APUC) • British Universities Finance Directors Group (BUFDG)

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flexible, responsive and resilient cost-effective

• Eduserv – for the purchase of software licences

service to all participating partners.

• Higher Education Access Tracker (HEAT) The Catering department purchases through

• iESE – construction framework

TUCO (The Universities Catering Organisation)

• JISC – for broadband purchasing

and continues to engage local suppliers to

• Local Government Procurement Network (LGPN)

ensure that, where possible, students, staff and

• London Universities Purchasing Consortium (LUPC)

visitors receive ethical, local produce. They

• NHS – TDS Framework

agreements as tenders are issued, helping

• Southern Universities Construction Consultancy Affinity Group (SUCCAG)

maintain supply and supporting the growth of

encourage those suppliers to join framework

independent business.

• The Association of Managers in Higher Education Colleges (AMHEC)

The University openly tenders for all nonframework purchases above its internal

• The Energy Consortium (TEC)

thresholds which fall within the thresholds set

• The Society of College, National and University Libraries (SCONUL)

by the UK Public Procurement regulations.

• The Universities and Colleges Employers Association (UCEA)

Our Procurement function regularly monitors category expenditure and contract

• The University Caterers Organisation (TUCO)

administration to ensure the University is

• University and Colleges Information Systems Association (UCISA).

achieving best value from existing suppliers and agreements.

The aforementioned organisations consistently offer the sector value for money, often through rates specifically negotiated for the Higher Education sector. The sector is also served by regional purchasing consortia and the University of Winchester is an associate member of the SUPC. Figures published by SUPC based on 2016/17 expenditure demonstrates that the University has succeeded in saving £194,394 through channelling the University’s nonpay spend through regional and national collaborative agreements where possible. The collaborative spend for 2017/18 amounted to £1.9m to SUPC affiliated suppliers, the majority of which is associated with computer supplies and services, for which we expect to have benefitted from similar savings to last year.

The University continues to utilise a shared service arrangement for the provision of internal audit services, provided by Southern Internal Audit Partnership. This is a partnership arrangement set up by Hampshire County Council pooling expertise and enables a

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EMPLOYEE INVOLVEMENT

EMPLOYEE WELLBEING AND ENGAGEMENT

The University provides a range of expertise and support to local communities through

The University of Winchester is dependent

its staff volunteering and outreach scheme,

on the quality of the workforce we recruit.

which offers staff an opportunity to participate

This applies to all aspects of the University;

in voluntary work. Students are also active

high calibre academics are needed to

in raising funds for charity and in community

deliver excellence in teaching, research

action projects.

and knowledge exchange activities, while professional services staff must be capable of

There are a number of ways that this takes

meeting the myriad of challenges that face

place:

any large organisation on a daily basis. High

• Staff can choose to use the University’s Employer Supported Volunteering scheme (ESV) to engage with volunteering/ community activities during their normal working hours.

productivity and effectiveness have helped

• Other staff volunteer for activities out of normal working hours, either independently of the University or via engaging with oncampus community activities.

leaders and the University continues to place

enable the University to deliver excellent outcomes through a period of change and uncertainty within the sector. Wellbeing of our staff is of paramount importance to senior emphasis on helping staff to thrive and flourish through wellbeing and engagement.

• Departments can undertake a Team Volunteering Day during normal working hours

The University has a range of benefits, discounts, sources of support, development and wellbeing events available for staff to support them both within and outside of our University community. As well as regular events, such as Tai Chi, Yoga, and a summer boot camp, the University organises a series of events aimed at improving our employee wellbeing, e.g. mindfulness, resilience and nutrition events.

The creation of a Staff Wellbeing Advisory Group has allowed colleagues from across the University to come together and discuss wellbeing initiatives including the drafting of a new Staff Wellbeing Policy. A new software platform, ‘Logbuy’, provides a facility to recognise the hard work of colleagues, for example by sending a thank you to someone for their efforts, and to acknowledge their birthdays or specific achievements at work.

The advisory group has also supported the formation of a number of wellbeing groups for staff to enjoy.

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Financial Review

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FINANCIAL STRATEGY

which produce sufficient cash to support the University’s strategic objectives and provide

Our Financial Strategy is to enable the

institutional sustainability.

University to reach its potential and its ambition. It has been drafted with reference to

OPERATIONAL EFFICIENCY

the five principles identified in HEFCE’s good

To continuously improve efficiency and

practice circular (2002/34 ‘Financial strategies

effectiveness - managing the cost of operations

in higher education institutions’):

and delivering value for money whilst continuing to maintain a sustainable recurrent

1. Long-term viability and matching resources with objectives

investment in the academic, corporate and support operations. To this extent Finance and

2. Maintaining productive capacity to meet current objectives

Planning are introducing contribution costing to the University.

3. Financing development and investment CAPITAL INVESTMENT

4. Evaluating strategic alternatives and managing risks

To develop capital and other strategic investment projects to deliver future benefit

5. Integrating financial and other corporate

to the University and, if required, to borrow

strategies

for investment at a level that will not put the University at risk.

The Financial Strategy is approved by the Board of Governors and, in light of the context within

TREASURY MANAGEMENT

which the University is operating, it identifies

To assess and manage risk in all University

our strategic priorities as:

growth and development activities and to operate sound treasury management.

SURPLUS To maintain healthy operating surpluses

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FINANCIAL ENVIRONMENT

On 23 June 2016, UK citizens voted in support

Government funding from HEFCE and then OfS

future as the UK government think and work

(from April 2018), being recurrent and capital

through how best to respond to this result and

grants, continues to reduce significantly in

negotiate the best outcome for the UK. It is

place of the home undergraduate fee loan

important that we remain focused on the long-

arrangements. The University currently

term ambitions and aspirations of the University.

of leaving the EU. We now face a degree of political and economic uncertainty about the

receives less than 3% of its income from We are a people organisation and our values

HEFCE for teaching.

and purpose support us to deliver opportunities In 2015 the government announced that

for our staff and students as global citizens

universities reaching a certain threshold,

in a global knowledge economy. We are

governed by a new Teaching Excellence

engaging, and will continue to engage, in the

Framework (TEF), will be able to uplift the

long-term; delivering inclusive and inspirational

standard tuition fees by an inflationary factor.

teaching, learning and research to the diverse

Whilst this has been possible for our 2017/18

and talented communities we serve. We will

tuition fee, which rose by £250 per full time

support each other to achieve the best we can

home and EU undergraduate student to £9,250,

for our students and staff and we will engage

the government has subsequently withdrawn

with policy makers to shape our future as a

the original TEF proposal to permit a further

successful institution that is world-leading in

inflationary rise in 2018/19, choosing instead

values-driven higher education.

to hold the maximum chargeable full time fee at £9,250. At this stage the government are

Over the past few years we have been working

undertaking a review of post-18 education,

on a number of initiatives to strengthen the

including a review of tuition fees, and the

University’s financial base, to deal with existing

University currently has no certainty over the

and known pressures and to put the University

level of fees that it will be permitted to charge

into the best possible position to contend with

for 2019 entry. The government is expected to

the rapidly changing and uncertain financial

present the results of its review of fees in the

environment. These have included:

first quarter of 2019.

• Investment in a number of new core systems to improve our service delivery including a new learning management system (LMS), finance system, CRM system and data warehouse.

The capping of tuition fees to £9,250 in 2017/18 followed two years of fees frozen at £9,000, inevitably creating financial pressure in an inflationary environment; against assumptions

• A review of our portfolio of programmes with a number of new programmes coming online and in development, including STEM subjects, Foundation Degrees and Health and Well being programmes in Physiotherapy and Nursing.

of pay awards on top of incremental drift arising from rising pension costs, additional apprenticeship levy costs, inflation on energy costs and inflationary increases on goods and services. This has made it increasingly

• Considerable planned investment in our estate to enable growth of the University as the sector starts to recover from the demographic downturn in 18-20 year old students from 2020/21 (based on the Office for National Statistics national projections for 18-20 year old UK citizens).

challenging to maintain the University’s financial surplus strategy at a time when the University is investing for planned future growth in the institution.

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FINANCIAL PERFORMANCE

base, in particular due to depreciation and loan interest, the impact of which we have started

The financial statements reflect another

to see in 2017/18 with the development of

successful year of growth, whilst the sector

new programmes to complement this new

continues to contract overall. We have bucked

build. However, the additional costs of these

the trend of the demographic downturn and

new programmes will not immediately be

grown in undergraduate student recruitment,

exceeded by additional student fee income

enhanced our academic partnerships in the

until the new programmes are fully established,

UK and across the globe and invested in our

two to three years after the building is opened.

students’ experience, academic endeavours

This is the main reason for the 2017/18 results

and capital infrastructure. Together with

showing a reduction on the previous year. The

robust cost control, we have mitigated the

reduction is further forecast into the future as

future freezing of UK tuition fees, rising staff

our investment increases before returning to

costs and, in particular, pension cost increases.

successive and sustainable surpluses after 2021/22.

This years’ surplus before tax of £2.0m represents 2.6% (2016/17: 7.0%) of income.

INCOME

Whilst this is a reduction on last years’ results,

Total income for the year is £79.0m (2016/17

2017/18 saw the introduction of a new £30m

£75.0m), of which tuition fee income accounts

loan facility to support the development of

for 76%, which is broadly consistent with

a new learning and teaching building. The

2016/17 at 77%. Whilst the majority of this

construction phase of our £48 million West

increase is due to student recruitment and

Downs development commenced in January

retention, the improvement has also been

2018, with the building on schedule to open

supported by the undergraduate home and

for Semester Two in early 2020. This is a

EU tuition fee increase from £9,000 to £9,250

substantial investment for the University and

in 2017/18, and inflationary increases in

will be a flagship building that will add a further

international and postgraduate tuition fees. The

20% to the University’s learning and teaching

income for the year also saw increases in all our

space. It will be a visible advertisement for the

non-tuition income streams, including:

University due to its prominent location on Romsey Road, a major gateway into Winchester

2017/18

2016/17

3,586

3,392

641

494

Other income

2,125

1,901

Residences, catering and conferencing

12,548

11,597

285

246

£’000s

City centre. The development underpins the University’s ambition and strategic aim to

Funding body grants

continue to grow its student numbers into the future and thus benefit from the economies of scale experienced by larger universities. The

Research grants and contracts

new space will also allow the University the opportunity to widen its community and partner engagements, incorporating a public gallery and catering and conferencing facilities.

By enabling the University to grow its student numbers, this development is a catalyst in securing the future financial sustainability of

Endowment and investment income

the University in the longer-term. However, in the short-term the development causes a significant increase to the University’s cost

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INTEGRATED ANNUAL REPORT 2017-18

TOTAL INCOME 2017/18 (£m) Total: £79m

Tuition fees and education contracts: 59.8

Endowment and investment income: 0.3 Research grants and contracts: 0.6

TUITION FEE INCOME 2017/18 Per cent Full-time home and EU students: 87

Part-time students: 3

Funding body grants: 3.6

Self-financing courses: 4

Other income: 14.7

Full-time international students: 7

EXPENDITURE

Mathematics and Music and Sound Production.

Total expenditure was £77.0m (2016/17 £69.8m),

Together, these programmes attracted over 100

an increase of 10.3%.

applications in their first year, despite limited marketing. Mathematics is currently the most

Total staff costs for the year have increased by

popular A level choice for students in schools

6.7% (9.2% 2016/17) to £41.4m due to increases

or colleges and a rising trend in Economics

in all categories of expenditure as follows:

A level entrants has also been identified. The

• Salary costs increased by 6.5% to £32.6m due to an increase of 11 FTE academic staff and 17 non-academic staff to support the new programme developments and new corporate systems. Part of the non-academic staff growth has resulted from a decision to in-source our night shift library security guards, an equivalent of approximately nine FTE staff.

development also responds to the Sainsbury

• Social security costs and pension costs have increased by 6.8% to £3.1m and 5.8% to £5.6m respectively, in line with the aforementioned FTE increase.

adaptations to certain learning and teaching

Review which recommended expanding specialist Maths schools and improving FE colleges’ record on Maths. This is part of the UK government’s drive to create a “proper system of technical education”. These developments have been possible within the current estate envelope with some modification and spaces. Further programme developments, and the associated staffing increases, have been planned for the coming year, 2018/19.

• The new apprenticeship levy has added an additional £0.1m to the University’s staff cost base.

Other operating expenditure has increased by

The staff increase has predominantly resulted

has been at 2.74% across the same period.

from the recent new programmes for

The underlying expenditure showed a 31.0%

2017/18 including Anthropology, Economics,

(£1.2m) increase in residences, catering and

UNIVERSITY OF WINCHESTER

17.5% to £28.8m during a time when inflation

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46

conferences, primarily due to a higher number

rate fixed for 10 years. The increase in interest

of beds under University-managed housing

cost reflects this initial drawdown in 2017/18.

(UMH) than for 2016/17. UMH accommodation EXPENDITURE 2017/18 (£m) Total: £77m

is leased by the University from the owner, the student paying the University for the rent of the property. Thus this UMH cost increase is matched by a similar increase in other income.

Depreciation: 4.8

Fellowships, bursaries and scholarships show a 15.0% increase, reflecting the University’s growing commitment to widening participation.

Repairs and general maintenance increased by 7.0%, reflecting the rising cost of materials and the University’s commitment to maintaining its existing estate. However, the most notable increase in other operating expenditure was experienced under other expenses, which increased by 22.5% to £13.1m. The single

Other operating expenses: 28.8

largest increase (£0.8m) was due to additional expenditure on communications and marketing to support the rollout of the University’s

BALANCE SHEET

re-branding and communicating its new

Fixed Assets

programmes. Other increases (£0.5m) were

The capital expenditure on the new West

experienced in our software and equipment

Downs development has dominated the £7.3m

cost as the University invested in the state-of-

increase in the value of our non-current assets.

the-art systems and software to support both

However, the University continues to invest

its learning and teaching and its back office

in its existing estate to maintain the quality of

systems. School placement costs increased

teaching rooms and social areas, expending

by £0.3m, reflecting the change in delivery of

more than £1.7m on existing building capital

teacher training from lecture to classroom.

improvements in the year.

Depreciation increased by 3.1% (£0.1m),

Current Assets

reflecting a continued investment in the

The increase in current assets is dominated by

University’s existing estate. The costs

an increase in cash and short-term investments

associated with the West Downs development

during the year. This is predominantly due to a

are not yet being amortised until the building

£10m loan drawn from the Triodos Bank.

is completed in 2019/20 when the University’s depreciation charge will increase considerably.

Trade and other receivables has marginally increased in the year by £44k which is

The interest and other finance costs have

consistent with the increase in the number of

increased by 9.1% (£0.2m). In order to finance

students now studying at the University.

the West Downs development, the University secured a £30m loan facility from Triodos Bank

Creditors

in May 2018. The facility is available for 3 years

Both short-term and long-term creditors have

with a 25 year term ending on 31 July 2043. On

increased considerably during the year which is

1 June 2018 the University exercised an initial

consistent with the aforementioned £10m loan

option to make a drawdown of £10m, with the

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UNIVERSITY OF WINCHESTER

drawdown.

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INTEGRATED ANNUAL REPORT 2017-18

Cash Position Over recent years the University has carefully managed its budgets, allowing it to accumulate cash reserves to help fund the development of West Downs. The University continues to be a strong generator of cash with £9.9m (2016/17 £12.3m) generated from operating activities in the year.

However, whilst funds held in short-term investments and cash and cash equivalents increased by £6.8m in the year, there was an underlying cash reduction of £3.3m after allowing for the loan drawdown of £10m from the Triodos Bank in May 2018. This reduction in cash reflects the use of operating cash to fund the West Downs development. In the year to 31 July 2018 the University expended over £10m on assets in the course of construction.

The University’s policy to hold no less than 10% of turnover in available cash (£7.8m for 2017/18) has been upheld throughout year.

CHANGES IN CASH MOVEMENT 2017/18 Opening cash and investments

£9.9m New loan

@simplerdave

£34.3m

£10.0m

£0.8m

£2.8m Capital expenditure

£11.1m

Closing cash and investments

@thebencoleman

£41.1m

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48

FUTURE SUSTAINABILITY

adverse changes in the HE environment.

In January of this year the construction phase

On 6 September 2018, the Chief Secretary to

of our £48 million West Downs development

the Treasury provided an update to Parliament

commenced, with the building on schedule to

on the 2016 actuarial valuations of the Teachers’

open for semester two in January 2020. This

Pension Scheme. The update concluded that

is a substantial investment for the University

the assumptions which HM Treasury plans

and will be a flagship building that will add a

to apply to the valuations would lead to both

further 20% to the University’s learning and

an increase in member benefits and very

teaching space. The development underpins

substantial increases to employer contribution

the University’s ambition and strategic aim to

rates from September 2019 of up to 44%. Such

continue to grow its student numbers into the

an increase would add over £1m to our annual

future and thus benefit from the economies of

staff costs.

scale experienced by larger universities.

Further financial pressure may be imposed

The development has had a major impact on

by the Government if the cap on tuition fees

our predicted future financial performance.

is reduced following their Review of Post-18

By enabling the University to grow its student

Education and Funding. The report is due to

numbers, the development is a catalyst in

be released in the first quarter of 2019 and will

securing the future financial sustainability of

set the maximum tuition fee chargeable for

the University in the longer term. However,

2019 entry and beyond. It is therefore likely to

in the short term the development causes a

directly impact our future forecast income and

significant increase to the University’s cost

thus our financial sustainability.

base, in particular due to depreciation and loan

However, the University is less concerned

interest charges. Whilst we are already initiating

about the UK’s decision to leave the European

new programme developments to complement

Union (EU) (Brexit). Whilst Brexit does pose

this new build these additional costs will

considerable challenges for the HE sector,

not immediately be exceeded by additional

especially within fields of research, the

student fee income until the new programmes

University of Winchester does not recruit a

are fully established, two to three years after

large number of students from the EU. In

the building is opened. However, over recent

2016/17 the University taught 96 EU domicile

years the University has carefully managed

students representing circa 1.4% of the total

its budgets allowing it to accumulate cash

student population, so the impact of a reduction

reserves to help fund the development (circa

in EU student recruitment would be relatively

£32m excluding the initial drawdown of the

immaterial financially.

loan) thus making this considerable investment financially sustainable.

The University’s cash reserves reduce during the period of the build as £18m is used to part fund the development. If the full £30m loan facility with the Triodos Bank is drawn, as is forecast, the University will retain sufficient cash reserves either to enable further projects from the University’s Estate Master Plan to proceed, or to future-proof the financial sustainability of the University should it be required following

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FINANCIAL KPIs

Our financing factor of negative 2.7 represents a ratio of net bank borrowing versus EBITDA.

Key Performance Indicators (KPI) are used

The ratio is negative due to our cash and

by the SMT and by the Board of Governors to

funds on deposit and short term investment

assess the University’s performance. All KPIs

exceeding our bank borrowing. Thus, the ratio

have been revised by the SMT in line with our

for both 2016/17 and 2017/18 is strong against a

strategic plan and changes in the external

benchmark of 5.0.

environment and reviewed in the light of feedback from the British Quality Foundation (BQF).

Signed on behalf of the Board of Governors:

Our KPIs cover a number of operational areas of the University from student satisfaction to student employability. Our financial performance KPIs reflect those used by our funding bodies and are reconciled to the accounting data. Our financial sustainability KPIs

A C Lovell

include:

Chair of Board of Governors

Financial KPIs

Previous data

Latest data

Profitability % EBITDA / Total income

16.2%

11.8% Professor J Carter Vice-Chancellor

Margin for Sustainability and Investment (MSI)

15.6%

Financing – Bank borrowing/EBITDA

-2.3

12.0% Date 14 November 2018 -2.7

Our profitability percentage has considerably reduced for 2017/18 due to investments in our University re-branding, marketing our new programmes, developing our IT infrastructure and increasing our commitment to Widening Participation. However, the percentage remains financially sustainable at 11.8%.

The MSI factor is similarly derived from Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) but is calculated from historic periods and future forecast periods.

It therefore presents a longer term forwardlooking factor. The 2017/18 factor of 12.0% is financially sustainable although lower than 2016/17 due to the factors mentioned above.

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@katiekiwi123

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Statement of Directors’ Responsibilities in Respect of the Strategic Report, the Directors’ Report and the Financial Statements

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going concern; and

The Board of Governors are responsible for preparing the Strategic Report, the Directors’

• use the going concern basis of accounting unless they either intend to liquidate the group or the parent University or to cease operations, or have no realistic alternative but to do so.

Report and the Financial Statements in accordance with the requirements of the Office for Students’ (OfS) terms and conditions of funding for higher education institutions and Research England’s terms and conditions

The Board of Governors is responsible for

of Research England grant and applicable law

keeping adequate accounting records that

and regulations.

are sufficient to show and explain the parent University’s transactions and disclose with

Company law requires the directors to prepare

reasonable accuracy at any time the financial

financial statements for each financial year.

position of the parent University and enable

Under that law they have elected to prepare

them to ensure that its financial statements

the group and parent University financial

comply with the Companies Act 2006. They

statements in accordance with UK accounting

are responsible for such internal control as

standards and applicable law (UK Generally

they determine is necessary to enable the

Accepted Accounting Practice), including

preparation of financial statements that are free

FRS 102 The Financial Reporting Standard

from material misstatement, whether due to

applicable in the UK and Republic of Ireland.

fraud or error, and have general responsibility

The terms and conditions of funding further

for taking such steps as are reasonably open

require the financial statements to be prepared

to them to safeguard the assets of the group

in accordance with the 2015 Statement of

and to prevent and detect fraud and other

Recommended Practice – Accounting for

irregularities.

Further and Higher Education, in accordance with the requirements of the Accounts Direction

The Board of Governors are also responsible for

issued by the OfS.

ensuring that:

Under company law the directors must not

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

approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and parent University and of their income and expenditure,

• funds provided by the OfS and Research England have been applied in accordance with the terms and conditions attached to them;

gains and losses and changes in reserves for that period. In preparing each of the group and parent University financial statements, the directors are required to:

• funds provided by HEFCE have been applied in accordance with the Memorandum of Assurance and Accountability and any other terms and conditions attached to them

• select suitable accounting policies and then apply them consistently; • make judgements and estimates that are reasonable and prudent;

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

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

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

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

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The Board of Governors is responsible for the maintenance and integrity of the corporate and financial information included on the University’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

AUDITORS A resolution to re-appoint KPMG LLP as auditor for the forthcoming year was proposed at the meeting of the Board of Governors on 14 November 2018. The auditors have served for two years.

DISCLOSURE OF INFORMATION TO AUDITORS The Governors who held office at the date of approval of this report confirm that so far as they are each aware there is no relevant audit information of which the University’s auditors are unaware; and each Governor has taken all the steps that he or she ought to have taken to be aware of any relevant audit information and to establish that the University’s auditors are aware of that information.

Signed on behalf of the Board of Governors:

A C Lovell Chair of Board of Governors

Professor J Carter Vice-Chancellor Date

@emily.m.b.24

14 November 2018

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Our Governors

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The following are current Governors (Directors) of the University or those who served during the year ended 31 July 2018.

Appointed on

Resigned on

Diocesan Members Alan Lovell (Chair) Winifred Harris (Vice-Chair) Mark Byford Tim Dakin, The Right Revd The Bishop of Winchester (ex-officio) Jane Jessop Andrew Robinson David Williams, The Right Revd The Bishop of Basingstoke Co-opted Members Margaret Chin-Wolf David Cook Mary Edwards

1 August 2017

Professor Christopher Gaskell

1 August 2017

Peter North Dr Emma Page Academic Governors Professor Joy Carter (ex-officio) Professor Louise Curth

1 August 2017

Professor Neil Marriott (ex-officio) Professor Elizabeth Stuart (ex-officio) Professor Nigel Tubbs

1 August 2017

Support Staff Governors Catherine Beck

31 July 2018

Dr Lesley Black Tom Lowe

1 August 2018

Former Student Governor John McKenna

31 July 2018

Peter Lidgitt

1 August 2018

Student Governor Talivaldis Atvars Clerk to the Governors/Company Secretary Nigel Trethewy Stephen Dowell (Acting)

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22 October 2018

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Statement of Corporate Governance and Internal Control

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CORPORATE GOVERNANCE

The responsibilities of the Board of Governors

The University is committed to exhibiting best

of the terms and conditions of UKRI funding

practice in all aspects of corporate governance.

relating to funds administered through

This statement details the manner in which the

Research England. The University has been

University has applied the principles set out

designated by the Secretary of State as an

in the Committee of University Chairs (CUC)

institution in the further and higher education

published guidance (HEFCE 2008/06) and

sector, which has its own contract with the

the UK Corporate Governance Code issued by

Education and Skills Funding Agency (ESFA).

are set out in paragraph 22 of the terms and conditions of OfS funding and paragraph 21

the Financial Reporting Council in July 2018, in so far as they relate to Higher Education

The Board of Governors is responsible for

Institutions. Its purpose is to help the reader of

the appointment and removal of external and

the Financial Statements understand how the

internal auditors and for appointing outsourced

principles have been applied.

internal audit providers.

The Board of Governors comprises seven

LEGAL STATUS

independent diocesan appointed members (non-executive), six independent co-opted

The University of Winchester is a company

members (non-executive), five academic

limited by guarantee, registered company

governors, two support staff governors, one

number 05969256. Every Director and member

independent former student governor and one

of the company is also an acting Governor of

student governor. The Diocesan Governors

the University. The University is an exempt

of the Board are appointees of the Church of

charity with its Governors as managing trustees.

England by the Winchester Diocesan Synod.

A student governor holds office until the end

RESPONSIBILITIES OF THE BOARD OF GOVERNORS

of the academic year in which the student

The Board of Governors of the University, which

sooner. Other Governors (not being Governors

meets formally at least three times a year, is

ex-officio) hold office for a term of three years

responsible for but limited to the determination

and shall be eligible for re-appointment up to a

of the educational character and objectives

maximum of three terms, of three years each in

of the University, the oversight of its activities,

total.

governor is appointed or until their appointment by the students comes to an end, whichever is

the effective and efficient use of resources, the

The role of the Chair of the Board of Governors

solvency of the University, for safeguarding

is separated from the University’s Chief

its assets and for approving annual estimates

Executive, the Vice-Chancellor. The Chair

of income and expenditure. The University’s

is elected from amongst the independent

Board of Governors comprises persons

members. No member of the Board of

appointed under the University’s Memorandum

Governors receives any remuneration for

and Articles of Association, a copy of which can

work they do for that Board. The current

be found on our website: Winchester.ac.uk/

Memorandum and Articles of Association for

integrated-annual-report-1718

the University of Winchester were adopted by the Board of Governors on 16 March 2011.

The Board has determined that the Vice-

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INTEGRATED ANNUAL REPORT 2017-18

Chancellor shall be the Accountable Officer

it to identify any material change in its

who has the responsibilities set out by the OfS

circumstances, including any significant

for an accountable officer from time to time.

developments that could impact on the mutual

The Board is satisfied that all conditions of

interests of the University and the OfS. For

receiving and using funds provided by HEFCE,

the purposes of this statement, public funds

the OfS and Research England have been met

includes funds received from the Student Loans

for the year to 31 July 2018. The University’s

Company and the Skills Funding Agency.

constitution places responsibility for the

A ‘Statement of Primary Responsibilities’

University’s operations with the Vice-Chancellor

provides more detail of the responsibilities of

who as the Accountable Officer, supported by the Senior Management Team, implements the

the Board, which include:

Board’s policies and develops and manages the

• the determination of the educational character and objectives of the University and for the oversight of its activities;

University’s business.

The University endeavours to conduct its

• the effective and efficient use of resources, the solvency of the University and for safeguarding its assets;

business in accordance with the seven principles identified by the Committee on Standards in Public Life (selflessness,

• approving annual estimates of income and expenditure;

integrity, objectivity, accountability, openness, honesty and leadership) and with guidance to

• the determination of identity of the Designated Staff, save that the ViceChancellor, the Deputy and Pro ViceChancellors, and the Secretary shall always be members of the Designated Staff;

institutions of higher education which has been provided by the Committee of University Chairs in its Guide for Members of Higher Education Governing Bodies in the UK.

• the assignment of duties and of the appraisal of the Vice-Chancellor;

In accordance with the Memorandum and

• the appointment, discipline, suspension and dismissal and the determination of the grading, pay and conditions of service of the Designated Staff provided that:-

Articles of Association, the Board of Governors of the University of Winchester is the most senior body of the University, responsible for determining the educational character

-- the Vice-Chancellor shall be a practising member of the Church of England or of a church in communion with that church or of a church which is a member of Churches Together in England;

and objectives of the University and for the oversight of its activities including approving its mission, values, strategic vision and long-term business plans, in order to remain sustainable and financially viable. The Board of Governors

-- before making the appointment of ViceChancellor, the Governors shall take suitable measures including national advertising to obtain applications from qualified candidates and interview not less than three such applicants, if there be so many, as appear to them qualified for the post;

is also the principal financial and business authority of the University and oversees the financial health of the University.

In executing its duties the Board of Governors maintains a comprehensive system of risk management, control and corporate

-- the appointment of the Vice-Chancellor shall be made on the recommendation of a committee of the Governors the majority of whose members shall be Anglicans;

governance, including the prevention and detection of corruption, fraud, bribery and irregularities. The Board receives adequate and regular information to monitor performance

-- the Pro Vice-Chancellor shall be a suitable and duly qualified person and shall be in

and track the use of public funds to enable

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60

which the Committee is able to base its annual

sympathy with the aims and objectives of an Anglican Foundation;

opinion in respect of data; a change to the

• the setting of a framework for the pay and general conditions of employment of the Staff who are not Designated Staff;

timing of the approval of the University’s annual

• after consultation with the Staff making the rules relating to the conduct of the Staff;

framework to ensure compliance with the

Transparent Approach to Costing (TRAC) return; and the development of a new assurance conditions of general registration of the OfS.

• the appointment of Auditors.

The Vice-Chancellor is the Chief Executive

It is the responsibility of the Board of Governors

Officer who has a general responsibility to

to undertake an external formal and rigorous

the Board of Governors for the organisation,

evaluation of the performance of the Board, its

direction and management of the University.

committees, the Chair and individual Governors.

Under the OfS terms and conditions terms

During the year, the University engaged KPMG

(OfS 2018.15) between OfS and the Board

to review and comment on the University’s

of Governors, the Vice-Chancellor is the

Board of Governors and its committee

Accountable Officer of the University and in that

structures, delegation and delivery of roles

capacity can be summoned to appear before

and responsibilities, assessing these against

the Public Accounts Committee of the House of

the Committee of University Chairs (CUC) and

Commons.

OfS requirements. The review has provided a high level view of the Board of Governors’

The University maintains a Register of Interests

effectiveness and has specifically assessed the

of members of the Board (and senior managers)

University’s approach to dealing with finance

which may be consulted by arrangement with

matters.

the Clerk to the Governors. In accordance with its Memorandum and Articles of Association,

The report makes a total of 34

the University has appointed a Clerk to the

recommendations for enhancement of

Governors who provides independent advice on

practice. These recommendations have been

matters of governance to Board members.

discussed by the Board of Governors and an action plan developed, which is currently

In governing the operations of the University,

being implemented. The highest priority

the Board of Governors holds a number of

recommendations related to the composition

relevant committees. These committees and

and structure of the Board and Committees,

their respective attendance by each Governor is

including a full review of the constitution

listed opposite:

and composition of the Board, which will be completed this year; an increase in the number of Board meetings to six per year, which was implemented in October 2018; and the separation of the Finance and Audit Committee into two separate components, which was implemented for the start of the 2018/19 academic year. There were also several important recommendations aimed at enhancing the University’s reporting on compliance matters, for example specifically referencing assurance sources that are regularly sent to the Audit Committee upon

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Meeting

Board of Governors

Audit Committee

Standing Committee

HR Committee

Board members

Members

Attendance

Members

Members

Attendance

Members

Attendance

Alan Lovell

Chair

3/3

Chair

3/3



0/2

Win Harris



3/3



3/3



2/2

Tali Atvars



3/3

Cath Beck



3/3

Lesley Black



3/3



2/2

Mark Byford



3/3

2/2

Joy Carter



3/3



3/3

Margaret Chin-Wolf



2/3



2/3

David Cook



3/3

Louise Curth



1/3

Tim Dakin



2/3

Mary Edwards



2/3



2/3

Chris Gaskell



3/3



3/3

Jane Jessop



2/3

Neil Marriott



3/3



3/3

John McKenna



Peter North

Attendance



2/3

Chair



3/3





3/3



2/2



3/3

3/3



0/3



3/3



2/3

Emma Page



3/3



3/3



2/2

Andrew Robinson



3/3



2/2

Elizabeth Stuart



3/3



2/2

Nigel Tubbs



3/3

David Williams



3/3

Chair

3/3





3/3



2/3

Meeting

Nominations Committee

Remuneration Committee

Foundation Committee

Estates Committee

Board members

Members

Attendance

Members

Attendance

Members

Attendance

Members

Attendance

Alan Lovell



3/3



2/2



1/3



2/3

Win Harris

 Chair

2/3



2/2



Tali Atvars Lesley Black

 

 Chair 

3/3



2/2

3/3

3/3



2/3



2/3

3/3

Louise Curth



3/3



3/3

 Chair

3/3

 



Margaret Chin-Wolf David Cook



3/3

Mark Byford Joy Carter

2/3



1/2



2/2



Tim Dakin

 Chair

3/3

Jane Jessop Neil Marriott Peter North

 

2/3

Emma Page Andrew Robinson Elizabeth Stuart

 

3/3 

David Williams

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Senior Management Team

Board about the adequacy and effectiveness of:

The Board of Governors (Board) delegate

• Risk management, control and governance (the risk management element includes the accuracy of the statement of internal control included with the annual statement of accounts);

operational management control of the University to the Senior Management Team (SMT), which is chaired by the Vice-Chancellor.

SMT meets three times each month, in addition

• Economy, efficiency and effectiveness (value for money);

to these meetings, once a month the SMT meets with the Deans of Faculty to have a

• The management and quality assurance of data provided to OfS, HESA, Student Loans Company, and other funding bodies.

meeting focused on the academic delivery of the University and this is titled the University Management Group (UMG).

The Audit Committee meets three times Membership and attendance for all Board

annually with auditors present for at least one

Committees can be found on page 62.

meeting, to review the internal auditors’ Risk Assessment and Plan, to consider the findings

Standing Committee

of internal audit investigations, to review the external audit plan and the external auditors

Standing Committee meets at least three

final audit findings report. It also receives

times a year. The committee has responsibility

and considers reports from the OfS as they

agreeing the agenda for the Board and also the

affect the University’s business and monitors

governance for Strategic planning, including

adherence with regulatory requirements.

Estates planning, Academic affairs, Student

They review our annual financial statements

affairs and Financial affairs. The Committee

together with the accounting policies. Whilst

will undertake a detailed examination of the

senior managers attend meetings of the Audit

annual budget, and make recommendations to

Committee when necessary, they are not

the Board for its approval or further revisions.

members. The Committee meets at least once

Standing Committee is responsible for the

a year with the external and internal auditors

annual review of the five year financial forecast,

without any officers present. They also meet

and monitors our financial and management

once a year without the external and internal

accounts at each meeting. The Committee

auditors to consider the auditors’ performance

is also responsible for the monitoring of the

and to consider and advise the Board on the

treasury management policy, and makes

appointment of the external auditors.

regular reports, and recommendations regarding the treasury management options,

Remuneration Committee

based on the level of risk versus the level of expected return on our portfolio investment.

The Remuneration Committee is an important part of our overall governance arrangement.

Audit Committee

The primary function of the Committee is to determine annually the remuneration of specific

The Audit Committee is responsible

senior staff post holders. It meets at least twice

for undertaking a detailed examination

a year to prepare and decide on the outcomes.

of the annual estimates of income and

A secondary function of the Committee is

expenditure, and the annual accounts, and for

to determine any severance payment to be

recommending to the Board for their approval

made to a senior post holder in respect of the

or otherwise. Members of the Audit Committee

termination of their employment, under the

do not have executive authority. The Audit

terms of a settlement agreement, as and when

Committee is responsible for assuring the

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to determining the emoluments of any of

this arises.

the senior staff within its remit. The current

The Remuneration Committee is committed to

membership and meetings held during the year

complying with all the elements of the CUC’s

are displayed in the table of membership and

guidelines on best practice, as set out in its

attendance of committee meetings shown on

Higher Education Senior Staff Remuneration

page 62.

Code, published in June 2018. The University’s Remuneration Committee seeks to ensure at

It should be noted that the Remuneration

all times that its decisions are based on robust

Committee is chaired by the Chair of the

evidence, including performance against

Human Resources Committee, a non-executive

personal objectives; the performance of the

governor, and not by the Chair of the Board,

University against its KPIs and targets; and the

in line with CUC best practice guidance. The

use of relevant benchmarking comparators.

Director of Human Resources acts as the Secretary to the Remuneration Committee.

The Remuneration Committee recognises it must strike the right balance between

At the Remuneration Committee meeting on

recruiting, rewarding and retaining the best

4 July 2018 the Vice-Chancellor was invited to

senior staff possible in order to deliver the best

attend part of the meeting but only in relation

outcomes for students and the University of

to the salary reviews of her direct reports - the

Winchester as an institution, whilst, at the same

First Deputy Vice-Chancellor; the Deputy Vice-

time, demonstrating effective use of limited

Chancellor and the Assistant Vice-Chancellor

resources and achieving value for money.

- in order to give an overview of their individual performances against personal objectives in

The current senior posts which fall under

the past year. She left the meeting before any

the remit of the University of Winchester

discussions took place amongst Committee

Remuneration Committee (and the current

members about any of the individual senior

named incumbents) are as follows:

management remunerations.

• Vice-Chancellor Professor Joy Carter

The CUC Code on Remuneration had been

• First Deputy Vice-Chancellor Professor Elizabeth Stuart

distributed to all members of the Committee before the meeting. The Chair stressed that

• Deputy Vice-Chancellor Professor Neil Marriott

their decisions should be based on fair, appropriate and justifiable remuneration

• Assistant Vice-Chancellor Colette Fletcher

that demonstrates procedural fairness and

• Clerk to the Board of Governors Nigel Trethewy

sensitivity to the stewardship of University funds to ensure value for money and the protection of

• Dean of Spiritual Life Dr Terry Biddington

the Institution’s reputation.

The four members of the SMT are all eligible

The Committee had access to a range of

to receive a performance related pay element

information to inform its decisions including:

in their annual remuneration review, based on

• the University’s latest overall key performance indicators table and associated ratings and trends, set against agreed strategic targets for the University as a whole;

exceptional performance. The members of the Remuneration Committee are all independent, non-executive members of the University’s Governing Board. Importantly, the Vice-

• the latest position on the HE-wide pay negotiations;

Chancellor is not a member of the Committee and plays no part in the final discussions and

• the current median pay ratio of the Vice

decision making of the Committee in relation

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64

comparison purposes, in the previous year, the

Chancellor to all university staff; • HE comparator remuneration data for senior staff in similar sized universities including UCEA’s senior staff remuneration 2017 survey and the CUC Vice-Chancellor salary survey;

Committee agreed a salary increase of 1.7%

• relevant data regarding external senior staff in public bodies locally (Hampshire County Council and Winchester City Council).

The Remuneration Committee had particular

• all this information was examined, alongside:

performance of the University as a whole; to

• the individual staff development reviews (SDRs), reporting on performance assessment against personal objectives set for the past year;

HE comparator remuneration data for similar

for the Vice-Chancellor, together with a nonconsolidated bonus payment of £4,310.

regard to the Vice-Chancellor’s performance against her own personal objectives; to the

sized sector institutions; to the latest position on the HE-wide pay negotiations; and to her roles in relation to the wider Higher Education

• the Vice-Chancellor offering her own views in relation to her direct reports’ performance in the past year;

sector, which bring credit to the Institution and are often carried out in her own time. The Vice-Chancellor’s emoluments will be reviewed

• the skills and experience of the incumbents; and

again by the Remuneration Committee at its meeting in July 2019.

• the Committee members own observations and insights.

In line with the CUC Code on Senior Staff

The relative size of the University of Winchester

Remuneration, published in June 2018, and

was set against similar sized institutions when

the new OfS Accounts Direction guidance,

benchmarking and referencing comparator

published in October 2018, the Remuneration

data. (The relevant comparator band for

Committee is committed to disclosing two pay

Winchester is the £70-£100m band comparing

ratios, which show the Vice-Chancellor’s pay

11 institutions)

as a multiple of the median earnings of the University’s whole staff (as at 31 July 2018).

The latest position of the HE Sector pay negotiations was noted, including the

For details of the two pay ratios and various

employer’s final pay offer of 2.0% uplift on the

elements of the Vice-Chancellor’s total

salaries of all staff above point 14 on the national

emoluments including pension costs, please

pay spine. It was also noted that additionally, in

refer to note 6 of the financial statements.

relation to incremental progression within pay

The ratios sit within the CUC’s best practice

grades, 66.5% of employees at the University

guidance of a range between 4.5 and 8.5. The

would be affected this year, equating thereby

Committee also noted that the current in-house

to an average additional overall increase per

provision of services such as cleaning, porters

employee of fractionally under 4%.

and security at the University of Winchester have the effect of increasing the pay multiple

Vice-Chancellors Emoluments

in comparison to the pay multiple applicable at

At its meeting in July 2018, the Remuneration

some other universities which outsource some

Committee unanimously agreed the basic

or all of these services.

salary of the Vice-Chancellor, Professor Joy

Nominations Committee

Carter, be increased by 3.5% from £219,184 per annum (2017/18) to £226,855 per annum for the

The Nominations Committee is responsible

year commencing 1 August 2018, comprising a

for the regular review of the skills, knowledge

2.0% basic uplift to mirror the national HE pay

and experience which the Board requires

offer and a consolidated increase of 1.5%. For

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recommending to the Board candidates to fill

new requirement to publish data on trade

vacant Governor positions on the Board, in line

union facility time. This new duty applies to

with the Seven Principles of Public Life and our

all public sector employers. Universities in

Equality and Diversity policy. The Committee

England fall within the definition of public sector

makes recommendations to the Board about

employers for this purpose. The committee led

the membership of Board Committees and

the process for data which we reported on to

those University Committees with Governor

the government in compliance with their new

representation, seeking to ensure that

requirements.

committees have a balanced and appropriate

The data relates to the period 1 April 2017 to 31

range of members. It is responsible for

March 2018.

developing and implementing processes for the recruitment and selection of: the Chancellor;

TRADE UNION FACILITY TIME REPORTING 2017/18

independent Governors; the Chair of the Board; the Vice Chair of the Board; the Vice Chancellor; the SMT; and other Designated Staff

Union officials

positions. It also develops, and oversees the

Number of employees who were relevant union officials during the period

implementation of, the induction, training and development of Governors. The Committee meets a minimum of three times a year: it is

4

Full-time equivalent employee number

chaired by the Vice Chair of the Board and the majority of members are independent non-

3.7

executive Governors.

Percentage of time spent on facility time employees

Human Resources Committee

0%

0

This committee is responsible for the

1-50%

4

51-99%

0

100%

0

governance of employment-related matters, and sets a framework for the pay and conditions and development for our staff. The Committee receive recommendations from the Universities and Colleges Employers’ Association on

Pay bill spent on facility time

conditions of service and take executive action

Total cost of facility time:

or submit recommendations to the Board as appropriate. The Committee also receives

Total pay bill:

recommendations from management arising

£28,795 £39,330,056

Percentage spent on facility time:

from negotiations between the University and the recognised Unions and take action or submit recommendations to the Board of

0.07%

Paid Trade Union activities

Governors as appropriate. This committee acts

Percentage of paid facility time hours spent on paid TU activities:

as the main point of contact for the recognised trade unions, and is also responsible for hearing any employment appeals on behalf of the Board of Governors.

0.00%

Foundation Committee

Trade Union Facility Time Reporting

Foundation Committee is responsible for discussing, monitoring and making

Recent changes in legislation introduced a

UNIVERSITY OF WINCHESTER

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66

Christian foundation to the Board. They annually

regular reports from the Chaplaincy, Foundation

monitor the interpretation and execution of

Music and the Department of Theology,

the University Mission, Values, Strategic Plan

Religion and Philosophy and other reports as

and Foundation Strategy, and foster wider

appropriate.

development of awareness and debate on

Other Committees

matters of faith, and positive relations between faith communities, the Diocese of Winchester,

In addition to the aforementioned committees,

the Cathedral, the local parish and beyond. This

the University holds the following committee

committee also organises and manages the

meetings.

programme of Foundation events and receives OUR UNIVERSITY COMMITTEE STRUCTURE BOARD OF GOVERNORS

SENATE

Student Academic Council

Senior Management Team Planning and Resources Committee

Human Resources Committee

Equality and Diversity Committee

Remuneration Committee

Joint Health and Safety Committee

University Management Team

Senate Academic Development Committee

Faculty Management Groups

Academic Regulations, Policies and Procedures Committee

Nominations Committee

Student Experience Committee

Standing Committee

Graduate Employability Committee and Further Strategy Group

Faculty Academic Committees

Audit Committee

Research Degree Quality Committee

Senate Research an Knowledge Exchange Committee

RKE Ethics Committee

RKE Grants Committee

PG Cert Programme Committees Committee

Programme Committee Honorary Award Committee

Estates Committee

Faculty RKE Committee

Foundation Committee

KEY Sub-committee of . . .

Reporting to . . . .

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Student/Student Union representation

STATEMENT OF INTERNAL CONTROLS

on an on-going process designed to identify risks to the achievement of policies, aims and objectives, to evaluate the nature and extent of those risks and to manage them efficiently, effectively and economically. This process has been in place for the year ended 31 July 2018 and up to the date of approval of the Financial Statements, and accords with HEFCE and OfS guidance.

1. The Board of Governors has responsibility for maintaining a sound system of internal controls that supports the achievement of policies, aims and objectives, while safeguarding the public and other funds and assets for which they are responsible, in accordance with the responsibilities assigned to the governing body in the OfS terms and conditions of funding for higher education institutions dated 29 March 2018 (OfS 2018.15).

6. The Board of Governors has responsibility for reviewing the effectiveness of the system of internal controls. The following processes have been established: -- The Board currently meets at regular intervals of at least three times per year to consider the plans and strategic direction of the University.

2. Since the introduction of the OfS, which took on the funding and regulation of the Higher Education sector from 1 April 2018, the University has complied with the ‘carried forward’ powers and duties of the OfS including:

-- The Board receives periodic reports from the Chair of the Audit Committee concerning internal controls, and it requires regular reports from managers on the steps they are taking to manage risks in their areas of responsibility, including progress reports on key projects. The Board and ViceChancellor receive an annual report from the Chair of the Audit Committee covering the business of the Committee over that year.

-- The terms and conditions of OfS funding, -- The terms and conditions of Research England Grant funding, and -- The requirements set out in the Agreement on Institutional Designation, as outlined in the OfS terms and conditions of funding for higher education institutions.

-- The Board has delegated to the Audit Committee some of the responsibility for providing oversight of risk management.

During this ‘transition phase’ the University has complied with the terms and conditions of

-- The Audit Committee receives regular reports from the internal auditors, which include their independent opinion on the adequacy and effectiveness of the University’s system of internal controls, together with recommendations for improvement.

funding made under section 65 of the Further and Higher Education Act 1992, as amended by a statutory instrument setting out the transitional arrangements, the Higher Education and Research Act 2017 (Consequential, Transitional, Transitory and Saving Provisions)

-- A regular programme of review is undertaken to identify and keep up to date the record of risks facing the organisation.

Regulations 2018.

3. The University complies with the CUC Code of Practice and refers to best practice guidance, including guidance from BUFDG.

-- Risk awareness is facilitated at University and operational levels as appropriate to the risk. Risk management is embedded in the operation of the University.

4. The system of internal controls is designed to manage rather than eliminate the risk of failure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness.

-- A system of key performance and risk indicators has been developed.

-- A robust risk prioritisation methodology based on risk ranking and cost-benefit analysis has been established.

5. The system of internal controls is based

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-- An organisation-wide Risk Register, which is informed by HEFCE’s guidance ‘Risk Management: A Guide to good practice for higher education institutions’, is maintained.

The Risk Register identifies those risks which might prevent the University from achieving its strategic priorities (as outlined on page 37 Understanding Our Risks).

pound (£1.00) towards the costs of dissolution and the liabilities incurred by the University while he or she was a Governor.

GOING CONCERN After making appropriate enquiries, the Board

-- Reports are received from budget holders, department heads and project managers on internal control activities.

of Governors has a reasonable expectation that the University has adequate resources to continue in operational existence for the foreseeable future. For this reason, they

7. The Board’s review of the effectiveness of the system of internal controls is informed by the internal audit service, which operates to standards defined in OfS Accounts Direction.

HEFCE performed its Annual Assessment of Institutional Risk for 2016/17 which was notified on 7 February 2018. The University of Winchester was rated as “not at high risk”

by HEFCE, being the lowest risk category achievable. It was also informed by a HEFCE Assurance Review during the year which presented a conclusion that overall HEFCE were able to place reliance on the University’s accountability information.

continue to adopt the going concern basis in preparing the financial statements.

Signed on behalf of the Board of Governors:

A C Lovell Chair of Board of Governors

8. The internal auditors submit regular reports on the adequacy and effectiveness of the University’s system of risk management, internal controls and corporate governance, and economy, efficiency and effectiveness (value for money) with recommendations for improvement.

Professor J Carter Vice-Chancellor Date

9. The Board’s review of the effectiveness of the system of internal controls is also informed by the work of the executive managers within the University, who have responsibility for the development and maintenance of the internal control framework, and by comments made by the external auditors in their management letter and other reports.

14 November 2018

GOVERNORS’ LIABILITY ON DISSOLUTION As per section 7 of the Memorandum and Articles of Association every Governor of the University undertakes, if the University is dissolved while he or she is a Governor, or within one year afterwards, to pay up to one

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Independent Auditors’ Report to the Board of Governors of the University of Winchester

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70

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS Opinion We have audited the financial statements of the University of Winchester (“the University”) for the year ended 31 July 2018 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Reserves, Cash Flow Statement and related notes.

In our opinion the financial statements: • give a true and fair view of the state of the University’s affairs as at 31 July 2018, and of the University’s income and expenditure, gains and losses and changes in reserves, and of the University’s cash flows, for the year then ended; • have been properly prepared in accordance with UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, and with the 2015 Statement of Recommended Practice – Accounting for Further and Higher Education; • meet the requirements of the Accounts Direction dated 19 June 2018 issued by the OfS; and • have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the group in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and

@regishab

appropriate basis for our opinion.

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Going concern

Matters on which we are required to report by exception

We are required to report to you if we have concluded that the use of the going concern

Under the Companies Act 2006, we are

basis of accounting is inappropriate or there is

required to report to you if, in our opinion:

an undisclosed material uncertainty that may

• adequate accounting records have not been kept by the University, or returns adequate for our audit have not been received from branches not visited by us; or

cast significant doubt over the use of that basis for a period of at least twelve months from the date of approval of the financial statements. We have nothing to report in these respects.

• the University’s financial statements are not in agreement with the accounting records and returns; or

Other information

• certain disclosures of directors’ remuneration specified by law are not made; or

The Directors are responsible for the other information, which comprises the Strategic

• we have not received all the information and explanations we require for our audit.

Review incorporating the Operational Review, the Financial Review and the Statement of

We have nothing to report in these respects.

Corporate Governance and Internal Control. Our opinion on the financial statements does not

Board of Governors responsibilities

cover the other information and, accordingly, we do not express an audit opinion or, except as

As explained more fully in their statement set

explicitly stated below, any form of assurance

out on page 53, the Board of Governors (who

conclusion thereon.

are the Directors of the University company for the purposes of company law) are responsible

Our responsibility is to read the other

for: the preparation of the financial statements

information and, in doing so, consider whether,

and for being satisfied that they give a true and

based on our financial statements audit work,

fair view; such internal control as it determines

the information therein is materially misstated

is necessary to enable the preparation of

or inconsistent with the financial statements

financial statements that are free from material

or our audit knowledge. Based solely on that

misstatement, whether due to fraud or error;

work:

assessing the group and parent University’s

• we have not identified material misstatements in the other information;

ability to continue as a going concern,

• in our opinion the information given in the Strategic Review incorporating the Operational Review, the Financial Review and the Statement of Corporate Governance and Internal Control, which together constitute the strategic report and the directors’ report for the financial year, is consistent with the financial statements; and

going concern; and using the going concern

• in our opinion those reports have been prepared in accordance with the Companies Act 2006.

Our objectives are to obtain reasonable

disclosing, as applicable, matters related to basis of accounting unless it either intends to liquidate the group or the parent University or to cease operations, or has no realistic alternative but to do so.

Auditors’ responsibilities

assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue our opinion in an auditors’ report.

Reasonable assurance is a high level of assurance, but does not guarantee that an audit

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72

THE PURPOSE OF OUR AUDIT WORK AND TO WHOM WE OWE OUR RESPONSIBILITIES

conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions

This report is made solely to the Board of

of users taken on the basis of the financial

Governors, in accordance with Chapter 3 of Part

statements.

16 of the Companies Act 2006 and paragraph

A fuller description of our responsibilities is

13(2) of the University’s Articles of Government

provided on the FRC’s website at

and section 124B of the Education Reform Act

www.frc.org.uk/auditorsresponsibilities

1988. Our audit work has been undertaken so that we might state to the Board of Governors those matters we are required to state to them

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

in an auditors’ report and for no other purpose.

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the University and the Board of

We are required to report on the following

Governors for our audit work, for this report, or

matters under the OfS and Research England

for the opinions we have formed.

Audit Codes of Practice issued under the Further and Higher Education Act 1992.

In our opinion, in all material respects: • funds from whatever source administered by the Group or the University for specific purposes have been properly applied to those purposes and managed in accordance with relevant legislation;

Rees Batley Senior Statutory Auditor Date: 21 November 2018

• funds provided by the OfS and Research England have been applied in accordance with the terms and conditions attached to them; and

For and on behalf of: KPMG LLP

• funds provided by HEFCE have been applied in accordance with the Memorandum of Assurance and Accountability and any other terms and conditions attached to them.

Statutory Auditor Chartered Accountants Office Address: KPMG LLP, Gateway House, Tollgate, Chandler’s Ford, Eastleigh, Hampshire. SO53 3TG

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Financial Statements Year ended 31 July 2018

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74

UNIVERSITY OF WINCHESTER STATEMENT OF COMPREHENSIVE Statement of Comprehensive Income Year ended 31 July 2018 Year Ended 31 July 2018

INCOME

2018

2017

£'000

£'000

Notes Income Tuition fees and education contracts Funding body grants Research grants and contracts Other income Investment income Total income before endowments and donatons

1 2 3 4 5

59,798 3,586 641 14,673 284 78,982

57,362 3,392 494 13,498 240 74,986

Endowments and donations

5

1

6

78,983

74,992

41,419 28,803 4,844 1,900 76,966

38,828 24,507 4,698 1,741 69,774

2,017

5,218

3,560

2,280

Total comprehensive income for the year

5,577

7,498

Represented by: Endowment Comprehensive Income for the year Unrestricted comprehensive income for the year

1 5,576

6 7,492

5,577

7,498

Total income Expenditure Staff costs Other operating expenses Depreciation Interest and other finance costs Total expenditure

6 7 9 8

Surplus for the year Actuarial gain in respect of pension schemes

All items of income and expenditure relate to continuing activities.

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STATEMENT OF CHANGES IN RESERVE UNIVERSITY OF WINCHESTER Statement Year endedof 31Changes July 2018in Reserves Year Ended 31 July 2018

Endowment

Income and expenditure account

Revaluation reserve

Total

£'000

£'000

£'000

£'000

38

47,725

88,423

136,186

Income and expenditure surplus

1

2,016

-

2,017

Other comprehensive income

-

3,560

-

3,560

Transfers between revaluation and income and expenditure reserves

-

1,976

(1,976)

-

Total comprehensive income for the year

1

7,552

(1,976)

5,577

39

55,277

86,447

141,763

Balance at 31 July 2017

Balance at 31 July 2018

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UNIVERSITY OF WINCHESTER A company limited by guarantee and registered in England and Wales.

Registration number: 05969256 BALANCE SHEET Balance Sheet at 31 July Year ended 31 July 2018 2018

Non-current assets Intangible assets Tangible fixed assets Investment Property and Investments

Notes

2018 £'000

2017 £'000

9 10

175 171,238 635

58 163,999 658

172,048

164,715

Current assets Stock Trade and other receivables Investments Cash and cash equivalents

11 12 13

42 3,298 27,582 13,564 44,486

37 3,254 12,534 21,766 37,591

Less: Creditors: amounts falling due within one year

14

(11,182)

(9,242)

33,304

28,349

205,352

193,064

Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year

15

(48,763)

(39,626)

Provisions Pension provisions

16

(14,826)

(17,252)

141,763

136,186

39

38

Unrestricted Reserves Income and expenditure account Revaluation reserve Total Unrestricted Reserves

55,277 86,447 141,724

47,725 88,423 136,148

Total Reserves

141,763

136,186

Total net assets Restricted Reserves Income and expenditure - endowment reserve

The financial statements on pages 66 to 88 were approved and authorised for issue by the Board of Governors onstatements 14 November 2018, and were on its behalf The financial on pages 75 and 98signed were approved andby: authorised for issue by the Board of

Governors on 14 November 2018 and were signed on its behalf by: ……………………………………… ………………………………………

Professor J Carter A C Lovell A C Lovell Professor J Carter Chair of Board of Governors Vice-Chancellor Chair of Board of Governors Vice-Chancellor The notes on pages 70 to 88 form part of these financial statements.

The notes on pages 85 to 98 form part of these financial statements.

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UNIVERSITY OF WINCHESTER CASH FLOW STATEMENT Cash Flow Statement Year ended 31ended July 2018 For the year 31 July 2018

31 July 2018 ÂŁ'000

31 July 2017 ÂŁ'000

Cash flow from operating activities Surplus for the year

2,017

5,218

Adjustment for non-cash items Amortisation Depreciation Impairments Fair value gain on Investment Property (Increase) / Decrease in stock Increase in debtors Increase in creditors due within one year Increase in creditors due after one year Increase in provisions Cashflow from operating activities

92 4,844 (60) (5) (64) 995 722 8,541

22 4,698 10 8 (380) 710 36 726 11,048

Adjustment for investing or financing activities Investment income Interest payable Endowment income Gain on sale of fixed assets Capital grant income Net cash inflow from operating activities

(172) 1,900 (1) (5) (324) 9,939

(189) 1,741 (6) (318) 12,276

5 624 (22,500) 7,452 197 (209) (10,912) (25,343)

520 (31) 2,500 188 (83) (4,490) (1,396)

(457) (1,038) 10,000 (1,041) 1 (263) 7,202

(444) (1,048) (954) 6 (253) (2,693)

(8,202)

8,187

21,766 13,564

13,579 21,766

Notes

Cash flows from investing activities Proceeds from sale of fixed assets Capital grant receipts New investment deposits Investment deposits withdraws Investment income New non-current asset investments Payments made to acquire intangible assets Payments made to acquire fixed assets

Cash flows from financing activities Interest paid Interest element of finance lease payments New loans Repayments of amounts borrowed Endowment income Capital element of finance lease payments

(Decrease) / Increase in cash and cash equivalents in the year Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year

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STATEMENT OF PRINCIPAL ACCOUNTING POLICIES

The financial statements do not include the income and expenditure of Winchester Student Union as the University does not exert significant

FOR THE YEAR ENDED 31 JULY 2018

control or dominant influence over policy Basis of preparation

decisions.

These financial statements have been

Income recognition

prepared in accordance with the Statement of Recommended Practice (SORP): Accounting

Income from the sale of goods or services is

for Further and Higher Education 2015 and in

credited to the Statement of Comprehensive

accordance with Financial Reporting Standards

Income (SCI) when the goods or services are

(FRS) 102. The University is a public benefit entity

supplied to the external customers or the terms

and therefore has applied the relevant public

of the contract have been satisfied.

benefit requirement of FRS 102. The financial

Fee income is stated gross of any expenditure

statements are prepared in accordance with

which is not a discount and credited to the

the historical cost convention (modified by

Statement of Comprehensive Income (SCI)

the revaluation of fixed assets). The financial

over the period in which students are studying.

statements have been prepared on a going

Where the amount of the tuition fees is

concern basis. This assessment has been

reduced, by a discount for prompt payment,

informed by the University’s future financial

income receivable is shown net of the discount.

forecasts/plans and its healthy cash balances.

Bursaries and scholarships are accounted for

In preparing the financial statements of the

gross as expenditure and not deducted from

University, the functional and presentational

income.

currency is sterling. Transactions in currencies

Taxation status

other than the functional currency are recognised at the rates of exchange prevailing at the dates of

The University is an exempt charity within

the transactions. No monetary or non-monetary

the meaning of Part 3 of the Charities Act

items are carried at denominations other than

2011 and is considered to pass the tests set

sterling. The financial statements are presented

out in Paragraph 1 Schedule 6 to the Finance

in thousands of pounds sterling unless stated

Act 2010 and therefore meets the definition

otherwise.

of a charitable company for UK Corporation Tax purposes. Accordingly, the University is

Basis of consolidation

potentially exempt from taxation in respect

At 31 July 2018 the University held significant

of income or capital gains received within

controlling interest in Winchester Business

categories covered by section 478-488 of the

School Limited, Winchester Management

Corporation Tax Act 2010 (CTA 2010) or section

School Limited and the University of Winchester

256 of the Taxation of Chargeable Gains Act,

Academy Trust due to a majority of the share

to the extent that such income or gains are

capital of the entities being held by employees of

applied to exclusively charitable purposes.

the University of Winchester. These companies

The University receives no similar exemption in

have been dormant since incorporation,

respect of Value Added Tax. Irrecoverable VAT

therefore the finance statements do not

on inputs is included in the cost of such inputs.

consolidate the results of these companies.

Any irrecoverable VAT allocated to fixed assets

Each company is registered in England at The

is included in their cost.

University of Winchester, Winchester, SO22 4NR.

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Grant funding

Capital grants

Government revenue grants, including funding

Government capital grants are recognised in

council block grant and research grants, are

income over the expected useful life of the

recognised in income over the periods in which

asset. Other capital grants are recognised in

the University recognises the related costs for

income when the University is entitled to the

which the grant is intended to compensate.

funds subject to any performance related

Where part of a government grant is deferred,

conditions being met.

it is recognised as deferred income within

Accounting for retirement benefits

creditors and allocated between creditors due within one year and due after more than one

The University contributes to the Local

year as appropriate.

Government Pension Scheme (LGPS), the Teachers’ Pension Scheme (TPS) and the

Grants (including research grants) from non-

University Superannuation Scheme (USS). The

government sources are recognised in income

schemes are defined benefit schemes but the

when the University is entitled to the income

TPS and USS schemes are multi-employer

and performance related conditions have

schemes where it is not possible to identify

been met. Income received in advance of

the assets of the scheme that are attributable

performance related conditions being met is

to the University. Accordingly these schemes

recognised as deferred income within creditors

are accounted for as a defined contribution

on the balance sheet and released to income as the conditions are met.

basis and contributions to the schemes are

Donations and endowments

which they are payable.

Non exchange transactions without

The University is able to identify its share

performance related conditions are donations

of the assets and liabilities of the LGPS and

and endowments. Donations and endowments

accordingly the University recognises its share

with donor imposed restrictions are recognised

of the scheme’s assets and liabilities in its

in income when the University is entitled to the

balance sheet.

recognised as expenditure in the period to

funds.

A liability is recorded within provisions for any

Income is retained within the restricted reserve

contractual commitment to fund past deficits

until such time that it is utilised in line with

within the USS scheme.

such restrictions at which point the income is

Employment benefits

released to general reserves through a reserve transfer.

Short term employment benefits such as salaries and compensated absences are

Donations with no restrictions are recognised

recognised as an expense in the year in which

in income when the University is entitled to the funds.

the employees render service to the University.

Investment income and appreciation of

as the additional amount the University expects

endowments is recorded in income in the

to pay as a result of the unused entitlement.

Any unused benefits are accrued and measured

year in which it arises and as either restricted

Enhanced Pensions

or unrestricted income according to the terms or restrictions applied to the individual

The actual cost of any enhanced on-going

endowment fund.

pension to a former member of staff is paid by a

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80

university annually. An estimate of the expected

August 2014 were valued by Alder King. The

future cost of any enhancement to the on-going

valuations were on a depreciated replacement

pension of a former member of staff is charged

cost basis for specialist assets and at market

in full to the University’s income in the year that

value where this was reasonable to obtain.

the member of staff retires. In subsequent years

The University followed the transitional

a charge is made to provisions in the balance

arrangements as at 31 July 2014 and does not

sheet using a basis provided by the funding

intend to carry out regular revaluations of these

bodies.

assets in the future.

Finance leases

Depreciation and impairment losses are subsequently charged on the revalued amount.

Leases in which the University assumes substantially all the risks and rewards of

Subsequent costs incurred that enhance the

ownership of the leased asset are classified as

asset are capitalised and recognised at cost.

finance leases. Leased assets acquired by way

Freehold land is not depreciated as it is

of finance lease and the corresponding lease

considered to have an indefinite useful life.

liabilities are initially recognised at an amount equal to the lower of their fair value and the

Buildings, plant and machinery are depreciated

present value of the minimum lease payments

on a straight line basis over their expected

at the inception of the lease.

useful lives at the date of the 1 August 2014 valuation

Minimum lease payments are apportioned between the finance charge and the reduction

Buildings: between 10 and 50 years

of the outstanding liability. The finance charge is

Plant and Machinery: between 5 and 20 years

allocated to each period during the lease term so as to produce a constant periodic rate of

No depreciation is charged on assets in the

interest on the remaining balance of the liability.

course of construction and finance costs which are directly attributable to the construction of

Operating leases

land and buildings are capitalised as part of those assets.

Costs in respect of operating leases are charged to the Statement of Comprehensive

Equipment

Income in the period in which they are incurred.

Equipment, including computers and software,

Fixed assets

costing less than de minimis of ÂŁ5,000 per individual item are recognised as expenditure.

Where parts of a fixed asset have different

All other equipment is capitalised.

useful lives, they are accounted for as separate items of fixed assets. Fixed assets are stated

Capitalised equipment is stated at cost and

at cost less accumulated depreciation and

depreciated over its expected useful life as

accumulated impairment losses. Only items

follows:

of capital expenditure with a value of ÂŁ5,000 or

IT equipment: 3 years

more per individual item are recognised as fixed

Motor vehicles: 5 years

assets.

Fixtures and fittings: 10 years

Land and buildings

Depreciation methods, useful lives and residual values are reviewed at the date of preparation

Land and buildings that were owned by the

of each Balance Sheet.

University at the FRS 102 transition date of 1

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Borrowing costs

Provisions, contingent liabilities and contingent assets

Borrowing costs are recognised as expenditure in the period in which they are incurred.

Provisions are recognised in the financial statements when:

Intangible assets

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

Intangible assets are amortised over a period of between 3 and 10 years representing the subject to impairment review each year.

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

Investment Properties

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

estimated economic life of the assets and are

The amount recognised as a provision is

Investment property consists of land and

determined by discounting the expected future

buildings held for rental income or capital

cash flows at a rate that reflects risks specific to

appreciation (or both) rather than for use in

the liability.

delivering services. Investment properties are revalued at 31 July each year at market value

A contingent liability arises from a past event

with movements recognised in the Statement

that gives the University a possible obligation

of Comprehensive Income (SCI).

whose existence will only be confirmed by the occurrence or otherwise of uncertain

Investments

future events not wholly within the control of

Non-current asset investments are held on

the University. Contingent liabilities also arise

the Balance Sheet at fair value unless it is not

in circumstances where a provision would

possible to determine a value in which case

otherwise be made but either it is not probable

they are held at amortised cost less impairment.

that an outflow of resources will be required

Current asset investments are included in the

or the amount of the obligation cannot be

balance sheet at fair value.

measured reliably.

Stocks

A contingent asset arises where an event has taken place that gives the University a possible

Stocks are valued at the lower of cost and net

asset whose existence will only be confirmed

realisable value.

by the occurrence or otherwise of uncertain future events not wholly within the control of

Cash and cash equivalents

the University. Contingent assets and liabilities are not recognised in the Balance Sheet but are

Cash includes cash in hand, deposits repayable on demand and overdrafts.

disclosed in the notes.

Short term deposits that exist at the balance

Reserves

sheet date that have a maturity term of

Reserves are classified as restricted or

less than 3 months are classified as cash

unrestricted. Restricted endowment reserves

equivalents. Those with more than 3 months are

include balances which, through endowment

classified as non-current investment assets.

to the University, are held as a permanently restricted fund which the University must hold in perpetuity.

Other restricted reserves include balances

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82

where the donor has designated a specific

University is exposed to minimal risk or enjoys

purpose and therefore the University is

minimal economic benefit related to the

restricted in the use of these funds.

transaction.

Key Estimates and Judgements In preparing these financial statements, management have made the following judgements: Tangible fixed assets Determine whether there are indicators of impairment of the University’s assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.

Local Government Pension Scheme The present value of the Local Government Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions, which are disclosed in Note 24, will impact the carrying amount of the pension liability. Furthermore a roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 2016 has been used by the actuary in valuing the pensions liability at 31 July 2018. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability.

Agency arrangements The University acts as an agent in the collection and payment of discretionary support funds.

Related payments received from the funding bodies and subsequent disbursements to students are excluded from the income and expenditure of the University where the

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NOTES TO ACCOUNTS FOR YEAR ENDED 31 JULY 2018

Notes to accounts Year ended 31 July 2018

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84

Notes to the Accounts

NOTES TO31ACCOUNTS FOR YEAR ENDED 31 JULY 2018 for the year ended July 2018 Note 1

Tuition fees and education contracts Full-time home and EU students Full-time international students Part-time students Self-financing courses

Note 2

Funding body grants Recurrent grant from HEFCE Recurrent research grant Specific grants

2018 £'000 51,860 4,061 1,597 2,280 59,798

2017 £'000 49,010 4,355 1,624 2,373 57,362

2018 £'000 1,848 791 947 3,586

2017 £'000 2,145 772 475 3,392

From April 2018 the recurrent grant from HEFCE was received from the Office for Students totalling £446k, and from April 2018 the recurrent research grant was received from UK Research and Innovation totalling £279k.

Note 3

Research grants and contracts Grants

Note 4

Other income Residences, catering and conferences Other services rendered Other income

Note 5

Endowment and Investment Income Income from short term investments Fair value gain on Investment Property Income from Investment Property Income from endowments

Note 6

Staff costs Staff Costs : Salaries Social security costs Other pension costs Apprenticeship levy Total Salaries include redundancy payments of £198,675 (2016/17: £164,055)

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2018 £'000 641

2017 £'000 494

2018 £'000 12,548 229 1,896 14,673

2017 £'000 11,597 230 1,671 13,498

2018 £'000 172 60 52 1 285

2017 £'000 189 51 6 246

2018 £'000

2017 £'000

32,595 3,125 5,553 146 41,419

30,610 2,925 5,247 46 38,828

NOTES TO ACCOUNTS FOR YEAR ENDED 31 JULY 2018 Note 6

Staff costs (continued) The highest paid director is the Vice-Chancellor whose emoluments are: 2018 £ 219,184 4,310 39,452 262,946 4,698 2,733 270,377

Basic salary Performance related pay Additional allowance Sub-total Pension Contributions Salary sacrifice arrangements Other taxable benefits Total emoluments including pension costs

2017 £ 215,520 38,793 254,313 4,526 2,450 261,289

Additional allowance represents payments payments in lieu of pension contributions. The Vice-Chancellor does not benefit from employer pension contributions. Other taxable benefits represents payments made to a private medical health scheme.

The Vice-Chancellor's basic salary, expressed as a multiple of all other employees, is 6.7 times the median pay of staff, where the median pay is calculated on a full-time equivalent basis for the salaries paid by the University of its staff.

The Vice-Chancellor's remuneration, expressed as a multiple of all other employees, is 6.9 times the median total remuneration of staff, where the median total remuneration is calculated on a full-time equivalent basis for the total remuneration by the University of its staff.

The basic salary and remuneration ratios have been calculated excluding atypical workers and agency staff.

The University does not currently record timesheets locally for agency staff and does not have sufficient full time equivalent data to accurately report the pay ratios including atypical and agency workers.

In accordance with the OfS Accounts Direction (OfS 2018.26) 15 c, the University is required to provide an explanation of the process adopted for judging the performance and total remuneration package for the head of the institution, the Vice-Chancellor.

The remuneration of the Vice-Chancellor is based on robust evidence, comprising a combination of: • Performance against personal objectives • The performance of the University against its KPIs and targets • Relevant benchmarking comparators In relation to benchmarking, particular attention is given to comparator data for the heads of providers of similar sized higher education sector institutions. Account is also taken of the outcome of higher education sector pay negotiations for staff on the national pay spine.

Further information regarding the Vice-Chancellors remuneration is outlined under 'Vice-Chancellors Emoluments' on page 65.

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NOTES TO ACCOUNTS FOR YEAR ENDED 31 JULY 2018 Notes to the Accounts Note 6

Staff costs (continued) The number of staff with a basic salary exceeding £100,000 per annum, excluding pension contributions, is:

£100,000 £105,000 £110,000 £115,000 £120,000 £125,000

to to to to to and

£104,999 £109,999 £114,999 £119,999 £124,999 above

Average staff numbers by major category :

By Headcount Academic Administration

By full time equivalent staff (FTE) Academic Administration

2018 Number

2017 Number

1 1 2

1 1 2

Headcount 422 546 968

Headcount 407 524 931

FTE 340 463 803

FTE 329 446 775

£'000 -

£'000 -

Compensation for loss of office payable to a senior post-holder: Compensation payable recorded within staff costs

Key management personnel Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the University and include the Vice-Chancellor, the First Deputy Vice-Chancellor, the Deputy Vice-Chancellor, the Assistant Vice-Chancellor and members of the Board of Governors who are also members of staff of the University.

2018 2017 The number of key management personnel

8

8

2018 £'000 837 104 50 991

2017 £'000 775 96 46 917

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

Salaries Social security costs Other pension costs Key management personnel compensation

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NOTES TO ACCOUNTS FOR YEAR ENDED 31 JULY 2018 Note 7

Analysis of total expenditure by activity Residences, catering and conferences.

Consumables Books and Periodicals Fellowships, bursaries, scholarships and prizes Heat, light,water and power Repairs and general maintenance Grants to Winchester Students Union Rentals Other expenses

Surplus before taxation is stated after charging: Auditor's remuneration: External auditor's remuneration in respect of audit services External auditor's remuneration in respect of non-audit services Internal Audit

Note 8

Interest and other finance costs Interest on bank loans Interest on finance leases Net interest on defined benefit scheme

Note 9

2018 £'000 5,023 1,667 1,616 2,910 1,232 2,704 300 284 13,067 28,803

2017 £'000 3,833 1,520 1,770 2,531 1,138 2,526 290 229 10,670 24,507

2018 £'000

2017 £'000

31 31 34

31 19 13

2018 £'000

2017 £'000

455 1,033 412 1,900

442 886 413 1,741

Fixed Assets

Cost and valuation At 1 August 2017 Additions Transfers Impairment Disposals At 31 July 2018 Depreciation At 1 August 2017 Charge for the year Disposals At 31 July 2018 Net book value At 31 July 2018 At 31 July 2017

Freehold Land and Buildings £'000

Leasehold Land and Buildings £'000

Assets in the Course of Construction £'000

£'000

149,187 1,128 669 150,984

27,468 27,468

398 109 (15) 492

3,736 772 4,508

3,049 10,074 (669) 12,454

183,838 12,083 (15) 195,906

10,745 3,778 14,523

6,145 485 6,630

267 72 (15) 324

2,682 509 3,191

-

19,839 4,844 (15) 24,668

136,461

20,838

168

1,317

12,454

171,238

138,442

21,323

131

1,054

3,049

163,999

UNIVERSITY OF WINCHESTER

Equipment, Motor Furniture and Vehicles Fittings £'000 £'000

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INTEGRATED ANNUAL REPORT

Total

88

NOTES TO ACCOUNTS FOR YEAR ENDED 31 JULY 2018 Notes to the Accounts

Note 9

Fixed Assets (continued) The net book value of Leasehold Land and Buildings includes an amount of £20,838 (2017: £21,323k) in respect of assets held under finance leases The University's freehold land and buildings were revalued as at 31st July 2014 by Alder King LLP. The valuations were prepared in accordance with the RICS Valuation - Professional Standard December 2014 ('Red Book'), FRS102 and the SORP for Further and Higher Education. The University took the transitional provision under FRS102 section 35 to elect to use fair value as deemed cost. The valuation of each part of University of Winchester was on the following bases of value and assumptions: - Owner-occupied property - to Fair Value ('FV') assuming that the property would be sold as part of the continuing business - Specialised property - to FV using the depreciated replacement cost ('DRC') approach and assuming that the property would be sold as part of the continuing business

Note 10 Investments and Investment Property The University holds two classes of investments as follows:

10 a)

Investments Hampshire Community Bank

10 b)

Investment Property Opening balance Additions to investment property in the year Reduction of investment property in the year Fair value gain / (loss) on Investment Property Closing balance Total Investments and Investment Property

2018 £'000 100 100

2017 £'000 100 100

2018 £'000 558 (83) 60 535

2017 £'000 485 83 (10) 558

635

658

The investment property fair value gain of £60k is for a single property and is based on a valuation by Alder King LLP, Pembroke House, 15 Pembroke Road, Bristol, BS8 3BA. The investment property was valued on 31/7/2018.

The valuation report was prepared in accordance with the RICS Valuation – Global Standards 2017 incorporating the International Valuation Standards (“Red Book”) and the RICS Professional Standards January 2014 (revised April 2015), FRS 102 and the SORP (For Further and Higher Education).

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NOTES TO ACCOUNTS FOR YEAR ENDED 31 JULY 2018 Notes to the Accounts

Note 11 Trade and other receivables Amounts falling due within one year: Debtors Prepayments and accrued income

Note 12 Current Investments Nationwide 95 Day Saver Lloyds Fixed Rate Bonds Lloyds 175 Day Account Triodos 95 Day Deposit Account

Note 13 Cash and cash equivalents Cash and cash equivalents

2018 £'000

2017 £'000

1,024 2,274 3,298

1,502 1,752 3,254

2018 £'000 12,570 5,007 10,005 27,582

2017 £'000 5,034 7,500 12,534

2018 £'000 13,564 13,564

2017 £'000 21,766 21,766

2018 £'000 1,065 274 792 1,266 995 6,446 21 323 11,182

2017 £'000 1,006 263 371 991 914 5,345 34 318 9,242

Note 14 Creditors : amounts falling due within one year Mortgages and unsecured loans Obligations under finance lease Trade payables Other Payables Social security and other taxation payable Accruals and deferred income Loans repayable to Funding Council Deferred income - Government capital grants

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NOTES TO ACCOUNTS FOR YEAR ENDED 31 JULY 2018 Notes to the Accounts

Note 15 Creditors : amounts falling due after more than one year

Mortgages and unsecured loans Obligations under finance lease Funding Council loan Deferred Capital Grants

2018 £'000 14,658 24,341 32 9,732 48,763

2017 £'000 5,723 24,615 54 9,234 39,626

2018 £'000 1,111 1,790 11,757 14,658

2017 £'000 1,065 2,005 2,653 5,723

Maturity of debt 15 a)

Mortgages and unsecured loans are repayable as follows: Due between one and two years Due between two and five years Due in five years or more Due after more than one year

Throughout the financial year the University had the following borrowing arrangements in place: 1. A £4.7m loan from Allied Irish Bank, amortising over 25 years from January 1996, at a 6.43% rate of interest, specifically for the purpose of building student accommodation. £0.981m remains outstanding at 31 July 2018.

2. A £5.9m loan from Allied Irish Bank, amortising over 19 years from March 2002, at a 6.30% rate of interest, specifically for the purpose of renovating a listed teaching facility. £1.244m remains outstanding as at 31 July 2018.

3. A £5.0m loan from Allied Irish Bank, amortising over 25 years from August 2006, at an interest rate of 6.25% (£2.7m) and 5.13% (£2.3m), specifically for the purpose of building the University Centre. £3.498m remains 8 outstanding as at 31 July 2017.

The Allied Irish Bank loans are at fixed rates which are repayable by instalments in the period to 2031 and are secured on part of the University's freehold property.

4. A £30.0m loan facility from Triodos Bank specifically for the purpose of building the West Downs development. In May 2018 £10.0m of the facility was utilised, the loan amortising over 25 years at a 3.09% rate of interest, fixed until 1st June 2028. The £10.0m remains outstanding as at 31 July 2018.

15 b)

Finance leases The finance lease obligations that the University is committed to are as follows: 2018 £'000 274 1,219 23,122 24,615

Between one and two years Between two and five years In five years or more

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2017 £'000 263 1,170 23,445 24,878

Notes YEAR to the Accounts NOTES TO ACCOUNTS FOR ENDED 31 JULY 2018 LGPS Scheme USS Scheme £'000 £'000 16,350 510 1,220 0 (3,560) (76) 14,010 434

Note 16 Provisions for liabilities At 31 July 2017 Utilised in year Charge to Income and Expenditure Account At 31 July 2018

Enhanced Pensions £'000 392 (40) 30 382

Total £'000 17,252 1,180 (3,606) 14,826

USS deficit The obligation to fund the past deficit on the Universities Superannuation Scheme (USS) arises from the contractual obligation with the pension scheme for total payments relating to benefits arising from past performance. Management have assessed future employees within the USS scheme and salary payment over the period of the contracted obligation in assessing the value of this provision.

Enhanced Pension Provision The enhanced pension provision relates to the cost of staff that have already left the University employ from which the University cannot reasonably withdraw at the balance sheet date. This provision has been recalculated in accordance guidance issued by the funding bodies.

The principal assumptions for this calculation are: 2018 2017 Price inflation 7.74% 6.32%

Note 17 Lease obligations Payable during the year Future minimum lease payments due: Payable not later than 1 year Later than 1 year and not later than 5 years Later than 5 years Total lease payments due

2018 £'000

2017 £'000

1,880

1,895

1,917 5,727 32,825 40,469

1,889 5,604 34,708 42,201

337

Receivable during the year Future minimum lease payments receivable Payable not later than 1 year Later than 1 year and not later than 5 years Later than 5 years Total lease payments receivable

321

306 1,232 4,305 5,843

337 1,238 4,605 6,180

2018 £'000

2017 £'000

37,551

1,137

Note 18 Capital commitments

Commitments contracted for

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NOTES TO ACCOUNTS FOR YEAR ENDED 31 JULY 2018 Notes to the Accounts

Note 19 Contingent liabilities The incorporation of the University in 2008/09 triggered certain provisions of the Occupational Pension Schemes (Employer Debt) Regulations 2005 relating to the unincorporated University's membership of the Universities Superannuation Scheme (USS). The Regulations require that the incorporation of the University be treated as a "Withdrawal Event", potentially causing the University's pension liability in respect of sixteen staff members of the scheme to crystallise. USS agreed with the University to enter into a "Withdrawal Arrangement" which allowed that settlement of the liability is deferred indefinitely, subject to a guarantee by the new incorporated University entity. The principal circumstances in which the liability may crystallise include (i) in the event that the USS is wound-up and (ii) in the event that the Pension Regulator of the USS require that the liability be paid.

The University has a 40 year ‘Education Agreement’ with Shoei College in Japan for the provision of a two year certificate for 40 students. When the agreement was put in place in March 1982 Shoei lent the University £151,688 to build a teaching block on the University’s Medecroft site. The loan was secured by a legal charge on the property and the capital was due to be repaid over 40 years effective from 22nd March 1982 at £3,792 per annum. While the education agreement remains in place Shoei waives payments. Termination of the agreement will trigger the University to start annual capital repayments for the balance of the 40 year period; repayments for the period up to termination are written off. The University and Shoei have no plans to terminate the agreement but were either party to do so then the University would be liable for repayments totalling £18,960 through until March 2022.

Note 20 Events after the reporting period There are no matters to report.

Note 21 Defined Benefit Obligations The University's employees belong to two principal post-employment benefit plans: the Teachers’ Pension Scheme England and Wales (TPS) for academic and related staff; and the Hampshire County Council Pension Fund which is part of the Local Government Pension Scheme (LGPS) for non-teaching staff. Both are multiemployer defined-benefit plans.

Teachers’ Pension Scheme The Teachers' Pension Scheme (TPS) is a statutory, unfunded, defined benefit scheme, governed by the Teachers' Pensions Regulations 2010, and the Teachers’ Pension Scheme Regulations 2014. These regulations apply to teachers in schools and other educational establishments, including academies, in England and Wales that are maintained by local authorities. In addition, teachers in many independent and voluntary-aided schools and teachers and lecturers in some establishments of further and higher education may be eligible for membership. Membership is automatic for full-time teachers and lecturers and, from 1 January 2007, automatic too for teachers and lecturers in part-time employment following appointment or a change of contract.

Teachers and lecturers are able to opt out of the TPS. The Teachers’ Pension Budgeting and Valuation Account Although members may be employed by various bodies, their retirement and other pension benefits are set out in regulations made under the Superannuation Act (1972) and Public Service Pensions Act (2013) and are paid by public funds provided by Parliament. The TPS is an unfunded scheme and members contribute on a ’pay as you go‘ basis – these contributions, along with those made by employers, are credited to the Exchequer under arrangements governed by the above Act. The Teachers' Pensions Regulations 2010 require an annual account, the Teachers' Pension Budgeting and Valuation Account, to be kept of receipts and expenditure (including the cost of pension increases). From 1 April 2001, the Account has been credited with a real rate of return, which is equivalent to assuming that the balance in the Account is invested in notional investments that produce that real rate of return.

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NOTES TO ACCOUNTS FOR YEAR ENDED 31 JULY 2018 Teachers’ Pension Scheme (continued) Valuation of the Teachers’ Pension Scheme The latest actuarial review of the TPS was carried out as at 31 March 2012 and in accordance with The Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014. The valuation report was published by the Department for Education (the Department) on 9 June 2014. The key results of the valuation are: - New employer contribution rates were set at 16.48% of pensionable pay (including administration fees of 0.08%) - total scheme liabilities for service to the effective date of £191.5 billion, and notional assets of £176.6 billion, giving a notional past service deficit of £15.0 billion.

- an employer cost cap of 10.9% of pensionable pay.

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

A full copy of the valuation report and supporting documentation can be found on the Teachers’ Pension Scheme website at the following location: https://www.teacherspensions.co.uk/news/employers/2014/06/publication-of-the-valuation-report.aspx Scheme Changes Following the Hutton report in March 2011 and the subsequent consultations with trade unions and other representative bodies on reform of the TPS, the Department published a Proposed Final Agreement, setting out the design for a reformed TPS to be implemented from 1 April 2015. The key provisions of the reformed scheme include: a pension based on career average earnings; an accrual rate of 1/57th; and a Normal Pension Age equal to State Pension Age, but with options to enable members to retire earlier or later than their Normal Pension Age. Importantly, pension benefits built up before 1 April 2015 will be fully protected.

The pension costs paid to TPS in the year amounted to £2.45m (2017: £2.30m) FRS 102 (28) Under the definitions set out in FRS 102 (28.11), the TPS is a multi-employer pension plan. The University is unable to identify its share of the underlying assets and liabilities of the plan.

Accordingly, the University has taken advantage of the exemption in FRS 102 and has accounted for its contributions to the scheme as if it were a defined-contribution plan. The University has set out above the information available on the plan and the implications for the University in terms of the anticipated contribution rates.

Local Government Pension Scheme The LGPS is a funded defined-benefit plan, with the assets held in separate funds administered by Hampshire County Council. The total contributions made for the year ended 31 July 2018 were £2.6m of which employer’s contributions totalled £1.97m and employees’ contributions totalled £0.63m. The agreed contribution rates for future years are 18% for employers and range from 5.5% to 12.5% for employees, depending on salary.

On 26 October, the High Court handed down a judgment involving the Lloyds Banking Group’s defined benefit pension schemes. The judgment concluded the schemes should be amended to equalise pension benefits for men and women in relation to guaranteed minimum pension benefits, “GMP”. The Government will need to consider this outcome in conjunction with the Government’s recent consultation on GMP indexation in public sector schemes before concluding on any changes required to LGPS schemes.

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NOTES TO ACCOUNTS FOR YEAR ENDED 31 JULY 2018 Notes to the Accounts

Local Government Pension Scheme (continued) Principal Actuarial Assumptions The following information is based upon a full actuarial valuation of the fund at 31 March 2016 updated to 31 July 2018 by a qualified independent actuary.

Principal actuarial assumptions

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

31 July 2018

31 July 2017

31 July 2016

31 July 2015

(% pa) 2.8 3.2 2.1 2.1 2.1 3.6

(% pa) 2.6 3.1 2.0 2.0 2.0 3.5

(% pa) 2.4 2.9 1.8 1.8 1.8 3.3

(% pa) 3.6 3.2 2.1 2.1 2.1 3.6

Mortality assumptions The mortality assumptions are based on the recent actual mortality experience of members within the Fund and allow for expected future mortality improvements. Sample life expectancies at age 65 resulting from these mortality assumptions are shown below.

2018 2017 Retiring today Male 24.1 24.0 Female 27.2 27.0 Retiring in 20 years Male Female

26.2 29.4

26.0 29.3

Asset Allocation Value at 31 July 2018 63.6% 7.0% 23.1% 1.1% 2.1% 3.1% 100.0%

Equities Property Government bonds Corporate bonds Cash Other

Value at 31 July 2017 61.2% 6.5% 24.8% 1.1% 3.0% 3.4% 100.0%

The amount included in the balance sheet in respect of the defined benefit pension plan is as follows: 2018 ÂŁ'000 39,510 (53,520) (14,010)

Fair value of plan assets Present value of plan liabilities Net pensions liability (note 19)

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2017 ÂŁ'000 34,210 (50,560) (16,350)

NOTES TO ACCOUNTS FOR YEAR ENDED 31 JULY 2018 Notes to the Accounts Local Government Pension Scheme (continued) Amounts recognised in the Statement of Comprehensive Income in respect of the Plan are as follows:

Amounts included in staff costs Current service cost Interest on net defined benefit liability Total Amounts recognised in Other Comprehensive Income Asset gains arising during the period Liability gains arising during the period Amount recognised in Other Comprehensive Income

2018 £'000 2,790 400 3,190

2017 £'000 2,600 400 3,000

2018 £'000 2,690 870 3,560

2017 £'000 1,520 760 2,280

The split of the liabilities at the last valuation between the various categories of members is as follows: Active members 52% Deferred Pensioners 14% Pensioners 34% Changes in the present value of defined benefit obligations Defined benefit obligations at start of period Current service cost Interest expense on defined benefit obligation Contributions by participants Actuarial gains Net benefits paid out Past service cost Net increase in liabilities from disposals and acquisitions Curtailments and settlements Defined benefit obligations at end of period Changes to the fair value of assets Opening fair value of assets Interest income on assets Re-measurement gains on assets Employer contributions Contributions by participants Net benefits paid out Fair value of plan assets at end of period Actual return on assets Interest income on assets Gain on assets

2018 £'million 50.56 2.79 1.31 0.63 (0.87) (0.90) 53.52

2017 £'million 47.28 2.60 1.14 0.58 (0.76) (0.28) 50.56

2018 £'million 34.21 0.91 2.69 1.97 0.63 (0.90) 39.51

2017 £'million 29.85 0.74 1.52 1.80 0.58 (0.28) 34.21

2018 £'million 0.91 2.69 3.60

2017 £'million 0.74 1.52 2.26

Reconciliation of funded status to balance sheet Year ending 31 July 2018 £'million 39.51 (53.52) (14.01)

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

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Year ending 31 July 2017 £'million 34.21 (50.56) (16.35)

Year ending 31 July 2016 £'million 29.85 (47.28) (17.43)

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Note 22 Financial instruments The University has chosen to adopt Sections 11 and 12 of FRS 102 in full in respect of financial instruments.

Financial assets and liabilities Financial assets and financial liabilities are recognised when the University becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations rather than the financial instrument's legal form.

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets measured at fair value through the profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless arrangement constitutes a financing transaction. A financial asset or financial liability that is payable or receivable in one year is measured at the undiscounted amount expected to be received or paid net of impairment, unless it is a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

The financial instruments may be analysed as follows:

Financial assets that are debt instruments measured at amortised cost Financial liabilities measured at amortised cost

2018 £'000 42,269 (47,349)

2017 £'000 35,902 (36,305)

Financial assets measured at amortised cost comprise cash and cash equivalents, investments and receivables.

Financial liabilities measured at amortised cost comprise mortgages, unsecured loans, finance leases, trade payables, accruals and other payables.

Note 23 Related party Transactions Due to the nature of the University’s operations and the composition of the Board of Governors being drawn from local public and private sector organisations it is inevitable that transactions will take place with organisations in which a member of the Board of Governors may have an interest. A register of Governors’ interests is maintained by the University. All transactions involving organisations in which a member of the Board may have an interest are conducted at arms length and in accordance with the University’s Financial Regulations and usual procurement procedures.

The following transactions have been identified for disclosure in relation to those organisations related to senior executive staff and members of the Board of Governors:

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NOTES TO ACCOUNTS FOR YEAR ENDED 31 JULY 2018 Notes to the Accounts

Note 23 Related party Transactions (continued) (Income)/ expenditure £'000

Name of organisation

Nature of interest

Higher Education Funding Council (HEFCE)

Our Deputy Vice Chancellor acted as a Governor on the Audit Committee of the council Our Vice-Chancellor acts as Chair of the Executive Board of GuildHE Our Chair of Governors acts as Chair of Trustees for the trust Our Chair of Governors acts as Chair of Trustees for the trust Our Vice-Chancellor acts as a member of the agency's Board Our Chair of Governors acts as a Trustee for the trust

GuildHE Hampshire Cultural Trust The Mary Rose Trust Quality Assurance Agency (QAA) Winchester Cathedral Trust Winchester Student Union

Universities and Colleges Admissions Service (UCAS)

The Student Governor is also a member of the Winchester Student Union. The Union receives a block grant from the University, which is calculated annually according to a methodology agreed between the University and the Union. All other transactions between the two parties are conducted on a commercial basis.

Our Vice Chancellor acts as a Governor on the agency's Board

(Debtor)/ creditor £'000

(1,123)

-

33

-

20

-

10

-

20

-

12

-

Payments

341

-

Receipts

(220)

(72)

Payments Receipts

155 (20)

6 (24)

The University has reviewed the sector guidance in relation to linked charities. There are no such transactions to disclose.

As stated in the Statement of Corporate Governance and Internal Control no member of the Board of Governors received any remuneration/ waived payments from the University for the work they do as members of that Board during the year (2017:nil). However, Governors do receive compensation for travel costs. Members of the Board of Governors who are also members of staff of the University receive remuneration in their capacity as members of staff.

The total expenses paid to or on behalf of members of the Board of Governors was £1,962 (2017:£1,081). This represents travel and subsistence expenses incurred in attending Board of Governors meetings, other committee meetings and events undertaken in connection with their official capacity.

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REGISTERED OFFICE:

PRINCIPAL BANKERS:

University of Winchester

Nat West Bank PLC

Sparkford Road

105 High Street

Winchester, Hampshire

Winchester

SO22 4NR

SO23 9AW

TELEPHONE:

EXTERNAL AUDITOR:

01962 841515

KPMG LLP

Gateway House

FACSIMILE:

Tollgate, Chandler’s Ford

01962 842280

Eastleigh, SO53 3TG

WEBSITE: www.winchester.ac.uk

INTERNAL AUDITOR: Southern Internal Audit Partnership

The University of Winchester is a private

Corporate Services

charitable company limited by guarantee in

Hampshire County Council

England and Wales.

The Castle

REGISTERED NUMBER:

Winchester,

05969256 (England and Wales)

SO23 8UB

SENIOR OFFICERS AND ADVISORS:

LAWYERS:

Chancellor

Blake Morgan

Alan Titchmarsh

New Kings Court

Chancellor Emeritus

Tollgate, Chandlers Ford

Dame Mary Fagan

Eastleigh

Vice-Chancellor and Accountable Officer

SO53 3LG

Professor Joy Carter First Deputy Vice-Chancellor Professor Elizabeth Stuart Deputy Vice-Chancellor Professor Neil Marriott Assistant Vice-Chancellor Colette Fletcher Clerk to the Board of Governors Nigel Trethewy

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100

Integrated Annual Reporting Year ending 31 July 2018

101

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