Integrated Annual Report 2018-19

INTEGRATED ANNUAL REPORT 2018-19 Year ending 31 July 2019

2 | UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19

TABLE OF CONTENTS VICE-CHANCELLOR FOREWORD....................PAGE 4 WHY INTEGRATED REPORTING?..................... PAGE 5 MATERIALITY..........................................................PAGE 6 STRATEGIC REVIEW INCORPORATING THE OPERATIONAL REVIEW................................ PAGE 7

ABOUT US.................................................................PAGE 8

OUR VALUES...........................................................PAGE 8

OUR UNIVERSITY AT A GLANCE.......... PAGE 10

ECONOMIC IMPACT........................................ PAGE 10

OUR FACULTIES...................................................PAGE 11

OUR RESEARCH..................................................PAGE 11

SOME HIGHLIGHTS FROM THIS YEAR...............................................................PAGE 12

OUR STAKEHOLDERS....................................PAGE 14

OUR STRATEGIC PLAN.................................PAGE 15

KEY PERFORMANCE INDICATORS................ PAGE 17 VALUE CREATION MODEL...................................PAGE 19 IDENTIFYING OUR CAPITAL INPUTS AND OUTPUTS....................................... PAGE 20

FINANCIAL REVIEW..................................................PAGE 41

FINANCIAL ENVIRONMENT......................PAGE 41

FINANCIAL STRATEGY.................................PAGE 42

FINANCIAL PERFORMANCE....................PAGE 43

FUTURE SUSTAINABILITY.........................PAGE 46

FINANCIAL KPIs................................................. PAGE 47

STATEMENT OF BOARD OF GOVERNORS RESPONSIBILITIES IN RESPECT OF THE STRATEGIC REPORT, THE DIRECTORS’ REPORT AND THE FINANCIAL STATEMENTS........................PAGE 49 OUR GOVERNORS.....................................................PAGE 53 STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL.............................................. PAGE 55

CORPORATE GOVERNANCE...................PAGE 56

REMUNERATION COMMITTEE'S DECISION ON VICE-CHANCELLOR'S SALARY..............PAGE 63 STATEMENT OF INTERNAL CONTROLS......................................................................PAGE 65

BUSINESS EXCELLENCE AND GROWTH – INVESTING IN THE FUTURE...................................................................PAGE 21

INDEPENDENT AUDITOR'S REPORT TO THE BOARD OF GOVERNORS OF THE UNIVERSITY OF WINCHESTER........................................................ PAGE 67

SUSTAINABLE DEVELOPMENT......................PAGE 22

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS......PAGE 68

TEACHING EXCELLENCE..................................... PAGE 24 STUDENT EXPERIENCE.........................................PAGE 25 THRIVING INDIVIDUALS.......................................PAGE 26 MODERN SLAVERY................................................... PAGE 27 OUR SUPPLY CHAINS............................................. PAGE 27 SOCIAL JUSTICE.........................................................PAGE 28 HIGHLIGHTS FROM OUR FACULTIES..........PAGE 31 OUR MATERIAL RISKS............................................PAGE 36 CHALLENGES......................................................PAGE 36 VALUE FOR MONEY AND PROCUREMENT..........................................................PAGE 39

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS................................................PAGE 70 THE PURPOSE OF OUR AUDIT WORK AND TO WHOM WE OWE OUR RESPONSIBILITIES..............................PAGE 70 FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2018............................................... PAGE 71 STATEMENT OF PRINCIPAL ACCOUNTING POLICIES............................. PAGE 76 NOTES TO THE ACCOUNTS................................PAGE 81 ADMINISTRATIVE INFORMATION.................................................... PAGE 97

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VICE-CHANCELLOR FOREWORD This has been another important year in the history of our University, marked by us gaining United Nations Principles for Responsible Management Education (PRME) Champion status for mainstreaming sustainability throughout the University. As the ‘University for Sustainability and Social Justice’ we were particularly delighted with this award. We continue to be passionate about action on the Climate Crisis, and we are working tirelessly on this as a major priority. We have a bold and distinctive vision to provide worldleading, 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 second annual report, taking further steps towards aligning with the International Integrated Reporting Framework, which describes our integrated thinking and how we combine our capitals to generate value. This approach brings together the numerous ways we add value to our students, staff and the communities we serve. You will see evidence of our ambition to invest in our future, with the West Downs Development, and the creation of a new Health and Wellbeing Faculty.

Against a backdrop of decline across many higher education institutions, we continue to grow our undergraduate student recruitment and enhance our academic portfolio. We are extending our partnerships in the UK and across the globe, and we continue to invest in our students’ experience, academic endeavours and capital infrastructure.

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 £2.3m 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.

Professor Joy Carter CBE DL Vice-Chancellor

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WHY INTEGRATED REPORTING? Our journey with Integrated Reporting started when the University joined the Leadership Foundation pilot in 2017, supported by the Funding Councils. The aim of this pilot was to review how integrated thinking and reporting can be embedded in Higher Education in the same manner it has been adopted by many other sectors. We have adopted this advanced approach to reporting, to make us think beyond just our financial value and incorporate nonfinancial added value for our students, staff and stakeholders.

We recognise that our students, staff and stakeholders have a significant influence on our ability to create value and are essential to our success. The International Integrated Reporting Framework was developed by the International Integrated Reporting Council (IIRC), and we have used this framework as our basis for developing our Integrated Reporting. However, to embed it within our organisation we have re-assigned the ‘capitals’ (financial, intellectual, human, social and relationship, and natural and manufactured) around our values and our commitment to value creation (see pages 19-20 for further details).

This report has enabled us to present a more balanced view of how we create value in the short, medium and long term. It hightlights the resources and inputs that contribute to our value creation, as well as identify potential risks and opportunities that could affect our ability to create value over time.

"This is the second year of the University of Winchester’s integrated reporting journey. Our first integrated report was well received by our stakeholders and stimulated significant interest from other HE providers. We were one of just four UK universities to embark on this journey and we have been encouraged by the positive feedback we have received.

This year we have evolved our value creation model to include the United Nations’ Sustainable Development Goals (SDGs). We regard education as having a direct or indirect impact on all 17 of the SDGs and have commissioned a University-wide audit to embed them into all our curricula. The relationship between the capitals is evidenced this year by our investment in a new, state of the art, teaching and learning building to enable the University to support the growth in student numbers and to enable the delivery of a range of digital-focused programmes. This building has been designed to have excellent environmental performance and to enhance the wellbeing of its users. It has been partly financed by a loan from Triodos Bank, one of the world’s most sustainable finance providers. We are pleased to be partnering Triodos in this important strategic development for the University and the region.

We have responded to feedback from our last report and this year our integrated report is more concise and more accessible. We all hope you enjoy reading and learning from its contents."

Professor Neil Marriott Deputy Vice-Chancellor

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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 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 ‘Why Integrated Reporting' section’ section;

the importance of relevant matters in • Evaluating terms of their known or potential effect on value creation and/or sustainability; the matters based on their relative • Prioritising importance. This includes matters that have, or may have, an effect on our ability to create value over time. Such matters are determined by considering their effect on 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’;

the relevant information to disclose • Determining 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 the ability to create value over time.

In considering the 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 17 United Nations Sustainable Development Goals and our values.

STRATEGIC REVIEW INCORPORATING THE OPERATIONAL REVIEW

8窶ポ窶ザNIVERSITY OF WINCHESTER窶ポ窶オNTEGRATED ANNUAL REPORT 2018-19

ABOUT US We are a community of educational excellence, where people come together to be the difference and make the world better. We are the University for Social Justice and Sustainability. We are proud to be a special kind of university, in everything we do endeavouring to help individuals and communities flourish. We combine business excellence with being a global leader in valuesdriven higher education.

Since our foundation in 1840, we have been a community committed to making a difference, through a relentless commitment to our values.

We challenge conventions with compassion, invigorate and shake up the world around us and catalyse change. By putting our values into action and embedding the United Nations Sustainable Development Goals we are being the difference, helping transform society for the common good.

OUR VALUES

The University was established from a mission theChurch of England had in the 1830s to create an institution that would train teachers to teach in poor communities. The Diocesan Training School was eventually established by Bishop Sumner in 1840.

Our original connection with Cathedral and Diocese remains strong and is something we cherish dearly.

Throughout all the manifestations of the University, we have together watched over the spiritual life and championed many economic and educational developments in the city.In 1840 there were just ten pupils. Today we have close to 8,000 students, a beautiful award-winning campus which is a hub of knowledge, creativity and innovation for the City and beyond. In all of that growth and change our story, our long history, has followed in the way of the original mission of the Church in establishing the Diocesan Training College. In 2004, degree awarding powers were conferred and the institution became known as University College Winchester.

By 2005 the Privy Council conferred the title of the University of Winchester. Research degree awarding powers were granted in 2008 by the Privy Council and we enhance our sports provision by opening the Winchester Sports Stadium at Bar End Quarter..

IMPACT OF EDUCATION ON THE SUSTAINABLE DEVELOPMENT GOALS

WHAT WE BELIEVE IN We are passionate about seeing individuals and communities thrive. Our values of Compassion, Individuals Matter and Spirituality shape how we do this and why we believe academic freedom leads to big ideas which in turn lead to social justice, equality and creativity for a better world.

DIRECT IMPACT ON

INNOVATION FOSTERS

COMPASSION Conscious of the kinship that exists between all life, by embedding the United Nations Sustainable Development Goals (SDGs) across our curriculum and business functions, we seek to nurture compassion and embody social justice for people, animals and the planet. This is a supportive, caring and safe place to work and study. Staff and students will be supported to flourish, encouraged to help others and empowered to make a difference in the world. We seek to challenge and nurture in all staff and students a love and value for all life and the planet. Our staff and students are inspired to change the world for the better, challenge convention with compassion and stand up for what they believe to be true.

WILL LEAD TO

M. Kolb et al. / The International Journal of Managment Education 15

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INDIVIDUALS MATTER We are passionate about seeing individuals flourish at the University of Winchester. The dignity and wellbeing of individuals are important as are their opinions and views. We are committed to working globally to ensure equality and justice for all.

Everyone is welcome here. Staff and students will learn to value and appreciate others, whoever they are and whatever their background. You will be listened to; your opinions count. Together, staff and students will be supported and challenged to reach their full potential. Our staff and students are nurtured to embrace equality, diversity and inclusivity to the full. Staff and students are supported to fight for integrity and justice in a world of compromises and prejudice.

SPIRITUALITY We celebrate our Anglican Christian foundation and welcome people of all faiths and none. In a world in which religion is often associated with exclusivity

and anti-intellectualism, we seek to model ways of being religious which are inclusive and intellectually robust. We believe that everyone expresses their spirituality through a unique collage of values, disciplines and practices.

Working and studying at Winchester offers a chance to experience and reflect on the creativity, beauty and compassion in life and 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 whole people. It is safe to try new things here, to stand up for what you believe in. Staff and students are supported to engage with the big and deep questions of life, to bring about change and really make a difference. We seek to challenge and develop staff and students’ thinking, enabling them to develop in wisdom for a fulfilling life as well as the knowledge they need for a successful career.

Our staff and students will have the resilience and resourcefulness to seize the opportunities and face the challenges of life.

ABOUT THE SUSTAINABLE DEVELOPMENT GOALS The Sustainable Development Goals are the blueprint for achieving a better and more sustainable future for all life and the planet. They address the global challenges we face, including those related to poverty, inequality, climate change, environmental degradation, peace, and justice. The 17 Goals are all interconnected and have been defined by the United Nations as follows: No Poverty: 55 percent of the world's population have no access to social protection ero Hunger: A profound change of the global Z food and agriculture system is needed to nourish today's 800 million hungry and the additional 2 billion increase in global population expected by 2050

Reduced Inequalities: 16,000 children die each day from preventable diseases such as measles and tuberculosis Sustainable Cities and Communities: 60 percent of the world's population will live in cities by 2030

Good Health and Wellbeing: Spending $1 billion in immunization coverage can save 1 million children's lives each year

esponsible Consumption and Production: R If the global population reaches 9.6 billion by 2050, the equivalent of almost three planets will be required to sustain current lifestyles

uality Education: 262 million children and Q adolescents remain out of school. 617 million lack minimum proficiency in reading and mathematics

limate Action: To limit global warming to C 1.5°C global carbon emissions will need to fall by a staggering 45 percent by 2030 from 2010 levels

Gender Equality: In 2018, women only held 27 percent of managerial positions worldwide

Life Below Water: Over 3 billion people depend on marine and coastal biodiversity for their livelihood

lean Water and Sanitation: Half of the C world's population is already experiencing severe water scarcity at least one month a year

Life on Land: 1 million plant and animal species are at risk of extinction

Affordable and Clean Energy: 3 billion people lack access to clean cooking fuels, resulting in nearly 4 million premature deaths each year ecent Work and Economic Growth: In 2018, D 20 percent of the world's youth were not engaged in either education, employment or training I ndustry, Innovation, and Infrastructure: 3.8 billion people do not have access to the internet representing 80 percent of the population in the least developed countries

eace, Justice and Strong Institutions: Today, P 20 million people are considered refugees, over 41 million people have been internally displaced, and at least 4 million people are stateless artnerships: Strong international cooperation P is needed now more than ever to ensure that countries have the means to achieve the Sustainable Development Goals

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OUR UNIVERSITY AT A GLANCE FINANCIAL HIGHLIGHTS

STAFF HEADCOUNT

Total Revenue (£m)

Academic staff (headcount) 79.0

2017-18

80.5

2018-19 EBITDA* (£m)

438

2018-19 Professional Service Staff (headcount)

9.3

2017-18 6.7

2018-19

2017-18 2018-19

Capital expenditure (£m) 2017-18

422

2017-18

546 556

STUDENT NUMBERS Total students (full-time equivalent)

12.1 32.8

2017-18

*EBITDA = Earnings before interest, tax, depreciation and amortisation.

2018-19

2018-19

6.373 6.446

STUDENT NUMBERS Total students (full-time equivalents)

93%

6%

10%

of students study full-time

are international Students

of students are postgraduates

ECONOMIC IMPACT We commissioned an external Economic Impact report during the summer of 2018. This report demonstrated that we contribute over £266 million a year to the regional business community. The Economic Value of the University shows that more than £203 million a year added income is created by our alumni (the impact of the skills acquired by students remaining in the region), £20 million a year of student expenditure, and £42 million a year of university expenditure. We also contribute nearly 10,000 jobs a year into the regional economy. We are a major part of the local economy and play a critical role in supporting regional growth through our expenditure, investment and the skills of our graduates.

TOTAL: £266m Student spending

£20m

University expenditure

£42m

Alumni

£203m

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OUR FACULTIES We have a wide range of undergraduate and postgraduate courses delivered currently across four faculties, each led by a Dean. This will expand in August 2019, with the creation of a new Faculty of Health and Wellbeing.

accounting, finance, economics, digital futures, law, sport, exercise and health.

FACULTY OF ARTS

FACULTY OF HUMANITIES AND SOCIAL SCIENCES

English, creative writing, American studies, performing arts, media and film.

Criminology, forensic studies, archaeology, anthropology, geography, history, politics, animal welfare, psychology, theology, religion and philosophy.

FACULTY OF BUSINESS, LAW AND SPORT Responsible management and leadership, marketing, event and project management,

OUR RESEARCH Our research is driven by the commitment to make a difference and our reputation for research excellence is growing. We have established four research themes which are reflected in Research Centres and projects across the University: 1. Understanding society, culture and the arts 2. Exploring the past and the world around us 3. Enhancing wellbeing, nurturing the individual 4. Building a sustainable and responsible future We continue to deliver research with impact at regional, national and international levels. External peers have reviewed our research output prior to the Research Excellence Framework (REF) 2021 and the preliminary results indicate a high percentage of work is recognised internationally, and is classed as world-leading. A revision of the internal grant process has enabled a more strategic use of funds to maximise the quality of our entry.

Our continued progress since the REF 2014 has strengthened our potential to enter new Units of Assessment in the REF. We were awarded Higher Education Innovation Funding (HEIF) (£268,508) which has been used by our Research and Knowledge Exchange (RKE) Centre to significantly develop our knowledge exchange infrastructure. This was successfully implemented in 2018-19, and has resulted in the increased visibility and development of our knowledge exchange activities, which in turn will support our entry into the upcoming Knowledge Exchange Framework (KEF).

FACULTY OF EDUCATION, HEALTH AND SOCIAL CARE Education studies, liberal arts, teacher development and Interprofessional studies.

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SOME HIGHLIGHTS FROM THIS YEAR AUGUST 2018

SEPTEMBER 2018

Winchester Creative Writing graduate shortlisted for Richard and Judy's search for a bestsellers’ competition.

Winchester reinforced its commitment to enhancing Student Engagement with the launch of a new research centre.

AUGUST 2018

SEPTEMBER 2018

University of Winchester opens its doors as part of Heritage Open Days.

Debut children’s book published by Winchester Academic.

OCTOBER 2018

OCTOBER 2018

Secretary of State for Education visits in National Care Leavers Week.

Topping out ceremony with our Chancellor Alan Titchmarsh marks a milestone for our new landmark building.

University signs International Statement of University Principles.

NOVEMBER 2018 OCTOBER 2018

University of Winchester joins forces with Government to tackle carbon emissions.

Winchester Journalism graduates shortlisted in national award.

Winchester Students take action as part of #IWILL volunteering week.

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DECEMBER 2018

University opens its doors to local community on Christmas day.

DECEMBER 2018

Winchester recognised as a University of Sanctuary.

JANUARY 2019

Students quiz Ambassador about peace process in Afghanistan.

JANUARY 2019

Winchester health experts launch exercise-based stroke rehabilitation clinic in Hampshire.

Blog launched on how our Education systems reflect the society we live in.

FEBRUARY 2019

FEBRUARY 2019

University of Winchester student volunteers join city residents and council workers to support community projects.

Debut novel by Winchester graduate wins Richard and Judy's search for best seller.

MARCH 2019

APRIL 2019

Sir Vince Cable visits Winchester on a factfinding visit, concentrating on student wellbeing and waste reduction initiatives.

Student wins military leadership award.

Prisoners share theatrical success following innovative Theatre Intervention Project.

MAY 2019

MAY 2019

Ground breaking ceremony marks important milestone for new primary school, sponsored by the University of Winchester.

Winchester signs new civic university agreement pledging commitment to the local community.

JULY 2019 JUNE 2019

Unlocking the history inside Winchester Cathedral’s chests.

The newest university Health and Wellbeing Faculty in the UK launches with Hampshire Hospital partnership.

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OUR STAKEHOLDERS Stakeholder engagement is ingrained in our governance and strategy. All our groups are represented in our stakeholder diagram. 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.

FUN DIN GB OD I

STUDENTS

SUPPLIERS

ES

ORS T A UL G RE

Our External Board plays an important non-executive role in the success of the University. Our Governors are dedicated to the development of our staff, the learning experience of our students and the growth and value for money of the institution. They are an essential stakeholder in our community. Our current Governors reflect our core values, and further information can be found on our website.

GOVERNORS AND LEADERS

SO AN C

NITY MU OM MENT N ,C TY IRO IE NV E D

P A R TN E RS

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OUR STRATEGIC PLAN Our Strategic Plan sets out who we are and where we are going in the context of the big challenges facing the higher education sector and the UK. Beyond that, it is also shaped by the most urgent problems facing humankind as set out in the United Nations Sustainable Development Goals – such as social cohesion, climate change, sustainability, population growth and poverty.

Throughout our Strategic Plan we ask ourselves: What are our responsibilities, as a values-driven university? How can we maximise the benefits of our research for the common good? How well are we equipping our students to contribute to society and the economy? The success and wellbeing of our students drive everything we do. We value them all and work in partnership with them in creative ways to shape education and their future. We have a long history of equipping students for the professions and for public service. Our graduates leave us with the knowledge, skills, experience and drive to succeed as leaders in whichever field they choose to enter. But more 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 any free society. It is our ambition to nurture graduates who will become the conscience of their communities and places of work by 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.

HOW ARE WE TO ACHIEVE THIS AMBITION? We will create employment opportunities for our students: to participate in volunteering; to develop entrepreneurship; to engage in research; and in the interdisciplinary study through our Institute for Value Studies. Our approach will be distinctive. Our induction, our curriculum, our approach to teaching and learning, and our relationship with students before they arrive and after they graduate will support and challenge them to grow as creative and critical thinkers. We are in a time of unprecedented geopolitical uncertainty as well as changes in higher education policy. We are very aware of the challenges of public funding, of demographic change, and the increased marketisation of the university sector driving competition nationally and globally. In response, our strategy is ambitious and infused with the desire to extend our impact. We build on strong foundations and we are determined to flourish through a continuous drive for excellence.

We have three strategic priorities: to Educate, Advance Knowledge and Sustain.

EDUCATE

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

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.

Our students are taught by research-active • and professionally engaged staff who work with students to create a personalised and transformational learning experience. seek to ensure that all who can benefit from • We 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.

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

We take spirituality seriously: as a personal • 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.

ADVANCE KNOWLEDGE

are rooted in research and knowledge • We exchange.

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

Research and professional practice underpin • the quality of our teaching and the student experience. value all scholarship that impacts positively • We 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.

SUSTAIN

efforts to reduce carbon emissions has led • Our us to be ranked as one of the top universities for sustainability – our ambition is to become the lowest-carbon university campus in the UK by 2030.

University has grown significantly in recent • Our years and we have a bold strategic plan to

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maintain our student numbers and continue that growth in both domestic and international markets in the future where possible. success is founded on the commitment, • Our professionalism, enthusiasm and talents of the individuals who are part of the University community. improvement and efficient practices • Continuous underpin our organisational structures and processes. We will build on our national reputation for organisational excellence and continuous improvement. will build on our strong reputation in • We delivering high quality values-driven teacher education. offer our intellectual and physical resources • We to serve the common good and to bring mutual benefits for communities and for the University.

OUR FOCUS AND CHALLENGES FOR 2019/20 Our Strategic Vision has been developed at a time of increasing uncertainty about the future, with particularly challenging years ahead for higher education and the country.

Our specific challenges for 2019/20 include: our National Student Survey scores in • Improving an increasingly competitive market; our destinations for leavers through • Improving developing our graduate employability and improving our postgraduate study offers to our students; Teaching Excellence Framework and • The maintaining or improving upon our Silver ranking through strategic investment in our staff and infrastructure;

• League tables and improving our rankings.

We believe a 10-year strategic vision is the right approach, even in such uncertain times. It is important for us to present a clear and bold vision.

We want to cement our passion for excellence in education, social justice and sustainability while setting out our ambition for success and impact over the next decade. A key challenge for our institution is the demographic downturn with the number of 18year olds reducing until 2021. In response, we have enhanced our portfolio, our marketing strategy and our investment in brand and advertising. We are one of a small handful of universities experiencing yearon-year growth in undergraduate recruitment.

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KEY PERFORMANCE INDICATORS Over the next 10 years our Strategic Plan will drive our journey towards becoming a university that is internationally recognised for the way in which we, and our students and graduates, engage with and respond to the biggest and most urgent problems facing the planet and all life. We will measure our progress on this journey through our Key Performance Indicators (KPIs), which are linked to our capital inputs and outputs.

FINANCIAL CAPITAL Our new 5 year Business Plan and 10 year Strategy Vision will ensure that we continue to be financially sustainable. We will continue to innovate to ensure that we remain attractive to prospective students, despite an increasing number of alternative choices entering the HE market. In addition to the financial KPIs, which are reported in the Financial Review, we will measure our progress using the following KPIs:

TREND

RAG

Profitability % EBITDA / Total income

▼

●

Margin for Sustainability and Investment (MSI)

▼

●

Financing – Bank borrowing/ EBITDA

▼

●

INTELLECTUAL CAPITAL  GRADUATE SUCCESS AND RESEARCH IMPACT In addition to the value that they will bring to society more widely, our Business Plan will also increase the number of our graduates who are in employment or further study following university. We will measure our progress using the following KPIs, which draw on information from the national Teaching Excellence and Student Outcomes Framework (TEF):

GRADUATE EMPLOYABILITY

TREND

RAG

Students obtaining employment or undertaking further study

▼

●

Students obtaining highly skilled employment or undertaking further study

▼

●

Although the percentages are improving, we are currently slightly below our benchmarks for these KPIs. To continue our growth, and our target of exceeding the national benchmark, the Graduate Employability and Further Study Strategy Group has been developing plans to fully embed employability opportunities into the curriculum and to provide work or volunteering placements for all programmes.

We have also appointed Employability Advisers to support each faculty.

RESEARCH ACTIVE

TREND

RAG

■

●

Percentage of our full-time Academic staff involved in Research Knowledge and Exchange.

Research is essential to what we do as a University.

All academics receive varying amounts of research time dependent on their current role. We have invested in a new central repository for academics to highlight their research. Our Research and Knowledge Exchange Strategy will help us to continue to grow our research excellence and ensure that as many academic staff as possible are engaged in Research and Knowledge Exchange (RKE) activities.

STUDENT RECRUITMENT

TREND

RAG

Undergraduate applications (market share)

▲

●

Full-time Undergraduate Enrolments (market share)

▲

●

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

▼

●

We have been successful in growing student applications and enrolments, increasing our market share during a time of national decline of 18-20 year olds. The introduction of Foundation Years will enable entry standards to improve whilst also increasing market share.

RAG KEY R - Requires further review A - On target for long term progress G - Exeeding target or benchmark

● ● ●

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HUMAN  THRIVING INDIVIDUALS

NSS RESULTS

Our Strategic Plan is driven by our desire to see our staff and students flourish. We will continue to support and encourage all those with the potential to succeed in Higher Education, regardless of their background. We will measure our progress using the following KPIs:

Our Business Plan identifies student satisfaction as a priority area. It contains stretch targets across all areas of the NSS, including reaching the top quartile of the sector for overall satisfaction by 2030. We will achieve this by:

WIDENING PARTICIPATION AND RETENTION OF OUR STUDENTS

TREND

Students from low-participation neighbourhoods attending our university compared to the sector benchmark.

■

Continuation of full-time Undergraduate students

■

RAG

● ●

SOCIAL AND RELATIONSHIP  SOCIAL JUSTICE Through our Strategic Plan we will continue to deliver an excellent student experience and strong student engagement. We will measure our progress using the following KPIs, which draw on information from the Teaching Excellence and Student Outcomes Framework (TEF) and the National Student Survey (NSS)

STUDENT SATISFACTION

TREND

RAG

National Student Satisfaction Survey: The teaching on my course

▼

●

National Student Satisfaction Survey: Assessment and Feedback

▲

●

National Student Satisfaction Survey: Academic Support

▼

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National Student Satisfaction Survey: Overall Satisfaction

▼

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a Student Experience Strategy at • Developing institutional level to improve student satisfaction.

Establishing a budget to effectively deliver the • strategy, to compete with institutions across the sector on student satisfaction initiatives at both institutional-level and the more granular subjectlevel required for success in both the NSS and the TEF. NATURAL AND MANUFACTURED  ENVIRONMENTAL SUSTAINABILITY Our Strategic Plan sets out our ambition to become the lowest-carbon university campus in the UK by 2030. We will reduce our own negative impact on the environment, and include climate change education in all of our programmes. We will measure our progress using the following KPI:

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

TREND

RAG

■

●

UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19 | 19

VALUE CREATION MODEL INTELLECTUAL

FINANCIAL

HUMAN

SOCIAL AND RELATIONSHIPS

NATURAL AND MANUFACTURED

INPUTS

OUTSTANDING CAMPUS

STUDENT-LED APPROACH

WE ARE A COMMUNITY COMMITTED TO MAKING A DIFFERENCE TO ALL LIFE AND THE PLANET.

TEACHING AND RESEARCH EXCELLENCE

BUSINESS EXCELLENCE

VALUE CREATION

VALUE CREATION

VALUES IN ACTION

ETHICAL RESOURCE MANAGMENT

OUTPUTS

BUSINESS EXCELLENCE AND GROWTH

GRADUATE SUCCESS AND RESEARCH IMPACT

THRIVING INDIVIDUALS

SOCIAL JUSTICE

SUSTAINABLE DEVELOPMENT GOALS

ENVIRONMENTAL SUSTAINIBILITY

20 | UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19

IDENTIFYING OUR CAPITAL INPUTS AND OUTPUTS We have used the International Integrated Reporting Council’s (IIRC) generic ‘capitals’ to identify the resources and inputs we have with which to create value and ultimately make a difference. We are committed to using integrated thinking in all of our decision making.

FINANCIAL  BUSINESS EXCELLENCE AND GROWTH We are acutely aware of the responsibility we have to those who choose to invest in us, in particular our students. We are committed to demonstrating to students how their university fees contribute to the delivery of an excellent student experience. How we use our money matters too. Ethical investment forms an integral part of our values. We are mindful of the need to avoid undermining our beliefs and ethos, by providing capital to activities that are materially inconsistent with our values. Further analysis of how we strategically invest our financial capital is outlined within the Financial Review of these statements.

INTELLECTUAL  GRADUATE SUCCESS AND RESEARCH IMPACT Everything we do is about building, sharing and creating knowledge through excellent teaching and research. Students are taught by staff active in research and the professions, who work with them to create a personal and transformative learning experience. Throughout the report, intellectual capital will include our academic portfolio, academic quality awards, innovative learning and teaching opportunities, research and knowledge exchange.

SOCIAL AND RELATIONSHIP  SOCIAL JUSTICE Our aim is to have the highest levels of student satisfaction across all our courses. We are proud of the positive impact our students have in the community through the thousands of volunteering hours they put in and the businesses they support as consumers and employees. Ultimately, our aim is to nurture our students to thrive in their careers and further study, to become the conscience of their communities and places of work. This capital can be shown across the University in many ways, including student satisfaction, our community engagement strategy, staff and students volunteering data, our continued engagement with our alumni and our Research Excellence Framework (REF) impact statements.

HUMAN  THRIVING INDIVIDUALS The dignity and wellbeing of individuals are important as are their opinions and views. We encourage a positive working environment in which both students and staff can reach their full potential.

NATURAL AND MANUFACTURED  ENVIRONMENTAL SUSTAINABILITY We are widely recognised as one of the leading universities for sustainability and carbon management. Our ambition is to become the lowest-carbon university campus in the UK by 2030.

This commitment extends into the curriculum, with climate change education being rolled out across all our courses. Aligned to this capital are measures covering carbon emissions, water usage, and amount of waste produced by the institution.

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BUSINESS EXCELLENCE AND GROWTH – INVESTING IN THE FUTURE We have invested in the creation of a new Health and Wellbeing Faculty, opening on the first August 2019. The new Faculty brings together existing degree programmes in sport, exercise and health disciplines, social work, medical education, community and youth studies, with new courses in physiotherapy and nursing.

“HEALTH AND WELLBEING ARE EVERYONE’S CONCERN AND OUR NEW FACULTY REFLECTS THEIR IMPORTANCE IN WIDER SOCIETY AND AT THE UNIVERSITY,”

We believe that improving the health and wellbeing of individuals and communities is a growing sector which requires highly skilled graduates.

We hope to expand our current programmes and degree apprenticeships in the future with an exciting range of new courses to further boost teaching and research in this important area.

Students are studying at an undergraduate and postgraduate level. The Faculty is home to a number of active research centres with close ties to the local community as well as far reaching links internationally, to public bodies and professional teams. The centres offer opportunities for student research degrees at both MPhil and PhD level.

PROFESSOR SIMON JOBSON (DEAN OF HEALTH AND WELLBEING)

THE VISION OF THE FACULTY IS: TO ENRICH THE HEALTH AND WELLBEING OF INDIVIDUALS, FAMILIES, COMMUNITIES AND SOCIETY BY DELIVERING OUTSTANDING EDUCATION AND TRANSLATING WORLD-LEADING RESEARCH INTO EFFECTIVE POLICY AND EXCEPTIONAL PRACTICE.

22 | UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19

SUSTAINABLE DEVELOPMENT WEST DOWNS DEVELOPMENT – ENVIRONMENTAL SUSTAINABILITY AND WELLBEING The creation of our new building on the West Downs Quarter site, responds to the needs of our stakeholders for more teaching space and core facilities. This highly visible location gives us the opportunity to increase our prominence within the historic city of Winchester.

Environmental sustainability is scored by the industry standard BREEAM methodology. We are aiming to achieve a BREEAM excellent rating, utilising a number of key features, including; solar PV, green roofs, rainwater harvesting, biodiversity enhancements and energy efficient design.

At the earliest design phase, our values have been conceptualised within the creation of an art gallery, courtyard garden, public café and contemplation space. In keeping with our wellbeing values we are among the first UK universities to pursue WELL Certified accreditation – the leading global building standard for health and wellbeing. Further building features which contribute to user's health and wellbeing also include food presentation and labelling and quality of air, water and daylight.

Showcasing the environmental features of the WELL accreditation to a wide audience including students, staff and the community are a core aim of this standard and our ambition is to be sector-leading in this field.

ENVIRONMENTAL SUSTAINABILITY We are one of the lowest carbon university campuses in the country. Since 2008/09, we have reduced our emissions by 56% by floor area, the eleventh highest reduction in the sector. None of our waste goes to landfill: any waste that is not recyclable is sent to an 'energy from waste' facility, food waste is sent for anaerobic digestion and waste cooking oil is turned into bio-diesel.

We are placed 32 out of 154 universities in People and Planet University Green League. We scored highly for education, sustainable food and waste & recycling. In 2019, we were placed in the top 100 of the worldwide University Impact Rankings by Times Higher Education which recognises universities for their social and economic impact on society.

As the University for sustainability and social justice, our commitment to shaping a better world is at our very heart. We have aligned our Strategic Vision 2020-2030 with the United Nations’ Sustainable Development Goals, which offer a blueprint to achieving a better and more sustainable future for all.

We already have much to be proud of in this area.

This year, our pioneering work in sustainability and social responsibility earned us a place in the top 100 universities worldwide in the global Times Higher Education University Impact Rankings 2019. Globally we were ranked 45th in the world for Quality Education (SDG 4), placing us second in the UK. We also hold the National Union of Students’ Responsible Futures accreditation for our commitment to embedding sustainability and social responsibility in our teaching and other activities.

Furthermore, we are taking radical action to reduce our environmental impact, from pledging to eliminate unnecessary single-use plastic by the end of 2020 and becoming carbon neutral by 2030, to opening a zero waste shop in early 2020.

SUPPORTING ACCESS TO DRINKING WATER In 2019/20, to support access to drinking water, we will be introducing a branded reusable water bottle for staff and students along with installing additional bottle filling stations on campus.

A collective response by the University and College sector to the SDGs was an SDG Accord.

The University has signed the Accord’s climate emergency letter with the Vice Chancellor declaring:

“AS THE UNIVERSITY FOR SUSTAINABILITY AND SOCIAL JUSTICE, THE CLIMATE EMERGENCY IS AT THE FOREFRONT OF OUR MINDS” “SUSTAINABILITY MUST BE CONSIDERED AS PART OF EVERY NEW STRATEGY DEVELOPED, COURSE PLANNED AND CONTRACT SIGNED” PROFESSOR JOY CARTER CBE DL

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SINGLE USE PLASTICS We have pledged to eliminate the use of all unnecessary single use plastics by the end of December 2020. Single use plastics have been defined by the University as plastics that are designed or intended to be used only once, or are likely to be used in that way, before they are thrown away or recycled.

Major initiatives have already been put into place and others are in the pipeline. Implementation of the pledge is being led and co-ordinated by the Energy and Environment Team.

A Single Use Plastic Working Group has been working with our Laboratory User Group to ensure collaborative working throughout the University to tackle our reliance upon single use plastics.

Our Energy and Environment Team are working closely with SUEZ, the University’s waste contractor, to map the current usage of single use plastics on campus. This will incorporate a bin audit, online survey, interviews and workshops with key stakeholders. The mapping process will identify priorities and inform the project strategy.

Our Energy and Environment Manager is working on a proposal to introduce a BioWhale, the first stage of anaerobic digestion, onto campus. The unit would not only provide the opportunity of trialling the digestion of compostable food waste packaging to reduce the amount of plastic packing currently used, it would also support the recycling of food waste.

A surcharge of 25p has been introduced on all drinks purchased in a disposable cup as they contain single use plastic and add substantially to the amount of waste produced by the University. Since the beginning of the initiative we have supported all new students and staff by giving away over 12,000 reusable Gum-tec cups free of charge. This has resulted in over 125,000 fewer disposable cups being used since its introduction.

Our Catering Department is on the cusp of introducing an exciting new deposit scheme for reusable cups, salad bowls and soup pots. The products will be available for a deposit of one pound each from our catering outlets and can be returned to any outlet where the deposit will be returned. The scheme will be open to students, staff, visitors, and be of particular benefit when a customer wishes to purchase a drink, but doesn’t have their university or personal re-useable cup with them.

Fresher’s Fayre 2019 saw reusable branded metal straws being provided to new students when they engaged with the Energy and Environment Team.

The re-useable straws will not only support the elimination of unnecessary single use plastic on campus, but the students can use the straws in their social and recreational lives.

We have been removing plastic bottles of water from sale in our catering outlets and replacing them with water sold in glass bottles. The reduction in selling

plastic bottles of water or having them brought on to campus from outside is also being supported by the provision of additional water bottle fillers across the campus. We will also soon be providing 1,000 reuseable drinking bottles to students free of charge.

Where non re-useable plastic sandwich platters were supplied by external suppliers, these have now been replaced with cardboard trays.

Campus Management has reduced the number of cleaning products in disposable plastic containers by introducing refillable trigger sprays.

Our Conference Team is investigating alternative packaging to plastic for the complimentary toiletries supplied to external residential guests.

Our Procurement Team is working with local company ‘Warrens’ on their ‘Not a Box’ scheme for supplying stationery in a reusable container without the need for unnecessary packaging.

Following an idea from the Dean of Faculty of Business, Law and Digital Technologies, the Energy and Environment Team are running a student competition to find an innovative solution to implement at the University to help eliminate unnecessary single use plastics. This is an exciting competition that will engage with students and give them the opportunity and prestige of having their proposal put into practice in a working environment.

24 | UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19

TEACHING EXCELLENCE We have been awarded Silver in the Teaching Excellence Framework (TEF). This result reflects the high quality of our teaching and the tireless commitment and hard work of all staff to teaching excellence. 60 per cent of our full-time academic staff have a HEA fellowship, and we are continuing to work with our part-time staff on achieving fellowship.

We recognise the importance of our teaching excellence and have identified that there is room for improvement. We have set our KPIs around our strategy for improvement, challenged our Faculty Deans to identify new programmes, as well as underperforming programmes and those in decline, thus allowing us to focus our resources on developing world class pedagogy in developing subject areas, to secure our NSS ranking.

The TEF Panel considered the University‘s submission in relation to the TEF criteria and its judgement reflects, in particular, evidence of: appropriate contact hours, personalised learning through tutorials and buddy schemes that provide high levels of engagement, and commitment to learning and study from students.

Our provision has been scrutinised and approved through a final round of HEFCE Assurance Reviews, with a visit conducted at Winchester in February 2018. Our academic offer is also regularly audited internally and confirmed as meeting standards. We also enhance learning and teaching through many activities which are recognised by the sector as embodying good practice. These include: extensive experience and expertise in • Our student engagement. Examples of this include opportunities for volunteering, study abroad, and the ability to contribute formally to the academic life and operations of the University, through being a Student Academic Representative or a member of the Student Academic Council.

In addition, students write for, and co-edit, the Student Journal, Alfred, and have helped enhance the life of the University community through leading on projects funded by the Student Fellows Scheme, or by assisting an academic with an aspect of their own research through the WRAP partnerships. In 2017/18 students helped co-construct and deliver the second annual Play and Creativity Festival by being Play Champions. This role was rewarded through a bursary and featured as an accredited activity for their Higher Education Achievement Report.

HEA FELLOWSHIP

PART TIME

FULL TIME

TOTAL

Associate Fellow

33

4

37

Fellow

88

120

208

Senior Fellow

16

33

49

Total Fellows

137

157

294

Total Academic Staff

582

261

843

% with HEA Fellowship

24%

60%

35%

develop excellent academic practice • We through our annual Learning and Teaching Days, professional qualifications, and staff/student events, for instance, the Play and Creativity Festival. This celebrates the diverse ways in which we as a community approach academic and professional learning in unusual, but effective ways. It is also important for addressing sector concerns such as student mental health and wellbeing. and excellence are also recognised • Innovation in diverse ways. Each year through the Student Union, students nominate teachers for excellence in a range of categories, including Best Lecturer for Constructive and Efficient Feedback, Most Innovative Lecturer and Best Delivered Module.

Staff can also apply for Senate Awards for Learning and Teaching which reward excellence and innovation. Both are further supported through small grants, competitively bid for, to enable academics to trial new approaches and ideas in teaching.

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STUDENT EXPERIENCE Embedded at the heart of our University 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 Council meets six times per academic year with student representation from each academic department, three Student Union sabbatical Officers and seven student demographic representatives.

The National Student Survey (NSS) is one helpful lens through which to consider student satisfaction.

This feedback is gathered nationally from final year students by the NSS. The survey was introduced in 2005 and is implemented between January and March each year. In 2018-19, we had a completion rate of 75%, which is in line with the sector average.

We rank consistently high for student satisfaction, and in 2019 achieved 83.24% for overall student satisfaction. We are ninth for overall satisfaction amongst the 16 universities in the South East.

In 2018 a brand-new student magazine was launched, 'HELLO WINCH', with students as co-authors. It is published on the University website and Blog. The magazine, provides advice from our current students and graduates.

We recognise room for improvement and over the last 12 months we have actively been working with academics and students to improve the satisfaction with assessment and feedback. Embedding a number of key initiatives has resulted in increasing satisfaction, detailed as follows: 1. 'The criteria used in marking have been made clear in advance.’

2. ‘Marking and assessment have been fair.’

3. ‘Feedback on my work has been timely.‘ 4. ‘I have received helpful comments on my work’ 5. ‘I have been able to contact staff when I need to.’

We also recognise a need to improve our customer service and support and are planning a number of initiatives to develop our staff and facilities to enhance our student journey.

We have a Continuous Improvement team who are constantly reviewing processes and procedures to enhance the student journey.

STUDENT ACADEMIC COUNCIL We are one of a handful of universities that convenes a Student Academic Council. The Council is an opportunity for students to meet directly with the University Senior Management Team and ensure their voices are heard. The Council acts as a consultative and advisory body to the Vice-Chancellor and Senior Management Team of the University. It allows the student body to raise issues of concern with the University Senior Management Team and to have responsibility for a dedicated budget. In the past, the council funding has been used to increase student engagement in the Student Fellows Project and Winchester Research Apprenticeship Programme; as well as new incentives such as Student Recharge Days and Commuter Society Lounge signage.

LAUNCH OF THE STUDENT LIFE MAGAZINE

LAUNCH OF THE CENTRE FOR STUDENT ENGAGEMENT This centre is dedicated to helping to improve and facilitate good practice, to ensure a better experience for students studying at the University of Winchester, and to be able to share this practice across Higher Education Institutions nationally and internationally.

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THRIVING INDIVIDUALS INDIVIDUALS MATTER We are committed to being a university community where all individuals matter, where wellbeing is paramount and pastoral care is of the highest quality. We are driven by compassion, where people, the planet, and all living things are held in the highest regard. In April 2018, we launched our latest staff survey, to provide an opportunity for employees to feedback on their experiences in working for the University and to highlight issues they feel should be addressed in the future. We achieved a 68% response rate for this survey.

RESULTS FROM 2018 STAFF SURVEY

96% of our staff are

committed to the success of the University

90% of staff agree the University is a good place to work

98% of staff feel the

University treats people equally regardless of their sexual orientation Today we employee close to 1,000 members of staff and aim to encourage a positive working environment in which employees are helped to reach their full potential. We are proud to be one of the minority of UK organisations accredited as a Living Wage employer. We have an innovative and forward-thinking culture, with scholars at the forefront of their disciplines. This is combined with an excellent environment for learning underpinned by committed, knowledgeable and enthusiastic staff working in a wide diversity of roles. Our campus services are almost entirely in-sourced and the University has made a commitment to honouring

the Living Wage for all our employees, full-time or fractional. We are always striving for excellence and continue to look for opportunities to improve.

We have a number of formal recognition schemes in place, including the Chancellor’s Award, Values Award and the Leadership Award, which are presented to staff at our graduation events.

We celebrate diversity and welcome all, regardless of gender, sexuality, race or religion. We are a safe, friendly and welcoming environment for everyone to work, learn and visit. We actively engage with staff in terms of inclusivity, from the introduction of gender neutral toilet facilities to being a Stonewall Champion in Higher Education. We are committed to ensuring that the learning environment of the University reflects the richness of the diversity of our student and staff body. As an employer and as a service provider, the University continually monitors and updates its policies, processes 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 and health and safety of our staff and students are our primary concern. Support is offered through our Human Resources and Student Services Departments, with occupational health and mental health support provided where appropriate. We offer a continuous and varied programme of Wellbeing events, including Resilience training, Mindfulness, Nutrition and Relaxation. Our Sports Department also offers free weekly events under the Get Active Scheme, with a wide range of activities such as Badminton, Football, Cardio Tennis and a discount for staff and students on annual gym membership. We also provide a free Christmas Party for the children and grandchildren of staff and students.

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MODERN SLAVERY Our Modern Slavery Statement is designed to satisfy the requirements of Part 6, Section 54, of the Modern Slavery Act 2015. The University’s Financial Regulations, Procurement Policy and Procedures and Ethical Investment Policy state our commitments to the highest standards of ethical conduct in all our activities, along with making continuous improvements in this area. We do not engage in, or condone, the practices of human trafficking, slavery or forced labour.

We are committed to improving our business practices to combat modern slavery and human trafficking and to ensure that we are not complicit in any human rights violations. We are committed to zero tolerance of slavery and human trafficking or child labour practices.

We mitigate the risk of modern slavery occurring in our workforce by ensuring that directly employed staff are recruited by following robust HR recruitment

OUR SUPPLY CHAINS The University’s supply chains predominantly fall within the following categories: and facilities management (works, • Estates services and goods)

• ICT equipment and services • Professional services • Teaching materials We are a member of the Southern Universities Purchasing Consortium (SUPC) which has also published its own Modern Slavery Statement.

We channel in excess of 30% of the value of our addressable spend through SUPC and other agreements arranged by higher education and public sector purchasing consortia or frameworks.

The particular business and supply chains which may pose particular risks in terms of slavery are in IT and AV equipment, construction and uniform/ clothing supplies.

policies. There is a whistle-blowing policy in place for members of staff to raise any concerns about wrongdoing by the University. Staff employed on a temporary staff basis via agencies are only recruited through established sources who can provide assurance that they comply fully with the requirements of legislation relating to the rights and welfare of their candidates and employees.

Our Ethical Investment Policy has been developed to reflect 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 not knowingly invest directly or indirectly in organisations that breach human or animal rights, or that are in breach of the Modern Slavery Act 2015. Our Modern Slavery Statement is published on our website and reviewed on an annual basis.

It can be found at: www.winchester.ac.uk/media/content-assets/ documents/Modern-Slavery-Statement-2018-19.pdf

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SOCIAL JUSTICE SECTOR-LEADING IN WIDENING PARTICIPATION (WP) SOCIAL JUSTICE (WP AND COMMUNITY IMPACT) KEY MILESTONES

December 2018 First University in the South of England to be recognised as a University of Sanctuary for our work in supporting asylum seekers and refugees in our local community

May 2019 The University of Winchester received two commendations for its values-driven work in widening access and participation at the National Educational Opportunities Network annual awards

August 2019 Received the Silver Employer Recognition Scheme Award from the Ministry of Defence in recognition of being a Forces friendly university.

“AS A VALUES-DRIVEN INSTITUTION COMMITTED TO SOCIAL JUSTICE AND SUSTAINABILITY, WE STRIVE TO ENSURE THAT EVERY INDIVIDUAL MATTERS AND COMMIT TO CLOSING THE GAPS IN STUDENTS’ ACCESS AND PARTICIPATION, WITH A KEY FOCUS ON THE PERSISTENT GAPS IN STUDENT DEGREE OUTCOMES” SARAH-LOUISE COLLINS, DIRECTOR OF WIDENING PARTICIPATION

ACCESS AND OUTREACH In May we were shortlisted by the National Education Opportunities Network (NEON) for the Higher Education Institute of the Year, receiving a commendation for our values-driven approach to widening access and participation.

In 2019/20 our access and participation team worked with 18 local primary and 18 local secondary schools, reaching approximately 4,500 young people from Year 5 to Year 11 to engage in our sustained 'UWIN Aspire' primary and secondary school outreach programmes, A key component of our activity is working with partner schools to support raising attainment in literacy to enable them to access the curriculum and improve English GCSE results to support progression to higher education.

Learners in Key Stage 3, with lower than expected reading ages participated in our ‘Reading Legends’ programme. The programme involved a series of ten group reading sessions with trained university students followed by an on-campus celebration event. Targeted schools also invited our staff to provide CPD sessions in school and talks to parents and carers, supporting other key stakeholders in the community to embed high expectations in their learners. Our longitudinal tracking data shows that young people from disadvantaged backgrounds engaged in our activity are more likely to progress to higher education and succeed in their studies.

FLOURISHING STUDENTS We value the wealth of experience, skills and knowledge that students from diverse backgrounds bring to the experience of other students and staff.

While we continue to attract students from diverse backgrounds in-line with national benchmarks, we recognise that there is room for improvement in increasing the diversity of our student body.

We continue to diversify our recruitment strategy targeting sixth forms and colleges with higher proportions of students from non-traditional backgrounds. We also continue to expand our portfolio to include foundation year routes, available to students seeking to enter with AS levels or equivalent, alongside offering new courses in our Faculty of Health and Wellbeing which are traditionally more attractive to mature Black, Asian and Minority Ethnic (BAME) students.

We also acknowledge that there are large gaps in degree outcomes for students from some backgrounds traditionally under-represented in higher education and that this is a social injustice that needs to be addressed. We are particularly aware of the stark gap in degree outcomes at Winchester for those students from disadvantaged areas, Black, Asian and Minority Ethnic (BAME) students, and acknowledge there is a new and

UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19 | 29

growing attainment gap for the increasing number of students with mental health difficulties. This is a key priority for us as outlined in our Access and Participation Plan. In 2019, we participated in the Alterline collaborative, an in-depth qualitative study into the experience of Black students, that has informed our activity including developing student guides and improving our inclusive practice.

We were partners on the Office for Students (OfS) funded attainment gap project titled “Changing Mindsets: Reducing stereotype threat and implicit bias as barriers to student success”, led by the University of Portsmouth. We have found that staff and students who have growth Mindsets are more likely to want to create inclusion and to overcome bias whereas those with fixed mindsets are more likely to hold stereotyped beliefs. We offer changing mindsets across our peer-assisted learning programmes and continue to explore other ways to embed the practice into our work.

COMMUNITY IMPACT Our staff and students engage in a wide range of activities linking with and enhancing the wider community. The Community Impact Strategy 2017 – 2020, promotes collaborative, asset-based working between the University and community partners, combining the talent, resources and creativity of all involved to develop flourishing individuals and communities. The strategy is a key element of our mission ‘to educate, to advance knowledge, and to serve the common good'.

This activity includes, but is not limited to, staff providing support to organisations in the local community; hosting events open to the general public, schools and community groups; student placements as part of a course; staff and student-led volunteering through the Student Union and Student Hub; and advisory work related to academic or professional specialists.

Staff and students have participated in high-profile local festivals, including the Winchester Writer’s Festival, Winchester Poetry Festival, Winchester Hat Fair, Winchester Fashion Week and Winchester Short Film Festival. Students have been supporting the creative growth of local young people with their involvement in Winchester's Youth Theatre and the Winall Rock School. Staff conduct open lectures, including single sessions and lecture series. Examples include those lectures run by the Health and Wellbeing Research Group, Theology, Religion and Philosophy, and The English Project sessions run by the Faculty of Education.

Student volunteers have a valued role in increasing the capacity of the organisations hosting their volunteering and work-experience placements, which are undertaken throughout the community in local hospitals, schools, care homes, justice services and charities. Liberal Arts students visit schools and introduce young people to topics in philosophy and theology, creatively enhancing the national curriculum.

MILITARY SERVICE CHILDREN AND FAMILIES We continue to lead the Ministry of Defence funded Service Children’s Progression (SCiP) Alliance to support the educational progression of children from military service families, a group recognised through our own research as less likely to enter higher education. The National Education Opportunities Network awarded the Alliance with a commendation for our innovative partnership working. In 2018/19, the Alliance continued to raise and lead this agenda, working closely with UCAS (University and Colleges Admission Services) to develop guidance for prospective HE students with a service background as they go through the UCAS admissions process.

The Alliance also established a mapping tool to help practitioners identify areas for targeted outreach and commissioned the pilot of a new school framework to support the impact of the Service Pupil Premium in schools.

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A UNIVERSITY OF SANCTUARY In December 2018, we were recognised as a ‘University of Sanctuary’ receiving a Sanctuary Award from the UK charity City of Sanctuary, in recognition of our initiatives to welcome refugees and asylum seekers and support them in higher education study.

We were one of the first two universities in the UK to offer financial support for outstanding students seeking sanctuary in the UK to undertake a degree course, welcoming up to 5 new students each year. To date, 29 students from 16 countries have received awards, with 16 graduating so far. We are also 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.

The Forced Migration Network provides a forum for academics and support staff who are involved in research, teaching, outreach and support relating

to asylum seekers and refugees. In September 2018, we hosted an international, interdisciplinary conference on refugees and social justice. In the summer, we hosted our third annual ‘Refugee Family Fun Day’ in partnership with local charity the Rural Refugee Network and welcomed over 30 young unaccompanied asylum seekers and refugees onto campus to participate in our summer residential school.

EQUALITY AND DIVERSITY We have a strong commitment to the equality and diversity of all our staff and students and demonstrate this through our policies and priorities.

This includes the process of engaging staff and student voices across Equality and Diversity processes, for example individuals being able to sit on Special Interest Groups and the Equality and Diversity Forum, both of which feed directly into the Equality and Diversity Committee.

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HIGHLIGHTS FROM OUR FACULTIES FACULTY OF ARTS BUSINESS EXCELLENCE AND GROWTH In October 2018, Alistair Stewart OBE opened our state-of-the-art newsroom in our school of Media and Film. In addition to the evident boost it has given to the Journalism programme’s NSS performance (achieving 100% in 2019), it is hoped that this popular facility will promote student recruitment to Journalism as it has wtih our new recording studios which improved student numbers in Music Production – with acceptances for 2019 up by more than 150%.

GRADUATE SUCCESS AND RESEARCH IMPACT Two of our Journalism graduates had their work shortlisted in the 2018’s Broadcast Journalism Training Council awards, with one work of note shortlisted for a Royal Television Society Southern Centre Student Award. A student show about climate change (a collaboration between Creative Writing and Performing Arts students) was also shortlisted for a Green Gown award; and a recent Creative Writing PhD graduate won the Richard & Judy Book Club’s ‘Search for a Bestseller’ prize.

THRIVING INDIVIDUALS The Faculty of Arts has responded to the Staff Survey of 2018 by developing and implementing an action plan which draws upon and adds to best practice in other areas of the institution. Actions have included regular reporting to staff through Dean’s reports and weekly digests of news and announcements; opportunities for staff to take part in cultural and social activities, including discount tickets for theatre performances and the Faculty’s own public cultural events and popular monthly Tavern Talk events; and the establishment in 2018 of a staff wellbeing group and in 2019 of staff wellbeing social events.

SOCIAL JUSTICE We continue to promote cultural engagement across the region. In the academic year 2018-19, the Faculty staged five shows at the Theatre Royal Winchester and one at The Point, Eastleigh. We had three student productions (one in collaboration with Blue Apple Theatre) in Winchester’s Hat Fair.

The winner of 2018's Hat Fair student competition was mentored by the festival's artistic director in order to be an official act in 2019, with the work receiving substantial support from the Heritage Fund. The Faculty has also welcomed the offices of the Winchester Poetry Festival for an ongoing residency, opened its studios to Winchester Youth Theatre, Stopgap Dance Company, Winnall Rock School and Welsh National Opera, and hosted both the opening screening and the Hampshire Prize section of the Winchester Film Festival (the latter curated by students). In addition, we have added

to our portfolio of cultural partners, including Anvil Arts, Winchester Speakers Festival, The Grange Festival and Winchester Guide, as well as organising the first eight meetings in its series of regular public engagement events, Tavern Talks.

ENVIRONMENTAL SUSTAINABILITY The Faculty of Arts launched a major project in 2019 (which is continuing into 2020) called Climate 4 Change – a theatrical stage production managed as a student and staff collaboration between the Department of English, Creative Writing and American Studies and the Department of Performing Arts, in cooperation with Theatre Royal Winchester (and in dialogue with Winchester Action on Climate Change), which explores and promotes debate relating to issues of climate change. This project has been shortlisted for a Green Gown Award 2019.

FACULTY OF BUSINESS, LAW AND SPORT BUSINESS EXCELLENCE AND GROWTH The Centre for Apprenticeship Research and Knowledge Exchange at the Business School has helped accelerate the process by which employers and individuals with high aspirations can benefit mutually from high-quality apprenticeships. The Centre is working on ways to develop and share intelligence that will create a ‘social mobility pipeline’ to Degree Apprenticeships, Dr Adam Palmer is co-leading a Leadership Evaluation Collaboratory, funded by two NHS Leadership Academies, that aims to enhance leadership practice in the HE, public and private sectors.

‘THE IMPROVEMENT COMMUNITY OF PRACTICE, CO-FOUNDED BY DR TAMMI SINHA, BRINGS TOGETHER ACADEMICS AND PRACTITIONERS TO EXPLORE AND DISCUSS A DIVERSE RANGE OF TOPICS INCLUDING, ‘MOVING TOWARDS A CARBON NEUTRAL ORGANISATION’, AND SHARE IDEAS AND BEST PRACTICE FOR IMPLEMENTATION.’

Through our Centre for Enterprise, Design and Innovation, Dr John Richardson is engaged in an ERDF funded project that focuses on providing knowledge exchange support to innovative SME’s in the low carbon/green sector.

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GRADUATE SUCCESS AND RESEARCH IMPACT In collaboration with the Royal United Services Institute, and supported by the Higher Education Innovation Fund, colleagues in the Centre for information Rights are calling for a new code of practice to manage the use of machine learning in policing. In the report, co-authors Petros Terzis, doctoral student, and Christine Rinik, Senior Lecturer in Law, discuss the benefits of the technology and the potential issues relating to transparency, explainability and accountability.

Colleagues and students at Winchester are engaged in a research project that explores the economic strain placed on people with criminal convictions after their release from prison. This cutting-edge social research project, led by Dr Martina Hutton, Senior Lecturer in Marketing, and supported by her doctoral students Dr Michelle de Jongh and Francesca Crangle-Sim, identified that prison leavers are often left in the wilderness economically, while facing discrimination and a lack of resources when attempting to support themselves to become contributing members of society.

Dr Ben Sanders has secured Innovate UK funding to commercialise novel research in the area of mobile biometric authentication. The project analyses the feasibility of developing a multi-modal continuous and transparent authentication architecture for mobile devices that provides end-users with a convenient, non-intrusive, application specific authentication approach.

THRIVING INDIVIDUALS The House of Commons Liaison Committee’s report into the effectiveness and influence of the select committee system includes written evidence from University’s Constitutional Law expert Dr Craig Prescott. Dr Prescott, Director of the University’s Centre for Parliament and Public Law, is a leading expert on parliamentary matters and is a regular commentator on TV and Radio.

SOCIAL JUSTICE The University’s Trust, Risk Information and the Law Conference focused on the theme of ‘Caring for Critically ill Children in the Glare of Digital Media: Rights: Best Interests and Public Good in the Age of ‘Generation Tagged’. The conference explored the impact of social media on critically ill young children and their parents as well as professionals who work alongside them.

ENVIRONMENTAL SUSTAINABILITY The Business School is one of only 30 Business Schools worldwide to be awarded Champion School status by the United Nations for its commitment to the Principles for Responsible Management Education (PRME). PRME is inspired by internationally accepted values that seek to establish a process of continuous improvement among institutions of management education in order to develop a new generation of business leaders capable of managing the complex challenges faced by business and society in the 21st century.

‘Over tourism’ is a growing global issue and its negative effects on local communities and places of natural beauty are increasing. Dr Hugues Seraphin, Senior Lecturer in Event Management, is a leading author in this area and together with Dr Adam Palmer and Dr Simon Smith has secured funding from the British Academy of Management to carry our research around tourism and tourism phobia.

Dr Claire Ancient is engaged in a high profile international project known as “CommonSensing” which is based on a partnership between Fiji, Solomon Islands and Vanuatu, and a consortium of international partners. Working together they will support and build climate resilience and enhance decision making through the use of satellite remote sensing technology.

FACULTY OF EDUCATION, HEALTH AND SOCIAL CARE BUSINESS GROWTH AND EXCELLENCE The majority of EHSC programmes were revalidated in 2018-19 to enhance their credibility and currency and thereby increase student recruitment. The Initial Teacher Education portfolio is already reaping the benefits of the curriculum development: academic year 2018-19 enrolled the largest ever cohort (265 students) and PGCE recruitment has increased by 30% for academic year 2019-20.

In the context of University-wide redefinitions of academic role profile, the Faculty has recognised and formalised much of the Knowledge Exchange that staff had been undertaking either as part of their research hours or in their own time. In conjunction with the revised University Consultancy Policy, the faculty identified appropriate rates of remuneration for EHSC staff working with Local Authorities and established clear procedures for securing consultancy and Knowledge Exchange activity in the future. This preparatory work ensured that EHSC staff were able to benefit widely from the first round of University-allocated Knowledge Exchange hours, and in a very strong position to develop this area of its activity in future years.

GRADUATE SUCCESS AND RESEARCH IMPACT In September 2018, EHSC staff led two very successful conferences. The first was Boundary Crossings: an international, interdisciplinary conference on refugees and social justice which brought together colleagues from around the country to advance cross-disciplinary insights and dialogue about this global crisis. The second was Freedom in a Fractured World: sustaining the legacy of Nelson Mandela, which brought together speakers from South Africa and Britain to commemorate the anniversary of the birth of Nelson Mandela. Both conferences were highly successful, and powerfully demonstrated the important role that EHSC plays in the University’s mission ‘to educate, to advance knowledge and to serve the public good’. The impact of these events will be sustained through faculty staff members’ participation in the European project ‘Improving teaching to improve

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refugee education’, the establishment of a Centre for Refugee Studies, and the continuing relationship between our Initial Teacher Education programmes and the Nelson Mandela Museum in Qunu, SA. Claire Morse, Dr Vicky Randall, Jane Jones, Rhiannon Love and Dr Alasdair Richardson have all established significant consultancy and Knowledge Exchange relationships with regional schools and educational associations. These will form the foundation of the Faculty’s future activity and reputation for educational consultancy and knowledge exchange.

Two Erasmus projects were secured in 2018-19, by EHSC colleagues working in collaboration with HE institutions across Europe. Dr Wayne Veck, Dr Louise Pagden and Julie Wharton will work with institutions in Austria, Denmark, Iceland and Norway on the Improving Teaching to Improve Refugee Education Project. Dr Mary Scanlan will (in conjunction with staff from a local primary school) work with institutions in Belgium, Portugal, Denmark and Lithuania on the Hanging Out! Outdoor Education to enhance the quality of early childhood education and care, and to promote the active citizenship project.

THRIVING INDIVIDUALS Dr Victoria Randall has authored an All Party Parliamentary Group Report about the Primary PE and Sport Premium (2018) and been confirmed as a Project Leader for StormBreak: A mental health charity formed to generate a cultural change in primary schools by promoting movement for mental health. Dr Louise Pagden continues to be an active member of the All Party Parliamentary Group for the Teaching Profession, and she and Dr Marnie Seymour (as Co-Directors of the Institute of Education) are members of the Management Group for the Universities Council for the Education of Teachers.

SOCIAL JUSTICE Our commitment to social justice is inherent within all the activity of the Faculty of Education, Health and Social Care (EHSC). All undergraduate programmes have social justice themes incorporated into their teaching, and our trainee teachers and social workers are required to interrogate how their chosen professions contribute to debates, policy and action regarding social justice.

The Research Excellence Framework outputs of several EHSC staff consider social justice issues from a variety of perspectives (philosophical, sociological and historical). These colleagues’ research interests are reflected in the projects undertaken by EHSC postgraduate students examples include, Refugee Engagement with Holocaust Education – an Exploration, Partnerships and Pedagogy in Social Work Education and John Rawls and Distributive Justice under Global Capitalism and Power​.

ENVIRONMENTAL SUSTAINABILITY Our commitment to environmental sustainability has led to all EHSC programmes incorporating the Sustainable Development Goals into their teaching, learning and assessment where possible.

Additionally, we are among the first universities world-wide to offer the United Nations' accredited Climate Change Teacher award to all students on our Initial Teacher Education programmes.

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FACULTY OF HUMANITIES AND SOCIAL SCIENCES BUSINESS EXCELLENCE AND GROWTH The Faculty reported another strong year in recruitment, at both undergraduate and postgraduate taught level. New pathways have been developed in Criminology and Psychology to make the most of these popular subjects. The Faculty admitted its largest ever undergraduate cohort in September 2019. In July 2019 the Faculty reported strong performance in three of the largest NSS programmes both in the University and the Faculty: History, Psychology, and Criminology. In these latter two subjects (Psychology and Criminology), there was significant improvement relative to 2018 performance.

The Faculty maintained a strong consultancy presence through ARCA, our archaeological consultancy arm, with the contribution of individual academics, for instance Dr Ryan Lavelle acted as a consultant for the Last Kingdom TV series.

GRADUATE SUCCESS AND RESEARCH IMPACT Programmes with a strong vocational focus, especially Forensic Studies and Archaeology, reported positive Destination for Leavers in Higher Education (DLHE) results. The Faculty is engaged in a pilot, focused on Sociology, to explore how specific interventions can further enhance our graduates’ success.

Dr Christina Welch has undertaken research into the medieval Jewish presence in Winchester. This has resulted in a pamphlet produced by Winchester City Council and promoted by the local tourist office helping people trace the history of the Jewish population through a walking tour.

Dr Niall Finneran (with Dr Christina Welch) undertook a Knowledge Exchange project working with school children in Tower Hamlets, East London, focused on heritage and memory.

THRIVING INDIVIDUALS The Staff Survey results were released in September 2018. Across the board, the results revealed improved performance since September 2016 when the survey was last run. Staff in the Faculty reported confidence in their line manager’s support, in the Staff Development Review process, and in the way their contribution is valued. The use of a Staff Survey Action Plan by the Faculty is continuing to build on this strong performance, with a focus on work/life Balance.

SOCIAL JUSTICE The Criminology programme team worked with HMP Winchester on the ‘Breaking Walls’ initiative.

This project involved delivering Level 4 Criminology teaching in the prison, with students and studentresidents from both Winchester and HMP. The initiative culminated in an awards event in March 2019.

ENVIRONMENTAL SUSTAINABILITY The Faculty continues to embed the SDGs in its education. Students specifically engage with the Climate Emergency in dedicated modules, for example, the Sociology module ‘The Environment, Climate Change and Globalisation’ and the Geography module ‘Biogeography and Conservation’.

MATERIAL RISK

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OUR MATERIAL RISKS To create long-term value, we must anticipate the risks threatening our institution and that of our customers/stakeholders, whilst we still capitalise on the new opportunities offered by a changing world. We must maintain a dialogue with our internal and external stakeholders to identify those risks and opportunities (illustrated in our Risk Register). Our Risk Register includes key business and sector risks, as well as some specific to Winchester and to our key stakeholders/ customers.

OUR APPROACH TO RISK MANAGEMENT Our Board of Governors have delegated authority to the Risk and Audit Committee for the oversight of

Risk Management, including the Register monitoring.

This ongoing review enables us to identify the material issues that are most likely to affect value creation, as well as our strategic objectives, service delivery and assets. We undertake a systematic and methodical identification of key risks and identify control measures to mitigate them.

Whilst risk cannot be eliminated completely, the approach of the Risk and Audit Committee is to be ‘risk aware’ rather than ‘risk averse’ by taking intelligent risks that protect our strategic objectives.

Below is the most recent update presented at the Board meeting on Wednesday 3 July 2019. The following are our key risks, selected from our risk register.

CHALLENGES A key challenge for our institution is the demographic downturn with the number of 18year olds reducing until 2021. In response, we have enhanced our marketing strategy and extended our academic portfolio.

Allowance (DSA) indicate that as an organisation, we now have to take on more financial responsibility for students previously supported through government funding. This is a particular issue for the University, given the proportionally high number of our students with disabilities (12.9% compared to the sector average of 6.6%).

We are one of a small handful of universities experiencing growth in undergraduate applications year-on-year. With a 5% year-on-year growth in placed applicants in September 2018, we outperformed our competitors by a considerable margin. An essential part of this success story is the continuous development of our portfolio with the introduction of new, popular courses such as Physiotherapy and Computer Science. We will continue to innovate and evolve our portfolio to secure a strong future for the University. This is a key component of our next Strategic Plan, covering the period to 2030. The portfolio review has led to the University introducing a targeted voluntary severance scheme in 2019, concentrating on particular areas where recruitment has decreased, this led to 47 members of staff accepting this severance scheme by the 31st July 2019.

Upon reflection we have not capitalised on international student recruitment and are putting a strategy in place to respond more proactively to this challenging market place, to increase our market share. We are currently restricted by our campus footprint, in the context of planning restrictions and the physical size of the estate. We are investing in our estate and infrastructure to support learning and teaching excellence and to ensure we are attractive to potential students. We also have an estates master plan, which will be reviewed to align with the new strategic plan.

The outcome of the Government’s fees and funding review is due to be released in Spring 2019. We are modelling potential scenarios, from the reintroduction of a student number cap (which would limit growth), or the reduction in tuition fees. SMT and the Board of Governors are fully aware of potential challenges and are considering the different scenarios. Our agile approach has meant that we are in a positive position to respond to these external challenges. The changes to the government reforms on the Student Disability

We are committed to working in partnership with our students to enable them to reach their full potential, personally and academically. We are passionate about our student satisfaction, that is why we take feedback from surveys such as the National Student Survey (NSS), and data from the Destination of Leavers from Higher Education (DLHE). We consider student views and understand what is working well and where we need to improve, and take action accordingly. We our developing a new NSS strategy and have commissioned a new working group to develop plans for improvements. By concentrating our efforts on increasing student satisfaction and increasing graduate employability, we hope to improve our league table results and Teaching Excellence Framework ranking.

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RISK AND RANKING

RISK DESCRIPTION

Financial sustainability

We have undertaken a voluntary severance programme, which resulted in 47 members of staff leaving the University. We continuously review financial sustainability with our Director of Finance and Planning reporting to the Senior Management Team. We are developing a procurement function to ensure robust purchasing control and to maximise value for money. We are undertaking long range (5 year) forecasting and scenario planning. Budgetary strategy and contribution costing ties expenditure to income, and management accounts and finance system are used to monitor actual costs against budget, exceptions being reported to SMT and Board. We are carefully monitoring our staff costs, through control of staff recruitment and looking for opportunities for restructuring.

Failure to recruit a sufficient number of students, thus directly impacting our core income stream

We increased student numbers this year, as result of portfolio expansion, major investment and improvement in our brand and marketing. We have a new Department of Communications and External Relations bringing together key areas supporting recruitment activities. We undertake close monitoring of competitors activity and UCAS data to identify potential risks and react accordingly. We hosted a successful UCAS Hampshire Fair, and have been nationally recognised for our Widening Participation Activity.

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

We inform and influence national debate and 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 Higher Education Commission on challenger institutions and 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).

Poor rates of graduatelevel employability compared with sector/ competitors, impacting our league table ranking and student demand

We have created new opportunities for volunteering/placements together with extended alumni bursary schemes. We have created a new Employability Strategy and faculty-based employability advisers. We have also validated new programmes with clear career paths. Further initiatives include professional accreditation for relevant programmes, and the creation of a Winchester Hub to support aspiring entrepreneurs, in order to enhance graduate employability.

Financial Sustainability

=1 Student recruitment

=1 Changes in government policy and funding

=1 Graduate employability/ further study

4 Estates Enhancement

5

RISK MANAGEMENT

Failure to ensure continuous enhancement of the University’s estate

Our Board have made strategic decision to invest in development to increase available student accommodation. We are finding alternative sources of capital funding for estates investment. We have undertaken a robust sensitivity analysis to examine estate enhancement proposals in light of student recruitment challenges.

We have developed a new role for the Standing Committee of monitoring financial performance of the West Downs project and created a new major project governance process for the new West Downs Centre to be adopted for all major projects going forward.

We have a 10 years of forward maintenance requirements, and estate building condition surveys are agreed with Finance so that sufficient funding and resources are employed to mitigate non-compliance.

Brexit

6

The University is negatively affected by the UK vote to leave the EU in the referendum on 23 June 2016

We have provided legal advice to our EU staff and students. The government have launched a Settled Status Scheme, and we have communicated this to staff and students. We have created a new EU student recruitment strategy, and a new international recruitment strategy to potentially offset EU downturn, including USA. Our Vice-Chancellor has written to all EU students and the First Deputy has written to all EU staff advising of Settled Status scheme.

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RISK AND RANKING Sustainability of Research and Knowledge Exchange

7 Student Experience

8 Reputation

=9 IT, Information and Data Security

=9

RISK DESCRIPTION

Failure to maintain the appropriate amount and quality of research and knowledge exchange activities

RISK MANAGEMENT We have a new Current Research Information System – Pure, which has been implemented for all academic staff. We have accountability of all academics to deliver according to their individual workload allocation, supported by all line managers.

We have a new strategic model for distribution of Quality Related (QR) funding implemented in 2018-19, revised again for 2019-20.

The failure to deliver continual improvement in student experience in the context of current financial constraints and uncertainties

The student experience is of the upmost importance to the University.

We have introduced a new approach to NSS to increase accountability at department level. We have made radical changes to our Assessment Strategy, to reduce number and diversity type of assessments. We have introduced free printing and a Get Involved button. We have also made additional investment in Canvas, our online learning management system.

A decline in external perceptions of the University

We had a positive year, we were recognised as sector leading in sustainability by government, the National Union of Students, and Green Gown Awards. We achieved the status of Principles for Responsible Management Education, and had positive feedback from Global Excellence Quality Management visit. We developed a local community newsletter to highlight events aimed at the public, held regular meetings with Winchester City Council and attended key events.

Security of University systems and network compromised leading to loss of critical services and/or loss or exposure of sensitive data

We renewed our Cyber Essentials Certification in August 2018 and have a relevant Cyber Response Cyber and Data Security Insurance Policy in place. We secured funding for applications and a network monitoring server through 2017-18 project bids.

We have a clear University Business Continuity Plan, and have a close working relationship with JISC. We have key knowledge of national plan for mitigating attacks and have undertaken Business Continuity exercises.

Our internal process ensure that all software requests are instigated for security and data protection issues. We have a target for 100% staff to complete GDPR training (currently 89%).

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VALUE FOR MONEY AND PROCUREMENT The Office for Students 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 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.

At the University of Winchester, we believe that there is a clear relationship between how we create value and the value for money we provide to our stakeholders. Value for money is about maximising the value generated from our financial capital.

However, through our integrated thinking we believe that value encompasses all our capitals, as outlined in our Value Creation Model on page 19.

Our Integrated Report clearly describes our value creation and the areas in which we have delivered value from our financial inputs.

As the University for Sustainability and Social Justice we place greater value on financially supporting environmentally sustainable, low carbon practices which is exemplified by our investment in our new carbon efficient building at our West Downs Quarter. Whilst value for money was at the forefront of the tender for securing a development partner, it was also important to the University that our partners would support an energy efficient design incorporating solar PV, green roofs and rainwater harvesting. Not only does the sustainable design lead to a carbon efficient building but also to an improved full life cost of running the building.

We provide value for money for our students, investing in a modern, sustainable and safe campus.

With 57% of our tuition fee income spent on direct teaching costs and learning resources.

Direct cost savings are achieved through active contract engagement and management and robust tender processes. The University also benefits from a number of local and national purchasing consortia and partnerships, including:

• GOV.UK – via Crown Commercial Services (CCS) • HE Shared Legal – legal services provision Internal Audit Partnership with • Southern Hampshire County Council Procurement for Universities and • Advanced Colleges based in Scotland (APUC)ritish Universities Finance Directors Group (BUFDG) – for online financial training

• Eduserv – for the purchase of software licences • iESE – construction framework • JISC – for broadband purchasing • Local Government Procurement Network (LGPN) Universities Purchasing Consortium • London (LUPC) • NHS – TDS Framework Universities Construction Consultancy • Southern Affinity Group (SUCCAG) • The Energy Consortium (TEC) Society of College, National and University • The Libraries (SCONUL) The aforementioned organisations consistently offer the sector value for money, often through rates specifically negotiated for the Higher Education sector. For example, figures published by SUPC for our 2018/19 expenditure demonstrate that the University has succeeded in saving a total of £288,710 (£132,880 cashable savings) on addressable spend of £2.3m, through channelling the University’s non-pay spend through regional and national collaborative agreements where possible. The majority of our SUPC addressable spend is associated with computer supplies and services, the remainder based on furniture, library and publications.

The University continues to utilise a shared service arrangement for the provision of internal audit services for 2018/19, provided by Southern Internal Audit Partnership. This is a partnership arrangement set up by Hampshire County Council pooling expertise and enables a flexible, responsive and resilient cost-effective service to all participating partners.

The Catering department purchases through TUCO (The Universities Catering Organisation)

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and continues to engage local suppliers to ensure that, where possible, students, staff and visitors receive ethical and sustainable, local produce.

They encourage those suppliers to join framework agreements as tenders are issued, helping maintain supply and supporting the growth of independent business.

The University openly tenders for all non-framework purchases above its internal thresholds which fall within the thresholds set by UK Public Procurement regulations.

Our Procurement function regularly monitors category expenditure and contract administration to ensure the University is achieving best value from existing suppliers and agreements.

A procurement example of our integrated thinking is our recent tender for a stationery provider. Following an open tender process, the University awarded its stationery contract to a local, Winchester-based supplier, Warrens Office Supplies. However, as well as value for money, the tender process weighted environmental factors such as controlling delivery,

managing packaging and reducing single use plastics as high priority factors in our award criteria.

We are now looking forward to partnering with Warrens and delivering a whole host of benefits to the University including, cost savings, reduced deliveries and cutting the use of single use plastics.

In partnering with organisations such as Warrens we can monitor and influence are impact throughout the supply chain and analyse the products we source from cradle to grave. By doing this we are starting to actively address the whole “circular economy” of our procurement activity.

By running our own tender exercise, rather than calling off from a pre-tendered framework agreement, allowed us to completely control our specifications and align them with the Universities values and aspirations. Environmental and Ethical considerations now play a significant part of the assessment of our contracts allowing us to utilise our suppliers' expertise to help us deliver against our key objectives, including value for money.

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FINANCIAL REVIEW Since the introduction of the Office for Students last year, it has been another year of change and turbulence across the Higher Education sector, with ongoing uncertainty regarding the impact of Brexit on our students, staff and the wider environment. The uncertainty was exacerbated by the publication of the Augar Review of Post-18 Education and Funding and significant pension fund challenges, including financial impacts arising from court rulings and the announcement of future contribution increases being implemented to mitigate pension fund deficits.

Despite these externally-driven challenges, the University has invested time and resources to consider how it can build upon its strong foundations as a compassionate university community where all individuals matter, where wellbeing is paramount and pastoral care is of the highest quality.

To help us mitigate current and future challenges, we have developed a new Strategic Vision and FiveYear Business Plan (hereafter referred to as Business Plan) that will enable us to become internationally recognised as a beacon for educational excellence, social justice and sustainability. Our Business Plan has been developed in light of the aforementioned challenges and incorporates plans to develop our new Faculty of Health and Wellbeing.

FINANCIAL ENVIRONMENT For the University of Winchester, the financial environment was dominated by three major events in 2018/19: publication of the Augar review of Review of • The Post-18 Education and Funding in May 2019 increases to teachers’ pensions • Funding employer contributions impact of the McCloud court case and • The Guaranteed Minimum Pension (GMP) equalisation on Local Government Pension Schemes (LGPS).

AUGAR REVIEW The Government's independent panel report to the Review of Post-18 Education and Funding (the Augar review) was officially published and presented to Parliament by the Secretary of State for Education in May 2019. The review concluded that whilst the Higher Education sector as a whole is in ‘reasonable financial health’ the ‘performance at individual institutional level varies widely’ with ‘a quarter of universities in deficit’ (in 2017/18).

Government had believed that the open market conditions, introduced with direct loans to students, would drive tuition fee prices down. This did not happen with almost all universities charging the maximum fee cap level for undergraduate degrees in order to remain financially sustainable. In order to tackle the consequential growing student debt, the review made a number of financial recommendations, including:

Recommendation 3.2 – The cap on the fee chargeable to HE students should be reduced to £7,500 per year which could be introduced by 2021/22.

Recommendation 3.3 – Government should replace in full the lost fee income by increasing the teaching grant, leaving the average unit of funding unchanged at sector level in cash terms.

Recommendation 3.4 – The fee cap should be frozen until 2022/23, then increased in line with inflation from 2023/24.

The report also recommended differential fees ‘to reflect more accurately the subject’s reasonable costs and its social and economic value to students and taxpayers’ and a potential ‘minimum entry threshold’ for courses with poor retention. It also recommended a potential withdrawal of funding for foundation year courses.

The University has tested its financial sustainability at various tuition fee levels, including £7,500 per year.

Whilst the final outcome and timing of any changes are still unknown, our modelling determined that the financial sustainability of the University would depend upon our portfolio of high, medium and low cost subjects and their relative funding. In order to mitigate the future risks, we have planned to develop a number of courses in our new Health and Wellbeing Faculty which we believe will attract higher fees and/or funding.

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TEACHERS’ PENSION SCHEME Government confirmed an increase to employer contributions to the Techers’ Pension Scheme (TPS) from 16.48% to 23.68% from September 2019, an increase of more than 43%. Government cited a reduction in the discount rate (SCAPE rate) used by its actuaries from 3% to 2.4% to ensure the future financial viability of the fund. Similar increases in employer contributions have since been proposed for all publicly funded schemes, including local government schemes.

We have forecasted the impact of the TPS contribution rate increase as adding at least £1m to staff costs from 2019/20.

HAMPSHIRE LOCAL GOVERNMENT PENSION SCHEME In December 2018 the Court of Appeal ruled in the McCloud/Sargeant judgement that the transitional protection arrangements put in place when the Firefighters' and Judges' pensions scheme were reformed were age discriminatory. In July 2019, the Chief Secretary to the Treasury published its written statement confirming that the McCLoud remedy will apply to all public service pension schemes with transitional protections, including the LGPS. The impact of this ruling meant that the University had to provide a further £1.42m in its LGPS pension cost provision in 2018/19.

During 2018/19, the High Court handed down a

judgment involving the Lloyds Banking Group’s defined benefit pension scheme. The judgment concluded that the scheme should be amended to equalise pension benefits for men and women in relation to guaranteed minimum pension benefits (GMP). As a result of this ruling, the Government’s commitment to pay pension increases on GMP’s for members was calculated as 0.07% of defined benefit obligations at 31 July 2019. This equated to an additional past service cost provision of £50,000 required by the University in 2018/19.

Further details regarding the University’s LGPS pension provision increases can be found under note 21 of the notes to the accounts, ‘Defined Benefit Obligations’, on page 90.

BREXIT We regularly review the progress and impact of Brexit on all our stakeholders. We maintain up-todate internet hosted information for students and staff to help them navigate this period of political uncertainty. We have also reviewed the financial and operational risks associated with the withdrawal of the United Kingdom from the European Union and incorporated these into our risk register. We have undertaken a risk review of our supply chains to identify high risk areas for further contingency planning. The University continues to hold regular Brexit meetings to keep abreast of the latest changes.

FINANCIAL STRATEGY Our Financial Strategy is to enable the University to reach its potential and implement its strategic Business Plan. It has been drafted with reference to the five principles: 1.

Long-term viability and matching resources with objectives

2. Maintaining productive capacity to meet current objectives 3. Financing development and investment 4. Evaluating strategic alternatives and managing risks 5. Integrating financial and other corporate strategies In light of the Higher Education environment we are navigating, the Financial Strategy outlines our four strategic priorities for the year ahead: Financial sustainability – To remain financially sustainable and produce sufficient cash to support our strategic objectives and provide institutional sustainability.

Operational efficiency – To continuously improve efficiency and effectiveness - managing the cost of operations and delivering value for money whilst continuing to maintain a sustainable recurrent investment in the academic, corporate and support operations.

Capital investment – To ensure the development of the West Downs learning and teaching building and the subsequent servicing of the Triodos bank loan are a priority whilst allowing for other strategic investment projects to deliver future benefit to the University at a level that will not put the University at financial risk.

Treasury management – To assess and manage risk in all University growth and development activities and to operate sound treasury management as outlined in the Treasury Management Policy.

In order to assess our performance against our Financial Strategy, the Board of Governors has approved three major key performance indicators: EBITDA (earnings before interest, tax, depreciation and amortisation) as a percentage of total income, a margin for sustainability and investment and a ratio of bank borrowing to EBITDA. These three KPIs are further outlined under Financial KPIs on page 47.

UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19 | 43

FINANCIAL PERFORMANCE The financial statements reflect a challenging yet positive year of further growth at the University of Winchester, whilst the sector continues to contract overall. We have bucked the trend of the demographic downturn achieving in undergraduate student recruitment throughout the downturn. We have enhanced our academic partnerships in the UK and across the globe and invested in our students’ experience, academic endeavours and capital infrastructure. This is reflected in our strong income growth of £1.6m (2%) against last year.

However, the impact of the aforementioned Higher Education financial environment challenges, including frozen UK tuition fees and rising pension service costs, had an adverse impact on our financial performance for the year. Our deficit outturn of £2.9m was predominantly caused by unplanned pension cost provisions of £2.2m and an un-budgeted voluntary severance scheme costing £1.1m.

Following the Government’s announcement of a 43% increase in our TPS contribution rate, we undertook a review of its academic portfolio. The review highlighted our developing programmes and our underperforming programmes. It also identified potential programme areas for growth and development, which informed our recruitment planning in our Five-Year Business Plan.

This is a substantial investment for the University and will be a flagship building that will add a further 20% to our learning and teaching space. It will be a visible advertisement for the University due to its prominent location on Romsey Road, a major gateway into Winchester city centre. The development underpins our ambition and our strategic aim to continue to grow its student numbers into the future and thus benefit from the economies of scale experienced by larger universities. The new space will also allow us the opportunity to widen its community and partner engagements, incorporating a public gallery and catering and conferencing facilities.

INCOME Total income for the year is £80.5m (2017/18 £79.0m), of which tuition fee income accounts for 77%, which is broadly consistent with 2017/18 at 76%. The majority of the increase in income is due to healthy student recruitment and retention, including a higher than expected increase (12%) in part-time student recruitment.

TOTAL INCOME 2018/19 (£m) Total: £80.5m

Tuition fees and education contracts: 61.8

Endowment and investment income: 0.2 Research grants and contracts: 0.

0.5 Funding body grants: 3.3 3.2

Other income: 14.7

We made the decision to reduce investment in underperforming, legacy programmes and to focus its investment on new, developing subjects areas such as Health and Wellbeing and Computer Science. A planned voluntary severance scheme was introduced in March 2019, primarily targeting underperforming programmes. The scheme is expected to realise future staff cost savings of £2.1m per annum.

Despite a deficit outturn, the University’s cash flow remained strong with a net cash inflow from operating activities of £5.8m and a positive EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) of £6.7m, being 8.3% of income.

We progressed our major development of a new learning and teaching building on our West Downs Campus. The £48m construction phase is being part funded by an ethical loan secured with Triodos Bank.

At 31 July 2019, £10m of the £30m facility had been drawn and the building is scheduled for completion in early 2020.

TUITION FEE INCOME 2018/19 Per cent Full-time home and EU students: 87%

Part-time students: 3%

Full-time international students: 6%

44 | UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19

Strong student recruitment was experienced across the faculties including our new Health and Wellbeing faculty with a first year of full recruitment to our new Physiotherapy programme. The Faculty is core to our financial sustainability with plans to invest further in subjects allied to medicine which currently have the second highest number of applications per course of all subject areas. The recently strengthened collaboration with Hampshire Hospitals NHS Foundation Trust will provide major support to the portfolio development as this new Faculty expands.

Our Faculty of Business, Law and Digital Technologies is also showing strong recruitment with 60 firm acceptances to new courses in Cyber Security and Computer Science. Further degree courses in Banking and Finance, Data Science and Software Engineering are planned by the Faculty for 2019/20/21. We also experienced further growth in Foundation programmes.

Postgraduate taught course income increased by 10% to £3.4m. This increase has been influenced by the second year of postgraduate loans and partly due to an inflationary increase in the course fee. Full time postgraduate research income also increased by 7%.

Our fee waivers increased by 14% in the year to £0.7m reflecting our continued commitment and focus on Widening Participation.

Funding body grants decreased by 10% in the year, primarily due to a 9% (£0.2m) decrease in the recurrent funding from the Office for Students.

Recurrent funding now accounts for 2% of our income, reducing from 8% five years ago.

EXPENDITURE Total expenditure was £83.4m (2017/18 £77.0m), an increase of 8%. The increase being predominantly due to an increase in staff costs.

Total staff costs for the year increased by 13% to £46.9m (2017/18 £41.4m), due to increases in all categories of staff costs as follows: salary and social security costs increased • Basic by 6% to £37.6m due to an increase of 13 FTE academic staff and 11 non-academic staff to support growth in new and existing programmes and our new Health and Wellbeing Faculty.

However, the voluntary severance scheme reduced our future FTE headcount by 47 at the end of the year although the benefit of this decrease will not be felt until 2019/20. costs increased by £2.4m to £8.0m • Pension due to the aforementioned LGPS pension cost provision increases. new apprenticeship levy increased by 7% as • The a full year of the levy is experienced. costs of £1.1m have been reported • Restructuring in the year due to the aforementioned voluntary severance scheme.

EXPENDITURE 2018/19 (£m) Total:

Depreciation: 5.3

STAFF COSTS AS A PERCENTAGE OF INCOME

80% 70% 60%

Other operating expenses: 29.0

50% 40% 14/15

15/16

16/17

Basic salary as a % of income Total staff costs as a % of income Total staff costs excluding voluntary severance

17/18

18/19

The increase in staff costs as a percentage of turnover is attributable to the pension cost provision for 2018/19, the continued increase in pension contributions and the voluntary severance scheme undertaken in the year. The above chart shows how the underlying total basic salary has been carefully managed, the overall increase in staff costs being largely due to factors that are not within our direct control.

Other operating expenditure has increased by 1% to £29.0m (£28.8m 2017/18) during a time when inflation has been at 2% (CPIH) across the same period. This relative decrease in operating expenditure has been achieved through budgetary

UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19 | 45

control and a rolling programme of contract retendering and proactive contract management.

However, an underlying increase in cost was experienced under repairs and general maintenance (18%). Whilst reactive maintenance remained in line with last year, our planned maintenance expenditure increased as we continue to invest in our existing estate. However, the overall increase in maintenance costs was offset by a 25% saving on consumable expenditure which was reflected across the board from budgeted savings on items such as paper consumables, stationery and uniforms.

Depreciation increased by 10% (£0.5m), reflecting a continued investment in our existing estate. The costs associated with the West Downs development are not yet being amortised until the building is completed early 2020 when the University’s depreciation charge will increase considerably.

Interest and other finance costs have increased by 15% (£0.3m). To finance the West Downs development, we secured a £30m loan facility from Triodos Bank in May 2018. The facility is amortised over 25 years ending on 31 July 2043. On 1 June 2018 we exercised an initial option to drawdown £10m, with a 10-year fixed interest rate. The increase in interest cost reflects the first full year of interest charges on the initial £10m drawdown in 2017/18. The remaining £20m is expected to be drawn in 2019/20 to fund the completion of the building.

BALANCE SHEET Fixed Assets Capital expenditure on the new West Downs development in the year (£22.1m) has dominated the £32.8m increase in the value of our non-current assets. The remaining expenditure reflecting our continued investment in its existing estate to maintain the quality of teaching rooms and social areas, expending more than £9.4m on capital improvements to existing buildings in the year.

There were no significant disposals or impairments in the year and the net book value of our fixed assets increased by £27.4m to £198.6m.

Current Assets The £24.1m decrease in current assets reflects the utilisation of our funds on deposit to finance the West Downs building project. However, current assets include a £1.7m increase in prepayments resulting from a partnership investment in Winchester City Council's Sports and Leisure Park development which is expected to be completed in 2021.

Net current assets were reduced by a further £4.7m due to our AIB loan being recognised as a current liability.

Creditors Creditors falling due after more than one year decreased largely due to the change in treatment of the AIB loan mentioned above as detailed in note 14 to the accounts. However, this decreased was overshadowed by a £7.2m increase in pension provisions as detailed in note 16 to the accounts.

Cash Position Closing cash and investments was £15.2m, a decrease of £25.9m, largely due to the expenditure on our West Downs project through the year.

Cash has been carefully managed throughout the year to avoid drawing further loan capital unnecessarily, to keep interest charges to a minimum. It is expected that the remaining £20m of the Triodos loan facility will be drawn in 2019/20.

Our 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 2018/19 £5.8m

£0.5m

£3.2m £29.0m

£41.1m

£15.2m

Opening cash and investments

Cash inflow from operating activities

Cash flows from investing activities

Cash flows from financing activities

Capital expenditure

Closing cash and investments

46 | UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19

FUTURE SUSTAINABILITY In January of this year the construction phase of our £48 million West Downs development commenced, with the building ready to open semester two in January 2020.

a deficit for 2020/21 as our investment increases before returning to successive and sustainable surpluses in future years once the benefits of our new West Downs facility and our new Health and Wellbeing Faculty are fully materialised.

This is a substantial investment for the University and will be a flagship building that will add a further 20% to our learning and teaching space. The development underpins our ambition and strategic aim to continue to grow its student numbers into the future and thus benefit from the economies of scale experienced by larger universities.

Whilst our income projections are strong, with a forecast of continued growth, we also recognise the need to develop new income streams. We have committed to strengthening our alumni and fundraising functions through increasing our fundraising activities and strengthening our fundraising team.

The development has had a major impact on our predicted future financial performance. By enabling the University to grow its student numbers, the development is a catalyst in securing our future financial sustainability. However, in the short term the development causes a significant increase to our cost base, in particular due to depreciation and loan interest charges. Whilst we are already initiating new programme developments to complement this new build, these additional costs will not immediately be exceeded by additional student fee income until the new programmes are fully established, two to three years after the building is opened. We have forecast

We are a people organisation and our values and purpose support us to deliver opportunities for our staff and students as global citizens in a global knowledge economy. We are engaging, and will continue to engage, in the long-term; delivering inclusive and inspirational teaching, learning and research to the diverse and talented communities we serve. We will support each other to achieve the best we can for our students and staff and we will engage with policy makers to shape our future as a successful institution which is world-leading in values-driven higher education.

UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19 | 47

FINANCIAL KPI S Key Performance Indicators (KPIs) are used by our Senior Management Team and by our Board of Governors to assess the University’s performance.

All KPIs have been revised in line with our strategic plan and changes in the external environment.

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

Our profitability percentage reduced to 8.3% in 2018/19 due to the impact of the aforementioned HE financial environment challenges, including frozen UK tuition fees and rising pension service costs, and our in-year voluntary severance scheme, both having an adverse impact on our financial performance for the year.

Our MSI factor is similarly derived from EBITDA but is calculated from historic periods and future forecast periods taken from our Business Plan. Whilst our MSI decreases to 8.7%, this is largely due to our 2018/19 result and future planned investment in new programmes.

Financial KPIs

2017/18

2018/19

Profitability % EBITDA / Total income

11.8%

8.3%

Margin for Sustainability and Investment (MSI)

12.0%

8.7%

Our financing KPI of negative 0.1 represents a ratio of net bank borrowing to EBITDA. The ratio is negative due to our cash exceeding our bank borrowing at 31 July 2019. Thus, the ratio for both 2017/18 and 2018/19 are strong against a benchmark of 5.0, although this KPI will reduce as we move into a net debt position from 2019/20 onwards.

Financing – Bank borrowing/EBITDA

-2.7

-0.1

SIGNED ON BEHALF OF THE BOARD OF GOVERNORS:

EBITDA = Earnings Before Interest, Tax, Depreciation and Amortisation

A C Lovell Chair of Board of Governors

Professor Joy Carter CBE DL Vice-Chancellor Date: 27 November 2019

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STATEMENT OF BOARD OF GOVERNORS RESPONSIBILITIES IN RESPECT OF THE STRATEGIC REPORT, THE DIRECTORS’ REPORT AND THE FINANCIAL STATEMENTS

50 | UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19

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

Company law requires the directors to prepare financial statements for each financial year.

Under that law they have elected to prepare the University financial statements in accordance with UK accounting standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. The terms and conditions of funding further require the financial statements to be prepared in accordance with the 2015 Statement of Recommended Practice – Accounting for Further and Higher Education, in accordance with the requirements of the Accounts Direction issued by the Office for Students.

Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of

the University and of their income and expenditure, gains and losses and changes in reserves for that period. . In preparing each of the University financial statements, the directors are required to: suitable accounting policies and then • select apply them consistently; judgements and estimates that are • make reasonable and prudent; whether applicable UK accounting • state standards have been followed, subject to any material departures disclosed and explained in the financial statements; the University’s ability to continue as a • assess going concern, disclosing, as applicable, matters related to going concern; and the going concern basis of accounting unless • use they either intend to liquidate the University or to cease operations, or have no realistic alternative but to do so.

The Board of Governors is responsible for keeping adequate accounting records that are sufficient to show and explain the University’s transactions and disclose with reasonable accuracy at any time the financial position of the University and enable them to ensure that its financial statements comply with

UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19 | 51

the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the University and to prevent and detect fraud and other irregularities.

SIGNED ON BEHALF OF THE BOARD OF GOVERNORS:

The Board of Governors are also responsible for ensuring that:

A C Lovell Chair of Board of Governors

from whatever source administered • funds by the University for specific purposes have been properly applied to those purposes and managed in accordance with relevant legislation; provided by the Office for Students • funds and Research England have been applied in accordance with the terms and conditions attached to them; that there are appropriate financial and • ensuring management controls in place to safeguard public funds and funds from other sources; and the economical, efficient and effective • securing management of the University’s resources and expenditure.

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

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 27 November 2019.

The auditor has served for three years.

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

Professor Joy Carter CBE DL Vice-Chancellor Date: 27 November 2019

REGISTERED OFFICE: University of Winchester Sparkford Road Winchester Hampshire SO22 4NR

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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 2019.

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 Professor Christopher Gaskell Peter North

31 July 2019

Dr Emma Page ACADEMIC GOVERNORS Professor Joy Carter (ex-officio) Professor Louise Curth

31 July 2019

Professor Neil Marriott (ex-officio) Professor Elizabeth Stuart (ex-officio) Professor Nigel Tubbs PROFESSIONAL SERVICE STAFF GOVERNORS Dr Lesley Black Tom Lowe

1 August 2018

FORMER STUDENT GOVERNOR Peter Lidgitt

1 August 2018

STUDENT GOVERNOR Talivaldis Atvars Megan Ball

31 July 2019 1 August 2019

CLERK TO THE GOVERNORS/COMPANY SECRETARY Stephen Dowell Colette Fletcher (Company Secretary) Nigel Trethewy

1st November 2019 19 January 2019

30 September 2019 18 January 2019

STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL

56 | UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19

CORPORATE GOVERNANCE The University is committed to exhibiting best practice in all aspects of corporate governance.

This statement details the manner in which the University has applied the principles set out in the Committee of University Chairs (CUC) published guidance, the Higher Education Code of Governance (December 2014) and the 2018 UK Corporate Governance Code issued by the Financial Reporting Council in July 2018, in so far as they relate to Higher Education Institutions. Its purpose is to help the reader of the Financial Statements understand how the principles have been applied.

LEGAL STATUS AND PUBLIC BENEFIT The University of Winchester is a company limited by guarantee, registered company number 05969256.

Every Director and member of the company is also an acting Governor of the University. The University is an exempt charity under the terms of the Charities Act 2011, meaning it is exempt from registration with the Charity Commission, with its Governors as managing trustees.

The principal objectives of the University, in accordance with Section 124 of the Education Reform Act 1988, are concerned with the provision of Higher Education and the conduct of research. Supporting this, the University also undertakes other activities including knowledge exchange, consultancy and the provision of accommodation, catering and conference services.

In setting and reviewing the University’s strategy and activities, the Board of Governors 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.

As an exempt charity the Governors of the University of Winchester have had due regard to the guidance on public benefit published by the Charity Commission in exercising their powers and performing their duties.

The Board of Governors have due regard to any detrimental harm that may arise from the University’s activities and particularly to the impact of its campus developments on its immediate locality. We aim to minimise this impact through extensive community discussion and consultation in addition to working closely with Winchester City Council. The University does not currently incur private benefit from its activities undertaken in pursuance of its purposes.

The Board of Governors recognise that students, both undergraduate and postgraduate, are the principal beneficiaries of the provision of higher education whilst the public at large are beneficiaries of the University’s Research and Knowledge Exchange and community engagement activities.

RESPONSIBILITIES OF THE BOARD OF GOVERNORS The Board of Governors of the University, which meets formally at least three times a year, is responsible for but limited to the determination of the educational character and objectives of the University, the oversight of its activities, the effective and efficient use of resources, the solvency of the University, for safeguarding its assets and for approving annual estimates of income and expenditure. The University’s Board of Governors comprises persons appointed under the University’s Memorandum and Articles of Association, a copy of which can be found on the policies and procedures page of our website under: www.winchester.ac.uk/about-us/leadershipand-governance/policies-and-procedures/. The responsibilities of the Board of Governors are set out in paragraph 22 of the terms and conditions of the Office for Students funding and paragraph 21 of the terms and conditions of UKRI funding relating to funds administered through Research England. The University has been designated by the Secretary of State as an institution in the further and higher education sector, which has its own contract with the Education and Skills Funding Agency (ESFA).

The Board of Governors is responsible for the appointment and removal of the external auditor and outsourced internal audit providers.

The Board of Governors comprises seven independent diocesan appointed members (nonexecutive), six independent co-opted members (nonexecutive), five academic governors, two support staff governors, one independent former student governor

UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19 | 57

and one student governor. The Diocesan Governors of the Board are appointees of the Church of England by the Winchester Diocesan Synod. A student governor holds office until the end of the academic year in which the student governor is appointed or until their appointment by the students comes to an end, whichever is sooner. Other Governors (not being Governors ex-officio) hold office for a term of three years and shall be eligible for re-appointment up to a maximum of three terms, of three years each in total.

to monitor performance and track the use of public funds to enable it to identify any material change in its circumstances, including any significant developments that could impact on the mutual interests of the University and the Office for Students.

For the purposes of this statement, public funds includes funds received from the Student Loans Company, UK Research and Innovation (including Research England), Education and Skills Funding Agency and the Department for Education.

The role of the Chair of the Board of Governors is separated from the University’s Chief Executive, the Vice-Chancellor. The Chair is elected from amongst the independent members. No member of the Board of Governors receives any remuneration for work they do for that Board. The current Memorandum and Articles of Association for the University of Winchester were adopted by the Board of Governors on 16 March 2011.

A ‘Statement of Primary Responsibilities’ provides more detail of the responsibilities of the Board, which include:

The Board has determined that the Vice-Chancellor shall be the Accountable Officer who has the responsibilities set out by the Office for Students for an accountable officer from time to time. The Board is satisfied that all conditions of receiving and using funds provided by the Office for Students, UK Research and Innovation (including Research England), Education and Skills Funding Agency and the Department for Education have been applied in accordance with the relevant terms and conditions for the year to 31 July 2019. The University’s constitution places responsibility for the University’s operations with the Vice-Chancellor who, as the Accountable Officer, supported by the Senior Management Team, implements the Board’s policies and develops and manages the University’s business.

The University endeavours to conduct its business in accordance with the seven principles identified by the Committee on Standards in Public Life (selflessness, integrity, objectivity, accountability, openness, honesty and leadership) and with guidance to institutions of higher education which has been provided by the Committee of University Chairs in its Guide for Members of Higher Education Governing Bodies in the UK. In accordance with the Memorandum and Articles of Association, the Board of Governors of the University of Winchester is the most senior body of the University, responsible for determining the educational character and objectives of the University and for the oversight of its activities including approving its mission, values, strategic vision and long-term business plans, in order to remain sustainable and financially viable. The Board of Governors is also the principal financial and business authority of the University and oversees the financial health of the University.

In executing its duties, the Board of Governors maintains a comprehensive system of risk management, control and corporate governance, including the prevention and detection of corruption, fraud, bribery and irregularities. The Board receives adequate and regular information

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

• the effective and efficient use of resources; solvency of the University and for safeguarding • the its assets; annual estimates of income and • approving expenditure; determination of identity of the Designated • the Staff, save that the Vice-Chancellor, the Deputy and Pro Vice-Chancellors, and the Secretary shall always be members of the Designated Staff; assignment of duties and of the appraisal of • the the Vice-Chancellor; appointment, discipline, suspension and • the dismissal and the determination of the grading, pay and conditions of service of the Designated Staff provided that: Vice-Chancellor shall be a practising • the 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; making the appointment of Vice• before Chancellor, 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; appointment of the Vice-Chancellor • the shall be made on the recommendation of a committee of the Governors the majority of whose members shall be Anglicans; Vice-Chancellor shall be a suitable and • the duly qualified person and shall be in sympathy with the aims and objectives of an Anglican Foundation; setting of a framework for the pay and • the general conditions of employment of the Staff who are not Designated Staff; consultation with the Staff, making the • after rules relating to the conduct of the Staff;

• the appointment of Auditors.

58 | UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19

The Vice-Chancellor is the Chief Executive Officer who has a general responsibility to the Board of Governors for the organisation, direction and management of the University. Under the Office for Students terms and conditions terms (OfS 2018.15) between Office for Students and the Board of Governors, the Vice-Chancellor is the Accountable Officer of the University and in that capacity can be summoned to appear before the Public Accounts Committee of the House of Commons.

It is the responsibility of the Board of Governors to undertake an external formal and rigorous evaluation of the performance of the Board, its committees, the Chair and individual Governors. In 2017/18, the University engaged KPMG to review and comment on the University’s Board of Governors and its committee structures, delegation and delivery of roles and responsibilities, assessing these against the Committee of University Chairs (CUC) and Office for Students requirements. The review has provided a high level view of the Board of Governors’ effectiveness and has specifically assessed the University’s approach to dealing with finance matters.

The University maintains a Register of Interests of members of the Board (and senior managers) which may be consulted by arrangement with the Clerk to the Governors. In accordance with its Memorandum and Articles of Association, the University has appointed a Clerk to the Governors who provides independent advice on matters of governance to Board members.

The report made a total of 34 recommendations for enhancement of practice, many of which were implemented in 2017/18 as noted in the ‘Integrated Annual Report 2017-18’. The recommendation to separate the Finance and Audit Committee into two separate components, was implemented for the start of the 2018/19 academic year with the replacement Risk and Audit Committee.

Meeting Board Members

Board of Governors Members

Attendance

Chair

Winifred Harris

In governing the operations of the University, the Board of Governors holds a number of relevant committees. These committees and their respective attendance by each Governor is listed below:

Risk and Audit

Attendance

Members

Attendance

5/5

Chair

3/3

✓

3/3

✓

4/5

✓

3/3

Chair

3/3

Tali Atvars

✓

4/4

✓

3/3

Megan Ball

✓

1/1

✓

Lesley Black

✓

5/5

✓

3/3



1/3

Mark Byford

✓

5/5

✓

3/3

Joy Carter

✓

4/5

✓

3/3

✓

3/3



2/3

Margaret Chin-Wolf

✓

5/5

✓

3/3

David Cook

✓

4/5

✓

3/3



2/3

Louise Curth

✓

2/5

Tim Dakin

✓

3/5

Mary Edwards

✓

5/5

Chris Gaskell

✓

5/5

✓

3/3

Jane Jessop

✓

4/5

Peter Lidgitt

✓

4/5

Tom Lowe

✓

5/5



2/3

Neil Marriott

✓

5/5

Peter North

✓

5/5

Emma Page



5/5

Andrew Robinson



Elizabeth Stuart

✓

✓

Attendance

Nominations Committee

Members

Alan Lovell

Members

Standing Committee

2/3

✓

3/3

✓

3/3



1/3

4/5



3/3



2/3



5/5



3/3

✓

Nigel Tubbs

✓

5/5

✓

David Williams

✓

3/5

✓

Chair

2/3

3/3

 2/3

UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19 | 59

Meeting

Remuneration Committee

Foundation Committee

Board Members

Members

Attendance

Members

Attendance

Alan Lovell



2/2



2/3

Winifred Harris



2/2



Tali Atvars

Chair

Joy Carter

✓

Margaret Chin-Wolf



2/2

David Cook



2/2

2/2

Mary Edwards

Chair



Attendance

 ✓

3/3

 ✓

3/3

 ✓

3/3

Chair ✓✓

Tim Dakin

Members

3/3

Lesley Black Mark Byford

HR Committee

3/3

3/3

 ✓

2/3

 ✓

2/3

 ✓

3/3

 ✓

3/3

1/3

1/1

Andrew Robinson Elizabeth Stuart



2/3

Nigel Tubbs



3/3

David Williams

✓

2/3

Our strong leadership and governance were recognised by the 2017 Times Higher Leadership and Management Awards and the 2017 British Quality Foundation Excellence Award for excellence in all areas of governance and operation.

Governor attendance at committee meetings is not mandatory and our Governors are extremely dedicated and endeavour to attend all meetings of which they are members. Reasons for absence are recorded by the Clerk to the Board of Governors and such absences are predominantly due to work related reasons or illness.

60 | UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19

SENIOR MANAGEMENT TEAM The Board of Governors (Board) delegate operational management control of the University to the Senior Management Team (SMT), which is chaired by the Vice-Chancellor. SMT meets three times each month, in addition to these meetings, once a month the SMT meets with the Deans of Faculty to have a meeting focused on the academic delivery of the University and this is titled the University Management Group (UMG).

The Remuneration Committee noted that two members of the Senior Management Team (ViceChancellor and Assistant Vice-Chancellor) had declared that they had received no external income during the current financial year. Two other members (First Deputy Vice-Chancellor and Deputy ViceChancellor) declared nominal amounts received which did not exceed £250. The Committee agreed that as the sums were low and insignificant, there was no material issue as to why they should not be retained.

The Committee agreed that all such external income should continue to be declared and brought to the attention of the Committee through the Secretary, and that retention or otherwise should be decided on a case by case basis.

Membership and attendance for all Board Committees can be found on page 58.

STANDING COMMITTEE Standing Committee meets at least three times a year. The Board has delegated to it primary responsibility for reviewing all aspects of strategic planning, including estates planning, academic affairs, student affairs and financial affairs. The Committee will undertake a detailed examination of the annual budget and make recommendations to the Board for its approval or further revisions.

It is responsible for the annual review of the five year financial forecast, monitors financial and management accounts at each meeting and is responsible for the monitoring of treasury management policy and options. The Committee has responsibility for agreeing the agenda for each Board meeting.

RISK AND AUDIT COMMITTEE The Risk and Audit Committee is responsible for reviewing the audit aspects of the University’s financial statements and for making recommendations to the Board for their approval or otherwise in accordance with the Office for Students Accounts Direction. The Committee is responsible for exercising governor oversight and reporting to the Board on the adequacy and effectiveness of: management, control and governance (the • Risk risk management element includes the accuracy of the statement of internal control included with the annual statement of accounts)

efficiency and effectiveness (value for • Economy, money) management and quality assurance of data • The provided to the Office for Students, HESA (Higher Education Statistics Agency), Student Loans Company, and other funding bodies.

It considers reports from the Office for Students as they affect the University’s business and monitors adherence with regulatory requirements.

The Risk and Audit Committee meets three times annually. Members of the Committee do not have executive authority and whilst senior managers attend meetings of the Committee when necessary, they are not members. The chair of the Committee is not a member of any other sub-committee of the Board. The Committee reviews the audit plan and the final audit report. It considers the appropriateness of the internal auditor's risk assessment and audit plans and reviews reports from them on their investigations. It monitors the implementation of all agreed audit-based recommendations. The Committee meets at least once a year with the external and internal auditors without any officers present. It meets once a year without the external and internal auditors to consider the auditor's performance and to advise the Board on the appointment of auditors.

REMUNERATION COMMITTEE The Remuneration Committee is an important part of our overall governance arrangements. The primary function of the Committee is to determine annually the remuneration of specific senior staff post holders.

It meets at least twice a year to prepare and decide on the outcomes. A secondary function of the Committee is to determine any severance payment to be made to a senior post holder in respect of the termination of their employment, under the terms of a settlement agreement, as and when this arises.

The Remuneration Committee is committed to complying with all the elements of the Committee for University Chairs' (CUC) guidelines on best practice, as set out in its Higher Education Senior Staff Remuneration Code, published in June 2018.

The University’s Remuneration Committee seeks to ensure at all times that its decisions are based on robust evidence, including performance against personal objectives; the performance of the University against its KPIs and targets; and the use of relevant benchmarking comparators.

The Remuneration Committee recognises it must strike the right balance between recruiting, rewarding and retaining the best senior staff possible in order to deliver the best outcomes for students and the University of Winchester as an institution whilst, at the same time, demonstrating effective use of limited resources and achieving value for money.

UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19 | 61

The senior posts which fall under the remit of the University of Winchester Remuneration Committee are as follows:

• Vice-Chancellor • First Deputy Vice-Chancellor • Deputy Vice-Chancellor • Assistant Vice-Chancellor • Clerk to the Board of Governors • Dean of Spiritual Life The members of the SMT (the Vice-Chancellor, the two Deputy Vice-Chancellors and the Assistant ViceChancellor) are all eligible to receive a performance related pay element in their annual remuneration review, based on performance. The members of the Remuneration Committee are all independent, non-executive members of the University’s Governing Board. Importantly, the Vice-Chancellor is not a member of the Committee and plays no part in the final discussions and decision making of the Committee in relation to determining the emoluments of any of the senior staff within its remit.

The current membership and meetings held during the year are displayed in the table of membership and attendance of committee meetings shown on page 58.

It should be noted that the Remuneration Committee is chaired by the Chair of the Human Resources Committee, a non-executive governor, and not by the Chair of the Board, in line with CUC best practice guidance. The Director of Human Resources acts as the Secretary to the Remuneration Committee.

NOMINATIONS COMMITTEE The Nominations Committee is responsible for the regular review of the skills, knowledge and experience which the Board requires. It leads the process for recruiting and recommending candidates to the Board to fill vacant Governor Positions on the Board, in line with the Seven Principles of Public Life and our Equality and Diversity policy.

The Committee makes recommendations to the Board about the membership of Board Committees and those University Committees with Governor Representation, seeking to ensure that committees have a balanced and appropriate range of members.

It is responsible for developing and implementing processes for the recruitment and selection of the Chancellor; independent Governors; the Chair of the Board; the Vice-Chair of the Board; the ViceChancellor; the Senior Management Team; and other designated staff positions. It also develops, and oversees the implementation of the induction, training and development of Governors. The Committee meets a minimum of three times a year, chaired by the Vice-Chair of the Board. The majority of members are independent non-executive Governors.

HUMAN RESOURCES COMMITTEE This committee is responsible for the 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 conditions of service and take executive action or submit recommendations to the Board as appropriate. The Committee also receives recommendations from management arising from negotiations between the University and the recognised Unions and take action or submit recommendations to the Board of Governors as appropriate. This committee acts 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.

TRADE UNION FACILITY TIME REPORTING Recent changes in legislation introduced a new requirement to publish data on trade union facility time. This new duty applies to all public sector employers. Universities in England fall within the definition of public sector employers for this purpose. The Human Resources Committee led the process for data collection which we reported on to the government in compliance with their new requirements.

The data relates to the period 1 April 2018 to 31 March 2019.

TRADE UNION FACILITY TIME REPORTING 2018/19 UNION OFFICIALS Number of employees who were relevant union officials during the period Full-time equivalent employee number

5

4.7

PERCENTAGE OF TIME SPENT ON FACILITY TIME EMPLOYEES 0%

0%

1-50%

5%

51-99%

0%

100%

0%

PAY BILL SPENT ON FACILITY TIME Total pay bill Paid Trade Union activities Percentage of paid facility time hours spent on paid Trade Union activities

£40,911 £41,499,774

0%

62窶ポ窶ザNIVERSITY OF WINCHESTER窶ポ窶オNTEGRATED ANNUAL REPORT 2018-19

committee also organises and manages the programme of Foundation events and receives regular reports from the Chaplaincy, Foundation Music and the Department of Theology, Religion and Philosophy and other reports as appropriate.

FOUNDATION COMMITTEE The Foundation Committee meets no less than three times per year and is responsible for discussing, monitoring and making recommendations, on matters related to our Christian foundation to the Board. They annually monitor the interpretation and execution of the University Mission, Values, Strategic Plan and Foundation Strategy, and foster wider development of awareness and debate on matters of faith, and positive relations between faith communities, the Diocese of Winchester, the Cathedral, the local parish and beyond. This

OTHER COMMITTEES In addition to the aforementioned committees, the University holds the following committee meetings with student and/or Student Union representation as denoted below.

OUR UNIVERSITY COMMITTEE STRUCTURE

BOARD OF GOVERNORS

Human Resources Remuneration Committee Committee

Employability Committee

Nominations Committee

Standing Committee

Risk & Audit Committee

*Foundation Committee

Senior Management Team

Senate

University Management Group

*Equality and Diversity Committee

*Joint Health and Safety Committee

*Honorary Award Committee

Sub committee of...

*Has student or Student Union representation

Faculty Managment Group

Planning and Resources Committee

*Senate Academic Development Committee

*Academic Regulations, Policies and Procedures Committee

KEY

Reporting to...

*Student Academic Council

*Faculty Academic Development Committees

*Programme Committees

*Research Degree Quality Committee

*PG Cert *Programme Committee

*Student Experience Committee

*Senate Research and Knowledge Exchange Committee

*RKE Ethics Committee

*RKE Grants Committee

*Faculty RKE Committee

UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19 | 63

REMUNERATION COMMITTEE'S DECISION ON VICECHANCELLOR'S SALARY In 2018/19, the Remuneration Committee met on two occasions, 7 March 2019 and 3 July 2019. All members of the Committee were present at both meetings.

At the July meeting, the Vice-Chancellor, Joy Carter, was invited to attend part of the meeting but only in relation to the salary reviews of her direct reportsthe First Deputy Vice Chancellor, the Deputy Vice Chancellor and the Assistant Vice Chancellor, to give an overview of their individual performances against personal objectives in the past year. She left the meeting before any discussions took place amongst Committee members about any of the individual senior management remunerations.

The CUC Code on Remuneration had been distributed to all members of the Committee before the meeting. The Chair stressed that their decisions should be based on fair, appropriate and justifiable remuneration that demonstrates procedural fairness and sensitivity to the stewardship of University funds to ensure value for money and the protection of the Institution’s reputation.

The Committee had access to a range of information to inform its decisions including: University’s latest key performance indicators • the table and associated RAG ratings and trends, set against agreed strategic targets for the University as a whole; latest position on the HE-wide pay • the negotiations; current median pay ratio of the Vice • the Chancellor to all university staff; comparator remuneration data for senior staff • HE in similar sized universities including the Office for Students senior staff remuneration survey and the CUC Vice-Chancellor salary survey; relevant data regarding external senior • other staff in public bodies locally (such as Hampshire County Council and Winchester City Council).

All the above information was examined with respect to: staff development reviews (SDRs), • individual which report on performance assessment against personal objectives set for the past year; Vice-Chancellor offering her own views in • the relation to her direct reports’ performance in the past year;

• the skills and experience of the incumbents; Committee members' own observations, • the insights and judgements.

The relative size of the University of Winchester with 6,617 full-time students and an annual income of £81m was set against similar sized institutions when benchmarking and referencing comparator data.

(The relevant comparator band for Winchester is the £70-£100m band comparing 11 institutions) The latest position of the HE Sector pay negotiations was noted, including the employer’s final pay offer of 1.8% on the salaries of all staff above point 14 on the national pay spine. It was also noted that additionally, in relation to incremental progression within pay grades, 55% of employees at the University would be affected this year, equating to an average additional overall increase per employee of just under 3.5 %.

In that context, the Remuneration Committee unanimously agreed at its July meeting in 2019 that the basic salary of the Vice Chancellor be increased by 2.8% from £226,855 per annum to £233,207 per annum for the year commencing 1 August 2019, comprising a 1.8% basic uplift to mirror the national HE pay-offer and a consolidated increase of 1.0%.

VICE-CHANCELLOR'S MEDIAN PAY RATIOS The Office for Students prescribes the methodology for calculating the median pay ratio for the year ended 31 July 2019. Under the calculation (OfS 2019.41 paragraph 12(d)), the Vice Chancellor’s basic salary, expressed as a ratio of the median total basic salaries of all staff is 6.2 times (down from 6.7 times in 2017/18). Using the same methodology, the Vice-Chancellor’s total remuneration is 6.5 times the median total remuneration of staff (down from 6.9 times in 2017/18).

These ratios sit within the Committee of University Chairs' (CUC's) best practice guidance of a range between 4.5 and 8.5.

Following correspondence with the Office for Students, the University has excluded lower paid part-time staff on variable hours, casual or temporary contracts from the pay ratio calculations. This threshold has been deemed by the regulator to be reasonable and reflects that such part-time staff would be outside of scope for PAYE reporting and are paid less than £118 per week - the National Insurance threshold.

The Remuneration Committee noted that the current in-house provision of services such as cleaning, porters and security at the University of Winchester has the effect of increasing the above pay ratio in comparison to the pay ratio applicable at other universities which outsource some or all of these services.

64窶ポ窶ザNIVERSITY OF WINCHESTER窶ポ窶オNTEGRATED ANNUAL REPORT 2018-19

UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19 | 65

STATEMENT OF INTERNAL CONTROLS 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 Office for Students terms and conditions of funding for higher education institutions dated 29 March 2018 (OfS 2018.15).

Since the introduction of the Office for Students, which took on the funding and regulation of the Higher Education sector from 1 April 2018, the University has complied with the ‘carried forward’ powers and duties of the Office for Students including: terms and conditions of Office for Students • The funding, terms and conditions of Research England • The Grant funding, and

and to manage them efficiently, effectively and economically. This process has been in place for the year ended 31 July 2019 and up to the date of approval of the Financial Statements, and accords with the Office for Students guidance.

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

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

requirements set out in the Agreement on • The Institutional Designation,

Board has delegated to the Risk and • The Audit Committee some of the responsibility for

as outlined in the Office for Students terms and conditions of funding for higher education institutions.

Risk and Audit Committee receives regular • The reports from the internal auditor, which includes

We have complied with the Office for Students ongoing conditions of registration including giving due regard to relevant guidance about how to comply with consumer protection law when developing and implementing policies, procedures and terms and conditions, and adopting and publishing a Student Protection Plan.

We have complied with the terms and conditions of funding made under section 65 of the Further and Higher Education Act 1992, as amended by a statutory instrument setting out the transitional arrangements, the Higher Education and Research Act 2017 (Consequential, Transitional, Transitory and Saving Provisions) Regulations 2018.

We comply with the CUC Code of Practice and refers to best practice guidance, including guidance from British Universities Finance Directors Group (BUFDG).

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

The system of internal controls is based on an on-going process designed to identify risks to the achievement of policies, aims and objectives, to evaluate the nature and extent of those risks

providing oversight of risk management.

their independent opinion on the adequacy and effectiveness of the University’s system of internal controls, together with recommendations for improvement. regular programme of review is undertaken to • Aidentify and keep up to date the record of risks facing the organisation. awareness is facilitated at University and • Risk operational levels as appropriate to the risk. Risk management is embedded in the operation of the University. of key performance and risk indicators • Ahassystem been developed. risk prioritisation methodology based • Aonrobust risk ranking and cost-benefit analysis has been established. 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. are received from budget holders, • Reports department heads and project managers on internal control activities.

66 | UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19

The Board’s review of the effectiveness of the system of internal controls is informed by the internal audit service, which operates to standards defined in Office for Students Accounts Direction (OfS 2018.26).

SIGNED ON BEHALF OF THE BOARD OF GOVERNORS:

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.

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

A C Lovell Chair of Board of Governors

GOVERNORS’ LIABILITY ON DISSOLUTION As per section 7 of the Memorandum and Articles of Association every Governor of the University undertakes to pay up to one pound (£1.00) towards the costs of dissolution and the liabilities incurred by the University while he or she was a Governor, if the University is dissolved while he or she is a Governor, or within one year afterwards.

GOING CONCERN After making appropriate enquiries, the Board of Governors has a reasonable expectation that the University has adequate resources to continue in operational existence for the foreseeable future.

For this reason, they continue to adopt the going concern basis in preparing the financial statements.

Professor Joy Carter CBE DL Vice-Chancellor Date: 27 November 2019

INDEPENDENT AUDITORS’ REPORT TO THE BOARD OF GOVERNORS OF THE UNIVERSITY OF WINCHESTER

68 | UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19

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 2019 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Reserves, Cash Flow Statements and related notes, including the accounting policies.

In our opinion the financial statements: a true and fair view of the state of the • give University’s affairs as at 31 July 2019, 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; been properly prepared in accordance • have 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; the requirements of the Accounts Direction • meet dated 19 June 2018 issued by the Office for Students, other than where the University has applied the allowance to early adopt the requirements of paragraph 12(d) of the Accounts Direction dated 25 October 2019 issued by the Office for Students; and been prepared in accordance with the • have requirements of the Companies Act 2006.

BASIS FOR OPINION We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the University in accordance with, UK ethical requirements including the FRC Ethical Standard.

We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.

GOING CONCERN The Board of Governors has prepared the financial statements on the going concern basis as they do not intend to liquidate the University or to cease their operations, and as they have concluded that the University’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over their ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”).

We are required to report to you if we have concluded that the use of the going concern basis of accounting is inappropriate or there is an undisclosed material uncertainty that may cast significant doubt over the use of that basis for a period of at least a year from the date of approval of the financial statements. In our evaluation of the Board of Governors’ conclusions, we considered the inherent risks to the University’s business model, including the impact of Brexit, and analysed how those risks might affect the University’s financial resources or ability to continue operations over the going concern period. We have nothing to report in these respects.

However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the absence of reference to a material uncertainty in this auditor's report is not a guarantee that the University will continue in operation.

OTHER INFORMATION The Board of Governors is responsible for the other information, which comprises the Strategic Review incorporating the Operational Review, the Financial Review and the Statement of Corporate Governance and Internal Control. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge.

Based solely on that work: have not identified material misstatements in • we the other information; our opinion the information given in Strategic • inReview 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 opinion those reports have been prepared • inin our accordance with the Companies Act 2006.

UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19 | 69

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION Under the Companies Act 2006, we are required to report to you if, in our opinion: accounting records have not been kept • adequate by the University, or returns adequate for our audit have not been received from branches not visited by us; or University’s financial statements are not in • the agreement with the accounting records and returns; or disclosures of directors’ remuneration • certain specified by law are not made; or have not received all the information and • we explanations we require for our audit.

We have nothing to report in these respects.

BOARD OF GOVERNORS RESPONSIBILITIES As explained more fully in their statement set out on page 56, the Board of Governors (who are the Directors of the University company for the purposes of company law) is responsible for: the preparation of the financial statements and for being satisfied that they give a true and fair view; such internal control as it determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing University’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless it either intends to liquidate the University or to cease operations, or has no realistic alternative but to do so.

70 | UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19

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

Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

A fuller description of our responsibilitiesis provided on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS We are required to report on the following matters under the Office for Students and Research England Audit Codes of Practice issued under the Further and Higher Education Act 1992.

In our opinion, in all material respects: from whatever source administered • funds by the University for specific purposes have

been properly applied to those purposes and managed in accordance with relevant legislation; and provided by the Office for Students • funds and Research England have been applied in accordance with the terms and conditions attached to them.

THE PURPOSE OF OUR AUDIT WORK AND TO WHOM WE OWE OUR RESPONSIBILITIES This report is made solely to the Board of Governors, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and paragraph 13(2) of the University's Articles of Government and section 124B of the Education Reform Act 1988. Our audit work has been undertaken so that we might state to the Board of Governors those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the University and the Board of Governors for our audit work, for this report, or for the opinions we have formed.

Rees Batley Senior Statutory Auditor Date: 5 December 2019 For and on behalf of: KPMG LLP Statutory Auditor Chartered Accountants Office Address: KPMG LLP, Gateway House, Tollgate, Chandler’s Ford, Eastleigh, Hampshire. SO53 3TG

FINANCIAL STATEMENTS

72 | UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19

UNIVERSITY OF WINCHESTER Statement of Comprehensive Income and Expenditure Year Ended 31 July 2019

2019

2018

£'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

61,834 3,244 514 14,714 227 80,533

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

Endowments and donations

5

2

1

80,535

78,983

46,873 29,026 5,345 2,183 83,427

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

(Deficit)/Surplus for the year

(2,892)

2,017

Actuarial (loss)/gain in respect of pension schemes

(4,000)

3,560

Total comprehensive (deficit)/income for the year

(6,892)

5,577

Represented by: Endowment Comprehensive Income for the year Unrestricted comprehensive (deficit)/income for the year

2 (6,894)

1 5,576

(6,892)

5,577

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

6 7 9 8

All items of income and expenditure relate to continuing activities.

The accompanying notes form part of these financial statements.

UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19 | 73

UNIVERSITY OF WINCHESTER Statement of Changes in Reserves Year Ended 31 July 2019

Income and Revaluation Endowment expenditure reserve account

Total

£'000

£'000

£'000

£'000

39

55,277

86,447

141,763

Income and expenditure surplus/(deficit)

2

(2,894)

-

(2,892)

Other comprehensive deficit

-

(4,000)

-

(4,000)

Transfers between revaluation and income and expenditure reserves

-

1,975

(1,975)

-

Total comprehensive income/(deficit) for the year

2

(4,919)

(1,975)

(6,892)

41

50,358

84,472

134,871

Balance at 31 July 2018

Balance at 31 July 2019

The accompanying notes form part of these financial statements

74 | UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19

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

Registration number: 05969256 UNIVERSITY OF WINCHESTER Balance Sheet at 31by July 2019 A company limited guarantee and registered in England and Wales.

Registration number: 05969256 Balance Sheet at 31 July 2019 Notes

2019 £'000

2018 £'000

Notes 9 10

2019 240 £'000 198,618 645 240

2018 175 £'000 171,238 635 175

Tangible fixed assets Investment Property and Investments Current assets Stock Trade and other receivables Current assets Investments Stock Cash Tradeand andcash otherequivalents receivables

9 10

198,618 199,503 645

171,238 172,048 635

11 12 13 11

Investments Cash and cash equivalents Less: Creditors: amounts falling due within one year

12 13 14

45 199,503 5,072 125 45 15,095 5,072 20,337 125

42 172,048 3,298 27,582 42 13,564 3,298 44,486 27,582

15,095 (17,525) 20,337

13,564 (11,182) 44,486

Net current assets Less: Creditors: amounts falling due within one year

14

2,812 (17,525)

33,304 (11,182)

202,315 2,812

205,352 33,304

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

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

15

(45,413) 202,315

(48,763) 205,352

Pension provisions Creditors: amounts falling due after more than one year

16 15

(22,031) (45,413)

(14,826) (48,763)

Total net assets Pension provisions

16

134,871 (22,031)

141,763 (14,826)

Restricted Reserves Total net assets Income and expenditure - endowment reserve

134,871 41

141,763 39

Restricted Reserves Unrestricted Reserves - endowment reserve Income and expenditure Income and expenditure account Revaluation reserve Unrestricted Reserves Total Unrestricted Reserves Income and expenditure account

41 50,358 84,472 134,830 50,358

39 55,277 86,447 141,724 55,277

Revaluation reserve Reserves Total Unrestricted Reserves

84,472 134,871 134,830

86,447 141,763 141,724

The financial statements on pages 72 to 96 were approved and authorised for134,871 issue by the Board of Total Reserves 141,763 Governors on 27 November 2019, and were signed on its behalf by: The financial statements on pages 72 to 96 were approved and authorised for issue by the Board of Governors on 27 November 2019, and were signed on its behalf by: ………………………………………

A C Lovell Chair of Board of Governors ………………………………………

………………………………………

Professor J Carter CBE DL Vice-Chancellor ………………………………………

A C Lovell Professor J Carter CBE DL The notes on pages 82 to form part of these financial statements.

Chair of Board of 96 Governors Vice-Chancellor The notes on pages 82 to 96 form part of these financial statements.

UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19 | 75

UNIVERSITY OF WINCHESTER Cash Flow Statement For the year ended 31 July 2019 31 July 2019 £'000

31 July 2018 £'000

Cash flow from operating activities (Deficit)/Surplus for the year

(2,892)

2,017

Adjustment for non-cash items Amortisation Depreciation Impairments Fair value gain on Investment Property Increase in stock Increase in debtors Increase in creditors Increase in provisions Cashflow from operating activities

163 5,345 83 (10) (3) (1,804) 375 2,834 4,091

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

(164) 2,183 (2) (18) (330) 5,760

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

18 538 27,457 201 (228) (29,036) (1,050)

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

(777) (1,044) (1,086) 2 (274) (3,179)

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

1,531

(8,202)

13,564 15,095

21,766 13,564

Notes

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

9

8 5

Cash flows from investing activities Proceeds from sale of fixed assets Capital grant receipts 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

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

13 13

76 | UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES BASIS OF PREPARATION These financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP): Accounting for Further and Higher Education 2015 and in accordance with Financial Reporting Standards (FRS) 102. The University is a public benefit entity and therefore has applied the relevant public benefit requirement of FRS 102. The financial statements are prepared in accordance with the historical cost convention (modified by the revaluation of fixed assets).

In preparing the financial statements of the University, the functional and presentational currency is sterling. Transactions in currencies other than the functional currency are recognised at the rates of exchange prevailing at the dates of the transactions. No monetary or non-monetary items are carried at denominations other than sterling. The financial statements are presented in thousands of pounds sterling unless stated otherwise.

The University continues to prepare the financial statements on a going concern basis. Despite the deficit position for the year ended 31 July 2019, the Board of Governors have considered the University’s future financial forecasts, the Business Plan and cash position at the year end, and are satisfied that it can continue to meet its financial obligations for the foreseeable future.

BASIS OF CONSOLIDATION At 31 July 2019 the University held significant controlling interest in Winchester Business School Limited, Winchester Management School Limited and the University of Winchester Academy Trust due to a majority of the share capital of the entities being held by employees of the University of Winchester.

These companies have been dormant since incorporation, therefore the finance statements do not consolidate the results of these companies.

the tuition fees is reduced, by a discount for prompt payment, income receivable is shown net of the discount. Bursaries and scholarships are accounted for gross as expenditure and not deducted from income.

TAXATION STATUS The University is an exempt charity within the meaning of Part 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 to the Finance Act 2010 and therefore meets the definition of a charitable company for UK Corporation Tax purposes. Accordingly, the University is potentially exempt from taxation in respect of income or capital gains received within categories covered by section 478-488 of the Corporation Tax Act 2010 (CTA 2010) or section 256 of the Taxation of Chargeable Gains Act, to the extent that such income or gains are applied to exclusively charitable purposes.

The University receives no similar exemption in respect of Value Added Tax. Irrecoverable VAT on inputs is included in the cost of such inputs.

Any irrecoverable VAT allocated to fixed assets is included in their cost.

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

The financial statements do not include the income and expenditure of Winchester Student Union as the University does not exert significant control or dominant influence over policy decisions.

Grants (including research grants) from nongovernment sources are recognised in income when the University is entitled to the income and performance related conditions have been met.

Income received in advance of performance related conditions being met is recognised as deferred income within creditors on the balance sheet and released to income as the conditions are met.

INCOME RECOGNITION

DONATIONS AND ENDOWMENTS

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

Non exchange transactions without performance related conditions are donations and endowments.

Donations and endowments with donor imposed restrictions are recognised in income when the University is entitled to the funds.

Fee income is stated gross of any expenditure which is not a discount and credited to the Statement of Comprehensive Income (SCI) over the period in which students are studying. Where the amount of

Income is retained within the restricted reserve until such time that it is utilised in line with such restrictions at which point the income is released to general reserves through a reserve transfer.

UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19 | 77

Donations with no restrictions are recognised in income when the University is entitled to the funds.

and the present value of the minimum lease payments at the inception of the lease.

Investment income and appreciation of endowments is recorded in income in the year in which it arises and as either restricted or unrestricted income according to the terms or restrictions applied to the individual endowment fund.

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

CAPITAL GRANTS Government capital grants are recognised in income over the expected useful life of the asset. Other capital grants are recognised in income when the University is entitled to the funds subject to any performance related conditions being met.

OPERATING LEASES

ACCOUNTING FOR RETIREMENT BENEFITS

Where parts of a fixed asset have different useful lives, they are accounted for as separate items of fixed assets. Fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Only items of capital expenditure with a value of £5,000 or more per individual item are recognised as fixed assets.

The University contributes to the Local Government Pension Scheme (LGPS), the Teachers’ Pension Scheme (TPS) and the University Superannuation Scheme (USS). The schemes are defined benefit schemes but the TPS and USS schemes are multi-employer schemes where it is not possible to identify the assets of the scheme that are attributable to the University. Accordingly these schemes are accounted for as a defined contribution basis and contributions to the schemes are recognised as expenditure in the period to which they are payable.

The University is able to identify its share of the assets and liabilities of the LGPS and accordingly the University recognises its share of the scheme’s assets and liabilities in its balance sheet.

A liability is recorded within provisions for any contractual commitment to fund past deficits within the USS scheme.

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

ENHANCED PENSIONS The actual cost of any enhanced on-going pension to a former member of staff is paid by a university annually. An estimate of the expected future cost of any enhancement to the on-going pension of a former member of staff is charged in full to the University’s income in the year that the member of staff retires. In subsequent years a charge is made to provisions in the balance sheet using a basis provided by the funding bodies.

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

Costs in respect of operating leases are charged to the Statement of Comprehensive Income in the period in which they are incurred.

FIXED ASSETS

LAND AND BUILDINGS Land and buildings that were owned by the University at the FRS 102 transition date of 1 August 2014 were valued by Alder King. The valuations were on a depreciated replacement cost basis for specialist assets and at market value where this was reasonable to obtain. The University followed the transitional arrangements as at 31 July 2014 and does not intend to carry out regular revaluations of these assets in the future.

Depreciation and impairment losses are subsequently charged on the revalued amount and subsequent costs that enhance the asset are capitalised and recognised at cost.

Newly acquired assets are capitalised at cost.

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

Buildings, plant and machinery are depreciated on a straight line basis over their expected useful lives.

Buildings

between 10 and 50 years

Plant and Machinery between 5 and 20 years No depreciation is charged on assets in the course of construction and finance costs which are directly attributable to the construction of land and buildings are capitalised as part of those assets.

EQUIPMENT Equipment, including computers and software, costing less than de minimus of £5,000 per individual item are recognised as expenditure. All other equipment is capitalised.

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

3 years

Motor Vehicles

5 years

78 | UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19

Fixtures and fittings

10 years

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

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

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

INVESTMENT PROPERTIES Investment property consists of land and buildings held for rental income or capital appreciation (or both) rather than for use in delivering services.

Investment properties are revalued at 31 July each year at market value with movements recognised in the Statement of Comprehensive Income (SCI).

INVESTMENTS Non-current asset investments are held on the Balance Sheet at fair value unless it is not possible to determine a value in which case they are held at amortised cost less impairment. Current asset investments are included in the balance sheet at fair value.

STOCKS Stocks are valued at the lower of cost and net realisable value.

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

Short term deposits that exist at the balance sheet date that have a maturity term of less than 3 months are classified as cash equivalents. Those with more than 3 months are classified as non-current investment assets.

PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS Provisions are recognised in the financial statements when: i.

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

ii.

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

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

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

A contingent liability arises from a past event that gives the University a possible obligation whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly

within the control of the University. Contingent liabilities also arise in circumstances where a provision would otherwise be made but either it is not probable that an outflow of resources will be required or the amount of the obligation cannot be measured reliably.

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

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

RESERVES Reserves are classified as restricted or unrestricted.

Restricted endowment reserves include balances which, through endowment to the University, are held as a permanently restricted fund which the University must hold in perpetuity.

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

KEY ESTIMATES AND JUDGEMENTS In preparing these financial statements, management have made the following judgements: TANGIBLE FIXED ASSETS 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 21, will impact the carrying amount of the pension liability. Furthermore a roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 2016 has been used by the actuary in valuing the pensions liability at 31 July 2019. 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 University is exposed to minimal risk or enjoys minimal economic benefit related to the transaction.

UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19 | 79

80窶ポ窶ザNIVERSITY OF WINCHESTER窶ポ窶オNTEGRATED ANNUAL REPORT 2018-19

NOTES TO ACCOUNTS

82 | UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19

Notes to the Accounts for the year ended 31 July 2019 2019 £'000 54,050 3,752 1,782 2,250 61,834

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

2019 £'000 1,685 829 730 3,244

2018 £'000 1,848 791 947 3,586

2019 £'000 514

2018 £'000 641

2019 £'000 12,193 220 2,301 14,714

2018 £'000 12,548 229 1,896 14,673

2019 £'000 164 10 53 2 229

2018 £'000 172 60 52 1 285

2019 £'000

2018 £'000

Staff Costs : Salaries Social security costs Other pension costs Apprenticeship levy Sub-total

34,275 3,340 7,969 156 45,740

32,396 3,125 5,553 146 41,220

Restructuring costs Total

1,133 46,873

199 41,419

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 OfS Recurrent research grant Specific grants

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

UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19 | 83

Notes to the Accounts Note 6 Staff costs (continued) The highest paid director is the Vice-Chancellor whose emoluments are:

Basic salary Performance related pay Payments in lieu of pension contributions Pension Contributions Salary sacrifice arrangements Other taxable benefits Non-taxable benefits Total emoluments including pension costs

2019 £ 226,855 41,968 (5,671) 2,575 10,435 276,162

2018 £ 219,184 4,310 39,452 (5,592) 2,733 10,290 270,377

The Vice-Chancellor does not benefit from employer pension contributions. Other taxable benefits represents payments made to a private medical health scheme and non-taxable benefits represents payments for life insurance cover.

The Vice-Chancellor’s basic salary, expressed as a multiple of all other employees, is 6.2 times the median basic salary of staff. Using the same methodology, the Vice-Chancellor’s total remuneration is 6.5 times the median total remuneration of staff.

The median salary and remuneration calculations for the year ended 31 July 2019 are calculated in accordance with the methodology prescribed by the Office for Students in Accounts Direction 2019.41 paragraph 12(d), where the median pay is calculated on a full-time equivalent basis for the salaries paid by the University to all its staff. The methodology is based on all staff employed at any point during the financial year, including all part-time staff, which have been converted to a full-time equivalent cost.

However, the University has incorporated the Office for Students threshold as a reasonable basis for excluding lower paid part-time staff on variable hours, casual or temporary contracts from the pay multiple calculations. The threshold reflects staff that would be outside of scope for PAYE reporting, those paid less than £118 per week (the National Insurance threshold).

In accordance with the OfS Accounts Direction 2019.41 paragraph 12(c), the University is required to provide an explanation of the process adopted for judging the performance and total remuneration package for the head of the institution, the Vice-Chancellor.

The remuneration of the Vice-Chancellor is based on robust evidence, comprising a combination of: • Performance against personal objectives • The performance of the University against its KPIs and targets • Relevant benchmarking comparators 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 and disclosures required by the Office for Students are included in the Remuneration Committee's Decision on Vice Chancellor's Salary on page 63.

Other higher paid staff: 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 £130,000

to to to to to to and

£104,999 £109,999 £114,999 £119,999 £124,999 £129,999 above

2019 Number

2018 Number

1 1 2

1 1 2

84 | UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19

Notes to the Accounts Note 6 Staff costs (continued) Average staff numbers by major category :

By Headcount Academic Administration

Headcount 438 556 994

Headcount 422 546 968

FTE 353 474 827

FTE 340 463 803

By full time equivalent staff (FTE) Academic Administration

Severance payments During the year the Institution undertook significant restructuring which resulted in £1,133k in compensation for loss of office being paid to 60 employees, 47 of these employees were part of a structured Voluntary Severance scheme (2018: £199k to 9 employees).

No severance payments, including compensation for loss of office, were paid in respect of senior postholders (2018: nil). Amounts for compensation for loss of office and redundancy for all other staff are approved by the University's senior management team in accordance with delegated authority.

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

2019 2018 The number of key management personnel

8

8

2019 £'000 946 53 999

2018 £'000 837 50 887

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

Salaries Other pension costs Key management personnel compensation

Compensation for loss of office payable to key management personnel included in the above is £79,831 (2018: nil), payable to one member of staff.

UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19 | 85

Notes to the Accounts 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

2019 £'000 5,336 1,254 1,768 2,326 1,294 3,188 310 417 13,133 29,026

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

2019 £'000

2018 £'000

41 53 26

31 31 34

2019 £'000

2018 £'000

775 1,037 371 2,183

455 1,033 412 1,900

Note 9 Fixed Assets Freehold Leasehold Land and Land and Buildings Buildings £'000 £'000 Cost and valuation At 1 August 2018 Additions Transfers Impairment Disposals At 31 July 2019 Depreciation At 1 August 2018 Charge for the year Disposals At 31 July 2019 Net book value At 31 July 2019 At 31 July 2018

Motor Vehicles £'000

Equipment, Assets in the Furniture Course of and Fittings Construction £'000 £'000

Total £'000

150,984 7,492 1,908 160,384

27,468 268 325 28,061

492 111 (28) 575

4,508 910 (24) 5,394

12,454 24,027 (2,233) (83) 34,165

195,906 32,808 (83) (52) 228,579

14,523 3,986 18,509

6,630 653 7,283

324 87 (28) 383

3,191 619 (24) 3,786

-

24,668 5,345 (52) 29,961

141,875

20,778

192

1,608

34,165

198,618

136,461

20,838

168

1,317

12,454

171,238

86 | UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19

Notes to the Accounts Note 9 Fixed Assets (continued) The net book value of Leasehold Land and Buildings includes an amount of £20,778 (2018: £20,838k) 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 Investment Property and Other Investments The University holds two classes of investments as follows:

10 a)

Other Investments Hampshire Community Bank

10 b)

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

2019 £'000 100 100

2018 £'000 100 100

2019 £'000 535 10 545

2018 £'000 558 (83) 60 535

645

635

The investment property fair value gain of £10k is for a single property and is based on a valuation by Alder King LLP, Pembroke House, 15 Pembroke Road, Bristol, BS8 3BA. The investment property was valued on 31 July 2019. The valuation report was prepared in accordance with the RICS Valuation – Global Standards 2017 - incorporating the International Valuation Standards (“Red Book”) and the UK national supplement effective from 14 July 2019, FRS 102 and the SORP (For Further and Higher Education).

Note 11 Trade and other receivables Amounts falling due within one year: Debtors Prepayments and accrued income (including £1.7m (2018: £nil) due after more than one year)

2019 £'000

2018 £'000

1,590 3,482

1,024 2,274

5,072

3,298

Trade and other receivables include [prepayments and accrued income] of £1.7m (2018: £nil) due after more than one year.

UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19 | 87

Notes to the Accounts Note 12 Current Investments Nationwide 95 Day Saver Lloyds 175 Day Account Triodos 95 Day Deposit Account

Note 13 Cash and cash equivalents Cash and cash equivalents

2019 £'000 118 7 125

2018 £'000 12,570 5,007 10,005 27,582

2019 £'000 15,095 15,095

2018 £'000 13,564 13,564

2019 £'000 4,658 286 685 1,448 1,198 8,929 21 300 17,525

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

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

Mortgages and unsecured loans Throughout the financial year the University had the following borrowing arrangements in place: 1. A £4.7m loan from Allied Irish Bank, amortising over 25 years from January 1996, at a 6.43% rate of interest, specifically for the purpose of building student accommodation. £0.585m remains outstanding at 31 July 2019.

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. £0.770m remains outstanding as at 31 July 2019.

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. £3.303m remains outstanding as at 31 July 2019.

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.

Due to the reported deficit for the year ended 31 July 2019, the University technically breached a covenant relating to its Allied Irish Bank facility, resulting in all Allied Irish Bank loans being classified as creditors due within one year. The carrying amount of the loans was £4.7m at 31 July 2019. On 22 October, the Allied Irish Bank confirmed Credit sign off for covenant changes and agreed the new terms in principal, pending legal drafting. The new covenant terms would not have been breached had they been in place at 31 July 2019.

It is expected that the Allied Irish Bank loans will be recognised between amounts falling due within one year and amounts falling due after more than one year for the ending 31 July 2020.

88 | UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19

Notes to the Accounts Note 15 Creditors : amounts falling due after more than one year

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

2019 £'000 10,000 24,055 1,481 11 9,866 45,413

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

2019 £'000 999 9,001 10,000

2018 £'000 1,111 1,790 11,757 14,658

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: 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 2019.

15 b)

Finance leases The finance lease obligations that the University is committed to are as follows:

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

2019 £'000 298 973 22,784 24,055

2018 £'000 274 1,219 23,122 24,615

UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19 | 89

Notes to the Accounts

Note 16 Provisions for liabilities At 31 July 2018 Utilised in year Charge to Income and Expenditure Account At 31 July 2019

LGPS Scheme £'000 14,010 0 6,550 20,560

USS Scheme £'000 434 0 669 1,103

Enhanced Pensions £'000 382 (41) 27 368

Total £'000 14,826 (41) 7,246 22,031

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.

Since the year end, following the completion of the 2018 actuarial valuation, a new deficit recovery plan has been agreed of which more detail is given in note 21. As at 31 July 2019 and with all other assumptions used to calculate the provision unchanged, this would have resulted in a revised provision of £698k, a decrease of £405k from the current year end provision.

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

The principal assumptions for this calculation are: Price inflation

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 Receivable during the year

2019 7.03%

2018 7.74%

2019 £'000

2018 £'000

4,187

1,880

2,346 8,071 30,274 40,691

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

339

337

Future minimum lease payments receivable Payable not later than 1 year

408

306

Later than 1 year and not later than 5 years

1,257

1,232

Later than 5 years Total lease payments receivable

268 1,933

4,305 5,843

2019 £'000

2018 £'000

15,466

37,551

Note 18 Capital commitments

Commitments contracted for

90 | UNIVERSITY OF WINCHESTER | INTEGRATED ANNUAL REPORT 2018-19

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 £11,376 through until March 2022.

Note 20 Events after the reporting period As set out in Note 21 in respect of the USS pension scheme, a new Schedule of Contributions based on the 2018 actuarial valuation has been agreed. This would have resulted in a decrease of approximately £405k in the provision for the obligation to fund the deficit on the USS pension and reduced the provision to £698k. This adjustment will be reflected in the University's Financial Statements for the year ending 31 July 2020.

Note 21 Defined Benefit Obligations The University's employees belong to three 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; and the Universities Superannuation Scheme (USS). All are multi-employer defined-benefit plans.

Universities Superannuation Scheme The latest available complete actuarial valuation of the Retirement Income Builder section of the Scheme is at 31 March 2017 ("the valuation date"), which was carried out using the projected unit method. As at the year end a valuation as at 31 March 2018 was underway but not yet complete.

The 2018 actuarial valuation was finalised after the year end which indicated a shortfall of £3.6 billion and a funding ratio of 94%.

Since the year end, following the completion of the 2018 actuarial valuation, a new deficit recovery plan has been agreed. This amends the existing deficit recovery plan as set out in the 2017 valuation Schedule of Contributions. This new plan requires deficit payments of 2% of salaries from 1 October 2019 to 30 September 2021 and then payments of 6% of salaries from 1 October 2021 to 31 March 2028. As at 31 July 2019 and assuming all other assumptions used to calculate the provision remained unchanged, this would have resulted in a revised provision of £698k, a decrease of £405k from the current year end provision.

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Notes to the Accounts Teachers’ Pension Scheme The Teachers' Pension Scheme (TPS) is a statutory, unfunded, defined benefit scheme, governed by the Teachers' Pensions Regulations 2010, and the Teachers’ Pension Scheme Regulations 2014. These regulations apply to teachers in schools and other educational establishments, including academies, in England and Wales that are maintained by local authorities. In addition, teachers in many independent and voluntary-aided schools and teachers and lecturers in some establishments of further and higher education may be eligible for membership. Membership is automatic for full-time teachers and lecturers and, from 1 January 2007, automatic too for teachers and lecturers in part-time employment following appointment or a change of contract. Teachers and lecturers are able to opt out of the TPS. The Teachers’ Pension Budgeting and Valuation Account Although members may be employed by various bodies, their retirement and other pension benefits are set out in regulations made under the Superannuation Act (1972) and Public Service Pensions Act (2013) and are paid by public funds provided by Parliament. The TPS is an unfunded scheme and members contribute on a ’pay as you go‘ basis – these contributions, along with those made by employers, are credited to the Exchequer under arrangements governed by the above Acts.

The Teachers' Pensions Regulations 2010 require an annual account, the Teachers' Pension Budgeting and Valuation Account, to be kept of receipts and expenditure (including the cost of pension increases). From 1 April 2001, the Account has been credited with a real rate of return, which is equivalent to assuming that the balance in the Account is invested in notional investments that produce that real rate of return.

Valuation of the Teachers’ Pension Scheme The latest valuation of the Teachers' Pension Scheme has now taken place, in line with directions issued by HM Treasury and using membership data as at 31 March 2016. As a result of this valuation TPS employers will pay an increased contribution rate of 23.68% from September 2019 (this includes the administration levy of 0.8%). The timing of the implementation is to align its introduction with employers' budget planning cycles. Until then, employers will pay the current rate of 16.48% A copy of the latest valuation report can be found by following this link to the Teachers' Pension Scheme website Scheme Changes The arrangements for a reformed Teachers' Pension Scheme, in line with the recommendations made by Lord Hutton, in particular the introduction of a Career Average Revalued Earnings (CARE) scheme, were implemented from 1 April 2015 In December 2018, the Court of Appeal held that transitional protection provisions contained in the reformed judicial and firefighter pension schemes, introduced as part of public service pension reforms in 2015, gave rise to direct age discrimination and were therefore unlawful. The Supreme Court, in a decision made in June 2019, have rejected the Government's application for permission to appeal the Court of Appeal's ruling. This case will now be referred to an Employment Tribunal for a decision regarding the remedy which will need to be offered to those members of the two schemes who were subject of the age discrimination.

HM Treasury are clear that the ruling has implications for the other public service schemes, including the Teachers' Pension Scheme. Those implications are currently being considered and any impact on scheme costs is expected to be looked at within the next scheme valuation, which is currently scheduled to be based on April 2020 data and implemented in April 2023.

The pension costs paid to TPS in the year amounted to £2.57m (2018: £2.45m) 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.

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Notes to the Accounts 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 2019 were £2.93m of which employer’s contributions totalled £2.28m and employees’ contributions totalled £0.65m. The agreed contribution rates for future years are 18% for employers and range from 5.5% to 12.5% for employees, depending on salary.

GMP judgement (past service cost £0.05m) - 'Guaranteed Minimum Pension (GMP) is a portion of pension that was accrued by individuals who were contracted out of the State Second Pension between 6 April 1978 and 6 April 1997. The rate at which GMP was accrued, and the date it is payable, is different for men and women, meaning there is an inequality for male and female members who have GMP. This was a consequence of the State Pension itself being unequal at the time.

On 26 October 2018, the High Court handed down a judgment involving the Lloyds Banking Group’s defined benefit pension schemes. The judgment concluded the schemes should be amended to equalise pension benefits for men and women in relation to guaranteed minimum pension benefits, “GMP”.

In March 2016, the Government introduced an ‘interim’ solution for public sector schemes to pay full inflationary increases on GMP’s for those reaching State Pension Age (SPA) between 6 April 2016 and 5 December 2018 to ensure these members continued to receive full inflationary increases on the combined public sector scheme and State pensions. This was included in the 2016 valuation of the LGPS fund and was therefore recognised on the balance sheet for year ending 31 July 2017. In January 2018, the interim solution was extended to individuals reaching SPA on or before 5 April 2021. In addition, the Government has indicated that it is committed to continuing to compensate all members of public sector pension schemes reaching SPA after April 2021.

The constructive obligation at 31 July 2019, based on a valuation of the University’s liabilities, for the Government’s commitment to pay pension increases on GMP’s for members reaching SPA after December 2018, which includes a liability for Government’s commitment to compensate all members in the future for changes to the State Pension, was calculated as 0.07% of defined benefit obligation at 31 July 2019, equating to a past service cost provision of £0.05m which has been included in the 2018/19 pension cost.

McCloud Judgement (Past service Cost £1.42m) - In December 2018 the Court of Appeal ruled in the 'McCloud / Sergeant' judgement that the transitional protection arrangements put in place when the Firefighters' and Judges' pensions scheme were reformed were age discriminatory. The Government applied to the Supreme Court for permission to appeal this judgement, however the Supreme Court rejected the Government's request on 27 June 2019. The next stage is for the case to be referred to the Employment Tribunal to agree the remedy, following appropriate consultation. In a Ministerial Statement dated 15 July 2019 the Government committed to extending a remedy across all public sector schemes which included similar transitional protection arrangements, which includes the LGPS. A constructive obligation at 31 July 2019 of £1.42m has been calculated, in relation to a potential remedy, based on a valuation of the University's liabilities, and which has been included in the 2018/19 pension cost.

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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 2019 by a qualified independent actuary.

Principal actuarial assumptions

31 July 2019 31 July 2018

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

(% pa) 2.2 3.2 2.2 2.2 2.2 3.7

(% pa) 2.8 3.2 2.1 2.1 2.1 3.6

31 July 2017

31 July 2016

(% 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

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.

2019

2018

Retiring today Male Female

23.1 25.8

24.1 27.2

Retiring in 20 years Male Female

24.7 27.6

26.2 29.4

Asset Allocation

Equities Property Government bonds Corporate bonds Cash Other

Value at 31 July 2019 60.2% 7.2% 20.6% 0.0% 1.9% 10.1% 100.0%

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

The amount included in the balance sheet in respect of the defined benefit pension plan is as follows:

Fair value of plan assets Present value of plan liabilities Net pensions liability (note 16)

2019 £'000 44,020 (64,580) (20,560)

2018 £'000 39,510 (53,520) (14,010)

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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 Past service cost Interest on net defined benefit liability Total Amounts recognised in Other Comprehensive Income Asset gains arising during the period Liability (loss)/gains arising during the period Amount recognised in Other Comprehensive Income

2019 £'000 2,820 1,650 360 4,830

2018 £'000 2,790 400 3,190

2019 £'000 1,590 (5,590) (4,000)

2018 £'000 2,690 870 3,560

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

2019 £'million 53.52 2.82 1.49 0.65 5.59 (1.14) 1.65 64.58

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

2019 £'million 39.51 1.13 1.59 2.28 0.65 (1.14) 44.02

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

2019 £'million 1.13 1.59 2.72

2018 £'million 0.91 2.69 3.60

Reconciliation of funded status to balance sheet

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

Year ending 31 July 2019 £'million 44.02 (64.58) (20.56)

Year ending 31 July 2018 £'million 39.51 (53.52) (14.01)

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

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

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

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

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

The financial instruments may be analysed as follows:

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

2019 £'000 16,910 (47,461)

2018 £'000 42,269 (47,349)

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

(Debtor)/ creditor £'000

Our Chair of Governors acts as Chair of Trustees for the Trust

17

2

Quality Assurance Agency (QAA)

Our Vice-Chancellor acts as a member of the Agency's Board

29

Universities and Colleges Admissions Service (UCAS)

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

Winchester Cathedral Trust

Our Chair of Governors acts as a trustee for the Trust

Winchester Student Union

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.

Name of organisation

Nature of interest

The Mary Rose Trust

-

Payments

158

20

Receipts

(20)

(24)

12

-

Payments

346

-

Receipts

(208)

-

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 (2018: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 £2,480 (2018:£1,962). 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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ADMINISTRATIVE INFORMATION REGISTERED OFFICE: University of Winchester Sparkford Road Winchester Hampshire SO22 4NR Telephone: 01962 841515 Facsimile: 01962 842280 Website: www.winchester.ac.uk The University of Winchester is a private charitable company limited by guarantee in England and Wales.

Registered number: 05969256 (England and Wales) SENIOR OFFICERS AND ADVISORS: Chancellor Alan Titchmarsh Chancellor Emeritus Dame Mary Fagan Vice-Chancellor and Accountable Officer 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 Principal Bankers Nat West Bank PLC 105 High Street Winchester Hampshire SO23 9AW External auditor KPMG LLP Gateway House Tollgate Chandler’s Ford, Eastleigh Hampshire SO53 3TG

Internal auditor Southern Internal Audit Partnership Corporate Services Hampshire County Council The Castle Winchester Lawyers Blake Morgan New Kings Court Tollgate Chandlers Ford Eastleigh SO53 3LG

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