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Financial Statements for the year ended July 2011

University of Winchester, a private charitable company limited by guarantee in England and Wales number 05969256. Registered Office: Sparkford Road, Winchester, Hampshire SO22 4NR


Winchester, a private charitable company limited by guarantee in England and Wales number 5969256. Registered Office Road,

WUNIVERSITY OF WINCHESTER

CONTENTS Page 1

Administrative information

3

Directorsâ€&#x; Report

18

Statement of Corporate Governance and Internal Control

23

Independent Auditorsâ€&#x; Report

25

Income and Expenditure Account

26

Statement of Total Recognised Gains & Losses

27

Balance Sheet

28

Cash Flow Statement

29

Statement of Principal Accounting Policies

32

Notes to the Financial Statements

University of Winchester, Hampshire


Administrative Information Address:

University of Winchester Sparkford Road Winchester Hampshire SO22 4NR Telephone Facsimile Website

01962 841515 01962 842280 http://www.winchester.ac.uk

Registered number: 05969256 (England and Wales) Senior Officers and Advisors: Chancellor

Dame Mary Fagan

Vice-Chancellor

Professor Joy Carter

Deputy Vice-Chancellor

Mr T Geddes

Senior Pro-Vice-Chancellor

Professor E Stuart

Pro-Vice-Chancellor (Business Development)

Professor Neil Marriott

Director of Finance and Strategy

Mr S Cowhig

Clerk to the Board of Governors

Ms D Povey

Principal Bankers

Nat West Bank PLC 105 High Street Winchester Hampshire SO23 9AW

External auditors

RSM Tenon Audit Limited Vantage Victoria Street Basingstoke Hampshire RG21 3BT

Internal auditors

PricewaterhouseCoopers LLP Savannah House 3 Ocean Way Ocean Village Southampton SO14 3TJ

Lawyers

Blake Lapthorn New Kings Court Tollgate Chandlers Ford Eastleigh SO53 3LG

University of Winchester, Hampshire

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Governors The following are current Governors (Directors) of the University or those who served during the year ended 31 July 2011 Appointed on Diocesan Members Anne Steele Arnett Dr Pearl Diasy Jebaranee Hettiaratchy Revd Joanna Mary Stoker Stephen Richard Thomas David Stewart Walton Richard Denys Wilkinson (Chair from 14 July 2011) Jennifer Ruth Williamson Roger Mark Witcomb (Chair until 13 July 2011) Michael Charles Scott-Joynt, The Right Revd The Bishop of Winchester (ex officio) Alan Charles Lovell Co-opted Members David Cook Simon Francis Eden Yinnon Ezra Win Harris Abdul Kayum Margaret Julia Newbigin Peter Martin North

Resigned on

13 July 2011 31 May 2011 1 March 2011

9 September 2011 31 August 2010 1 September 2011

1 September 2010

University Governor Professor Barry McCormick Academic Governors Professor Joy Carter (ex-officio) Thomas Patrick Geddes (ex officio) Professor Elizabeth Bridget Stuart (ex officio) Yassein El Hakim Paul Robert William Jackson Support Staff Governors Corinne Mary Mackenzie Patricia Mary Kernan Former Student Governor Robert Stephen Baldwin Student Governor Sebastian Miell

1 August 2010

Clerk to the Governors / Company Secretary Deirdre Anne Povey

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Directors’ Report incorporating the Operating and Financial Review 1.

MISSION AND VALUES

Winchester is a Christian Foundation, and an inclusive, values-driven institution that offers excellent programmes of study sustained by teaching and research of the highest quality.  Successive independent audits confirm Winchester delivers teaching of the highest quality.  75% of Winchester‟s research submitted to the national Research Assessment Exercise is judged of international quality; 5% is regarded as world leading. Our mission: 'To educate, to advance knowledge and to serve the public good.' Our values: We value freedom, justice, truth, human rights and collective effort for the public good. The plans and actions of the University of Winchester are founded in these ideals together with the following values: 

Intellectual Freedom Intellectual freedom and its appropriate expression are at the heart of our business.

Social Justice We seek to embody social justice and develop our students as effective and fulfilled global citizens. They will be prepared to challenge the status quo and will have the strength to stand up for what they believe to be true.

Diversity We delight in diversity.

Spirituality We celebrate our Christian foundation encouraging those living within the Christian faith, whilst also welcoming those who live within other faiths and those who have no faith.

Individuals Matter The wellbeing of individuals is important, as are their opinions and views.

Creativity Permeability, agility and imagination are central to our thinking: we endeavour to act as a crucible for the generation and exchange of knowledge.

Winchester believes in the power of each individual to make a positive difference to society.

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1.1

Risk Management

Risk management is embedded in the operation of the University as directed by the Board of Governors. The Universityâ€&#x;s risk management policy was originally approved by the Board of Governors on 11th July 2001 and an updated policy was endorsed by Board of Governors on 10th March 2010. Each year the University produces a risk register which has been informed by HEFCEâ€&#x;s guidance Risk Management: A Guide to good practice for higher education institutions. The register identifies those risks which may prevent the University from achieving its strategic priorities. Each risk is assessed for impact and likelihood on a scale of 1-10 first in gross terms and then after taking account of mitigating factors. A score is calculated by multiplying the impact score by the likelihood score and each risk is given a risk rating. For example high risks are those with a score of greater than 80, medium-high are those in the range 60-79 etc. The risk register is reviewed annually by the Audit Committee of the Board of Governors when it receives a report from senior management on its review of the effectiveness of the internal control system for mitigating risks. The Audit Committee is responsible for reviewing and reporting to the Governing Body annually on the effectiveness of internal control of the University, based on information provided by auditors and senior management, including the Director of Finance and Strategy. The current risk register was reviewed in detail at a meeting of the Audit Committee on the 7th March 2011. Early warning mechanisms have been identified for each risk as have improvement actions and senior staff ownership. 1.2

Excellence

In June 2011 the University achieved the highest possible five-star rating for the European Foundation for Quality Managementâ€&#x;s Recognised for Excellence Award. This programme is designed for private and public sector organisations that are well on their way to organisational excellence, recognising successful efforts to implement excellence and good practice. It also offers the benefits of a structured approach to identifying organisational strengths and areas for improvement as well as an independent and expert external accreditation of what has been achieved. The University of Winchester is the first university in the country to achieve this recognition for the whole institution.

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2.

CORPORATE AND SOCIAL RESPONSIBILITY

The value of social justice is at the core of the University‟s work and the University seeks to extend and employ its resources in ways which address inequalities and encourages the development of potential wherever it is found. The University‟s Business School (Winchester Business School) is a signatory to the United Nations initiative: Principles of Responsible Management in Education and hosts the Hoare Centre for Responsible Management which aims to develop business leaders who take responsibility for the creation of more equitable and sustainable global economy and society. The University is to receive the 2011 International Faith and Spirit at Work Award for showing a strong commitment to nurturing the faith and spirituality of its students and staff. 2.1

Equality and Diversity

The University is committed to equality and supporting the diversity of its staff, students and local communities. The University is proud of its ongoing commitment to equality, as demonstrated through its 

Disability Equality Scheme

Gender Equality Scheme

Race Equality Policy and Action Plan.

With the expansion of the equality duties in these areas to a general equality duty covering eight of the nine protected characteristics - age, disability, gender reassignment, pregnancy & maternity, race, religion and belief (including lack of religion or belief), sex and sexual orientation, this year the University published its first single Equality and Diversity Strategy. The Equality and Diversity Strategy is for all of the University‟s staff, students and other users of the services and facilities. It is a framework to help fulfil the University‟s obligations under the general equality duty as set out in the Equality Act 2010. The aim of the Equality and Diversity Strategy is simple but all encompassing: „To embed equality for all, across all protected characteristics, in all aspects of the University‟s business.‟

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2.2

Health and Safety

The University‟s Health and Safety Policy establishes the procedures and arrangements for emergencies and the provisions for the health and safety of all employees, students, visitors, other employers and their employees and others who may be affected by activities on any site for which the University is responsible. The University recognises the importance of health and safety in the successful operation of all its activities and necessarily relies on the initiative, teamwork, and active participation of management and workforce to maintain safe working practices and procedures in order to fulfil its legal obligations under the Health & Safety at Work Act 1974, the Management of Health and Safety at Work Regulations 1992 and all other relevant health and safety legislation in force at any time. All reasonably practicable training, resources and information is provided to ensure that employees and others work and perform all tasks safely and without risk to the health and safety of themselves and others. A Health and Safety Committee structure is maintained to consider all matters related to the welfare and safety of all persons employed and all those not employed by the University but who are legitimately engaged in activities on University premises. 2.3

Sustainable Development

The University has a sustainable development policy and commits to:  Increase awareness of environmentally sustainable development within the University and externally, including through collaboration with the local and regional communities.  Create and maintain an institutional culture of sustainability.  Practice institutional environmental sustainability, operating in ways that maximise social and economic benefit while minimising adverse impacts on the local and wider communities.  Develop curriculum content for all students which in turn develop environmentally sound, socially just and economically viable concepts of sustainable development.  Support and encourage interdisciplinary research on sustainability.  Invest in staff development, value stakeholder involvement and promote social inclusion and equity.  Work with schools to help them practice, teach and promote sustainable development.  Work in co-operation with local, regional, national and international organisations to help promote a sustainable future. The University‟s Business School (Winchester Business School) is a founding member of the Hampshire and Isle of Wight Sustainable Business Partnership which supports a network of organisations active in the sustainable economy. University of Winchester, Hampshire

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The University is a member of the Carbon Trust‟s Higher Education Carbon Management programme and a number of initiatives are in place across the campus in an effort to reduce our Carbon footprint. Carbon: 

The University aims to reduce its emissions by 30% per m2 by 2015

Carbon emissions by staff and student FTE (full-time equivalent) have dropped by 9.76% since 2006

Recycling: 

Recycling rate is now 52% up from 14% in January 2009

The University has introduced mixed (co-mingled) recycling and diverted 240 tonnes of waste from landfill saving 111 tonnes of Co2

Energy: 

92% of all campus electricity is now on green tariff

Lighting: 

Where possible the University has converted lighting to LED – yielding up to 95% energy reduction

Transport: 

A number of the University‟s vehicles run on LPG and waste cooking oil is turned into bio-diesel

Biodiversity: 

Green roof on top of The Stripe building on the King Alfred Campus

The University is a signatory to the Talloires Declaration of the International Association of University Leaders for a Sustainable Future. Award recognition 

Winchester achieved „1st class status‟ coming 22nd out of 142 institutions in the People and the Planet Green League for 2011; a rise of 44 places in two years

The University was shortlisted for Outstanding Contribution to Sustainable Development in the Times Higher Education (THE) Awards 2010

Awarded a Bronze Standard by Universities that Count (UTC) for Environmental and Social Responsibility 2009/10

Shortlisted as a finalist in the Sustainable Large Business category of the Hampshire and Isle of Wight Sustainable Business Awards 2010

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Winchester Student Union was awarded a Gold award in the 2010 Sound Impact Awards and also won the Ecologist Communications Award for a short awareness raising film about students and their environmental impact.

The University‟s Catering Department is committed to providing a service that is Local, Independent, Fair and Ethical – LIFE. In 2011 the Department was the first to be awarded Three Star Champion status by the Sustainable Restaurant Association and it was also shortlisted for a Green Gown Award by the Environmental Association for Universities and Colleges.

2.4

Meals and menus are created using fresh, seasonal and ethical produce, with ingredients sourced from local and regional suppliers

Food miles are monitored and the number of catering deliveries made per week to campus has been minimised

Winchester is a Fairtrade University

The University is committed to animal welfare and uses free range eggs, chicken and pork in all of its dishes

The University has been awarded the Compassion in World Farming‟s Good Egg Award and was the Good Chicken Award winner in 2010

The Soil Association awarded a Silver Food for the Life Catering Mark in 2010 for the University's Conference, Wedding and Dinner Menus

At least 80% of food waste is removed from site for composting

150 litres of waste cooking oil is collected weekly and converted to bio-diesel for use in the University's vans Employee Involvement

Staff Volunteering The University actively supports its staff to volunteer and get involved with community activities. In 2008/2009 the Employer Supported Volunteering scheme (ESV) was set up to encourage more staff to engage with volunteering by enabling them to do so during their working hours. The amount of time staff spend volunteering is unlimited as long as it is matched by their own annual leave and approved by their line manager. Staff who have taken up the ESV scheme have been able to volunteer for a range of opportunities whether that be as part of a group or as an individual. Examples of activities undertaken include conservation work with the Forestry Commission, a garden renovation project for Hampshire Autistic Society (partnered with Business in the Community) and a mural painting project for Honeypot (a New Forest children‟s charity). Last year saw approximately sixty staff involved with „100 miles for 100 meals‟, a 2 day volunteering event for Age Concern Winchester to raise awareness and to ultimately host 100 of the club‟s members and trustees for a three-course Christmas meal at the University. The scheme also recognises that there are some staff members who volunteer regularly, independently of the University. The ESV scheme has enabled these staff to give more of University of Winchester, Hampshire

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their time to their host organisation. Examples include Special Constables duties, fundraising activities, youth group holidays and attending training sessions that support an individual‟s volunteering role. Internal Communications This year the University enhanced its approach to internal communications under the heading of one of its core values: Individuals Matter. A Communications Action Group was established to pull together a framework for all internal communications activity and the University‟s first Internal Communications Strategy will be launched in the Autumn 2011. The strategy incorporates findings from the annual staff survey and prioritises actions against seven core areas including Communicating the University Vision, Leadership and Communication, News and Message Dissemination and Information Sharing. A key development in internal communication has been the introduction of Open Meetings held three times a year by the Vice-Chancellor. All staff are invited to these meetings during which the Vice-Chancellor gives a presentation on issues in the broader higher education environment which impact on the University and on how the University intends to respond to these issues. This has been particularly welcomed by staff this year because of the planned changes to the funding of higher education. The Vice-Chancellor welcomes questions from staff on the issues covered by her presentation and any other issues of concern to staff. This opportunity for open dialogue fosters a spirit of a united community seeking to find the best path through challenging circumstances. Allied to this the Vice-Chancellor undertakes planned visits to each faculty and professional service to provide an opportunity for informal dialogue with staff at the local level. 2.5

Treasury Management Policy

The University defines its treasury management activities in accordance with the Code of Practice for Treasury Management in the Public Services published by the Chartered Institute of Public Finance and Accountancy (CIPFA) as: “The management of the University‟s investments and cash flows, its banking, money market and capital market transactions, effective control of the risks associated with those activities and the pursuit of optimum performance consistent with those risks.” All treasury management activities involve risk and potential reward. The overarching purpose of the University‟s Treasury Management Policy is to avoid risk rather than maximise return. Consequently the successful identification, monitoring and control of risk will be the principal criterion by which the effectiveness of the University‟s treasury management activities will be measured. The University‟s Audit Committee is responsible for the approval and amendment of the Treasury Management Policy and the Director of Finance and Strategy reports annually on treasury management to the University‟s Standing Committee; the report includes a proposed Treasury Management Strategy for the forthcoming year. University of Winchester, Hampshire

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3.

PUBLIC BENEFIT

As an exempt charity the University of Winchester must demonstrate that it has due regard to the Charity Commission‟s guidance on public benefit and this is embedded in both our mission 'To educate, to advance knowledge and to serve the public good.' and values „We value freedom, justice, truth, human rights and collective effort for the public good‟ Our Board members are aware of their duties with regard to public benefit and are conversant with the Charity Commission guidance in this area. Specific examples of our commitment include 

having widening participation, increased access, retention and achievement of students at the heart of our mission. Furthermore, we value the wealth of experience, skills and knowledge which students from diverse backgrounds bring to the experience of other students and staff of the University

leading the Aimhigher initiative for Hampshire and the Isle of Wight. Aimhigher was a national government funded campaign which aimed to widen participation in Higher Education by working with targeted young people from priority groups to help raise their aspirations and attainment whilst at school or college

leading the Hampshire Queen‟s Diamond Jubilee Project 2012 on behalf of schools in the County

being host and co-founder (with St Ethelburga‟s Centre of Reconciliation and Peace, London and Religions for Peace International, New York) of the Centre of Religions for Reconciliation and Peace. This Centre is founded on the principle of tripartite partnership between (i) communities of all religions and none and their leaders; (ii) experienced and developing practitioners of reconciliation and peace; (iii) research and pedagogic academics engaged in research and knowledge exchange in reconciliation and peace

hosting the Centre for Real-World Learning which carries out research and consultancy in real-world learning and real-world intelligence and explains why these are important. The Centre is keen to find out more about how people learn to accomplish real things in their everyday lives such as playing the piano, chairing a meeting, calming a baby or resolving a heated argument.

The University helps to develop learners into socially, as well as economically productive people and offers scholarships, bursaries and financial support to enable people who could not otherwise afford to undertake courses to attend the University.

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We are proud of our academic research and maximise the benefits of research by advancing fundamental knowledge and contributing to better public policy, economic prosperity, social cohesion, international development, community identity and quality of life. The University seeks to maximise knowledge exchange and community engagement, for example by: 

hosting the annual Winchester Writers Conference; a world renowned conference whose honorary patrons include Baroness James of Holland Park, Jacqueline Wilson, Maureen Lipman and Colin Dexter. This conference is Britain‟s major forum for aspiring writers to meet with published authors, publishers and agents.

working in partnership with schools and colleges as well as private clubs in use of the sports stadium

hosting Enterprise Lecturers offering students, staff and members of the community the opportunity to hear first hand from fascinating and creative people who have been successful in their field, focussing on those who have been entrepreneurial and have made a real difference; previous speakers include Dr Anthony Seldon, Kate Adie and Terry Waite

producing a Knowledge Exchange Newsletter three times a year which contains highlights of the wide range of knowledge exchange events and activities undertaken by staff, students and graduates.

Within our limited resources and self-imposed guidelines we provide sponsorship to local schools and clubs. 4.

THE ESTATE

In August 2010 the University commissioned a new 400 room residential complex on land adjacent to the main King Alfred Campus. During the course of the year we entered into an agreement to lease with a developer who secured an option on land from the adjacent hospital and gained planning approval to construct a further 500 rooms in a complex that will include a gym and learning café. Work will commence on this project in Summer 2011 with some rooms becoming available in Summer 2012 and the majority being commissioned in Summer 2013. In both the above cases the cost of land and construction was met by developers and the University will lease the buildings. The arrangement with the developer associated with the 500 room complex also secured for the University a valuable land bank at no cost; some of which includes a day nursery for which the University has become landlord. The sale of land to the developer took place in August 2011 and so the transfer of ownership of the land bank and nursery to the University is not reflected in these Statements. As part of a project which has been ongoing for a couple of years the University has relocated our Business School into a refurbished accommodation on our West Downs Campus. This has in turn allowed us to carry out other refurbishments and staff moves helping us to work towards achieving a position where each of our four faculties will be located in their own part of the campuses.

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Over the summer 2011 we have commenced work on a major project to demolish an existing building and replace it with a new £5.6m learning and learning building on our King Alfred Campus. This building will be funded through our own cash reserves. Ongoing allocation of University funding in accordance with the programme included within the 2007-17 Estates Strategy has enabled significant progress to be made in addressing back log maintenance of the estate, the outstanding value of which has been significantly reduced as detailed in the most recently published Estates Management Statistics. 5.

FINANCIAL REVIEW

5.1

Introduction

For some years the Higher Education Sector has operated in a fast-changing and uncertain environment and 2010/2011 was by no means an exception to this. As well as facing in year reductions in funding council grants we were also trying to plan for a world of higher tuition fees with the uncertainty of how this will affect demand for student places. The whole Sector was presented with these challenges but they are more keenly felt in a smaller institution and so in order to maintain our sound financial base in the face of such uncertainty we began the 2011 calendar year with a recruitment freeze and in the Spring we introduced a voluntary severance scheme to all staff. At the same time staff were invited to make suggestions of how the University might operate more efficiently and economically. The level of engagement of our staff in these activities is evidenced by the financial results presented in these Statements. FRS17 In our report last year we identified the fact that in his budget of 22nd June 2010 the Chancellor announced his plans to link the indexation of pensions to CPI rather than RPI. As a result of this change the valuation of the Hampshire County Council Scheme (of which the majority of our non-academic staff are members) flagged a £2.12m negative past service cost to the University. There was a debate within the Sector whether this credit should be reflected through the Income and Expenditure Account or through the Statement of Recognised Gains and Losses (STRGL.) Winchester along with the rest of the Sector followed guidance produced in a draft abstract by the Accounting Standards Board‟s Urgent Issues Task Force and recognised the gain in the STRGL. Earlier this calendar year the final abstract was published and determined that the treatment should have been through the Income and Expenditure Account. The University has therefore restated the accounts for last year and so staff costs have been reduced by £2.12m and the surplus has increased accordingly. All references to last year‟s numbers in this report are based on the restated results.

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5.2

Income and Expenditure Account

Income

Turnover 60,000 50,028 50,000

46,345 42,407

40,000

36,304 31,636

£'000 30,000

20,000

10,000

2007

2008

2009

2010

2011

Overall turnover has increased 8% (£3.7m) to £50m. The increased Funding body grants reflect two new streams of income. £396k University Modernisation Fund from HEFCE and £297k Senco funding from the TDA. Income from Tuition fees and education contracts has increased £1.8m. The analysis of this income is presented as note 2 to the accounts. Research grants and contracts has increased £103k (23.5%) This income excludes the £736k grant from HEFCE which is reported under Funding body grants. Other income includes rent charged to students in our accommodation, catering and conferencing income. Rental income has increased 22% to £5.6m as a result of our taking out an operating lease on a new, purpose built 400 bed-space accommodation block situated next to our King Alfred‟s Campus. This additional space has also contributed to our increased conference income which is now £933k.

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Staff Costs Staff costs have increased £2.9m from £21.5m to £24.4m. The table below analyses staff costs separately identifying the cost of redundancies and the FRS17 adjustment.

Staff costs Cost of redundancies FRS17 LGPS pension cost

10/11

09/10

(Increase)/ Decrease

£'000

£'000

£'000

24,325

23,451

(874)

(3.7)%

248

191

(57)

(29.6)%

(150) (2,140)

(1,990)

(93.0)%

(2,921)

(13.6)%

24,423

21,502

%

The introduction to this section (5.1 above) stated that as a result of the financial uncertainties facing the University the executive decided to impose a freeze on staff recruitment in January 2011 and later in the year offered all staff the opportunity to apply for a voluntary severance package. The University executive remain keen to minimise the risk of any posts having to be made compulsorily redundant despite the loss of some income streams which funded posts. The government-funded Aimhigher project closed at the end of the year, announcements were made that the TDA would no longer fund Postgraduate Professional Development (which earned the University £640k per annum) and HEFCE announced that we would lose our entire HEIF funding in future years (£300k in the current year.) To that end the recruitment freeze remains in force.

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The graph below shows the amount the University spends on its staff cost as a percentage of its income. The percentage for 2010 without the credit referred to above (FRS17) was 51%.

Staff cost as a percentage of income 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2007

2008

2009

2010

2011

Depreciation The depreciation charge to the accounts has remained at £2.4m. The table presented as note 12 to the accounts reveals that assets to the value of £2.1m were capitalised. Other operating expenses Other operating expenses have increased from £17m to £18.9m and note 8 to the accounts provides some analysis of this heading. The increased cost under Residences, catering and operating expenses reflects the lease cost for the additional student accommodation referred to above under Other Income. The additional accommodation has also contributed to our increased spend on utilities. Within the other expenses heading in note 8 the £1.2m increased cost (from £7.7m to £8.9m) includes £0.6m on equipment and buildings works which fell outside of our capitalisation rules. One of the suggestions put forward by members of staff for cost savings (see the Introduction at 5.1 above) was that the University should stop the use of first class post in all but the most urgent of cases and should seek alternative methods of communication than postage. Within its first few months of implementation this policy had seen our annual postal cost reduce by 27% to £78k.

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5.3

Balance Sheet

Fixed Assets Additions in the year were £2.1m which was a combination of major refurbishments, equipment and additions to the vehicle fleet. Assets in the course of construction include the new learning and teaching building referred to in section 4 above. £5.4m is reported under note 26 capital commitments for this building. Debtors Debtors comprises trade debtors of £0.8m (a reduction of £0.5m) and prepayments and accrued income of £1.2m (an increase of £0.3m.) Cash Cash reserves have been increasing in preparation for the £5.6m cost the University will fund for the new learning and teaching building. Cash flow from operating activities (per the cash flow statement) was £7.9m. The University has a very prudent treasury management policy and reports its compliance to this policy to Standing Committee each year. At the year end the £12.2m included £3m held on deposit with Clydesdale bank, £3.5m with HSBC and £4m held on deposit with NatWest.

Cash Reserves 14,000 12,214 12,000 10,000 8,000 £'000 6,000

7,106 5,896 3,950

4,000 2,000

1,905

2007

2008

2009

2010

2011

Creditors due within one year Creditors due within one year have increased £1.8m largely as a result of a £1.4m increase in accruals and deferred income. University of Winchester, Hampshire

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'9


Statement of Corporate Governance and Internal Controls Corporate governance The University is committed to exhibiting best practice in all aspects of corporate governance. This summary details the manner in which the University has applied the principles set out in UK Corporate Governance Code issued by the Financial Reporting Council in June 2010 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 The University of Winchester is a company limited by guarantee, registered company number 05969256. Its Governors are also directors and members of the company. The University is an Exempt Charity with its Governors as managing trustees. The Custodian Trustee is the Winchester Diocesan Board of Finance and the provisions of Section 4(2) of the Public Trustees Act 1906 apply. Responsibilities of the Board of Governors The Universityâ€&#x;s Board of Governors comprises persons appointed under the Universityâ€&#x;s Memorandum and Articles of Association, the majority of whom are independent of the University. There is provision for the appointment of co-opted members, members of academic and support staff and a student Governor. The role of the Chair of the Board of Governors is separated from the Universityâ€&#x;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 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 Chairmen 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 the oversight of its activities, for its solvency, the effective and efficient use of its resources and the safeguarding of its assets. It has ultimate responsibility for the affairs of the University. The Board of Governors is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the University to enable it to ensure that the consolidated financial statements are prepared in accordance with the Memorandum and Articles of Association, the Statement of Recommended Practice on Accounting in Further and Higher Education Institutions, the Companies Act and other relevant accounting standards. In addition, within the terms and conditions of the Financial Memorandum agreed between the Higher Education Funding Council for England and the Board of Governors of the University, the Board of Governors, through its accountable officer, is required to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the University and the surplus or deficit and cash flows for that year.

University of Winchester, Hampshire

18


In causing the financial statements to be prepared the Board of Governors ensures that  suitable accounting policies are selected and applied consistently  judgements and estimates are made that are reasonable and prudent  applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements  financial statements are prepared on the going concern basis unless it is inappropriate to presume that the University will continue in operation. The Board of Governors is satisfied that the University has adequate resources to continue in operation for the foreseeable future: for this reason the going concern basis continues to be adopted in the preparation of the financial statements. The Board of Governors has taken reasonable steps to • ensure that funds from the Higher Education Funding Council for England (HEFCE) and the Training and Development Agency for Schools (TDA) are used only for the purposes for which they have been given and in accordance with the Financial Memorandum with the HEFCE and the Funding Agreement with the TDA and any other conditions which the HEFCE or the TDA may from time to time prescribe • ensure that there are appropriate financial and management controls in place to safeguard public funds and funds from other sources • safeguard the assets of the University and to prevent and detect fraud • secure the economical, efficient and effective management of the University‟s resources and expenditure. The Board of Governors meets three times a year and has several Committees, including a Standing Committee, Human Resources Committee and Audit Committee. All Committees are formally constituted with terms of reference and comprise mainly Governors, one of whom is the Chair. Governors liability on winding up As per section 7 of the Memorandum and Articles of Association every Governor of the University undertakes, if the University is dissolved while he or she is a Governor, or within one year afterwards, to pay up to One Pound (£1.00) towards the costs of dissolution and the liabilities incurred by the University while he or she was a Governor. Website The maintenance and integrity of the University website is the responsibility of the Board of the University; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

University of Winchester, Hampshire

19


The Standing Committee, subject to the Memorandum and Articles of Association, has the authority to act for the Board of Governors between meetings. Under delegated powers and within general policy laid down by the Board of Governors, the Standing Committee has responsibility for the governance of:  Strategic planning  Academic affairs  Financial affairs  Student affairs  Estates and buildings matters including property transactions  Such other matters as the Board of Governors may determine. The Standing Committee is also responsible for undertaking a detailed examination of the annual estimates of income and expenditure, and the annual accounts, and for recommending to the Board of Governors their approval or otherwise. Standing Committee agrees the agenda for meetings of the Board of Governors. The Audit Committee meets three times annually with auditors present, to review the internal auditors‟ risk assessment and strategy and to consider the findings of internal audit investigations, together with the management‟s response and implementation plans. It also receives and considers reports from HEFCE as they affect the University‟s business and monitors adherence with regulatory requirements. It reviews the University‟s annual financial statements together with the accounting policies. Whilst senior managers attend meetings of the Audit Committee as necessary, they are not members. The Committee meets at least once a year with the external and internal auditors without any officers present. 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 terms of the Financial Memorandum between the University and the HEFCE, the ViceChancellor 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. 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. Auditors RSM Tenon Audit Ltd were appointed as auditors for the year ended 31st July 2011 at the Board of Governors meeting on 24 November 2010. A resolution to re-appoint RSM Tenon Audit Ltd for the year ended 31st July 2012 will be made at the Board of Governors meeting on 23 November 2011. Disclosure of information to auditors The Governors who held office at the date of approval of this report confirm that so far as they are each aware there is no relevant audit information of which the University‟s auditors are unaware; and each Governor has taken all the steps that he or she ought to have taken to be aware of any relevant audit information and to establish that the University‟s auditors are aware of that information. University of Winchester, Hampshire

20


Statement of internal control 1.

The Board of Governors has responsibility for maintaining a sound system of internal control 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 memorandum and articles, and the Financial Memorandum with the HEFCE.

2.

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

3.

The system of internal control is based on an ongoing process designed to identify risks to the achievement of policies, aims and objectives, to evaluate the nature and extent of those risks and to manage them efficiently, effectively and economically. This process has been in place for the year ended 31 July 2011 and up to the date of approval of the financial statements, and accords with HEFCE guidance.

4.

The Board of Governors has responsibility for reviewing the effectiveness of the system of internal control. The following processes have been established:  The Board meets at regular intervals of three times per year to consider the plans and strategic direction of the University.  The Board receives periodic reports from the Chair of the Audit Committee concerning internal control, 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 has delegated to the Audit Committee some of the responsibility for providing oversight of risk management.  The Audit Committee receives regular reports from internal auditors, which include their independent opinion on the adequacy and effectiveness of the University‟s system of internal control, together with recommendations for improvement.  A regular programme of review is undertaken to identify and keep up to date the record of risks facing the organisation.  Risk awareness is facilitated at university and service level as appropriate to the risk.  A system of key performance and risk indicators has been developed.  A robust risk prioritisation methodology based on risk ranking and cost-benefit analysis has been established.  An organisation-wide risk register is maintained.  Reports are received from budget holders, department heads and project managers on internal control activities.

University of Winchester, Hampshire

21


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INDEPENDENT AUDITORS’ REPORT TO THE BOARD OF GOVERNORS OF THE UNIVERSITY OF WINCHESTER We have audited the financial statements of the University of Winchester for the year ended 31 July 2011 which comprise the Income and Expenditure Account, Statement of Total Recognised Gains and Losses, the Balance Sheet, the Cash Flow Statement and the related notes. The financial framework that has been applied in their preparation is applicable law, United Kingdom Accounting Standards and the Statement of Recommended Practice: Accounting for Further and Higher Education (United Kingdom Generally Accepted Accounting Practice). This report is made solely to the University‟s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act. Our audit work has been undertaken so that we might state to the University‟s members those matters we are required to state to them in an auditor‟s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the University and the University‟s members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of Governors and Auditors The Governors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board‟s (APB‟s) Ethical Standards for Auditors. Scope of the audit An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to University‟s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Governors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the directors‟ report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Opinion on financial statements In our opinion the financial statements: 

give a true and fair view of the state of the University‟s affairs as at 31 July 2011 and of the surplus of income over expenditure for the year then ended;

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

have been prepared in accordance with the requirements of the Companies Act 2006 and the Statement of Recommended Practice: Accounting for Further and Higher Education;

University of Winchester, Hampshire

23


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UNIVERSITY OF WINCHESTER INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2011

Note INCOME Funding body grants Tuition fees and education contracts Research grants and contracts Other income Endowment and investment income

1 2 3 4 5

Total Income EXPENDITURE Staff costs Depreciation of tangible fixed assets Other operating expenses Interest and other finance costs

6 7 8 9

Total Expenditure SURPLUS BEFORE TAX

Restated 2010 £

2011 £ 17,900,618 19,981,069 543,153 11,538,683 64,366

17,294,657 18,138,481 439,862 10,432,060 39,653

50,027,889

46,344,713

24,423,459 2,435,852 18,871,731 977,833

21,502,068 2,392,015 16,978,958 1,282,804

46,708,875

42,155,845

3,319,014

4,188,868

Taxation

10

SURPLUS AFTER TAX

11

3,319,014

4,188,868

Transfer from accumulated income within endowments

22

11,466

1,248

3,330,480

4,190,116

SURPLUS FOR THE YEAR RETAINED IN RESERVES

-

-

The income and expenditure of the University relate wholly to continuing operations. Comparitive figures for 2010 have been restated for pensions past service gains (see note 35). The notes on pages 32 to 49 form part of these financial statements.

NOTE OF HISTORICAL COST SURPLUSES AND DEFICITS FOR THE YEAR ENDED 31 JULY 2011 Note

2011 £ 3,319,014

Restated 2010 £ 4,188,868

23

222,415

222,414

3,541,429

4,411,282

Surplus for the year Difference between historical cost depreciation charge and the actual depreciation charge for the year calculated on the revalued amount HISTORICAL COST SURPLUS FOR THE YEAR

University of Winchester, Hampshire

25


UNIVERSITY OF WINCHESTER STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES FOR THE YEAR ENDED 31 JULY 2011

Note

Surplus for the year New endowments Actuarial loss in respect of pension scheme

22 32

Total recognised gains in the year since last financial statement

2011 ÂŁ

Restated 2010 ÂŁ

3,319,014 3,017 (210,000)

4,188,868 7,132 (60,000)

3,112,031

4,136,000

Reconciliation Opening reserves and endowments as previously reported Prior year adjustment impact Opening reserves Total recognised Gains for the year Closing reserves and endowments

31,545,995 35

31,545,995 3,112,031 34,658,026

Comparative figures for 2010 have been restated for pensions past service gains (see note 35).

University of Winchester, Hampshire

26


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UNIVERSITY OF WINCHESTER CASH FLOW STATEMENT FOR THE YEAR ENDED 31 JULY 2011

Note

2011 £

2010 £

7,947,563

4,783,756

Cash flow from operating activities

28

Returns on investments and servicing of finance

29

(689,784)

(754,306)

Capital expenditure

29

(1,676,022)

(2,109,146)

5,581,757

1,920,304

Cash inflow before financing Management of liquid resources

29

(4,009,175)

(41)

Financing

29

(481,689)

(705,009)

INCREASE IN CASH

30

1,090,893

University of Winchester, Hampshire

1,215,254

28


STATEMENT OF PRINCIPAL ACCOUNTING POLICIES FOR THE YEAR ENDED 31 JULY 2011 Accounting Convention The Financial Statements have been prepared under the historical cost convention, modified by the revaluation of endowment asset investments and certain land and buildings in accordance with both the Statement of Recommended Practice: Accounting in Further and Higher Education and applicable accounting standards. They conform to guidance published in HEFCE 10/11 accounts direction. Basis of Consolidation The financial statements do not include those of the Universityâ€&#x;s three subsidiary companies, KAC Enterprises Limited, Winchester Business School Limited and Winchester Management School Limited, on the grounds that they have been dormant since incorporation. The financial statements do not include those of Winchester Student Union as it is an independent association in which the University has no financial interest and no control or significant influence over policy decisions. Recognition of Income Higher Education Funding Council for England and Training and Development Agency for Schools grants, tuition fees, research grants and other income are accounted for on an accruals basis. Income from endowments, not expended in accordance with the restrictions of the endowment, is transferred from the income and expenditure account to endowments. Taxation Status The University is an exempt charity within the meaning of Schedule 2 of the Charities Act 1993 (as amended by the Charities Act 2006) and as such is a charity within the meaning of Section 506(1) of the Taxes Act 1988. Accordingly, the University is potentially exempt from taxation in respect of income or capital gains received within categories covered by Section 505 of the Taxes Act 1988 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that such income or gains are applied to exclusively charitable purposes. The University receives no similar exemption in respect of Value Added Tax. Irrecoverable VAT on inputs is included in the costs of such inputs. Any irrecoverable VAT allocated to tangible fixed assets is included in their cost. Maintenance of Premises Maintenance of premises has been charged to the Income and Expenditure Account as incurred. Payment Performance Payments to suppliers are typically made at the end of each calendar month following receipt of invoice. Therefore, on average, suppliers are paid by 45 days after receipt of invoice. Operating Lease Costs Operating lease costs are charged to the Income and Expenditure Account in the period in which they are incurred.

University of Winchester, Hampshire

29


Fixed Assets Land and buildings were revalued as at 31 July 1996 at depreciated replacement cost. The valuation was carried out by King Sturge and Co in accordance with the Appraisal and Valuation Manual published by the Royal Institution of Chartered Surveyors. Buildings are depreciated over their remaining useful economic life as assessed by King Sturge and Co and range from two to seventy years. Subsequent additions are held at cost which in certain cases includes interest paid during construction on loans specifically taken out to finance the relevant assets. Freehold land is not depreciated. Tangible assets are stated at either historic cost or valuation. The University intends to continue using these carrying values for the foreseeable future. In accordance with the provisions of FRS15 (Tangible Fixed Assets), it does not intend periodically revaluing assets. Depreciation on fixed assets other than land and buildings is calculated to write off their cost in equal annual instalments over the following estimated useful lives: Major Refurbishments Fixtures & Fittings Equipment IT equipment Motor vehicles

10 years 10 years 5 years 3 years 5 years

Assets under construction are accounted for at cost, based on the value of architectsâ€&#x; certificates and other direct costs, incurred to 31 July. They are not depreciated until they are brought into use. Equipment costing less than ÂŁ1,000 is written off in the year of acquisition. Grants Grants received for capital purposes are credited to deferred capital grant accounts and released to match the related depreciation charges. Grants received for revenue activities are released directly to the income and expenditure account to match with the associated expenditure. Grants due but not received are shown as other debtors. Impairment A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying amount of any fixed asset may not be recoverable. For assets depreciated over a period greater than 50 years an annual impairment review is carried out in line with the requirements of FRS 15 (Tangible Fixed Assets). Stocks Stocks are valued at the lower of cost and net realisable value. Investments Endowment asset investments are included in the balance sheet at market value. Fixed asset investments that are not listed on a recognised stock exchange are carried at historical cost less any provision for impairment in their value. Pensions The University contributes to the Local Government Pension Scheme (LGPS), the Teachersâ€&#x; Pension Scheme (TPS) and the University Superannuation Scheme (USS). All schemes are defined benefit schemes but the TPS and USS schemes are multi-employer schemes and it is not possible to identify the assets of the schemes, which are attributable to the University. In accordance with FRS 17 these schemes are accounted for on a defined contribution basis University of Winchester, Hampshire

30


and contributions to the schemes are included as expenditure in the period in which they are payable. The University is able to identify its share of assets and liabilities of the LGPS and thus the University fully adopts FRS 17 „Retirement benefitsâ€&#x;. Agency arrangements Funds the University receives and disburses as paying agent on behalf of a funding body or other body, where the University is exposed to minimal risk or enjoys minimal economic benefit related to the receipt and subsequent disbursements of the fund, are excluded from the income and expenditure of the University. Provisions Provisions are recognised when the University has a present legal or constructive obligation as a result of a past event, it is probable that a transfer of economic benefit will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Enhanced Pensions The actual cost of any enhanced ongoing pension to a former member of staff is paid by the University annually. An estimate of the expected future cost of any enhancement to the ongoing pension of a former member of staff is charged in full to the Universityâ€&#x;s income and expenditure account in the year that the member of staff retires. In subsequent years a charge is made to provisions in the balance sheet in line with the latest calculations. Financial Instruments Financial instruments are classified and accounted for according to the substance of the contractual arrangement as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

University of Winchester, Hampshire

31


NOTES TO THE FINANCIAL STATEMENTS

Note 1

Funding body grants

Recurrent grant from HEFCE Recurrent grant from TDA Recurrent research grant Specific grants Deferred capital grants released in year (note 21)

Note 2

Tuition fees and education contracts

Full-time students Full-time students charged overseas fees Part-time fees Self financing courses

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 endowment assets (note 22) Income from short term investments

2011 £

2010 £

10,879,038 4,645,055 736,209 1,107,122 533,194

10,950,266 4,647,465 775,186 395,041 526,699

17,900,618

17,294,657

2011 £

2010 £

13,743,350 2,005,981 1,747,913 2,483,825

12,771,775 1,383,721 1,714,347 2,268,638

19,981,069

18,138,481

2011 £ 543,153

2010 £ 439,862

2011 £

2010 £

7,340,991 311,882 3,885,810

6,219,508 299,453 3,913,099

11,538,683

10,432,060

2011 £

2010 £

117 64,249

115 39,538

64,366

39,653

University of Winchester, Hampshire

32


NOTES TO THE FINANCIAL STATEMENTS

Note 6

Staff costs

2011 Number

2010 Number

The number of persons (including senior post-holders) employed by the University during the year, expressed as full-time equivalents, was: Academic Staff Administration Staff

Staff costs: Salaries Social security costs Pension costs (note 32 d)

225 360

219 355

585

574

2011

Restated 2010

£ 20,393,792 1,551,206 2,478,461

£ 19,729,082 1,503,983 269,003

24,423,459

21,502,068

Salaries include redundancy payments of £247,861 (2010: £191,300) The staff costs above include directors' emoluments of £553,583 and employer's pension contributions of £81,679. Seven of the nine directors benefit from employer's pension contributions. As stated in the Statement of Corporate Governance and Internal Control no member of the Board of Governors receives any remuneration for the work they do as members of that Board. 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 highest paid director is the Vice-Chancellor whose emoluments are (included above): 2011 £ Vice-Chancellor's emoluments for the year Remuneration Employer's pension contributions Total emoluments including pension costs

2010 £

177,759 28,104 205,863

170,068 25,504 195,572

Emoluments of other higher paid staff, including employer's pension contributions:

£110,000 - £119,999 £120,000 - £129,999

Note 7

Depreciation of tangible fixed assets

2011 Number 1

2010 Number 1 -

2011 £

2010 £

The depreciation charge has been funded by: Deferred capital grants released (note 21) Revaluation reserve released (note 23) General income

533,194 222,415 1,680,243

526,699 222,414 1,642,902

2,435,852

2,392,015

University of Winchester, Hampshire

33


NOTES TO THE FINANCIAL STATEMENTS

Note 8

Other operating expenses

2011 £

Residences, catering and conferences operating expenses 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

Other operating expenses include: Auditors' remuneration External audit Internal audit Other accounting services, excluding audit Operating lease rentals - vehicles & photocopiers - land & buildings

Note 9

Interest and other finance costs

Loans not wholly repayable within five years Pension finance costs (note 32b)

2010 £

2,369,454 1,039,271 802,211 2,954,200 1,240,676 989,787 240,000 249,574 8,986,558

1,986,949 1,052,377 730,820 3,225,424 888,884 882,527 240,000 234,275 7,737,702

18,871,731

16,978,958

2011 £

2010 £

36,410 20,216 27,707 54,692 1,063,496

26,790 17,390 6,936 88,467 -

2011 £

2010 £

747,833 230,000 977,833

792,804 490,000 1,282,804

Pension finance costs represents the interest charge on accrued pension liabilities offset by a credit equivalent to the long -term return on assets based on the market value of the defined benefit pension scheme assets at the start of the period.

Note 10

Taxation The University is an exempt charity and as such is not subject to corporation tax on its charitable activities. The University has reviewed its non charitable trading activities and has determined that there is no corporation tax liability for the year ended 31 July 2011.

Note 11

Surplus on continuing operations for the period

2011 £

Restated 2010 £

The surplus on continuing operations for the period is made up as follows: University's surplus for the period

3,319,014

University of Winchester, Hampshire

4,188,868

34


NOTES TO THE FINANCIAL STATEMENTS

Note 12

Tangible assets Freehold Land and Buildings

Assets in Course of Construction

Major Refurbishments

Motor Vehicles

Equipment Furniture & Fittings

Total

£

£

£

£

£

£

Cost/Valuation At 1 August 2010 Valuation Cost Additions at cost Transferred Disposals and write offs Cost At 31 July 2011 Valuation Cost

29,438,556 33,218,155 14,008 256,931

-

29,438,556 33,489,094

502,595 1,306,223 (1,142,084)

-

666,734

-

-

-

-

5,144,571

32,040

7,481,192

29,438,556 46,378,553

301,925 534,104

63,267 -

436,577 351,049

2,122,000 0

-

-

(27,126)

(27,126)

5,980,600

95,307

8,241,692

29,438,556 48,473,427

5,993,076

18,296,910

Depreciation At 1 August 2010

9,988,278

-

2,299,852

15,704

Charge for year Eliminated on disposals

1,178,768 -

-

444,848 -

19,061 -

11,167,046

-

2,744,700

34,765

6,759,124

20,705,635

At 31 July 2011

793,174 (27,126)

2,435,851 (27,126)

Net Book Value At 31 July 2011

51,760,604

666,734

3,235,900

60,542

1,482,568

57,206,348

At 1 August 2010

52,668,433

502,595

2,844,719

16,336

1,488,116

57,520,199

Land and buildings were revalued as at 31 July 1996 at depreciated replacement cost. The valuation was carried out by King Sturge and Co. in accordance with the Appraisal and Valuation Manual published by the Royal Institution of Chartered Surveyors. Assets in the course of construction as at 31 July 2011 relate in the main to: Business School Conversion - Phase V New Learning & Teaching Building Conversion of Medecroft

£204k £262k £140k

Assets in the course of construction transferred in this year relate in the main to: Business School Conversion - Phase IV Human Movement Centre Extension Installation of Utilities Metering & Targeting Software Conversion of St Swithuns Lodge Conversion of Alwyn Hall East

£308k £267k £180k £185k £111k

University of Winchester, Hampshire

35


NOTES TO THE FINANCIAL STATEMENTS

Note 13

Investments

At 31 July

2011 £

2010 £

56

56

At 31 July 2011 the University owned 100% of the issued share capital of KAC Enterprises Limited, Winchester Business School Limited and Winchester Management School Limited. All companies are registered in England. All companies were dormant throughout the year. The University owns an investment in LeNSE Limited. This company provides regional broadband internet access, primarily for the shareholders (a consortium of ten Higher Education Institutions) but also for other organisations. The investment was in the form of a nominal value of £50 plus a share premium of £24,950. The Board of Governors have determined that the appropriate carrying value should be the nominal value of the shares.

Note 14

Note 15

Endowment asset investments At 1 August 2010 Disposals

2011 £ 31,289 (8,449)

At 31 July 2011

22,840

Represented by: Bank balances

22,840

Total endowment asset investments

22,840

Stocks

Reprographic supplies Fuel oil Cleaning materials Stationery stores IT consumables Catering stock

2011 £

2010 £

4,017 1,566 760 9,560 14,736

6,533 16,137 2,930 2,403 18,319 14,011

30,639

60,333

University of Winchester, Hampshire

36


NOTES TO THE FINANCIAL STATEMENTS

Note 16

Debtors 2011 £

2010 £

Amounts falling due within one year Debtors Prepayments and accrued income

Note 17

826,200 1,210,253 2,036,453

1,342,614 881,888 2,224,502

Short term investments 2011 £

Central Board of Finance Nat West 30 day notice account Nat West Fixed Rate Bond

Note 18

2010 £

6,493 3,009,136 1,000,000

6,454 -

4,015,629

6,454

Creditors: amounts falling due within one year 2011 £

Mortgages and unsecured loans Other creditors Accrued capital expenditure Social security and other taxation payable Accruals and deferred income

2010 £

831,804 1,399,596 481,311 546,109 3,881,741

734,082 1,122,648 522,825 474,203 2,457,662

7,140,561

5,311,420

University of Winchester, Hampshire

37


NOTES TO THE FINANCIAL STATEMENTS

Note 19

Creditors: amounts falling due after more than one year 2011 £

2010 £

Mortgages and unsecured loans HEFCE Matched funding Salix Revolving Green

11,220,003 150,799

11,799,414 32,634 150,799

Total

11,370,802

11,982,847

831,804 859,600 2,682,747 7,677,656

734,082 759,691 2,463,466 8,576,257

12,051,807

12,533,496

Mortgages and unsecured loans are repayable as follows: In one year or less Between one and two years Between two and five years In five years or more

Mortgages represent loans at fixed and floating rates which are repayable by instalments in the period to 2031 and are secured on part of the University's freehold property.

Note 20

Note 21

Provisions for liabilities and charges

Pension enhancement (note 32b): At 1 August 2010 Utilised in year Charge to Income and Expenditure Account

£ 554,505 (44,978) 44,361

At 31 July 2011

553,888

Deferred capital grants £ At 1 August 2010 Cash receivable Released to Income and Expenditure:Funding depreciation charge Funding other revenue expenditure At 31 July 2011

10,257,222 483,158 (533,194) 10,207,186

University of Winchester, Hampshire

38


NOTES TO THE FINANCIAL STATEMENTS

Note 22

Endowments Restricted Total £ 31,289

At 1 August 2010 Additions Income for year Expenditure for the year

3,017 117 (11,583)

At 31 July 2011

22,840

Representing: Benevolent funds Bursary funds Memorial funds Prize funds

11,120 4,547 6,942 231 22,840

Note 23

Revaluation reserve

At 1 August 2010 Transfer from revaluation reserve to income and expenditure account reserve in respect of: Depreciation on revalued assets (note 7)

(222,415)

At 31 July 2011

Note 24

£ 14,086,816

13,864,401

Income and Expenditure Reserve

Balance at 1 August 2010 Surplus before tax and exceptional items Release from revaluation reserve to fund depreciation on revalued assets Release from endowment reserves to fund endowment expenditure Actuarial loss on pension scheme liability

£ 17,427,890 3,319,014 222,415 11,466 (210,000)

Balance at 31 July 2011

20,770,785

Income and Expenditure reserve excluding pension liability Pension reserve Income and Expenditure reserve

28,350,785 (7,580,000) 20,770,785

University of Winchester, Hampshire

39


NOTES TO THE FINANCIAL STATEMENTS

Note 25

Lease commitments 2011 £

2010 £

Annual operating lease commitments on leases expiring: In one year or less Between two and five years Thereafter

Note 26

1,620 53,072 1,245,664

21,045 67,422 -

1,300,356

88,467

Capital commitments 2011 £ Commitments contracted at 31 July

5,875,341

Commitments authorised but not contracted at 31 July

2010 £ 470,568

176,907

-

Commitments contracted at 31 July include: Learning and Teaching building West Downs Phase V

Note 27

£5,387,989 £487,352

Contingent liabilities and assets 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. However whilst 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 of £41,714 through until March 2022.

University of Winchester, Hampshire

40


NOTES TO THE FINANCIAL STATEMENTS

Note 28

Note 29

Reconciliation of consolidated operating surplus to net cash from operating activities 2011 £

Restated 2010 £

Surplus before tax Depreciation (Profit)/ Loss on disposal of fixed assets Deferred capital grants released to income Investment income Interest payable Decrease/(Increase) in debtors Decrease/(Increase) in stocks Increase in creditors Decrease in provisions Pension cost less contributions payable

3,319,014 2,435,852 (1,317) (533,194) (64,366) 977,833 192,852 29,694 1,741,812 (617) (150,000)

4,188,868 2,392,015 1,356 (526,699) (39,653) 1,282,804 (884,102) (285) 520,298 (10,846) (2,140,000)

Net cash inflow from operating activities

7,947,563

4,783,756

Gross cash flows

Returns on investments and servicing of finance Interest received Interest paid Income from investments

Capital expenditure Purchase of tangible fixed assets Receipts from sales of tangible fixed assets Deferred capital grants received Endowments received

Management of liquid resources Movement on short term investments

Financing Loan repayments New Loans

2011 £

2010 £

59,446 (749,347) 117

39,802 (794,223) 115

(689,784)

(754,306)

(2,163,514) 1,317 483,158 3,017

(3,573,801) 10,298 1,447,225 7,132

(1,676,022)

(2,109,146)

(4,009,175)

(41)

(4,009,175)

(41)

(770,141) 288,452

(705,009) -

(481,689)

(705,009)

University of Winchester, Hampshire

41


NOTES TO THE FINANCIAL STATEMENTS

Note 30

Reconciliation in net cash flow to movement in net funds/(debt) 2011 £ Increase in cash in the period Loan repayments New loans Movement on short term investments Decrease in net debt Net debt at 1 August Net funds/(debt)at 31 July

Note 31

1,090,893 770,141 (288,452) 4,009,175 5,581,757

1,215,254 705,009 41 1,920,304

(5,396,597)

(7,316,901)

185,160

(5,396,597)

Analysis of changes in net funds/(debt) At 31 July 2010 £ Cash at bank and in hand Endowment assets

Current assets investments Debt due within 1 year Debt due after 1 year

Net (Debt)/funds

Note 32

2010 £

Cash Flows £

7,099,156 31,289 7,130,445

1,099,342 (8,449) 1,090,893

6,454 (734,082) (11,799,414) (12,527,042)

4,009,175 734,082 (252,393) 4,490,864

(5,396,597)

5,581,757

Other Changes £ -

At 31 July 2011 £ 8,198,498 22,840 8,221,338

4,015,629 (831,804) (831,804) 831,804 (11,220,003) (8,036,178) -

185,160

Pension schemes Retirement benefits for the employees of the University of Winchester are provided principally by two pension schemes. Payments are made to the Teachers' Pension Scheme for academic staff and to Hampshire County Council Pension Scheme for non-academic staff. Both are independently administered schemes.

The University's contributions for the year to both schemes can be summarised as: Scheme

Contribution Type of Staff rate Teachers' Pension Scheme Academic From 01/01/2007 14.10% Hampshire County Council To 01/04/2011 From 01/04/2011

19.10% 19.60%

(15.6% for future service and 4% for past service)

The aggregated pension charge for all schemes for the year was £2,478,461 (2010: £269,003): this included an amount in respect of enhanced pension entitlements to certain staff who took early retirement prior to August 1997

University of Winchester, Hampshire

42


NOTES TO THE FINANCIAL STATEMENTS

Note 32(a) Teachers' Pension Scheme Introduction The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme. The regulations under which the TPS operates are the Teachers' Pensions Regulations 2010. These regulations apply to teachers in schools and other educational establishments in England and Wales maintained by local authorities, to teachers in many independent and voluntary-aided schools, and to teachers and lecturers in establishments of further and higher education. 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. Under the definitions set out in Financial Reporting Standard 17 Retirement Benefits, the TPS is a multiemployer pension scheme. The University is unable to identify its share of the underlying (notional) assets and liabilities of the scheme. Accordingly, the University has taken advantage of the exemption in FRS 17 and has accounted for its contributions to the scheme as if it were a defined contribution scheme. The University has set out below the information available on the scheme and the implications for the University in terms of the anticipated contribution rates. The Teachers' Pension Budgeting and Valuation Account Although teachers and lecturers are employed by various bodies, their retirement and other pension benefits, including annual increases payable under the Pensions (Increase) Acts are, as provided for in the Superannuation Act 1972, paid out of monies provided by Parliament. Under the unfunded TPS, teachers' contributions on a 'pay-as-you-go' basis, and employers' contributions, are credited to the Exchequer under arrangements governed by the above Act. The Teachers' Pensions Regulations require an annual account, the Teachers' Budgeting and Valuation Account, to be kept of receipts and expenditure (including the cost of pensions' increases). From 1 April 2001, the Account has been credited with a real rate of return (in excess of price increases and currently set at 3.5%), 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 Not less than every four years the Government Actuary (GA), using normal actuarial principles, conducts a formal actuarial review of the TPS. The aim of the review is to specify the level of future contributions. The contribution rate paid into the TPS is assessed in two parts. First, a standard contribution rate (SCR) is determined. This is the contribution, expressed as a percentage of the salaries of teachers and lecturers in service or entering service during the period over which the contribution rate applies, which if it were paid over the entire active service of these teachers and lecturers would broadly defray the cost of benefits payable in respect of that service. Secondly, a supplementary contribution is payable if, as a result of the actuarial investigation, it is found that accumulated liabilities of the Account for benefits to past and present teachers, are not fully covered by standard contributions to be paid in future and by the notional fund built up from past contributions. The total contribution rate payable is the sum of the SCR and the supplementary contribution rate. The last valuation of the TPS related to the period 1 April 2001 - 31 March 2004. The GA's report of October 2006 revealed that the total liabilities of the Scheme (pensions currently in payment and the estimated cost of future benefits) amounted to £166,500 millions. The value of the assets (estimated future contributions together with the proceeds from the notional investments held at the valuation date) was £163,240 millions. The assumed real rate of return is 3.5% in excess of prices and 2% in excess of earnings. The rate of real earnings growth is assumed to be 1.5%. The assumed gross rate of return is 6.5%. As from 1 January 2007, and as part of the cost-sharing agreement between employers‟ and teachers‟ representatives, the SCR has been assessed at 19.75%, and the supplementary contribution rate has been assessed to be 0.75% (to balance assets and liabilities as required by the regulations within 15 years); a total contribution rate of 20.5%. This translates into an employee contribution rate of 6.4% and employer contribution rate of 14.1% payable. The cost-sharing agreement has also introduced - effective for the first time for the 2008 valuation - a 14% cap on employer contributions payable.

University of Winchester, Hampshire

43


NOTES TO THE FINANCIAL STATEMENTS

Note 32(b) Hampshire County Council Scheme The disclosures below relate to the funded liabilities within the Hampshire County Council Pension Fund (the "Fund") which is part of the Local Government Pension Scheme. The University of Winchester participates in the Fund which provides defined benefits, based on members' final pensionable salary. In accordance with Financial Reporting Standard No. 17 - Retirement Benefits (FRS 17) disclosure of certain information concerning assets, liabilities, income and expenditure relating to pension schemes is required. Contributions for the year ending 31 July 2012 Regular employer contributions to the Fund for the year ending 31 July 2012 are estimated to be ÂŁ1.12M. In addition, Strain on Fund Contributions may be required. Assumptions The latest actuarial valuation of the Fund took place with an effective date of 31 March 2010. The principal assumptions used by the independent qualified actuaries in updating the latest valuation of the Fund for FRS 17

Discount Rate RPI inflation CPI inflation Rate of increase to pensions in payment * Rate of increase to deferred pensions * Rate of general increase in salaries **

Principal actuarial assumptions 31 July 2011 31 July 2010 31 July 2009 (% pa) (% pa) (% pa) 5.3 5.4 6.0 3.7 3.4 3.7 2.8 2.7 N/A 2.8 2.7 3.7 2.8 2.7 3.7 5.2 4.9 5.2

* In excess of Guaranteed Minimum Pension increases in payment where appropriate. ** In addition, the actuaries have allowed for the same age related promotional salary scales as used at the actuarial valuation of the Fund as at 31 March 2010. Mortality assumptions The mortality assumptions are based on the PNA00 series standard mortality tables with allowance for future mortality improvements in line with the "medium cohort" projection model, subject to a minimum level of annual improvement. Mortality rates in the underlying base table are further adjusted by the use of scaling factors to reflect the actual mortality experience of the Fund. To facilitate comparison with other employers, the assumed life expectations on retirement at age 65 are:

Male Female

At 31 July 2011 Retiring today Retiring in 20 years 23.8 25.6 24.8 26.7

University of Winchester, Hampshire

44


NOTES TO THE FINANCIAL STATEMENTS Expected return on assets The approximate split of assets for the Fund as a whole (based on data supplied by the Fund Administering Authority) is shown in the table below. Also shown are the assumed rates of return adopted by the employer for the purposes of FRS17. Long-term Long-term rate rate of return of return expected at 31 Asset split at expected at 31 Asset split at July 2011 31 July 2011 July 2010 31 July 2010 (% pa) * (%) (% pa) * (%)

Equities Property Government bonds Corporate bonds Cash Other ** Total

7.9 7.4 3.9 4.7 1.5 7.9 6.7

63.2 8.0 24.1 1.8 2.9 0.0 100.0

8.2 7.7 4.2 4.9 1.4 8.2 6.7

60.5 6.6 24.5 2.4 6.0 0.0 100.0

Long-term rate of return expected at 31 Asset split at July 2009 31 July 2009 (% pa) * (%)

8.0 7.0 4.5 5.9 0.9 0.9 6.5

59.7 5.5 25.7 2.4 6.6 0.1 100.0

* Following the Amendment to FRS 17 issued in December 2006, disclosure of the expected return on assets by asset category is no longer required (only the total rate needs to be disclosed along with the asset values). The overall expected rate of return on Fund assets is a weighted average of the individual expected rates of return on each asset class. ** Other holdings include hedge funds, currency holdings, asset allocation futures and other. The actuaries have assumed this year that these will get a return in line with equities. The University of Winchester employs a building block approach in determining the rate of return on Fund assets. Historical markets are studied and assets with higher volatility are assumed to generate higher returns consistent with widely accepted capital market principles. The assumed rate of return on each asset class is set out within this note. The overall expected rate of return on assets is then derived by aggregating the expected return for each asset class over the actual asset allocation for the Fund as at 31 July 2011. Reconciliation of funded status to balance sheet

Fair value of Fund assets Present value of liabilities Net pension liability

Value at 31 July 2011 (£M) 15.97 23.55 (7.58)

Value at 31 July 2010 (£M) 12.67 19.96 (7.29)

Value at 31 July 2009 (£M) 10.17 19.05 (8.88)

Analysis of Income and Expenditure charge Year ending 31 July 2011

Current service cost (net of employee contributions) Past service cost Interest cost Expected return on assets Curtailment costs Settlement cost Expense recognised in Income and Expenditure

(£M) 0.91 0.03 1.10 (0.87) 0.00 0.00 1.17

Year ending 31 July 2010 Restated (£M) 0.94 (2.12) 1.17 (0.68) 0.00 0.00 (0.69)

The benefits valued are broadly those that are set out in legislation at the time of calculation. The pension cost shown in next year's accounts will be different to that shown above. Reasons why the pension cost may change include: § Actual increase in payroll differing from the assumed increase (this will particularly affect the current service cost) § Past service costs may not be zero (this cost is that resulting from benefit augmentations or early retirement of individual members before aged 60 or on the grounds of efficiency) § Curtailment / settlement events may occur (e.g. outsourcing exercises, redundancy exercises, or bulk transfers) § Actual cashflows over the next year may differ from those assumed (this will particularly affect the expected return on assets and interest on liabilities) - this effect is, however, minor compared to those above.

University of Winchester, Hampshire

45


NOTES TO THE FINANCIAL STATEMENTS Changes to the present value of liabilities during the year Year ending 31 July 2011 (£M)

Year ending 31 July 2010 (£M)

Opening present value of liabilities 19.96 Current service cost 0.91 Interest cost 1.10 Contributions by participants 0.45 Actuarial losses on liabilities * 1.51 Net benefits paid out # (0.41) Past Service Cost 0.03 Impact of change from RPI to CPI Net increase in liabilities from disposals and acquisitions 0.00 Curtailments 0.00 Settlements 0.00 Closing present value of liabilities 23.55

19.05 0.94 1.17 0.41 1.00 (0.49) -

(2.12) 0.00 0.00 0.00 19.96

* Includes changes to the actuarial assumptions # Consists of net cashflow out of the Fund in respect of the employer, excluding contributions and any death in service lump sums paid, and including an approximate allowance for the expected cost of death in service lump sums. Changes to the fair value of assets during the year Year ending 31 July 2011 (£M)

Year ending 31 July 2010 (£M)

Opening fair value of assets 12.67 10.17 Expected return on assets 0.87 0.68 Actuarial gain/(loss) on assets 1.30 0.94 Contributions by the University 1.09 0.96 Contributions by participants 0.45 0.41 Net benefits paid out # (0.41) (0.49) Net increase in assets from disposals and acquisitions 0.00 0.00 Settlements 0.00 0.00 Closing fair value of assets 15.97 12.67 # Consists of net cashflow out of the Fund in respect of the employer, excluding contributions and any death in service lump sums paid, and including an approximate allowance for the expected cost of death in service lump sums. Actual return on assets Year ending 31 July 2011 (£M) 0.87 1.30 2.17

Expected return on assets Actuarial gain/(loss) on assets Actual return on assets

Year ending 31 July 2010 (£M) 0.68 0.94 1.62

Analysis of amount recognised in STRGL Year ending 31 July 2011

Total actuarial gain/(loss) on assets Change in Irrecoverable surplus Total gains / (losses) in STRGL

(£M) (0.21) 0.00 (0.21)

Year ending 31 July 2010 Restated (£M) (0.06) 0.00 (0.06)

University of Winchester, Hampshire

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NOTES TO THE FINANCIAL STATEMENTS History of asset values, present value of liabilities and deficit Year ending 31 July 2011 (£M)

Year ending 31 July 2010 (£M)

Year ending 31 July 2009 (£M)

Year ending 31 July 2008 (£M)

Year ending 31 July 2007 (£M)

15.97 23.55 (7.58)

12.67 19.96 (7.29)

10.17 19.05 (8.88)

10.37 15.55 (5.18)

10.63 14.89 (4.26)

Fair value of assets Present value of liabilities (Deficit)

In accordance with Paragraph 77(o) of FRS17 (as revised), the assets for the current period and previous three periods are measured at current bid price. Asset values previously measured at mid-market value for periods ending 2008 and 2007 have been re-measured for this purpose. History of experience gains and losses Year ending 31 July 2011 (£M)

Year ending 31 July 2010 (£M)

Year ending 31 July 2009 (£M)

Year ending 31 July 2008 (£M)

Year ending 31 July 2007 (£M)

1.30 (0.49)

0.94 0.14

(1.68) (0.04)

(1.69) 0.31

0.17 (0.02)

Experience gains/(losses) on assets Experience gains/(losses) on liabilities *

* This item consists of gains/(losses) in respect of liability experience only and excludes any change in liabilities in respect of changes to the actuarial assumptions used. Estimated pension costs in future years Set out below is an estimate of the charge in future years, together with the assumptions used for this. Main financial assumptions Discount rate RPI inflation CPI inflation Rates of increase to pensions in payment * Rate of increase to deferred pensions * Rate of general increase in salaries *

% pa 5.3 3.7 2.8 2.8 2.8 5.2

* In excess of Guaranteed Minimum Pension increases in payment where appropriate. Asset Class Equities Property Government Bonds Corporate Bonds Cash Other * Average Return

Expected return on assets Assumed return (% pa) 7.9 7.4 3.9 4.7 1.5 7.9 6.7

** Other holdings include hedge funds, currency holdings, asset allocation futures and other. The actuaries have assumed this year that these will get a return in line with equities.

University of Winchester, Hampshire

47


NOTES TO THE FINANCIAL STATEMENTS

Pension Enhancement The calculation of the cost of early retirement provisions charged to the Income and Expenditure Account in the year of retirement is based on the capital cost of providing enhanced pensions with allowances for future investment returns at 4% in excess of price inflation. An amount of £553,888 (2010: £554,505) is included in provisions for liabilities and charges representing the extent to which capital costs charged exceed actual payments made. The provision will be released against the cost to the University of enhanced pension entitlements over the estimated life expectancy of each relevant employee. Note 32(c) Universities Superannuation Scheme

The University participates in the University Superannuation Scheme (USS), a defined benefit scheme which is contracted out of the State Second Pension (S2P). The assets of the scheme are held in a separate fund administered by the trustee, Universities Superannuation Scheme Ltd. It is not possible to identify each institution‟s share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis and therefore, as required by FRS17 “Retirement Benefits”, the University accounts for the scheme as if it were a defined contribution scheme. As a result, the amount charged to the income and expenditure account represents the contributions payable to the scheme in respect of the accounting period. The latest triennial actuarial valuation of the scheme was at 31 March 2011 and at that date the USS had over 142,000 active members and the University had 22 active members. Note 32(d) Total pension costs (Note 6) The total pension cost for the University was: Teachers' Pension Scheme - contributions paid Local Government Pension Scheme - Service cost - RPI to CPI change Contributions to other pension schemes

2,478,461

269,003

-

Total pension cost

Note 33

305,674

Restated 2010 £ 1,209,248 940,000 (2,120,000) 239,755

2011 £ 1,232,787 940,000

Related party transactions Due to the nature of the University's operations and the composition of the Board of Governors/Trustees (being drawn from local, public and private sector organisations) transactions with the following monetary value have taken place with organisations in which the Governors may have an interest.

Barclays Bank BT Hampshire County Council John Lewis Partnership Royal Mail Southampton City College Sparsholt College University of Warwick Winchester City Council Winchester College Total

2011 £8,518 £7,663 £102,508 £0 £5,053 £65,656 £27,333 £4,165 £154,368 £75 £375,339

2010 £2,620 £22,916 £201,074 £445 £4,472 £49,449 £47,219 £7,430 £137,408 £2,401 £475,434

All transactions are conducted at arms length and in accordance with the University's financial regulations and normal procurement procedures. The University has reviewed the guidance in HEFCE Accounts Directions for 2010/11 in relation to linked (paragraph w) charities. There are no such transactions to disclose.

University of Winchester, Hampshire

48


NOTES TO THE FINANCIAL STATEMENTS

Note 34

Hardship funds

2011 ÂŁ

2010 ÂŁ

Balance at 1 August Funding Council Grant Interest earned

9,692 115,440 557 125,689

16,287 122,156 147 138,590

Disbursed to students Administration charge

(112,491) (3,463)

(125,234) (3,664)

Balance carried forward at 31 July

9,735

9,692

Funding Council hardship grants are available solely for students: the University acts only as paying agent. The grants and related disbursements are therefore excluded from the Income and Expenditure Account.

Note 35

Prior Year Adjustment In its June 2010 budget, the government announced that it intended for future increases in public sector pension schemes to be linked to changes in the consumer prices index (cpi) rather than, as previously. the retail prices index (rpi). At the date of approval of the 2010 financial statements, the Urgent Issues Task Force (UITF) was in the process of consulting widely on the accounting treatment for the change. The final abstract was issued on 17 December 2010. The University has considered the LGPS scheme rules and associated members' literature against the final abstract issued by the UITF which requires that where the change resulted from a legal or constructive obligation then it should be recognised in the income and expenditure account. As a result of this, it has reviewed the accounting treatment of the gain resulting from the change from rpi to cpi in the 2010 financial statements and has concluded that this should be recognised in the income and expenditure account rather than the statement of total recognised gains and losses. This has resulted in a prior year adjustment which has increased the reported surplus in the comparative figures by ÂŁ2,120k and reduced the recognised gains in the statement of total recognised gains and losses by the same amount.

University of Winchester, Hampshire

49

Uow financial statements 2011  
Uow financial statements 2011