Company no: 04793659 Charity no: 1098136 Canterbury Christ Church University Annual Report and Consolidated Financial Statements For the year ended 31 July 2021
CONTENTS Page Directors and Advisers Vice Chancellorfs Introduction The Strateglc Report Public Benefit Statement 22 Statement of Primary Responsibilities of the Universltws Governing Body 25 Statement of Corporate Governance 28 Modern Slavery and Human Trafficking 34 Statement of Internal Control 35 Independent Auditorfs Report to the Governing Body 37 Statement of Princlpal Accounting Policies 41 Consolidated and University Statement of Comprehensive Income and Expenditure for the year ended 31st July 2021 47 Consolidated Statement of Changes in Resee5 for year ended 31stJuly 2021 48 Consolidated and University Statement of Financial Position as at 31st July 2021 49 Consolidated Cash Flow Statement for the year ended 31st July 2021 50 Notes to the Financial Statements 51
DIRECTORS AND ADVISERS Dirertors In place for the year to 31 July 2021 and up to the date of slgning the financlal statements: Ms N Ahmed Right Revd R Hudson-wilkln Mrs S Appleby Sir W l R johnston (Deputy Pro-chancellorl Ms l Amiitt (Prrthancellor from l August 20211 Mrs P Jones Mr D Bichener (from l Au8USt 20211 Mr F Martin IPro-Chan¢ellorl Ireslgned 31 July 20211 Ms C Nolan Iresigned 31Juty 20211 Mf S Brown Mr S Cav (from l August 20211 Ms M Peachey Iresi8ned 31 July 20211 Prolessor G Dewhurst (from l August 20211 r Q Roper Ire518ned 30 October 20201 DrA Eyden Mr C Steven5 (from l Au8USt 20211 Mrj Faber Iresisned 31 July 20211 Revd R Steven59n Mr P Fletcher Professor R Thirunamachandran (Vice- Chanttllor and Principall Dr K Fox (from l August 20211 M5 R Thomson (resigned 30June 20211 Mr R Higgins Ifmm l August 20211 Clèrk to the Governing Body and Uni%*rslty Sollcltor Ms A Sear Mrs l Harding IndependentAuditor Mazars Statutory Auditor 6 Sutton Plaza, Sutton Court Road, Sutton, Surrey SMI 4FS Internal Auditor KPMG LLP IS Canada Square Canary Wharf London E14 SGL Registèred office- Parent and Subsidiary Canterbury Christ Church University CIO Governance and Legal SeNices Dept. Rochester House St George's Place Canterbury Kent CTI IUT Prlncipal Bankers Lloyds Bank PLC 2 City Place Beehive Rin8 Road Gaiwick West Sussex RH6 OPA National Westminsler Bank PLC 9th Flogr 250 Bishopsgate London EC2M 4AA Reglstered Company and Charlty number 04793659 re8lStered in England and Wales ReBlStered charity number 1098136
VICE CHANCELLOWS INTRODUCTION l am pleased to Sntroduce thefinancial statements forCanterburyChri5t Church Unlversity forthe academicyear 2020121. Thesestatements include the statutory reports thatset out thefinancial perforrnanceof the UnNersity- They a150 provide an opportunity for us te reflect on the achievements ond challenges over the same period. The UnNersity hag a clea¥ purpose to transfom? live5 throu8h the provision of higher education teachin& research antj knowledge exchange. l am proud of the way in which this pijrpose has remained at the heart of all that we do, notwithstanding the difficulties that all parts of the world a encountering as a result of the Covid pandemic. The pandemic has affected the institution in many ways and we have endeayoured to maintain at all time5 our commitment to our student5, Staff and stakeholders ensuring that learning and teachin& research and Univeryity operations have continued to a high standard throughout a challengin8 year for us all. It is though important to acknowledge that this has been a particularly challenging period for students and th15 has been refjetted in the feedback from students In the National Student Survey. The leadership of the University over the past two years has been signffjicantly driven by the need to lead u5 through these trme5 which has posed unique challenges not experienced in our lifetime. This has required siliente. adaptability and flexibility from all University Staff. That we have continued to deliver a blended model of teaching, continued to undertake world leading research as well a5 providing Services online is testament to the collegiality and values of our staff. Unfortunately, one of thÈ impacts of the pandemic was the financial effect on our budget which meant that a number of cost reduction measurES had to be put in place to ensure a sustainable position. This included number ol staff having to undertake short time working during the year wlth a commensurate 20% reduction in pay. Other staff hail to forego promotion and pay progression through the pay scales and the sector more generally determined that no cost of livin8 increase would be possible for the year. At Canterbvry Christ Church UnNersity, working closely with the UCU and Unite trade unipns, agreement was reached with all affected staff for the implementstion of these measures which affected staff pay from September 2020 through to March 2021. 1 am grateful that the Universlty staff responded in such a positSve and collegiate way to this unique ch8llen8e of our time. It 15 pleasing to report that, throu8h these measures, the University has been able to perform slightly betterthan its original budget and financial provision of £1.5m has been made within the financial statements to enable staff recognition payment to be made durin8 2021/2022. Of further concern has been the need to ensure that the University has been open for students and other customers when 8overnment re8ulations 311ow and ensuring the health and safety of stsff, students and visitors on our campuses. Where possible, teachihg has been delivered in face to face settin8S to eligible students and the range of measures has enabled a high quality experience for our students on campus. For those students who were not permitted by government regulations to attend. the experiente has been substantially different but invE5trnent in new tethnologies and learning and teaching online has enabled a continuation of a high quality experience. l am eKtremely grateful to all academic learnin8 and teaching staff who hève worked so hard to revisit teaching resources anrl make these available in innovative and interactive way5 for the benefit of our students. Our value5 and team workin8 have been essential and what has been delivered is remarkable and stsff across the University must take credit for this. Having acknowledged and recognised this, l am though delighted to be preparing this report at a time when we are able to welcome our students back onto camptss and providing all University services in a safe and secure environment.
VICE CHANCELLOR'S INTRODUCTION {CONTINUED) As indicated elsewhere in the financial statements, the Llniversity (like many other institutions) was affetted in its financial planning by the impacts of the pandemic. This entailed revi51ting with the tr40 lenders of funding (Lloyds and Natwest banks) the Univeity'S loan aryan8emernts and assotiated covenants. The new arrangements were a8reed in April 2021 and rellect a 5U51ainable position for the Institution going forward. DespSte the challenges of the pandemic and Brexit, in the autumn of 2020, the Univèrsity wa5 able to meet Its student recruitment tar8ets lor undergraduates and postgraduates includlng the hlghest ever recruitment of international students. During the year, we successfully completed the works on wr new building forscience, Technolo, En8ineerin& Health and Medicine ISTEHMI. This has been named the Verèna Holmes building as tribute to thè first woman member elected to the Institution of Methanital Engineers and the Institution of Locomotive Engineers. Bom in Ashford in Kent, she was a trail blazerforwomen in the industry as ar8uablythe firstwoman sn the UK to have a full time career as professional mechanical en8ineer. The facilities in thi5 building are 5tste of the art to support new programmes in En8ineerin8 along with the rèlocation of other Science and technology basèd prograrnme5. enablin8 further development of these strategically important subject areas. The bullding also houses the anatomy learnin8 centre for the Kent & Medway Medical School which we have jointly developed with the Univer51ty of Kent. With support from the health, local and re8ional economyi including the South East Local Enterprlse Partnership. these new facilities put the University ai the heart of economic and business development for the region. Additionally, the huge success of the Medical School in its first year has received 5tron8 levels of philanthropic support reco8ni2in8 the acute need for more medScal professionals to join the workforce within Kent and Medwav. We tontinue to operate in a highly competltive student crUitMent market. Set against an already challenging year financially with a planned for and managed financial dèfici¢ the impact of the loss ot flnancial intome due to Covid-19 led to further efficiency savings and workin8 practices being implemented. These delivered a year end operating deficit of £3.2 million. More widely. the unNersity Sector continues to operate in an environmÈnt of uncertainty and pressure. includin8 new Government polieies.. impending Spendin8 Review,. a possible Government vision statement for High Education.. the LIK Research and Development Roadmap,. and the planned Further Education White paper. Uncertainty also continues to remaln in the wider economy due to Brexit. Against this national backdrop. we continue to attract students from aeros5 the UK and globally las part of developing our intemational studentmarket and partnerships), who valuè the outstanding university experien that we offer. including first clas5 teachin& opportunlties for workplace and voluntary opportunitie5, and welcoming community. Our University was placed in the top 10 forgraduates in work, among large multi-faculty UK univer51ties. in the HESA.. Graduate Outcomes SuNey 2020. Nearly two thirds of Ch¥ist Church graduate5 are in highly skilled 8raduate-level employment 15 months after graduatin& 3% higher than the national average. During the year we made our submission to the seven yearly national assessment of research- the Research Excellence Framework IREFI. It was particularly pleasing to be able to submit substsntially150%1 more earch active stsff to the REFcompared tothe last REF in 2014. Our abilitytoattractstudentswith potential to succeed. nd the strong performance of the University. is in large part, due to the cornmltmenc expertise and knowledge c>f our staff. Christ Church retalns a strong sense of supportlll8 comrnunity and we are tommltted to w¢rkin8 in partnership with a wide-range ol extern31 organisations. cer the past year we have tontinued to forBe relatignships and bulld networks that benefit our partners. our communities and our students, through contributSon to both the regSonal economy and cultural life. Of particular importance. is that the Universlty has prtsactively contributed to leadin8 national and international work to addressthe Covid-19 pandemic. Thls has included health academic staff and students volunteerin8 for front line health and social care roles, as well as having contributed to diagnostic research and development tsf testing methoéology lor Covid-19. In addition, technical staff have developed and prepared critical PPE equipmentfor ourlocal health tsu5ts. and extensive volunteering has taken place with charitie5 Within our local community.
VICE CHANCELLOR'S INTRODucfioN (CONTINUED) The University has continued to listen ané respond to its staff voice to protect colleagues, wellbeing in a uniquely difficult environment. Through regular pulse surveys, support has been provided that has included the provision of Covid-19 online soUrCeS and development, confidential support, and online professlonal developrnent. We have worked elosely with the COgnISed trade unions on a range of matters to protert the future of the Universlty, and I would like to thank our trade union representatives for their hard work and collaborative approach. We continue to work in close partnership. We also value our strong and collaborative parts)ership with the Students, Union in a wide-ran8e of areas for the benefit of all our students. An area of collaborative working of which to be proud is the Closing Our Gap strategic priorlty work, through which we are workin8 to reducethe attainment gap between white students and Black and Minority Ethnic IBAMEI students through our inclusive curriculum. academic re5e¥reh and the enga8ement opportunities that are available to students, staff nd our wlder academic community. In presentin8 the financial results for the 202012021 academic year, I want to again thank all members of the Canterbury Christ Church Community Istsff, students, governors. alumni, partners and stskeholdersl for how we have been able to work together to address the unique challenge5 over the past 18 months. I belleve that we have successfully navigated our way through these challenges in a way that brings confldence for the SU5tsinability of the institution, not just as we embark upon our diamond jubilee year celebrations in 2022 but also for future generations of students and the wiéer community. Professor R Thirunamachandrdn Vi¢e£hancellor and Principal
THE STRATEGIC REPORT Dlrectors, Report The disclosure requlrements forthe D1ctorS. report can be found in the Strate8ic Report on pa8es 5 to 19 and form part of thi5 report by cross reference. I present this report on behalf of all named directors (see pa8e 11 In order to meet the requirements of the Cornpanies Act 2006. Scope of Flnanclal Statements The Financial Ststements for the year ended 31 July 2021 have been pPared to comply with the Statement of Retommended Practice ISORPI Aciounting for Further and Higher Education and applicable accountin8 standards in the UK and in line with regulatory advice in the fomi ol the Actounts Direction from the Office for Students (Ofs 2019.411. The Unlversrfcy is based in the UK and operates as both a company re8iStered in England nd Wales and a re8iStered charity. Subsidiary Company The Univer51ty holds an inve5tmentln a subsidiary company, Medco ICCCUI Lirnited. This Is a companyregistered In England and Wales which operates under a franchise arrangement with Warwick L)niver5ity Enterprises mited. The subsidiary company is in a VAT 8roup with the parent company. The subsidiary companvs results have been con501idated with the parent company in these flnanclal statements. Artlvltle5 and Oblectives The principal activ5ties and objectives of Canterbury Christ Chur¢h University are conterned with the provision of higher education teachin& research and knowledge exchange. To support these objective5, the University undertakes other activities, including the provision ol accommodation. catering and conference SerVis. Mlssion Inspired by itschurch of England foundation. the UniversitWs misslon isto pursue excellence in highereducation.. transforming individuals, creating and dis5eminatin8 knowledge. enrichin8 communities and buildin8 a sustainable future. The Univer51ty ha5 a Strategic framework to provide measurable objettives to help achieve the mission and put Shared values into practice. The framework was developed following a process of consultation led by the Vice- Chantellor and the senior manaBernentteam. This involved en8a8em¢nt with staff and studentsfrom across the University as well as external partners. A simple one pa8e framework was established that sets out what the Unlvèrsity wants to achieve over the next five years. The four Strategic aims are clearly identified in the framework and underpinned by a Set of strate8Ses and cross cutting themes. The framework guides the achievement of the University's arnbitions., and the plan's aims and objectives also inform schools and departmental business plans and the personal objectives of all eollea8ues within the UniversSty. The four strategic airns were updated in 2019 and reflert the aims that will continue through to 2022.. ro provide our dlverse student body with 3 hlgh quality, holistie student experience in relation to learning, the wider experience of the university in developing global cit12ens. To maintsin and enhante a high quality, broadly based academic portfolio which builds on and further develops areas of the University Strength and potential includln8 in relation to partnerships. To extend our research, enterprise and scholarshlp of prartite to grow its contribution to intellèctual, soaal. economlc and cultural prosperity locally, regionally, nationally and internationally. To ensL¢re effective. efficient. tnnQvate and sustainèble use of the institution's resources to enable our people to delive* the University's strategic goals acros5 all our lOtiOns.
THE STRATEGIC REPORT {CONTINUEO) Finantial Strategy During the 202012021 ye3r. the University's flnancial strategy SUPPOrted major capital inYe5trnent to provide new and improved facilities on the Canterbury campus, incorporating expansion wthin the curritulum aaS of medicine. engineering and the ueative Industries. The particular aims within the financièl strategy 8re:_ Over the longer term to generate surpluses which malntain cash inflt)ws sufficient to enable delivery of the University's Strategic objectives and prgvide institutional 5UStainability. To maintain liquidity and borrowing at sustalnable levels. ro grow and diversify income streams. To ensure value for money in all University activities. To ensure that the consideration and evaluation of risk 15 undertaken a5 part of the institution's business planning. To malntain effectwe treasury rnanagement. These aims are underpinned by particular obfjecti over the medium term to ensure that the University remain5 financially sustainable and is well positioned for further expansion over the coming years. Sumrnary Resultsfor thè Year The consolidated result5 for the University for the year ended 31 July 2021 are summarised, as follows.. 2021 £'ooo 2020 lftcome 152.126 119,688 Expendlture 141,196 126.643 SurplusllDe*icitl before ProfitllLos51 on disposal of assets and Smpalrment 10.930 16,9551 The particular areas to highlight from the consolidated financial results are.. An increase in total incorne of 27.10% from E120m to £152m An In£aSe in expenditure of 11.49% to £141m A charBe for the year of £6.775m12020.. £4.407ml for notional interest and stsff service costs within the Local Government Pension Scheme ILGPSI Capital additions ol £10.7rn12020.. E41.2ml An LGPS pensions deficit of £76.3m12019.. £67.8rn1
THE sfRATEGIC REPORT {CONTINUEDI The University rèturrted a reported surplu5 of 7.3% of total income. Thls is compared to the surplu5lldeficitl ported In prev¢ou5 years, as follows.. Reported surplus/(deficit) after depreciation and before tax- £m 10.9 -Ll 2017 2018 2019 2020 2021 Performance In yearwas materially impacted by Covid, dUcIng income streams fora number of areas including the financial con5equÈnce of the Universi$ decision to refund students their remaining accommodation tharges when lockdown was announced. The Instltution was forecasting a defiLit for the year of approximatelv £3.1m. The Universty took measures to address the financial p05ition includlng controlling costs and staff working on a Short Thme basis for part of the year. reducing hours and pay. The opèrating performance includes adjustments required by FRS 102 of which the most Sl8nificant are the prudent non-cash adjustments for future potential penslons. costs and the deferral of major cap1 8rants, receivEd for the ven3 Holmes building. The building was completed and opened in year, trig8ering the release of the grants of £20m into income. The underlwns performance for the institution and comparison to the previous year is set out in the table bèlow. Unl¥erslty Onfy 2021 £.01 8.827 120,0071 141 L057 6.775 13.3521 2020 £'ooo 17.9761 Surplus/ldeficStl reported per Financial Statements for the year Release of deferred ¢apltal grants, received in prior years USS pension provision movement LGPS and USS pensiort Inte$t charges LGPS ch8r8es in excess of employer contribution Adjusted deficit 14501 416 4.007 14,0031 The adjusted deficit of £3.352m represents 2.2% of total income.
THE STRATEGIC REPORT ICONTINUED) Penslon ReseThe The Univergity contributes to the Local Govemment Pension Scheme ILGPSI on behalf of all eligible staff who have elected to join the scheme. This pension fund is a defined benefit scheme and a5 its assets and liabilities can be separately identiTie(J by the scheme's actuary, these are reported within the financial statements. The Unwerslty's share of the deficit in the scheme increased by f8.385m to £76.229m as per Note 2312020.. increased by £46.596m to £67.844ml. The pension reseNe is shown Separately in the Balance Sheet (Statement of Financial Position). This reflects the level at which the scheme assets fail to cover the present value of student Numbers The University reported 16,350 stuilents in prior year returns, maintsining a steady level of students acr055 all of its main funding streams, notwithstanding the competltlve challenge. The institution continues to dNer5ify its curriculum provision with the completion of a new building and facilities to accommodate a dedicated School of En8ineering and a Medical School, the latter of which 15 a joint initiatlve with the University of Kent. The 8rowth lor future years builds on this solid base and is expected to retum an increase in student numbers a5 these important initiatives are further developed, working with local employers and the NHS to meet the rseetls of the Kent. Medway and South-East giOn. C3pit?I Projects The University has a 10 Veèr capital investment plan whlch specifies the necessary developments in buildings, technology and other capital scheme5. This plan supports the overall Estates and IT Strategies which indude further impiovements to student facilities, Th 5VStems and infrastructure. Additionally, the supported sthemes are carefulty tonsrdered in grder that they may maximise the cornmunity impatt and support environmental sustainability initiatives. The investment plan is Set in the context of the strategic plan to enhance SignSficant and imprc¢ve the quality of facilities lor its students as well as supportin8 new technolo8ies, enabling further growth and expansion of the institution's provision of edUtiOn. The Universlty has Invested £65m in creating dedicaied specialist teachin8 facilities for the new curriculum for the school of Engineering and the Kent and Medway Medical School. The building opened to students in January 2021 after si8nificant expenditure in the fit out of equipment and specialist13boratories and other facilities. Capital Investment 41.2 30.2 17.4 14.1 10.7 IAI .4.5111 2D17 2018 2019 2020 2021 Y••r•nded
THE STRATEGIC REPORT (CONTINUED) The University continues to benefit from the investment in carbon saving measures as supported by thefunding received in prior years of interest free loans frorn SALIX Finance. Payment of Credtti)rs The payment policy of the University is that payments are made in accordance with those terms and conditlons agreed between the institution and its suppliers. Where no speciflc conditions exist, supplier5 are paid within 30 days of the receipt of invoice. The payment performance of the University is available to the public at: htt www. ov.uk chÈck-whÈn-businesses- -invoices In theyear 202012021 the University met the target to payvalid and undisputed involces wlthin 30 days for 64% of all invoiees received12020'. 82%1. Cash Flow Canterbury Christ Church University has continued to maintain appropriate cash balances genèrated through operations to support the Significant capital investment. Theeash posltion increased by£2.1rn atthe end of the year12020.. £8.9m increa5el. The net cash from operating activities and reserves has been used to fund the on8oin8 capital investment in year for the establishment of new building for the d*livery of programmes within En8ineerin8, Medicine and other STEM subjects. Cash Balance 37.7 37.5 IJ I:.1 30.7 28.6 £m 19.6 1017 2018 2019 2021 Yeirendeil Long Term Loans as a percenta of Incom• The University anticipates the need to manage its loan financing arran8ements in a careful and rneasurEd manner, recognising that conditions can chan8e substantially over the pèriod of a long term loan. The Govemin8 Body requires that Interest rate exposure is managed by means of a combination of variable and flxed rate borrowing. The Revofving Credit Facility IRCFI from Uoyds and Natwest banks was accessed during the Veèr to help with cash liquidity, and repaid when no longer required. At the end of the financial year total funds drawn from this facility was £Ylm.12020.. £38m drawn). The RCF converts to a long term loan. with capital repayments cornrnenting in May 2023. The balance of undrawn funds on the facility remains a commitment at the year end, with non-utilisation char8es being incurred. io
THE STRATEGIC REPORT ICONTINUEDI The level of long term borrowing has dUCed in the year, from £75.056m in 2020 to £68.424m in 2021. After the year end, in August 2021. the University repaid a further £6m to the RCF, taking the balance drawn to£28m. Long Term Loans as a Percentage of Income 75 63 60 45 45 32 51 30 15 2017 2018 2019 2020 1021 Net debt rePsentS the total out5tandin8 debt as at the year end, minu5 cash held at the bank. The de¢Tease in net debt in 2021 represents an Increase in cash held and the repayment of loan finance in year. Net Debt in £'m 37.7 7a &9 2017 2018 2019 1020 2021 li
THE STRATEGIC REPORT {CONTINUED) Disabled Employees Applications for employment by disabled persons are always fully tonsidered. beèring in mind the abilities of the applitant concerned. In the event of members of staff becomin8 disabled. every effort is made to ensure that their employment wfth the University continues and that appropriate training is arranged. It IS the policy of the institution that the trainin& career development and promotion of disabled persons should, as far as possible, be identic81 to that of other employee5. Post Balance Sheet E¥ents The USS scheme valuation for 2020 concluded aftei Ihe end of the 2021 financial year and therefore, thi5 15 a non-adjusting event. The provision for liabllities in the financlal statements for the year ended 31 July 2021 are based on the previousvaluation of the scheme for 2018. The impa¢t of the 2020valuation on the provislon held for the USS is a ptstential increase in the liabillty of £958,114 to £1,536,186. Sectlon 172 Statement The Governing Body welcomes the new reportin8 requirement as an opportunity tts Èxplain how stakeholder partiopation and feedba¢k has informed and shaped decisions and how the University has reacted to feedback in the strategy and plans it has developed. The Governing Body sees the main key stakeholders as being otjr students, our employees, our partners and supplier5 who work with us to delwerthe aims of the University and the wider society. cornmunity and environment that support our sustainability. The Governin8 Body has set out In the Ststement of Corporate Governance the structure of tommittees that aid decision makin8 and how the Bovernors work to achieve their responsibilitses. This includes the maintenance of a reputation for high stsndards of busine55 conduct with suppliers, partners and with students. Employee Engagement The Governors and Management place considerable value on the involvement of its employees in deasion making as the University con5ider5 the employees. interests as key to the success of the or8anisation. Therefore, the Universlty undertakes to keep the staff informed on all rnatter5 affecting them, and the various fattors affecting the performartte of the institutfjon and its subsidlary company. This is achieved through formal and infomal meetings, the sharin8 of the staff newsletter. the 'lm Touch. mag32ine and by publishing the annual financial statements on the UnNersiVs website. Employee representatives are consulted regularly on a wide range of matter5 affettin8 their current and fvture interests. In Au8USt 2020 the University held its, second annual Oosing Our Gap Café event for colleagues and students. The event provided an opportunity for exploration of how learnin8 and teaching strategies. profèssional prattite and research intersect in effort5 to build a more racially inclusive University. There was a specific locus on inclusivity of the student experience for first year students, particularfy black students. And this event included the launch of the new Q95ing our Gap.. Strategic Framework. Thls frarnework is an important communication tool fortrackin8 and rnonitoiin8 progress. The framework tsutlinés the Universlty-wide commitment to creatin8 a racially diverse and inclusive learning and workin8 environment, reducing the attainment gap and creabng a Sustsinable fvture for all. In taking this framework forward the University reco8nises the need to take an institutional approach towards tacklin8 racial inequalities at Canterbury Christchurch and the widertommunity. The framework was developed through consultations with staff and students across the institution and incorporates the Learning and Teaching Strate8y, Access and Participation Plan commitments and best practi cross the sertor. The University has en8a8ed with staff and made use of feedback to inform dedslons in the year. In 2020 tsvo PULSE staff surveys We undertaken to provide staff with the opportunity to give feedback lirstly on how they were finding their new working arrangements during lockdown, and their perspective on plans to retum to the tampus. The findin8s of the survey inforrned the transition plan for staff returning to the campus in September 12
THE STRATEGIC REPORT (CONTINUED) 2020 and helped to shape the arrangements for remote workin8. There have been training sessions to ensure staff retum safely and help them rneet social di5tsncing requirements. There has also been training and support for staff working remotely. A further PULSE survey was completed in November 2020 and thi5 has helped to infom) the future use of the physical estate, and led to the development OF a hybrid workin8 pilot for a number of professional services teams. As a resultof staff feedback and more Specific individu31 casestudles on the longer tèrm effect5 gf COVID-19 the Unwersity established the Long COVID Support Network. Thi5 Broup provides help to colleagues suffering from the lon8er-term symptoms of COVID and allow5 them to Share experiences and exchange information on the advice and support that 15 available. Projert 2020-21 was created to prepare the University for the SucS*1 delivery of the 2020-21 academic year. ncluding the re-opening of campuse5 and facilities, and development of ways in which we bring staff and students physlcally back together in a safe environment. A set of overarching principles were developed to inform decision making. These were supported by set5 of Educational Principles and Research And Enterprise Principles. The Projett's last meeting wa5 on 23 lune 2021, with the Senior Management Team ISMTI taking leadership responsibility for Covid-19 plannin8 from this date. Buslness Relatlonshlps- Partners and Suppllers The University recognlses the strategic importance of working with suppliers. many of whorn are local businesses, to provide a range of services and goods to support the delivery of high class education. To 5UPPOrt this business relationship, the University engages with supplier5 to consider improvements to the contractin& ordering, goods receipting and payment processe5. Ourin8 202012021 a nurnber of significant contracts were awarded and renewed through open and negotiated tender procedures. To strearnline the process both for the University and the supplier, the use of e5tabli5hed procurement frameworks was adopted where possible. The strate8ic development of new collaborative partnerships has been a focus for the Unlversity. leading to the successful estsblr5hment of two Significant UK based partners. 5ociÈty and Communlty Serving the local cornrnunity 15 a high priority for the University. Durin8 lock down the University's close link5 to the local comrnunity came to the fore, wlth staff and volunteers providing support to local vulnerable people who were self-isolating. The UnSversitrfs health care professiona15, Staff and students, volunteered to work in the NHS in local hospltals and Tru5t5 and the University donated essential PPE to the NH5. A local COVID-19 test centre as constructed on one of the carnpus car parks to provide testing facilities not on to staff and students, but also to the wider community via the NHS bookin8 System. The Universlt¢5 Governors, SArtT and staff recognise the positive impact that music can have on the well being of individua15. having completed considerable research into this subject. It was therefore disappolntlng that musical performances and events could not be offered to the wider comrnunity in the 5t Gregory's Centre for Music, a5 in previou5 years, due to COVID-19 restrirtions. In response to this the decision was taken to strearn the performance on line as part of the Conterbury Festival in October 2020. 13
THE STRATEGIC REPORT (CONTINUED) En¥ironmènt The University acknowled8e5 the risk presented by climate change and recognlsesthls Sn the compllance section of the risk appetite. The environment is a key fartor in the fvture sustaihability of the University atsd as suth. is a key stakèholder. The University has taken action to address risk to the environment by participating in the aecord established by the United Nations. To take the action forward the Univer5ity'5 Graduate College and Researth OÈvÈlopmÈnt teams are mappin8 research to the UN'S SDGS la set of goals and targets to stimulate action in areas of critical importance for humanity and the planet) to their activities. Thekndemy forsustainable FutU$waS fomially agreed by Univer51tWs Senior ManagernentTeam in 2020 and was developed in response to the need to build momentum. showcase artivity and demonstrate leadership for 5UStainability. It builds upon our existin8 approach (the Futures Initiative) whilst acknowled8in8 the need to move beyond an 'initiatwe', and extend the acadèmic focus. particulady in relatlon to research and enterprise attivity. The institutional C08n1ti0n ol the Global Climate Emergency In 2020 empha5ises the signifi¢an¢e of bein8 able to'gofurther fasterf. partitulady in relation to.. action-oriented clirnate thange research and skills creation; reachin8 net-zero by 2030 or 2050 at the very latest increasin8 the delivery of environmental and sustainability education across ¢urriculum, campus and comrnunity outrea¢h piogrammes. A strategy for the Academy will be developed for the next Academic year. In Concordan with the Unlver5ity Strats8i¢ Framework. However, the two key prioritie5 are.. Launch the Academy for Sustainable Futures, building profile for Education, Research and Advocacy, that supports the Universiws key prioritie5. Drive the creation and implementation of the University's Climate Erner8ency Strategy to make a meaningful contribution to the UK'S carbon reduction tarEets and strategy through developSn8 and providing evidence and advocaLry for systems change, educating our students to be the advocates of the future, and exernplifying 5ustsinable prartices through our approaeh to reducin8 our own carbon emi5S10nS. The annual report frorn the Academy for sustainable Futures for 202012021 confirms that although the work of the academy has been impacted by the COVID-19 pandemic and Short fime Workin& some progress ha5 been made. The Acaderny has adapted and focused on areas of institution31 priority. atademit development climate and ecological emer8enues, and community engagement. The annijal reportconfirmsthatestablishedwork, through the Futures Initiative continues to support curriculum development across the UnSversity. This has been recogni5ed internally and nationally through teachin8 excellen award5. Updated QAAIAdvance HE Education for Sustainable Developmènt Guidance IESOI has been launched that will be8in to impact on benchmark statèments, providin8 a clear infrastruttural driver for embedding ESD into the curri£ulum. The Univer5itydeveloped and leads the Sustainability in Higher Edutation ISHEI conference series in partnership wlth PlymoLrth University. The fifth annual tonference The fierce urgenw of now? NaviBating Paradoxes In Sustainability Education. was due to be held on site in Canterbury durin8 May 2020. Challenged by the words of Grets Thunber& spoken at the World Eeonomic Forum in Dav05 in 2019 our aim was to provide a space to explore the role and responsibility of UniveIt4eS in a time of global crisjs 3nd to explore what it means to act as 'if our house is on fire.,. And then the Covid-19 pandemic struck and the focus we had planned took on a new relevance. Under lotkdown Conditions, the conference moved to an online format and we all found ourselve5 working in uncharterÈd territory. The conference was free to attend. and spread over 3 days with all paper presentations and workshops prgvided and available for viewSn8 in advance, workshops were delivered online, 14
THE sfRATEGIC REPORT (CONTINUED) and lively discussions and panel dlscussions created a distinctive experience for more than 170 attendees. Although challen8in8, the conference opened up unexperted opportunities for colleague5 and students from different institutions nationally and internationally to participate, increasing diversity and repositionin8 the SHE network as more Ou1ard-faclng. Carbon Reportlnq nterburychristchurch Unlverslty ICCCUI Is committed to responsible enerEY management and sustainability, which it practices ihroughout the orgaThisation, wherever it is cost effective to ijo so. CCCU demorTrstrates its commltment and the role it has to play in reducing greenhouse gas emis5ion5 through the Univer51tls Strategic Framework 2015-2022. which has sustainability at Sts heart. CCCU has developed a dedtcated 'Framework for Sustainability. which includes ener8y management and emission reduction with a low carbon 2030 vision. The or8anisation has achieved and mai#tained IS014001 accreditation lor its Environmental Management system IEMSI with a platinum Eco Campus award. In September 2020 the University opened a lar8e117,OOOm21 STEHM building Iverena Holmesl and even thou8h this building wa5 constructed to BREEAM excellent standards and contained many energy efficienry measures. includSn8 a CHP rnachine, it5 addition to the Estate has had a si8nificant negative irnpart on ener8y consumption. A5 part gf the Universitvs masterplan a number of bulldings are set for disposal during the next reporting year. which will help to offset thSs addltlonal energy usage. COVID-19 had a bi8 lrnpact on the Universlty and the way it operates as a business duringthe last reporting year. The rnajority of staff Worked From Horne IWFHI where possible, dulln8 the pandemic, with onsite teaching predominantly lirnited to the subjects wlth a practical element and in line with Government guidan. The redurtion in face-to-face teaching resulted in 8 considerably lower than normal occupaney level in student residential accommodation building5 operated bythe University. The effetts of COVID-19 and the WFH poliry t5 most evident in the Universit¢5 business mileage claims which have seen a 49% and 95% reduction on pre- COVID-19 levels over the last two reporting ye8r5. From the l October 2019 the University changed is purchasing strategy fcr electricity switchsng from a conventional fuel mix to 100% renewable fmm Ofgem èttredited onshorewind farms. Renewal electrie31 energv was continued to be purchased during the latest reportin8 year. Movin8 to a carbon neutral 8a5 Supply has also been investigated but is deem not to be financially viable at this time to 5Wltch. The cost difference between bio8as and natural gas will continue to be monitoreé. The UniveTSlty continues to purchase energy through an energy consortium, ensuring that the University's procures its energy at cornpetitive rates in challenging market conditlolls. During the reporting year energy tonsumption was predicted to be lower than normal due lo COVID-19 with staff workin8from home and lower occupancy levels in student accommodation. the Surplus ener6V that had PvIoUslY been purchased was sold back to the market. COVID-19 and a resultant lower capital I revethue budget ha5 limited ener8yreduction Investment opportLrnities over the last 12 months. During the reporting year CCCU where able to lrnplement the following energy effidencles across the orsanisation to ensure that energy consumption and a550ciated emissions are reduced.. E5tate5 rationalisation, movin8 Out of oltl ineffitiÈnt buildings to new facilities with hSgh level of insulation and smart technologles to control energy usage. Continued to Upgrade fluorescent lighting to IED, with li8htin8 control sensors. Water Con5urnption 15 an area that has been targeted over the lèst 12 months, with AMR'5 fitted to incomin8 water meter5 where practical or increased manual meter readings undertake. Usingthis data 15
THE STRATEGIC REPORT (CONTINUED) consumption can be monitored and where increases are record, this is investigated to ensure that any water loss through leaks or toilet overtlows is minimised. Flow restrictors gn showers and basin taps have a0 been investigated and trialled, wlth an airn to further roll out Installation of these devices during the next reportingyear. subject to fund5 availabillty. Ensur4n8 that BMS operating times match building occupancy pattern5. whilst ensuring ventilation conforms to guidelines ensurlng the campus is COVID secure. Further expanded and developed carbon counters. which are displayed In major buildings demonstrating its monthly emissions and comparisons Wlth the previous 12 months. Continued replacement of staff desktop tower PCS to more energy efficient laptops. which allows for more flexlble working locations. Reduced travel costs by reduction of fate to late meetings with to51eaEues and supplièrs. through the intreased availability of video conferencin8. Undertakin8 a review of all buildings 3nd their OEC'S and assoaated eneryy report5 to enable future There are further energy effitiènLy measures under consideration for Implementation In the future. SECR Annual Report Statement 2021 Srvpe l.. Combustiofi of fuel and 12.867.103 11.288.589 14% iirett TronsrtIkW} 145.873 5cope2'. ElefjJiotypur¢h¥sed ,226,065 44,629 10.697.640 .14% rotolElertrititylkWhl NOlur&lGos Itco ej recr TnJn5WrtftCO . el 2.357 2.0 14% 35 -91% S(tspe 2.. Electriotypurthased and heat and StEamerated. Lo¢otion Bosed ILB} Itco el 1,959 1.620 2.734 Morket B05ed IM81 IICO el 4.071 MJi*er8o5e 515 41 -29% OZe/mZ6 Intengty Ratio 3 0.15 Emlsslons Sources Thls report includes UK ener8y use. and the assotiated GHG èmissions, that relate to.. Actlvltles for which the Canterbury Christ Church University is responslble involvin8 the combustion of gas. gr consumption of fuel for the purposes of transport,. and The purchase of electricity by the company for its own use. including for the purpose of transport. 16
THE STRATEGIC REPORT (CONTINUED Em1551ons Factor5 A wlde range of published carbon emSsslon factors are publicly available. DEFRA emisslon fartors have been used for all emission sources as thi5 provides the rnost comprehensive list of factots available. They allow an activty to be converted into carbon dioxlde equivalent IC02el. Market based emi55ions fattor5 hBve been 59urced from each relevant 5uppIiET. Methodolosy The footprint is calculated ir> atcordènce with the Greenhouse Gas IGHGI Protocol and Environmental Reporting Guideline5'. Including streamlined energy and carbon reporting guidance. Value for Money IVfMI Value for rnoney is important in the context of the tuition fees reiVed from students and how these are utilise within the institution. The Undergraduate Fee5 graphic dernon5trates how these fund5 were applied in 201812019 based upon the Transparent Approach to Costing rrRAQ methodology data for that particularyear. Fl¢withe 201912020 UndÈr8raduate Fee wzs used at Canterbury Christ Chur¢h Univtrsity. £9,250 Total Underyraduate Fee £4.410 Teaching and Research £1,530 Estates and Facilities £1.130 Professional and Support Services £640 IT Infrastructure and Support £460 Welfare and Career5 £340 Library and Academic Skills £340 Bursarles £320 Recruitment, Outreach & Communlcations Students, Union £80 The above 15 a representation of how the 201912020 Undergraduate fee w35 Used by the University and the relative percentages are as follows.. 48% Teachlng and Research. This includes leetures. technicians, eourse admln, course materSa15 etc. 16% Estates and Facilities. Th>5 cover5 building runnin8 costs. rnèintenan, light & heat security etc. 12% Professlonal abxl Support Servlce& This will Include student registration & records, Human ResouTces. Finance. Vc's Office etc. 17
THE STRATEGIC REPORT (CONTINUED) 7% IT Infrastructure and Support Mobile cornputin& 50ftware. Subscriptions etc. wlll be Included here. 5% Re¢rultmen( Outreach & Comfflun1tiO School and College en8agemeni. widening partiapation. recruitment activity etL 5% Welfarè and Careers. This covers. Counsellin8, Chaplainry, Sports Centre and Careers. 4% L**rary and Atademic Skills. This includes b¢)oks. periodicals, electronic subscriptions. 4% Bursarles. This represents fee reduttion5 for eli8ible students. 1% Students, Unbon. This is the grant to supportth& ongoing provision of the Students, Union. Principal risks and uncertalntles The approval of risk management protesses. induding the Universi5 hi8h level risk register, and risk mana8ernent framework are dele8ated by the Governin8 Body totheAuditCommittee. which reviews identified risks on a termly basis. The processes ensure that a culture of risk management 15 embedded across the University. The university's risk management framework seeks to limit the adverse effects on the performance of the institution and the system to mana8e these risks is destribed in the Statement of intemal control. The system of intemal control is based on an on8oin8 process designeil to identify the principal risks to the athievement of sttegiC policies. airn5 and objectives., to evaluate the nature and extent of those risks,. and to manaBe them efficiently, effectively and economically. Th55 process has been in place forthe year ended 31 July 2021 and up to the date of approval of the finantial statements and accord5 Wlth the requirements of the Office for Students. The Governlng Body's review of the effeetiveness of the system of internal control is also informed by the woik of the Senior Management Team within the University, who have responsibility for the development and maintenance of the interrtèl control framework. by the work of the Internal Auditor, and by comments made by the External Auditor in their management letter. Whilst a prudent approach has been adopted to financial plannin& the University considers that there are a number of key ri5k5 to its finan¢ial health and 5U5tainabil¢ty whith are also Ilkely to be experienced In other institutions across the sector. The main risk areas and actions being taken to miti8ate them are: The ongoing impad of COVID-19 Qn the organisati¢n's capaaty and capability to deliver changes necessary to achieve business as usual given the challenges presented by the 'new normal, caused by the pandemic. including a tsmporary shift irt business Model and reliance on technolo8y to support Staff. The potential risk relating to lost income duè to the re-introduction of social distancing measures and possible further lock down QuireMents is being factored into budgets and forecasts. Actions taken to address this include the continuation of enhanced cleanin8 and hygiene measures on the campus. The potential Ios5 of income from lower levels of student recruitment pla5 pressure on pay and non pay budget5. The continued competitive environment for Higher Education. Uncertainty over government policy with regard to the settin8 of maximum tuition fees and access to Stdent loan fundin8. Uncertainty over the impact ol on80in8 COVID-19 effeds on School examinations in 2022 and howthi5 may aflect the assessment of examination grades and progression to UllNersity- 18
THE sfRATEGIC REPORT (CONTINUED) Pressure on pension5 Costs from increasing employerfs contribution rates. This is factored into pav budgets and forecasts. Potential upward inflationary pressures including utilities, costs. All of these frdttof5 have been fully taken into consideration in the Untversity's modellin8 of future years. forecasts and contingency arrangements are includeil within the institution's busines5 plan5 in order that the impact of these risks does not compromise longer terrn su5tainabilitv. Going Conr The University has succe55fully navigated the last 18 mgnths, notwithstsndin8the inevitable financial pressures arisin8 from the Covid pandemSc. The stafl cornmunity of the Universiiy has come together and fully supported cost savlngs measures includln& for many, a reduction in paid ernployrnent hour5 and forgoing promotion and progression payments. The better than buégeted financial performance in the year enabled all staff to return to their fvll contracted hour5 in March 2021. The strong performance during the ar has ¢sted a more stable financial basi5 for202V22 and future years. The Unlversity continue5 to have call upon revolving credit facilities from Lloyds PLC and Natwest which have supported investment in strong and 5UStainable neweurriculum areas within science, engineerin8 and rnedicine. The Universivs flnancSal forecasts tontinue to demonstrate that it will fully meet the bank covenants that have been agreed as part of the revolvin8 credit and pre-existing credit arrangements for the institution. The updated financial forecasts through tojuly 2022 show an improved position overthe previous budget which W85 used as the basis for forecasts throvgh to 2026127 as part of the bank approvals lor the new loan arrangements that were put in place in March 2021. This improved base 15 being used lor a projertion through to 2026127 which toAtinues to show a position whtch is flnanclally strong. Updated finaftcial projettion5 will bE formally shared with the Office lor5tudent510ts1 in January 2022 followin8 Governin8 Body approval in line with Ofs requirement5. The latest forecasts continue to provide £onfidence to the Governin8 Body over the financial 5U5tainability of the Univer51ty and confirm that the University remains a 80ing concern throu8hout 202212023 and for the foreseeable future. Dlrector< Indemnltks As permstted by the Articles of Assoc¢atlon, the Directors have the benefit of an indemnity which Ss a qualifyin8 third party indemnity provision as defined bysection 234 of the Companies Act 2006. The indernnity was in for throughout the last financial year and is currently in force. The Company also Purchased and maintained throughout the financial year Directors, and Officer5, liability insurance in respect of itself and Its, Directors and those of the 5ub5idiary company. Dlsclosure of Inforniatlon to the Auditor Each of the persons who a d5ctors at the date of approval of this report Confirms that 50 far as the direttors are aware, there is no relevant audit information las defined bysection 418 of the Companies Act 20061 of whith the ctsrnpany's èuditor is unaware, and the directors have taken all the steps that he/5he ought to have taken as a Director in order to make himselflherself aware of any relevant audit information and to establish that the company's auditor is aware of that information. 19
THE STRATEGIC REPORT (CONTINUED) Re5er¥es Policy and Key Performance Indkators IKPlsl The University seeks to retain a level of reserves to support its financial sustainability and in accordance th its strategic plan, the policy is reviewed in each academit term. The reserves position is maintsined through the achievement of surplusès in line with the institution's key performance indicators. The pensions, liability reserve, whilst rècogni5ed in the balance sheet, represents a lon8er-term liability whith doe5 not materially impact upon the short to medium term pollcy for the malntenance of a general reserve. Monthty financsal reports are produced for the Senior Management Team ISMTI and for each meeting of the Finance and Resources CommSttee of the Governin8 Body. The table below shows the consolidated performance indicator5 for the year ended 31 July 2021. compared to attual outturn for the previous year. Targets for each of these KPIS a prepared and reported to management based on the approved annual budget. As part of the mid-year f¢reca5ting process, the financial position is reviewed, and a ViSed budget is produced in year. The tsrget KPIS are amended to reflect the revised budget position to be reported through to the end ol the year. Key Pèrformante Indicators- artual outturn Reported SurplusllDeficitl as a % of income Adjusted Deficit as a % of Sncome Unrestricted reserve as a % of total income Extemal borrowing as a % of total income Cuffent assetll¢urrent liability) ratio Net liquidity day5 2021 2020 7.18 12.21 32.5 15.811 12.641 34.3 62.7 10.81 The reported surplus forthe year ended 31 July 2021 rellerts capital grants leaSed from creditors into income of £21m. Urnrestritted reserves are reported net of the LGPS pensions liability. An increase 01 £8.385m in the pensions provision in the year has hèd a negative impact on unrestricted reserves as a percentage of income. External borrowing reduced in year with the repayment of Sums drawn from the Aevofving Credit Facility loan rinance to support the construction of the new sfEHM teachin8 facility. Net liquidity days remain faidy level, confirming the University has a suffident level of ¢a5h held to meet out80ing expenses. The KP15 are included in the monthly financial reports and are monitored and reviewed by the Senlor ManagementTeam. They are a150 considered and assessed by the Finance and Resources committee as part of the review of financial perfom)ance. The Unlversitys operating performance has remained within the parameters of the approved KPIS. although the achievement of income growth remains a risk going forward. When income falls below expectstions the adjustments to the c05t base required may not be immediately alisable, thus generating a shortterm in year impact on certain KPI measures. Finan¢ial Risk Mana8ement The Universtty retognises that all treasury mana8ement activities involve risk and potential reward. The University's policy on borrowin8 IS to minimise Cost whilè maintsining the stsbility of its linanclal positlon bv sound debt rnana8emer)t techniqu. The objective for lendin8 purposes is to achieve the best possible return while rninimtsinB risk. The University does not borrowor deposit funds denominated in foreign currencies, which limits the exposure to currency risk. The Director of Finance and Chief Financial Officer has the authority to implement the University's 5trate8y lor depositing surplus funds and managing the cash flow of the Unlversity. In exercisin8 these powers he ha5 regard to the perceived credit risk assoclated with the approved organi5ations 20
THE STRATEGIC REPORT {CONTINUEDI with which funds may be dep051ted or invested,. also Ihe effect of possible changes in interest rate5 on the tost of borrowing and the return from investing and the need to maintaln adequate liquid funds to meet the Universit(s obligations. Outlook Notwith5tandin8 the fact that there have been recruitment challenges in September 2021 on some University prograrnmes, particularly impacted by COVID-19 and the exceptional arrangements for teacher assessed Erades for A Level students in the summer of 2021, the University has still recruited significantly above target for its 202112022 student cohort. With the opportunityto now showcase rnore effectivelythE significant investments in buildings and facilities for the development of science, engineerin& healthcare and medicine and the ability to re-engage with outreach actlvitle5, the University is tonfident in Its abllity to contlnue to grow its student nurnbers. The uniVeIty is preparing Its new strategic plan from 202212023 which will contlnue to demonstrate the confidence and innovation for which the University has been recognised since its foundation 60 years ago and to meet the need5 01 stvdents, bu5ine5s and Stakeholders, movin8 torward wSth confidence as together we emerge from the worst effects of ihe Covid pandemic. Professor R Thlrunamachandran VI Chancellor and Principal Date: 23.11.Zl 21
PUBLIC BENEFIT STATEMENT Canterbury Christ Church University 15 a re815te charity under the Charities Act 2011. The objÈtts of the University are the advancement of education, learning and research for the benefit of the public includln& in particular. the conduct and development of the University known as C3nterbury Christ Church Universtty forthe training of person5 as teachers and the provision of other higher or further educatlon. In settlng the UnlversiV5 objertives. and planning its artivities, the 4overnors, as charity trustees, have given Careful Consideration to the Charity Commission's public benefit guidance. The Universivs Strategic Framework 2015 to 2022 Ihttps.'/lcccu.canterbury.ac.uk/strategit- framework/docs/framewoik-refresh/Strategic-Framework-2015-2022.pdfl sets out its mission, purpose and visiort.. Ourmission Inspiredbyour Church of Englondfoundotion, the univers1t$ mission is to pursue excellence in hwher educt7tion.- tronsfvrming individuals, creotlng knowledge. enriching communities ond building 0 sustainoblefuture. Ourputpose Wegre5tronglycommitedto tr17nsforminqindividut715, creating knowledge, enrichin9 communitiesond building o successful ondsu5tainoblefvtvrefor the South Eu5t region und beyond. We wont to do more thon provide our students with o high-quolAty edu¢otion ond excellent student experience. We olso WG¢nt to work in pt7rtnership with ourstudents to ensure they becomÈ enterprisin professionol graduates with on understandin9 of the chtllleftgesfrcing society qndour world, ond hove the skills. tommitmentondpersonol quulitie5 needed to help oddress them. Ourvisio We will be recognised 05 G¢ leader in educotion, reset7rch and enterprise thot support5 the South Eost region'5growth ondeconomy, building on ourheritoge tJs o globallyconnerted, dynomicand innovotive Universityi dellvering on excellent und Inclusive experience thot provides ertterprisin9. prgffe55ionol 9roduutes. The Universitys mission. purpose and vision are underpinned by four strategic aims.. Student Experience - to provide our diverse student body with high-quality holistit studertt experlentes in relats'on tts learning and the widerexperience of university in developing global citizens. Education to maintain and enhance a high-quality, broadly based academic portlolio which builds on and further develops areas of University Streneth and potential irttluding in relation to partnerships. Research and Entèrprise-to extend our research. enterprise and Scholarship of practiceto grow its contribution to intellectual. social, economic. and cultural prosperity locally. re8ion311y, nationally and internationally. Enablin8 Services- to ensure effective, efficient, innovative and SU5tsinablE usè of the institution's resources to enable our people deliver the University's strategic goals acr05s all our Iation 22
PUBLIC BENEFIT STATEMENT {CONTINUED) Each aim has strategic objectives.. The Strate8ic Framework is underplnned by a set of clearly defined goals and supported by key str3te8ies.' People Strategy Finance Strate8Y Estate and Facilities Strate8Y Information Technology Strategv Learning and Teaching Strategy and Slrategi¢ Plan for Researth and Enterprise. The enabling strate8ies, along with the Strategic Framework goals. inform the business plans of departmenis and schoo15 acros5 the Uner$1ty. To demonstrate progress towards the achievernent of the Universi5 strategic aims. a set of KPIS has been e5tabli5hed. Illustratlons of how the University has fulfllled its charitable public benefit purposes in 2020121 incltjde.. 13340 registered under8raduate and p95t8raduate Students. Kent and Medway Medical School opened to its first intske of 107 registered students. Yealth and social care students deployed with NHS to support Covid 19 pandemlc response. Delivered teacher trainlng wlth over 570 schools and colleges. The Faculty of Education received a grant of £99,0 from UKRI in response to a tall for 'ideas which address Covid-19' The winning research bid proposed to identify Strategies to boost prirnary sciente and mitigate some of the social, heath. environmental, economic and cultura5 impacts of the pandemic. 473 of its best research outputs were submitted to the 2021 Research Excellence Framework. The research benefitted multiple mlllions of people: 1.1 mllllon young people became newly physic81ty active.. 1.3 million young people benefitted from new curricula in Church ol England schools,. 1.5 mlllSon healthcare professiona15 benefitted Irorn new clinical guidelines and trainin8,' and 1.7 milllon babies 38ed 0-2 reived better and more developmentsl care. Supported new guldance for flrearms control throughout En8land; new legislation to combat organ trafficking in U8anda,' and the worldwide inclusion of athletes with intellectual Disabilities in the Poralympic Games and other elite global sporting competitions. Many of the Unlversitvs newly awarded 36 Research and Knowled8e Exchange projects in 202012021 aTe directly linked to the lon8er-term beneflt of communitSes.. large sc31e funding was secured with range of partners to form Excellence Wubs in Canterbury, Folkestone, and Maidstone land Southend and Hastingsl to improve access to local and regional research and inntrvation support for the emergin8 5CTeen industry (including the Film and Games sector). The project will provide wgrk and other opportunities for staff. graduates and postgraduate students to contribute to re8ional recovery and 8rowth. The Unwersiws eommitment to global engagement has delivered research that has: Unearthed Silenced voice5 of the Spanish C¥vil War, supported communities in 68 towns and village5 to challenge stste-sponsored narrative5 and to re-captu memories of the 144,OCM) 'disappeared' victims of oppression in that period. o Supported investment regulation in Afrita, developed a new arbitration code for treaty negotiation and, in Uganda, informin8 legislation to cornb8t organ trèffitking. 23
PUBUC BENEFIT STATEMENT ICONTINUEDI Developed new eligibility protocols that facilitated the inclusion of athletes with Intellectual Disabilities irt the Paralympic Games and other elite global sporting competitions. Developed research partnerships in Palestine and India under the University's Glob31 Challenges Research Funding strate8y. The Univèrsity continues to init13te new research and knowledge partnerships locally and regionally. Working Wlth Broadstoirs Folk Week, largest arts/music event in Thanet, to evaluate the motlvatlons of the 200+ volunteer worklor¢e. The Sidney De Haan Centre 5s continuing its partnership with'Lwe Music NOVF on the'choir in Every Care Home. Project. to promote the value of 8roup sin8ing in care setting5 across the UK.) The Unlversity Ss continuing with many of its projerts with and for regional partner, including the Seaside Evaluation, Visit KentAccommodation Study- Part 2.. the sfEM Ambassador Hub, Suicide Safer Universitles 19120. Nurse Associate Programme. In 202012021, 261 open access outputswere added to the UniversiWs research output rÈpository. Over the course of the year, a number of new agreements were siBned with joumal publishers to expand early and free access to our pUblItIOn outputs. with the result of 29 additional articles made availablè. 81% of graduates of the University were in work or employment 15 months after completing their courses. 68% of CCCU full-time. first-degree leavers in employment were in high-skilled or graduate- level jobs, in line with sector169%1. In 2020121. the newly formed Applied Research Collaboration Kent, Surreyand Sussex (ARC KSSI started work, which aims to improve regional health outcornes, provision and care throu8h applied health research. The University is an artive partner in the collaboratlve and participate5 in a number of work streams,. St asso 5UPPOrts one fully fundd ARC IKSSI PhD Studentship for each year of the partnership. 24
STATEMENf OF PRIMARY RESPONSIBILITIES OF THE UNIVERSITY'S GOVERNING BODY In accoTdantt with the Instrument and Articles of Government. the Governing eody is SpOnsIble for the determination of the edueational character and mission of the univeIty and the oversight of its activitie5 includin8 ensurin8 that an effective system of internal control is maintained. The other primary responsibillties of the Governing Body are to.. protect the effertive and efficient use of resources, and for safeguarding assets, tèkin8 advice from the Finan and Resources Committee.. Set a framework for the appolntment, assl8nment, grading, appraisal, suspension, dismlssal and determination of the pay and conditions of staff otherthan designated senior staff, for the guidance of the Finance and Resources Committee andlor the Vice-chancellor as appropriaie,. ensure the effective management of the Unwersity and plan its future development,. observe the hi8hest stsndards of corporate 8overnance. To ensure and demonstrate inte8rity and objectivity in the transactitsn of lis business and, whereyer p05sible. following a policy of openness and transparenry In the dis5ernin8tion ol its deusions., ensure thatfunds provided by the offi for Students and other fvnding bodies ère used In accordance with specified term5 and conditions in the agreements between the Unwer5ity and suth fundlngbodies.. ensu, through the Finance and Resour$ Committee and the Audit Commlttee, the establlghment and monitoring of sy5tem5 of control and accountability including financial and operational controls and risk assessment,. take suth 5tep5 as are re3sonably practicable to ensure that the Students, Union operates in a lair and democratic manner and is accountable for Its fInanS lThe Education Act 19941,. protect the health and safety of employee5, Students and other individuals whllst on the Unlverslty's premises and in other plates where they may be affected by its operations., ensure that the University has a written statement of policy on health and safety and arrangements for the implementation of that policy, includingthe establishment of a Health and Safety Group wlth trade union and staff representation.. eliminate unlawful discrimination and promote equality of opportunity and 8ood relation5 between differEnt 8roup5,' and determlne the educational character and mi55ton of the Unlve¥slty Including the approva1 of the Univefsiws Stratesic Plan and the Setting of Key Performance Indlcators IKPlsl. The specifit responsibllities of the Governing Body have been set gut in the Statement of Corporate Governance. Financlal Responsibilities otthe Governlng Bodv The Governing Body is responslble for keeplng proper accounting records which disclose with reasonable accuraiy at any time. the finantial position of the Universlty and which enable it to ensure that the financial staternents are prepared in accordahte with the Instrument and Articles of Governrnent. the Statement of Recommended Practice.. Accountingforfurther and higher education and relevant le8islation. In addition, within the terms and condition5 01 Funding for Higher Education Institutions from the Office for students lots). the Governing Body. through its designated accountable officer (the Vice-chaneellorl, Is required to prepare financial statements for each financial year which give a true and fairview of the state of affairs of the University and of the surplus or deficit and cash flows for that year. 25
STATEME1 OF PRIMARY RESPONSIBILITIES OF THE UNIVERSItrS GOVERNING BODY (CONTINUED) In causing the financial statements to be prepared, the Governin8 Body has ensured that.. suitable aecountin8 policies are sejected and applied consistently. judgements and estimate5 are made that are reasonable and prudenL applicable accountin8 Standards have been lollowed. subjert to any material departure5 disclosed and explained in the financial statements,. and financial statements are prepared on the 8olng concern basis unless it Is Inappropriate to presume that the University will continue in operation. The Governing Body is satisfied that the University has adequate resources to continue in operation for the foreseeable future. For thSs reason, the going nom basis continues to be adopted in the preparation of the finan¢i315tatements. The Governing Body has taken reasonable steps to- ensure that Ofs funds a used only forthe purposes forwhich they have been gNen and in aecordan with the Financial Memorandum and any other conditions which the Ots may from time to time prescribe,. ensure that there are appropriate financjal and managementcontrols In Platosa1e£3rd publicfunds and funds from other sources; safeguard the assets of the University and to prevet)t and detect fraud,. safeguard the economical, efficient and effertive mana8ement of the Universiws resources and expenditure,. and review the means of securin8 Its own effectiveness. The 8overnors confirm, 50 far as each governor is aware, there is no relevant audit information of which the group auditor is unaware. Each governor has taken all the steps that they oughtto have taken in their duty as a governor in orderto make themselves awa of any levant audic information and to establish that the group auditor is aware ol that inlormation. The key elements of the Universitvs system of Intemal financial control. which is designed to discharge the responsibilities set out above, include the following-. clear definitions of the responsibilities of, and the authority delegated to, heads of atademic and administrative departments.. a comprehènsive medium and short-term planning process. supplemented by detailed annual inttlrne, expenditure, capital and cash flow budgets,. re8ular reviews of KPIS and busines5 risk5 and monthly reviews of fjnancial results involvin8 variance reporting and updates of forecast outturns,. clearly defined and formalised requirement5 for approval and control of expenditu, with investrnent decisions involvin8 Capltal or ievenue expenditure being subjectto formal detailed appraisal and review according to approval levels set by the Governing Body", 26
STATEMENT OF PRIMARY RESPONSIBILITIES OF THE UNIVERSITY'S GOVERNING BODY ICONTINUEDI comprehensive financial re8ulations, detailinE financial controls and prOdUreS. including a fraud policy. all a5 approved by the Finance and Re50urtes Committee and Governing Body,. ompliance with a Unwersity policy on risk man88ement.' and a professional internal auditteam whose annual programme is approved by the Audit Cpmmittee under powerg delegated by the Governing Body and whose head provides the Audit Committee with a report on internal audit activity within the University and an opinion on the adequaty and effectiveness of its systern of internal control. Tntluding internal financial control. Any system of internal financial control un, however. only provide reasonable. but not absolute, assurance against materlal misstatement or loss. The Governin8 Body intends to publish the financial 5tatement5 on the Universiws website.. the maintenance and Integrlty of the University's website is the responsibility of the Bovemors,. the work carried out by the auditor does not involve consideration ol these matters and, accordin£ly, the auditor accepts no responsibility for any chan8es that may have occurred to thè financial statements slnce they were Initially presented on the website. le8islation in the United Kingdom governing the prèparation and dissemination of financial statements may differ from legislation In other jurlsdictlons. MsJArmitt Pro.Chancellor (Chalr of the Gowernlng aodyl . 23 bJ¢W.£oxi 27
STATEMENf OF CORPORATE GOVERNANCE The University is a priv3te limited company by guarantèè withoutshare company and a registed charity. It has a wholly owned Subsidiary, Medco ICCCUI Limited, trading as Unitemps. a Private limited cornpany. The objects of the ijniversity are set out in articles ol association incorporatSng the instrument of government of 24June 2013. It is a re815tÈrèd Ots provider, ha¥in8 entered onto The Ots Register on 28 August 2018. The Church of England retsin5 an iNte$t in the distinctive ChTlStian elements of the University's governance arrangements through special safeguarding provisions contained in the govemingdocuments. These prov1510rts, known as the golden wote. allow for the Church ol England to exerase a power of veto if the governing bodv passes any resolutlOD that seeks to remove or vary any e1ause in the governing d¢Kum£nts pertaining to the Universiws Christian distinctsveness.The 8olden vote is not consideredto be a material factor in the Universitls overall 8ovemance arrangements in orcumstanceswhere ithas neverbeen exercised and its inclusion and stope in the governin8 documents has been narrowed following dialogue with the Church of En8land. Governor5 are the charitytrustees and are responsible lor ensurin8 compliance with charity law. The Governing Body adheres tothe Seven Principles of Public tile. the Higher Education Code of Govemance and the Ofs public interest governance principles. The Governin8 Body is mandated to consist of notfewer than 18 and not more than 21 persws. the majority of whom are to be independent Govemors. The rnaximum number of Company Members is 22. It includes four nominative governors bein8 members of the Church of En8land of whom.. lil one 15 appointed bythe Archbishop of Canterbury.. lill one is appointed by the Diocesan Boards of Education of Canterbury and Rochester dioteses ècting jointly liiil one is appointed by the ATchbi5hops' Council ol the Church of England liv) one is the Bishop of Dover or their nominee,. one is the Vice-chancellor and Principal. three staff governors.. the three bein8 respectively a member of the Academic Board nominated by that Academie Board together with a member of the teaching staff of the University and a member of the support staff of the University,. one student governor, bein8 the elected President of the Students. Unlon, ex-officio, and not more than nine to-opted governors, at least six of whom are to be members of the Church of England. In terms of co-opted 8overnors. the Governing Body is rnandated to seek to ensure that different Unlversity, county and re8ional interests are reflected Sn its membership. The Governing Body wa5 chaired by Mr F Martin, the Pro-chancellor until 31 July 2021. Since l Au8USt 2021 the Governing Body ha5 bèen chairèd by Ms J Armitt. A schedule of delegation sets Out the re5ponsibllitie5 of decision makin& between the Goveming Body, it5 committees and the executive. The main responsibilities of Governing 8ody are.. to detem)ine the educational character and mi$5ion of the University Including the approval of the University's Strate8ic Plan and the settlng of KPIs- to approve annual estimates of income and expenditure,. to ensure the solvency of the institution and the safeguarding of its a55ets.' to appoint or dismiss the Vice-chancellor, the Clerkto the Governing Body, the Chaplain and Such other senior posts desi8nated by the Governing Bodv. to ensure that there are suitable arrangements lor monitor¢n8 the Vice-chantellorfs performance,. to vary or revokÈ of the Instrument or Articles of Government15ubject to provisions wthin those documents regarding the Arehbishops, Countill,. to ensure Complian with Company and Charity law,. 8. to approve annu31 financial ststemeNts upon external audit,. 9. to approve the constitution of the student body (Students, Union) and receive audited accounts of the student body.. and 10. to review its own effectiveness and performance and that of it5 committees formally every four year5, and annually on a'light touch. b3SIS. 28
STATEMENT OF CORPORATE GOVERNANCE {CONTINUED) The Governing Body norrnally meet5 four times peryear. In 2D2012021 one additional Governing Body meeting was held, aswell as three additional Chairs Committee meeting5. Additionally, the following Bovernorvisits took plate.. visit of the Students Union. Student Support Health and Wellbeing. and the Enterprise and Ernployablllty Department. Governor visits enable governors to be fully brfefed on the University's actwities, meetln8 Wlth students and stsff. The Academic Board, a committee of the Governing Body. chaired by the Vice-chancellor, Is responsible for all 5pects of the academic work of the University and tan establish such commlttees as are necessary. Each committee 15 chaired by a senior member of staff and faculties are represented on all comrnittees. Subjett to the requirements of validating and accreditlng bodies. the Acadernit Board is responsible for.. general issues relatin8 to the research, scholarship, teaching and courses at the University., the appointment of internal and external Examiners,. a555ment and examination policies and procedures,. the curriculum,. academic standards and course valldatlgTr,' the procedures for the award of qualifications and honorary academic titles,. the procedure for the suspension or expulsion of student5 for atsdernic reasons,. for considering the development of the Universitrs academic activities.. and for advisin8 on suth othermatters as the Governing Body or rhe Vice- Chancellor and Princlpal may refer it. An overview of the central academic committees of the University. includin8 MeMbehIp and terms of reference can be found on the uniVeity'S website. There are four other Governing Body committee5.' Chairs, Committee, Finance 3nd Resources Committee. Audit Committee and Remuneration Committee. all of which include independent govemor5. Decisions and recommendation5 of Gaverning Body cgmmittees are reported to the Governing Body and term5 of ference are reviewed on an annual basls. The Chairs, Cornrnittee is re5ponslble fof advisln8 the Governlng Body about governan policy and practlce- monitoring the Universit¢5 register of intere5t5.' considering nominations to the Governlng Body and recommending appointments to it,. considering Honorary Fellowship and Doctorate nominations.. considerin8 nominations for naming University buildin85 and rooms,. monitoring ctsmpliance with the CLIC Code of Governance,. over5i8ht of committee terms of referen and schedule of delegation,. oversight of annual governor inforrnal élscussions and four yearly review of governance,. reviewing Its own effettiveness and performance annually on a 'light touch, basls and formally every four years,. strate8lc oversight of Master Planning,. and there is an annual review of (halrs. Committee terms of reference and work plan. The Chairs, Committee memberyhlp consists of.. Pro-chaneellor of the Llniversity Ichair of the Governing Bodyl -Mr F Martin Ilndependentl (to 31 July 20211 Ms J Arrnitt (Archbishop of Canterburfs appointee) (from l August 20211 Chair of the Audit Committee- Mr P Fletcher Ilndependentl Chair of F&R Committee- Ms J Armitt (Archbishop of Canterburfs appointee) (to 31 july 202113nd Sir W l R Johnston Ilndependentl (from l August 20211 Chair of the Remuneration Committee and Deputy Pro-chantellor of the Univer51ty Chair of the Governing Bodyl- Sir W l R Johnston Ilndependentl Vice-chancellor and Chair of the Academic Board- Professor R Thirunamachandran Ivice-chaneellorl One ctroption if vatancies exist because individual members fulfil multiple roles. The Chairs, Committee normally rneets three times in each academic year. In 2020121 the Chairs Committee met on six occasions. The Finance and Resources Cornmittee is responsible lor the financial affairs of the University including consideration of estimates of income and expenditu and the consolidated financial statements.. the strategic mana8ement of the Univer5itVs e5tate,' major building developments, acquisitions or disposals,. the efficient use 29
STATEMENT OF CORPORATE GOVERNANCE (CONTINUED) of physieal resources; the carè and maintenance ot the Universitys estate. consideration and monltorin8 of the ICT strate8y.' oversight of the Vice-chancellorfs actions related to human resources arnd strate8ic oversi8ht of the University's People Strategy,. annual account5 of the Students. Unlon., oversi8ht of the University's subsidiary cornpaniès,. approval of finan¢i81 regulations, policies and procedures.. approval of TRAC returns,. oversight of the sustainability agenda,. and reviewing its terms of reference and work plan annuallv. The Finante and Resources Committee membership consists Of.. Chair of the Finance and Resources Committee- Ms J Armltt (Archbishop of Cantèrburvs appointee) (to 31 July 20211 Chair of Rernuneration Committee Sir W l R Johnston Ilndependentl (Chair of the Finance and Resources Committee from l August 20211 Student Governor- Ms R Thorrson Ito 30 June 20211, Mr D Bichener (from l August 20211 Mr S Brown Ilndependentl Ms J Hardin8 Ilndependentl Mr aive Stevens Ifrom l Au8U5t 20211 Revd R Stevenson Ilndependentl Vice-Chantèllor- P¥ofessor R Thirunama¢h3ndran Imce-chancellorl The Finance and Resources Committee normally meets three times in each academic year. TheAudit Committee is responsibleforthe appointment of the exteinal audStor,' discussing the nature ènd scope of the external audit.. discussing with the external auditor any arisirtg problems including a review of the mana8ement letter,. appointing the internal auditor.. reviewing the internal audit strategy and findin85', monitoring the effectiveness of risk management., monitoring the implemèntation of audit recommendations.. ensurin8 all si8nificant 1055Ès are investl8ated,' overseeing policies on fraud and irre8ularity.' monitoring arrangements ro promote econorny* efficiency and effectiveness,. retsiving reports from the National Audit Office and other funding councils.. monitorin8 performance of both internal and external audit- considerin8 financial statements in the presence of the external audilor,. monitoring data assurance arrartgements.. monitoring KPls.' consldering the Audit Committee Annual Report,. and reviewing its Terms of Reference and Work Plan annually. TheAudit Committee membership con515ts of.. Chair of the Audit Committee- Mr P Fletther Ilndependentl Ms S Appleby Ilndependentl Mrs P Jones IArchbishops' Councll of the Church of England appolnteel Mr Stephen Carey Ifrom l Au8USt 20211 And Co-opted rnembers.. Mr J Hills (resigned 31 July 20211 Mr Ranil Perera Ifrom l August 20211 Mr Q Roper (from l Au8USt 20211 Mr S Sutton. The Audit Commlttee normally meets four tlmes in each academit year. The Remuneratlon Committee is responslble for determining the pay and condSti0Th5 of ernployment for the Vice-ChaN110r,. the senior management team.. and other senior staff deemed approprlate. Remuneration Committee membership consists of.. Chair of the Remuneration Commlttee- Sir W l R Johnston Ilndependentl Pro-chancellor of the University - Mr F Martln Ilndependentl Ito 31 july 20211, Ms J Armitt (from I Au6U5t 20211 Ms N Ahmed Ilndèpendentl. 30
STATEMENT OF CORPORATE GOVERNANCE (CONTINUED) And co-opted mèmber.. Lord Alastair Col8rain IlndependentAsse550rl. The RemuneratSon Committee normally meets once in ea¢h academic year. A Govemance Effectiveness Review undertaken by the UniversiWs internal auditor in 2020 returned an opinion of '5ignificant assurance wilh minor improvement opportunitie5' Upon initial registration. the Ofs was satisfietl that the University met the general ongoing tondition of registration E2. in that the University has in place adequate and effecrive management and governance arrangement5 to operate in accordance with its 8overning docvments,. deliver public interest governance printiple5.' provide and fvlly deliver advertised hi8her education courses and continue to comply wlth all condition5 of its registratlon. A review of the Universitvs Articles of 50ciation incorporatlngthe Instrument and Articles of Government was undertaken by the GovemiTrg Body in 2020121. It is antitipated that the Governing Body will formally approve the updated Articles at the start of the cademic year 2021122 following appmal by the Charity Comn)ission. The Goveming Body will then consider changes tts it5 scheme of delegation and associated documents. Chan8es included clarification of objects and powers, the appointment of a Senior Independent Governor and Staff Governor and Student Governor representstion on committees. The G(werning Body updated its Governor Appointment Policy in 2020121 to Include a skills-based method of recruitment and eonsolidate recruitment requirements acr9$5 the categorles of membership of the Governing Body. The elections of three Staff Governors were held in summeT 2021 in accordance wth the updated GovernorAppointment Policy. The University ensures openness and transparency Sn order that stakeholders can have confidence in its decision-makin8 and management processes. Transparency abgut the corporate governance arrangement5 of the UnwÉr5ity is achleved by virtue of publication of the following documents on its website.. Memorandum and Articles Schedule of Delegation Governing Body Strurture Re8iSter of Interests Temis of Reference Annual financial statements Governing Body Minutes Publication Scheme Whistleblowing Policy. The Goveming Body ensures the adequacy and effectiveness of arran8ements for corporate governance, risk management and over518ht of any statutory and other re8ulatory re5pon5ibilities. including compllance with ongolng Ofs conditions ol giStration, terms and conditions of funding a5 well as any other relevant regulatory responsibilities by.. Meeting at least four times each academic year to determine strate8V', Reviewing an annual report on teachin8 quality and Standards Ifrom the Academic Bgardl and then sign5 off the Annual Quality A5se5sment Assurance Statement as part of its Sulte of annual returns.. Receivin8 an annual report and assurance frorn the University Solicitor regarding the Universitys compliance with Ofs initial and onBoin8 general condltions of registration,. 31
STATEMENT OF CORPORATE GOVERNANCE (CONTINUED) Receiving updates Irom thè Audit Committee concernin8 internal control, and 5trate8ic risk management., Owersight by the AUdt Committee of the Universiws risk mana8ement framework and a hi8h-level strategic risk re8lSter fully aligned to the Univer5iWs Strategic 8oa15 set out In the UnlversiWs 2015- 2022 strategic framework.. Re8ular reviews by the Audit Committee of Internal Audit reports, which intlude an independent opinion on the adequacyand effectiveness of the University's Systems of govemance, rSsk management and intemal control, together with improvement recomrnendatiot)s', Monitorin8 of institutional KPls18overnor sub-set),. and ReviewinB Post-investment lesson learning reviews in respect of major Investment projèrts undèrtaken by the University. Specifically, in terrns of publSc fundSt)g from the Ots, UK Research and Innovation IUKRI, including Research Englandl, the Department for Edy¢ation or the Education and Skills Funding Agency the University ensures.. regularity in the use of public funding., and b. Propriety in the use of public funding by.. the provision of framewo of financial controls for the University in The Financial Regulations and a0clated Financial ProtÈdurè5. Thè Financial Regulation5 were approved by the Finance and Resources Committee on S March 2020. The Financial Regulations are subordinate to the Universiws Articles and to any restrirtions contsined in terms of conditions of fundin8 and the audit code of practice. The purpose of The Finana81 Regulations is to provide control over the totality of the Unlverslvs resources and provide assurance in SpeCt of a., and b.. above. Compliance with The Financial Regulations is mandatory. 8reaches are notified to thè Governing Body via the Audit Cornmittee. This statement covers the reportin8 period from l August 2020 to the date of si8nin8 and approvin8 the hnancial statements on 23 November 2021. 32
MODERN SLAVERY AND HUMAN TRAFFICKING The University is cornrnitted to ensuring that slavery and hurnan trafficking is not t8king plèce in its supply Chain in line with the Modern Slavery Att 2015. As a values based institution, the University condemns moralty bad practices and expects all of its bysiness partners to live up to ènd adhere to the prlnciples set out in the anti- slavery legislation. The action5 tsken by the University in this financial year to meet the objedives Include.. Oversight of the m3na8emenl of ri5k5 of modern slavery and human trafFickin8 in the supply chain is provided by a nominated senior manager, the Pro Wice Chancellor IResearch and Enterprisel, as part ol his role of chair of the Sustainability Strate8ic Management Group. A policy review is continuin& and where requlred, modification5 arè being made to ènsure that all relevant University policie5 identify how they support tompliance with the Modern Slavery Act. As part of this review the staff policy on Coercive Behaviour ha5 been identifled lorfurtherdevelopment before relea5E in 2022. This policy will be underpinned with practi$ to support safeguardlng and awareness of the indicators of Modern Slavery and Human Trafficking. Training and development In the application of all of the Universitls staff policies is in place and 15 monitored by the Human Resources and Orgèni53tional Development Department. The University makes use ol the SUPC framework for many of the signif1cant tender exercises. The SUPC has become affiliated with the Electronic Watch to ensure Compliance with labour right5 and safety standards in the supply chain. This is particularly relevant for the hi8h risk supply of IT equlpment and consumables. TheSUPClwvereleq5edastotement.. "The SUPCi5 committedto ucquirlng goods ondser¥icesfor its members without cousing harm to others. Affili¢7ting to Electronics Wutch 15 on importont Step fvrward, and will ollow the 5UPC to hove eye5 LTnd eors on rhe ground in producer region5 to ensure rights violotions ore detected andproperly oddressed." As part of the Universitvs tender processes outside of the use of the SUPC framework a statement is obtained from the supplier tonfirming howthey meetthe reqvirement5 of the Modern Slavery Act 2015. If the goods or services being purch35ed have a high risk of labour rt8hts violations (including but not limited to.. tlothin& IT equipment, and construction worksl then additlonal questions to éemonstrate compliance are raised as part of the tender proces5. The increased risk of Modem Slavery in the supply chain due to COVID 19 restrictions and the fieeil to monltor health and safety in working practice5forsoeial distancing has hi8hli8hted the importance of due diligence checks of suppliers. The procurement team and purchasing managers acros5 the institution recognise the hei8htened risk and are completing thorough checks at the tender stage, prior to takin8 on any new suppliers, to help mitl8ate the risk. In suppgrt of thesé mitigating actions the University'5 Procurement team offers support and guidance to all areas of the University that en8age with suppliers to procure goods and Services, reporting any non-compliance of poliry requirements to the relevant Senior Mana8er. The Univer5itVs Governance and Legal Services team reviews contractual term5 and CDnL5itions of a51 draft agreements to ensure provision is made relatln8 to Modern Slavery Act compliance. The Universitvs Modem $13very and Hurnan TraffickTn8 Staternent has support of the full GovernSng Body. and was presented for approval at the Governing Body meeting on 23 November 2021. The Unitemps temporary stafflng a8ency operates under franchise by the Universltvs subsidiary. The agènty falls outside of the5cope of the modern slavery legislation, however. on a voluntary basisthe a8encycomplies wSth the requirements of the Modern Slavery Act. The Octions taken by the 5tsffin8 a8ency a monitored by the Branch Manager, and include.. aient terrns of engagement requi the client to comply with the requirements of the Modern Slavery Att 2015. All external clients must comply with 311 applitable anti-slavery, forced and compulsory labour, and human traffickin8 laws, ststutes and regulations in force. 33
MODERN SLAVERY AND HUMAN TRAFFICKING {CONTINUEDI External clients must have and maintain their own policies and prOdureS to ensure cornpllance. These policies must 8ive the client the power to enforce the conditions where approprlate. High risk areas for agency stsff have been identified as any sector where a g8ng ma5terf5 license Is required, such as in agriculture. No Uniternps 3gency workers can be Set assignments in these hSgh risk sectors. The University continues to expand its knowled8e of the supply thain and works proactively with all managers, budget holders and staff engaged in procurement activity to build on their understanding of the requirements of the Modern Slavery Act. This foms part of the University ongoin8 commitment to ensuring all vulnerable staff, students and those workin8 in the supply chain are safeguarded against exploitation in all fom)s. 34
STATEMENT OF INTERNAL CONTROL The Governing Body has responsibility for maintaining a sound system of snternal control that supports the achievernent of policiÈ5. aim5 and objectives, while safeguarding the public and otherfunds and assets lor which they are responslble, in accordance with the responsibilities a55igned to the Governing Body in the University's Instrument and Articles of Govemance and the Terms and Conditions of Fundifig for Hi8her Education Institution5 frorn the Ofs. The 5VStem of internal control is designed to manage rather than eliminète the rfsk of failure to achieve policies. aims and objectives,. it can therefore only provide reasonable and not ab501ute Èssurante of effettIvens. The system of internal control is based on an ongoing proces5 designed to identify the principal risks to the achievernent of policies, aim5 and objertives.. io 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 2020 and up to the date of approval of the Strategic Report and Financial Statements and accords with the Ofs and Turnbull 8uidance. The Governlng Body has responsibility for ihe institution's system of internal control, for reviewing its effectivenes5 antl ensuringthat the review has covered all contro15 (financial, operational, risk management and compliance). The following processe5 have been established.. Thè Governing 8¢dy meets at leastfour times each year to considerthe plans and strategSc direction of the institvtion. The Governing Body and the Audlt Committee have approved the Risk Management Policy and Procedu$ which summarise the approach, reles and responslbillties, and the annual review of effectiveness process. The Governing Body has assumed responsibility for oversight of the risk management process within the Unlversity as a whole. and determined Its rlsk appetite. which includes adopting a differentiated approach to risk depending on the nature of the activity. As Chief Executive. the Vittrchancellor has ultimale responsibillty for the management of the University, includin8 the management of risk. The Univer51ty Solicitor oversees the risk mana8ement PToce55 adopted by the University. The University mèintains a comprehensive Str3tegic Risk ReBlSter that identif1es the high-level strategit risks faclngthe institution. Each risk has an identified risk owner clearly documented within the ReElSter togetherwith a scorin8 assessment based on likelihood and impact. Risks are given a gross and residual rating. Risk identification and management 15 c105ely linked to the achievement of the institution's objectives, with all schools and departments prUcing local risk rE8lSters alongside their arnual bu5ine5s plans and major change strategic project owners producing the same. All of the University's identified hi8h-level corporate risks are directly linked to the University's Key Performance Indicators which rnonitor achievement against the Strategic Plan. Each risk response has been formally considered by the University Sollcltor, the Senior Manè8ement Team ISMTI and the Audit Committee. The SMT, chaired by the Vice-chantellor considers the risks Identlfled Inthe Project Risk Registèr5. The Vice-O)aneellor and the SMTmonitor thetop'net exposure. risks on a regular basis, as well as the effectiveness of controls in place to manage less serious rlsk5. Less serious risks are revlewed and monitored by facultles, schools and departrnents which operate local re8lSters as part of an overall approath, embedding rlsk assessment and mana8ement within the University. The annual presentation of local risks wlthln SMT business plans allows for considerat10n to be made of aggregated risk5 for potential inclusion in the Universiws high-level risk register. 35
STATEMENT OF INTERNAL CONTROL (CONTINUED) Regular reports are received from the Audit Committee ConrNing findings of the Internal Auditor and matters relating to internal tontrol. The VSctrChaneellaf provides 3 written report to the Audit Committee on the UnNersiWs approath to Risk Management at each of its meetings and an annual report is presented in May of each year. The univeIty has appointed Intemal Auditors, who operate to standards defined in the Ofs Terms and Conditions of Funding for Higher Education Institutions. Audit Code of Practice. The Internal Auditor5 submit regular reports whlch include their independent opinion on the adequacy and effectiveness of the systern of intemal control, together with recommendations for improvement. The Governing Bodvs review of the eflertiveness of the system of internal control is also infomed by the work of the executSve managers within the University, who have responsibility for the development and maintenan of the internal control framework. and by comrnents made by the External Auditors in their rnanagement letter. There were no significant control weaknesses in the year. 36
INDEPENDENT AiIDITOR'S REPORT TO THE GOVERNORING BODY OF CANTERBURY CHRIST CHURCH UNIVERSITY Report on the audit of the financial ststsmeTrts Oplnlon We have audited the financial statements of Canterbury Christchurch University I'the Universiw) and its sub51diary I'the Group'l for the year ended 31 July 2021 which comprise the Consolidated and University Statement of Comprehensive Intome aftd Expenditure, the Consolidated and University Statement of Changes in Reserves, the Con501idated and University 5taternent of Financial Position. the Consolidated Cash Flow Statement and notes to the financial statements. The financial reporting framework that has been applied i thelr preparation is applScable law and United Kln8dom Accountlng Standards, including FRS 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland" (United Kingdorn Generally Accepted Accounting Practice). In our opinion, the finanaal statements.. give a true and fairview of the state of the Group'5 and University's affairs as at 31 July 2021 and of the Group's and Universiws income and expenditure, gains and losses, chan8es in reserves and cash fl¢)ws for the year then ended., have been properly prepared in accordance with United Kin8dom Generally Accepted Accounting practi,. have been prepared in accordance with the requirements of the Statement of Recommended Practice Accounting for Further and Higher Education and. have been prepared in accordance with the requirements of the Companies Act 2006. 8asi5 for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those Standards are further described in the Audltor's responsibllities for the audit of the financial Statements section of our report. We are independent of the group and University in accordance with the ethical requirements that are relevant to our audit of the financial Statements in the UK. including the FRCS Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained 15 suffiuent and appropriate to provide a basis for our opinion. Conclusions relatin8 to 80in8 conrn In auditin8 the financial Statements. we have CDncluded that the d1CtorS, use of the 80in8 concern basis of actounting in the preparation of the financial statements is appropriate. B35ed on the work we have perfornied. we have not identified any material uncertainties relating to events or conditions that. individually OT collectively. may cast significant doubt on the Group'5 and Univer51tl5 ability to continue as a 80ing concern for a period of at least twelwe months from when the finartrcial statements are authorise(J for issue. Our responsibilities and thè rèsponsibilities of the directors with spert to going concern are described in the relevant sertion5 of thi5 report. Other informatlon The directors are responsible for the other infomation. The other information comprise5 the information intluded in the Annual Report, otherthan thefinèncial statements and our auditoes report thereon. Ouropinion 37
INDEPENDENT AUDITOR'S REPORT TO THE GOVERNING BODY OF CANTER8URY CHRIST CHURCH UNIVERSITY ICONTINUEDI on the financial statements does not cover the other infomiatlon and, except to the extent otherwlse expllcltlv Stated in our report, we do notexpress any fom of assuron¢e conclysion thereoh. In conrbectSon wlth our audlt of the financlal statements, our responsibllity is to read the other Information and, in doin8 so. consider whether the other information is materlally inconsistent with the financial statements or ourknowledge obtoined in the audit or otherwise appears to be materially rnisstated. If we identifysuch material in¢onsistenties or appareftt material misstatements, we are required to determine whether the is a material misstatement in the financial Statements or a Matla1 Tnisstatement of the other information. If. basèd on the work we have perfornied. we conclude that there is a material misstatement of this other infom)ation, we are required to report that fart. We have nothin8 to report in this re8ard. Responsibilities of Directors explained more fully in the Statement of Responsibilities of the Directors set out on pa8e XX, the directors are responsible forthe preparation of the flnancial statements and for bein8 Satisfied that they glve a true and lair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparin8 the financial statements, the directors are ¥esponsible for assessing the Group and Universitys ability to continue as a going COnr, disclosin& a5 applicable, matters related to goin8 concem and using the going concern basis of accounting unless the director5 either intend to liquidate all or part of the Universitv Group or to cease operations, or have no realistic alternative but to d9 5Q. Auditols rèsponsibilities for the audlt of the financial statements Our objective5 are to obtsin reasonable assurance about whether the fjnancial staternents as a whole are free from material misstatement, whether due to fraué or error, and to issue an auditor's report that includes our opinion. Reasonable assurance 15 a high level of assurance. but is not a 8uarantee that an audit conducted in accordance with ISAS IUKI will always detert a material misstatement when it exists. Mi55tatements can arise from fraud or error and are considered materlal if, Sndividually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial Statements. Irre8ularities. indudin8 fraud. are instance5 of non-¢oMpliante with laws and regulations. We design procedures in line with our responsibilities, outlined above. to detect Matèrial misstatements in respect of irregularitie5, including fraud. Based on our understanding of the University Group and its operations. we identified that the principal risks of non-compliance with laws and règulations Lated to the Ots requiremertts, UK tax legislation. pensions legislatSon, employment re8ulation and health and safety regulation. anti-bribery. corruption and fraud, money laundering, non-compliance with implementation of government support scheme5 relating to COVID-19, and we considered the extent to which non-compliance might have a material effect on the financial statements, We also considered those laws and regulations that have a direct impact on the preparatlon of the financial ststements, such as the Ots Accounts Oirertion. We evaluited the directors, and managemenvs incentives and opportunltles forfraudulent manipulatlon of the financial 5taternent5 lincluding the risk of override of controls) and determined that the principal risks were re13ted to posting manual journal entries to manipulate financial performance, mana8ement bia5 through judgements and assumptions in significant accounting estimate5, in particular in relation to loss reserves, and $18nifTcant one-off or unusual transactions. Our audit procedures were designed to respond to those identified risks, includin8 non<ompliance with laws and gUlationS Ilrre8ularitlesl and fraud that are material to the financial ststements. Our audit procedures included but were not limited to.. 38
INDEPENDENT AUDITOR'S REPORT TO THE GOVERNING BODY OF CANTERBURY CHRIST CHURCH UNIVERSITY ICONTINUEDI Diseussin8Wlth the dirertors and managernenttheirpolicies and procedures re8ardin8 compliancewith laws and gulationS,. Communieating identified laws and regulations throughout our engagement team and remaining alert to any indication5 of non-compliance throughout our audiL' and Con5ider¢ng the risk of acts by the Unlverslty Group which were contrary to applicable laws and regulations. including fraud. Our audit procedure5 in relatlon to fraud induded but were not limited to.. Makln8 enquirie5 of the directors and managernent on whether they had knowledge of any artual, suspected or alle8ed fraud,. Gaining an understanding of the intemal contro15 e5t3bli5hed to mitl8ate risks related to fraiJd- Discussin8 amongst the engagement team the risks of fraud.. and Addre55in8 the risks of fraud through management override of tontrols by performinB journal entry testiri8. There are Inherent limitatlons In the audlt procedures described above and the prirnary responsibility for the prevention and detertion ol irregularities Includlng fraud rests with management. As with any audit, there remained a risk of non-detertion of irregularities, as these may invofve eollu5ion, forgery, intentional omissions. mlsrepresentations or the ovérride ol internal cgntrols. A further description of our responsibilitles for the audit of the finanaal statements 15 located on the Financial Reporting Council's website at www.frc.org.uklauditorsresponsibilities. Thi5 description form5 Part of our auditorf5 report. Other Required Reportin8 Opinions on other matters prescribed by the Cornpanie5 Act 2¢X)6 In our opinion. based on the work ndertaken in the course of the auéit.. the information 8iven in the strategic report and the direttors. Report forthe financial period for which the financial statements are prepared is cgnsistent with the financial statement5.' and the strategic report and the directors, Report have been prepared in accordance with applicable legal requirements. Opinion on other Matte prescribed in the 0 Audit Code of Practice issued under the Further and Hisher Education Art 1992 In our opinion, in all material respects.. funds from whatever Source adrnini5tered by the Provider for specific purposes have been propedy applied to those purposes and mana8ed in actordance with relevant legislation,. funds provided by Ofs, UK Research and Innovation (including Research England). the Education and Skills Funding Agency and the Department for Education have been applied in accordance with the relevant terms and conditions,. and the requirements of the 015's accounts dlrectlon have been met. 39
INDEPENDENT AUDITOR'S REPORT TO THE GOVERNING BODY OF CANTERBURY CHRIST CHURCH UNIVERSITY (CONTINUED) Matters on which we are required to report by exception In light of the knowledge and understanding cf the group and University and its envlronment obtslned in the course of the audit. we have not idenithed material misstatemÈnts in the strategit report or the directors, Report. We have nothing to report in respect of the following matters In relation to whlch the Companies Att 2006 requires US to report to you if, in our opinion.. adequate accountlng records have not been kept. or returns adequate lor our audit have not been received from branches not visited by us,. or the fSnanclal statements are not in a&emeTht with the accounting records and returns,. or certain disc105ures of direttors, remuneration specified by law are not made.. or we have not reIved all the information and explanations we rèquire for our audlt. We have nothing to report in respect of the followin8 matter5 in relation to whSch the OtsAudit Code of Prattice require5 US to report to you if, in our opinion.. the provider'5 Brant and fee income. as disclosed in the note5 to the accounts. is materially misstated,. or the provider's expenditure on access and partiapation actlvltles, as dis¢losed in the accounts, has been rnaterSally misstated. Use of the audit rèport This report 13 rnade solely to the University's members as a body in acco¥dance with Chapter 3 of Part 16 of the Companies Att 2(K)6. Our audit work has been undertaken $0 that we might stste to the Universitvs members those matter5 we are required to state to them In an auditoFs report and for no other purpose. To the fvllest extent permitted by law. we do not accept or assurrte responsibility to anyone other than the 8roup and University and the UniversiWs members, as a body, lor our audit work. for this report, or for the gpinions we have formed. Si8ned.. •rJ L/ Bott (Senior StatutoryAuditorl for and on behalf of Mazars LLP Chartered Accountants and Statutory Auditor 6 Sutton Plaza, Sutton Court Road. Sutton, Surrey SMI 4FS Date.. 29 November 2021
STATEMENT OF PRINCIPAL ACCOUNTING POLICIES l. Basls of Prepar*ion These financial statements have been prepared in accordance with the Statement of Recommended Practice ISORPI.. Accountingfor Further and Higher Education 2015 and in accordancewith Financial Reporting Standard5 FRS 102. The University is a company limited by guarantee incorporated in the United Kingdom under the Companie5 Act. The University's registered address and that of the subsidiary company is shown on page l of this report. Under FRS 102 the Unlversity has taken advantage of the exemptions for financial instrument distlosure for the parent and from providing a parent company cash fltsw statement. The UnSversity is a public benefit entlty and therefore ha5 applied the relevant public benefit requirements of FRS 102. The Financial Statement5 are prepared in accordance with the historlcal cost convention. The principal accountin8 policies. which have been applied consistently throughout the current year are set out below. The Governin8 eody is satisfied that the Un1versity has sufficient facilities to continue operating at its current level and therefore the financial statements have been prepared in accordance with the historical cost convention and on a going eontern basis. 2. Critical Judgements The followin8 are the critical judgements that have been made in the process of apping the University's accounting policies. 2.1 Capltal and Researth Grants Recelved The Universitrfs accounting policy requires recognition of incomewhen performance Lated conditions are met. Income 1ved in advance of performance related conditions being met is reco8nised a5 deferred income within creditors on the balance sheetand released into income as the condition5 are met. The research contracts that are entered into by the University are as5es5ed and any performance conditions identified. The income from these research activities 15 released based on the meeting olthe conditions stated in the research contracts or on commencement of the activity if no wnditions are specified. Where conditions have not yet been met the income Is held as deferred income within creditors on the balance sheet. 3. Estlmates The key assumptions concerning the future, and other key estimation uncertainty atthe balance sheet date that have a significant risk ol causing material adjustment to the carryln8 amounts ol the a55ets and liabilitie5 W5thin the next financlal year are highlighted a5 follows. 3.1 Local Governmènt Penslon The present value of the Local Government Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basi5 Using è variety of assumptlOn5. The assumptions used in determining the net cost for pensions include the discount rète. Any chan8es in these assumptions as disclosed in note 23 will irnpact on the carryin8value of the pension liability. Furthermore a rolled forward approach which projetts results frorn the latesi full actuarial valuation performed as at 31 March 2019 ha5 been used by the actuary in valvin8 the pension5 liability as at 31 July 2021. Any differences between these fi8ures derived from the roll forward approach and a full actuarial valuation would impart on the carrying amount of the pension 4. Basls of Consolldatlon The consolidated f1nancial statements include the University and its subsidiary company for the financial year to 31 July 2021. Intra-group transaciions are eliminated on con501idation. The con591idated financial st8temEnts 41
STATEMENT OF PRINCIPAL AccoUrING POLICIES IC014TINUED) do not include the inwme and expenditure ol the Students, Union as the University does not exert control or dominant influence over poliry decision5 of the Union. 5. RecoBnltlon of Income Income 15 measured at the fair value of the cofisideration received or receivable and preSentS amounts receivable for servlces provided in the normal course ol business. net of discounts and VAT recoverable from HM Revenue and Customs. Revenue from transactions that have a commercial substance, including tuition fee, accommodation, catering and conference income and tonsultancy fees are recognised as income in the Statement of Comprehenswe Income using the Performance Related method of apportionment. Fee intome is stated gross and credited to the income and expenditure accountoverthe period in which students are studying. This may involve the deferral of income over morethan one financial year. Where the amount of the tuition fee is reduced. by a discount awarded by the University for prompt payment, income receivable is shown net of the discount. Bursaries and scholarship5 are accounted forgross as expenditurè and are not deducted from income. 6. Grants Revenue-based grants from Government, the Office for Students IOfSI, the Department for Educatlon IDfEI and HEKSS trusts are passed through the Income and Expenditure Account when the conditions relatingto the 8rant have been satisfied (see S, Recognition of Income above). Grants or other contributions from Government and other bodies are accounted for using the performance model and are recognised in the financial statements when the conditions for thelr ceIpt have been complied with and there is reasonable assurance that thegrant or contribution will be received. 7. Agènty Arrangèmènts Funds the Institution receives and dSsperses as a paying 8Eent on behalf of a funding bodyare excluded from the income and expenditure ol the University wherE the Univetsity is Èxposed to minimal risk or enjoys minimal economic benefit related to the transaction. . Forel8n Currencl Transactions denominated in foreign currencies are recorded at the rate of exchange ruling at the date of the transactions. Monetary assets and liabilities denominated In foreign currendes are translated into sterling at the closing rate a5 at the year end. The resultin8 exthange differences are charged to the Ststement of Comprehensive Incorne. 9. Operatlng Leases Rental tosts under operating leases a charged to expenditure in equal annual amounts over the period of the leases. Rent free periods or othèr incentives reduce the total expenditure on the lease. caltulated by applyin8 all ol the incentive over the life of the lease. 10. Intan8lbl• A55•ts The development Cost to the University ol software assets Is capitalised a5 an intangible asset when the asset comes Into full use. Software In development is held in the asset register until complete and fully in use. The value of the asset is stated at historic cost less attumulated amortisation charges, with amortlsation being charged on a strai8ht line basis from the month that the asset is fully developed. significant intangible assets with a value of £200,(X)O or more are amortised over 10 years and lower value assets of less than £21X),OC4) a amortised over five years. The costs relating to the development of the medical programme are capitalised è5 an intangible asset. Development costs accrue from the date at which the contrart was entered into. and are capitalised when the asset comes into use, and will be amortised when the benefits are realised on a strai8ht- linè basls over five years. 42
STATEMENf OF PRINCIPAL AccouMfiNG POLICIES ICONTINUEDI 11. Tan8ible A55ets Tan8lble assets are stated at hlstoric purchase cost les5 accumu13ted depreciation, or in the case Df Land and Buildings. at deemed tosi based on the ontroff revaluatlon undertaken as at 31 July 2014. The total cost of an asset can include incidental expenses incurred by staff or consultants, where these costs relate entirely to the prolect. The costs of rnajor buildin8 programrnes will also include the interest charged on any related loan finance used to fund the building durin8 the constmction phase of creatin8 the asset. Depreciation is charged on a straight line basis from the month thatthe asset is acquired gr that constructlgn is cornplete. During the time of construction the value of the asset is held in assets under construction. Once construction is complete the value of the asset is tranSferd to the asset register. Depreciation commences from when the asset is commissioned into use. Land is not depretiated as it is tonsided to have an Indefinite useful life. Buildings are depreciated (wer their expected useful lives of up to 50 years. Assets in the tourse of construction are accounted for at cost 5ncurred tothe end of the year. They are not depCIated until they are ready for use. For large construttion projects the cornponents of the building a identifi'ed separately and are depCIated over the useful economic life as detem)ined by the nature of the asset. Costs incurred in relation to a tangible fixed a55et, after the initial purchase or production, are capitslised to the extent that they increase the expected future benefits to the University from the existing tangible lixed asset beyond its prEviously a55es5ed standard of performance,. the cost d any such enhancements are added to the gross amount ol the tangible fixed asset concerned. Minor work5 in èxces5 01 £10,000 are sepèrately identified and depreciated over ten years. These have been included in the freehold land and buildings category in note 9. Fixtures. fittings and equipment, including Computers and software, co5n8 less than £IO,IXKI per individual item are written off in the year of acquisition. Equipment that is capitalised is depcIaled over the useful economic life expectancy of the asset. This is e5tirnated to be 5 years for equipment includin8 IT assets and between 10 to 25 years for plant and machinery. Where building5. minor works and equipment are acquired wth the aid of speofic grants the asset is capitalis and depreciated as above. The related grants 3re released a5 incorne when the performance conditions are me( or on Teceipt of funds if no conditions are specified. Expenditure to ensure that a tangible fixed asset maintains its previously recognised standard of performance is recognrsed in the Statement of Comprehensive Incorne in the period it is incurred. The University ha5 a planned maintenance programme. whith is reviewed on an annual basis. All assets are reviewed on an annual basis for InditOrS of irnpairrnent. Any adjustment to the value of an asset for impairment is charged to the Statement ol Comprehensive Income in the period it arises. 12. Assets held for leIe Tangible a55ets that are held for resale are carried at a value that is the lower of net book value or experted recovery amount. Assets identified as being held lor resale trigger an impairment review in line with the HE 50RP. From the impairment review if an asset requires an adjustment to the carrying value the resulting impairment is tharged to the Ststement of Comprehensive Income. 43
STATEMENT OF PRINapAL ACCOUNTING POLICIES (CONTINUED) 13. siock Stocks are matefials held by varSous UnNersity departments Includin8 catering supplie5, together with books and other iterns purchased for resale. Stocks late to finished products and are valued at the lower of cost or Selling price less costs to sell. on a first-in. first-out basis. Where necessary. provision Is made for obsolete, 510w- moving and delectiwe stocks. 14. Cash and Cash Equivalents Cash includes cash in hand, cash at bank. deposits repayable within 3 months and overdrafts. 15. Malntenance of Premise5 The UnNerslty has a long-term rollin8 maSntenance plan which forms the basis of the on8oin8 maintenance of the estate. The cost of routine corre¢tive maintenance Is char8ed to the income and éxpenditure account as incurred. A provision for dilapidation is made where the lèase &gement requires the University to return the property to the landlord in a specified State. A provision is made for the estimated costs tsf the dilapidation spread over the period of tènanLy. Any increase or decrease in this provision Is charged to the Ststement of Comprehensive Income. 16. Taxatts)n Sta$ The LSniver5ity is a re8lStered charity within the meaning of Part 3 of the Charities Act 2011 and as such Is charity within the meaning of Section 506 of the income and Corporation Tax Act 1988. It is therefore a charity within meaning of Para l of schedule 6 to Finan Act 2010 and accordingly. the UnSversity is potentially exempt from taxatlgn in respect tsf income or capital 8ain5 reteived within cate8ories covered by Sections 478-488 of the Corporation Tixes Act 2010 or Section 256 of the Taxation ol Chargeable Gains Act 1992 to thè extent that 5u¢h income or gains are applied to exclu51vely tharitable purposes. C3nterbury Chrfst Church University receives no similar exemption in respeet of Value Added Tax IVAn. Irrecoverable VAT on inputs is included in the costs of such inputs. Any irrecoverable VAT allocated to tangible fixed assets Is Induded in their wst. Deferred tax is recognised in respect of all timing differences that haveori8inated but notreversed atthe balance sheet date. where transactions or events that Ult in an obligation to pay more tax in the future or a right to pay less tax in the future have otturred at the balance sheet date. A net deferd tax asset is presented in the financial staternents as recoverable and therefore tOgniSed only when, on the basi5 of all available evidenee, it can be regarded as more likely than not that there will be suitable taxable profSts against which to recover carried forward tax losses and from which the futurè reversal ol underlyin8 timin8 differences can be deducted. Deferred tax is measured at the average tax rates that are expected to apply in the periods in which the timing differen$ are expected to reverse based on tax ratesand law5 that have been enacted orsubstantivety enacted by the balance sheet date. Deferred tax is measured on an uniliscountÈd basis. 17. Pen51on S¢hemes Retirement benelits to employee5 of thè University are provided by the Local Government Pension kheme ILGPSI, the Llniver5ity Superannuatlon Scheme (US51 and the Teachers. Pension Scheme ITPSI, All schèmes arè defined benefit 5cheme5 but the USS and TPS sthemes are both multi-employer schemes and It is not P055ible to identify the assets and Ilabllities of the scheme which are attributable to the University on a consSstent and reliable basis. In accordan wlth FRS 102, the USS and TPS pension schemes are accounted for on a defined contribution basis and the contributlons to these schemes 3re included as expenditure in the period in which they are payable in the Statement of Comprehensive Income. 44
srATEMEpif OF PRINCIPAL ACCOUNTING POUCIES (CONTINUED) For defined benefit scherne5 the amounts charged to thÈ operating surplus are the costs arising from employee services rendered during the period and the cost of the plan introductlons, benefit ch3n8es, settlements and curtailments. They are included as part of staff costs. The net irntere5t C05t on the net defined benefit liability is haiged to profit or Ioss and included wilhln finance costs. Re-measurement comprising actuarial gains and losses and ihe return on scheme assets (excluding arnounts included In net interest on the net deflned benelit liability) are recognised immediately IN other comprehensive income. The Universlty has an agreed obligation tofund pa5tdeficitsof the USS and therefore, reco8nise5 the net present value of eontribution5 payable that arise from this agreemenl as a liability in the Balance Sheet. TheTPS is an unfunded scheme and there 15 no liability for past deficits reported for thi5 scheme. The University 15 able to identify its 5hère of assets and liabilitle5 of the LGPS. The movement in the defined benefit liability of thi5 scheme, when adjusted for payrnents into and out of the plan. is charged to the Staiement of Comprehensive Incorne. This cost is the a88reBation of changes In the defined benefi't obligation and changes In plan assets. To identify this liability the assets of the LGPS are valued using bid values. LGPS liabilitie5 are rneasured uslng the projected unit method and discounted at the current rate of turn on a high quality corporate bond of equivalent term and currency to the liability. The increase in the present value of the liabilitie5 of the Scheme expected to arise from employee servlce in the period is charged to Operating Expense5. Note 8. The difference between the fair value of the University's share of the assets held in the LGPS defined benefit pension scheme and the 5¢heme's liablllties measured on an actuarial basis usingthe projected unit method are cognised in the Universitls Balance Sheet as a pens0 scheme asset or liability, as appropriate. The carryin8 value of any resulting pension 5cherne asset IS restricted to the extent that the University is able to recover the surplus through redUd contrlbutions in the future or through funds from the scheme. Artuarlal galns and 105ses. and movements to the defined benefit pension scheme'5 a55ets or liabilities arising from a change in actuarial assumptions are charged to the Statement of Comprehensive Income in accordance with FRS 102. 18. Investments Endowment asset investments a held as cash. Where char¢table donations are to be retained forthe benefit of the Institution as specified by the donors. these are accounted for as endowments in the re5erve5 on the Balance Sheet, The University has two main types of endowments.. Expendable endowments - the donor has specified a partlcular objective other than the purchase or construction of tangible fixed assets, and the Institutlon can convert the donated Sum into Income. Restricted perrnanent endowments - the donor has specif1ed that the fund 15 to be permanentty invested to generate an Income stream to be applSed to a particular gbjective. 19. Flnanclal Instruments The Unfversity does not hold any non-basic ffnanaal Instruments. The primary financial tnstruments are cash, loans, receivables from trade debtors and payables to creditor5 and suppliers. The recognition of trade debtor5 and trade creditor5 15 at fair value. Loans, accruals and prepayrnents are cOgnised at the amortised cost. Financial assets and financial liabilitie5 are recognised when the Group becomes a party to the contractual provislons of the instrument. Financial Ilabillties and equity instrumentsare classified according tothe substance of the contractual arrangements entered into. An equity instrument is any contract that evidefices a residual interest in the a55et5 of the Group after deducting all of its liabilities. 45
sTATEmEr OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) All finantial assets and liabilities are initially measured at transartion price linduding transaction costs). except forthose financial assets tlassified as at fairvalue throu8h profit or loss, whith are initially measured atfairvalue (which is normally the transaction price extluding transactlon costsl, unless the arrangement constitutes a financing transaction. If an arrangement constitutes a finènting trahsaetion, the financial asset or finantial liability 15 measured at the present value ol the future payment5 discounted at a market rate tsf interest for similar debt instrument. Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable ri8ht to set off the recognised amounts and the Group intends either to settle on net basis. or to realise the asset and settle the liability simultaneously. Financial liabilities are derecognised only when the obligation specified in the contract is éi5£harged, cancelled or expires. Assets, other than those measured atfair valtse, a assessed forlndlcators of Impairment at each balance sheet date. If the is oblective evidence of impairment. an impairment loss is retognised in the Statement of Comprehensive Income. 20. Invesimènt In Subsldlarbes The investment irt the subsidiary undertaking is shown at cost less any impairmentvalue. The University carries out an annual impairment review of the investment in the subsidlary. 21. Reserves ReseNes are classified as restrirted gr unrestTlCted. Restricted endowment reserves include balances which, although endowed to the University, are held as a permanently restricted fund which the University must hold In perpetulty. The following réserves are maintained.. Unrestricted- where the reseThe is not restricted a5 to Its use. Designated-this 15 the designated pensions reserve reported in Note 23. Restricted- where the Unlvernity holds funds lor which the donor has placed restri¢tions on their use. 46
Consolidated and University Statement of Comprehensive Income and Expenditure Forthe Year Ended 31 July 2021 Notes Consolld•tÈd Unlverslty 2021 2020 2020 £'(yJo £00 In¢ome Tullle fees and education £ontrètts Funding body8rants Research 8rants and contracts Orher income Investment incrjme 104.169 31,928 Z,093 13,925 li 93.485 10.181 1.644 14,303 75 104,169 31,928 Z.093 93,485 10,181 1,644 14,119 75 li Totsl ihtome 152,126 119,688 152,041 119.504 Expendityre Staff costs Interest and other finaTh co#s Orher operaringe¥peTrses Depreciatlon 3ndAmortlsatlo 75,187 2.218 55,683 8,108 74.234 1,558 42,951 75,106 1.118 55.619 8.108 74.143 1.558 42,843 7,900 9&11 Total Expendlture 141,196 126.643 141,071 126,444 SurpluJllDefldtlfortheyeK befgre los$on dspo$•l OF Ilxed assets Impalrmentof Flxed Assets IL05sI/Proflt on d15pos•I gf fixed 4$$ets 10,930 16.9551 10,970 16,9401 12,0951 1481 0951 1481 436 436 Surplu51 IOel+cltl lortheyeir 8,787 8.827 17.9761 Endowment comprehenslve income for the year Actuarial10s5 in respect of pension scheme5 17 23 142 15571 142 15571 142.1891 142.1891 Totsl ¢omprehen51veSurplu5lltkfidtlfortheyer 8.372 150,IWI 150,1751 Represented by.. Endowment comprehensive income forthe year Unrestricted comprehEThsive1055 forthe year 17 14l 8.230 14Z 9.270 150.1801 150.1651 Sulp1{De1¢rt)fOrthe yeaiattrlbutgblÈtoth* Unr$ty 8,372 150.14>1 150.1751 Strategic Report and Financial Statements for the year ended 31 July 2021 47
Consolldated and Unlverslty Statement of Changes In Reserve5 For the Year Ended 31 July 2021 Cortwlld•ted In¢ome and expendknjre •ce•unt T4>t•l B•l•nco * lAUSt2019 267 9126B DthcirfrDmthe income and eipendlture SLÈment OLher tomprehenslve income 17,9911 142,1891 17,9911 142.1991 Total tOmp¢ehettVe IrKonforth•w•f 150,ts0) 150.1901 B¥lnte It 51¥ X20 257 39 41,078 lanteatl Auw5t2010 257 40,782 41fv Defitit frorn the i£e and e4>endfture statement Othertomprehen5ive income 8,787 15581 8,787 14161 142 Totsl comwehensl4 kncamo lortheyeor 142 8,229 8,371 itJlthJly202I 399 39 49.011 49149 lthlvorslty Intorn#d experOrturea¢count Total £'ooo 267 l•rKe 81 iAu8ust2019 39 91.268 Deficf(fromthe income and expènditure skterynt Other compbe$e Income 17,9761 142.1891 17,9761 142,1991 iioi Yotal comprehensiw In¢omefortht year 150,1651 150,1751 257 39 40.797 nce at31July 2020 257 39 40.797 4L093 BDIBnce•t LAuB41St2020 Surplu5 from the income3Ad expenditsre staternent Othei tompiehensive iT•come 257 797 8.827 15591 41093 8,827 14171 142 Total compr•hw$l¥e ITr*fOrth•ve•T 142 8,268 8.410 Polanc• 31Jul¥ 2021 399 39 49.065 49.503 Strategic Report and Financial Statements for the year ended 31 July 2021 48
Consolldated and University Ststement of Financial Position As at 31 July 2021 2021 2020 As•t311u ConsolKlated EL) •tlU UThlvèr51ty Notes monUrretaSSets T?gIblE a552t5 Assets heldfoi re5a IDvestrneDts 173,211 6J03 175.721 7.575 173213 603 175,721 ?75 450 io I¥M6 193J61 192,7 193.612 193,150 Stock Trwje and other weNable5 Cash and cash eouivalent5 226 24396 30.S93 55,315 282 10.609 2&553 39,444 226 282 12 18 iQ.620 28,185 39.D87 54,997 Le55.' Credltors.. amountgfnng due within one year 13 I500} 150J391 147.8991 Plei¢ytteht Jmetsllhatsilrftiesl 18,37 4,458 8.8121 TotaI45set>kn<uwrentfiabil88 ,0 184,323 198.D70 184,338 Cieditor5.' amounts fèllingdueafter more than onE year 14 165A031 172A241 165.8031 17Z.d241 Prov151on5 Penslon liabil¥ LGPS Other provisions 23 16 176.2291 I635} 167.8441 176,1291 I635) 167,844 Total nEtassets 49A49 41.078 41.D93 Ratrktedrieseywes Irbcome ar expenditure reserve-endowrpTrent ieservè i? 39 a9 itfyre5trfrted Reser IncomeandèxpèndSture reser¥È- ÈndowmeDrreserve In¢rthe aTrd eipendlture- Lotal GDvernmentPension Stheme reser¥ lTrcamÈ ènd expendlture reseThe- unrestricted includes Pell5 17 257 167,8441 108,62S 41.039 999 1762291 12S.294 257 167.8441 108,641 41.054 176.2291 12S.240 Tot•1 F 49,449 41.078 49.SOJ 41,093 The Finèncial Statements on pa9eS 41 tb 72 vie approved and authored fDr the Govetning Body on 23 No¥ember 2D21 and svjned on its bEh4V by.. PrDfE5sor R Thlrunamach•ndran Vice ChèncellfjT Prlncipal Canterbury Chrlst Churth unr51 Re8iStèrÈd tompHny nurnber04793659 LtL M5J Pro-chancdlorlchairof th* GovernlnE Body Strategic Report and Financial Ststements for the year ended 31 july 2021 49
Consolldated Cash Flow Statement For the Year ended 31 July 2021 Year ended 31 July 2021 Year ended 31 July 2020 Notes £'oco Cash flow from operatlng artivities SurplusllDeficitl for the year 8,787 17.9911 Adlustment f¢r nonrfosh ttems Depreciation and amort15ation Impairment charge Decreasellincreasel in stock Ilncreaselldecrease in debtors In¢aSe](deCrea5e) in creditors Increase/ldecreasel in other provisions Pension charge5 9111 8,108 2,095 56 { 13,7871 19.311 3,558 7,969 7,900 1,472 1531 4,668 11,8791 141 4,423 12 13 16 23 Adjustment for investing or flnanclng actl¥ltles Investment Income Interest payable Endowment income Donations Loss/lprofitl on the sale of tangible assets Capltal Grant income Net cash louthowlllnflow from operatlng artlvltles {ii) 1.161 11731 (2031 1751 1,142 I iii 15001 14361 16451 8.011 17 121,0601 15,858 Cash flows from Investing actlvltbe5 Proceeds from sales of fixed a55ets Investment income Payments made to acquire tangible and intanglble assets Payments made to acquire endowment assets Capitsl grant receipts 900 75 141.150 1211 6,395 li 110.6811 1311 9111 17 2114 Net cash inflowlloutflow) from invertlng activities 16,3011 (33,801) Cash flows from fiftanclng artlvltles Interest paid Endowment cash received Donations received New unsecured loans Repayments of amounts borrowed Net lash inflowlloutflow) from finantln8 activities 11.1611 173 11,1421 li 17 203 14,0001 (2,6321 { 7,4171 500 38,000 12,6581 34.711 14 15 Incfease In cash and cash equivalents In the year 2,140 8,921 Cash and cash equivalents at be8inning of the year Cash and cash equivalents at end of the year Stratsgic Report and Financial Ststements for the year ended 31 July 2021 50 18 28,553 30,693 19,632 28,553 18
Notes to the Financial Statements Consolidated & Unlversity I. TVITION FEESAND EDUCATIONAL CONTRAcrs 2021 £'ooo 2020 £'ooo Notes Full-time home and European student5 Full-time Students Overseas Part-time Students 92,670 3.223 5,115 80,142 2,560 5,450 Total fees paid by or on behalf of individual students 101,008 88,152 Educatlon Contracts 3,161 5,333 Total 11)4,169 93,485 Consolidated & UnSversity 2. FUNDING BODY GIIAKrs 2021 2020 £'ooo Recurrent 8rant Ofs Office lor Sludenl Other Bodies Research England Other Bodies Educab"on and Skills Funding Agency Total rècurrent 8rants 5,080 2,630 1.849 9,559 4,964 2,262 893 8,119 Specific grants Ots DHSC Ofs Catalyst Fund Ofs Challenge Competition5 Other Bodies Global Challenges Research Fund Other Bodies Higher Education Innovation Fund Other Bodies QR Strategic Prlorities Fund 2019-20 Other Bodies DfE 92 120 145 79 612 50 zii 120 181 67 532 52 465 Total specific grants 1.309 1.417 CapitalBrant recelved and recognSsed in the year SELEP ors. Cap7tal OfS- Teaching Capital Investment Fund OfS- Research Capital Investment Fund HEE- Kent and Medway Medical School Other- Kent and Medway Medical School Other- Pears 10.620 568 77 83 301 1.546 1,026 Total capital 8rants 21,060 645 Total 31,928 10,181 Strategic Report and Financial Statements for the year ended 31 July 2021 51
Notes to the Financial Statements (contlnued) Consolldated & Unlverslty 3. RESEARCH GRANTS AND CONTRAcrs 2021 2020 £'oc Research Councils 171 46 Research Charltles 372 272 Government UK & Overseas 659 Industry Commerce Public 129 82 Other grants and contrarts 585 2.093 1,644 Consolidated 4. OTHER OPERATING INCOME 2021 £'ooo 2020 Residence5, Caterlng and conferences 6,588 7,616 Other in¢ome generating activities 6.858 6,022 Other grant income 500 Other operating income 479 165 13.925 14,303 Other income generatinB act]tIeS above include Teach First, consubtancy fees and consultanry contracts. social work and community engagement. Included in other Brant income is £381k daimed in the year through the Government's Coronovirus job rentIOn scheme for furloughed staff12020: £468kl. Consolldated & Unlversity 5. INVESTMENT INCOME 2021 2020 £'ooo Bank interest receivable li 75 li 75 Strategic Report and Financial Ststements for the year ended 31 July 2021 52
Notes to the Financial Statements (continued) 6. STAFF COSTS All Siaff are empbyed by Canterbury Christ Church UnweT5ity. The average monthly number of person5 ltncluding senror post holders) ernployed during the year. eXpSed as full time equivalents was.. Consolldated 2021 Number 2020 Number Academic Staff 573 615 Professional Service Staff 678 709 Academic Support Staff 229 208 Total 1.480 1,532 2021 2020 £'cuo Stall costs Wages and 58laries 59,771 57.495 Social security costs 5,100 5,652 Other pension costs IOJ16 11,087 Total 75,187 74,234 The other pension costs represents ihe total value of contriiiutions due in the year to TP5, US5 and LGPS. An additional c05t of £6,775k 12020.. E4.007kl is recognised within other operating expenses relating to the balance between the contributions due to the IGPS and the artU3rially calculated Service cost. The total expense recognised for the year can be seen wlthSn note 23. Included in Wages and salaries and other pension costs arè severance payment5 Of E936.013 for 67 members ofstèff12020.' £574,468 lor 36 members of staff). KÈY management personnel Key management peOnnel are those persons having authority and responsibility for plannin8, directing and controlling the activlties of the University, Stsff costs includes compensation paid to key management personnel. Compensation consists ol salary and benefits, including any employerfs pension contribution. The Key Management Personnel in the University are members of the Senior Management Team. In 202012021 the number of 5eNin8 members of the manaEEment team was 13 12020.. 131. During the year the members of the Senior Management Tearr took a redurtion in salary to support the University during èn uncertain and thallenging year. 2021 2020 Key management personnel compensation 1.331 1.527 Strategic Report and Financial Ststements for the year ended 31 Juty 2021 53
Notes to the Flnancial Statements (continued) 6. STAFF COSTS ICONTINUEDI Hlgher pald staff 2021 Number 2020 Number Salary Range £105,000 to £109,999 £125,000 to £129,999 £130,000 to £134.999 £140,000 to £ Im,999 £145,000 to £149,999 The emoluments paid to the five rnembers of the Governing Body12020: 51 and thelr accrued benefrts under defined beTrefrts pension schemes are shown below: 2021 £'ooo 2020 £'ooo 435 39 474 Salaries Employer's pension tontribuiions Total 37 433 Emoluments of the Wiee4hancellor, belng Ihe hlghest pald dlre¢tor 2021 2020 £'rJ)o 265 Salary Employer's pension contributions Total emoluments of the Vice-chancellor 236 241 270 The emoluments of the Vice Chancellor are shown on the same basis as for higher paiil staff. There have been no non-taxable or taxable benefit5 paid to the Vice Chancellor in the year other than those that are for the reimbursement of business travel and other business expense5. These are claimed In line wlth the Universi$ staff expenses policy. The Vice Chancellor's expense claims and charges are shared on the University's public website. The Vice Chancellor has enhanced opt out membership of the USS Pension Scheme, and therefore, the contribution made by the Universrty to the scheme on his behalf is at the significantly lower contribution rate of 2.0% 12020: 2.0%). The total emoluments have reduced in 202012021 as the Vice Chancellor opted to take a reduction of salary in year in support of the University during what was a very uncertain and challenging lime. The pay ratio of the Vice Chancellor's total ernoluments as a ratio to the median of the total emoluments for all staff 15 7.97'.112020'. 7.92..11. The pay ratio of the Vice Chancellor's basic salary as a ratio to the me(Ilan of the basic salary of all staff is 7.83-112020.. 7.83-.11- These calculations are based on a full time equivalent basis for all staff employed by the Universlty whose payroll charBe5 are included in the real time Informatlon report to HM Revenue and Customs. Strategic Report and Financial Ststements for the year ended 31 july 2021 54
Notes to the Financial Statements (continued) 6. STAFF COSTS ICONTINUEDI Dlrertor5' Emoluments The remuneration of the Vice-chancellor is determlned by the RemuneratSon Commrttee which is made up I In(lependent Members only and chaired by the Deputy Chair of the Governing Body. From November 2018, t Committee was supplemented to include an external member who Is not a member of the Governlng Boil. This member ha5 met with staff governors and student representatives to understand their perspectNes. Froi 2021122, following an amendment to the Articles of Governance, the student governor will be joining t membership of the Committee. The decisions of the Remuneration Committee are rekK)rted in writing to t full Governing Body. The remuneration of the Vice-chancellor is determined by the Remuneration Commtttee based upon an annu. appraisal against objectives carried out by the Chair of the Governing Body IPro-Chancellorl. Any annu. increase in the Vice-chancellorfs pay is based on a senior salary framework, which was approved by t Rernuneration Commlttee in 2014, and applies equally to all members of the Senior Management Team. T framework 15 based on 3 3-point scale for assessment and performance- exceptional, excellent and requirlr improvement. The pay increase for an 'excellent' ratrng is pegged to the annual national pay award for all sta 11.8% In 20191201. Where an exceptional rating has been achieved the pay increase 15 normally an addrf(ion This year, the Committee consrdered the Pro-chancellorfs review of the Vice-Chancellorf5 performance I 2020121 and agreed with the Pro-chancellorfs assessment of the Vice-chancellorfs exceptronal performanc and noted that he continued to be an asset to the University. However, in line with the agreement for seni( staff this year. no pay award was made. During the year, the Vice-chancellor voluntarily took a pay reduction I 20% between August 2020 and February 2021 lan annual reduction of Il%1. The current Vice-chancellor has been in wst since 2013 and his remuneration reflects his considerab experiente gained through a number of senior roles within the Higher Education sector and the Civil Servic, His personal performance In 2020121 was rated as exceptional as the University has brought to a Sucssf1 conclusion the implementation of a widened academic portfolio with the establishment of a new School Engineering and the Kent & Medway Medical School tiointly with the University of Kent) which accepted its fir,. intake of students in September 2020. These two major inltlatives, which have been implemented successfull. remain a significant basis for confidence in the UniversiWs strategic development and sustainable future. Th Vice-chancellols leadership in successfulty steering the University during the pandemic was als acknowledged. Strategic Report and Financial Statements for thè year ended 31 July 2021 55
Notes to the Flnancial Statements (contlnued) 7. Il+rrEREST PAYABLE ANDOThER FINANCE COSTS Consolldated & Unl¥erslty 2021 2020 £'o 1,142 416 Bank loans not wholly repayable within five years Net char8e on pension schemes 1,161 1.057 Total 1218 1,558 Consolldated & ANALY515OFTOTAL EXPENDITURE BY AcnviTY 2021 2020 £'ooo AcademSc departments Academic seryt5 departments Administration and central servi$ Premises ResIdenS, catering and conference5 Research grants and tontrarts Other expenses Depreciation Interest payable and other finance c05ts 66O89 4.981 28.319 17,791 9,724 2.133 1,433 8.108 2,218 61,772 4.838 25,678 11,592 9.641 1,911 1,753 7,9 1.558 141.196 126,643 Consolldaied 2021 2020 £'ooo 53 Other operating expenses include.. Fees payable for auditing of the financial statements of the parent company Fees payable for auditing the subsidiary companv 39 Other fees payable to the group audltor- grant and pension assurance review 12 Operating lease rentals- land and buildin8S 7,744 8.440 Operating lease rentals- equipment 144 139 Sa ACCESSAND PARTICIPATION 2021 2020 £'ooo 756 3,098 489 Access Investment lil Financial Support Dlsability Support lil Research and Evaluation 720 1680 1.016 4.424 4,351 lil £1.356k of these tosts are included in the staff cost figures included In the financial statements. note 6,12020- £857kl. Not included in the financial support provided to students in the note are funds totalling £845k received from the Ofs to support Students facing hardship as a result of the COVID-19 pandemic. All funds received were paid out to help students in the year. The published Acce55 and Participation plan is available 3t'. htt ww.can rbu .ac.u ch Strategic Report and Financial Ststements lor the year ended 31 July 2021 56
Notes to the Flnancial Statements {continued) 9. TANGIBLE A55Ers Cmsolidoted and University Flxtures, Flttlng5 and quiprnent Freehold Land and 8uildln8S Asset5 under Construction Plant and Mathrnery Total Cost and deemed cost for land and bulldln85 £'ooo £'ooo £.0 At l August 2020 Addlon$ Transfer to Intangible Sets A55et5 coming into use lrnpairrnents Disposals 123,129 62,712 7,003 13491 167.2681 25.191 7.379 218,411 7.003 13491 61.115 11,6051 IS21 6,072 81 11,6051 15121 14601 At 31Juty 2021 182.587 2,098 30,803 7A60 222.948 Attumulated depreatIon At l August 2020 Charge forthe year 121,5821 13.9531 116,9221 13,0031 14.1861 15541 142,6901 17,5101 Transferto Assets held for Resale Dlsposals 19 445 464 At 31July 2021 12S,S161 119A791 14,7401 149,7351 Net book¥alue At 31 July 2021 157.071 2.098 11.324 2,720 173,213 At 31 july 2020 101,547 62.712 8.269 3,193 175,721 Flnanced by capltsl grant: At 31 Juty 2021 20.090 970 21,060 At 31 July 2020 568 77 645 As part of the trBnsitlon to FRS 102 the University'5 Ihnd and buildin85 were valued at 31 July 2014 by Strutt and Parker. zn external valuer. in accordance with RICS ValuatI- professional stsDdord5. Herit•ge Assets HÈrstige assets held by the University conysts of athJc*k ènd assets of cultural interest d15played in the UnNer5ity'S campuses held In perpetuity- The total e5tirnated value of the 355ets as determined in April 2021 is £169,550 (February 2020., £171,4COI. The recognition volue of all Items 15 based on the insuranc2 replacement C05t. The herltage a55ets are not depreclated as their Indivldual value, other than fer Insurance purpose5, 15 not known. These asset vèlues are not included In the tsngible asset note. There were no tangible 355ets held bythe subsldiary cornpèny. Strategic Report and Financial Statements for the year ended 31 JU 2021 57
Notes to the Financial Statements (continued) TANGIBLE ASSETS HELD FOR RESALE Consolldated and Unlver Freehold Land and Bulldln Total 2021 £'ooo 8,906 2021 £'ooo 8,906 2020 £'ooo 10,378 Carrylng Value As at311u2020 Depreclatlon At l August 2020 11,3311 11,3311 11,1041 Charge for year 11821 11821 12271 At 31 July 2021 11,5131 {1,5131 11,331) Impairment Charge 14901 14901 11,4721 As at 31 July 2021 6,903 6,903 7,575 The University Is planning to dispose of two major assets, Hall Place and the campus buildings at Broadstairs. The impairment review In 2020 of these propertie5 led to an impairment charBe of £1.472m to bring the carryin8 value to reflert the lower of expected resale value and net book value, in line with the accounting policy for assets held for resale. At the end of the finantial year 2021 a further review wa5 carried out and a reduction of the tarrying value of the Broadstairs propertle5 was required, leading to an impairment charge of £490k. Strategic Report and Flnancial Statements for the year ended 31 Juty 2021
Notes to the Financial Statements (continued) 10, FIXED ASSET INVESTMENTS Shares / Capital Contribution Loans Total £'o 450 450 At I August 2020 and 31 July 2021 450 450 Medco ICCCUI Limited had Share capital of 10,OTr),O(X) El ordinary share5 of which 4,500.002 weie Issued. all owned by Canterbury Christ Church University. £4,500,000 of the £1 ordinary shares were converted from issued and paid up redeemable preference shares at an Extraordinary General Meeting on the 7 November 2006. At an Extraordinary General Meeting held on 26 October 2009, Canterbury Chrlst Church University agreed to a voluntary reduction in its Share capital from £4,500,002 to £449,999. The subsidiary company Medco ICCCUI Limlted had been dormant from July 2012. The company was reactivated and started trading as an agency for temporary staff from l February 2015. The results of the subsidiary company have been consolidated wlth the parent compartls Statement5. The registered address of the subsidiary company ts the same as the parenL Rochester House. St Goerge's Place. Canterbury, Kent. CTI IUT. The Directors and Governing Body believe that the carrying value of the investrnent is underpinned by the operational value the business provides to the parent company. This support is In the form of agenty workers ID a range of role5 Wlthin the University, and to students and 8radu3tes in the form of employment opportunities. Strategic Report and Financial Ststements for the year ended 31 July 2021 58
Notes to the Financial Statements Icontinued) 11. INTANGIBLE Assrrs cons011dad •nd Uni¥•rslty Assets In developmerrt Softw•re £'ooo Total e'ooo At I Au8USt 2020 8,266 1.376 9.642 Transfers frorn Tan8lbk Fixed Assets Addltions 349 3,709 349 Asset5 coming into use 11,6471 1,647 At 31 July 2021 10,677 3.013 13,700 Amorti5•tityi At l August 2020 238 Char8e for the year 416 416 At 31Juty2021 654 botskvae At31 July 2021 10,677 2,369 13N46 At 31 July 2020 8,266 1.138 9,404 Intangible assets include the softwove a55ets that are being developed and the development ¢ost olihe PAedical School pro8ramme. Strategic Report and Financial Ststements for the year ended 31 Juty 2021 59
Notes to the Financial Statements Icontinued) 12. TILIDE DEBTORS AND OTHER RECEIVABLES Consolidated Unlvernlty 2021 2020 £'ooo 2021 2020 £'ooo Trade debtors Prepayments and accrued income Amount owed by subsldiary companv 18A74 5.522 5,024 5,585 18,865 5,522 5,007 5,585 28 24,396 10,609 24.387 10,620 Funds for partnership delivery has been received as intome and a proportion of this 15 due to the partner, leading to an inere8se in Trade Debtors ès reported at 31 July 2021. 13. CREDITORS: AMOUNTS FALUNG DUE WITHIN ONE YEAR Consolldated University 2021 2020 £'OOD 2021 £'o( 2020 E'QCX) aank loans Trade credito Amount owed to subsidiary company Taxation and soclal security Accruals and deferred income Oeferred Capital Grants 2.621 13.839 2,632 11,351 2.621 13,839 132 2,632 11,369 150 2.904 14,184 16,660 2.967 31,034 2,904 14.274 16.660 2,967 30,980 50,461 47,821 50.539 47.899 Amcunts owed to the subsidiary cornpany and arnount5 owed by the parent company are unsecured, interest free and repayable 30 days Irom the dare of invoice. The bank loans relate to the c8Ptal repayment of loan finance to support the campus redeveloprnent, the purchase ol the prison and student accornmodation in 8roadstairs. Although not secured on asset5 of the UnNersity. the loan agreement restricts further borrowing and indebtedness. A5 at 31 July 2021 the University has a tditOr of monies owed to the University of Kent by Qnterbury Christ Church University of £15,01112020'. a debtor of £190.740 was rted1. Thi5 is included in accrued expenditure. ThLs Is beln8 reflected as a debtor In the financial statements of the University of Kerrt. Strategic Report Financial Statemems for the year ended 31 july 2021 60
Notes to the Financlal Ststements Icontlnued) CREIXTOR5'. Nh10UP4TSFALIING WE•mRMOREThANONEYEAR CoTrsc4id•th6 2011 20Zi £wo Se)Jd knan$ 3L103 34.424 3&0DJ 72.424 34,424 31L 72,424 RI01Th8Credlf Facllitv 65.803 The Re¥oMn8 Credit FACi1ty 15 IDan finantÈ provvjed pjinily Uovds and Natwe$i banks. The creolt facilny conrts to kJn8 teirn finoDce. th repayrnentof IDancapkal dueiDctymmence In 2023. ThÈ103n5 hdtth Uoyd5 Bank hw sÈcu1edowerrhefreeholdlandandbuikJBs intluded InTanE1bfÈd •sset$ In note9. Intere AmryJn¢ ArDWId 41JlJu J1 IUlrtA¥I Lyth6in¥ 25 0.3S 1.14B 5fjp2 Y4 Y.176 137$ 173 t7.0 Aw2ts3J ioi 1T.r 19.00 1T.L¥ 2D3Y 2Jl 17.D 1*QOO Fib 74 T•MI Ihe RevolvlnE Credit Facility lolfit prtrJided by Utyds and N8tWest bank5 to further support the E5T41es Master Ptsn. Thls a 1n of £47.(,0 held on a I¥ble b45is for fve years with the optlon to convert to è terrn loan at the end of thls Initial peiiod. Th•r• is a nw- utlllsationclwr¥e whiliE the lunds remain cotnrnitted butundrawn ofO.G%.Thischarge expensed tothe StsternentDf Comyehenslve Inc(xhe. The iotal bJLinTr drnwn On the RCF 45 at 31 2021 wa5 £34m, aVIng £13m uDdi3wn in the facilrty12020.. £38rn drawn, leavin8 É9m to bR uiiitsedl. Strategic Report and Financial Ststements for the year ended 31 July 2021 61
Notes to the Financial Statements {continued) 15. BORROWINGS (CONTINUED} Consolldated and Unlversity 2021 £'ooo Bank loans and overdrafts Bank loans and overdrafts are repayable as follows.. 2020 £'ooo In one year or less 2,621 2,632 Between one year and two years 2.613 2.621 Between two and five years 7.597 7,748 In five years or more 55.593 62,055 Total 68,424 75,056 16. PROVISIONS FOR LIABILITIES Con501idated and University 2021 2020 Dilapidation provision at the start of the year 1.400 970 Additions in year 1,042 445 Released 1151 At 31 July 2,442 1,400 The University has provided for the potential future dilapidation costs in line with the substance of the work5 required. 2021 £'ooo 2020 £'ooo Other Provlsion5 Provisions èt the start of the year 1,577 2,011 Additions in year 2,516 Released 14341 Provlslon at the end of the year 4,093 1.577 Provision 15 made for the retym of unused fvnding from prior years and an estlmate of the net pension liability frorn the pension cost5 of the Universities Superannuation Scheme. Strategic Report and Financial Ststements for the year ended 37 July 2021 62
Notes to the Financial Statements (continued) 17. ENDOWMENTS Consolldated and Universlty 2021 2020 Expendable Restricted Permanent Total Total £,0 £'ooo £'ooo Opening balance at l August 2020 Capital 257 39 296 306 moveme for the year to date Investment income 173 173 li Expenditure 1311 (311 1211 142 142 (ioi Closln8 balance at 31 Juty 2021 399 39 438 296 Represented by: Capital 399 39 438 296 The above amounts are represehted by cash balances Representlng: Specific donatlons Scholarships and bursaries 187 202 Prize funds 213 36 249 92 399 39 438 296 Strategic Report artd Financial Ststements for the year ended 31 July 2021 63
Notes to the Financial Statements (continued) 18. CASH AND CASH EQUIVALENTS Unlverslty At 1st Au8USt 2020 £'ooo Cash Flows At 31st Julv 2021 £'ooo Balance at bank 27,887 2,053 29,940 Cash & cash equivalents - endowment a55ets 298 146 28.185 2,199 30,384 Consolldated At 1st August 2020 £'ooo Cash Flows £'ooo At 31st July 2021 É'ooo Balance at bank- Univer51ty 27,887 2,053 29,940 Balance at bank - Medco ICCCUI Limited 368 1591 Cash & cash equivalents- endowrnent assets 298 146 28,553 2,140 30.693 19. CONTINGENT LIABILITIES There were no contingent Ilabilities as at 31 July 2021. Strategic Report and Financial Statements for the year ended 31 July 2021
Notes to the Financial Statements (contlnued) 20. LWE OBLIGATIONSATrID OThER COMMITMENts At 31 July 2021. Canterbury Christ Church UnlversTty had annual ¢ommitments under non*ancellable operatlng leases as follows.. 2021 Plint and Mathlnery £'fy)o Lamd •nd Buildu$ rot 31Juty 2020 P¥kl durfjng they•ar 4917 1.927 7,506 Futtwe mlr4mum lease payments due.. Not laterthan l year 4A91 1.731 6,222 7.274 Later than I yearand not later than 5 years 2011 6.420 26,931 27,320 Laterihan 5 yea 60131 66,720 68.503 Totsl lèw p•yfflqnts the 85A33 99A73 103.097 The University had outstandlng financial Commitments In the form of trn purchase orders with a total value of £7,418.293 at the year end12D20.. £8.953,9421. These orders do forrn part of the above lease commitments. Other comrnltments consistof longterrn arrangementsforthe use of Pob Farm facilltles bythe University for a tem of 65 vears. Future mlnlmum payment5 due.. 2021 £.0 2020 £,0 Not laterthan l year 317 318 Laterthan l ye3r and notlaterthan S years 1266 1.271 Laterthan S year5 16.904 17,291 18A87 18,880 21. RELATED PARTY DISCLOSURES Canterbury Christ Church Universlvs subsidiary company, Medco ICCCUI Lirnited trades as a Unitemp5 Stafflng agency, under a franchlse arran8ementwith Warwlck Universlty Enterprises rnIted. The ultimate controlliTh8 party of the subsidiary company Is the parent cornpany. the Unwersity. The 5ubsidi3ry cornpanrfs results have been conSolSded wlth the parent company In these finandal statements. Fundin8 council grants are disclosed on the face of the statement ol tamprehen5ive 1me ènd in the levant notestothe financial statements. 22. EVENTS AER THE REPORTrNG PERIOD Therea no events to report afterthe pOrtin8 period. Strategic Report and Financial Ststements for the year ended 31 July 2021 65
Notes to the Financia5 Statements (continued) 23. PENSION SCHEMES The three principal pensim schemes lor Canterbury Chrlst Church University's staff are the Teache15 Pension Scheme ITP51, the local Government Pension Scherne ILGPSI and the Univer51ties Superannuation Scheme IU551. The are defined benefit schemes. The TPS and USS heMeS are both multi- employer Schemes and it is not Possible to identify the asset5 01 the schemes which are attributable to the University on a consistent and reliable basis. In accordance with FRS 102 the USS and TPS penslon schemes are accounted for on 3 defined contributions basis. The contributions to these scheme are included as expenditure in the period in which they are payable in the Statement of Comprehensive Incorne. The University has an agreed obligation to fund past deficits of the USS and therefore. reco8nises the contribution5 payablethat arisefrom the agreerneni as a liability in the Balance Sheet. The TP5 Ss an unfunded scheme and therefore, no liabllky for past defi£(t5 are reported. The total employer's pension contributionfor Canterbury Christ Church Universitywas.. 2021 2020 Contribution toTPS 6,7Jl0 Contribution to LGPS 3,942 4,061 Contributlon to USS Z75 286 10.316 11,087 Percentage employers contributions to TPS as at the veèr end 23.6% Percentsge employers contdbutions to LGPS as at the year end 17.5% Percentage employers contributlons to USS as atthe year end 21.1% The assumptions and other data relevant to the determination of the contribution levels of the scheme5 are a5 follows-. TP5 31103116 LGP5 31103119 USS 31103118 Latest artuarial valuatlons Pfojerted Unil Projerted Unit CPI +0.14% to + 1.55% Artuarlal Mèthod Pr05pertlve ber*frts Discount rate 5.30Y. 4.70% RPI le55 RPI/CPI Bap Salary scale increases per annurn 4.20% 3.60% Pension increases Der annurn 4.00% Market value of assets at date of18st valuaiion £6.218m £63,OLNJ.7m Nominal market value of assets at date of the last valuation £196,100m £6.193Tv Proportion of member5 accrued benefits covered bv the actuarlal value of 555et5 92% 98% 95% Stratsgic Report and Financial Ststements for the year ended 31 Juty 2021 66
Notes to the Flnanclal Statements (continued) 23. PENSION SCHEMES ICONTINUEDI The most cent valuation of Kent'5 Local Government Pension Scheme at 31 March 2019 records a deficit of £129m, equivalent to a funding level of assets to Ilabilf(ies of 98%. The Teachers, Pension Scheme valuation at 31 March 2012 reported the scheme as havin8 a notional deficit of £15.0 billion. In the valuation report for the year ended 31 March 2016 the notional deficit increased to £22.0 billion. The latest Universltie5' Superannuation Scheme valuation at 31 March 2018 indicated that the scheme had a shortfall or deficit of £3.6 billion, equivalent to a funding level of assets to liabilities of 95%. Teachers. Penslons Sthem? The Teachers, Penslon Scheme ITPSI is a statutory, contributory. defined benefrt scheme. The regulations under which the TPS operates are the Teachers, Pensions Regulatlons 1997, as amended. 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 hher education. Membership is automatic for full-time teachers and lectUrS and from l January 2007, for teacher5 and lecturers in part-time employment following appointrnent or a change of contract. Teachers and lecturers are able to opt out of the TPS. The Teachers, Pensions Regulations require an annual accouni, the Teachers, Pension Account, to be kept of receipts and expenditure lincltjding the cost of pensions, increases). From l April 2001. the Account has been credited with a real rate of return lin excess of prlce increases and currently set at 3.1%1, which is equivalent to assuming that the balance In the account is invested in notional investments that produce that real rate of return. Not less than every four years the Government Actuary, uslng normal actuarial printiples. tonduct5 a formal actuarial review of the TPS. The aim of the review is to specify the level of future contributlons. The contribution rate paid into the TPS is assessed in two parts. First, a standard contribution rate ISCRI is determined. Thls is the coniribution, expressed as a pertenta8e of the salaries of teachers and lecturers in service or entering service during the period over which the contribution rate applies, which rf It were paid over the entire active service of these teachers and lecturers would broadly defray the C05t 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. Although teachers and letturers are employed by various bodies. their retirement and other pension benefits, including annual increases payable under the Pensions Ilncreasel Arts, as provided for in the Superannuation Act 1972, are 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 arran8ements governed by the aljove Act. The stheme 15 accounted for as rf it is a defined contribution scheme. Stfategic Report and Financial Ststernents for the year ended 3 1 July 2021 67
Notes to the Financial Statements (contlnued) 23. Pension Sehemes Icontbnuedl UnlversltlesSuperannutiw 5them• US5 is valued every three years by profèssionally qualffied independent actuaries usinE the projected unit method, the rates of contrsbJtion paY2e bein8 determined by the trustees on the advlce of the artuaries. In the intervenlngyear5, the USS artuèry review51h2 pro8re55 ofthe VSS scheme. The contribution rate payable by Canlerbury Christ Chureh University to USS 15 21.1% of pensionabte l&rie5. artuary to USS has confirmed that It is approwiate to take the pÈnsion Costs in Canterbury Christ Church UniVerS finzncial ststements to be equal to the attual contributions pèid during the year. lo p8Clar, the current contribution rate has regard to the surpluslldeficitl disclosed. the benefit improvements introduced subsequent to the valuation and the need tLI spread the surpluslldeficr(I In prudent maTrner over the future worklng lifetimÈof currentscheme member5. Be¢au5e of the mutual nature of the scheme, catery Christ Churrh University 15 unable to identify its share of the underlying aets and liabllltle5 of the scheme on a wn5iStent 3nd rea50Tr3ble bays an therefore, accounts fw the scheme as Sf it were a defined contribution 5cherne. A5 a result, the arnount char8Ed to the inwTne and expenditure account represent5 the corntributions payable to the sthemÈ in resppct of the accounting yeor. The liability for future payments Is included In the balan sheet as a pro$10n. Local Go¥emrnrt Penslon SthemÈ The LG is a funded Scheme and is vèlued every three veèrs by artU4rie5 Using the projected unit rnethod, the rate5 of contribuyon payable bein8 determined by the members of Kent County Covncil Superannuation Fund on the adwce of the actU3rfes. In the inteNeningyear5, the LGPS acbJary review5 thE pro8re55 of the LGPS srheme. For LGPS, the èctuary has inditatetl that the resources of the scheme are likely, in the nomial course of events, t¢ meet the lièbilities as they fall due at the level specified byihe LGPS Re8ulatSon5. Under the deflnStlons set out in FRS 102 the LGPS 15 a mulb-employer defin benefit penslon scheme. In the case ol the LGPS, the attuary of Ihe scheme has 1dEntrfd Canterbury Christ Churth Univers5 share of ¢tS 355ets and liabilitles asat 31 July 2021. The pension scheme assets are held in a separate trustee administered hjnd to meet Ion8-terffl ppnsion liabilitie5 to past and present employees. The trustees of the fund are required to act in the best intest$ of the funds, b2nefrciaries. The appointment of the trustees of the fund Is determined by the scheme's trust documÈntstion. ThÈ trustees are reswnsible forsetting the Investment strategy for the scheme after consuitstion with professional adv150rs. The si81)Ificant assumptlons used bythe actu3ryft)r FRS 102forthe LGPS at 31July 2021 were.. 2021 2020 Xpa %pa Inflatronl Pension incre3se 2.60 2.20 Rare of increase in larIeS 3.10 1.89 Dls£ount rate for liabilities 1.60 1.60 It 15 accepted there 15 a potential financial impactto the cholce of assumptK&ns èpp11ed. The Vniver&ty has on51dered the a55umptlons for the year in comparlson to assumptions applied by other institutions at)d selected th05ewithin the mid range of the sector. Strategic Report and Financial Statements for the year ended 31 July 2021 68
Note$ to the Flnancial Statements Icontlnued) 2 pENSN SiYEME5ICONT¥IUEDI The PDSI retirement tnortaltty tsIe& 8dopred a the53A tabs. Thes¢ basttaWe5 Jrethen projected usihgthe CMI 2020 mDd21, wtwch was reaSed in Mèrch 2021. This update w45 m7de In lightof1F COVltk19 pandernic and rellects Igtem IDlom)atson availabie from thi CMI. The $3 tsb1 prole for a Mll1er of Illl£ for rnales and IIS% for femas.The basÈtstAe$ are proJe¢reOwlth J bngterm tate tsf imwovernentol 1.25% pa.. a smoDthinE [amEleT0t 7.5. art In•1 pJrarneterQlO.S%a è2020weightireo125% TheJ55umedlrfeeApÈttthn5frorn¥ge65are' FefflDks Current Pen5iikier5 FuturepenOne 21.6yoars 21.9years 23.6years E'OOO Adlu5tmentto diXOuTrt r4te 41.1% 229.495 11613 218.589 11.728 223.973 Proleaed ser¥lce co AdJu5tmntto k>n6t4nnghry IntrMFe Presentyèlue oltota obll8ati Pr•ie¢tsJ senrite r05t +tslX 224A73 11170 223,973 12,163 223A78 12.157 d•f•rr•4 228,936 I2,8 223,973 12,163 219.131 11.732 Prolectedservi¢¢$t Adlurtmryntto IlleexpettaKya$su1h presentva1ueofiotoloblwon Proieaed setvlce cott 133,070 12.676 223.973 IL163 215.240 11,669 Thoassèts IntheLGPSscherneandtheexp¢tted thof rewrn forCaterrythri$1ChurCh Unfversitywere.. Value 31 Ju201 £No 1021 Equityes fjitts Bonds Prty ash Aisoluterthinfrjnd 81,234 20.573 16.194 13.779 3A19 9548 IOJ73 125.416 ValuEat JIJY Value 311uty 202Q Yotsi mark•tv•lue ofas5•ts 147.744 125,416 PrE5entvalueof scheme liabilitiE5 1223,•621 1193,2481 presentlue0f L4ifunded liabilts {1 Dehtitith•ith•my-net PETrsknThllat4Ity Strategic Report and Financial Ststements for the year ended 31 july 2021 69
Notes to the Financial Statements (continued) 23. PENSION SCHEMES (co[NUED) 2021 2020 Reconciliati¢Jn of Defined Bement Obllgatlon Opening Delined Befteffit Obllgatlon Current Service C05t Interest Cost Change in flnancial a5sumption5 Change in demographic a55UmPtions" Contributlons by Member5 Losses on turtailments Estimated Unfunded Benefits Pald Estimated Benefits Paid (net oltransfers Inl Experience Igalnllloss on defined benefit obligatlDn Closlng Defined Benefit ObllRatlon 193.260 10,743 138,837 8,328 23.657 12,3851 1.510 43 23,888 lJ,5311 1,624 12,3591 13,5811 223 973 12,3571 23.559 The change in demographK assumptlons reflectsthe outcome of the recent McCloud/SarEeantjudgernent. RKonciliaiion of Falrvalue of EmployerA55ets 2021 2020 £'ooo cening Falrvalue of Employer Assets Interest on assets Return on assets less Interest AdmiThistrètion Èxpenses Contributions bythe Employer Contributions by Members Other Aciuari81 gains Estimated Benefits Pald includifig unfunded benefits 125N16 2,033 17,134 117.589 2,508 572 1651 4.392 1.624 L.155 12,3591 4,IL 1,510 12,3601 C105in8 Fair Value of Employer Assets 147 744 125 416 The total retum on the fund assets for the year to 31 July 2021 was £19,167,000. scheme a55ets do not hlde any Canterbury Chrlst Church University owned financial Instruments or any property occupied by Cantert)ury Christ Church Universlty. 2021 2020 £'ooo AnalysS5 of the amount shtyfi in the bilanee sheetfor LGPS.. Scheme assets Scheme liabilities Denclt In the 5theme-nd Pen0 liabifity recorded wlthln pen51on5 pro$bon5 147,744 1223.9731 176.2291 125,416 1193.2601 167,8441 Current service CD5t includin8 Curtailments Admln charge Totsl operatin8 ch•r8e: 10.786 8,334 65 8.399 10.875 Aholyslsof the amount thory¢d 10 Ihr¢st payablefor LGPS Interest cost fh•rgeio other finan Income 1,053 1,053 400 400 Total pmfit and10s5 tharge before deductlon foi tax Analws of othef compr•h•h$t In¢omelor LGP5: Gain on assets Other3CtuaTlal Kalnslllowsl on assets Chan6esto demographic a55umptions Flnancial assumption changes Experlence gainlllossl OTh defined beneflt obli8ation Total other comprehensr¥e in¢tyne before dedudon for tax 17.134 572 1,155 3.531 123,8881 123,5591 2,385 123,6571 3,581 557 Strategic Report and Financial 5tstements for the year ended 31 July 2021 70
Notes to the Financial Statements {continued) 24. FINANCIAL INSTRUMENTS Consolidated 2021 2020 £'ooo Flnancial Assets Financial Instruments are debt instruments measured at amortlsed cost Cash and cash equSvalents Trade and other debtors 30,693 19,627 28,533 6,371 50,320 34.904 Financlal Llabllities Financial liabilities measured at amortised cost Loans Trade creditors Other creditors 68.424 13,664 31,034 75,056 11,351 14.274 113,122 100,681 Unlverslty 2021 £'ooo 2020 Flnancial Assets Financial Instruments are debt instruments measured at amortised cost Cash and cash equivalents Trade and other debtors 30,384 19,617 28,185 6,354 50.001 34,539 Flnanclal Uabilities Financial liabilitie5 measured at amortlsed cost Loans Trade creditors Other creditors 68.424 13,664 31,112 75,056 11,369 14,334 113,200 100,759 Stratsgic Report and Finanoal Statements for the year ended 31 July 2021 71
Notes to the Financial Statements (continued) 25. STUDENTSUPPORT FUNDS 2021 Total £'ooo 2020 Total £'ooo DfE 8ursarie5 Funding Councll grants 5,487 4.497 Balance brought forward from previous years 169 397 Oisbursed to students (5,3941 14,7251 262 169 HEKSS Paramedi¢ Bursaries Funding Council grants 37 257 Balance brought forward from previous years 1211 1241 Travel expenses p3Sd to students 1171 Disbursed to students 1361 12371 1201 1211 Strategic Report and Financial Statements for the year ended 31 July 2021 72