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2022-07-31-accounts

HIGHER EDUCATION POLICY INSTITUTE

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

The MGroup Partnership Chartered Certified Accountants

4 Witan Way Witney, Oxon OX28 6FF

Company Registration Number: 04503712

Charity Number: 1099645

HIGHER EDUCATION POLICY INSTITUTE

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

CONTENTS PAGES
Reference and administrative details 1 to 2
Trustees' report 3 to 8
Independent Examiner's report 9
Statement of financial activities and income and expenditure account 10
Balance sheet 11 to 12
Statement of cash flows 13
Notes to the financial statements 14 to 25

HIGHER EDUCATION POLICY INSTITUTE

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 JULY 2022

TRUSTEES AND DIRECTORS

Professor Dame Helen Wallace Sir David Robert Bell Mary Curnock Cook CBE Professor Dame Sally Louise Mapstone Professor Dame Julia Goodfellow Appointed 1 October 2021 Professor Sir Ivor Martin Crewe Resigned 1 October 2021

COMPANY SECRETARY

The company does not have an appointed secretary

REGISTERED OFFICE

80 Mount Street Nottingham NG1 6HH

COMPANY REGISTRATION NUMBER

04503712 England and Wales

CHARITY REGISTRATION NUMBER

1099645

ACCOUNTANTS

The MGroup Partnership Chartered Certified Accountants 4 Witan Way Witney Oxon OX28 6FF

HIGHER EDUCATION POLICY INSTITUTE

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 JULY 2022

PRINCIPAL PLACE OF BUSINESS

99 Banbury Road Oxford Oxon OX2 6JX

BANKERS

Lloyds Bank 87 London Road Headington Oxford Oxon OX3 9AB

SOLICITORS

Freeths LLP Nottingham 80 Mount Street Nottingham NG1 6HH

INVESTMENT ADVISOR

Wren Sterling Financial Planning Ltd Hinksey Court West Way Botley Oxon OX2 9JU

HIGHER EDUCATION POLICY INSTITUTE

TRUSTEES' REPORT FOR THE YEAR ENDED 31 JULY 2022

The trustees present their annual report and the financial statements for the year ended 31 July 2022.

Status

The organisation is a charitable company limited by guarantee, incorporated on 5 August 2002 and registered as a charity on 8 June 2000.

The company was established under a Memorandum of Association that established the objects and powers of the charitable company and is governed under its Articles of Association. Members of the charitable company guarantee to contribute an amount not exceeding £1 to the assets of the charitable company in the event of winding up.

The reference and administrative details are shown on pages 1 to 2.

Objectives and activities

The Higher Education Policy Institute (HEPI) is an Oxford-based charity established in late 2002 ‘to promote research into and understanding of all aspects of higher education and to disseminate the useful results of such research for the education of policy makers and the general public in the United Kingdom’.

HEPI is funded by higher education institutions and other organisations that wish to see a vibrant higher education policy debate shaped by evidence. We are very grateful for this continuing support. During 2021/22, the number of HEPI University Partners grew to the highest ever number (130), as did the number of other organisations (15) supporting HEPI through the corporate Partnership programme.

Despite the pandemic, which continued to disrupt institutions, and also considerable political upheaval, HEPI was able to maintain its impact and had one of its more successful years in 2021/22. There were more pieces of new HEPI research than in every previous year with the exception of 2019/20. HEPI hosted a busy and complex events programme that mixed in-person, online and hybrid events. There was also record engagement with our work online.

In autumn 2021, HEPI’s long-standing Chair, Professor Sir Ivor Crewe, was replaced as Chair by Professor Dame Sally Mapstone, Principal and Vice-Chancellor of the University of St Andrews, and Professor Dame Julia Goodfellow joined the Trustees.

Achievements and performance

As a specialist body, HEPI is smaller than most other think tanks yet the organisation’s work was recognised in the Prospect Think Tank of the Year Awards, when HEPI was shortlisted for the Social Policy Award for the second year running.

HIGHER EDUCATION POLICY INSTITUTE

TRUSTEES' REPORT FOR THE YEAR ENDED 31 JULY 2022

Publications

In 2021/22, HEPI produced 25 pieces of published research, including three issues of the termly Policy Briefing paper. Our published output included 11 analytical HEPI ‘blue books’, five HEPI Policy Notes, three red HEPI Debate Papers and a range of other publications, many of which were produced in conjunction with other organisations that support HEPI’s work.

In addition, other new research featured on the HEPI website, including: the 2021 HEPI Soft-Power Index; an analysis of recent A-Level results by Mary Curnock Cook CBE; and the 2022 Social Mobility Index.

HIGHER EDUCATION POLICY INSTITUTE

TRUSTEES' REPORT FOR THE YEAR ENDED 31 JULY 2022

Events

In 2021/22, HEPI hosted a mix of in-person, online and hybrid events, including:

Online activity

In 2021/22, HEPI achieved record engagement. In 2021/22, we achieved 682,000 hits, which is nearly 10% higher than in the previous (record) year and nearly double the pre-COVID total. There were over 250 separate blog entries, with one new piece each working day. One innovation for 2021/22 was a number of blog series on topics including: employability; the Research Excellence Framework; and access to research.

While website hits provide a rough proxy for trends in engagement with HEPI’s work, they only capture a minority of interactions. HEPI also publicises its work through direct communications via an electronic database, by posting out hundreds of hard copies of each major publication, by attending other organisations’ events to talk about our work and by working through specialist, local and national media outlets.

HIGHER EDUCATION POLICY INSTITUTE

TRUSTEES' REPORT FOR THE YEAR ENDED 31 JULY 2022

Equality, Diversity and Inclusion (EDI)

In 2021/22, we put a greater focus on EDI issues – for example, by ensuring more diverse speaker panels, working to ensure a wider mix of authors and publishing reports on a range of EDI issues.

Our written work in 2021/22 included:

There were slightly more male (56%) than female (44%) authors of HEPI reports and a similar imbalance among those blogging on the HEPI website (57% male; 43% female). This was a more even balance than in the past but shows there was still some distance to travel before reaching parity. In contrast, there were slightly more female speakers (52%) at HEPI events than male speakers (48%), marking a clear change from the past.

Financial review

In 2021/22, both income and expenditure rose and the key financial indicators show a material surplus of £49,204, confirming the recovery in HEPI’s financial position after the COVID pandemic reduced in impact. While the surplus is significantly lower than that achieved in the previous year, this is explained by differences in the investment performance of HEPI’s reserves: investment performance was strongly positive in 2020/21 but distinctly negative in 2021/22.

The Charity has the power to make any investment which the Trustees see fit. In 2021/22, the reserves were divided between a Lloyds bank current account, a savings account with Aldermore and a medium-risk equity investment vehicle run by Aviva and overseen for HEPI by a local independent financial advice firm.

Future plans include continuing to conduct and disseminate research to further the aims of the charity as described in HEPI’s Articles of Association. HEPI also plans to maintain and develop relationships with existing and potential partner companies and higher education institutions.

HIGHER EDUCATION POLICY INSTITUTE

TRUSTEES' REPORT FOR THE YEAR ENDED 31 JULY 2022

Structure, governance and management

The charity is a company limited by guarantee.

During 2021/22, HEPI’s Chair, Professor Sir Ivor Crewe, retired after long and dutiful service to the charity. He was replaced as Chair by Professor Dame Sally Mapstone, who had first become a Trustee in late 2020/21.

The Trustees, who are also the Members of the HEPI Company for the purposes of company law, and who served during the year and up to the date of the signature of the financial statements were:

Professor Sir Ivor Martin Crewe (Retired 1 October 2021) Professor Dame Sally Louise Mapstone (Chair from 1 October 2021) Sir Robert David Bell Mary Curnock Cook CBE Professor Dame Julia Goodfellow (Appointed 1 October 2021) Professor Dame Helen Wallace

Statement of trustees' responsibilities

The trustees, who are also the directors of Higher Education Policy Institute for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the income resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

HIGHER EDUCATION POLICY INSTITUTE

TRUSTEES' REPORT FOR THE YEAR ENDED 31 JULY 2022

Conclusion

In common with other organisations, including higher education institutions and other small charities, HEPI’s income took a big hit during the worst of the COVID pandemic, resulting in a substantial deficit in 2019/20. In 2020/21, the situation improved due primarily to stringent cost-cutting, resulting in a surplus. In 2021/22, income and expenditure were both up and (excluding investment returns / losses) the surplus was comparable to that achieved in the previous year, further bolstering HEPI’s reserves.

There was a change in the way that donations from University Partners are recorded in HEPI’s accounts, with each donation now being spread equally over each of the subsequent 12 months. This resulted in the 2020/21 figures being recalculated and restated in order for the figures for 2021/22 to be directly comparable.

HEPI’s financial position is affected by the wider economic picture, including the growth in inflation, as well as the financial strength of the higher education sector, which is less good than it was. So HEPI’s recent positive financial performance is not guaranteed to continue into the future.

This report has been prepared in accordance with the Statement of Recommended Practice – Accounting and Reporting by Charities, and in accordance with the special provisions of Part VII of the Companies Act 2006 relating to small companies.

Approved by the Trustees on 23 March 2023

Signed on its behalf by

Professor Dame Sally Louise Mapstone

Chair Trustee

HIGHER EDUCATION POLICY INSTITUTE

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 JULY 2022

I report to the trustees on my examination of the accounts of Higher Education Policy Institute for the year ended 31 July 2022, which are set out on pages 10 to 25.

RESPONSIBILITIES AND BASIS OF REPORT

As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (the ‘2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

INDEPENDENT EXAMINER'S STATEMENT

Since the Company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ACCA, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

D J Green (FCCA)

For and on behalf of The MGroup Partnership Chartered Certified Accountants 4 Witan Way Witney Oxon, OX28 6FF 25 April 2023

HIGHER EDUCATION POLICY INSTITUTE

STATEMENT OF FINANCIAL ACTIVITIES AND INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2022

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Notes Unrestricted Restricted Total Total
Funds Funds Funds 2022 Funds 2021
(As restated -
see note 3)
£ £ £ £
INCOME
Charitable activities
Sponsorships and speakers fees 45,065 - 45,065 53,283
Conference fees 10,554 - 10,554 12,592
Partnership scheme 465,854 - 465,854 435,988
Grant income - 20,000 20,000 -
521,473 20,000 541,473 501,863
Investment income
Investments 1,192 - 1,192 908
Total income 5 522,665 20,000 542,665 502,771
Expenditure on:
Raising funds 4,792 - 4,792 3,971
Charitable activities 465,347 - 465,347 424,958
Other expenditure 159 - 159 50
Total expenditure 6 470,298 - 470,298 428,979
NET INCOME BEFORE TRANSFERS 52,367 20,000 72,367 73,792
Transfer between funds - - - -
Net incoming / (outgoing) resources before
52,367 20,000 72,367 73,792
gains and losses on investments
OTHER RECOGNISED LOSSES / GAINS
(Loss) / gain on investment assets 11 (23,163) - (23,163) 42,260
NET MOVEMENT IN FUNDS 29,204 20,000 49,204 116,052
Reconciliation of funds
Total funds at 1 August 2021 (as restated) 17 580,004 - 580,004 463,952
Total funds at 31 July 2022 17 609,208 20,000 629,208 580,004
----- End of picture text -----

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

HIGHER EDUCATION POLICY INSTITUTE

BALANCE SHEET AS AT 31 JULY 2022

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Notes 2022 2021
(As restated - see note 3)
£ £
FIXED ASSETS
Tangible assets 10 13,625 12,079
Investments 11 466,211 419,167
479,836 431,246
CURRENT ASSETS
Debtors 12 55,073 44,840
Cash at bank and in hand 19 443,793 340,238
498,866 385,078
CREDITORS : Amounts falling due
within one year 13 349,494 236,320
NET CURRENT ASSETS 149,372 148,758
NET ASSETS 629,208 580,004
FUNDS OF THE CHARITY:
Unrestricted income funds 17 609,208 580,004
Restricted income funds 17 20,000 -
629,208 580,004
----- End of picture text -----

Registered Company Number: 04503712

HIGHER EDUCATION POLICY INSTITUTE

BALANCE SHEET AS AT 31 JULY 2022

These accounts have been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006 and with the Financial Reporting Standard 102 Section 1A smaller entities.

For the financial year ended 31 July 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006.

No notice has been deposited under section 476 of the act requesting the company to obtain an audit.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

Signed on behalf of the board of trustees

Professor Dame Sally Louise Mapstone Trustee - Chair

Date approved by the board: 23 March 2023

Registered Company Number: 04503712

HIGHER EDUCATION POLICY INSTITUTE

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2022

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Notes 2022 2021
(As Restated)
£ £
Cash flows from operating activities
Net income for the reporting period (as per the SOFA) 72,367 73,792
Adjustments for:
Depreciation charges 3,833 3,453
(Increase) / Decrease in debtors (10,233) 27,263
Loss on the sale of other tangible fixed assets 159 50
Increase / (decrease) in creditors 113,174 (10,272)
Cash generated from operations 179,300 94,286
Interest received (1,192) (908)
Net cash generated by operating activities 178,108 93,378
Cash flows from investing activities:
Dividends, interest and rents from investments 1,192 908
Proceeds from the sale of other tangible fixed assets - 400
Purchase of property, plant and equipment (5,538) (765)
Proceeds from sale of investments 4,418 3,973
Purchase of investments (74,625) -
Net cash used in investing activities (74,553) 4,516
Net increase in cash and cash equivalents 103,555 97,894
Cash and cash equivalents at the beginning of the year 340,238 242,344
Cash and cash equivalents at the end of the year 19 443,793 340,238
----- End of picture text -----

HIGHER EDUCATION POLICY INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

1 GENERAL INFORMATION

Higher Education Policy Institute is a registered charity and company limited by guarantee incorporated in England and Wales. Its registered office and principal office is:

Registered office Principal place of business 80 Mount Street 99 Banbury Road Nottingham Oxford NG1 6HH OX2 6JX

The financial statements are presented in Sterling, which is the functional currency of the charity.

The charity is a public benefit entity.

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of preparation of the financial statements

These financial statements have been prepared in accordance with the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing accounts in accordance with the Financial Reporting Standard 102 Section 1A smaller entities, Financial Reporting Standard 102 Section 1A smaller entities 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' ("FRS 102"), the Companies Act 2006 and the Charities Act 2011.

Going concern

The Trustees have further reviewed the Charity's cash flow forecasts for the year to 31 July 2023 and have considered any potential issues that will have an impact on the Charity's different sources of income as well as their ongoing costs.

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

Incoming resources

Incoming resources in the period shown in the Statement of Financial Activities represents funds received from the sponsorship and speakers fees, partnership schemes and conference fees.

Income from sponsorship and speakers fees and partnership schemes are recognised when the company obtains a right to consideration in exchange for its performance. Any amounts received in advance are deferred to future periods.

Income from conference fees are included in incoming resources in the period in which the relevant event takes place.

HIGHER EDUCATION POLICY INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

2 STATEMENT OF ACCOUNTING POLICIES (continued…)

Grants

Grants and donations are only included in the Statement of Financial Activities when the charity has unconditional entitlement to the resources and are treated as restricted or unrestricted income in line with the donor’s instructions.

The company received total grant income of £20,000 (2021: £NIL). All of this related to income received from Research England to support HEPI's activities where they contribute to the understanding of issues facing research and knowledge exchange in universities.

Expenditure

Expenditure is directly attributable to specific activities and is charged to those cost categories.

Tangible fixed assets

Fixed assets are stated at cost less accumulated depreciation.

Depreciation has been provided at the following rates so as to write off the cost less residual value of the assets over their estimated useful lives.

Website costs Reducing balance basis at 20% per annum Computer and Office Equipment Straight line basis at 33.33% per annum

On disposal, the difference between the net disposal proceeds and the carrying amount of the item sold is recognised in the statement of financial activities.

Fixed Asset Investments

Listed investments are shown at fair value and revalued annually with any surplus or deficit dealt with through the statement of financial activities.

Leases

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the income and expenditure account on a straight line basis over the lease term.

Payments made under operating leases are recognised as expenditure over the lease term on a straightline basis.

HIGHER EDUCATION POLICY INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

2 STATEMENT OF ACCOUNTING POLICIES (continued…)

Taxation

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

Being a registered charity, the charity is not liable to taxation on its income.

Financial instruments

The charity only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Financial assets are measured at cost and are assessed at the end of each reporting period for objective evidence of impairment. Where objective evidence of impairment is found, an impairment loss is recognised in the statement of financial activities.

The impairment loss for financial assets measured at cost is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the charity would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amount and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Impairment of non-financial assets

At each reporting date non-financial assets not carried at fair value, like goodwill and plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets (which is the higher of value in use and the fair value less cost to sell) is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in the statement of financial activities.

If an impairment loss is subsequently reversed, the carrying amount of the asset, or group of related assets, is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset, or group of related assets, in prior periods. A reversal of an impairment loss is recognised immediately in the statement of financial activities.

Debtors

Short term debtors are measured at transaction price, less any impairment.

HIGHER EDUCATION POLICY INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

2 STATEMENT OF ACCOUNTING POLICIES (continued…)

Creditors

Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and subsequently at amortised cost.

Funds

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside for specific purposes at the discretion of the trustees.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donors or which have been raised by the charity for particular purposes.

Legal status of the charity

The company does not have share capital and is limited by guarantee. Each member of the company undertakes to contribute to the assets of the company, in the event of it being wound up such amounts as may be required will not exceed £1.

Pensions

The company operates a defined contribution pension scheme. The amount charged to the profit and loss account in respect of pension costs and other post-retirement benefits is the amount payable in the year. Differences between contributions payable and contributions actually paid in the year are shown as other creditors in the balance sheet.

HIGHER EDUCATION POLICY INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

3 RESTATEMENT OF COMPARATIVES

The charity had understated deferred income with respect of the partnership scheme at 31 July 2020 and 31 July 2021 by £89,000 and £9,292 respectively. This was due to the membership fees not being recognised equally over the period of the membership, with a significant proportion being recognised in full in the year of receipt. As a result the comparative balances for the year ended 31 July 2020 and 31 July 2021 have been restated as follows:

The charity recognised the revaluation gain on investment assets as income from investments in the year to 31 July 2021 valued at £42,260. This was moved out of total income to gain/(loss) on investment assets as it was incorrectly treated as income instead of a revaluation. This had no effect on the fund position. As a result the comparative balances for the year ended 31 July 2021 have been restated as follows:

2020 as previously stated
Correction relating to deferred income - 2020
2020 restated
Gain /
(loss) on
investment
assets
2021 as previously stated
-
Correction relating to deferred income - 2020
-
Correction relating to deferred income - 2021
-
Correction in relation to gain on investments
42,260
2021 restated
42,260		 Total
income
554,323
-
(9,292)
(42,260)
502,771		 Accruals
and
deferred
income
92,341
89,000
9,292
-
190,633		 Funds of
the charity
552,952
(89,000)
463,952
Funds of
the charity
678,296
(89,000)
(9,292)
-
580,004

The charity had recognised the investment in current assets at 31 July 2021 valued at £419,167. This has since been recognised in fixed assets. As a result the comparative balances for the year ended 31 July 2021 have been restated as follows:

2021 as previously stated
Correction relating to reallocating investment
Correction relating to deferred income as stated above
2021 restated		 Net current
assets
666,217
(419,167)
(98,292)
148,758		 Current
assets
804,245
(419,167)
-
385,078		 Fixed
assets
12,079
419,167
-
431,246

HIGHER EDUCATION POLICY INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

5 INCOMING RESOURCES

3% (2021 - 5%) of the charity's turnover is attributable to geographical markets outside of the United Kingdom.

The incoming resources included on page 10 consist of the following sources of income:

Unrestricted income:
Charitable activities
Sponsorship and speakers fees
Conference fees
Partnership scheme
Investment income
Investments
Restricted income:
Charitable activities
Grant income
Total income		 2022
£
45,065
10,554
465,854
521,473
1,192
522,665
20,000
542,665		 2021
£
53,283
12,592
435,988
501,863
908
502,771
-
502,771

HIGHER EDUCATION POLICY INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

6 EXPENDITURE

The resources expended included on page 10 consist of the following sources of expenditure:

----- Start of picture text -----
|||| |---|---|---| |2022|2021| |£|£| |Unrestricted expenditure:| |Charitable activities| |Sub-contractors|28,911|67,694| |Postage|15,700|11,659| |Publication Printing|30,811|20,117| |Events and conferences|43,484|3,498| |Rent (operating leases)|8,893|7,600| |Wages|241,558|233,967| |Employer's National Insurance|22,186|20,157| |Staff pension cost|27,878|26,182| |Insurance|536|1,108| |Books and data|505|569| |Repairs and maintenance|465|-| |Telephone and fax|485|218| |Computer operating costs|2,162|2,826| |Printing, postage and stationery|4,250|3,711| |Advertising and marketing|3,744|2,290| |Entertainment|3,666|541| |Travel and subsistence|9,053|544| |Legal fees|791|7,109| |Accountancy fees|7,680|6,113| |Bookkeeping|1,780|1,279| |Bank charges|160|(199)| |Staff training|2,270|2,352| |Subscriptions|4,546|2,170| |Depreciation|3,833|3,453| |465,347|424,958| |Raising funds| |Governance costs - independent exam|4,792|3,971| |Other expenditure| |Loss on sale of tangible fixed assets|159|50| |Total expenditure|470,298|428,979|

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7 EMPLOYEES

The average number of persons employed by the charity (including trustees) during the year was:

----- Start of picture text -----
|||| |---|---|---| |2022|2021| |Average number of employees|5|5|

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HIGHER EDUCATION POLICY INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

8 STAFF COSTS

2022 2021
Staff costs during the year amounted to: £ £
Salaries and wages 241,558 233,967
Social security costs 22,186 20,157
Pension contributions 27,878 26,182
291,622 280,306
The number of employees whose annual remuneration was £60,000 or more were:
£100,001-£110,000 2022
1		 2021
1
(As restated)
9 KEY MANAGEMENT PERSONNEL REMUNERATION
Key management personnel remuneration for the year amounted to: 2022
£		 2021
£
Salary and wages 104,269 104,489
Pension 19,811 19,853
124,080 124,342

HIGHER EDUCATION POLICY INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

10 TANGIBLE ASSETS

Cost
At 1 August 2021
Additions
Disposals
At 31 July 2022
Accumulated depreciation
At 1 August 2021
Charge for year
Disposals
At 31 July 2022
Net book value
At 1 August 2021
At 31 July 2022		 Website
costs
£
30,776
-
-
30,776
19,905
2,175
-
22,080
10,871
8,696		 Computer
and Office
Equipment
£
24,752
5,538
(3,680)
26,610
23,544
1,658
(3,521)
21,681
1,208
4,929		 Total
£
55,528
5,538
(3,680)
57,386
43,449
3,833
(3,521)
43,761
12,079
13,625

HIGHER EDUCATION POLICY INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

11 FIXED ASSET INVESTMENTS

Total other
investments
£
Cost
At 1 August 2021 (as restated) 419,167
Additions 74,625
Revaluation (23,163)
Disposals (4,418)
At 31 July 2022 466,211
Net book value
At 1 August 2021 (as restated) 419,167
At 31 July 2022 466,211

The investments are UK listed investments and have been measured at market value.

12 DEBTORS

Trade debtors
Prepayments and accrued income
Other debtors
CREDITORS:amounts falling due within one year
Trade creditors
Taxation and social security
Accruals and deferred income
Other creditors		 2022
2021
£
£
52,058
43,590
3,015
-
-
1,250
55,073
44,840
2022
2021
£
£
14,453
19,285
44,195
19,999
284,443
190,633
6,403
6,403
349,494
236,320
(As restated)

13 CREDITORS: amounts falling due within one year

14 DEFERRED INCOME

Included in accruals and deferred income is deferred income of £266,771 in respect of income received in 2022 which relates to 2023. In the accounts for the year ended 31 July 2021 income totalling £178,825 was deferred and has been released in the current year.

HIGHER EDUCATION POLICY INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

15 COMMITMENTS

Amounts falling due under operating leases:
Expiring in less than one year
Expiring in more than one but less than five years		 2022
£
10,980
13,725
24,705		 2021
£
-
-
-

16 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fund balances at 31 July 2022 are represented by:

Investments
Tangible assets
Debtors
Cash at bank and in hand
Current liabilities
MOVEMENT IN FUNDS
Unrestricted funds:
Charitable activities
Total unrestricted funds
Restricted funds
Grant income
Total restricted funds
Total funds		 £
580,004
580,004
-
-
580,004
August
2021 (As
restated)		 £
522,665
522,665
20,000
20,000
542,664
Incoming
resources		 £
466,211
13,625
55,073
423,793
(349,494)
609,208
£
(493,461)
(493,461)
-
(493,461)
Unrestricted
funds
Outgoing
resources		 Restricted
funds
£
-
-
-
20,000
-
20,000
£
-
-
-
-

Transfers		 Total funds
£
466,211
13,625
55,073
443,793
(349,494)
629,208
£
609,208
609,208
20,000
20,000
629,208
As at 31
July 2022

17 MOVEMENT IN FUNDS

HIGHER EDUCATION POLICY INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

17 MOVEMENT IN FUNDS (continued…)

Movement in funds (previous year)
£
£
Unrestricted funds:
General funds
463,952
545,031
Total unrestricted funds
463,952
545,031
Restricted funds
Total restricted funds
-
-
Total funds
463,952
545,031
August
2020 (As
restated)
Incoming
resources (As
restated)		 £
(428,979)
(428,979)
-
(428,979)
Outgoing
resources		 £
£
-
580,004
-
580,004
-
-
-
580,004
Transfers
As at 31 July
2021 (As
restated)

Grant income

Funds of £20,000 from Research England to support HEPI's activities where they contribute to the understanding of issues facing research and knowledge exchange in universities.

18 RELATED PARTY TRANSACTIONS

During the year the Charity made the following related party transactions:

Trustees and Directors

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity and no expenses were incurred during the year.

The charity reimbursed Nick Hillman (the director) for £901 relating to travel and subsistence. Nick Hillman also received remuneration of the amounts disclosed in note 9.

19 ANALYSIS OF CASH AND CASH EQUIVALENTS

Cash in hand
Total cash and cash equivalents		 2022
£
443,793
443,793		 2021
£
340,238
340,238