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2021-07-31-accounts

Reports and Financial Statements for the Year Ended 31 July 2021

NEWMAN UNIVERSITY

Reports and Financial Statements For the Year Ended 31 July 2021

Registered Charity Number: 1110346 Registered Company Number: 05493384

Newman University

Reports and Financial Statements for the Year Ended 31 July 2021

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CONTENTS
Contents………………………………………………………………………………………………………. 2
Newman University………………………………………………………………………………………… 3
Report of the Council (incorporating the Strategic Report) ……………………………………. 5
Corporate Governance …………………………………………………………………………………… 16
Statement of Responsibilities of Council Members ………………………………………….…… 19
Independent Auditor’s Report to Council …………………………………………..…..………..… 21
Statement of Principal Accounting Policies ………………………………………………………… 25
Statement of Comprehensive Income ……………………………………………………….……….. 29
Statement of Changes in Reserves ……………………………………………………….…………… 30
Statement of Financial Position ……………………………………………………………………...… 31
Statement of Cash Flows …………………..…………………………………………………….….….. 32
Notes to the Financial Statements ……………………………………………………………….…… 33
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Newman University

Reports and Financial Statements for the Year Ended 31 July 2021

NEWMAN UNIVERSITY

CONSTITUTION

The conduct of the University’s affairs during the year is governed by an Instrument and Articles of Government, approved by the Privy Council in 2013 and revised in 2019. The University is a UK charitable company limited by guarantee (Charity No. 1110346).

Council Members and their interests

The Council Members serving during the year to 31 July 2021 and up to the date of approval of these financial statements were:

Chair of the Council Jonathan Day (until 31 December 2021)
Independent Council Members – Glen Alexander (until 30 November 2021)
Catholic Members John Carlisle (until 30 June 2021)
Jonathan Day_(Chair of Council and Chair of Nominations &_
Governance Committee until 31 December 2021)
Bishop David Evans
Deirdre Finucane
Karan Gilmore
Professor Margaret House (from 1 March 2021, and Chair of Council
from 1 January 2022)
Phillip Lennon_(Chair of Audit and Risk Committee)_
Elizabeth McGrath QC (until 10 November 2021)
Independent Council Members – Gayle Ditchburn_(Vice-Chair of Council)_
non-Catholic Members Julie Jones (until 1 February 2021)
Stephen Kenny_(Chair of Finance and General Purposes Committee,_
Chair of Remunerations Committee)
Professor Femi Oyebode
Richard Wallace
Council Members – Ex-Officio Professor Jacquelyn Dunne_(Vice-Chancellor)_
Archbishop Bernard Longley
Staff Council Members Bonnie Bullivant_(from 1 October 2020 until 17 March 2021)_
Colin Harris_(until 30 September 2020)_
Leoarna Mathias
Mehreen Mirza (from 7 October 2021)
Student Council Member Christian Black (until 30 June 2021)
Alex Reston (from 1 July 2021)

The Council Members received no remuneration during the year in their capacity as members of Council.

All Council Members are required to declare their interests at Council and Committee meetings and are not able to vote on matters in which they have a direct interest. No members have declared interests during Council or Committee meetings in the period covered by this report.

The Council Members of the University have agreed to contribute £1 each to the assets of the University in the event of it being wound up.

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Newman University

Reports and Financial Statements for the Year Ended 31 July 2021

PRINCIPAL ADDRESS

Newman University Genners Lane Bartley Green Birmingham B32 3NT

VICE-CHANCELLOR

Professor J Dunne

BANKERS

National Westminster Bank Plc Commercial Banking 4th Floor, 2 St Philip’s Place Birmingham B3 2RB

SOLICITORS

Mills & Reeve 78-84 Colmore Row Birmingham B3 2AB

Shakespeare Martineau No 1 Colmore Square Birmingham B4 6AA

AUDITORS

(Internal) BDO LLP 2 Snowhill Birmingham B4 6GA (External) Grant Thornton UK LLP The Colmore Building 20 Colmore Circus Birmingham B4 6AT

Newman University

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Reports and Financial Statements for the Year Ended 31 July 2021

REPORT OF THE COUNCIL (INCORPORATING THE STRATEGIC REPORT)

The Council is pleased to present its report and the accounts of the University for the year ended 31 July 2021.

PRINCIPAL ACTIVITY

The principal activity of the University in the year under review, in line with the University’s objects, was the provision of high-quality foundation, undergraduate and postgraduate degree level courses. These programmes were offered through the two Faculties of the University.

In planning activities, the Council Members have given careful consideration to the Charity Commission’s general guidance on public benefit.

OPERATING AND FINANCIAL REVIEW

Introduction

Newman University is named after Saint John Henry Newman (1801-90). His own journey of mind and heart, across the 19th century, engaged him with all the great issues - political, social, and religious - of his day and provoked him to give a fresh reading of the meaning and development of religious faith and understanding. In February 2019, Pope Francis announced that Cardinal John Henry Newman was to be made a Saint and the canonisation took place in October 2019 in Rome.

Newman was an extraordinary thinker whose creative and lively mind engaged with the process by which men and women come to knowledge and truth. His explorations of the human intellectual and spiritual journey anticipate much of the contemporary work on multiple modes of intelligence and understanding that underpin the way we learn and teach at Newman University. In his famous lectures The Idea of a University Defined and Illustrated, he emphasised that the main role of the university was to train the mind, and he developed the idea of a learning community and the tutorial system, which again we use to good effect here at Newman.

Newman was always available to the people of Birmingham, rich and poor, who came to him for advice and instruction. When Blessed John Henry Newman died, he was a Cardinal of the Catholic Church, honoured internationally, but it was his ability to touch and enlighten the hearts of so many that make him such a fitting patron for our University and its mission in contemporary British society.

At Newman University, we have a long and proud tradition of providing high-quality, formative education in a values-driven environment. This quality is reflected in the award of university title in February 2013, a significant moment in the history of Newman.

Founded in 1968 by the Catholic Education Service to train teachers, Newman University has significantly expanded its work into a range of other areas including single and joint honours degrees, both full- and part–time, and work-based foundation degrees. Research and postgraduate study remain important areas of work at Newman University. The founding principles of a supportive learning community, underpinned by a strong Catholic ethos, and providing opportunity for all, continue to underpin the work of the University.

Continuing to build on our teaching foundations

As a student-centred university, Newman’s challenging yet supportive learning environment enables students to engage with theories and concepts, discuss ideas and become independent learners and creative thinkers able to make a difference in the world.

The unique style of teaching and learning at Newman and how students feel part of a community at Newman is reflected in the 2021 National Student Survey (NSS) results. Newman scored 1[st] amongst the Birmingham universities to feel more likely to be a part of a learning community of staff and students. Newman’s library was also voted number 1 in Birmingham in 2021 for the 4[th] year running. The University staff were scored above the benchmark for being able to explain things to students and also for timely feedback. According to the NSS results, students at Newman were 7% more likely than

Newman University

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Reports and Financial Statements for the Year Ended 31 July 2021

the sector average to be provided with opportunities to apply what they have learnt, which reflects on the focus of employability that the University offers to students, as well as the interactive teaching styles, coupled with small class sizes, enabling lively discussion and innovative teaching, where all students have the chance to participate and to be heard.

Students are also encouraged to undertake research in collaboration with their lecturers which has often led to students securing research grants, presenting at national conferences and having their work published in well-known publications. The academic staff at Newman are research active enabling them to debate and discuss current topics within their field of expertise with their students, giving them a greater understanding of their subject area.

Each year a Learning and Teaching conference is delivered and is growing year on year in the number of students and staff that participate. The conference builds on projects between academics, students, and professional support staff. The initiative provides a chance to think ideas through and celebrate the evolving learning community. The project scheme allows students to propose projects and bid for funding on an annual basis. They put together teams of students, academics and professional support staff to take forward research or interventions that will enhance the student experience at Newman.

STRATEGIC REPORT

Reaching out into the City of Birmingham, supporting local communities and pupils from widening participation backgrounds

Newman University has due regard to the Charity Commission’s guidance on public benefit and is committed to widening participation and social mobility. As a result, Newman University has developed an outstanding reputation of achievement in this area. For example, the University exceeds nationally derived benchmarks for the recruitment of students from state schools and lower socio-economic groups and low participation neighbourhoods. According to the latest Sunday Times analysis, Newman has the 3rd highest working class intake, the 2nd highest state school intake and one in three of Newman’s students is a mature student. Newman supports The Sanctuary Scholarship (formerly the Article 26 scholarship) which supports students who have fled persecution and sought asylum in the UK and, due to its success in previous years, Newman has now increased the scholarship from one student to two students per academic year. In March 2021, Newman was named in a new report, from The Higher Education Policy Institute (HEPI) titled Designing an English Social Mobility Index, in the top 10 for impact on social mobility.

The University continues to develop its links with the city of Birmingham and was a founding member of Citizens UK Birmingham, an alliance of civil society groups within the city, and continues to actively support and engage with the objective of the group. The vision is to build a diverse and independent alliance of civil society institutions that will act together for the common good of Birmingham. Working with local communities, the University works collaboratively with the Birmingham Civic Society in developing school projects and is a supporter of the Birmingham Literature Festival. The development of outreach activities through the Uni Connect Programme, previously the National Collaborative Outreach Programme (NCOP,) has enabled the University to support potential students from disadvantaged backgrounds from across the city, hosting 17 events on campus and delivering 23 activities at other venues/partner universities, schools and colleges before the first national lockdown was imposed.

Despite the challenges of COVID-19 the University remains committed to reaching out into and beyond the city to ensure prospective students understand the benefits of higher education, and the benefits of being a student at Newman University.

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Newman University

Reports and Financial Statements for the Year Ended 31 July 2021

Key financial performance indicators

The University’s main key financial performance indicators are summarised as detailed below. Academic performance is more difficult to summarise in a simple indicator and therefore this is more fully reviewed in a later section of the operating and financial review. The University has broadly achieved its key performance indicators, the data for which is within the audited financial statements.

Key financial performance indicator 2020/21
Target		 2020/21
Achievement		 2019/20
Achievement
Student Numbers (home, full time) 1988 2223 2145
Surplus as % turnover 3% (min) 8.45% 1.8%
Pay costs / income 65% (max) 58.9% 63.8%
Debt servicing costs 4% (max) 1.15% 0.9%
Minimum cash levels £2.5m £11m £8.3m

Academic performance

Newman University has trained and educated over 14,000 primary and secondary school teachers since 1968 for Birmingham, the West Midlands and further afield. In addition, the University offers continuing professional development (CPD) programmes for serving teachers and the school workforce, such as the MA Education and a range of postgraduate certificates, in addition to PhD study. Newman also offers national professional recognition via the Teaching and Learning Academy (TLA) CPD framework for the Midlands, South West and South Wales. The Teaching and Learning Academy may also facilitate accredited CPD at levels 4-7.

The University has continued to be successful in relation to academic quality. At the last OFSTED inspection for Newman’s Faculty of Education, all Initial Teacher Education provision was rated as Grade 2 - Good (December 2015). Under the revised operating model of quality assurance, the annual provider review 2016-17, Newman was graded by HEFCE as ‘Meets requirements – No action required’ (the highest grading under the new QA system). New academic courses are regularly being developed by the Faculty, and in 2020 they delivered a new BA Hons Primary 3-7, BA Hons Primary 5-11 with Foundation year, to fill an identified gap in the market.

The TEF Panel’s judgement singled out for particular praise the institutional culture of recognising and rewarding excellent teaching and the fact that Newman’s courses provide high levels of stretch for all students, alongside effective support for their development, progression and attainment.

In September 2020, Newman announced a new Professor and three new readers; Dr Tony Myers became Professor in Quantitative Methods, and Dr Louise Hickman, became a Reader in Philosophy and Religion, Dr Adam Benkwitz a Reader in the Sociology of Sport and Health, and Dr Chris Langley a Reader in Early Modern History.

Working in partnership and collaboratively

The University continues to develop and maintain partnerships with a number of academic partners - these include the collaborative provision with Halesowen College, Solihull College, South and City College, Birmingham, Markfield Institute of Higher Education, Queen's Ecumenical Foundation, Christ the Redeemer College, and ForMission College. Newman is now working in partnership with two schoolcentred initial teacher training (SCITT) consortia in Cornwall and Northamptonshire as their PGCE provider, thereby contributing to teacher supply across the country. In addition, Newman has a formal partnership agreement with Aston University, supporting their undergraduates to progress to Primary and Secondary PGCE places at Newman, in addition to a similar informal agreement with Coventry University.

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Reports and Financial Statements for the Year Ended 31 July 2021

Supporting our students through to graduate level employment

The University aims to improve lives by equipping students with the skills and qualities that prepare them to go out into their communities and serve at every level. The world of work is changing rapidly, especially around the skill sets that employers want and value, so the University is developing more support and increasing our offer to students in order to meet their needs, as well as those of the employers and the wider labour market. In developing initiatives for the students, the University fully supports the Office for Students’ ambition ‘to make sure we deliver on the promise of HE as an engine for social mobility, and a gateway to a better life for those who undertake it’.

The University has developed a new Employability Strategy and has developed a set of actions to address that strategy in line with our core values and commitments. To support implementation, we have built an Employability Hub to support both students and local enterprises as well as create a welcoming space for employers within the wider West Midlands region.

The process for conducting and measuring employability recently changed, and the Graduate Outcomes Survey (GOS) reports on our Graduates’ levels of Employability at 15 months after graduation. The introduction of the GOS has provided the University with an opportunity to review and enhance its approach to employability. To this end, the University has put in place a series of actions, including the creation of an ‘Employability Task Group’ (ETG) which draws its membership from across the University, including students and members of staff of the University, to oversee progression into graduate employment and/or further higher-level study. The GOS outcomes for 2018/19 show that Newman graduates who said that they were in employment or unpaid work accounted for 80% of respondents (overall UK sector average 80%). This figure is lower than in the previous year which was 83% (overall UK sector average 81%).

Newman continues to provide a breadth of experiences to students enabling them to reach their full potential. Being able to enrich student learning through employer engagement is just one of the many ways in which students are supported. The success of Newman’s graduates is due to the commitment of the University not only to give students good academic qualifications but also to encourage a flexibility to change, developing enquiring minds capable of innovating and adapting to the challenges of the future. This is demonstrated by the initiatives of the University’s careers and employability teams to integrate preparation for careers into general teaching, putting students in an advantageous position when it comes to securing employment. Students are also encouraged to take on additional roles during their time at Newman – for instance, becoming a course representative, working as a student ambassador, working with the Students’ Union, all help to develop valuable planning, communications and team-working skills valued by employers.

The Careers Service continues to provide a wide range of education, information, advice and guidance to help students - and graduates of up to three years - enhance their employability and develop effective career management skills to make informed decisions. The careers team have implemented My Career, an online system which gives all students and recent graduates access to book one-to-one personalised guidance sessions, workshops (such as the use of LinkedIn) and events such as the careers summer schools, fairs, and access to opportunities from employers and organisations. In 2019, the University also opened the Careers and Employability Hub on campus, to provide a joined up space for students to access their careers and employment advice. In 2020, the Careers Service also successfully achieved the Association of Graduate Careers Advisory Services (AGCAS) Membership Quality Standard.

In tandem, the University’s Enterprise Unit encourages student interest in establishing their own businesses. The Unit ran a series of events throughout the year, inviting business ideas, promoting entry into enterprise competitions and bring social enterprises and entrepreneurs onto campus to share their experiences and ideas. The focus this year has been on particular support for the development of social and co-operative enterprises which is in line with our social justice mission.

In addition, our Higher Level Skills Match (HLSM) project works to identify a range of high-status beneficial placements, particularly with small and medium-sized enterprises across the West Midlands, for our final-year and graduate students. As the reputation of our Enterprise/HLSM work has grown, colleagues have been invited to work as consultants with a range of SMEs and larger corporations within the Birmingham and Solihull LEP. These include West Midlands Police, Accord Housing, Birmingham and Solihull CCG- NHS, DWP, Unity Bank Trust and many other organisations. The HLSM project was awarded the AGCAS Building Effective Partnerships Award 2020.

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Reports and Financial Statements for the Year Ended 31 July 2021

In December 2020, Newman was successful in its application for funding to support the Early Years Career Progression Pathways (EYCPP) project. EYCPP is a £900,000 ESF-funded project that supports Newman University and Birmingham City University partner with sector specialists West Smethwick Enterprise in addressing some of the challenges faced by the region’s Early Years sector.

During 2021-22, we will continue to develop our offer for current and recent graduates as we seek to ensure that they are employable throughout their lives and are able to face the challenges of a constantly changing and evolving local, national and global labour market, within equally changing economic, social and cultural environments.

Supporting our students

Newman has a wide range of students from many faiths and backgrounds and over a third of students utilise the services provided by the Student Support Service. Students requiring a little extra support in navigating a new challenge, confronting a problem or learning new skills can get help. The wealth of support available to students includes the Academic Support Advice, Learning Development Support, support with dyslexia, physical or sensory disabilities, long term health issues, mental health or autism. Counselling support and welfare advice are also available. In recent years, a number of new systems have been introduced to support students to access these resources more effectively. A new signposting guide, a new intranet-based safeguarding reporting system and the introduction of a new intranetbased triage system are helping students with wellbeing concerns to be able to request an appointment quickly with a practitioner. The levels of support that we are able to give to our students are shown in the latest NSS figures (July 2021) with impressive results. Newman scored highly for assessment and feedback and organisation and management. Newman is first in England (of 125 universities) for the helpful comments on work given to students. We rank 7[th] in England for organisation and management of the course, and 6th for the way in which changes to courses have been communicated effectively. At a local level and for the second year running Newman has scored highest amongst the Birmingham Universities for student satisfaction.

Work on the campus has continued to develop to support our large numbers of commuter students. Improvements to the catering outlets, including offering students facilities to heat up their own food and the provision of chilled and hot water, enables students to bring their own food onto the campus and have comfortable social seating spaces in which to eat, as well as rebranding the Sanctuary Café to a more student friendly environment.

During 2020, Newman University signed the Care Leavers Covenant, an initiative established to improve support to young people aged 16-25 leaving care. The initiative aims to harness the expertise and resources of businesses, education providers and charities to ensure those leaving care have the necessary support and opportunities to succeed and thrive. The University also signed the Stand Alone Pledge in 2020, meaning we are publically committing to supporting students who are studying without the support or approval of a family network.

In supporting students with their learning and development, ensuring that students are attending lectures is known to help their understanding of the subject, ability to participate and development of an enquiring mind. A new initiative to monitor students’ attendance has been developed and implemented. The system allows students to log their attendance in class and provides the University with the corresponding student engagement data. A correlation has been found between attendance and student performance and the system helps staff to offer support at an early stage to students with a poor attendance record.

For over 10 years Newman University has been helping new students to adapt to the world of Higher Education through a programme called HEADs. Data reports a clear positive correlation between HEADs participation and the likelihood of finishing studies with a first or upper class second. This work was developed and extended during 2018 to provide a HEADOnline, digital version of HEADstart with accessible materials and twilight learning opportunities.

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Newman University

Reports and Financial Statements for the Year Ended 31 July 2021

Developing the academic portfolio to meet the needs of our prospective students

After a review of the academic portfolio in 2018, a number of new courses were introduced looking at the needs of our students, employment opportunities, as well as the ‘fit’ with our existing suites of courses and teaching. As a result of the review, some courses were consolidated, for example, undergraduate degrees in Sport. New courses were introduced in both faculties; these include LLB Law, BSc in Computer Science, Policing, and Social Work. A further strategic review of the portfolio in 2021 has resulted in the approval for the development of degrees in Nursing and Allied Health Professions, with recruitment to commence from September 2023.

Psychology and Counselling at Newman continue to offer a wide range of undergraduate and postgraduate programmes, a number of which are fully accredited by the relevant professional bodies: British Association for Counselling and Psychotherapy (BACP), British Psychological Society (BPS), and the UK Council for Counselling and Psychotherapy (UKCP).

Research

The gaining of research degree awarding powers (RDAP) is recognised as being of strategic importance to the institution’s development. Newman University has made the commitment to be in the position to apply for research degree awarding powers by 2023. All postgraduate research students enrolled for doctoral degrees with Newman during the year are also registered with Liverpool Hope University and will receive their award from them. It is intended that the partnership with Liverpool Hope University continues until Newman University gains its own research degree awarding powers. This year saw Newman’s first doctoral completions under the partnership with Liverpool Hope, with all examined students passing their vivas successfully.

COVID-19

The coronavirus continues to have significant impact on the operations of the University. The University adopted a hybrid delivery model during the summer term of 2020/21 and this has continued into the autumn term of 2021/22. This change has been successfully facilitated by the commitment of the whole University community.

The impacts of COVID-19 are likely to be felt for some time. These include impacts on student recruitment and associated ancillary income, as well as delivery in a COVID-secure environment. Some positive impacts include the enhancements to digital learning, and improvements in hybrid learning and working models. The University is committed that the health, safety and wellbeing of its community remains its highest priority.

Sustainability

Newman University has an Environmental Committee which has responsibility for promoting and achieving ever improving environmental standards. The University’s Environmental Policy is reviewed annually and within this policy a number of targets are set including, gas, electricity and carbon, and these are monitored on a regular basis. The Carbon Management Plan is in the process of being updated to reflect the commitment that Newman University will be a negative carbon university campus by 2035.

In 2017, the University achieved the Eco Campus Gold reaccreditation award and in March 2019 Newman University achieved both the ISO 14001 Environmental award and ISO 50001 Energy award. An external audit of the ISO awards was undertaken and re-accreditation was achieved in April 2021. Newman continues to invest significantly in improving environmental performance. This includes further LED lighting upgrades, installation of additional solar panels, a combined heat and power (CHP) unit fitted to the halls of residence, and most recently an air sourced heat pump to replace traditional gas heating within a building.

Overall energy consumption and CO2 emissions slightly increased across the estate compared to last year. This change is in relation to electricity usage reducing because of lockdowns and solar production increasing, while a colder winter increased gas usage.

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Newman University

Reports and Financial Statements for the Year Ended 31 July 2021

The table below indicates the University’s carbon emissions and savings across a range of areas:

Area Item 2019/20
(tCO2e)		 2020/21
(tCO2e)		 KPI 2019/20
(kgtCO2e/m2 NIA)		 KPI 2020/21
(kgtCO2e/m2 NIA)
Greenhouse
Gas Emissions
(tCO2e)		 Scope 1 Gas 560.9 613.2 30.9 33.75
Scope 2
Electricity		 287.9 239.9 15.8 13.21
Scope1 Vehicles 1.1 0.9
Total Emissions 849.9 854
Campus bought
out energy		 Natural gas
consumption
(k/Wh)		 3,054,546 3,335,156
Natural gas cost
(£)		 85,614 88,044
Electricity
consumption
(kWh)		 1,046,643 948,006
Electricity cost (£) 176,393 162,228
Vehicle fuel Diesel (Miles) 6,523 3,475
Exhaust
emissions (tCO2e)		 1.15 0.95

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Reports and Financial Statements for the Year Ended 31 July 2021

Financial review of the year

The University’s Income, Expenditure and Results for the year to 31 July 2021 are summarised as follows:

2020/21 2019/20
£ £
Income 24,124,128 23,785,164
Expenditure 22,085,349 23,368,256
Surplus on continuing operations 2,038,779 416,908
Transfer from Revaluation Reserve in respect of depreciation of 147,397 147,397
revalued assets
Comprehensive Income for the year 2,186,176 564,305

The University’s total income in 2020/21 of £24.1 million has increased by 1.4% on the previous year, following better than expected student recruitment. The University had budgeted for lower recruitment due to the impact of Covid and, with relatively fixed costs and the opportunity to invest cash into new opportunities, a positive operating surplus has been achieved.

The out-turn for the year reflects the Council’s commitment to the generation of operating surpluses in order to further invest in the campus. The financial strategy supports both investment in the campus and the ongoing sustainability of operations.

Plans for future periods

The mission of the University has always been to provide high-quality accessible academic and professional education based on the values of respect for others, social justice and equality. Newman University seeks to make a positive difference to individuals and communities through the contribution of staff, students and graduates.

The Council is charged with the responsibility of setting the strategic direction of the University. Council approved a Strategic Framework in February 2020 covering the period 2020-2025. The Strategic Framework provides a clear vision for the future and reasserts the Catholic ethos, mission and values of Newman University. The key strands of the Strategic Framework are: to transform students' lives; to work in partnership with students; to grow our institution; to nurture our staff; to add to knowledge and cultivate wisdom; and to serve our diverse community and the wider world. Newman, in line with its motto ‘ex umbris in veritatem’ (‘out of the shadows into truth’), is committed to continued enhancement of its approach to formation for students and staff.

As expected, the commitment to teacher education, for both Catholic and non-Catholic schools, remains at the heart of the mission and future planning of the University. Newman is one of the largest accredited providers of School Direct training in the West Midlands, working with Teaching School Alliances and individual schools at both primary and secondary levels.

Newman University remains deeply committed to the goals of widening access to, and participation in, higher education, offering flexible programmes of different kinds. The University believes it is well placed to make a significant contribution to the government’s targets for widening participation and social mobility and consistently outperforms its location-adjusted benchmarks in this area.

The Council is confident of the security of the University’s position. With a healthy out-turn on the year, reasonable cash reserves and a limited burden of debt, Newman is well placed to exploit the opportunities offered in the contemporary context of higher education in the UK and will continue to support and extend its founding vision for Catholic higher education. The Council Members thank the staff for their commitment to this shared endeavour and for their many successes in the year.

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Newman University

Reports and Financial Statements for the Year Ended 31 July 2021

Principal risks and uncertainties

The Coronavirus pandemic continues to create a measure of uncertainty and risk to the University impacting both income and costs associated with maintaining a COVID secure campus. The health and well-being of the Newman community remains the priority of the University. The University has adhered to government advice and guidance throughout the pandemic. The operational and financial impact of the pandemic has been significant and we continue to develop our response to contain that impact.

In a period of static levels of funding, meeting recruitment aspirations is important to provide funding to invest in the student experience, and support the sustainability of the University. Potential changes to government policy in relation to access to higher education and funding levels could adversely impact our ability to recruit some groups of students and/or adequately resource some programmes.

The University’s operations expose it to a variety of financial risks including the effects of changes in credit risk and liquidity risk. The University’s principal financial instruments comprise sterling cash deposits and loan facilities together with debtors and creditors that arise directly from its operations.

The main risks arising from the University’s financial instruments can be analysed as follows:

Credit risk

The University’s principal financial assets are bank balances, cash and debtors, which represent the University’s maximum exposure to credit risk in relation to financial assets.

The University’s credit risk is primarily attributable to its debtors. Credit risk is managed by monitoring the aggregate amount and duration of exposure to any one debtor depending upon their credit risk. The University’s operations are such that, with the exception of the Student Loans Company, significant amounts are very rarely owed by a single debtor. The amounts presented in the balance sheet are net of allowances for doubtful debts, estimated by the University’s management based on prior experience and their assessment of the current economic environment.

The credit risk on liquid funds is limited because the counter-parties are banks with high credit ratings assigned by international credit-rating agencies. The University has no significant concentration of credit risk, with exposure spread over a number of counter parties and customers.

Liquidity risk

The University’s policy has been to ensure continuity of funding through acquiring the University’s fixed assets using the generation of cash from its operating activities. The University has loan facilities in place, which it intends to utilise in the future as part of the University asset strategy and to ensure the University maintains adequate levels of liquid resources in future years.

Interest rate risk

Interest-bearing assets comprise of cash and bank deposits, all of which earn interest at fixed and floating rates. The University currently has £5.4m of debt which is serviced with a mix of fixed and floating rates. The Council monitors the overall level of borrowings, interest costs and hedging strategy to limit any adverse effects.

Stakeholder Engagement

The Council considers that they have acted in the way they consider would be most likely to promote the success of the university (having regard to the stakeholders and matters set out in s172 of the Companies Act 2006) in the decisions taken during the year ended 31 July 2021. The success of the university is reliant on the support of all of our stakeholders. It is important that we build positive relationships with stakeholders that share our values, and working together towards shared goals assists us in delivering long-term sustainable success.

The Council considers the potential consequences of its decisions on key stakeholders in the long term, taking into account a wide range of factors. The Council fully appreciates that the University can only grow sustainably through having regard to the views and needs of these stakeholders, being its

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students, staff, suppliers, partners and the wider community. Decisions made by the Council are informed by the University’s mission, vision and values as described in the 2020-2025 Strategic Framework. The Council approved and supports the 2020-2025 Strategic Framework. The six strategic objectives of the framework shape the decisions and actions of the Council and underline the aim of the University to achieve positive outcomes for all of its stakeholders.

Newman’s Council has a clear framework for determining the matters within its remit and has approved terms of reference for the matters delegated to its Committees and Academic Board. The Council agenda includes reports and presentations with regular updates on operational performance and on people matters. The Executive team attends Council meetings, as do functional heads, when relevant to the agenda. This ensures that the Council is in touch with all parts of the organisation in order to inform its judgements on longer term strategy. Both staff and student members sit on the Council in order to ensure regular engagement with these two key groups.

Equality of opportunity in employment

In 2011, the Governing body adopted a Single Equality Scheme, which was developed in recognition of the interrelated nature of equalities legislation and in response to the Equality Act 2010 and the Public Sector Equality Duty, which require institutions to work to promote equality and eliminate discrimination in all its activities; this is reviewed by the Equality & Diversity Committee and reported on as appropriate. It is the policy of the University that all staff are required to undertake relevant equality and diversity training.

Employee involvement

The 2020-25 Strategic Framework gives a commitment to staff formation by encouraging staff to develop and flourish in alignment with the strategic objectives of the University. Enhancement of staff formation goes hand-in-hand with enhancement of student formation. Therefore, the University places considerable value on the involvement of its employees and on good communication with them. The Human Resources Department and Academic Practice Unit are responsible for establishing training programmes at all levels of the institution.

Staff are encouraged to be involved in the University’s committees, with a view to assuring full participation by staff members in all levels of organisational decision-making. The University has a Joint Negotiating and Consultative Committee as the means for formal consultation and negotiation of terms of employment. This Committee is based on the principles of partnership working and represents all staff.

Trade Union Regulations 2017: Facility Time data for the period April 2020 to March 2021 is as follows:13 staff acted as Trades Union Representatives with 10 spending between 1%-50% of their working hours on facility time and 3 spending 0% of their working hours on facility time. 0.05% of the total pay bill was spent on facility time, and 0% of paid facility time was spent on trade union activities.

Students

Students are the key to everything we do. Our current strategic plan for the period 2020-2025 focuses several of its goals on students and the service/support that they need. We have provided updates on the work that has been undertaken during the year to achieve these goals within our Operating and Financial Review.

Suppliers

It is important for the university to obtain the best terms for all of its business activities and the Council recognises that relationships with suppliers are important to the group’s long-term success and as such we work to build strong relationships to develop mutually beneficial and lasting partnerships. It is the University’s policy to obtain the best terms for all business; thus, there is no single policy as to the terms used and supplier payment terms. In agreements negotiated with suppliers, the University endeavours to include and abide by specific payment terms.

Maintaining high standard of business conduct

It is important for the university to comply with relevant laws and regulations, including the specific expectations of the Office for Students, the regulator for providers of higher education in England, as well as statutory matters including health and safety. The Council is updated regularly on legal and regulatory developments and takes these into account when considering future plans.

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The university conducts its business in accordance with the seven principles identified by the Committee on Standards in Public Life (selflessness, integrity, objectivity, accountability, openness, honesty and leadership) and ensures all members of the executive and Council meet the definition of the Office for Students of a ‘fit and proper’ person. Further details on this and the other ways in which the university ensures it maintains a high standard of business conduct can be found within the Corporate Governance section of our Operating and Financial Review.

The Context For Higher Education

Newman University makes a regular assessment of the risk factors in the external environment which may impact on the University; at the present time these are significant. The current financial climate continues to pose a material risk to even the most effectively run institutions. Newman has taken a prudent approach to the management of its finances and the Council and Executive are in close contact to ensure that the University’s finances are appropriately monitored and managed.

As a student-centred University with strong Catholic values, Newman is committed to providing a values-driven, formative university education, available to people from all backgrounds. A fundamental part of Newman University’s mission is to support social mobility through education. Newman has developed a range of student support packages designed to provide assistance to a range of students, as well as a contextualised admissions process. This matches Newman’s commitment to continue to be a centre of excellence for widening participation and social mobility. In addition, the University will work to attract students from minority groups not currently engaged in higher education. The demand for programmes remains healthy reflecting Newman’s belief that its portfolio, which combines academic rigour with professional orientation, will be attractive in the current climate.

Qualifying Third Party Indemnity Provisions

Directors’ indemnity insurance, indemnifying each director against liability to third parties, has been in place throughout the year ended 31 July 2021 and up to the date of approval of this report.

Auditors

Grant Thornton UK LLP offer themselves for reappointment as auditors in accordance with Section 485 of the Companies Act 2006.

The Report of the Council (incorporating the Strategic Report) was approved on behalf of the Council by:

………………………………............

Mr Jonathan Day (Chair of the Council)

……………………………………… Professor Jackie Dunne (Vice-Chancellor/Council Member)

Date of Approval: 24 November 2021

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CORPORATE GOVERNANCE

This statement of Corporate Governance relates to the period covered by the financial statements and the period up to their date of approval. Newman University is an independent Roman Catholic institution which was granted taught degree awarding powers by the Privy Council in 2007 and full university status in 2013.

The University complies with the Higher Education Code of Governance that was re-issued by the Committee of University Chairs in September 2020. The Council, as constituted by the University’s Articles of Association, comprises fourteen external independent Council Members. The Archbishop of Birmingham and the Vice-Chancellor are ex officio members and there are two Members who are staff of the University and one student Member elected by the student body. The roles of Chair and ViceChair of the Council are separated from the role of the University’s Chief Executive, the Vice-Chancellor. The matters especially reserved to the Council for decision are set out in the Articles of Association. The Council, which holds to itself the responsibilities for the ongoing strategic direction of the University, the approval of major developments and the receipt of regular reports from the University Leadership Team on the day-to-day operations of its business, meets at least four times a year.

The Council has four main Committees – a Finance and General Purposes Committee, an Audit and Risk Committee, a Nominations and Governance Committee and a Remunerations Committee. The Committees meet at least three times a year, except for the Remunerations Committee which meets twice a year, and their decisions are formally reported to the Council. The Committees are formally constituted through the Standing Orders of the Council with terms of reference and comprise mainly of external members of the Council, one of whom is the Chair. University Council Members attend meetings regularly and this has ensured quoracy.

The Finance and General Purposes Committee recommends to the Council the University’s annual budgets and also monitors performance in relation to the budgets approved. The Remunerations Committee, chaired by the Chair of the Finance and General Purposes Committee, determines the remuneration of those members of the University Leadership Team who are appointed by the Council.

The Audit and Risk Committee meets with the external and internal auditors to discuss audit findings and to consider detailed internal audit reports and recommendations for the improvement of the University’s systems of internal control, together with management’s responses and implementation plans. It also receives and considers reports as they affect the University’s business and monitors adherence to the regulatory requirements, including ongoing OfS conditions of registration. It reviews the University’s annual financial statements, together with the accounting policies. The Vice-Chancellor is not a member of the Committee; the Committee meets with the internal and external auditors on their own for independent discussions annually.

The role of the Nominations and Governance Committee is to review the tenure of current members and seek out nominees for new membership of the Council and its committees, taking into account the balance of skills, experience and diversity of the Council. It also undertakes and operates the governance effectiveness assessment and considers and advises Council on Safeguarding matters.

As the University's governing body, Council has the ultimate responsibility for the governance of the University and its compliance with the ongoing conditions of registration with the Office for Students. The University's Articles of Association stipulate the establishment of a Senate that shall have such powers and duties as delegated to it by Council. Council has delegated the responsibility for the maintenance of academic quality and standards of the University's awards to Senate. These terms of reference prescribe the delegation of responsibility for such academic governance to Senate.

Senate draws its membership entirely from the staff and the students of the University. Following a review of the terms of reference of Senate, these were updated and approved by the Council in 2021. The formal relationship between the Senate and the Council is managed through reports presented to the Council at every meeting by the Vice-Chancellor as Chair of Senate, featuring matters relating to reviews of the quality process and plans for academic development. The University has established additional opportunities for Senate and Council to gain a deeper understanding of each other’s roles. A Senate-Council connection meeting takes place annually. This meeting has a joint agenda with presentations that enable discussion and promote opportunities for a deeper understanding of the respective responsibilities of each body. The Council is thus able to monitor the extent to which the

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Senate is conducting the academic affairs of the University in line with the direction of the Strategic Framework. There has also been an informal arrangement for Council members to gain an insight into the Senate meetings by having the on-going opportunity to sit in on Senate meetings.

The Vice-Chancellor is the Chief Executive Officer of the University and has a general responsibility to the Council for the organisation, direction and management of the institution. Under the terms of the formal Funding Agreement with the Department for Education and the Conditions of Registration between the University and the Office for Students, the Chief Executive is the Lead Accounting Officer for the University.

The University maintains a Register of Interests of members of the Council and senior officers of the University, which may be consulted by prior arrangement with the Clerk to the Council. In accordance with the Articles of Association, the University Secretary and Registrar has been appointed as Clerk to the Council; their job description contains separate responsibilities for each of these posts. The Clerk to the Council provides independent advice on matters of governance to all Council Members.

STATEMENT ON INTERNAL CONTROL

This statement on internal controls relates to the period covered by the financial statements and the period up to their date of approval. The University is committed to exhibiting best practice in all aspects of corporate governance. The University's Council is responsible for the University's system of internal control relating to the University’s arrangements for the prevention and detection of corruption, fraud, bribery and other irregularities, and for reviewing their effectiveness, covering business, operational and compliance risk as well as financial risk. Such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss.

The Council is of the view that there is an ongoing process for identifying, evaluating and managing the University’s significant risks. It has been in place for the year ended 31 July 2021 and up to the date of approval of the annual report and accounts, and is regularly reviewed by the Council and its Audit and Risk Committee to ensure that it accords with best practice internal control guidance for directors as deemed appropriate for higher education.

The Finance & General Purposes Committee, as discussed above, recommends to the Council the University's annual revenue and capital budgets and monitors performance in relation to the approved budgets. The Remunerations Committee determines the remuneration of the most senior staff, including the Vice-Chancellor.

The Nominations and Governance Committee has been established following good practice outlined in the CUC Higher Education Code of Governance and its role is to seek out and consider applications for the membership of the Council and its committees.

The University developed a 2020-25 Strategic Framework that arose from wide-ranging consultation with stakeholders. The University believes that the finalised Strategic Framework (approved by the Council in February 2020) represents the objects, vision, mission and values that then frame its six strategic objectives. The key ambition that stands out clearly is to work together in partnership to transform students’ lives. The University is implementing the Framework through its sub-strategies and associated action plans. Key Performance Indicators (KPIs) have been established and achievement is monitored by Council and they translate through to the University’s Risk Management approach.

Following a review, an updated Risk Management Policy was approved in February 2021. This forms part of the institution’s internal control and corporate governance arrangements and identifies the underlying approach to risk management across the University. It defines the roles and responsibilities of Council and senior managers in the management of risks. It also outlines key aspects of the risk management process and identifies the main reporting procedures. It places emphasis on the active management of risk rather than a monitoring of risk. Audit & Risk Committee members focus on the effective management and/or identification of risks including in the context of KPIs. A substantive review of the Risks takes place twice each year which is part of a semi-annual, multiple touchpoint cycle whereby the University’s Leadership and Operations teams review the operational and strategic risk registers.

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This approach has satisfied the Council that management, together with the internal and external audit services, have an appropriate process for identifying, evaluating and managing risk, together with appropriate staff training.

During the year, the University has:

The key elements of the University’s system of internal financial control, which is designed to discharge the responsibilities set out above, include the following:

………………………………............

Mr Jonathan Day (Chair of the Council)

……………………………………… Professor Jackie Dunne (Vice-Chancellor/Council Member)

Date of Approval: 24 November 2021

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STATEMENT OF RESPONSIBILITIES OF COUNCIL MEMBERS

In accordance with the University’s Memorandum and Articles of Association, the Council is responsible for the administration and management of the affairs of the University and is required to present audited financial statements for each financial year.

The Council (the Members of which are also the directors of the University for the purposes of company law) is responsible for preparing the Strategic Report and Directors’ Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Council to prepare financial statements for each financial year. Under that law, the Council is required to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland'. In addition, the Council is required to prepare the financial statements in accordance with the Office for Students (‘OfS’) Accounts Direction (issued October 2019), the OfS Terms and conditions of funding for higher education institutions (issued May 2020) through its accountable officer.

Under company law, the Council must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the University and of the surplus or deficit, gains and losses, changes in reserves and cash flows of the University for that year.

In preparing the financial statements, the Council is required to:

The Council is responsible for keeping adequate accounting records that are sufficient to show and explain the University's transactions and disclose with reasonable accuracy at any time the financial position of the University and enable it to ensure that the financial statements comply with the OfS Terms and conditions of funding for higher education institutions (issued May 2020), the Statement of Recommended Practice - Accounting for Further and Higher Education 2019 (issued October 2018 and any subsequent amendments), the OfS Accounts Direction (issued October 2019) and the Companies Act 2006. They are also responsible for safeguarding the assets of the University and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The members of Council have taken reasonable steps to:

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The Council is responsible for the maintenance and integrity of the corporate and financial information included on the University's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Council confirm that:

Approved on behalf of the Council by:

………………………………............ Mr Jonathan Day (Chair of the Council)

……………………………………… Professor Jackie Dunne (Vice-Chancellor/Council Member)

Date of Approval: 24 November 2021

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Independent auditor's report to the Council of Newman University

Opinion

We have audited the financial statements of Newman University (the 'university') for the year ended 31 July 2021, which comprise the Statement of Comprehensive Income, Statement of Changes in Reserves, Statement of Financial Position, Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the ‘Auditor’s responsibilities for the audit of the financial statements’ section of our report. We are independent of the university in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We are responsible for concluding on the appropriateness of the Council’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the university’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the university to cease to continue as a going concern.

In our evaluation of the Council’s conclusions, we considered the inherent risks associated with the university’s business model including effects arising from macro-economic uncertainties such as Brexit and Covid-19, we assessed and challenged the reasonableness of estimates made by the Council and the related disclosures and analysed how those risks might affect the university’s financial resources or ability to continue operations over the going concern period.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the university’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

In auditing the financial statements, we have concluded that the Council’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

The responsibilities of the Council with respect to going concern are described in the ‘Responsibilities of the Council for the financial statements’ section of this report.

Other information

The Council are responsible for the other information. The other information comprises the information included in the Reports and Financial Statements, set out on pages 2 to 41 other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matter on which we are required to report under the Companies Act 2006

In the light of the knowledge and understanding of the university and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included in the Report of the Council.

Opinion on other matters prescribed by the Office for Students (‘OfS’) accounts direction (issued October 2019)

In our opinion, in all material respects:

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Council for the financial statements

As explained more fully in the Responsibilities of Council Members set out on page 19 to 20, the Council (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Council determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Council are responsible for assessing the university’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Council either intend to liquidate the university or to cease operations, or have no realistic alternative but to do so.

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Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

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Use of our report

This report is made solely to the university's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the university's members those matters we are required to state to them it in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the university and the university's members as a body, for our audit work, for this report, or for the opinions we have formed.

William Devitt BSc FCA DChA Senior Statutory Auditor for and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants Birmingham

Date:

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STATEMENT OF PRINCIPAL ACCOUNTING POLICIES

1. STATEMENT OF ACCOUNTING POLICIES

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial statements.

2. BASIS OF PREPARATION

These financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting for Further and Higher Education 2019 (the 2019 FE HE SORP) and in accordance with Financial Reporting Standard 102 (FRS 102). The University is a public benefit entity and has therefore applied the relevant public benefit requirements of FRS 102.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the University’s accounting policies.

3. BASIS OF ACCOUNTING

The financial statements are prepared under the historical cost convention as modified by the use of previous valuations as deemed cost at transition for certain non-current assets.

4. GOING CONCERN

The activities of the University, together with the factors likely to affect its future development and performance, are set out in the Operating and Financial Review.

The financial position of the University and its cash flow are described in the Financial Statements and accompanying notes. The University’s forecast and financial projections indicate that it will be able to operate within this existing loan facility and covenants for the foreseeable future. Surpluses will be maintained and cash generated.

The ongoing Coronavirus pandemic has created a measure of uncertainty and it is difficult to measure the economic impacts that will result. The University is actively managing activities in order to mitigate threats and to the extent possible create value from opportunities.

Accordingly, the Council has a reasonable expectation that the University has adequate resources to continue in operational existence for the foreseeable future, including for at least 12 months from the date of approval of the financial statements, and for this reason will continue to adopt the going concern basis in the preparation of its Financial Statements.

5. BASIS OF CONSOLIDATION

The financial statements do not include the subsidiary for the financial year to 31 July 2021 as the subsidiary did not trade and its balance sheet is immaterial to the group. The financial statements do not include the income and expenditure of the Students' Union as the University does not exert control or dominant influence over policy decisions.

6. RECOGNITION OF INCOME

Income from the provision of services is credited to the Statement of Comprehensive Income when the services are supplied to the external customers or the terms of the contract have been satisfied. Fee income is stated gross of any expenditure which is not a discount and credited to the Statement of Comprehensive Income and Expenditure over the period in which the students are studying.

Bursaries and scholarships are accounted for gross as expenditure and not deducted from income.

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Funds the University receives and disburses as paying agent on behalf of a funding body are excluded from the income and expenditure of the University where the University is exposed to minimal risk or enjoys minimal economic benefit related to the transaction.

Government Grants, including funding council block grant and research grants from government sources, and other grants and donations from non-government sources, including research grants from non-government sources, are recognised within the Statement of Comprehensive Income and Expenditure when the University is entitled to the income and performance related conditions have been met. Income received in advance of performance related conditions is deferred on the Statement of Financial Position and released to the Statement of Comprehensive Income in line with such conditions being met.

Capital Grants are recorded in income when the University is entitled to the income subject to any performance related condition being met.

Investment income is credited to the Statement of Comprehensive Income on a receivable basis.

7. EMPLOYMENT BENEFITS

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

8. LEASES

Operating Leases

Costs in respect of operating leases are charged on a straight-line basis over the lease term. Any lease premiums or incentives are spread over the minimum lease term.

9. TANGIBLE FIXED ASSETS

(a) Land and buildings

Land and buildings at 1 August 1993 are stated at a valuation at that date. Additions since that date are stated at cost. The basis of the valuation is depreciated replacement cost and the valuation was carried out by Bond Wolfe Commercial, valuers and surveyors. Buildings (excluding improvements) are depreciated over their expected useful life of 50 years. No depreciation is provided in respect of freehold land.

On adoption of FRS 102, the University followed the transitional provision to retain the book value of land and buildings which were valued as above at deemed cost.

(b) Furniture, equipment and motor vehicles

Furniture, equipment and motor vehicles costing less than £10,000 per individual item are written off in the year of acquisition. All other furniture, equipment and motor vehicles are capitalised.

Where equipment is acquired with the aid of specific grants, it is capitalised and depreciated as above. The related grant is treated as a grant received in advance and released to income over the expected useful life of the equipment.

(c) Assets under construction

Assets under construction are accounted for at cost, based on the value of architect’s certificates and other direct costs incurred as at 31[st] July. They are not depreciated until brought into use.

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(d) Depreciation

Depreciation is provided, on a straight-line basis, at the following annual rates in order to write off each asset over its estimated useful life, as shown

New Buildings – 50 Years (2% p.a.)
Internal Building Improvements – 10 or 25 Years (10% or 4% p.a.)
Furniture and Equipment – 5 to 10 Years (20% to 10% p.a.)
Telephone Equipment – 5 Years (20% p.a.)
Motor Vehicles – 4 Years (25% p.a.)
Computer Equipment – 3 Years (331/3% p.a.)

10. STOCKS

Stocks, comprising stationery, cleaning materials and consumables, are valued at the lower of cost and net realisable value.

11. PENSION COSTS

Retirement benefits to employees of the University are provided by the Teachers’ Pension Scheme (TPS), Aviva Pension (APS) and National Employment Savings Trust (NEST).

(a) APS and NEST

APS and NEST are defined contribution schemes. The assets of each scheme are held independently. Contributions are charged to the Income and Expenditure account as they become payable in accordance with the rules of the scheme.

(b) TPS

The TPS is a defined benefit plan, which is externally funded and contracted out of the State Second Pension. It is an unfunded scheme. Contributions to the TPS are calculated so as to spread the cost of pensions over employees’ working lives with the University in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by qualified actuaries on the basis of valuations using a prospective benefit method. The TPS is a multi-employer scheme and there is insufficient information available to use defined benefit accounting. The TPS is therefore treated as a defined contribution plan and the contributions recognised as an expense in the Income and Expenditure account in the periods during which services are rendered by employees.

12. MAINTENANCE OF PREMISES

The University has a five-year maintenance plan, which is reviewed on an annual basis. The cost of long-term and routine maintenance is charged to the Income and Expenditure account as incurred.

13. TAXATION STATUS

The University is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the University is potentially exempt from taxation in respect of income or capital gains received with categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

The University is partially exempt in respect of Value Added Tax (VAT), so that it can recover only a minor element of VAT charged on its inputs. Irrecoverable VAT on inputs is included in the costs of such inputs and added to the cost of tangible fixed assets as appropriate, where the inputs themselves are tangible fixed assets by nature.

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14. CASH FLOW STATEMENT

Cash flows comprise increases or decreases in cash. Cash includes cash in hand, deposits repayable on demand and overdrafts. Deposits are repayable on demand if they are in practice available within 24 hours without penalty. No investments, however liquid, are included as cash.

15. PROVISIONS FOR LIABILITIES

Provisions (other than provisions for post-retirement benefits) are recognised when the University has a present legal or constructive obligation as a result of past events, it is more likely than not that an outflow of resources will be required to settle the obligation and the amount can be estimated reliably.

A contingent liability arises where the University has a possible obligation as a result of past events, or where the University has a present obligation as a result of past events, but where the transfer of economic benefit to settle the obligation is not probable, or the amount of the liability cannot be measured with sufficient reliability. Contingent liabilities are disclosed in the notes to the financial statements.

16. DEBT ACCOUNTING POLICY

All loans and short-term deposits held by the University are classified as basic financial instruments in accordance with FRS 102. These instruments are initially recorded at the transaction price less any transaction costs. Basic financial instruments are subsequently measured at amortised cost as required under FRS 102.

17. CRITICAL ACCOUNTING ESTIMATES

RECOVERABILITY OF DEBTORS

Provision is made for debts that are not considered to be collectable – referred to as a bad debt provision. This provision is calculated based on experience of previous years’ collectability of differing type of debt and applied to the amount of outstanding debt. The University currently provides for 75% of outstanding student debt relating to prior years and 30% current year outstanding student debt.

18. RESERVES

Reserves are classified as restricted or unrestricted. A restricted, revaluation reserve is held, released annually to the income and expenditure account, in accordance with the university depreciation policy. An unrestricted retained earnings reserve is also held.

19. CRITICAL JUDGEMENTS AND ASSUMPTIONS

i) INCOME RECOGNITION

The University applies judgement when determining the value and timing of income items recognised in the financial statements. This includes determining when performance related conditions have been met and the revenues associated with partially delivered courses where the activities have not been fully completed at the reporting date.

ii) IMPAIRMENT OF ASSETS

Inventory checks are carried out regularly to ensure fixed asset existence and to determine whether those fixed assets have suffered any impairment loss. If there is an indication of impairment, the recoverable amount of any affected asset is estimated and compared to its carrying amount. If the estimated recoverable amount is lower the carrying amount is reduced and the impairment loss recognised immediately in the period is arises.

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STATEMENT OF COMPREHENSIVE INCOME

INCOME
Funding Body Grants
Tuition Fees and Education Contracts
Research Grants and Contracts
Other Operating Income
Investment Income
Total Income
EXPENDITURE
Staff Costs
Other Operating Expenses
Depreciation
Interest and other finance costs
Total Expenditure
Surplus before tax
Taxation
Surplus for the year
Transfers between revaluation and
income and expenditure reserve
Total Income for the year
Represented by:
Unrestricted Income
Revaluation reserve income		 Notes
1
2
3
4
5
6
7
8		 Year ended
31 July 2021
£
1,125,753
20,893,042
2,620
2,097,680
5,033
24,124,128
14,224,457
6,456,870
1,272,070
131,952
22,085,349
2,038,779
-
2,038,779
147,397
2,186,176
2,038,779
147,397
2,186,176		 Year ended
31 July 2020
£
1,029,557
20,265,531
3,958
2,459,423
26,695
23,785,164
15,168,771
6,775,451
1,280,105
143,929
23,368,256
416,908
-
416,908
147,397
564,305
416,908
147,397
564,305

All items of income and expenditure relate to continuing activities

Page 29

Newman University

Reports and Financial Statements for the Year Ended 31 July 2021

STATEMENT OF CHANGES IN RESERVES

Year Ended 31 July 2021

Balance at 1 August 2019
Surplus for the year
Transfer between revaluation and income and expenditure
reserve
Total Income for the Year
Balance at 1 August 2020
Surplus for the year
Transfer between revaluation and income and expenditure
reserve
Balance at 31 July 2021		 Income &
Expenditure
Reserve
Revaluation
Reserve
Total
£
£
£
29,655,838
416,908
147,397
6,652,675
-
(147,397)
36,308,513
416,908
-
564,305
(147,397)
416,908
30,220,143
2,038,779
147,397
6,505,278
-
(147,397)
36,725,421
2,038,779
-
32,406,319
6,357,881
38,764,200

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Newman University

Reports and Financial Statements for the Year Ended 31 July 2021

STATEMENT OF FINANCIAL POSITION

FIXED ASSETS
Tangible Fixed Assets
Investment in subsidiary
CURRENT ASSETS
Stocks
Trade and other receivables
Short Term Investments
Cash and cash equivalents
CREDITORS: Amounts falling
due within one year
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS: Amounts falling
due after more than one year
PROVISIONS FOR LIABILITIES
AND CHARGES
NET PENSION LIABILITY
TOTAL NET ASSETS
RESERVES
Income and expenditure reserve
Revaluation Reserve
TOTAL RESERVES		 Notes
7
9
10
13
11
11
12
19
16
15		 Year ended
31 July 2021
£
34,748,838
2
34,748,840
28,924
1,487,832
2,500,000
8,532,621
12,549,377
(3,479,929)
9,069,448
43,818,288
(5,045,834)
(8,254)
-
38,764,200
32,406,319
6,357,881
38,764,200		 Year ended
31 July 2021
£
34,748,838
2
34,748,840
28,924
1,487,832
2,500,000
8,532,621
12,549,377
(3,479,929)
9,069,448
43,818,288
(5,045,834)
(8,254)
-
38,764,200
32,406,319
6,357,881
38,764,200		 Year ended
31 July 2020

£

35,583,309

2

35,583,311
31,515
1,352,792
-
8,300,068
9,684,375
(3,143,000)

6,541,375

42,124,686

(5,379,167)

(20,098)

-

36,725,421

30,220,143

6,505,278

36,725,421		 Year ended
31 July 2020

£

35,583,309

2

35,583,311
31,515
1,352,792
-
8,300,068
9,684,375
(3,143,000)

6,541,375

42,124,686

(5,379,167)

(20,098)

-

36,725,421

30,220,143

6,505,278

36,725,421
34,748,840





 35,583,311
12,549,377
(3,479,929)		 9,684,375
(3,143,000)
9,069,448 6,541,375
43,818,288
(5,045,834)
(8,254)
-		 42,124,686
(5,379,167)
(20,098)
-
38,764,200 36,725,421
32,406,319
6,357,881		 30,220,143
6,505,278
38,764,200 36,725,421

The financial statements on pages 25 - 41 were approved by Council on 24 November 2021 and signed on their behalf by:

………………………………….........

Mr Jonathan Day (Chair of Council)

Professor Jackie Dunne ……………………………………… (Vice-Chancellor/Council Member)

The accompanying accounting policies and notes form part of these financial statements.

Registered Company Number: 05493384

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Newman University

Reports and Financial Statements for the Year Ended 31 July 2021

STATEMENT OF CASH
Surplus on continuing operations
Adjustment for Non-Cash Items
Depreciation charges
(Increase)/decrease in stocks
(Increase)/decrease in debtors
Increase/(decrease) in creditors
(Decrease)/increase in provisions
Adjustment for Investing and Financing Activities
Investment Income
Interest Payable
Capital Grant Income
Net Cash Inflow from Operating Activities
Cash flows from Investing Activities
Capital Grant Receipts
Withdrawal of Deposits
Investment Income
Payments made to acquire fixed assets
New Deposits
Net Cash flows from Investing Activities
Cash flows from Financing Activities
Interest Paid
Repayments of Amounts borrowed
Net Cash flows from Financing Activities
(Decrease)/increase in cash and cash equivalents in the
year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 FLOWS
Notes
13
13		 FLOWS
Notes
13
13		 Year ended
31 July 2021
£
2,038,779
1,272,070
2,591
(135,040)
150,904
(11,844)
(5,033)
131,952
(181,426)
3,262,953
181,426
-
5,033
(437,599)
(2,500,000)
(2,751,140)
(131,952)
(145,834)
(277,786)
234,027
8,298,174
8,532,201		 Year ended
31 July 2020
£
416,908
1,280,105
(6,634)
(359,102)
134,388
(11,694)
(26,695)
143,929
(78,806)
1,492,399
78,806
2,554,287
26,695
(338,920)
-
2,320,868
(143,929)
(83,334)
(227,263)
3,586,004
4,712,170
8,298,174

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Newman University

Reports and Financial Statements for the Year Ended 31 July 2021

NOTES TO THE FINANCIAL STATEMENTS

1. FUNDING BODY GRANTS

Office for Students Recurrent Grant
Office for Students Capital Grant
Office for Students Other Grant
UK Research & Innovation Grant
DfE Other Grants
2.
TUITION FEES AND EDUCATION CONTRACTS
UK Full-time Students
Non UK Full-time Students
UK Part-time Students
Examination Fees
Other Fees & Charges
3.
RESEARCH GRANTS & CONTRACTS
Research Grants
4.
OTHER OPERATING INCOME
Residences and Catering
Other Income		 Year ended
31 July 2021
£
489,150
181,426
163,308
267,069
24,800
1,125,753
19,441,494
9,400
1,437,467
-
4,681		 Year ended
31 July 2021
£
489,150
181,426
163,308
267,069
24,800
1,125,753
19,441,494
9,400
1,437,467
-
4,681		 Year ended
31 July 2020
£
548,599
78,806
-
275,203
126,949
1,029,557
19,441,494
9,400
1,437,467
-
4,681		 19,199,758
15,300
1,045,530
225
4,718
20,265,531
3,958
1,072,577
1,386,846
2,459,423
20,893,042
2,620
599,864
1,497,816
2,097,680

5. STAFF COSTS

The average number of persons (including senior post-holders) employed during the year, expressed as full-time equivalents, was 282 (2020: 279). No severance costs or compensation for loss of office costs were incurred during the period covered by the financial statements.

Payroll costs during the year were as follows:

Wages and Salaries
Teaching Staff
Non-Teaching Staff
Social Security Costs
Other Pension Costs
Emoluments of the Vice-Chancellor
1 August 2020 – 31 July 2021
Remuneration:
Pension contributions:
Total Emoluments		 Year ended
31 July 2021
£
5,856,958
5,238,243
1,154,500
1,974,756
14,224,457
173,000
40,966
213,966		 Year ended
31 July 2020
£
6,525,546
5,296,013
1,214,155
2,133,057
15,168,771
-
-
-

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Newman University

Reports and Financial Statements for the Year Ended 31 July 2021

Emoluments of the Acting Vice-Chancellor
1 August - 29 February 2020
Remuneration:
Pension contributions:
Total Emoluments
Emoluments of the Vice-Chancellor
1 March – 31 July 2020
Remuneration:
Pension contributions:
Total Emoluments		 Year ended
31 July 2021
£
-
-		 Year ended
31 July 2020
£
99,793
22,623
- 122,416
-
-
-		 72,083
17,069
89,152

The Vice-Chancellor’s remuneration comprises basic salary and employer’s pension contribution. In the financial year ending 31 July 2021 no bonus or severance, market supplements, salary sacrifice or allowances (paid or deferred) were made. The Vice-Chancellor’s basic salary remains in the bottom quartile of the heads of institution within the higher education sector when measured against sector benchmarks; including that of the Cathedrals Group of which Newman is a member. In determining the remuneration of the Vice Chancellor, the Remuneration Committee also recognises the financial constraints and the challenging environment facing the institution and sector. It was important that the University send a message to all stakeholders that it was mindful of the situation and that it will continue to exercise restraint in remuneration.

Following the Vice Chancellor’s resignation, on 3[rd] April 2019, the Deputy Vice Chancellor was appointed Acting Vice Chancellor, performing the full range of duties expected of the Vice Chancellor, at the same level of remuneration as the Vice Chancellor. On 1[st] March 2020 a new Vice Chancellor was appointed.

The Vice-Chancellor’s basic salary is 5.1 times the median pay of staff, where the median pay is calculated on a full-time equivalent basis for the salaries paid by Newman University to its staff. The Vice-Chancellor’s total remuneration salary is 5.3 times the median total remuneration of staff, where the median remuneration is calculated on a full-time equivalent basis for the salaries paid by Newman University to its staff.

Key management personnel

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the University and are represented by the Council appointed Senior Post-Holders, which comprises the Vice-Chancellor, Deputy Vice-Chancellor, the University Registrar and the Chief Financial Officer.

Salaries
Benefits in kind
Pension contributions
Employers NI
Total emoluments		 Year ended
31 July 2021
£
488,784
-
488,784
92,471
62,346
643,601		 Year ended
31 July 2020
£
446,870
-
446,870
102,644
57,126
606,640

Remuneration of higher paid staff, excluding pension contributions (excluding the Vice-Chancellor)

Basic Salary per Annum No of employees 2021 No of employees 2020
£100,000 - £104,999 1 1
£105,000 - £109,999 - -
£110,000 - £114,999 - -
£115,000 – £119,999 1 -

Council Members’ Expenses

No Council member has received any remuneration / waived payments from the University during the year (2020: NIL). The total expenses paid to or on behalf of Council Members was £67 (2020: £2,581). Due to the pandemic,

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Newman University

Reports and Financial Statements for the Year Ended 31 July 2021

travel and subsistence expenses incurred with respect to attendance at Council meetings and expenses incurred with respect to the provision of relevant continuing professional development for members have reduced significantly as meetings and training have been carried out remotely.

6. OTHER OPERATING EXPENSES

Other Operating Expenses include:
External Auditors’ Remuneration:
in respect of audit services
in respect of non-audit services
Internal Audit
Access and Participation
Access Investment
Financial Support
Support for Disabled Students
Research and Evaluation
Total		 Year ended
31 July 2021
£
25,800
1,680
17,662
Year ended
31 July 2021
£
318,000
181,000
238,000
20,000
757,000		 Year ended
31 July 2020
£
21,125
3,460
19,039
Year ended
31 July 2020
£
319,000
45,000
239,000
15,000		 Year ended
31 July 2020
£
21,125
3,460
19,039
Year ended
31 July 2020
£
319,000
45,000
239,000
15,000
618,000

A copy of the University Access and Participation Plan is available on the website at: www.newman.ac.uk/knowledge-base/access-and-participation-plan/ Staffing costs of £246,000 (2019/20 £247,000) are included within Access and Participation costs and these costs are included within note 5.

7. TANGIBLE FIXED ASSETS

Cost or Valuation
At 1 August 2020
Additions
At 31 July 2021
Depreciation
At 1 August 2020
Charge for the year
At 31 July 2021
Written down values:
At 31 July 2021
At 31 July 2020		 Land and
Buildings
£
47,981,285
217,901
48,199,186
12,863,200
1,132,745
13,995,945
34,203,241
35,118,085		 Fixtures, Fittings &
Equipment
£
1,660,533
219,698
1,880,231
1,195,309
139,325
1,334,634
545,597
465,224		 Total
£
49,641,818
437,599
50,079,417
14,058,509
1,272,070
15,330,579
34,748,838
35,583,309

The transitional rules set out in FRS 102 have been applied on implementing FRS 102. Accordingly, the book values at implementation have been retained.

Land and buildings were valued in 1993 at depreciated replacement cost by a firm of independent chartered surveyors. At 31 July 2021, land of £3,831,375 was held within land and buildings and is not depreciated.

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Newman University

Reports and Financial Statements for the Year Ended 31 July 2021

8. INTEREST

Interest and other finance costs relate to interest payable on the term loan, non-utilisation fees and interest on the revolving credit facility.

9. INVESTMENTS

The University holds 100% of the share capital of Newman Firmtrust Limited at a cost of £2 (2020: £2). Newman Firmtrust Limited is a trading company that is incorporated and registered in England and Wales. The principal trading activity of the company is the construction of a halls of residence and a building extension on behalf of Newman University, although it has essentially been dormant throughout the current and prior year.

The following is a summary of financial information in respect of the subsidiary at 31 July 2021:

Investment in Subsidiary
10.
TRADE AND OTHER RECEIVABLES
AMOUNTS FALLING DUE WITHIN ONE YEAR:
Fees and services
Prepayments and accrued income
11.
CREDITORS
AMOUNTS FALLING DUE WITHIN ONE YEAR:
Bank overdraft
Term Loans (see footnote)
Trade and other creditors
Payments received in advance
Social security and other taxation payable
Accruals
AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR:
(see footnote)
Revolving Green Fund
Term Loan
Term Loan		 Year ended
31 July 2021
£
2
Year ended
31 July 2021
£
582,276
905,556
1,487,832
Year ended
31 July 2021
£
420
333,333
1,981,037
104,401
308,517
752,221
3,479,929
150,000
208,334
4,687,500
5,045,834		 Year ended
31 July 2020
£
2
Year ended
31 July 2020
£
642,899
709,893
1,352,792
Year ended
31 July 2020
£
1,894
145,834
891,331
105,536
318,540
1,679,865
3,143,000
150,000
291,667
4,937,500
5,379,167

A term loan of £1,000,000 was drawn down in 2012, which is repayable in regular instalments totalling £83,333 per annum. The rate of interest on the loan is variable and based on 1.75% over LIBOR base rate.

A term loan of £5,000,000 was negotiated in February 2019, with a two-year capital repayment holiday with first amortisation on 27[th] May 2021, repayable in regular instalments totalling £250,000 per annum. The rate of interest on the loan is fixed rate until February 2026 (7 years) at 1.2980% plus loan margin 1.1% (2.3980% total), payable quarterly.

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Newman University

Reports and Financial Statements for the Year Ended 31 July 2021

A four year revolving credit facility of £2,000,000 was negotiated in February 2019. Due to uncertainty in the economic climate due to COVID-19, in April 2020 this facility was utilised in full for a period of three months to July 2020 when repaid in full. The terms of drawdown are 0.75% over LIBOR base rate, with a non-utilization fee of 0.3%.

INCLUDED WITHIN THE ABOVE ARE AMOUNTS FALLING DUE AS FOLLOWS:-

Between one and two years:
Term Loan
Term Loan
Between two and five years:
Term Loan
Term Loan
More than five years:
Revolving Green Fund
Term Loan		 Year ended
31 July 2021
£
166,666
500,000
666,666
Year ended
31 July 2021
£
41,668
750,000
791,668
150,000
3,437,500
3,587,500		 Year ended
31 July 2020
£
166,666
500,000		 Year ended
31 July 2020
£
166,666
500,000
666,666
Year ended
31 July 2020
£
125,001
750,000
875,001
150,000
3,687,500
3,837,500

12. PROVISION FOR LIABILITIES AND CHARGES

At 1 August 2020
Transfer from/(to) Statement of Comprehensive
Income
At 31 July 2021
13. CASH AND CASH EQUIVALENTS
Cash and cash equivalents
Bank Overdraft
Total		 At 1 August 2020
Transfer from/(to) Statement of Comprehensive
Income
At 31 July 2021
13. CASH AND CASH EQUIVALENTS
Cash and cash equivalents
Bank Overdraft
Total		 Enhanced
8,298,174
234,027
8,532,201

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Newman University

Reports and Financial Statements for the Year Ended 31 July 2021

14. RECONCILLIATION OF NET DEBT
Net Debt as at 1 August 2020
Movement in Cash and Cash Equivalents
Movement in Overdraft
Repayment of Loans
Other non-cash movements
Net Debt as at 31 July 2021
Change in Net Debt
Analysis of Net Debt:
Cash and Cash Equivalents
Borrowings: Amounts falling due within one year
Unsecured Loans
Bank Overdraft
Balance as at 31 July
Borrowings: Amounts falling due after one year
Unsecured Loans
Revolving Green Fund
Balance as at 31 July
Net Debt
15. REVALUATION RESERVE
Revaluations
At 1 August and 31 July
Contributions to Depreciation
At 1 August
Released in year to general reserves
At 31 July
Net Revaluation Amount
At 31 July
16. INCOME AND EXPENDITURE RESERVE
Income and Expenditure Reserve
Balance at 1 August
Surplus for the year
Depreciation released in the year from revaluation reserve
Balance as at 31 July

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Newman University

Reports and Financial Statements for the Year Ended 31 July 2021

17. CONTINGENT LIABILITY

Exchequer interests (representing the contributions made by OfS towards the construction and refurbishment of University buildings) amounted to £1,585,025 as at 31 July 2021. Exchequer interests are amortised over 10-15 years and are repayable only in the event of insolvency or a significant reduction in the level of publically funded activity.

In the event of a substantial change in the mission of the University to the effect that the University is no longer concerned with the provision of education as a Catholic institution, the University may be liable to pay an amount to the Catholic Education Service of up to 25% of the value of the premises. It is not possible to quantify the amount of the contingent liability.

18. STUDENT NUMBERS

The number of students attending courses
(excluding short courses) at the University were:
Full-time
Part-time		 2021
2,223
620
2,843		 2020
2,145
648
2,793

19. PENSION SCHEMES

The three pension schemes for the University's staff are the Teachers' Pension Scheme (TPS), Aviva Pension scheme (APS) and National Employment Savings Trust (NEST). The assets of the schemes are held in separate administered funds.

Total pension cost for the year
Teachers’ Pension Scheme: employer contributions paid
Aviva Pension Scheme: employer contributions paid
NEST: employer contributions paid
Total Pension Cost for Year
Made up of:
Employer costs
Total Pension Cost for Year		 Year ended
31 July 2021
£
1,366,670
605,275
2,811		 Year ended
31 July 2020

£
1,515,088
615,050
2,919
1,974,756
1,974,756		 2,133,057
2,133,057
1,974,756
2,133,057

(a) TPS

Introduction

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

The Teachers' Pension Budgeting and Valuation Account

Although members may be employed by various bodies, their retirement and other pension benefits are set out in regulations made under the Superannuation Act 1972 and are paid by public funds provided by Parliament. The TPS is an unfunded scheme and members contribute on a ’pay as you go‘ basis – these contributions, along with those made by employers, are credited to the Exchequer under arrangements governed by the above Act.

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Newman University

Reports and Financial Statements for the Year Ended 31 July 2021

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

Valuation of the Teachers' Pension Scheme

The latest actuarial review of the TPS was carried out as at 31 March 2016 and in accordance with The Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014. The valuation report was published by the Government Actuary’s Department on 5 March 2019. The key results of the valuation and the subsequent consultation are:

The new employer contribution rate for the TPS was implemented in September 2019.

A full copy of the valuation report and supporting documentation can be found on the Teachers’ Pension Scheme website at the following location:

https://www.teacherspensions.co.uk/news/employers/2019/04/teachers-pensions-valuation-report.aspx

Scheme changes

Following the Hutton report in March 2011 and the subsequent consultations with trade unions and other representative bodies on reform of the TPS, the Department published a Proposed Final Agreement, setting out the design for a reformed TPS which was implemented from 1 April 2015.

The key provisions of the reformed scheme include: a pension based on career average earnings; an accrual rate of 1/57th; and a Normal Pension Age equal to State Pension Age, but with options to enable members to retire earlier or later than their Normal Pension Age. Importantly, pension benefits built up before 1 April 2015 will be fully protected.

In addition, the Proposed Final Agreement includes a Government commitment that those within 10 years of Normal Pension Age on 1 April 2012 will see no change to the age at which they can retire, and no decrease in the amount of pension they receive when they retire. There will also be further transitional protection, tapered over a three-and-a-half-year period, for people who would fall up to three and a half years outside of the 10-year protection.

Regulations giving effect to a reformed Teachers’ Pension Scheme came into force on 1 April 2014 and the reformed scheme commenced on 1 April 2015.

FRS 102 (28)

Under the definitions set out in FRS 102 (28.11), the TPS is a multi-employer pension plan. The University is unable to identify its share of the underlying assets and liabilities of the plan.

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

(b) Aviva Pension Scheme (APS)

The APS is operated by the University and is a defined contribution scheme designed to provide retirement benefits for any of its permanent employees who elect to join the scheme. The assets of the scheme are independent of the University's finances. The pension costs charged to the Income and Expenditure account (Note 6) include contributions payable by the University to the scheme.

(c) NEST

The University introduced the option of NEST for all employees who are ineligible to join TPS or APS. This is a workplace pension scheme set up by the government to meet the requirements of the new auto enrolment pension rules.

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Newman University

Reports and Financial Statements for the Year Ended 31 July 2021

20. PRIOR PERIOD ADJUSTMENTS

Following a review of short term investments held by the University, it was deemed that assets previously classified as short term investments were deemed to constitute cash and cash equivalents and therefore these have been reclassified as such. The movement between short term investments and cash and cash equivalents in 2020/21 was £5.5m and £4m in the comparative 2019/20 figures.

Newman University

Page 41