Reports and Financial Statements for the Year Ended 31 july 2022 NEWMAN UNIVERSITY Reports and Financial Statements For the Year Ended 31 July 2022 Registered Charity Number: Registered Company Number: 1110346 05493384 Newman University Reports and Financial Statements for the Year Ended 31 July 2022 CONTENTS Contents................ Newman University................................................................................... .................. Report of the Council (incorporating the Strategic Report) ...................................... Corporate Governance................................................................................................ 16 Statement of Responsibilities of Council Members....................................................... 19 Independent Auditor's Report to Council ..................................................................... 21 Statement of Principal Accounting Policies ............. .25 Statementof Comprehenslve Income........................................................................... 29 ststementof Changes in Reserves............................................................................... 30 Statementof Financial Positlon.................................................................................... 31 ststement of Cash Flows ............................................................................................. 32 Notes to the Flnanclal Statements............................................................................... 33 Newman University Page 2 Reports and Financial Ststements for the Year Ended 31 luly 2022 NEWMAN UNIVERSITY CONsfITUTION 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. 11103461. Council Members and their interests The Council Members serving during the year to 31 July 2022 and up to the date of approval of these financial ststements were.. Chair of the Council Jonathan Day (until 31 December 2021) Margarel House (from I lanuary 20221 Independent Council Members- Glen Alexander (until 30 November 2021) Catholic Members Jonathan Day (Chair of Counciland Chair of Nominat￿￿5 & Governan￿ Committee unti131 De￿Mber2021J Bishop David Evans Deirdre Finucane ( Vice-ChJir of Nominatsons and Governan Committee Irom 23 February 202J Karan Gilmore Professor Margaret House (Chairof Councilfft)m l January 2022, Vitt-chair of Fillan￿ and General Purpose5 Committee from 22 June 2022) Phillip Lennon (Chair ofAuditandRisk CommiÈtccJ Elizabeth McGrath QC (until 10 November 2021) David Brooks (from 22 June 20221 Angel Garcia Velazquez (from 22 June 2022) Independent Council Members- Gayle Ditchbum (VI￿-Chair of Councll Chalr of Nominat￿15 and Governance Committee from 23 February 2022) Stephen Kenny (Chair of Finan￿ and Generdl Purposes Committee, Chair of RemUnerat￿n5 Committee) Professor Femi Oyebode Richard Wallace Tony Harris (from 22 June 2022) non-catholic Members Council Members - Ex-officio Profe550r lacquelyn Dunne (VIce-Chan￿}10r) Archbishop Bernard Longley Stsff Council Members Leoarna Mathias Mehreen Milza Student Council MemtEr Alex Reston (until 30 June 2022) Zoe Harrbson (from l July 2022) The Council Members received no remuneratlon 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 meeting5 in the period covered by this repA)rt. 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. Newman Universty Page 3 Reports and Financial Statements for the Year Ended 31 July 2022 PRINCIPAL ADDRESS Newman University Genners Lane Bartley Green Birmingham 832 3NT VICE-CHANCELLOR Professor J Dunne BANKERS National Westminster Bank PIC Commercial Banking 4th Flcor, 2 St Philip'5 Place Birmingham B3 2RB SOLICThORS Mills & Reeve 78-84 Colmore Row Bimiingham B3 2AB Shakespeare Martineau No I Colmore Square Birmingham B4 6AA AUDITORS Ilntemal) RSM UK Risk Assuran￿ SerVI￿s LLP St Philips Point Temple Row Birmingham B2 SAF (External) Grant Thornton UK LLP 17th FIcM)r 103 Colmore Row Birmingham B3 3AG Newman University Page 4 Reports and Financial Statements for the Year Ended 31 July 2022 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 2022. PRINCIPAL ACTIvrrY 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 tK)5tgraduate degree level courses. These pmgrammes were offered through the two Faculties of the University- In planning a¢tivities, the Council Mcmbcrs have given careful consideration to the Charity Commission s general guidance on public benefit. OPERATING AND FINANCIAL REVIEW Introduction The University is named after the 19th century cardinal St John Hersry Newman who wrote'The idea of a university, in 1652, and we are still guided by the vision of a community of scholars. The University is built around community and the belief that education enables students to develop new ways of understanding the world, to help make a rK)Sitive impart within it. This is delivered through smaller class sizes and an interactive learning style. The Catholic ethos has been retained and our students are from all faiths and none. The UnNersity 15 proud of its diverse, friendly and inclusive environment, where students are welcomed and receive transformational learning opportunities together with support in preparing for employment. The In(KJerii single campus, eight miles sOUthwe5t of Bimiingham city centre has had a recent £20m investment into the campus facilities, building Halls for an additional 100 students, and further improving the teaching, learning and social spaces for students. In addition, the building of a new school of Nursing and Allied Health has been established to broaden the curriculum including new courses in Adult Nursing, Mental Health Nursing and Physiotherapy to stsrt in September 2023. The University will be providing qualified practttioners fmm diverse backgrounds, for the local West Midlands Health sector, and beyond. For many of our students, being the first in their family to enter higher education, could be a daunting prospect and, as an institution, we support new learners to achieve their goals. In the 2022 National Student Survey our teaching quality has been recognised as being in the top 25 % of universities in England and Wale5, and first amongst the Bimiingham universities. Our interactive teaching styles, coupled with small class sizes, enabling lively discussion in an inclusive environment in which all students have the Chan￿ to participate and to be heard, is how we teach and how Newman students learn. Newman University Is first in England and Wales for first generation students entering Higher Education (Sunday Times G(K)d University Guide). In the Sunday Times Gocxi University Guide, Newman Is noted as being joint first in England and Wales for highest percentage of students from stste schools entering higher education. This may reflect our location but is also about the proactive outreach work and widening participation work that the University actively develop5, to communicate the opportunities open to young people to enter higher education, The University Is'teaching-led, and does not employ staff for research alone but ensures that students have regular contact with active researchers. With our distinctive commitment to transfomiational impart, we maintain our mission to make a posltive difference to individuals and communities. In the latest Research Excellence Framework (REF 2021) Newman doLJbled the number of academic teams submitting work, and also doubled research of world-leading status. Research is undertaken across a wide range of academic and professional disciplines and attracts external funding Contlnulng to build on ourteaching foundatlons As a stude￿t-￿ntred University, Newman's challenging yet supportive learning environment enables students to engage with theories and concepts, discuss ideas and Ixome independent learners and creative thinkers able to make a difference in the world. Newman University Page 5 Reports and Financial Ststements for the Year Ended 31 July 2022 The unique style of teaching and learning at Newman and how students feel part of a community at Newman 15 reflected in the 2021 National Student Survey {NSS) resuFts. Newman scored I" amongst the Birmingham universities to feel more likely to be a part of a learning community of staff and students. Newman's library was a150 Voted number l in Birmingham in 2021 for the 4th year running. The University stsff were scored aEx)ve the benchmark for being able to explain things to students and also for timely feedback. According to the NSS results, students at Newman were 70kn more likely than the sertor average to be provided with opportunities to apply what they have learnt, which reflerts on the focus of employability that the University offers to Students, as well as the interactive teaching styles, coupled with small clas5 sizes, enabling lively discussion and innovative teachingi 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 Conferen￿ is delivered and is growing year on year in the number of students and staff that participate. The conference builds on projerts between academics, students, and professional support staff. The initiative provides a Chan￿ to think ideas through and celebrate the evolving learning community. The project scheme allows students to propose projetts and bid for funding on an annual basis. They put together teams of students, academics and professional 5UPPOrt staff to take forward research or interventions that will enhan￿ the student experien￿ at Newman. STRATEGIC REPORT Reaching out into the Clty of Birmingham, supportlng local communities and pupils from widening partlclpation 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 develO￿d 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 groLJPS and low participation neighlx)urhoods. Newman supports The Sanrtuary Scholarship (formerly the Article 26 scholarship) which supports students who have fled persecution and sought asylum in the UK. There are six Sanctuary scholarships and four of these have been reserved for Ukrainians in a scheme introduced this year The University continues to develop Its links with the city of Blrmingham and was a foLJnding member of Citizens UK Bimingham, an allian￿ of civil society groups within the city, and continues to actively support and engage with the objertive of the group. The vision is to build a diverse and independent alliance of cwil 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 has enabled the University to support potential students from disadvantaged backgrounds from across the city. 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. Newman University Page 6 Reports and Financial Statements for the Year Ended 31 July 2022 Key financial performance indicators The University's main key financial performan￿ indicators are summarised below. Academic performance is more difficult to summarise in a simple indicator and therefore this is more fully reviewed in a later settion 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 perfomiance indicator 2021122 Target 2021122 Achievement 2020121 Achievement student Numbers (home, full time) 2208 2190 2223 Surplus as % turnover 30/0 (min) 1.7010 8.45Wo Pay costs / income 65Wo (max) 61.30 58.9% Debt servicing costs 4 % (max) 1.89% 1.150/0 Minimum cash levels £2.5m £11.5m £llm Academic performance Newman University ha5 trained and educated over 14,000 primary and secondary school teachers sin 1968 for Birmingham, the West Midlands and further afield. In addition, the University offer5 continuing professional development (CPD) programmes for seNing teachers and the school workfor￿, such as the MA Education and a range of postgraduate certificates, in addition to PhD study. Newman also offer5 national professional recognition via the Teaching and Learning Academy (TL4) 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 successfully maintains fts registration status w￿h the Office for Students with the Registration category of Approved (fee cap). The Universivs excellent teaching and learning performan￿, reflected in being number one in Birmingham for student satisfartion in NSS 2022, was acknowledged in the forthcoming 2023 Good University Guide, which ranked the University 28th nationally among all universitie5 for teaching and learning on the basis of our performance in 2021-22. The Universty has continued to suc￿sFul 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 20151. 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 develotEd by the Faculty, and in 2020 they delivered a new BA Hon5 Primary 3-7, BA Hons Primary 5-11 with Foundation year, to fill an identified gap in the market. Working in partnership and collaboratively The University continues to develop and maintain partnerships with a number of academlc partners these include collaborative provision with, 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 worknng in partnership with two sch0ol-￿ntred initial teacher training (scrm consortia as their PGCE provider, thereby contributing to teacher supply across the country. 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 5UPPOrt and increasing our offer lo students in order to meet their needs, as well as those of the employers and Ihe wider labour market. In developing initiatives for the students, the University fully Newman University Page 7 Reports and Financial Statements for the Year Ended 31 July 2022 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 Strntegy and has developed a set of artion5 to address that strategy in line with our core values and commitments. To support implementstion, we have built an Employabilty Hub to support both students and local enterprises as well as c￿ate a welcoming space for employers within the wider West Midlands region. Newman continues to provide a breadth of experiences to students enabling them to reach their full potential. Being able to enrich student learning thmugh employer engagement is just one of the many ways in which student5 are supported. The success of Newman's graduates is due to the commitment of the University not only to give student5 good acaLlemic qualification5 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 advantsgeous Posltion 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 of which help to develop valuable planning, communications and team-working skills valued by employers. The Careers Service continues lo provide a wide range of education, information, advi￿ and guidance to help students - and graduates of up lo 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 lo book one-to-one personalised guidance sessions, workshops (such as the use of Linkedlnl and events such as the careers summer schools, fairs, and aecess to opportunities from employers and organisations. 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 scKial enterprises and entrepreneurs onto campus to share their experien￿ and ideas. The focLJS this year has been on particular support for the development of social and co-operative enterprises which is in line with our social justi￿ mission. In addition, our Higher Level Skills Match (HLSM) project works to identify a range of high-status beneficial pla￿Ments, particularly with small and medium-sized enterprises across the West Midlands, for our final-year and graduate students. As the reputation of our EnterpriselHLSM work has grown, colleagues have been invited to work as consultants with a range of SMES and larger corporation5 within the Birmingham and Solihull LEP. During 2021-22, we have continued 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 fa￿ 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 backgrotjnds and over a third of students utilise the services provided by the Student Support Service. Students requiring a little extra SLJpfK)rt in navigating a new challenge, confronting a problem or learning new skills can receive help. The wealth of support available to students include5 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 advi￿ are also available. In recent years, a number of new systems have been introduced to suprx)rt students to acces5 these resources more effectively. A new signposting guide, a new intranet-based safeguarding reporting system and the introduction of a new intranet- based triage system are helping students with wellbeing concerns to be able to request an appointment quickly with a prattitioner. Work on the campus has continued to develop to support our large numiErs of commuter students. Improvements to the catering outlets, including offering students facilities to heat up their own fo(KJ and the provision of chilled and hot water, enables students to bring their own food onto the campus and have comfortable soclal seating spaces in which to eat, as well as rebranding the Sanctuary Cafe Newman University Page 8 Reports and Financial Statements for the Year Ended 31 July 2022 to a more student friendly environment. Changes to the social spaces for students has enabled group working, as well as soC￿allS1ng betsveen taught activities. During 2020, Newman University signed the Care Leavers Covenant, an initiative estsblished to improve support to young people aged 16-25 leaving care. The initiative aim5 to harness the expert15e ènd resources of businesses, education providers and charities to ensure those leaving care have the necessary support and opportunities to suC￿d and thrive. The University also signed the Stand Alone Pledge in 2020, meaning we are publicly 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 subJ"ect, 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 clas5 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 tJ)or attendan￿ record. For over 10 years, Newman University has been helping new students to adapt to the world of Higher Education through a programme called HEAD5. Data reports a clear positive correlation between HEADS partiCTpation and the likelihcM)d of finishing studies with a first or up￿r Cla￿ second. This work was developed and extended to provide a HEADOnline, digital version of HEADstart with accessible materials and ￿llIght learning opportunities. Developing the academic portfolio to meet the needs of our prospective students After a review of the academic tK)rtfolio, a number of new courses were introduced looking at the needs of our students, employment opp)rtunities, as well as the 'fiV 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 Nursif)g and Allied Health Professions, with recruitment to Commen￿ 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 (BP5), and the UK Council for Counselling and Psychotherapy (UKCP). Research The gaining of research degree awarding powers {RDAP) 15 recogni5ed a5 being of strategic importan to the institution's development. Newman University has made the commitment to be in the wsition to apply for research degree awarding powers by 2023. AII FKJStgraduate research students enrolled for doctoral degrees with Newman during the year are also registered with Liverpool Hope University and will re￿1ve their award from them. It is intended that the partnership with LniertK)ol Hope University continues until Newman University gains its own research degrec awarding powers. The University prepared for a Validation of Research Degrees Panel meeting with colleague5 from Liverwol Hope who have oversight for postgraduate research. The intended outcome is that Newman will operate its own Research Degree Regulations and associated Code of Practice from 2023 in antiopation of a future RDAP application. Newman welcomed the publication of the REF 2021 results in March 2022. In comparison with REF2014, Newman more than doubled the staff submitted from 22 FtE (25 staff) to 56.9 {59 staln. In terms of the results, Newman also more than doubled the amount of research rated through the exercise a5 World-leading, the highest category. Consequently, Newman moved up seven pla￿S in the Research rankings published by Research Professional, the journal for researchers and research funding in Higher Education. Newman Universty Page 9 Reports and Financial Statements for the Year Ended 31 July 2022 COVID-19 During the year the University transitioned to being fully back to campu5 whist retaining some of the operational benefits proven through remote operations. Teaching returned to fully fa￿ to face during the last term, and this continues into 2022123. The continuation of hybrid operations and ongoing impacts of coronavirus have had some impacts of both income and costs. As the campus returns to a state of students back on campus the community feel and engagement for students is returning to pre- Covid rates. Sustainability Newman University has an Environmentsl Committee which has responsibility for promoting and achieving ever improving envimnmental standards. The University's Environmental Policy is reviewed annually and wlthin this FX)licy a number of targets are set including, gas, elertricity and carLK)n emissions, and these are monitored on a regular basis. The Carbon Management Plan has been updated to reflert the commitment that Newman University will be a negative carbon universty campus by 2035. In March 2019, Newman University achieved tx)th the ISO 14001 Environmental award and 150 50001 Energy award. An external audit of the ISO awards was undertaken and re-accreditation was achieved in April 2022. Newman continues to invest significantly in improving environmental perfomance. This includes further LED lighting upgrades, installation of additional 30kw solar panel systems, an air source heat pump, electric heaters for the hot water, and most re￿ntlY an air sourced heat pump to repla traditional gas heating wf(hin the newly refurbished School of Nursing. Overall energy consumption and CO emissions decreased across the estate compared to last year. Thi5 change is in relation to gas usage while degassing areas of the University and having a very mild winter. The table below Indlcates the University's carbon emlssions and sawngs across a range of areas.. Newman University Page 10 Reports and Financial Ststements for the Year Ended 31 July 2022 KPIItt1101211 Ikeco,Jm*141 IhecodM'N￿j Are 240 13.22 54A iml5sions Can5v￿P-1on 2,B*.i Carnpu5 £ B8.014 Entr 948.723 L.224.£30 3A75 xhau5t Carbon Eml561ons vin d2AO Newman UnNersity Page 11 Reports and Financial Statements for the Year Ended 31 July 2022 Financial review of the year The University's Income, Expenditure and Results for the year to 31 July 2022 are summarised as follows: 2021 2020 21 Income Expenditure 24,370,759 23,952,947 24,124,128 22,085,349 Surplus on continuing operations 417,812 2,038,779 Transfer from Revaluation Reserve in respect of depreciation of revalued assets 147,397 147,397 Comprehensive Income for the year 565,209 2,186,176 The University's totsl income in 2021122 of É24.3 million has increased by Ioh on the previous year. The University had budgeted for lower recruitment due to the impart of Covid and, with relatively fixed costs and the opportunity to invest cash into new optX)rtunities, a positive 0￿ratIng 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 academlc and professional education based on the values of respect for others, social Justi￿ and equality. Newman University seeks to make a positive differen￿ to individuals and communities through the contribution of stsff, students and graduates. Council is charged with the responsibility of setting the strategic dlrertion of the University. Council approved a Strategic Framework in February 2020 covering the period 2020-2025. The Strategic Framework pmvides 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, live5,' to work in partnership with students; to grow our institution; to nurture our staff,. to add to knowledge and CUlt￿vate wisdom; and to serve our diverse community and the wider world. Newman, in line with its motto 'ex umbris in veritatem, Cout of the shadows into truth,), is committed to continued enhan￿ment of its approach to formation for students and stsff. As expected, the commitment to teacher education, ft)r 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 provider5 of SchcM)l Direct training in the West Nidlands, working with Teaching School Allian￿$ and individual schools at both primary and secondary levels. Newman University remains deeply committed to the goa15 of widening access to, and participation in, higher education, offering flexible programmes of different ktnds. 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 IcTrtion-adjusted benchmarks in this area. Council is confident of the security of the University's position. With a healthy out-turn on the year, reasonable cash reseryes 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. Council Members thank the staff for their commitment to this shared endeavour and for their many sucCe￿e5 in the year. Newman University Page 12 Reports and Financial Statements for the Year Ended 31 July 2022 Principal risks and uncertainties 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 impart our ability to recruit some group5 of students andlor adequate￿ 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 direct￿ 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 balan￿, cash and debtors, which ￿present the University's maximum extx)sure to credf( 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 experien and their assessment of the current economic environment. The credit risk on liquid fund5 is limited beGiuse the counter-parties are banks with high credit rating5 assigned by international credit-rating agencies. The University has no significanl 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 activitie5. The University has loan facilities in pla￿, 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 resour￿5 in future years. Interest rate ri$k Interest-bearing assets comprfse of cash and bank deposits, all of which earn interest at fixed and floating rates. The University currently has E5.4m of debt which is Servi￿ with a mix of fix￿ and floating rates. The University 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 2022. The Suc￿sS of the University is reliant on the support of all of oiir £takeholders. It is important that we build positive relationships Wlth 5tskeholders that share our values, and working together towards shared goals assists us in delivering long-term sustainable 5ucces5. The Council considers the potential Consequen￿ 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 students, staff, suppliers, partners and the wider community. Decisions made by the Council are nformed by the University'5 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 attions of the Council and underline the aim of the University to achieve posltive outcomes for all of its stskeholders. 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 presentation5 Wlth regular updates on operational perf0rrnan￿ and on Newman University Page 13 Reports and Financial Ststements for the Year Ended 31 July 2022 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 temi strategy. Both stsff and student memfkrs sit on the Council in order to ensure regular engagement with these two key groups. Equality of opportunlty in employment The University has adopted a Single Equality Scheme, which was developed recognition of the interrelated nature of equalities legislation and in response to the Equality Att 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 retK)rted on as appropriate. It is the policy of the University that all stsff are required to undertake relevant equality and d6versity trainlng. Employee involvement The 2020-25 Strategic Framework gives a commitment to staff formation by encouraging stsff to develop and flourish in alignment with the strategic objettives of the University. Enhan￿ment of staff formation gcEs 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 practi￿ Unit are responsible for establishing training programmes at all levels of the institution. Staff are encouraged to be involved in the Universlty's committees, with a view to assuring full participation by staff members in all levels of organisational decision-making. The University has Joint Negotiating and Consultative Committee as the means for formal consultation and negotiation of temis 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 2021 to March 2022 is as follows:_ 15 staff acted as Trades Union Representatives with 10 spending between l %-50010 of their working hours on facility time and 5 spending 00/0 of their working hours on facility time. 0.06% 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 f(Kuses several of its goals on students and the SeN1￿/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 activitie5 and Council recognises that relationships with suppliers are important to the group's long-term SUC￿55 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. Jn agreements negotiated w￿h suppliers, the University endeavours to include and abide by specific payment temis. 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. Council is UFKlated regularly on legal and regulatory developments and takes these into account when considering future plans. The University conducts its business in accordan￿ with the seven principle5 identified by the CommTttee on Standards in Public Life (selflessness, integrity, objettivity, 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 condurt can be found within the Corporète Governance section of our Operating and Financial Review. Newman University Page 14 Reports and Financial Statements for the Year Ended 31 July 2022 The Context For Higher Education Newman University makes a regular assessment of the risk fartors 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 tsken 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-￿ntred University w￿h strong Catholic values, Newman is committed to providing a values-driven, fomiative 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 5upporL packages designed to provide assistance to a range of students, as well as a contextualised admissions pro￿55. This matches Newman's commitment to continue to be a centre of ex￿llenCe for widening pa￿CipatIon and Social mobility. In addition, the University will work to attract students from minority groups not currendy 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 Indernnity Provisions Directors, indemnity insurance, indemnifying each dirertor against liability to third parties, has been in place throughout the year ended 31 July 2022 and up to the date of approval of this report. Audltors Grant Thornton UK LLP offer themselves for reappointment as auditors in accordan￿ 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.. Professor Margaret House OBE (Chair of the Council) Professor Jackie Dunne (WIce-Chan￿lI0r1counCil Member) Date of Approval.. 23 November 2022 Newman University Page 15 Reports and Financial Statements for the Year Ended 31 luly 2022 CORPORATE GOVERNANCE This statement of Corporate Governance relate5 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-Chan￿110r are ex officio members and there are ttwo Members who are staff of the University and one student Member elected by the student body. Tlie roles of Chair arid Vice- Chair of the Council are separated from the role of the University's Chief Executive, the VI￿-chance110r. The matters especially reserved to the Council for decision are set OLJt 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 reTX)rts 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 Committee5- 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, and their decisions are formally reported to the Council. The Committees are formally constituted through the Standing Orders of the Council with temis of reference and comprise mainly of external member5 of the Council, one of whom is the Chair. University Council Nembers attend meetings regularly and this has ensured quoracy. The Finance and General Purposes Committee recommends t(} the Council the University's annual budgets and monitors performan￿ in relation to the budgets approved. The Remunerations Commtttee, chaired by the Chair of the Finance and General Purposes Committee, determines the remuneration of those memkrs of the University Leadership Team wlio are appoiiiled by the CDunol. The Audlt and Risk Committee meets with the external and inlernal auditors to discuss audit ffindings and to consider detsiled internal audit reports and recommendation5 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 adhe￿nce 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,. considers and advises Council on Safeguarding matter5,' and oversees the appointment of the chan￿lIOr, Vice-chancellor and other senior posts. As the University's governing bodyi Council has the ultimate responsibility for the governanco of the University and its compliance with the ongoing conditions of registration with the Office for Students. The University's Article5 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 tem)s of reference prescribe the delegation of responsibility for such academic governan￿ to Senate. Senate draws its membership entirely from the staff and the students of the University. Following review, the terms of reference of Senate 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 vi￿-Chan￿1l0r as Chair of Senate, featuring matters relating to reviews of the quality process and plans for academic development. The University has estsblished additional opportunities for Senate and Council to gain a deeper understanding of each other's roles. A 5enate- Council connertion meeting takes place annually. This meeting has a joint agenda with presentstions 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 Senate is Newman Unlversity Page 16 Reports and Financial Statements for the Year Ended 31 July 2022 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 opportunty to sit in on Senate meetings. The ViCe-Chan￿110r 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 OffI￿r for the University. The University maintain5 a Register of Interests of members of the Council and senior officers of the University, which may be consultcd by prior arrangement with the Clerk to the Council. In accordance with the Articles of Association, the University 5ecretsry and Registrar has been appointed as Clerk to the Council; their job description contains separate responsibilities for each of these tK)sts. The Clerk to the Council provides independent advi￿ on matters of governan￿ to all Council Members. STATEMENT ON INTERNAL CONTROL This statement on internal controls relates to the peri(Kl 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 Complian￿ risk as we15 as financial risk. Such a system is designed to manage rather than eliminate the risk of failure to achieve busines5 objectives and can only provide reasonable and not absolute assurantr against material misstatement or loss. The Counol is of the view that there is an ongoing prLxess for identifyingi evaluating and managing the University's significant ri5k5. It has b￿n in pla￿ for the year ended 31 July 2022 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 ￿ accords with best practice internal control guidan￿ for directors a5 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 performan￿ in relation to the approved budgets. The Remunerations Committee determine5 the remuneration of the m05t senior stsff, including the Vice-chancellor. The Nominations and Governan￿ Committee has been estsblished following good prartI￿ outlined in the CUC Higher Education Code of Governan￿ and its role is to seek out and consider applications for the mem￿rship 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 ohjert£, vi£ion, mission and values that then frame its six strategic objectives. The key ambition that stands out clearly is to work together in partnership to transfomi students, lives. The University is implementing the Framework through its 5ub-strategies and associated artion plans. Key Performance Indicators (KPIS) have been established and achievement is monitored by Council and they translate through to the Universlty'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 appmach 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 pr￿$S and identifies the main reporting procedures. It pla￿5 emphasis on the active management of risk rather than a monitoring of risk. Audit & Risk Committee members focus on the effective management andlor identification of risks including in the context of KPIS. A substantive review of the Risks takes place IMice 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. Newman University Page 17 Reports and Financial Statements for the Year Ended 31 July 2022 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: considered risk at meetings of the University Leadership Team and the University Operations Team; > implemented and emtedded the new Risk Management Policy that was revised the year before; > rewrted to the Audit and Risk Committ* at each rn￿ting, and annually at Council, on risk issues; used the risk register to determine the direction of the internal audit plan. experienced no significant internal control weaknesses or failures during the period covered by the financial statements and the period up to the date of approval. 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- > clear definitions of the responsibilities of, and the authority delegated to, heads of academic subject areas and administrative departments,. a comprehensive medium- and short-term planning pro￿5, supplemented by detailed annual income, extEnditure, capital and cash flow budgets,, > regular reviews of key perfomiance indicators and business risks {including operational, compliance and financial risk) and quarterly reviews of financial results involving variance reporting and updates of forecast out-turn5; > clearly defined and formalised requirements for approval and control of expenditure, with investment decisions involving capital or revenue expenditure being subject to fomial detailed appraisal and review according to approval levels set by the Council,. > comprehensive financial regulations, detailing financial controls and procedure5, approved by the Audit and Risk Committee and Council,. and > a professional Internal Audit SeNice whose annual programme is approved by the Audit and Risk Committee and endorsed by the Council, and whose head provides the Council with a report on internal audit artivity within the University and an opinion on the adequacy and effectiveness of the University's system of internal control, including internal financial control, which operate5 to stsndards compliant with the offi￿ for Students Regulatory Framework. Professor Margaret House OBE (Chair of the Council) Professor Jackie Dunne (Vice-chancellorlcouncil Member) Date of Approval: 23 NovemkEr 2022 Newman University Page 18 RetK)rts and Financial Statements for the Year Ended 31 July 2022 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 affair5 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 accordan￿ with applicable law and regulations. Company law requires the Council to prepare financial statements for each financlal year. Under that law, the Council is required to prepare the financial statement£ 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 Student5 COfS'I Accounts Dirertion (issued Ottober 2019), the Ofs Terms and conditions of funding for higher education institutions (issued May 2020) through its accountable offi￿r. 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.. selett suitsble accounting policies and then apply them consistently,. make judgements and accounting estimates that are reasonable and prudent- state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements,. and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the University will continue in business. The Council is responsible for keeping adequate accounting records that a￿ sufficient to show and explain the University's transartions 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 O 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 (i55ued October 2019) and the Companies Art 2006. They are also responsible for safeguarding the assets of the University and hen￿ for tsking reasonable steps for the prevention and detection of fraud and other irregularities. The members of Council have taken reasonable step5 to: ensure that funds from the Ofs are used only for the proper purposes for which they have been given and seek to achievc value for money in accordance with the Ofs Terms and condition5 of funding for higher education institutions (issued May 2020) and any other conditions which the ftjnding b)dy may from time to time prescribe; ensure that the University has a robust and comprehensive system of risk management, control and corporate governance, which includes the prevention and detection of corruption, fraud, bribery and irregularities,. ensure that there is regular, reliable, timely and adequate infomiation to monitor perfomiance and track the use of public funds; plan and manage the University's activities to remain sustainable and financially viable; ensure that it informs the Ofs of any material change in Its CIrcumstsn￿, including any significant developments that could impact on the mutual interests of the University and the Ofs; Newman Universlty Page 19 Reports and Financial Statements for the Year Ended 31 July 2022 eTr5u￿ that there are adequate and effective arrangements for the management and quality assurance of data submitted to HESA, the Student Loans Companyi the Ofs and other funding or regulatory bodies,. ensure an effective framework- overseen by the University's senate, academic board or equivalent- to manage the quality of learning and teaching and to maintain academlc standards,. and consider and act on the 0￿ assessment of the University's risks specifically in relation to these funding purpose5. The Council Is responsible for the maintenance and integrity of the corp)rate and ffinancial 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 confimi that., so far as each Member is aware, there is no relevant audit information of which the Unlversity's auditor is unaware,. and the Nembers have taken all the steps that they ought to have tsken as Members in order to make themselves aware of any relevant audit infomiation and to establish that the University's audf(or is aware of that information. Approved on behalf of the Council by: Professor Maryaret House OBE (Chair of the Council) ,IciL'ILo •LL Professor Jackle Dunne (Vice-chancellorlcouncil Member) Date of Approval: 23 November 2022 Newman University Page 20 Reports and Financial Statements for the Year Ended 31 July 2022 Independent auditorfs report to the Council of Newman Univèrsity Opinion We have audited the financial strdtements of Newman University (the 'university') for the year ended July 2022, which comprise the Ststement of Comprehenswe Incc)me, Statement of Changes ln ReseNes, Statement of Financial P051tion, Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting ￿lIcies. The financial repDrting framework that has been applied in their preparation is applicable law and United Kingdom AccoLJnting Standards, including Financial Re￿￿ng Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, {United Kingdom Generally Accepted Accounting Pratticel. In C>UT opinion, the financial statements.. give a true and fair view of the state of the university's affairs as at 31 July 2022 and of ts surplus, incorne and expenditure, gains and losses, changes in reserves and cash flows for the year then ended. have beer) properly prepared in accordance with United ￿ngdoM Generally Accepted Accounting Practice and the Statement of Recommended Prattice: Accounting for Further and Higher Education published in October 2018. and have been prepared in accordan￿ with the requirements of the Companies Act 2006. Ba515 for opinion We condurted our audit in accordance with International Stsndards on Auditing (UK) IISAS {UK}l and applicable law. Our responsibil￿e5 under those standards are further described in the'Auditor's restK)n5ibilities for the audit of the financial thtements, 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 FFiC's Ethical Standard, and we have fulfilled our other ethical responsibilib.es in accordance with these requirernents. We believe that the audit evidence we have obtained is sufficient and appropriate to provide 3 basis for our opinion. Conclusions relating to going con¢ern We are reS￿)nSible for concluding on the appropriateness of the Council's use of the gcing concern basis of accounting and, based on the audrt eviden￿ obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the universitV5 ability to continue as a going concern. If we conclude that a material uncertainty exists, we are ￿qUired to drnw attention in our report to the related disclosure5 in the financial statements or, If such disclosures are inadequate, to modify the auditor'5 opinion. Our conclusions are based on the audit eVIden￿ obtained up to the date of our report. However, fuiure events or Cond￿on$ may cause the university to cease to continue as a going concem. In c>ur evaluation of the Council's conclusions, we considered the inherent risk5 associated with the university's busine￿ rnodel including effeLts arising from macro£conomic 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 0￿rationS over the going can￿r￿ period. Based on the work we have perfomled, we have not identified any material uncertainties relating to events or conditions that, Ind1vidually or collettively, may cast significant doubt on the Ljniversity's ability to continue as a going concern for a period of at least Iwelve month5 from when the financial siatements are authorised for issue. In auditing the financial statements, we have concluded that the Council's use of the going concem basis of accounting in the preparation of the financial statements is appropriate. The reswnsibilities of the Council with respert to going COn￿M are descriiEd in the'Responsibilities of the Council for the financial statements, seecion of this rep)rt. Other informatlon The Council are reS￿nSIble for the other information. The other information comprise5 the information included in the Reports and Financial Statements, other than the financia1 statement5 and our auditor's report the￿On. Our opinion on the financial statements does not cover the other informabon and, ex￿pt to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connectson wth OLJr aud￿ of the financial statements, our restK)n5ibility is to read the other infom)ation and, in doing so, consider whether the other information Is materially inconsistent with the financial siatements or our owledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material rnisstatements, we are required to determine whether there is a material misstatement in the fsnancial statements or a material misstatement of the other information. If, based on the Newman University Page 21 Reports and Financial Statements for the Year Ended 31 July 2022 work we have performed, we conclude that there is a rnaterial misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinion5 on other matter5 prescribed by the Companies Act 2006 In our opir)ion, ba￿d the work undertaken in the course of the audit.. the information gwen in the strategic ￿pOrt and the directors, rewrt, prepa￿d for the pur￿Se5 of company law, induded in the Report of the Council for the financial year for which the finanoal statements are prepared, is consistent with the financial ststements- and the strategic report and the dirertors, report included in the Report tjf the Council have been prepared in accordan￿ with applicable legal requirements. Matter on which we are required to report under the Companies Act 2006 In the light of the knowledge 3nd understanding of the university and its environment obtsined in the course of the audit, we have not identified material rnisstatements in the strategic rep)rt or the direttors, report included in the Report of the CourTrcil. Opinion on other matters prescribed by the Office for Students Cots? accounts dirertlon (issued October 2019) In our opbnion, in all m*erial respELts'. funds from whatever source administered by the unwersity for specific purpose5 have been proper￿ applied to those purpose5 and managed in accordance with the relevant legislation,. funds provided by the Ofs have been applied in accordan￿ with the relevant terms and conditions,. and the requirements of the Ofs's accounts direction (issued (ktober 20191 have l￿en met. Matters on whlch we are required to report by exception We have nothing to retort in respect of the following rnatters where the Companies Act 2006 requires us to report to you rf, in our Opin￿n.. adequate accounting records have not teen kept, or returns adequate for our audft have not LEen re￿iVed from branches not visited by us,. or the financial statements are not in agreement with the accountbng records and returns,. or certain disclosures of the Council's remuneration specifled by law are not made,. or we have not re￿iVed all the information and explanab'ons we require for our audit. We have nothing to report in respect of the following rn3tters where the Ofs accounts direttion (iSSLJed October 2019) requires us to report to you where.. the universty's grant and fee income, as d15closed in the note to the accounts, has been material mlsststed,. or the university's expenditure on access and participation activities for the financial year, as disclosed in the note to the accounts, has teen materially misstated. Responsibilities of Council for the financial ststements As explained tnore fvlly in the Responsibilities of Council Members, the Council {who are also the directo￿ of the charitable company for the purpose5 of company lawl are resFonsible for the preparation of the financi31 statements and for being satr'sfied that they give a true and fair view, and for such internal control as the Council determine is necessary to enable the preparation of financlal statements that are free fiDm material misstatement, whether due to fraud or error. In preparing the financlal ststements, the Council are responsible for assessing the univer5itV5 ability to continue s a going COn￿rn, disclosingi as applicable, matters related to going con￿rn and using the going concern basis of acctsunts'ng unless the Council either intend to liquidate the Ljniversity or to cease operations, or have no realistic alternats've but to do so. Newman University Page 22 Reports and Financial Statements for the Year Ended 31 July 2022 Auditor's responsibilities for the audit of the financial ststements Our Objectiv￿ 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 condurted in accordance with ISAS (UK) will always detert a material misstatement when it exists. Misstatements can arise from fraud or error and are conside￿d material if, individually or in the aggregate, they could reasonably be exr£cted to influence the economic decisions of usets taken on the basis of these financial statement5. A further description of our responsibilities for the audit of the financial staternents is located on the Financial Rewrtillg Q>uncil's website at: www.frc.o onsibilities. This description forms part of our auditorfs report. Explanatlon as to what extent the audit was cansidered 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, oudined abjve, tt> detett material misstatements in respect of irregularitie5, including fraud. Owing to the inherent limitation5 of an audit, there is an unavoidable risk that material misstatements in the financial statements May not be detetted, even though the audit Is property planned and performed in accordance with the ISAS IUKI. The extent to which OLJr procedures are capable of detecbng irregularities, including fraud, is detailed iEIow: We obtsined an understanding of the legal and ￿gUlatOry frameworf(s that are appllcable to the University and the sector In which it operates. We determined that the following laws and regulations were most Significant.. The Financial Reporting Standard applicable in the UK and the Republic of Ireland IFRS 102), FEHE SORP 2019, the Companies Act 2006, Further and Higher Education Aci 1992, Higher Education and Research Att 2017, 0￿ Accounts Direction (Ottoter 2019), Relevant 0￿ regulatory notices and advice5, The Higher Education Code of GDvemance and The Dat3 protertion Act 2018- We understood how the University is complying with these legal and regulatory framewor￿ by making Inquiries of management and those charged wlth govemance. We enquired uf tlldfidg¥ineiit and tliose charged with governan￿ whether there were any instsnces of non-complian￿ with law5 and ￿gUla￿on5, or whether they had any knowledge of actual or suspected fraud. We corroborated the result5 of our enquiries through our review of relevant committee minutes and through our legal and professional expenses review. We aSSe￿ed the sUs￿ptibIlity of the University's financial staternents to materkil misstaternent, including how fraud might occur and the risk of materi31 overrKJe of controls. Audlt prO￿dureS performed by the engagement team ir)cluded.. Ide￿t￿fylng and assessing the design effecttveness of ￿rtain controls management has in place to prevent and detect foud allenging assumpb.ons and judgements made by management in its significant accounting wlicies Identifying and testing journal entries, with a fcKus on unus￿1 jouma15 with specific risk charaLteri5b"cs and large value journals. Review of business register of interest and the general ledger for any undisclosed related pa transactions Jnspecting the Council and other committee minutes Assessing the extent of Complian￿ with the relevant laws and regulations as part of oui procedures on the related financial statement item The* audit procedures were designed to provide reasonable assurance that the financial ststements were free from fraud or error. The rlsk of not detecting a material misstatement due to fraud 15 higher than the risk of not detecting one resLJlting from error and detetting irregularities that result from fraud is inherently more difficult than detecbng those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations. A150, the further removed non-compliance with laws and regulation5 is from events and transactions reflected in the finanaal statements, the less likely we would t)ecotne aware of ￿. Assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team s. understanding of, and practical experience with aud￿ engagements of a similar nature and COM￿exity through appropriate training and participation Newman University Page 23 Reports and Financial statements for the Year Ended 31 July 2022 knowledge of the higher education sector understanding of the legal and regulatory requirements specific to the University Including.. the provisions of the applicable legislation guidan￿ issued by the Ofs. The team cornrnunications in resFEtt of potential non-compliance with relevant laws and regulations, including the potential for fraud in revenue through manipulation of income and management override of controls,. and In assessing the potents.al risks of material misstaternent, we obtained an understanding of.. tlie Univer5ty's operations, Includlng the nature of its income and expenditure and its services and of its objectives and strategie5 to understand the classe5 of transactions, account balances, expEcted financial statement discl(Eure5 and business risks that tllay result in ris￿ of material misstaternent. the University's control environment, including.. the policies and procedures implemented by the Univers to ensure compliance with the requirements of the financial reporting frameworf( and relevant laws and regulations. the ￿lIcIeS and procedures implemented by the University to ensure Complian￿ wtth the requirements of the financial reporting fr3mework and relevant laws and regvlations the adequacy of procedures for authorisation of transactions and review of management accounts prctedures to ensure that ￿ssIble breaches of laws and regulations are appropriately re501ved. Use of our report This report is made solely to the unive￿ity'S members, as a bcKJy, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit worf( 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 rerort and for no other purpose. TCJ the fullo.st extent pemitted by law, we do not accept or assume responsibility to anyone other than the university and the unive￿ity'S mernbers a5 a body¢ for our audit wtsrk, for thi5 report, or for the opinions we have ftirmed. acquire fixed assets New Deptssts 2,325,248 6,816 (3,144,253) (1,000,000) 181,426 5,033 1437,599) 12,500,000) Net Cash flows from Jnvesting Acti¥itle$ 1812 189 2 751 140 Cash flows from Financing Activities Intere51 Paid Re￿Yrnents of AmoLJnts borrowed 1126,776} 1333,333} (131,952) (145,834) Net Cash flo￿ from Financing Actlvlties 460 109 277 786 {Decrease)lincrease in cash and cash equivalents in the year 392 686 Casli aiid Lds11 equivalents at the beglnnlng of the year 13 8.53?.201 8,298,174 Cash and cash equivalents at the end of the year 13 8,139,515 8,532,201 Newman University Page 32 Reports and Financial Statements for the Year Ended 31 July 2022 NOTES TO THE FINANCIAL STATEMENTS FUNDING BODY GRANTS Year ended 31 July 2022 Year ended 31 July 2021 Office for Students Recurrent Gtsnt Office for Students Capital Grant Office for Students Other Grant UK Research & Innovation Grant Health Education England Capitsl Grant DfE Other Grants 467,133 106,480 489,150 181,426 163,308 267,069 526,443 78,954 I,L82,210 1,125,753 Income from capital grants includes £154,954 in respeLt of capitsl grants released in the year (202012021: Nill. TUMON FEES AND EDUCATION CONTRACTS UK Full-time Students Non UK Full-time Students UK Part-time Students other Fees & Charges 19,394,141 19,441,494 9,400 1,437,467 1,380,106 20 783 TJ2 20 893 042 RESEARCH GRANTS & CONTRACTS Research Grants 116,192 2,620 OTHER OPERATING INCOME Residences and Catering Other Income 1,081,100 1200 669 2 281769 599,864 1497 816 2 097,680 srAFF cosrs The average number of persons {including senior post-holdersl employed during the year, expressed as full-tirne equivalents, was 294 (2021.. 2821. During the year compensab.on for loss of office of £124k was payable lon an accruals basis) to 7 employees following a Structur￿ Voluntary Severance Scheme undertaken by the University. These costs are included wtthin operating costs. Payroll costs during the year were as follows: r ended l Jul 2021 l Jul 2022 Wages and Salaries Teaching Staff Non-Teaching Stsff Social Security Costs Other Pension Costs 6,294,322 5,356,265 1,215,076 2 070 016 14 935 679 5,856,958 5,238,243 1,154,500 1974 756 14 224 457 Total Renumeration of the Vice-chancellor l August 2021- 31 July 2022 Retllunerètion.. Bonu5'. Pensi(>n contributions: Total Emoluments 175,595 3,000 173,000 220 176 213 966 Newman University Page 33 Reports and Financial Statements for the Year Ended 31 July 2022 The Vice-chancellor's remuneration comprises basic salary, employerfs pension contribution and a bonus. In the financial year ending 31 July 2022 no severance, market supplements, salary sacrifice or allowances (paid or deferred) We￿ made. The Vicelhancellor's basic salary remains in the bottotn quartile of the heads of institution within the higher education sector when measured against settor benchmarks, including that of the Cathedrals Group of which Newman is a member. In determining the remuneration of the Vice Chan￿110T, the Remuneration Committee also recognise5 the financial constraints and the challenging environment facing the Institution and sector. It was imtX)rtant that the University indicated to a11 Stakeholde￿ that it was mindful of the 51tuation and that ￿ will continue to exercise restraint in rernuneration. The Vitrchancellor's basic salary is 5.1 b'mes the median pay of stsff12021'. 5.1), where the rnedian pay is calculated on a full-time equivalent basis for the salaries paid by Newman University to its staff. The Vice- Chancellor's total remunerdtion salary 1$ 5.3 time= the median total rcmuncration of staff1202L.. 5.31, 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 authorty 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-Chan￿110r, Deputy Vicelhancellor, Pro Vice-chan￿110[, the University Registrar and the Chief Financial Officer. Year ended 31 Jul 2022 l Jul 2021 Salaries Bonus 544,330 488,784 547,330 100,550 488,784 92,471 Pension contributM)ns Empltsyers Nl Total emoluments 719 902 643 601 Remuneration of higher paid staff, excluding pension contributions (excluding the Vice-Chancellor} Basic Salary per Annum £100,000 - £104,999 £105,000 - £109,999 £110,000 - £114,999 £115,000 - EI 19,999 No of employees 2022 No of employees 2021 embe￿. Ex en No Council member h35 re￿iVed any remuneration I waived payments from the University during the year (2021.. NIL). The total expenses paid to or on behalf of Council Members was £1,94612021'. £671. Due to the pandemic, travel and subsistence expenses incurred in 2021 with respert to attendance at Council meeting£ 3nrt ?￿r￿.n49.S incurred with respect to the provision of relevant continuing professional development for Membe￿ were significantly lower as meeb.ngs and training have tRen carried out remotely. OTHER OPERATING EXPENSES ear en 31 Jul 2022 end Other Operating Expenses include- External A￿d￿orS, Remuneration: in respert of aud￿ servi￿5 in respect of non-audit servi Internal Audit 27,600 4,440 19,IL7 25,800 1,680 17,662 Newman University Page 34 Reports and Financial Statements for the Year Ended 31 July 2022 Access and Participation Year ended 31 Jul 202 Year ende ljul 20 Ac￿$ Investment Financial SuptK)rt Support for Disabled Students Research and Evaluation Total 428,000 127,000 181,000 318,000 181,000 238,000 756 000 757 000 A copy of the University Acce55 and Participation Plan is available on the website at.. www.newman.ac.u knowled e-ba ess-and- artici atio TANGIBLE FIXED ASSErs Land and Fixtures, Fitknngs & ment C05t or Valuation At l August 2021 Additions 48,199,186 2,530,369 1,880,231 613,884 50,079,417 3,144,253 At 31 July 2022 50 729 555 2 494 115 53 223 670 Depreciation At l August 2021 Charge for the year At 31 July 2022 13,995,945 1,229,868 15 225 813 1,334,634 208,774 1543 408 15,330,579 1,438,642 16 769 221 Written down value5: At 31 July 2022 35,503,742 950,707 36,454,449 At 31 July 2021 34,203,241 545,597 34,748,838 The transitional rules Set out in FRS 102 have tEen applied on implementing FRS 102. Accordinglyi the bwk values at Implementstion have been retained. Land and buildings were valued in L993 at depreoated replacement cost by a firm of independent chartered surveyors. At 31 July 2022, larid of £3,831,375 was held within land and buildings and is not depreciated. INTEREST Interest and other finan￿ costs relate to interest payable on the tem loan, non-utilisation fee5 and interest on the revolving credit faCil￿V. INVESTMENTS The Ljniversity holds IOOWQ of the share capital of Newman Firmtrust Limited at a cost of £212021.. £21. Newman Firmtrust Limited is a trading company that is incorporated and registered in England and Wales. The principal trading artivity of the company is the coristrucbon of a halls of residen￿ and a building extsnsion on behalf of Newman University, although it has been dormant throughout the current and prior year. Newman University Page 35 Reports and Financial Statements for the Year Ended 31 July 2022 The following is a Summary of financial information in respert of the subsidiary at 31 July 2022.. r ended 31Jul 2 Year ended l Jul 2021 Investment in Subsidiary io. TRADE AND OTHER RECEIVABLES AMOUNTS FALUNG DUE WITHIN ONE YEAR: 31 l Jul 2021 Fees and servi Prepayments and accrued income 729,237 882 916 582,276 905 556 1612 153 1487 832 ii. CRED￿oRs Yearended AMOUNT UNG DUE WITHIN YEAR: Bank overdraft Term Loans Trade and other cred￿Or5 Payments received in advance Social security and other taxation payable Accruals and deferred income (see footnote 11 24,954 333,333 1,646,572 41,072 348,910 1487 468 3 882 309 420 333,333 1,981,037 104,401 308,517 752 221 3 479 929 Footnote I DEFERRED INCOME Included in Accwals ènd Deferred Incr>me a￿ the foilowing items of income which have been deferred and will be recognised over the experted useftjl life of the assets to which they relate.. Ots Caprfcal Grant HEE Capitsl Grant 76,000 78,954 154,954 AMOUNTS FALUNG DUE A￿ER M RE THAN ONE YEAR: DeferiEd Income (see foutnote 21 Revolving Green Fund Term Loan (see footnote 3) Term Loan (see footnote 3) 1,984,861 150,000 125,001 4 437 500 6 697 362 150,000 208,334 4 687 500 5 045 834 Fwtnote 2 DEFERRED INCOME Ofs Captsl Grant HEE Capital Grant L,748,000 236,861 1,984,86L Newman University Page 36 Reports and Financial Ststements for the Year Ended 31 July 2022 FLK)tnote TERM LOANS A term loan of £1,000,000 was drawn down in 2012, which is ￿paYable in regular instalments totalling £83,333 per annum. The rate of inte￿$t on the loan is variable and based on 1.75Wo over SONIA base rate. A temi loan of £5,000,000 was negotiated in February 2019, with a two-year capital re￿yMent holiday with first amortisation (>n 27th May 2021, repayable in regular instalments totalling £250,0(KJ per annurn. The rate of interest on the loan Is fixed rate until February 202617 years) at 1.2980Wo plus loan margin l.I01012.3980 totall, payable auarterly. A four-year revolving credit facility of £2,000,(H)O was negotiated in February 2019. The terms of drawdown are 0.75% over SONIA, with a non-utilization fee of 0.3%. INCLUDED WtfHIN THE ABOVE ARE AMOUWS FALLING DUE AS FOLLOWS..- Year end UI 2022 l Jul 2021 Between one and hvo years.. Term Loan Tem Loan 125,001 166,666 500 000 666,666 625 001 Between and fwe years: Tertn Loan Term Loan 41,668 750 000 791,668 750 000 mts￿ thèn five years.. Revolving Green Fund Term Loan 150,000 3 187 500 3 337 500 150,000 3 437 500 3 587 500 12. PROVISION FOR LIABILrriES AND CHARGES Enhanced Pension5 At l August 2021 Transfer frotllllto) Ststernent of Comprehensive Income 8,254 8,254 At 31 July 2022 13. CASH AND CASH EQUIVALENTS At l August 2021 Cash flows At 31 July 2022 Cash and cash equivalents Bank Overdraft 8,532,621 {420) {368,1521 124,534) 8,164,469 (24,954) Totsl 8 532 201 392 686 8 139 515 Newman University Page 37 Reports and Financial Statements for the Year Ended 31 July 2022 Year Ended l Jul 2022 14. RECONCILLIATION OF NET DEBT Net Debt as at l August 2021 Movement in Cash and Cash Equivalents Movement in Overdraft Repayment of L(￿n5 Net Debt as at 31 July 2022 3,153,034 1368,1521 124,534) 333,333 3,093,681 Change in Net Debt Year Ended Year Ended UI 2022 lilu1￿IQLl Analysis of Net Debt: Cash and Cash Equwalents 8,164,469 8,532,621 Bormwings: Amounts falling due within one year Unsecured Loans Bank Overdraft Balance a5 at 31 July 333,333 333,333 420 333 753 358 287 Borrowings: Amounts falling due after one year Unsecured Loans Revolviiig Greeii Fund Balance as at 31 July 4,562,501 150 000 4 712 501 4,895,834 150 000 5 045 834 Net Debt 3 093 681 3 153 034 15. REVALUATION RESERVE Year Ended Revaluations At l August and 31 July 10 768 969 10 768 969 Contributions to Depreciation At l August Released in year to general reserves At31 July 4,411,088 147 397 4,263,691 147 397 4 411088 4 558 485 Net Revaluation Amount At 31 July 6 210 484 6 357 881 16. INCOME AND EXPENDITURE RESERVE Year En Year Ended ljul 2021 Incorne and Expend￿￿re Reserve Balance at l August Surplus for the year Depreciation rele8*d in the year from revaluation reserve Balance as at 31 July 32,406,319 417,812 147 397 32 971528 30,220,143 2,038,779 147 397 32 406 319 Newman University Page 38 Reports and Financial 5tstements for the Year Ended 31 July 2022 17. COKnNGENT LIABILITY Exchequer Interests (representing the contributions made by Ofs towards the construction and refurbishment of University buildings) amounted to £3,030,068 as at 31 Juty 2022. Exchequer interests are amortised over 10-15 years and are repayable only in the event of insolvency or a significant reduttion in the level of publicly funded cbwty. In the event of a substantial change in the mission of the University to the effert that the University is no 5onger con￿rned with the provision of education as 8 Catholic institution, the University may be liable to pay an amount to the Catholic EdLJCation servi￿ of up to 25% of the value of the preThises. It IS not possible to quantify the amount of the contingent liability. 18. STUDENT NUMBERS The number of students attending COu￿e$ {excluding shc>rt courses) at the UnNer5ty were.. 2022 2021 Full-time Part-knme 2,190 571 2,223 620 19. PENSION SCHEMES The three FEll5ion schemes for the University's staff are the Teachers, Pension Scheme ITPSI, Aviva Pension scheme (APS) and National Employment Savings Trust INESTI. The assets of the schemes are held in *parate administered funds. Total pension cost for the year ear ljul 20 Teacher5, Pension Scheme.. employer contributions paid Aviva Pension Scheme: employer Contributions paid NEST.. employer contributions paid Total Pension Cost for Year 1,473,050 594,533 1,366,670 605,275 2,070,016 1,974,756 Made up of: Empltsyer costs Totsl Pension Cost for Year 2 070 016 2 070 OL6 1974 756 1974 756 (a) TPS Introdurtlon The Teache￿, Pens￿ kheme CfPS) is a statutOry* contributoryj dcfincd benefit Scheme, govemed by the Teachers, Pensions Regulations 2010, and, from l April 2014, by the Teachers, Pension ScheThe Regulations 2014. These regulations apply to teachers in schcKJls and other educational establishments, including academies, in England and Wales that are rnaintained by local authorities. In addition, teachers in many Independent and voluntary-aided schools and teachers and lecture￿ in some establishments of further and higher educatior) rllay eligible for membership. MemiErship is automatic for full-time teache￿ and lecturers and, from l January 2007, automatic too for teachers and lecturers in part-time employment following appointment or 3 change (>f contrart. Teachers and letiurers 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 SupeTrnnuab"on Act 1972 and are paid by public fund5 provided by Parfiament. The TPS is an unfunded scherne and members contribute on a 'pay as you go, basis- these contributions, along with those made by employe￿, are credthd to the Exchequer under arrangements governed by the above Art. The Teachers, Pensions Regulations 2010 require an annuèl account, the Teachers, Pension Budgeting and Valuation Account, to be kept of receipts ar)d eXpend￿vre {including the cost of pension increases). From Newman Un5versity Page 39 Reports and Financial Ststements for the Year Ended 31 July 2022 l April 2001, the Account has been credited w￿h a real rate of retum, 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 Tea¢hers' Pension Scheme The latest actuarial review of the TPS was carried out a5 at 31 March 2016 and in accordance with The Public servi￿ Pensions (Valuations and Employer Cost Capl D1￿Chon5 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 consultstion are.. employer contribution rates were set at 23.68% of pensionable pay (including a 0.08Yo levy for adrninistration). total scheme liabil￿e$ for service to the effective date of £218.1 billion, 3nd nobonal assets of £196.1 billiuii, giving a notional past se￿Ice defic￿ of £22 billion,. an employer cost cap of 7.30A of pensionable pay will applied to futu￿ valuations The new employer contributitsn rate for the TPS was impletnented in September 2019. A full copy of the valuation repK)rt and supporting docurnentstion can be found on the Teachers, Pension Scheme website at the following location= ensions.co.u new 2019 teachers- ension uation-re rt.as Scheme changes Following the Huiton rep)rt in March 2011 and the subsequent consultations with trade unic>n5 8nd other representative bodie5 on reform of the TPS, the Department published a Pmptssed Final Agreement, setting out the design for a ￿fOrmed TPS which was implemented from l April 2015. The key provision5 of the reformed scheme include.. a pension ￿Sed on career average earnings,. an accrual rate of 1157th,. and a Normal Pension Age equal to State Pension Age, but options to ellable members to retire earlier or later than their Nomal Pension Age. lrnportanuyi rension benefits built up before l April 2015 will be fully protected. In addition, the Prow)sed Final Agreement Includ￿ a ￿vemMent commitrnent that those within 10 years of Normal Pension Age on l 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 rtts're. There will also be further t￿n5￿10￿al protertion, tapered over three-and-a-half-year period, for people who would fall up to th￿e and a half years outside of the 10-year protecknon. Regulations giving effectto a reformed Teachers, Pension Scheme came into force on l Atxil 2014 and the reformed scheme cOMrnen￿d on l April 2015. FRS 102 (28) Under the definib'ons set out in FRS 102 {28.111, the TPS is a multiemployer pension plan. The University is una￿e to identify its share of the undertying assets and liabilities of the plan. Accordingly, the University has taken advantage of the exemptic>n in FRS 102 and ha5 accounted for its contributions to the scheme as if it were a defined-contribution plan. The University ha5 set out above the information available on the plan and the irnplications for the Universty in terms of the anticipated contribution rates. Ibl Awva Pension Scheme {APS) The APS is operated by the Universty and is a defined contribution scheme designed to provide reb'rement benefits for any c>f its pertnanent employees who eleci to join the scheme. The 35sets of the scherne are independent of the University's finances. The pension costs charged to the Income and Expend￿Ure account {Note 5) include contributions ￿Yable by the University to the scheme. (cl 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 aLJto enrolment pension rules. Newman University Page 40