Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 Reports and Financial Statements for the Year Ended 31 July 2023 BIRMINGHAM NEWMAN UNIVERSITY Reports and Financial Statements For the Year Ended 31 July 2023 Registered Chaiity Number: Registered Company Number: 1110346 05493384 Birmingham Nean Universty
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 Rewrts arKJ Finanoal Statements ft)r the Year ErKJ&J 31 July 2023 CONTENTS Contents...................................................................................................................... Birmingham Newman Unlversity................................................................................... Report of the Council (incorporating the Strategic Report) ........................................... Corpornte Governance................................................................................................ 16 statement of Responsibilities of Council Members....................................................... 19 Independent Auditorfs Reportto Council..................................................................... 21 Statement of Prinupal Accounting Policies .................................................................. statementof ComprehensiveIncome........................................................................... 29 ststement of Changes In Reser¥es............................................................................... 30 statementof Financial Position.................................................................................... 31 Statement of Cash How5............................................................................................. 32 Notes to the Finanoal Statements ............................................................................... 33 Bimiingham Newman Untversty Page 2
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 Rewrts and Finan(ial Statements for the Year End 31 July 2023 BIRMINGHAM NEWMAN UNIVERSITY CONsrrruTION The condurt of the Universivs affairs during the year is governed by an Instrument and Artides of Government, approved by the Privy Council in 2013 and revised in 2019. The UnÈver5ity is a UK charitable company limited by guarantee (Charity No. 1110346). Council Members and their interests The Council Members serving during the year to 31 Juty 2023 and up to the date of approval of these financial statements were- Chair of the COU11 Profe Margaret House Catholic Memlxrs Davrd Brook5 (until l March 2023) Bishop David Evans Deirdre Finucane { Vtrchair of Nomination5 and Goveman Committee) Angel Garoa Vekzquez Karan Gilmore Professor Margaret House (Chair of Counol VI-chair0f Finan and General Puryw5 Commtiee) Phillip Lennon (Chair ofAudItaThlRk Committee) IrKleKEndent Council Members- Gayle Ditchburn (VKe-Chair of Counol (Jk7ir of Nomination5 and Govemantr Commiltee) Stephen Kenny (Chair OfFinan and General Pury70ses Committee Chair of Remunerdtsons Committee) Professor Femi OyeLK#Je Ri(thard walla (until 28 April 2023) Professor Tony Hanis non-catholic Members Council Members- Ex-offiao Professor Jacquelyn Dunne (WKp<hancellor) Archbishop Bernard Longley Stsff Council Members Leoama Mathh35 Mehreen Mirza (until 13 April 2023) joanne Hill (from 4 October 2023) Student Council Memlxr ZI Hanin The Council Members received no remuneration during year in their capacity as member5 of Council. All Council Members are required to dedare their interests at Counal and Committee meetiNJs and are not able to vote on matters in which they have a direct interest. No memters have declar&J interests during Council or Committ meetirwJs in the teri covered by this reFJt. The Council Members of the Universty have agreed to contribute £1 each to the assets ofthe University in the event of it being wound up. Bimiingham Newman University Page 3
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 Rewrts and nanCIal Statements for the Year Ended 31 Juty 2023 PRINCIPAL ADDRESS Birmingham Newman Universty Genner5 Lane Bartley Green Birmingham B323 VICE-CHANCELLOR Professor J Dunne BANKERS National Westminster Bank PIC Commercial Banknng 4th Floor, 2 St Philip's Pla Birmingham B3 2RB soucrroRS Mills & Reeve 78-84 Colmore Row Birmingham B3 2AB Shakespeare manea No I ColnTh)re Square Birmingham B4 6AA AUDrroRS (Internal) RSM UK Risk Assuran SeNice5 LLP IO" Fl(xY 103 Colm0 Row Birmingham B3 3AG (Extemal) Grant Thornton UK LLP IP Flwr 103 Colmore Row Bimiingham B3 3AG Blrmlngham Newman Universty Page 4
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 Retxirts and financial Statements for the Year Ended 31 Juty 2023 REPORT OF THE COUNCIL (INCORPORATING THE STRATEGIC REPORT) The Council is pleased to present tts re( and the accounts of the UnNersty for the year ended 31 July 2023. PRINCIPAL ACTIvrrY The principal activty of the Univer5ty in the year under rewew, in line with the Universi5 objects, was the provision of highuality foundation, undergraduate and postgraduate degree level courses. These programmes were offered through the two FaCUleS of the Univer5ty. In planning activities, the Council Members have given careful consKleration to the Charity Commission's general guidan on public benefiL OPERATING AND FINANaAL REVIEW Introduttion The Universty is narrd after the 19th ntury cardinal St John Henry Newman who wrote The idea of a universiv in 1852, and we are still guided by the vision of a communty of scholars. The UnNersity is built around community and the belief that education enables students to develop new ways of understanding the world, to help make a p)sf(Ne impart within it. This is delivered through smaller cla55 sizes and an interartive learning style. The Catholic ethos has In retained and our students are from all faiths arKi none. The Unwersty is proud of its diverse, friendly and inclustve environmenL where students are welcomed and receive transf0mtional leaming OPFX)rtuntb"es together wtth support in preparing for employment. The modem single campus, eight miles g)uthwest of Bimiingham rity ntre has outstsnding facilities for teaching, learning and social spa5 for students. The curriculum continue5 to expand with the first cohorts of students entering the new Schwl of Nursing and Allied Health. The curriculum indudes courses in Adult Nursing, Mentsl Health NursiThJ and Physiotherapy which <DMMen in September 2023, and Paramedic Science and Occupational Health commencing in September 2024. The University will be prowding qualif[ prnCtltners from dwerse backgrounds, for the Ictal West Midlands Health sector, and beyond. For many of OLFr students, being the first in their family to enter hKJher edation, could be a daunting prospect and, as an institution, we supwjrt new leamers to achteve their goals. Newman is noted as being second in The Sunday Times Good UnNersty Guide Social Indusion tsble for England and Wales. Newman also has the secoThJ-highest proporb.on of students who are the first in their family to go to university and experien higher edu(3b"on (The Sunday Times Gcod University Guide and the Daity Mail University Guide). This t#Jth reflects our location and our proactive outreach work and widening participation wo1* that the University actively develops, to communicate the opportunities open to young wple to enter higher education. The University is'teaching-led, and dre5 TK)t employ stsff for research alone but ensures that students have regular contact with acbve researcher5. With our disttnctive commitinent to transformational impact, we maintain our mission to make a tX)sitive difference to individuals and communities. In the latest Research EXllenCe Framework (REF 2021) Newman doubled the number of academic teams submitting work, and also doubted research of world-leading status. Research is undertaken across a wide range of academic and profe55ional disciplines and attracts extemal funding. The University changed its name tr) Bimiingham Newman University during the year and this new name is a reflecbon of our close connecknon tr) our (ity and regn, and the role we play in its social and economic developmen¢ together wtth the transf0mtional educational opportunities we provide. To be called Bimiingham Newman Universty aligns us with all that Bimingham siands for. A vibTrnt and diverse city with onoMiC growth, ambition, and opportunity. Bimingham Newman Universty Page 5
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 Reports arKI Financial Statements for the Year Ended 31 July 2023 Continuing to bulld on our teaching foundations As a Studentntre Universty, Newman's thalleivJing yet SUp)rtive leaming environment enables students to engage wf(h theories and (X)nPts, discuss ideas and be(Dme independent learners and creative thinkers able to make a differen in the wodd. The unique style of teaching and MIng at Newman and how students feel part of a community at Newman is reflected in the 2023 National Student Survey (NSS) results. Bimiingham Newman achieved numtEr l in the UK for full time student satisfaction. Students are also encouraged to undertake research in collatoration 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 academK stsff at Newman are research active enabling them to debate and discuss current t0c5 within their field of expertise with their students, giving them a greater understsnding of their subject area. Each year a Learning and Teaching Conferen is delNered and is growing year on year in the number of students and stsff that participate. The Conferen builds on projects tetween academics, students, and professional support staff. The InatiVe provides a Chan to think ideas through and lebrate the evolving iearning community. The project scheme allows students to propose projerts and bid for funding on an annual basis. They PLrt together teams of students, academics and professional sUPPOrt staff to tske foryvard rewrch or interventions that will enhan the student experien at Newman, srRATEGIC REPORT Reaching Out Into the Crty of Birmingharn, supporting local communities and pupils from widening participation backgrounds Birmingham Newman Unfversty has due regard to the Charity CommissKJn's guidance on public benefit and is committed to widening partiapation and social mobilty. a result, Bimiingham Newman Universty has developed an outstanding reputation of achievement in this area. For example, the University exceeds nationalty derived benchmarks for the recruitment of students from stste schools and lower Sc10-econ0miC groups and low participation neightxsurhcJds. Newman supwrts The Sanctuary Scholarship (fomierfy the Article 26 scholarship) whKh supports students who have fled persecution and sought asylum in t UK. There are six Sanctuary scholarships and four of these have been reseNed for Ukrainians in a Schen intrcJuced this year The Universty continues to develop its links with the city of BiThiroham was a founding member of Citizens UK Birmingham, an allian of civil scoety groups within the city, and continues to actively support and engage with the objectwe of the group. The vision is to build a diverse and independent Ilian of CMI scKiety institutions that will act tfyjether for the common goxl of Birmingham. Working with l(Kal communities, the Universty works colkitorativety with the Bimiingham Civic Society in developing school projects and is a supporter of the Birmingham Literature Festival. The development of outreach activitie5 through the Uni Connect Programme has enabled the University to support potential students from disthantaged backgrounds from across the cty. The University remains committed to reaching out into and twond the city to ensure prospective students understand the benefits of higher education, arKI the benefits of being a student at Birmingham Newman Universty. Bimingham Newman UnNersty Page 6
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 Reports arKi financial Ststements for the Year Ellded 31 July 2023 Key financial performance indi¢ators The University's main key financial perf0mlan indicators are summariwl below. Academic perfomiance is more difficult to summarise in a simple indicator and thef0 this is more fully reviewed in a later section of the operating and finanaal review. The Universty has broadly achieved its key perfomance indicators, the dats for which is within lJ)e audlted financial statements. Key finan¢ial perfomiance indicator 2022123 Taryet 2022123 Achievement 2021122 Achievement Student Numbers (home, full time) 2082 2269 2190 Surplus as % tumover 0.80/0 1.7% Pay costs / income 65% (max) 61.3% 61.30/0 Debt servlcing costs 496 (max) 1.8% 1.90/0 Minimum cash levels £2.5m £11.5m £11.5m Academic performance Birmingham Newman Universty has trai and educat& over I4,10 primary and secondary school teachers since 1968 for Bim)iroham, the West Midlands ar fttrther afield. In addition, the University offers continuing professional development (CPD) pr(yJrammes for serving teachers and the school workforce, such as the MA Education and a range of postgraduate rICateS, in addition to PhD study. Newman also offers national professional recognilion via the Teaching and Leaming Academy (TLA) CPD framework for the Midlands, South West and South Wales. The Teaching and Learning Academy may also facilitate accredited CPD at levels 4-7. The Unlversity has continued to te successftjl In relation to academic quality. At the last OFsfED inspech.on for Newman'5 Facufy of Education, all Initial Teacher Education provision was rated as Grade 2 - Good (December 2015). Under the revised 0tIng mc#Yel of qualty assuran, 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). Working in partnership and collaborntively The University continues to develop and maintsin partnerships with a nUMr of academic partners - these indude collatx)ratNe provision wtth Solihull College, South and Cty College, Bimiingham, Markfield Institute of Higher Education. Queen's Eojmenical Foundation, Christ the Redeemer College, and Formission College. Newman is now working in partnership with two 5chool<entred initial teacher training {scrrr) consortia as their PGCE provkler, 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 wodd of work is changing rapidly, especially around the skill sets that employers want and value, so the University is developing more support and increasing our offer lo students in order to meet their needs. as well as those of the employers and the wider labour market. In developing inib"atNes for the students, the Universty fully supp)rts the Office for Students. ambition'to make sure we deliver on the promise of HE as an engine for social mobilty, and a gateway to a better lrfe for those WFKJ undertake rf. The University has developed a new Empfoyabilty Strategy and has develo a set of actions to address that strategy in line with our core values and commitments. To SUPFQrt implementstion, we have built an Employability Hub to supwrt both students and l(Trl enterprises as well as create a welcomir¥J space for employers within the wKier West Midlands region. Birmingham Newman Unwersty Page 7
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 Rep)rts and nanCIal Statements for the Year End 31 Ju]y 2023 Newman continues to provide a breadth of eX[rien to students enabling them to reach their full potential. Being able to enrich student knrning through empk>yer engagement is just one of the many ways in which students are SUPTK)rted. The SU55 of Newman's graduates is due to the commitment of the Universty not only to give Stlents gcKKI academic qualifications but also to encourage a flexibility to change, developing enquiring minds capable of innovating and adapting to the challenges of the future. This is demonstrated by the initiative5 of the Unwersitls careers and employability teams to integrate preparation for career5 into general teaching, putting students in an advantageous position when it comes to securing employment. Students are also encouraged to take on additional roles during their time at Newman - for instan, Iorning a course representative, working as a student ambassador, working with the Students. Union, all of which help to devek)p valuable planning, communications and team-wotknng sknlls valued by empbyers. The Careers Service continues to provide a WKle range of education. informabon, advice and guKlance lo help students- and graduates of up lo three years- enhance their employability and develop effective career management skills to make infomied decisions. The careers tearn have implemented My Career, an online system which gives all students and recent graduates access to book on&tO-one personalised guidance sessions, workshops (such as the use of Linkedlnl and events such a5 the careers summer schools, fairs, and a¢sS to opporbjnities from employers and organi5ations. In tsndem, the UniversitVs Enterprise Unfc encourages studert interest In estrblishing their own businesses. The Unit ran a series of events throughout the year, invibng business hleas, promoting entry into enterprise competiknons and bring social enterprises and entrepreneurs onto campus to share their experiences and ideas. The focus this year has teen on paClar support for the development of social and co-operatwe enterprises which is in line with our sxial Justi mission. In addition, our Higher Level Skills Match {HLSM) proiect works to identify a range of high-ststus beneficial plaMents, particulady with small and medium-sized enterprises across the West Midlands, for our final-year and graduate students. Ns the reputation of our EnterpriselHLSM work has grown, colleagues have been invtted to work as con5Uttants with a range of SMES and larger corwrations within the Bimingham and Solihull LEP. During the year we have continued to develop our offer for current and rerent 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 evolwng Ictal, national and global latxfyur market, within equal thanging economic, Sla1 and ojltural environments. Supporting our students Newman has a wide range of students frcfft many faiths backgrounds and over a thlrd of students utilise the SeN1 provided by the Stlent Supp)rt Setvice. Students requiring a lrtde extra supwrt in navigating a new challenge, confronting a problem or learning new skills can receive help. The weatth of support available to students incluts the Academic SuptKJrt Advi, Learning Development SuptX)rt, support with dyslexia, physical or sensory disabilities, lorNJ temi health issues, mentsl health or autism, Counselling support and weWare advice are also available. In recent years, a number of new systems have been Introduc to supF(•rt students to access these resour more effectively. A new signFKJSting guide, a new intranet-based safeguarding reporting system and the introductM)n of a new intranet- based triage system are helping students with well1ng conrn$ to ab to r4uest an appointment quickly with a prackntioner. Work on the campus has continued to develop to SUPFQrt our large numbers of commuter students. Improvements to the catering outlets, induding offering students facilities to heat up their own focKJ and the prowsion of Chil and hot water, enabks students to bring their own focKi onto the campus and have comfortable s(Kial seating space5 ID which to eat, as well as rebranding the Sanctuary Café to a more student friendly environmenl. Changes to the s(Kial spaces for stLKients has enabled group working, as well as 9xialislng ikneen taught a(ivrbes. Birniingham Newman Universty is a sKJnatory mefflr of the Care Leaver Covenant, an iniknative estsblished to improve supwrt to young peop aged 16-25 leaving care. The initiative aims to harness the expertise and reSoUrS of businesses, educatN)n providers and charities to ensure those leaving care have the necessary support and opFortUnit5 to succeed and thrive. The University has also signed the Stand Alone Pledge, meaning we are publidy committing to supp)rting students who are studylng without the suptKJrt or approval of a famity nthork. Bimiingham Newman University Page 8
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 Rewrt5 and Financial Ststements for the Year Ended 31 July 2023 In supporting stents with their knrning and developmenL ensuring that students a attending lectures is known to help their understsnding of the subje¢ ability to participate and development of an enquiring mind. A new initiative to monitor students. attendar has been developed and implemented. The system allows students to log their attendan in class and provide5 the University with the corresponding student engagement data. A correlation has teen found between attendan and student perf0mlan and the system help5 Staff to offer SUPF(Srt at an earfy stage to students with a poor attendance record. For over 10 years, Bimiingham Newman Universty has been helping new students to adapt to the world of Higher Education through a progrdmme called HEADS. This prcNJramme has developed and extended to provide a HEADOnline, digital version of HEADstsrt with accessibk materials and twilight learning opportunities. Developing the academic portfollo to meet the needs of our prospertlve students After a review of the academic FX)rtfolio, a number of new course5 were introduced looking at the needs of our students, employment opportunibes, as well as the 'fiV with our existing suttes of courses and teaching. As a result of the rev, Mme courses were consolidated, for example, undergraduate degrees in Sport. New courses were intrcxluced in toth faculties; these include LLB Law, Bsc in Computer Saence, Policing, and &xial Work. A further strategic review of the tY)rtfolio in 2021 has resulted in the approval for the development of degrees in Nursing and Allied Health Professions, with recruitment to Commen from September 2023. Psychology and Counselllng at Newman continue to offer a WKle range of undergraduate and Postgraduate programmes, a number of which are ful accredited by the relevant professional LKKiies: British Association for Counselling and Psychotherapy (BACP), Bribsh PsythologTrl Sc(iety (BPS), and the UK Council for Counselling arxj Psychotherapy (UKCP). Research The gaining of research degree awarding tKMers {RDAP) is rniSed as being of strdtegic importance to the institution's development. Bimiingham Newman University has made the commitsnent tr) be in the position to appfy for research degree awarding powers during the riod of the current Strategic Framework. All Istgraduate research students enrolled for dc(tor31 degrees with Newman during the year are also registered with verpcN?1 Hope University and will receive their award from them. It is Intended that the partnership with LiverkK>oI Hope Universty continue5 Until Birmingham Newman University gains tts own research degree awarding pOwS. The University prepared for a ValidatK)n of Research Degrees Panel meeting with colleagues from LiverpcK)l Hope who have oversight for t*graduate research. The Intered outcome is that Newman will operate its own Research Degree Regulations and asgxiated Code of practi frC 2023 in anticipation of a future RDAP applthb"on. Newman welcomed the publication of the REF 2021 results in March 2022. In comparison with REF2014, Newman more than doubled the 5tsff submttted from 22 FfE (25 staff) to 56.9 FfE (59 stafn. In terms of the results, Newman also MO than doubled the amount of research rated through the exercise a5 World-leading, the highest category. Consequentty, Newman moved up seven places in the Research rankings published by Research Professional, journal for rCherS arKI research funding in Higher Education. Sustainability Bim)ingham Newman University has an EnVIronEral Committee which has resnsIbIlity for promoting and achieving ever improving environmentsl standards. The UniversiVs Environment31 Policy is reviewed anrkually and within this p)licy a numiEr of tsrgets are set including, gas, electricity and carbon emissions, and these are monitored on a weekty basis. The Carb)n Management Plan has been utKiated to reflert the cr)mmitment that BimiiThJham Newman Untversty will a negatNe carix)n university campus by the year 2035. In March 2019, Bimiingham Newman Universty achieved the ISO 14001 Environmental award and ISO 50001 Energy award. An external audttof the ISO awards was undertaken and full accreditation wa5 ochieved in May 2023. Birningham Newman Universty Page 9
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 Rewrts and Financial Ststements for the Year Ended 31 ju 2023 Newman continues to invest significandy in improving enmronmental rforrnan. Projerts for this financial year includes a 30kw soiar PV system installed over the summer of 2023, darIK)nlSation projects include the sports ntre and phase 2 of the Allied Health and Nursing pioject, where heating is provided by electrical heatillg rather than traditsonal gas. Overall energy consumption arKI co2 emIlon5 decreased acrDSS lthe physical estste compar&1 to last year. This change is in relation to ga5 usage while degassing areas of the University and having a very mild winter. The tsble below indicates the Unfversivs (3rtM)n emissions and savings acrc6s a range of areas: 2021-22 AND 2022-23 EN7ISSIONS I•£OZ•l kupL l Gd5 527.G 51¥.1 29. 2¥.3 GrEorthouse Gas Em15yon5 IlCO...I scope 2 ElcclrKity kope I Vehi£5 283.1 277.3 15.58 Toial Emtssions 8119 7944 NalLral Gas ComUmpift 2.880y4 2021.(4)5 Ikivhl aiwdl Gas Cosi If) EloctrKrty C0ft5tsmptn Campus Boughi Out Err6v £ 118.029 176.176 L224330 lJ13.741 Ik¥Vhl ElvctrKrty Cosi £ 219273 3g7.142 EkesL)11%4ik51 Exhdust 4 J27 9.833 VthIC F1 cYrt15yon5 li£o:.I Methodol Gas and Electricty emissions are (Jlculated usiThJ the emissions factors provided in the UK Govemment GHG Conversion Fartors for Company Reporbng for the relevant year. vehic emissions are calculated taking the dIStsn driven and the emissions perft)rrnan ststed by the DVLA for each of the vehicles in temis of g/km. This is then multiplied by the mileage (km) travelled as recorded in the vehide's Ic¥J bcx)k taken from the (xlorneter or on the MOT fiCate. Bimiingham Newman University Page 10
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 Reports and nanCIal Ststements for the Year Ended 31 Juty 2023 Financial review of the year The Universitls In(nme. ExndItUre and Results for the year to 31 Juty 2023 are summarised as follows: 20 2021 22 Income Expenditure 25,204,463 25,011,023 24,370,759 23,952,947 Surplus on continuing operdtions 193,440 417,812 Transfer from Revaluation Reserve in resptt of depreciat#)n of revalued assets 147,397 147,397 Comprehensive Income for the year 340,837 565,209 The Universtvs totsl income in 2022123 of £25.2 millton has increased by 3.40h on the previous year. The University had budgeted for a breakeverb posibon in 2022123, and this was in recognition of a number of factr)rs including to support investsnent into the new SChIs of Nursing and Allied Health. A modest surplus has teen achieved because of increases In irthme and management of costs. The out-turn for the year refiects the Counal's commitment to the generation of operating surpluses and investrnent in academic prcgrammes and the physical campus. The financial strategy supkx)rts tx)th investment in the campus and the On9)] sustsinabilty of oFrations. Plans for future periods The mission of the University has always bn to provide high*uality accessible academic and professional education based on the values of respect for others, scKial Justi and equality. Blmiingham Newman University seeks to make a p)sitive differen to individua15 and communities through the contribution of stsff, students and graduates. Council is charged with the resFonsibilty of setting the strategic dIrtIOn of the University. Q)uncil approved a Strategic Framework in February 2020 covering the Feriod 2020-2025. The Strategic Framework provides a dear vision for the future and reasserts the Catholic ethos, mission and values of Bimingham Newman Urstversty. The key strands of the StTrtegic Framework are: to transfomi students, lives,. to work in partnership wth students; to grow our institution; to nurture our staff; to add to knowledge and CuNate wisdom,. arKI to serve our diverse community and the wider world. Newman, in line with its motto'ex UfTbbris in veritstem. ¢out of the shadows into truth?, is committed to continued enhanment of its aPprh to fomiation for students aThJ staff. As expected, the commitment to teacher education. for Ix)th Catholic and nonQtholic schools, remains at the heart of the mission and future planning of the UnNersty. Newman is one of the largest ccredited providers of Scho)l Direct tsBining in the West Midlands, working with Teaching School Alliances and indivKiual sChIS at tth ]Mary and secondary levels. Bimiingham Newman Universlty remains deepty committed to the goals of Wklening actrss to, and participation in, higher education, offering flexible prc4Jrdmmes of dtfferent kinds. The University believes it is well placed to make a significant contribution to the govemmenvs targets for widening participation and social mobility and consistenty outperforms tts location-adjusted benchmarks in this area. Council is confident of the security of the Universitys p)sition. Wlth a healthy out-turn on the year, reasonable cash reserves arKI a limtted burden of debt, Newman is well pla to exploit the oprKJrtunities offered in the contemtx)rary context of higher education in the UK and will continue to supwrt and extend tts founding visron for Catholic higher education. Council Members thank the staff for their commitment to this shared endeavour and for their many SucseS in the year. Birmingham Newman University Page 11
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 ReFQrts and Financial Ststements for the Year Ended 31 ju 2023 Principal risks and UnrtaintieS In a period of static levels of fundingi meeting recJuitment aspirations is imtA)rlant to provide funding to invest in the student experien and supp)rt the sustainability of the Universlty. Potential changes to government policy in relation to access to higher education arKI funding levels coukl adversely impatt our ability to recruit some groups of students andlor adequatety resource some programmes. The Univers6ty'5 op*rations exEK)se tt to a variety of finanaal risks including the effts of changes in credit risk and liquidity risk. The Unwersws prinopal financial instruments (Dmprise sterling cash deFX)Stts and loan faolrties together wtth deEk5 and creditor5 that arise direCY from its operations. The main risks arising from the Univers5 financial inStments can te anatysed as follows: Credit risk The University's principal financial assets are bank balan, cash and debtors, whKh represent the University's maximum exp)sure to credit risk in relation to financial assets. The UnNerstVs credtt risk is prirnarity attributsble to tt5 debtors. Credtt rt5k 15 Manag by monitoring the aggregate amount and duration of exw)sure to any one debtr)r dertdlng upon their credit risk. The Universty's 0ratiOnS a such tha¢ with the exptIOn of the Student Loans Company, significant amounts are very Trrely owed by a single debtor. The amounts presented in the balan sheet are net of allowan for doubtful debts, esbmated by the UnNerstVs management based on prior experien and their assessment of the current econom enwronmenL The credtt risk on liquid funds is limited because the counter-parties are banks with high credit rdtings assigned by internatM)nal credit-rab.ng agencies. The Unwersty has no significant ¢Onntra.0n of credit risk, with exposure spread over a number of counter parties and customers. Llquidlty risk The Universws policy ha5 bn to ensure continuty of furKJing through acquiring the Universtty's fixed assets using the generation of cash from its operating activities. The University has loan facilities in place, which tt intends to utilise in the ftrture a5 Part of the University asset strategy and to ensure the University maintsins lequate levels of liquid $0S in future years. Interest rate risk Intere5t-bearing assets CDmpTise of cash arKI bank deFrfJSits, all of which eam interest at fixed and floating rates. The University currently has £6.24m of debt which is serviced wlth a mix of fixed and floating rates. The University monitors the overall level of borrowings, interest Costs and hedging strategy to limit any adverse effects. stakeholder Engagement The Council consider5 that they have act in the way they o)nsider would be most likely to promote the Suc$ of the UnNersity (having regard to the siakeholders arKi matter5 Set out in s172 of the Companies Act 2006) in the decisK)ns tsken during the year ended 31 july 2023. The success of the University is lIant on the supwrt of all of our stakeholders. It is important that we build wsitive relationships with stakeholders that Sha our values. and working together towards shared goals assists us in delwering long-term sustainable success. The Council considers the Fthntial conwuenw of ILS d&isK)ns on key stakehoklers in the long term, taking into account a WKle range of factors. The Council fully appreciates that the University can only grow sustainably through havirrfJ regard to the views and needs of these stakeholder5, being its students, staff, suppliers, partners and the wider communty. Decisions made by the Council are infomied by the Univer5tys mission, vision and values as descri in the 2020-2025 Strategic Framework. The Council approved and supports the 2020-2025 Strategic Framework. The six strategic objectives of the framework share the decisions and actions of the Council and underline the aim of the Universty to achieve positNe outccffies for all of its stakeholders. Newman's Council has a clear framework for detennining the matters within its remit and has approved teThns of then for the matters delegated to its Committees and Academic Board. The Council Bimiingham Newman UnNersty Pdge 12
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 Rewrts and Finanoal Statements for the Year Ended 31 July 2023 agenda includes rewrts and presentstions wlth regular updates on ottrational perforrnan and on people matters. The Executive team attends Counal 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 staff and student members 51t on the Council in order to ensure regular engagement with these two key gmups. Equality of opportunity in employment The University has adopted a Single Equality kheme, which was developed in recOgnon of the Interrelated nature of equalities legislation and in resSe to the Equality Act 2010 and the Public Sector Equality Duty, which require institutions to work to promote equality and eliminate discrimination in all its activities,. this is reviewed by the Equality & Diversity Committee and reFX)rted on as appropriate. It is the poly of the University that all staff are required to undertake relevant equalty and diversity training. Employee involvement The 202(F25 Strategic Framewo gNes a commitment to stsff formation by erthuragirKJ stsff to develop and flourish in alignment with the str3tegic objectTve5 of the Universty. Enhanrnent of stsff fom)ation goes hand-in-hand with enhanment of sthdent fomiation. Therefore, the University pla considerable value on the involvement of its employees and on goKxI communication with them. The Human Resour5 tkpartment and AcademK Practi Unit are K)nsible for estsblishing training pr(yJrammes at all levels of the institution. Staff are encouraged to be involved in the Universivs committee5, With a view to assuring full participation by staff members in all ve15 of organisatK)nal decision-making. The University has a Joint Negotiating and Consuttatwe Committee as the means for fomal consultstion and negotiation of terms of employment. This Committee is based on the principles of partnership working and represents all staff. Trade Union Regulations 2017.. Facility Time dats for the peri(xl April 2022 to March 2023 is as follows'.- 13 staff acted as Trades Union Represenlab"ves wtth 12 Snding lkneen 1%-50 % of their working hours on facility time and I sperKling OWO of their working hours on faolity time. 0.00140/0 of the total pay bill was spent on faolty time. and 0% of paid faality time was SFent on trade union activities. students students are the key to everythlng we do. Our current Strategic Plan for the teriod 2020-2025 fKuses several of its goals on students and the Serve/suprt that they need. We have provtded 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 UnNersty tr) obtsin the t*St tems for all of its business activities and Councll recognises that relationships with suppliers are imwrtant to the group's long-term Suc$ and as such we work to build strong relationships to devekTrP mutualW teneficial and lasting partnerships. It is the University's w)licy to obtsin the test tem15 for all busine55; thus, there is no single poliq as to the terms used and supplier payment ternis. In agreements negotiated with suppliers, the University endeavours to include and abide by specific payment temis. Maintaining high stsndard of business condurt It is important for the University to compty with relevant laws and regulation5, including the specific expectations of the offi for Students, the regulator for providers of higher education in England, as well as statutory matters including health and fety. Council is utmlated regularly on legal and regulatory developments and takes these into account when consKkring futu plans. The Universty conducts its business in accordan with the seven prinaples identified by the Committ on Standards in Public Life (selflessness. integrty, objectwty, accountability, openness, honesty and adership) and ensures all members of the exVe arid Council meet the definition of the offi for Students of a 'fit and properf person. Further detsils oll this and the other ways in which the University ensures it maintsins a high starKlard of business corKlurt can found within the Corporate Governan section of our Operating and Financial Review. Birmingham Newman University Page 13
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 ReFots and Finanaal Ststements for the Year Endaj 31 Juty 2023 The Context For Higher Education Birmingham Newman University makes a regular a55e55mert of the risk factors in the external environment which may impart on the University,. at the prent bme these are significant. The current financial climate continues to tx)se a material risk to even the most effecb.vely run institutions. Newman has taken a prudent approach to the management of its finan and the Council and Executive are in dose contsct to ensure that the Unrverstvs finan are appropriatety monthred and managed. As a student-centred University with strong Catholic values, Newman is committed to providing a values-driven, fomiative university education, available to Feople from all backgrounds. A fvndamentsl part of Bimiingham Newman Universitls mission is to SUPPOrt S(KwI mobility through education. Newman has developed a range of student support packages designed to provide assistan to a range of sludents, as well as a contextualised admissions prC. Tht5 matche5 Newman's commitment to continue to be a centre of exllenCe for widening parknopation and s(rial mobility. In addith)n, the Universty will work to attract Students fr(Mn minorty grou not currenuy engaged in higher education. The demand for prryJrammes remains healthy reflecting Newman's belief that its wrtfolio, which combine5 academic rigour with professional orientatK)n, will attractive in the current dimate. Qualifying Third Party Indemnity Provisions Directors, indemnty insuran, indemnifyiThJ each director against liability to third partte5, has been in pla throughout the year ended 31 July 2023 and up to the date of approval of thi5 retx)rt. Auditors Grant Thornton UK LLP offer themselves for reap1ntrnent as alItorS in accordan wfch Section 485 of the Companies Att 2006. The Re[t of the Council (incorp)rating the StrategK Rep)rt) was approved on Eehalf of the Council Gayle Dltrhbum (Wice-chair of the Coundl) Professor Jackie Dunne (Wi¢e-ChancellorlCouncll Member) Date of Approval: 22 November 2023 Bimiingham Newman UnNersity Page 14
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 RertS and Finanaal Statements for the Year Ended 31 July 2023 CORPORATE GOVERNANCE This statement of Corporate Governan relates to the n(KI (Dvered by the financial statements and the tEriod up to their date of approval. Bimiingham Newman Universty is an independent Roman Catholic institution which was granted taught degree awarding powers by the Privy Council in 2CM)7 and fvll universty status in 2013. The Univer5ty complies with the Higher EducatM)n Code of GOVerran that was re-issued by the Committee of Unrversty Chairs in SepteM1r 2020. The Council, as constituted by the University's Articles of A55ociation, comprises fourteen external indeFendent Council Members. The Archbishop of Birmingham and the VIce-Chaell0r are ex officio memters and there are Member5 who are staff of the University and one student MeM1r elected by the student body. The roles of Chair and Vice- Chair of the Council a separated from the role of the Unwersity's Chief Executive, the Vice-chancellor. The matters espeoalty reserved to the Council for decision are set out in the Articles of Association. The Council, which hokjs to tself the reswnsibilities for the ongoing strategic direction of the University, the approval of major devek)pments and the receipt of regular rewrts from the Untversty Leadership Team on the day-to-day operations of ts business, meets at least four times a year. The Council has four main Comrnrttees- a Finan arml GeneTrl PurSe5 Commtiee, an Audit and Rlsk Committee, a Nominations arKI Governan Commtttee and a Remunerations Commtitee. The Committees meet at least three b.mes a year, and their decisions are formally reported to the Counal. The Committees are formally con5trtuted through the Standing Orders of the Council with terms of reference and comprise mainty of external meMrS ofthe Council, one of wIn is the Chair. University Council Nembers attend meetings regulaty and this has ensured quoracy. The Flnance and General Pu)Se5 Committee recommends to the Counal the Universivs annual budgets and monitors perfornance in relation to budgets approved. The Remunerdtions Committee, chaired by the Chair of the Finan and Genernl Purposes Committee, determines the remuneration of those memters of the Universty Leadership Team who are appointed by the Council. The ViCe-Chan110r is not a rnemr of the Remunerations Commrttee. The Audit and Fknsk Committee meets with the extemal and intemal auditots to discuss aJIt fIlIng5 and to (Dnsider detailed internal aL1t reFX)rts and recommendations for the improvement of the University's systems of internal control, toxJether wtth rnanagement's responses and implementstion plans. It also receNes and considers rewrts as they afft the Universitys business and monitors adherence to the regulatory requirements, including ongoing Ofs conditions of registration. It reviews the University's annual financial statements, tINJether with the accounting WTrlicies. The vi{hancellOr is not a member of the Committee,. the Committee meets wtth the intemal and external auditors on thelr own for independent discussions annually. The role of the Nominati)ns and Governan Committee is to review the tenure of current members and seek out nominees for new membership of the Counol and ts committees, taknng into account the balan of skills, eXrien and diversity of the Counal. It also undertakes and operates the governance effectiveness assessment; considers and advises Council on Safeguarding matters,. and oversees the apw)inknent of the Chan110r, e-Charelk)r and other senlor w)sts. As the University's governing LX, Council has the ultimate responsibility for the governance of the University and its ci)mpliance with the ongoing conditions of registration with the offi for Students. The Universitvs Articles of A$SclatIon sttpulate the establishment of a Senate that shall have such power5 and dub.es as delegated to it by Counal. Counol has delegated the restK)nsibility for the maintenance of academic qualty and standards of the Universivs awards to Senate. These temis of reference prescribe the delegation of responsibility for such academic governan to Senate. Senate draws its meM1rShip entirety from the stsff and the students of the Unwersty. Followlng review, the terms of referentr of Senate were UFthted and approved by the Council in 2021. The fomial relationship tEtween the Senate and the Counal is managed through reF¥)rts presented to the Council at every meeting by the Vicchan110r as Chair of Senate, featuring matters relating to reviews of the quality pro5$ and plans for academic development. The Universlty has established additional opportunities for Senate and Council to gain a deeper understanding of each otherfs roles. A Senate- Council connection rn&ting takes pla annually. This meeb'ng has a joint agenda with presentstions that enable discussion and promote OPkKSrtunities for a deeper under5tsnding of the respective Birmingham Newman uniVety Page 15
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 ReFx)rts and Financsal Ststements for the Year Ended 31 Juiy 2023 responsibilities of each t(xJy. The Counctl is thus able to monFtor the extent to which the Senate Is conducting the academic affairs of the University in line with the direction of the Strategic Framework. There has also been an infomial arrangement for Council memters to gain an insight into the Senate meetings by having the on4Joing opportunity to sit in on Senate meetings. The Vicelhancellor is the Chief Executive Offir of the Universty and has a general restK)nsibilty to the Council for the organisation, direction and management of the insbtubon. Under the tem)s of the formal Funding Agreent with the Department for Education and the Conditions of Registration between the University and the offi for Students, the Chf Executive is the Aciounting Offfir for the University. The University maintains a Register of Intere515 of memlRr5 of the Council and senior officers of the University, which may be consulted by prior arrangement with the Clerk to the Counal. In accordan with the Articles of Association, the Universfty Secretsry and Registrar has LEen appointed as Clerk to the Counol; their job descript]on contains se[rate resMS1bII[kn.es ft)r each of these posts. The Clerk to the Council provides indqkndent adviiE on matter5 of governan to all Council Members. srATEMEMf ON liERNAL CONTROL This ststement on internal corttrols relate5 to the covered by the finarKial ststements and the period up to their date of approval. The Unwer5ity is committed to exhibiting best practi in all aspects of corporate governance. The University's Council is restK)nsible for the University's system of internal control relating to the Unlversivs arrangements for the prevention and detecknon of corruption, fraud, bribery and other irregularities, arKi for view1ng their effectiveness, covering business, operational and Complian risk as well as financial Such a system is de5tgned to manage rather than eliminats the risk of failure to achieve business obi&b"ves arKI can only provide reasonable and not absolute assuran against material misstatement or k)ss. The Counal is of the view that there is an ongoing process for idenbfying, evaluating arKI managing the University's significant risks. It has bn in pla for the year ended 31 July 2023 ar up to the date of approval of the annual report and accounts. and is regulaty reviewed by the Council and its Audit and Risk Committee tr) ensure that tt aco)rds wlth practi intemal control guidan for director5 as deemed appropriate for hher &lucatK)n. The Finance & General Purp)ses Committ, as di5CUSsed above, recommends to the Council the Universivs annijal revenue and (apital b1gets and monttors perfomiance in relation to the approved budgets. The Remunerations Cfynmiittt detemiine5 the remunerdtion of the most senior siaff, including the vice-Char110r. The Nominations and Governan Committee has been estsblished following gc(Kl practice outlined in the CUC Higher Education CcKie of vernan a1 its role is to seek out and consider appliG3tions for the membership of the Council and its committees. The University develottd a 2020-25 Strategic Framewo that arose from widtrranging consultstion with stakeholders. The University telieves that the finalised Strategic Framework (approved by the Council in February 2020) represents the objects, vision, mission and values that then frame its six strategic objectives. The key ambition that stands out deady is to work together in partnership to transform students, lives. The University is impknienting the Framework through its sub-strategies and asscKiated action plans. Key Perfomiance IndKators {KPIs) have teen estsblished and achievement is monitored by Counal and they translate through to the University's Risk Management approach. Following a review, an uplat&l Risk Management Policy was approved in February 2021. This fomis part of the institution's intemal control and corFK)rate g0Veman arrangements and identifies the underlying approach to risk management across the University. It defines the roles and reswnsibilities of Council and senior managers in the management of rÉsks. It also oudines key aspects of the risk management prcKess and identifies the main reFQrting prc£edures. It pla emphasis on the active management of risk rather than a monitoring of risk. Audit & Risk Commtttee members focus on the effecknve management aThJ/or identification of risks including in the context of KPIS. A substantive review of the Risks tskes pla twice each year which is part of a semi-annual, multiple touchpoint rycle whereby the UniversitWs Lership and Operations teams revie the operational and strategic risk registers. Bimiingham Newman UnNersty Page 16
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 Rew)rts and Finaal Ststemerts for the Year End&J 31 July 2023 This approach has satisfied the Council that management, troether wtth the internal and external audit services, have an appropriate prC for identifying, evaluating and managing risK together with approprTrate stsff training. During the year, the Unwersity has: considered risk at meetings of the Unwersty Leadership Team and the University Operations Team; implemented arKI eMded the new Risk Management Policy that was revised the year before;
reported to the Audit arKI Risk Committee at e&h meeting, and annually at Counal, on risk issues. used the rlsk register to detemiine the direcknon of the intemal audit plan; experienced no significant internal control weaknesses or failures during the period (x)vered by the financial ststements and the [1 up to the date of approval. The key elements of the UniverstW5 System of intemal finanaal control, which is designed to dixharge the responsibilitEs set out at¥)ve, indude the following- clear definitions of the responsibile5 of, and the authonty delegated to, heads of aGidemic subject areas and administrative departments; a comprehenstve medium- and short-temi planniro prcw, supplemented by detslled annual irmme, exttnditure, (3pitsI and cash fb)w budgets; regular reviews of key perforn irKlicators and business risks (induding opeTrtional, complian and financial risk) and quarter reviews of financkal results involving Varian reporting and uplates of forecast out-turns; clearty defined and fomialised reqU1ments for approval and control of expenditure, with investment decisions involving capital or revenue expellditure being subject to formal detsiled appraisal and review according to approval levels set by the Council; comprehen5we financial regulations, detailing financial controls and prOreS, approved by t Audit and Risk Commttt* and Counal; and a professional Internal Audit SerVe whose annual prDgramme 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 activity wjthin the Universty and an opinion on the adequacy ar efferttveness of the University's system of intemal control, induding internal finanoal control, which operates to 5tsndards compliant Wtth the off for stJents Regulatory Framework. Gayle Ditrhburn {Wice-Chair of the Council) Professor Jackie Dunne (WKtrChancellorlCouncil Member) Date of Approval: 22 November 2023 Bimiingham Newman University Page 17
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 Rewjrts and Finanaal Ststements for the Year End&1 31 July 2023 srATEMENT OF RESPONSIBILMES OF COUNCIL MEMBERS In accordan with the Universivs Memorandum and Artrs of Association, the Council is responsible for the administration and management of the affairs of the University and is required to present audited financial ststements for eath financial year. The Council (the Members of which are a150 the dirthr5 of the Universty for the purpow of company law) is responsible for preparing the Strategic RetK)rt and Directors, RetK)rt and the financial statements in accordance with applicable law arKI regulatK)ns. Company law requires the Council to prepare finanaal ststements for each financial year. urer that law, the Council is required to prepare the financial ststements in accordance with United Kingdom Generally Accepted Accounting Practi {United Kingdom Accounting Stsndards and applicable law) Including FRS 102 'The Financial RetK)rbng Stsndard applicable in the UK and Republic of Ireland,. In addition, the Council i5 required to prepare the fina31 statements in accordan with the offi for Students Cofs? Accounts Direth"on (issued Ortober 2019). the 0 Tenns arKI conditions of funding for higher education institutions (issued May 2020) through its accountsble Offr. 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 and1055es, changes in reseryes and G3sh flow5 of the University for that year. In preparing the finala1 statements, the Counal is r4uired to: selert suftsble acc(MJnting wlKies arKt then apply them consistenuy; make judgements and accounting estimate5 that are rea9)nabk and prudent; state whether applicable UK accounting slandards have b&n followed, subject to any material departures disclosed and explained in the finan(ial 5taternents: a1 prepare the financial ststements on the going cofKem basis unless tt is inappropriate to presume that the University will continue in business. The Council is resFonsible for keepiThJ adequate accounting records that are sufficient to show a1 explain the Universitys transactions and disclose with reasonable accuracy at any time the financial position of the University and enable it to ensure that the finanaal ststements comply with the O Terms and conditions of funding for higher elucation institutions (issued May 2020), the Ststement of Recommend Practi - Accounting for Further and Higher Education 2019 (issued October 2018 and any subsequent amefidments). the Ofs Accounts Direcbon (issued October 2019) and the Companies Act 2006. It Is also restK)n5ible for Safeguarding the assets of the University and hence for tsking reasonable steps for the prevention and detect of fraud and other irregularitie5. The members of Counal have taken reasonable steps to: ensure that funds from the Ofs are used only proper purposes for which they have been given and seek to achieve value for money in accordan with the Ofs Temis and conditions of funding for higher education instttutions (issued May 2020) and any other corKlitions which the funding tx)dy may frorn time to time prescribe; ensure that the Universty has a robust arKI comprehensive system of risk management, corftrol and corporate governance, whih indudes the prevention arKI detedion of corruption, fraud, brilEry and irregularities; ensure that there is regular, relhible, timety and adequate inf0mtiOn to monitor perfomian and track the use of public fijnds; plan and manage the Unfversivs activities to remaln sustainable and finanoally vlable; ensure that it infOn5 the 0 of any material change in its circumstan, induding any significant developments that coukl IMpt on the mutual interests of the University the Ofs; Bimiingham Newman Universty Page 18
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 Rewrts and Financial Statements for the Year Ended 31 July 2023 ensure that there are adequate and effectNe arrangements for the management and qualty a55urance of data submitted to HES& the StLKlent Loans Company, the Ofs and other funding or regulatory l)(xlies; ensure an effective framework- overseen by the UnNersity's senate, academic board or equivalent- to manage the quality of learning and teaching and to maintain academic standards. and consider and act on the 0 assessment of the UniversiW5 risks specifically in relation to these fvnding purposes. The Council is re5pon5ible for the rna1ntenan and integrity of the corp)rate and financial information included on the Universtivs website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from lsiatiOn in other jurisdictions. The Council confirm that.. so far as each Memter is aware, there is rK) levant audit infom)ation of which the University's auditor is unaware; aThJ the MemiErs have taken all the steps that they ought to have tsken as Members in order to make themselves aware of any relevant audit inf0mtIOn and to establish that the University's auditor is aware of that infomiation. Approved on behalf of the Council by." Gayle Dltchburn (Wice-chalr of the Counal) Professor Jackie Dunne [e-ChancellOr1Councll Member) Date of Approval: 22 November 2023 Blmilngham Newman UnNersity Page 19
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 Repots and FInarlar Statements for the Year Ended 31 luty 2023 Independent auditor's report to the Council of Birmingham Newman University Opinion We have audited the financial staternents of Birmingham Newman University (the 'UniversiV) for the year ended 31 July 2023, which comprise Statefflent of Comprehensive Income, Statement of Changes Reserves, Statemert of Finanaal Posrtion, Ststement of Cash Flows and r¥)tes to the financial statements, including a summary of 5ign"fficant accounting tx)licies. The financial rewrting framework that has been applied in their preparation is applicable law and Unit&1 Kingdom Accounting Standards, including Financial RetK)rting Stsndard 102 Tr Financial Rew)rting Stsndard applicable in the UK and Republic of Ireland, (United Kingdom Generally A(Trpted Accounting Ptactice). In our opinion, the financial statements: gNe a true and fair view of the stste of the University's affairs as at 31 Juty 2023 and of its surplus, income and ewkndtture, gains and charwJes in reserves and cash flows for the year then ended; have been prOrIY prepared in aCrOrthn wtth United lfjngdryn Generally Ap1 Accounting Practice,. and have been prepared in aCcOrdae with the r4uirements of the Companies Act 20C6. Basis for opinion We conducted our audr( in a(LOrdan with Intemational Standards on Audibng (UK) (ISAS (UK)) and applicable law. Our restx)nsibiltb"es under those standards are further described in the 'Auditorfs responsibilities for the audit of the financial statements, section of our reFK)rt. We are independent of the UnÉversity in accordance with the ethical rquirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordan with these requirements. We believe that the audit eviden we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern We are responsible for concluding on the appropriatene55 of the Counal's use of the going (x)ncern basis of accounting and, based on the audit eviden obtsined, whether a material unrtainty exists related to events or condibons that may cast significant doubt on the UnwersitWs abilty to continue as a going concern. If we conclude that a material unortainty exists. we are required to draw attention in our report to the related disdosures in the finanaal statements or, tf such disclosures are inadequate, to m(Klify the auditor's opinion. Our conclusions are ba1 on the audit eviden obtsined up to the date of our report. However, futu events or conditlons may cause the University to se to continue as a going conrn. In our evaluation of the Counal's conclusions, we considered the inherent risks assctiated with the Universivs business model induding efferts arrsing from macr(Feconomic nrtaIntIeS such as the cost of living crisis, we assessed and challenged the reasonableness of estimates made by the Council and the related disclosures and analysed how those riskfj might affett the Universws firsancial resources or ability to continue operations over the going concern Ftricd. In audf(ing the financial statements, we have conduded that the Counal's use of the going conr basis of accounting in the preparation of the finaal statements is appropriate. Based on the work we have perfomied, we have Identif any material uncertainties relating to events or conditions that, individually or collectNety, may cast svJnificant doubt on the Universtvs ability to continue as a Ing conrn for a ttricd of at least twefve months from when the finanaal statements are authorised for issue. Our reswnsibilities and the resFonsibilities of the Council with rw to going conrn a described in the relevant sections of this reFQrt. Other information The other infomiation comprises the InfOnatiOn induded in the Reports and Finanoal Statements, other than the financial ststements ar our auditorfs repNt thereon. The Counal is reswnsible for the Birmingham Newman Unwersty Page 20
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 Repjrts arKI Financial Statements for the Year Ended 31 July 2023 other inforniation contsined within the ReFK)rts and Finanoal Statements. Our opinion on the financial statements does not cover the other infOnation and, except to the extent otherwise explicitly ststed in our report, we do not express any fom) of assurnnce cOrlUSion therex)n. Our responsibility is to read the other infomwtion and, in doing so, c(sider whether the other information is materially inconsistent wtth the financial ststements or our knowledge obtsined in the audit or otherwise appears to be materialty missiated. If we identify such material inconsistencies or apparent material misstatements. we are required to determine whether there is a material misstatement in the financial statements theMSes. If, based on the work we have perfomied, we onclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to rert in this regard. Opinions on other matters prescribed by the Companies Art 2006 In our opinion, bawj on the work undertaken in the course of the audit: the infomiation given in the strategic rep)rt and the directors report, prepared for the purposes of company law, included in the Rewrt of the Counal for the financial year for which the financial ststements are prepar, is (x)nsistent with the finanaal Slatents. and the strategic rewrt and the directors, reFK)rt included in the Rewrt of the Coundl have been prepared in accordan with applicable gaI requirements. Matter on which we are required to report under the Companies Art 2006 In the light of the knowledge and understsnding of the Unwersity and its environment obtained in the course of the audit, we have not identified material msstatements in the strabjic report or the directors, report included in the ReFQrt of the Council. Oplnlon on other matters prescril)ed by the Office for Students Cofs? Accounts direction (issued October 2019) (the 'OfS Accounts direction,) In our opinion, in all material resFectS: funds from whatever source administered by the Universty for sttafic purposes have b*n pro applied to those purFI5 and managed in accordance with the relevant legislation; funds provided by the Ofs, UK Research and Innovation (induding Research England), the Education & Skills Funding Agency and the Department for Education have ten applied in accordance with relevant terms and condfcions; and the requirements of the ors Accounts dirtR)n have been met. Matter5 on which we are required to report by exception We have nothing to report in respect of the following matters in relation to which the Companles Act 2006 requires us to retK)rt to you if, in our opinion-. adequate accounting records have not been kept, or tum5 adequate for our audit have not been received from branches not visf(ed by us; or the financial statements are not in agreent with the accounting records and rebjms; or certain disclosu of the Counal's remuneration stEcified by law are not made; or we have not received all the infomiation and explanations we require for our audit. We have nothing to report in re5t of the following matters where the Ofs Accounts dirertlon requires us to repori to you where: the Universlvs grant and fee incorne, as disckfjed in the note to the accounts, has been materialty misstated; or the University's expendtture on access and participation &tivities for the financial year has been materially misstated. Birmingham Newman UnNersity Page 21
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 ReFQrts arKI Finanaal Ststements for the Year Ended 31 Juty 2023 Responsibilities of the Coundl As explained more fulty in the Ststement of restx)nsibilities of Counal Members, the Council {who a also the direttors of the charitable comp3ny for the pur[ of company law) are responsible for the preparation of the finanoal statements and for teing Satisf that they give a true and fair view, and for such internal control as the Council detemiine is necessary to enable the preparation of financial Statements that are free from materk41 misstatement, whether due to fraLwJ or error. In pparing the finanaal statements, the Qjunol are resFonsible for assessing the University's ability to continue as a going concem, disdosing, as applicable. matters related to going concern and using the going conrn basis of accounting untess the Council either intends to liquidate the University or to cease 0ratIonS, or has no realistic alternative but to do so. Audltorfs sponsibl11tieS for the audit of the finandal statements Our objectives are to obtain reasonable assuran att whether the finanaal statements as a whole are free from material misstatement, whether due to frnud or error, and to issue an auditor's re)rt that indudes Oltr opinion. Reasonable assuran is a high level of aUTrr, but is not a guarantee that an audit conducted in accordan wtth ISAS (UK) will always detect a material misstatement when exists. Misststements can arise fr fraud or error arKI a (Dnsidered material if, indNidually or in the aggregate, they could reasonably be exIed to Influen the &onomK decisions of users tsken on the basis of these finanaal strtents. Irregularities, including fra1, are instsnces of non-(1)mplwn with laws and regulath)ns. The extent to Y4hich our prOlUreS are capable of deterting irregularities, induding fraud, is detailed below: We obtained an understsnding of the legal and regulatory frameworks that are applicable to the Universty and the sector in which r( operates. We detem1inj that the following law5 and regulab.ons were most significant: The Finanaal Rewrting Standard applicable in the UK and the Republic of Ireland (FRS 102), FEHE SORP 2019, the Companies Att 2006, Further and Higher Education Act 1992, HKJher EdLatn and Research Art 2017, Ofs Accounts Direction (October 2019), Relevant Ofs regulatory noti advi, The Higher Education Cle of Governance and The Dats protection Act 2018; We understood how the Universty is complying with the* legal arKI regulatory framewo5 by making inquiries of management and those charg&1 with governall. We enquired of rnan8gement and those charged with govemance whether the We any Instan of non- Complian with laws and regulations, or whether they had any knowledge of actual or suspected fraud. We corroborated the results of our enquiries through our rev of relevant committee minutes and through our legal and professional expenses review; We assessed the susceptibilty of the Universivs financial statements b) material misstatemenL including how fraud might (r and the risk of material override of cont15. Audit prCedureS perfomied by the engagement team included: Identifying and assessing the design effectiveness of rtain controls management has in pla to prevent and detect fraud Challenging assumptions and judgawits made by management in its svJnificant accounting pOIleS Identifying arKi testing journal entries, wtth a ftKus on unusual journaL8 wtth spectfic risk characteristi(5 and large value iournats. Review of business register of interest the general ledger for any undisdosed related paty transactions Inspecting the Council and other committee minutes Assessing the extent of compliaKe with the revant laws and reguk4tion5 as part of our procedure5 on the related financial ststement item These audit predureS were designed to provKle reasonable aUran that the financial statements were free from fraud or error. The risk of not det&ting a material misstatement due to Bimiingham Newman UnNersty Page 22
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 Reports and Financial Ststements for the Year Ended 31 July 2023 fraud is higher than the risk of rt detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate cOnalment, forgery or intentional misrepresentstions. Also, the further removed non-complian with laws and regula5 is from events and transactions reflected in the financial statements, the less likely we would tecome aware of it; Assessment of the appropriateness of the CDll&t"ve Competen and capabilrties of the engagement tearn Includ con5iderabon of the engagement team's. understanding of, and practical eXper1er with audit engagements of a similar nature and complexity through appropriate training and partripation knowledge of the higher education sOr undersLinding of the legal and regulatory repuirements specific to the University including: the provisions of the applicable legslation guidance issued by the Ofs. The team communications in of FK)tential non-complian with relevant laws and regulations, including the potential for fraud in revenue through ManiputK)n of income and management override of controls; arKi In assessing the potential risks of material misststement, we obtsined an understanding of: the Universivs 0[rationS, including the nature of ils income and expendiiure and rts services and of its obiectives and strategies to understand the classes of transactions, account balances, expected finanaal ststement disdosures and business risks that may result in risks of material misstatement. the Universitys controi environmen( irKludirvJ: the Foliaes and prc(edures implemented by the University to ensure Complian with the wuirements of the financial reporting framework and relevant laws and regulations. the policies and prc(edures implemented by the Universty to ensure compliance with the requirements of the finanaal rertIng framework and relevant laws and regulations the adequary of pr(xedures for authorisation of transactions and wiew of management accounts procedure5 to ensure that [SSible bcheS of laws and regulations are appropriately resolved. A further description of our resronsibilities for the audr( of the financial statements is located on the Financial Reporting Council's webstte at.. www.frc.or auditorsres nsibilities. This description fomis part of our auditorfs retK)rt. Use of our report This reFX)rt is made Sole to the UniversWs Council, as a ix)dy. in accordan with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might State to the University's members those rnatter5 we are required to state to thern in an audttor's report and for no other purpose. To the fullest extent pemiitted by raw. we do not 3pt or a55ume responsibility to anyone other than the UnNersty arKI the University's members as a EKyty, for our audit work, for thls report, or for the oplnions we have formed. JIM McLarnon Senior Ststutory Auditor for and on behalf of Grant Thomton UK LLP ststutory Auditor, charte Accountsnts Bimiingham Date: 27/11/2023 Bimingham Newman University Page 23
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 RertS aThJ Financial Statements for the Year End1 31 Juty 2023 srATEMENT OF PRINCIPAL AccourirING POLICIES STATEMENT OF ACCOUNTING POUCIES The following accountiro p)licies have been applied consistenuy in dealing with items which are considered material in relation to the financial ststemellts. BASIS OF PREPARATION These financial statements have been prepared in aXOrdan wlth the Statement of Recommended Practi.. Accounting for Further arKI Higher Education 2019 (the 2019 FE HE SORP) and in accordan with Financkil Retortirrfj StsrKJard 102 (FRS 102). The University is a public benefrt entty and has therefore apled the relevant public rit r4uirements of FRS 102. The preparation of finanaal statements in Complian wtth FRS 102 requires the use of certain critical accounting estimates. It also requires management to exerase Judgement in applying the Universivs accounting p)licies. BASIS OF ACCOUPMNG The finanoal statements are prepared under the historical cost convention as m(xlified by the use of previous valuations as deemed cost at transrtion for rtain non-current assets. GOING CONCERN The artivities of the University, together with the factors likely to affect its future development and perf0mlan, are set out in the 0rating and Financial Review. The finanoal position of the Untversity and fs cash flow are desuibed in the Financial Statements and accompanying notes. The University's forecast and financial projection5 indicate that it will be able to 0rate within this existing loan facilty and covenants for the foeeable future. Surpluses will be maintsined and cash generated. Accordingly, the Counal has a reasonab expectalion that the Universty has adequate resour to continue in operational existerKe for the foreseeable future, including for at least 12 months from the date of approval of the financial statements. and for this reason will continue to adopt the going concern basis in the preparation of tts financial ststements. BASIS OF CONSOUDATION The financial statements do not include the subsidiary for the financial year to 31 July 2023 as the subsidiary did not trade and its balarkce sheet is immaterial to the group. The financial statements do not include the income and expendrture of the Students, Union as the University does not exert control or dominant influence over policy decisions. RECOGNttlON OF INCOME Income from the provisK)n of Servi is credf(ed to the Ststement of Comprehensive Income when the SeN1 are supplied to the extemal cuslomers orthe temis of the contreKt have been satisfied. Fee income is stated gross of any expenditure which is not a discount and credited to the Ststement of Comprehensive Income over the Feri(Kl in which the students are studying. Bursaries and scholarships are Unted for gross as exEEtKliture and not deducted from income. Funds the University elVeS and disburses as paying agent on tEhalf of a funding tXKiy are excluded from the income and eXndItUre of the University where the University is extx)sed to minimal risk or enjoys minimal economic nefIt related to the transacknon. Government Grants, induding fvrKling council bk grant and research grants from wvernment Sour5, and other grants and donations from non%ovemment UrCeS, including re5earth grants Bimiingham Newman University Page 24
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 Reports and Finanaal Statements for the Year Ended 31 Juty 2023 from non-government sour, are recconised within the Ststernent of Comptehensive Income when the University is entitled to the income and Ferfomiance rela5 conditions have been met. Income received in advan of perf0mlan related conditions is deferred on the Ststement of Financial Posttion and released to the state1Tnt of Comprehensive Income in line with such conditions being met. Government capital grarts a rniSed in Irome over the eXted useful life of the asset. Other capital grants are cJnI5ed in income when the UnNer5ty is enliued to the funds subject to any perf0mlan related conditi'on being meL Investment income is credited to the Ststement of coMphen51ve Income on a receivable basis. EMPLOYMENT BENEFIrs Short-term employment benefits such as salaries and comtensated absen are recognised as an expense in the year in whh the employees render seNices to the Universty. Any unused benefits are accrued and measured as the addibonal amount the University eXPts to pay as a result of unused entitlement. LEASES Operating Leases Costs in respect of operating leases are charged on a straight-line basis over the lease term. Any lease premiums or incentives are spread over the minimum lease term. TANGIBLE FIXED ASSErs (a) Land and buildings Land and buildings at l August 1993 are at a valuation at that date. Additions sin that date are ststed at Cost. The basis of the valuation is depreciated replacement cost and the valuatton was Caled out by Bond Wolfe Commercial, valuers and surveyors. Buildings (excluding improvements) are depreciated over their expec useful life of 50 years. No depreciation is provided in re5pert of freehold land. On adoption of FRS 102. the UnNer5ty followed the transitional provision to retain the book value of land and buildings which were valLd as at#)ve at deemed cost. (b) Furniturei equipment and motor vehides Furnf(ure, equipment and motor vehicles costing less than £10,000 per individual item are wrttten off in the year of acquisition. All other fuMire, equipment and rrK)tor vehides are capitslised. Where equipment is acqui with the aid of specific gTrnts, it is cap[talis and depreciated as above. The related grant is treated as a grant received in advance and released to income over the extErted useful lrfe of the equipmenL (c) Assets under constructlon Assets under con5trucknon are accounted for at cos¢ based on the value of architecvs rtificates and other direct costs inoJrTed as at 31SI Juty. They are not depreciated until brought into use. (d} Depreciation Deprectation is provided, on a straight-line basis, at the following annual rate5 in order to write off each asset over tts estima1 useful Itfe, as shown New Buildings Internal Building Emprovements Fumiture and Equipment 50 Years 10 or 25 Years 5 to 10 Years (2Wo p-a.) (IO¥o or 4¥0 P-a.) (20Wo to IO¥o p.a.) Birmingham Newman Universty Page 25
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 RekKSrts and Financial Statements for the Year En(kd 31 Juty 2023 Telephone Equipment Motor Vehide5 Computer Equipment 5 Years 4 Years 3 Years {200/0 p.a.) {250/0 p.a.) (33113% p.a.) 10. OcKs Stocks, comprising stationery, deanirtsJ materials and consumables, a valued at the lower of cost and net realisable value. 11. PENSION cosrs Retirement benefts to emph)yees of the Universty are provided by the Teachers. Pension &heme rrps), Aviva Pension {APS) a1 Natnal EMpknynnt SavirwF Trust (NEST). (a) APS and NE APS and NEsf are defined contribution schemes. The assets of each scheme are held independenuy. Contributions are charged to the IrKome and Expenditure account as they become payable in accordan with the rules of the stheme. (b) TPS The TPS is a defined benefft plan, whih is externalty fvnded and contracted out of the State Second Pension. It is an unfu[KI scheme. Contributions to the Trs are calculated so as to spread the cost of pensions over employ, worknng lives wlth the University in such a way that the pension cost is a substantialty level perntsge of current and future pensionable payroll. The contributions are detemiined by qualtfied actuaries on the basis of valuations using a prospective benefit method. The TPS is a multi-employer scheme and there is insufficient information available to use defined benefit acojunting. The TPS is therefore treated as a defined contribution plan and the contributions recconised as an e4knse in the Income and Eynditure account in the perioxls during which setvices are rendered by eMpk)y. 12. MAZNTENANCE OF PREMISES The University has a fNe-year Maintenan ptan, which is reviewed on an annual basis. The cost of long-tenn and routine Maintenan is charged to the Income and Expenditure account as Incurred. 13. TAXATION ATUs The Universty is Consider io pass the tests set out in Paragraph I khedule 6 of the Finance Act 2010 and thefOre it m*ts the definibon of a charttable company for UK corporation tsx purposes. Accordingly. the Universty 15 tthlltialw exempt from tsxation in resFect of income or Glpital gains reiVed with categories covered by Chapter 3 Part 11 of the co1ratiOn Tax Act 2010 or Settion 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusivety to charitable purF(6e5. The Universty 6s partialty exempt in rw of Value Added Tax (VAT), so that it can recover only a minor element of VAT tharged on tts inputs. Irr0Verable VAT on inputs is included in the costs of such inputs and added to the (Dst of tsngible fixed assets as approprkite, where the inputs themselves are tsngible fixed assets by nature. 14. CASH FLOW sfATEMEKr Cash flows comprise increases or decreases in cash. Cash indudes cash in hand, deposits repayable on demand and overdrafts. Dewsils a repayable on demand if they are in practi available within 24 hour5 Wtthout penalty. No investments, however liquid, are included as cash. 15. PROVISIONS FOR LIABILMES Provisions (other than provisions for st-retirement Iknefits) are recognised when the Untversity has a present legal or construttive obligation as a result of past events, rf( is more likely than not Birmingham Newman UnNersty Page 26
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 Retx)rts and financial Statements for the Year Ended 31 July 2023 that an outftow of resour will be required to settle the obligation and the amount can be estimated reliabty. A contingent liability arises where the Universty has a FM)55ible obligation as a resu of past events, or where the University has a present obligation as a result of past events, but where the transfer of economic benefit to settle the obligation is not probable, or the amount of the liability cannot be measured with sufficient reliability. Contingent liabilities a diKlosed in the note5 to the financial ststements. 16. DEBT ACCOUNTING POLICY All loans and short-term detx)sits held by the University are dassified as basic financial instruments in accordance wth FRS 102. These instruments are inrtially recorded at the transKtion pri less any transaction costs. Basic financial instNments are subsequently measured at amortised cost as required urKler FRS 102. 17. CRITICAL ACCOUPItING EsfIMATES AND ASSUMMONS i) RECOVERABILrrY OF DEBTORS Provision is made for debts that are not considered to be collettable- referred to as a bad debt provision. This provision is calculated based on eXFEriell of previous years, collertabilty of differing tyFe of debt and applied to the amount of outstanding debt. The University currently provides for 750/0 of outstanding stuthnt debt relab.ng to prior years a1 30% current year outstsnding student debt. ii) INCOME RECOGNMON The University applies judgement when detemiining the value and timing of income items recognised in the finanaal statements. This includes detemiining when perft)rmance related conditions have been met and the revenues associa wf(h paallY delivered Cour where the actMtÈes have not been ful completed at the rep)ng date. iii) IMPAIRMEprr OF ASS5 Inventory checks are carried out regularly to ensure fed asset existen and to detemiine whether those fixed assets have suffered any impaimient loss. If there is an indication of impaimient, the recoverable amount of any affected asset is estim3ted and compared to its carrying amount. If the estimated re(x)verable amount is Sower the carrying amount is reduced and the impaimient Ioss recognised immediately in the pericxl is artses. 18. RESERVES Reserves are dassified as restn.cted or unrestr7Cted. A restricted, revaluation reseNe is held, released annualty to the income and expendf(ure account. in acCtsrdan with the universty depreciation licy. An unrestrirted retsined eamings reserve is also held. Bimiingham Newman Universty Page 27
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 Reports and Finanaal Ststements for the Year Ended 31 Juty 2023 STATEMENT OF COMPREHENSIVE INCOME 31 Jul 2023 UI 2022 IN Funding Wy Grants Tuib"on Fees and Education CA)nts7tts Research Grants and ContE3Cts Other OrErating Income Investment Income Total Income 1.488.636 21.031.965 31,256 2.470,966 1,182,210 20,783,772 116,192 2,281,769 25 21N 463 24 370 759 EXPE Stsff Costs other Operatir4J EX[ Depreciation Interest and other finan ujsts Total Expendlture 15.448,511 7.752.640 1,689,317 120 555 25011023 14,935,679 7,451,850 1,438,642 126 776 23 952 947 Surplus before tax 193040 417012 Taxation Surplusfor the year 193N40 417,812 Transfers Ikthen revaluation and income and eXpen¢JitU r¥e 147,397 147,397 Total Income for the year 565 209 Represented by: Unrestrirted income Revaluation reseNe income 193,440 147 397 417,812 147 397 565 209 All Items of Income * expely1ltu relatr to contlnuing artiv¥ii*s Bimiingham Newman UnNersity Page 28
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 ReFK)rts and financial Ststements for the Year Ended 31 July 2023 STATEmEP OF CHANGES IN RESERVES Year Ended 31 Jyty 2023 Incomè & ExpeThdire Revaluation Reserve Totsl Balance at l August 2021 32,406.319 6,357,881 38,764,200 Surplus for the year 417.812 417,812 Transfer between revaluation and income ènd enrtU reserve 147.397 {147,3971 Totsl Income for the Year 565,209 (147,39 417 12 Balance at l August 2022 32,971.528 6,210,484 39,182,012 sur[U5 for the year 193.440 193,t140 Transfer ttheen rewaluation and income and exwdrture rrve 147,397 (147,397) Balance at 31 July 2023 33,312,365 6 063 087 39 375 452 Blmilngham Newman uniVety Page 29
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 Rewrts and Financial Ststements for the Year Ended 31 JU 2023 srATEMENT OF FINANCIAL POSMON Year ended 31 July 2023 Year ended 31 July 2022 FIXED ASSEts Tangible fixed assets Investment in subsidiary 36.589,111 36,454,449 36.589.113 36,454,451 CURRENT ASSErs stocks Trade and other re£eiwdble5 Short temi investments Cash and cash equNalents 29,998 2.038.896 9.(M)O,IxKJ 2,540,916 30.610 1,612,153 3,500,(KJO 8,164,469 io 13 13.fA19.810 13,307,232 CREDITORS.. Amounts falling due within one year li (3.785.280) (3.882.309) NET CURRENT ASSETS 9.824.530 9,424,923 TOTAL ASSEts LESS CURREr 46,413,643 45,879.374 CREDITORS.. Amounts falling due after more than one year li (7,038,191) (6,697.362) PROVISIONS FOR LIABILMES AND CHARGES 12 PENSION LIABILrrY 19 TOTAL ASSETS 39,182,012 RESERVES Income and expEnditure reserve 16 33.312.365 32,971,528 Revaluation Reserve 15 6,063,087 39,375h52 6,210,484 39,182,012 TOTAL RESERVES The financial statements on pages 24 to 39 were approv&J by Counal on 22 Novemter 2023 and signed on their behalf by: Gayle Ditchburn (Wice-chair of Council) Prnfessor Jackie Dunne IWictrChancellorlCoun¢il Member) The accompanying accounting p)licies and notes fomi part of these finanaal statements. Registered Company Numttr: 05493384 Birmingham Newman Universty Page 30
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 Rep(Kts and financkil 5tsteWnts for the Year Ended 31 July 2023 srATEMENT OF CASH FLOWS Year ende SurFAus on continuing OFerations 193.440 417,812 Adjustment for 14on-Cash Items Depreciab"on charges {Increaselldecrease in st¢xks {Increaselldecwse in debtors Increasel{decrease) in CredItS {Dease)11cfea$e in prowsions 1,689,317 612 (426,743) 602,087 1,438,642 (1,6861 (124,321) 2,362,707 {8,254) Adjusbnent for Investing and Financing Attivitses Inve5tsnent Income Interest Payab Capitsl GTrnt Income (181,640) 120,555 (1,172,160) {6,816) 126,776 (2,325,248) Net Cash Inflow from Operntlng Acttvities 1 879 612 Cash flows from Investing Activitses Caprtal Grant Receipts Investrnent Income Payments made to acquire ft<aJ assets New Dewsits 1,172,160 18L,640 (1,823,979) (5,5(KI,LKK)) 2,325,248 6,8L6 {3,144,2531 {I,000,0001 Net Cash flows from Investin9 Activities 5 970 179 1812 189 Cash flows from Financing Activities Intere£i Pak1 Repayments of Amounts b)rrowed (120.555) (333,333) (126,776) (333,333) Net Cash flows from Financing Activi (DeCase)11ncrea5e in wh and cash equivalents in the year 5 598 599 392 686 Cash and cash equNalents at the LEoinning of the year 13 8,139,515 8,532,201 Cash and cash equNalents at the erKi of the year 13 2.540,916 8,139,515 Bim)ingham Newman Universty Page 31
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 RertS arKI Financial Statements for the Year Ended 31 July 2023 NOTES TO THE FINANCIAL ATEmErs FUNDING BODY GRAKrs Year ended 31 July 2023 Year ended 31 July 2022 Office for Students Recurrent Grant Office for Students Caprtal Grant Office for Students Other Grant UK Research & Jnnovab"on Grant Health Educab"on England Capiial Grant Heatth Educats"on England CAher Grdnt tKE Other Grants 481,055 176,000 24,477 595,428 2(K),476 11,2(K) 467,133 106,480 526,H3 78,954 1,488,636 1,182,210 Income from capital grants itKludes E376.476 in res of (3&NtsI grdnts releas&1 in the year (202112022: £154,954). TIJMON FEES AND EDUCATION CONTrACTS UK Full-time Sttjdents Non UK FiJll-b"me Students UK Part-time Students Other Fees & a)arges 19.748,326 48,250 1.232,949 19.394,141 1,380,106 21031965 20 783 772 RESEARCH GRANTS & CONTRAcrs Research Grdnts 31.256 116,192 OTHER OPERATING INCOME Residences and Catering Other Income 1.393.673 1077 293 2 470 966 1,081,100 1200 669 2 281769 STAFF COSTS The average number of rersons {1judIng senior rKJst-hoklers) empw during the year. expressed as fijll-time equivalents, was 293 {2022'. 294). During the year cOMnsatIon for loss of office of £97k was payable to I emFloyee following tha'r departure. This cost is ilded wthin otvkn.ng costs. Payroll costs duriThJ the year We as fdk)ws: nd l Jul 2023 Wages and Salaries Teaching Stsff Non-Teaching Staff Sttial SecuEty Costs Other Pension Costs 6.505.706 5,553,314 1,263,552 2 125 939 15448511 6,294,322 5,356,265 1,2L5,076 2 070 016 14 935 679 Birmingham Newman Universty Page 32
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 Reports and Financial Ststements for the Year Ended 31 July 2023 Total Remuneration of the Vicelhancellor l AugLJSt 2022- 31 July 2023 Remuneration: BDnus'. Pension contributK>ns: Totsl Emoluments IKJ.862 175,595 3,(M)O 220 176 The Vice-chancellorfs MuneratiOn compiises b3C salary and employerf5 pension ¢onknbLrtn. In the financial year endirig 31 July 2023 no severance. mathet supplements, nU5, salary Sacrifi or allowances (paid or deferred) were made. The w1-{hance11Orf5 basic salary remains in the Lxjttotn quartile of the heads of insbtution within the higher educab.on sector when mea9Jred against seLtor iEnchmarks, rncluding that of the Cathedrals Group of which Newman is a member. In determining the remunerab.on of the Vrce chanlIOr, the Remunerdtion Comtnth also recognises the financrdl constraints and the thallenging environMt faong the institution and settor. It was imrx)rtant that the Universtty indKated tt> all Stakeholde that it was mindful of the Situation and that it will continue to exercise restraint in remuneTrlion. The VIce-Chan110S basic salary is 5.0 b.mes the median pay of slaff (2022: 5.1), Whe the median pay is calculated on a fvll-time equivaPent basis for the safaiies paid ty &'rrningham Newman Universty to its staff. The Vice-chancellors totsl MUnerab.0n salary is 5.2 times the m8Jian totsl remuneration of staff (2022.. 5.3), where the median remunerab.on is cakuLited on a fvll-tirrE equivalent basis for the salars paid by &'miingham Newrnan Unwer5ty tr) its staff. Key management personnel Key managernent pErsonnel are those ttrsons haviThJ authority aThJ responsibility for planning, directing and controlling the activitie5 of the UnNeryty and are rNEsented by the Council ap.nted lOr Post-Holders, which comprises the VicCharKellor, Dewty Vice-thancelk, Pm wCharlI)r, the Univer5rty Registrar and the Chief Financial Officer. r ended UI 2023 Year end 31Ju 22 saries E<)nus 597.802 544,330 597,802 129,394 547,330 ILX),550 Pension c()trbub"ons Employer5 Nl Totsl emoluments 812 476 719 902 Remunerntlon of hlgher paid staff, excludin9 pensi¢)n contributSons (excluding the Victrchanl1Or) Basic Salary Annum £100,000 - £104,999 £105,000 - £109,999 £110,000 - £114,999 £115,CK)0- £119,999 £120,CKJO- £124,999 No of employees 2023 No of employees 2022 Council Membets. Ex No Counol mernber has red any muneraOn l Ned payinents from the UnNer5ity during the year (2022.. NIL). The totsl expEnse5 paid to or on t*half of Council MeMtrs was £4.667 12022- £1,946). Bimingham Newman Universty Page 33
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 Rep) and Finandal Statements for the Year Ended 31 July 2023 OTHER OPERATING EXPENSES other OpErdtiro ExFenses incIje. External Auditors. Remunerdtion.. in respeLt of audbt servi in re5t of audtt-related assuran servKes Jntemal Aud Operab"rffJ lease rentsls.. Other 33,1 27,600 4,440 19,117 30,896 31,350 30,543 Access and Participation UI 2022 Access Investment Financial SuptK>rt Supsx>rt for Oisabkd Students Research and Evaluation Totsl 377,000 201,000 175,000 428,000 127,000 181,000 A copy of the Universty Access a1 Participation Plan is available on the webstte at.. www.newman.ac.u knowled trbase a(xEss-and- rbci lan Staffing costs of £216,000 (2021122 £254,(KX)) are induded within Access and Participation costs and these costs are included within note 5. TANGIBLE FIXED ASSErs Land and 1res, Fting5 & Jikjin Cost or Valuation At l August 2022 Addthons 50.T29,555 M.460 2,494,115 919.519 53,223,670 1,823.979 At 31 July 2023 51634 015 3 413 634 55 047 649 Depreciation At l August 2022 Charge for the year At 31 ju 2023 15,225,813 1,269,812 16 495 625 1,543,408 419,505 1962 913 16,769,221 1,689,317 18 458 538 Written down values: At 31 Juty 2023 35,138,39) 1,450.721 36,589,111 At 31 Juty 2022 35,503,742 950,707 36,454,449 The transittonal rule5 set out in FRS 102 have trEen applied on imrAementing FRS 102. Accordingly, the iJ)ok values at irnplementath)n have teen retsined. Land and buildings were valued in 1993 at der*eoated repL7ment cost ty a fim) of inden(nt charte suNeyors. At 31 July 2023. land of £3.831,375 was hebj within aThl tmjildings and is t)ot de(iated. Bimiingham Newman UnNersty Page 34
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 RertS arKI Financk41 Ststements for the Year Ended 31 July 2023 INTER Interest ar other ffinan costs relate to inter* payBble on the term loan, n¢M-ub"lisab"on fees and interest on the revolving aed faalty. INVESTMENTS The Universty hokjs 100% of the Share cèpxtal of Newman Fimitntrst knmited at a cost of £2 {2022: £21. Newtnan fimitrust knmited is a trading company that is incorrK)rated and registered in England and Wale5. The principal trading activity of the company 15 the constnjcbon of a halls of residence and a buildirvJ extension on behalf of 'miingham Nenan Universrty, aithough rt has dorn)ant thr(h)ut the current and 0T year. The following is a 9Jmmary of financial informab"orTr in of the bslIary at 31 Juty 2023: ar ended lju Year end d Investment in io. TRADE AND OTHER RECEIVABLES AMOUNTS FALUNG DUE WTfHIN ONE YEAR.. Fees and Prepayments and accrued irKome 1.211,763 827 133 729,237 882 916 1612 153 ii. CREDtroRS Year end UI 2022 AMOU FALLIN DUE wrrHIN ONE YEAR.. Bank overdraft Temi loans Trade and other creditors Payments receNed in advan Social security and other tsxats.on payable Accruals and deferred Inco (see foots l) 24,954 333,333 1.646,572 41,072 348,910 1487 468 333,333 1.846,792 84,081 341,981 3 785 28A) DEFERRED INCOME Included in ¢ru31S and tkfe¥red Income are the folk)wi'ng rnS of inco¥ne whh IN3ve teen deferred and will rectsjnised over the eXted usefijl lrfe of the assets to which they relate.. 06 Captsl Grant HEE Caprtal Grnnt 76,(M)O 2(X),476 276,476 76,000 78,954 154,954 E AFfER MORE TFIAN ONE YEAR" Deferre(f Income (see footrth 2) Revolving Green Fund Term Ln (see fo)tnote 3) Temi Loan {5ee fwtnote 31 2,659,023 I50,) 41,668 1,984,861 150,OLK) 125,001 4 437 500 6 697 362 7 038 191 Blrmlngham Newman Univers Page 35
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 RertS and nanaal Ststements for the Year Ended 31 July 2023 Footnote 2 DEFERRED INCOME 06 Capttal Grant HEE Caprtal Grant 1,672,tKJO 987,023 2,659,023 1,748,000 236,861 1,984,861 Footnote TERM LOANS A terni loan of £l,OCXJ.CM)O was drawn down in 2012, whbch is repayat)le in regular instalments totalling £83,333 per annum. The rate of interest on the loan is variable and based on 1.75% over SONIA base rate. A temi loan of £5.QKK),(KKI was negotiated in FeLKuary 2019, with a tbW>-year capital repaymwtt holiday with first amortisab.on on 27th May 2021, repayaiAe in regular instslments totslling £250,0(Kl per annum. The rate of interest cx) the loan is Te rate unb"l Fetyuary 2026 (7 years) at 1.29Wh FAUS loan margin 1.1% (2.3980% totsl), payable quartedy. A four-year revIng credfc facilty of £2,C(K1,Cj was rEgotiated in February 20191 exrAred Febnjary 2023. INCLUDED WThHIN THE APAJVE ARE AMOUNTS FALUNG DUE AS FOLLOWS:_ Year end Been one and ts¥o years: Temi Loan Term Loan 41.668 I25,)1 Btheen IMJ and five yea. Tem Loan More than fve years: Revolving Green Fund Term Loa 150,C( 2 937 5(M) 3 087 500 150,0(X) 3 187 5(K) 3 337 5(M) 12. PROVISION FOR LIABILrriES AND CHARGES There We no provisions for Ik4bilities and charge5 in the year5 erKkd 31 July 2022 or 31 July 2023. 13. CASH AND CASH EQUIVALENTS At I Au9USt 2022 Cash fk)ws At 31 July 2023 Cash and cash equivalents Bank Overdraft 8.164,469 (24,954) (5,623,553) 24,954 2,540,916 Total 8 139 515 5 598 599 Bimiingham Newman Universty Page 36
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 Rew)rts and Financial Statements for the Year Ended 31 July 2023 14. RECONCILLIATION OF DEBT 31Jul 2 Net Debt as at l August 2022 Movement in Cash and Cash Eouivalents Movement in Overdraft Repayment of Loans Net Debtas at31 July 2023 3,093,681 (5,598,599) 333,333 (2.171,585) Change Net Debt S 265 266 ar Ended l Jul 2023 Year End 31 Jul 20 Analysis of Net Debt: Cash and Cash Equivalg)ts 2.540,916 8,164,469 Born)wings: Amounts falling wlthln one year Unsecured Loans Bank Overdraft Balan as at 31 July 333,333 333,333 333 333 358 287 Borrowlngs: Amounts falling due after one year Unsecured Loans Revolwng Green Fund Balance as at 31 July 4,229,168 4,562,501 150 000 4 712 501 4 379 168 Net Debt 2 171585 3 093 681 IS. REVALUATION RESERVE Year Ended ar Ended Rewaluations At l Aijgust and 31 Ju 10 768 969 10 768 969 contribub.ons to tkpreciation At l August Released in year to general reseNes At 31 July 4,558,485 147 397 4 705 882 4.411,088 147 397 4 558 485 Net Revaluation Amount At 31 July 6 (kn3 087 6 210 484 Birmingham Newman University Page 37
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 ReFQrts and Finar[al Statements for the Year Ended 31 July 2023 16. INCOME AND EXPENDMIRE RESERVE ar Income and ExFEndtiure Reserve Balance at l August Surplus for the year Depreciation released in the year from revaluation reseNe Balance as at 31 July 32,971,528 193,440 147 397 33 312 365 32,406,319 417,812 32 971528 17. COPtriNGE14T UABI Excheouer interests (representing the contribut5 made by 0 towards the constnjcbon and refurt)ishment of Universty buildings) amounted to £2,858,951 as at 31 July 2023. Exchequer interests are aMorSed over 10-15 years and are repaYae On in the event of inthw or a ygntficant redwtion in the level of wblIc furKled actiwty. In the event of a substantial change in the misson of ihe UnNersity to the effect that the Universty 15 no longer concerned with the pslon of edijcab.on a5 a insbtutvjn, the UnwersTty may LE liable to pay an amount to the Cathdic Educ&"on Se1 of up to 25% of the value of the premise5. It 15 r¥)t pK)ssible to quantify the amount of the contingent liabilty. 18. STUDENT NUMBERS The number of stLlents attending cour {excluding short courses) at the Universty yre. 023 20 Full-b"me Part-time 2,269 506 2,190 571 19. PENSION SCHEMES The three rension he for the Universtys stsff are the Teacher5. Penson kheme crps), Awva Pension scheme IAPS) and Nab"onal Empbyment SaviThJs Trust (NESt). The assets of the schemes are he in separate administered funds. Totsl penston cost for the year Year ended 31 Jul 2023 Year ended 31 Jul 2022 Teache, Pension sche.. emFAoyer contributions paid Aviva Pension Scheme: em0yer contribub"on5 Fotd NEST.. empk)yer contrilxrtiDns paid Totsl Pension Cost for Year 1,523,674 599,748 1,473,050 594,533 2.125.939 2.070.016 Made up of- Employer tosts Total Pension Cost for Year 2 125 939 2 125 939 2 070 016 2 070 016 (a) TPS Introdurtion The Teache, Pengon heme (TPS) is a statutoryi corrtriLNJt(Kyi defird benefft scheme, governed by the Teachets, Pensions Regulab"ons 2010, and. frryn l April 2014, by the Teachers, Pension Scheine RegulatK)ns 2014. These wulations appty to teachers in *h(M)Ls arKJ other educational estsblishments, iTKluding academEs, in England and Wales that a maintained by knl authoriknes. In add"on, teachers in many inderEndent and voluntary-aided SChIS and teachers and lecturers in some esdlShMents of further and hher educab.on may be eligible for membership. Memrship ifj automatic for fijll-time teachers and lecturers and, from l January 2007, aut<Knab"c t(x) for teachers and ltUrerS in part-time emFdoyment folknwro appjintment or a change of contrart. Teachers and lecturers are able to out of the TPS. Bimiingham Newman Unwersty Page 38
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363 ReFOrts and Finaal Statements for the Year Ended 31 July 2023 The Teachers. Pension Budgeting and Valuation Account though memiErs may be employed by various t(Klies, trtr timent and other pension benefts are set out in regulab.ons made under the SuFtrannuatson Act 19T2 and are paid by putAic funds provided by Parliament. The TPS is an unfunded scherr and merniErs conthbute on a 'pay as you go. basis- these contributions, along with those made by empbyers, a credtsd to the Exttwuer urNJer arrangements govemed by the atove Act. The Teacher5. Pension5 Regulats"ons 2010 requi an annual account, the Teache. Pension Budgeting and Valuation Account, tr> trt kept of receipts and exndrtre {induding the cost of pension increases). From l April 2001, the Account has Creded wtrth a al rate of tUrn, whKh is equivalent to assuming that the balance in the Account is invested in notional invesbnents whi(h pu that real rate of return. Valuation of the Teachers, Pension Scheme The latest actuarial review of the TPS was carried out as at 31 March 2016 and in accordan with The Public Semce Pensions (Valuations and Employer Cost Capl Directions 2014. The valuation retKJrt was published by the Govemment Actuars Department on S March 2019. The key resutts of the valuation and the subsequent ConSuation are.. employer contributron rates were set at 23.68% of pengonat4e pay {including a 0.08% Iw for adrninistrationl,. total scheme liabileS for 1 to the effectNe date of £218.1 1x11n, ar notional assets of £196.1 billioni giwng a notional past service defKit of £22 knllion; an employer cost cap of 7.3% of Fensionable pay will be apled ts) futu valuatK)ns The new employer contribution rate for the Trs was imemented in Septemlm 2019. A full copy of the valuation rep)rt and suprKJrting d(unntation (an Ix fwnd on the Teachers, PensKbn Scheme webSe at the following IcKation: 019 Scheme changes Following the Hutton rwrt in March 2011 aThJ the subwuent omsutstions with trade unions and other representative b)dS on reforni of the TPS, the tkpath)ert published a Pro&N)5ed Thnal Agreernent, setting out the design for a reformed TPS which was IMeMented from l April 2015. The key provisions of the reformed scheme indude: a [slOn bad on career average eamlngs,. an accrual rate of 1157th,. and a Normal Pengon Age equal to State Pensicsn Age, but wth orrtions t(> enab memiErs to retire eadier or later than their Normal PensK)n Age. Imxnl Fensh)n benefits bjijt up before l April 2015 will fulw protected. In addttion, the Propxjsed Final Agreement includes a ment commitment that those wthin 10 years of Nomial Pension Age on l April 2012 will no dwnge to the age at which they can retTre, and no decrease in the arnount of pension they reNe when tw rets"re. The will al%> be further tranSOnal protection, tapered over a threand-a-half-year period, for Feople who ¥%¥)U fall up to th and a half years outsxle of the 10-year protection. Regulations gmng effect to a refornied TeS.FÈr610n heme Ca into force on l April 2014 and the reform scheme commenced on l April 2015. FRS 102 (28) Under the definitions Set out in FRS 102 (28.11), the TPS 15 a mulb"mpbyer an. The University is Unab to identify it5 share of the undertying assets and lkibt1itS of the rAan. Accordingly, the University has tsken advantage of the exempbon in FRS 102 and has accounted for its contributs"on5 to the scheme as if it were a defin&J-conbibution plan. The Universty has set {tt aly)ve the infomation available on the plan arKJ the imF4ications for the University in temis of the anb"cipated contribub.on rates. Ib) Aviva Pension sche {APS) The APS is 0rated by the Univer5tty and 15 a defined contribuiion sche designal to prowde retirent beneffts for any of its pemianent empk>yees who elert to the scheme. The assets of the scheme are indendent of the Universty's finan. The nSIOn costs d)arg&J to the Incfft ar Expendf(ure account (Note 5) include contributions payable by the UnNersty to the scheme. {c) NES[ The University intrrMlU the optK)n of NES[ f(K all empbyees who are ineligible to join Trs or APS. This is a workplace nSIOn scheme set up by the governrnent to rneet the requirements of the auto enrolrnent pension rules. Bimiingham Newman University Page 39
Docusign EnvÈlope ID." 580FA41tkED2349A&A75UC92656A1363