LEF.DS TIUNITY UNIVERSITY Annual Report and Financiydl Statements For the yexr ended 31 July 2023 Regisler¢d Company Numbei. 06305220 I.F.EDS TRINITY UN]VERSITY ANNUAL REPORT AND FINANCIAL STATEMENTS For the yeai. ended 31 Jiily 2023 CONTENTS page Dlrt¢tor$ and Advtsors Introduction and Nature of the Unlyersily Strategic Report Cliarllable Purpose and Publlc B¢neflt Diitctors, Rvporl 13 Corporat¢ Governonee 16 Independent Auditor'$ Report 21 Slatement of Principal Accounting Polic1¢5 25 StgtemeNt of Comprehensive Income and Expendlture 29 Stal¢meDt of Ch4nges In Reserves 30 BAlan£t Sheet 31 C¥sh Floiv Statement 32 Notes lo Ilie Financial Sl8t¢ments 33 LEED8 TRINI'fY IINtVERSITY DIREC'foRS AND ADVISORS Director5 and Gnvtrning Body Memb¢r.i Servlng durlng the year and up to the d&(e of approv81 of tlie annual report avd financlal statemcnts ivere: Dr Jason Aldiss (Senior Indepeiident Ctrovernor ai)d Cliair of Remuneration Committee, resigned 14 December 2022) Mi. lJawrenee Bentley (appoii)ted l Febr￿ary 2023) Mr Mark Bro¢kbaiik (retii'ed 3 I July 2023) Prof Charles F.gbu (Vic¢-Chancelloi'l Mr Michael Treeley (resigned 7 Noveinber 2022) Ms Thebna Ford E￿obar Ms 8ophia Mi]nes Ms Ceri Nui¥aw {Ch8ii' of Academi¢ Assurallce dnd Studeni Experiet)Le Comll)ittee fro￿ 17 Nlarch 2023) Mr Kevin O'connoi. (appointed l February 2023, Boai'd Vice Chair fi'om 5 July 2023) Mr David Oldroyd (appointed l Augvst 2023) Ms Emily Reed (Chaii. of GoveThan¢¢ and Noininations Committe¢, Senioi. tndependfflit Governor from 5 July 2023) M% Susan Rix Fi. Paul Gi'ogaD (appointed 18 May 2023) ' Janiie Hanley {Board Cliair) Ms Susan Hogslon (appointed l August 2023) ' Martin Holden (Chall. ol'Audit Con￿11t1eC> M5 Kelsey Howai'd-matthews . Denis Kobzev Mi. Vijay Shanna (appointed l F¢bi'uary 2023, Chllir of Remiineration Coinmittee from l August 2023) M5 Tara Smith (Chair of Finance and Resources Coinmittee) Mi. Paul Southcri) (resigned 17 January 2023) Rt Reverend ma￿V5 Stock i. Rolaud Maposa Mi. Bill Mccarthy (Board Vice Chair at)d Chair of Academic Assurance and Student Experience Coinmittee, both lo 31 Decembei. 2022) Ms Amy Wilsoii Clerk to the Board and Cojvpany Seeretary Mr Craig Williams Ch%neellor Pro Chanc¢llors . JOI￿ Studzinski Mr Ed Andei'son Rt Hon John Battle Auditor Soliellors Grant Thomton UK LLP No I Wliiteliall Riverside Wliitehall Road Leeds LSI 4BN Ev¢rslieds Siiiherland LLP Bridgewater Place WAter Lane Leeds LSII 5DR Registered Office Lccds Tyinity UniveiBity Brownberrie Laiie Le¢ds" LS18 5HD ENGLAND Company and Charity Numbgrs RegisteiEd Company Number Regist¢ird Chdl'ity Number 06305220 1120102 LEEDS TRINITY UNIVERSITY IN'I"RODUCTION, STRUC'fuRE AND NATURE OF THF. UNIVERSITY llltroduction The Govemors present th¢ii' annual i'epoil, including the Strategic Report and th¢ Directors, Repoit, and the audit¢d financial sldtemenls foi. tlie y¢ai' ended 31 July 2023. The financial stateinent5 compiise ihe iesults for the year f the University. l-he Strategi¢ Repor¢ has been prepared for Ihe piii'pose ot providing additional information to funders, fihk)ncial suppoJ1¢1's and oiliei. 5takeholdei% to assess tlie University's strategies and th¢ potential foi. those strategies tr) sueceed and is not ￿￿t¢l]d¢d tor Ilse for any utliei. piiipose. l-he Strategic R¢port ¢oiitaiiis foiwai'd looking statements. These stateJn¢n15 are based 011 tl)e infomiation available to the Govei'nors UP to the tiine of their approval of this report. Tli¢ Uiiivei'sity is both a coinpany lllnited by guarantee and a registeird chai'ity. Each Governoi. 18 both a direcror of the Coinpdny and a trustee of the Charity. Tlie Goveinoi's deem the prineipal activity of the University, in both the uireiit aiid prior yeai., to be tlie advanceJll￿it of cducatioii. Natuye of the University Leed5 Ti'kllity Univei'sity {"L¢¢ds Trinity" oi. the"UiiiveiBity") is an autononious, t¢#cliing-led and irsearch-infoi'med liigher educatioii institutiuii, inspiTed by Catholic valtses and based in Horsfortli, Leeds. Til¢ oi'TrLFjiis of Leeds T)'inity Can be traced back to two Catholi¢ teacher ti'aining colleges, Ti'inity College and All Saimts Coll¢ge, founded by the Cross and Passioii Sisters and the Catholic Education Seivice in 1966. 1.heir mission was to piy)vide the besl ediicational oppoitunilies possible foi. the cliildren of tlie poor and to actively support social jU5tic¢- aspitxtions that Leeds Trinity still maintains. Over tli¢ last l)alf cenluiy, the iiistitution has evolv¢d attd developed culmiiiating in the award of univei'siry title in Decemb¢Y 2012, but its Catholic faith foujidatioj) IEniains c¢ntral to its activities and is enshrined within its legal objects wl)icli 'shall be tl)e establisliirejit, condiict aiid d¢velopinei)t of a Roman Catholic instituiion for the advancement of education lor the benefit of th¢ piiblic,, The University's origins and faith foundation continue to be I'eflected in its Mission, Vision and Values. Oui. Mission" Leeds Trinity's Inission is root¢d in its Catholic foundation. We are a diverse and inclusive University welcoming students fi'oin all backgrounds and belEefs which exists to provide a tiansfonnational educational exp¢riencc, fol.1￿7￿E students and Icamers whos¢ lives will floLlI'ish and t￿d wholeness in theii. work and world. fiocused on the innate digiiity and value of each peTson, we seek to pi'ovide our students with a distinctively supportive academic at)d pyofessional coininujiity, ¢inpowei'ing them to diseovei. theii. unique gifts and taleiits, and so fulfil their pei3onal and professional poteiitial. Oui. l¢adei'ship and goyemance al'e conimitted lo promoting social solÉdarity and the common good through our ¢oinmitment Éo social justic¢, enhttncing opportunities, collabE)ration, adding value to the lives of our students, staff, and Univeisity community. Oui. Vision We will be a l¢ading ¢areer-led and Applied university. Our students will achieye outstanding oiitcomes. Our well- rounded learners and gradEiates ivill be SO￿ght by employers. They will shape a iapidly changing world. OUJ. Values Rooted in our Catholic h¢i'ittige, our core valucs define us as a Univei5ity, and we seek to uphtsld them in all that we Digiiity and Care; Solidai'ity and Seivice., Honesty and Integrity. Respect and In¢lii%ivity,' Knowledge attd Excellcncc. LEEDS TRINITY UNIVF.RSI'rY STRA'I'EGIC REPORT Strategic Plan 2021-26 Thc Univei'sity's cun'ent five ycai. Sliategic Plan was appiM)ved in July 2021. Oui. haliinark will be as An entciyri5ing anchor institution where social justic¢ is at ihe eore of who we are dnd wbat ive learn. We cominitto equality, diversity, and inclusion iii all we do. We will ¢re8te new ways (Ff linking) to oui. City Regioii. Pai'liiei'ing will help our students to thriv¢ through wo)k, volunteei'ing and learning insights. On our Horsfortl) campus, or th¥ough our pailner colleges in the UK aiid aroulld the world, we will develop roiinded learners. Our learn¢i's will leave with skills passports to take into the tnany careers atjd quests they pui'siie. They will be i'ead>i and piepai¢d for lifelong learninL. They ivill coiili'ibute to a Leeds City Region whicl) IS ClEative, fui) and caring. W¢ will grow and sustain our Lceds cainpus base and also expdnd stiidenl t)umbei's lI￿Ough our partnei3hips. We expcct to gTOW our it)teYnational lillks and make Éhese part ol our studeiils, lewxing journeys. We will inake oiir Strategic Plan woi'k tIll'ou￿ four tliematic pillars. Each will have an action plan linked to the Univei'sity's enabling gtt'ategios and a sel of key pei'foi'niaiice llidicatoi's to n]oiiitor progress. Each pillai. has a clear role to play in Achieving our Vision by 2026.. Education & Experience L¢eds Ti'inity's sludent experience will be uw'ivalled in the higher education sector. Oily stlidents will ¢ng&ge in depth with Ille￿r lean)ing. Oui. appiK)aclie5 will stimulate curiosity and inquiiy. Studenls wlio joill us will always feel part of an extraordinaiy community. They will be inore than a Iiillnbei.. Tbey will flourish as individuals and ci'oss-disciplinary team5. They will partner with us to co-create the curriculum, They will challenge vs to iJ)novate in our tea¢hing and learning. People & Sustainability We cair about our people. W¢ know that professional developinei)t h¢lps people to fcel fi]Ifilled. Pei'sonal growth ii)creases health wellbeing. This lead8 to b¢ttei' outcoiiies fur oui. leai'ners. It ci'eates a caring Comi￿ul)Ity. Our care for tlie environment mean5 that our caii)pus will be greener. The leamiog environments we offei., includiDg througji oui. partners, will put hun)an connections fir4t. This will happen ttll'ough digit81 hannels and through physieal spaces. We will achieve all of tknis ihiviigh being f￿anciallY stable. Re5eairh, Impact & Inllovation We will advance knowledge to help peoplc and society. Our social p8rtnei3 will challellg¢ us to innovat¢ and make an impact. W¢ will cnable our student5 to contribute to society ihi.oli￿ tliell. own applied resear¢h, and our work will enrich OLtr leaching. Our piactice and our research w511 cross disciplinajy boundaries as we collaborate. We will it￿0vate as we gi'ow our coinmeirial paiin¢i'ships. We will inforjn public debate, ¢ngaging and helping ouit)Inunities to ￿ake serts¢ ofthe Chai￿ll3g woi.ld around us. Careers & ￿]terpriSe Fiojn a careei'.led wjiveisity, our studejits w511 be sought by ￿nplOye7¥ and society. Our g￿d￿ateS and staff will shine through skills that mark thein out as both local and global ¢itizens. They will b¢ effective as soeial and cultural enttEpren¢urs ￿ ihey build tbeir cai'eers. Underpinning and supporting these foul. thematic pillars ar¢ tiwo cross cuttin¥ themes.. Digital FutuiTs Through all foul. of our strategic pillars, our use of digital teCEwolo￿'WIll enable a cultural transforrnation of the way we WOTk, study, 8nd connect within the University and with our extei'nal stak¢holders. Leeds City Region We will engage with our pai1n¢i3 and build our pi'ofile in the Le¢ds Ciry Rcgion. This will bring opportunities for oui. learner$. 11 will also increase oui. ii)flu¢nce and impact as an 8ttchoi' institutioji. LEEDS TRtNITY UNIVP.RSITY STRATEGIC REPOR'I. Opei'ating Environment The wider economic ei)vironineDt coniu)ued to IDok¢ itself felt diii'ing the yeai. in sevei'al aspects. Fii'stly. tbe Univcrsity contiiiued to feel the eff¢¢l ora challengiiig staff iEClllltinent outlook cgus¢d by the pievailing tight labouj. market, with a rcduced laboui. supply from people exittng the laboiii. maiket and art iwai'enes8 of those I'ejnaiiillikj of thcir Increas￿ bai'gkining pow¢r. Secondly, ijnpacts continucd to be felt from iftcreasing inflation rate5 and siipply chain shortages, especially around building & construction matei'ials and so p4rticulai.ly affccting capilal projecls. High levels nf price llicrease5 and tlie cons¢qiient cost of living ci'isis iinpactcd both staff and stud¢nis. with the University divcrting additiODal resource5 to partly mitigate the iinpacis of botl) of tliese. The widerlii¥her education landscape coiitinues to be a challengiiig onc, wiih teaching incume tied to student nuiiibeys in a compclitive I'ecruitin¢nt inai'ker; ¢¢)ntinued uncertainty ag to the longth. tetTh future of the current fee and fi￿dIng regitne wheie the £9,250 fee is i)ow worth around £6,000 in real terms after Ic djusting foi. inflatioii., Jtt emergence of goveiniMeDt questioJ]iJl&7 01.the pi'llicipl¢ of cuntinued increases in parti¢ip8tion in high¢i' education. and the iii)pact of the reg5ulatory regulle l¢d by the 0￿￿CK foi. Sknidents (Ofs) as it responds to various govcmment pi'iorities. in paiticiilar the ints'oduLLion of Ilie 'B3' outcoine ine¢i'ies. Leedb Trinity 15 very I'eliant on student I'elated incoine tthd has recently been seekllig greater diversification of incorne 5tt'eains ihrough d¢velopmeiit of additional student provision to redu¢¢ irs dependeiicy oi) its traditional on-campus undergiaduate inavket. These ii)clude tlie dcvelopinenl of degree appi'enticcsliips, whe1¢ the market has bceii 5tiinulated by tlie governinejit's appi'entic¢ship agenda, and th¢ further developinent of p￿Iners￿l1pS and collaboiatiovts. The polential risks fi'oin the ope12ting eilY12x)nm¢nt to both shtsil leim liquidity and longer t￿.￿ t-￿a1}cial sustaitiability have been ¢onsidered in the going concern assessment which is discussed lll the Going Concern seclion of tlie strategic Repoi'l. Principal Rislts And Unc¢rtaiiities 'rhe inajor strategic and financial risk areas facing the Unive131ty (wlii¢h bFroup togethei. seveial linked risks) and its re5POllSe to those risks are.. Student Recruitment, Experience, Probntssion and Employability- As a teaching focus8cd Univeisity which derives the majority of its inconie fi'om tuition fees, the gbility to recI￿lt and i'etain planncd 5ttident niimbeiB an increasingly competitive mai'ket 15 fundainental to the Univ¢rEity's su¢cess. The University's ability to providean ¢xcellent studeiit ¢xperience and enable students to succeed i.s ¢eJtial to its I'¢Piltation and the risks of failuie in the5¢ areas is that th¢ Uiiiversily beconies less atti'a¢¢ivc in tlic S￿dent re¢ruitmellt arketplace. 'lThe University 14 managing th¢se risks by ensuring the continud attractiv¢nes5 of its portfolio through regular planning and review, including ¢xtension into Dew airas of idei)tified market oppoitunity. by coniinuing and evolviJJg the marketing approach of irc¢nt years. by the inli'oduction of g personaliscd applicant approaoli to utilise th¢ University's strengths and provide distinctiv¢ness in the Illa￿et' and through einbedded student engagement, PIDvi.%ion of integrated SUPPOTt for students, an enlianced fwus on improvein¢nts in ietention and progression, and strong omployci. engagement inclthding pla¢einents on every uiid¢rgi'adLiate pi'ogramme. Financial Sustainability. Policy EnvllY)nment and Partna%hips'. Failiire to adequately addlE￿5 the changeabl¢ envll'onmeni brought about by the i'isks and uncertainties ai'aund student recruitment. together with uncei'tain political environment around fee5 & fundiiig, goveimment policy direction wit regards to t¢8chei' education, increasing pre55ul.es froin pension costs aiid th¢ cuiyent inflatitsii and energy costs ettvironinent, would mean th¢ ability to respond to changes is I'estricted and financial sustainability IS thieatened. The University 1% inanagingthe8e I'isks by caiEful manageinent of tl)¢ cost base to onsure value foi. Inoney and to retaitt flexibility,. by a financial sti'ate¥y pKioi'itiSsn& levels of liquidity which would enable downtum% to be managed., by strategic inve%tment into new facililies dnd 5ubj¢et areas to drive growth in undergraduate numbers, including opeiiiIig LEEDS TRINITY UNtVERSITY STRATEGIC REPORT a new ¢aiiipus in Leeds cily centiy,. by diver5ifJcdtion into I'eccntly developed incon?e %treams siicli a5 dc¥ree apprenticeship partnei'ships. by a keen awareness of the additional risks of pailiiei'ships working and the nced foi. a robllst approach to Inonilor quality,. aiid by rob115t scenai'io pla[￿1ng aiid considci'ation of available options. Othei. significant ii$ks: QtIIci' significynt Tisks which do not fall within the gI￿llped risk areas above al'e those around IT i]Trfvastru¢tiii'e & infonnation security {pailiculai'ly the highei. level of cybei. attacks in r¢c¢nt yeai's) aiid tliose ai'ound Staff & student mcntal wellbeing (wheir exisiingi'isks were heightened dui'ing the pandemic froin prolonged pei'iods of hoine working & Irmote study and are likely to be fui1her impacted by the cosl of living trisis). The strategic investment into new facilities and subject areas to suppoit the Univei%ity's ￿'ow111 ambitions taces risks ai'ound c05ts, 1'e.%ourcing & timescales and th¢b¢ risks al'e beiiig Initigated by a sli'ong pi'ograinnie ]nanagemenl and governan¢¢ approach. Significant vents and Perforniance In the Year ollowing Board appi'oval in 21-22 of sev¢i'o1 busii)ess cases to support th¢ Univei%ity's strat¢LFic growtli aiJbitions, implcmcntation of these has bc¢n undeiTrvay duiii)g the year. These inclllded enlry into new aieas of provisioii in 14¢alth & Lifc Sciences, incliiding Nursing wl)ere regulatory approval was obtained diiripg tlie yeai. aliead ol. a fll'st cohort qtarting in January 2024. and plans to establish a PlESen¢e in Leeds city cei)Ire iii addilion to the existing 1191sforth campu& wheie tlie Univ¢rsiry entered inÉo an Agic¢inent to Lease foi. a 50,000 square foot ¢ity centre preinises dui'ing the yeai. with £15in of associated capital investi￿¢nt ahead of d planned openitig lli Septembei. 2024. P¢rforinance in the year is dis¢ussed llnder the variou5 headings b¢low and in the Flliall¢ial Sustainability section. Stiident Experience.. The attractiveness of Leeds Trinity to potential stud¢pts 15 enhanced by its I'eputation lor high quality leaiming and teaching> which is the product of a cominitment to prvviding pei%onalised, one-to-on¢ suppoii for students. lthis is reflected in traditionally high levels of student saiisfaction. The inost I'ecent oul¢omes froni the National Sttidenl Survey (NSS) placed the University 5th nationylly for assessment & feedba¢k, attd also it) tlie top 15 t)ationally for learning oppoitunitie5 and Student voice. The Univei'sily also rdnked 181h natÈonally loi. student experience in the latest G(x)d Univei'5ity Guide. Student Recruitm¢nt: Following a fall in undergraduate r¢¢ruitm¢nt in Septembei. 2021, driven by Lwo pandemic related factors {fii'stly the ¢ainpus nalui'e of ihe University meynt that not being able to gyet applican15 to can)pus inipacted Leeds I'i'inity adv¢i's¢ly relative to the 5ectoi' and S¢Londly anticipated A-Level grade i[￿ation fi'on] a second year of teaehth. as5es5mcnt ledd to widespread tradingi up to higher tariff behavioui. by applicant5), the cycle to September 2022 %aw a part i'ceovtry with a small InC￿a5¢ in ¢nrolmenfS. The cycle to September 2023 saw a turther uplift with eni'olinents iiow back above ihe 2021 position. Learning and Teaching: Attainment continues to be strong attd when Lombined witb an entry tai'iff piY)file that Irfl¢cts the Univei'sity's mTnittnent to widening parti¢ipation, Ihis reflects the Univei'sity's siic¢ess in enabling student5 to aehicve their potcntial. The University ranked 24 nationally for teaching quality in the latest Good Univei'sity Guid¢ and reÈ#ined its Silver ratllig iii the 2023 T¢a¢hllig Excellence Fi'amework ('fEFI outcoine5. Stud¢nt'Employability'. Leeds Trinity has also long been attra¢tiv¢ forits employability record and figuves froin the l.ligher Edueation Statistics Ag¢ncy (HESA) for the Gi'aduat¢ o￿tc0]neS (GO) Survey continue to Show high levels of ovcrall employment or fu11her study. The lat¢st i'elease of figures, lor 2020-2l graduates and surveyed 15 Inonths aftei. ￿'adUatIOn tn Seplember-Noveinber 2022, showed 94.8/0 of graduates iii einployinent or fui'ihei. study. Th¢ olltcome foi. g'odiiates in highly skilled eiilployi￿e￿t oi. f￿￿ter study sliowed a 90kn incira5¢ to 74. Iyo and altl)ough this i$ still 3°/0 below the 5e¢tor avei'age the gap is down from 9Q/¢ below last yeai.. LEEDS TRINITY UNIVERSITY STRATEGIC REPORT Apprenticeships and Pamierships.. The University see5 the govei'ninelll's poli¢y pusli foi. mole apprenticeships as an oppoiftinity ftsr those institutions which can i'espond quickly and is brll)ging it5 traditionally stroijg eniployer links to bcai. in tliis area. Ovei. Tccei)t years. ¢ontTaclS secured with both public atkd pi'ivate sectoi. eimployers Iiave seen numbers incycase significalltly ¢ach y¢ai' sin¢e. The 2022123 year was the thii'd fiill yeai. (so se¢ii)g cohorts across all three levels) of the IJnIve￿Ity'S 5ignifi¥dnt pallnership with Wes( Yoi.kshSr¢ Police as poli¢ing Inoves rowards being a graduate entiy pi'of6S5ion, witli d¢liv¢iy oFlhe Police Constabl¢ Degiye AppiEnlicesliip for non-waduaies and the Debyee Iloldei. F,nby Programme f(Ir th(Ise already lioldll)g a non-policin¥ degi'ee. Th¢ year was also the second year of the University's partnei'sliip with the Unlocked leadei'511ip pi'ogramme foi. Iiew pris011 Otfice]t, whicli furthei. ¢xpands the Univergity's gi'owin reputation iti the crllnu)al justice area. The success of both of these enabled the lJniversity to be aivarded exteiisions to both coiiti'acts durii)g tlie yeai.. The University has niade signilicant progi'css iii developing paitnership5 that help it l'each its aim of providing wider access to highei. education. Partnerships with four Ull pi'ivate provide1%. were in Iheir foui1h year in 2022123 with student nuinbers acr05S tl)e lour pai'lnois growing to over 9,000, witli new partnerships with additional pi'oviders approved to cominence lli 2023124. 'The ieci'uitment markets of all th¢ partners have a siw)ificant element vf elliiiic coinii)uiiities tliat li'aditional highei. ediicatian provideiB find difficult to access. HeseaJrh.' Following the successful outcomes from the 2021 Reseairl) Exeollence Fi'amework (REF), with 840/0 of publications beii)g assessed as of inlernatioiial qLiality (2*plusl and I l % world leading (4*), the lJniversity continu¢d to impi'ove in terins of ieseai'ch fui)ding, research oiitput8 alld PhD CDinplerions. to deinon5tr&l¢ the progress being iiiade by the University towards its aiin of seeui'ing vesearch degree awarding powers (RDAP}. Financial Overview Fillan¢ial performance for the year endcd 31 July 2023, together with th¢ ¢ottesponding figure5 ftsi. the previous year, is summai'ised the finaocial highlights sl?own below. 2023 2022 £'ooo £'ooo Tuition fe& 53,319 10,911 64,230 47,637 6,922 54559 Other Income Totk)I Income Staff costs Other costs 35,574 22,821 58,395 27,241 16,¥97 44,138 Total Expendlture OperAting surplus before pensiott aetu#rlal adjustments 5,835 10,421 Pension actll81Yal adjustmcnls.. Currenl 5¢rvicc cosls in excess of ￿￿trI￿ltiOnS Net int¢r¢s¢ on pension liabilities 1.218 182 3,351 495 Surplus for the year as per the Statement of Comprehensive Income & Exptnditure excluding pellsion actuai'ial adjusttnents LEEDS"I"RINITY UNtVF.RSITY STRA"fEGIC REPORT Cash g¢￿eratIOn and Ilquidity: 2023 2022 £'ooo £'ooo EBITDA for the yeg1' 9,441 13,638 Oper￿lIng efish tlow 6,911 15,417 Cash and sho11 temi inve5bn¢nts Borrowii)gs Net fund5 37,173 (7,847) 29,326 39,124 (8,518) 30,606 Tglal iiicoine incirased by 17.7 /0 ai)d total expenditure (excludiJg pci)sion actuai'ial adjustments) iD¢reased by 32.30/., l¢ading lo an opei?tiiig slli'ytlu5 before pcnsion aciiiai'ial adjusbneiits of £5.8n). a reduction of £4.6in fi'om prior year. Tuilion fee income ix)se by 11.9/0 and now ieprescnis 83.00/0 of Èn¢oine (87.3010 in 2022). However, within tliat the UniveiBily's sti'otcgy to dive¥sify its income stt'eams away froin a reliance oli its trnditional on-campus uiidergradiiate pIDvision is COlltinuin8 to be succ¢ssful with partnersliips and degree apprenticeships now accounlinb foi. 48.50/0 of tuition fee in¢oine and 40.20/0 of all income (up from 37.4Yo and 32.7 /0 respectiv¢ly). Within the operating cost base, staff ¢ost5 were up 23.4Q/o driveii by a 19.4010 increas¢ in aveixge staff iiuinbei's in oi.dei' to deliver on sti'ategic plan ainbition.%, within which the￿ was shift in the ￿iK towai'ds moiE acaden)i¢ staff (up 23.0/0} who liav¢ a liigher cost 01) average than non-ocademi¢ staff. other costs inor¢llsed by 35.00/0, as a result of inci'eased costs ot delivery associatcd with gly)￿h and SUPPDrt for cost of living pressures and hardship. The pension athlarial adjustments were £1.4m reducing an operating surplus oC£5.8m down to 8 £4.4m surplus as pcr the Ststetnent of Comprohensive Ii)coine & F,xp¢nditure. The cui'rent sei'vice c05t in excess of contributiot)S adjustment reduced fi'om £3.4m to £1.2in The annual actuarial adjiistments beor no relation to the actual cost of pension cominitmenls rnade in the yeai.. Accounting standards mandate that the current %ervice cost Is calculated using) the prevailinb (and Currently Invch lowei.) corporate bond iate for investn)cnt Teturns rathei. than tlie lo]]g term investineiil Telurn assumption5 which the fund actuaiy uses foi. the seheime valuation alld the setiiDg of el￿p10Y¢1. ¢onts'ibutions (whicli weir 3.950/0 k)s per the 2019 valuation which produced a fully funded position foi. the Univeisity). Tlie lut¢ used for the annual actuarial adjustments has Iknoved fi'tsrn,1.7/0 in 2021 to 3.4Q/o in 2022 aiid 5.OQ/y ill 2023..The I'esiilt hugh wo]k, volunteei'uigT and l¢aminb) insights. Undergraduate iECrnltIMent will continue to be centiHI to the su¢¢ess of tlie University. A period of demographic growth will follow for the rcst of the decade und ihe University will aiin to furtlier take advaDtago of this period of oppoitunity by looking to expand its poi'ifolio into new subj¢ol areas and expand its footprinl via the new eity ccntre cainpus. R¢¢rnihnent lo Health & LTrf¢ Sciences courses will ro]wnenLe fi'ojn 2023 eiitry with a fii'st Niii'sing eohort in January 2024, with these subjc¢t areas planned to ￿'OW ov¢i' the next few years. Pl41)s to establish a presen¢e in Leeds city centtr in addition to our existing Horsfoith campus have seen ali agiEeineiJt to leas¢ taken on a city ccntre Sile dui'ing the year, to be followed by the fit oul of the bllildin¥ dui'ing 23-24 ahead of a Sept¢mber 2024 opeiiiiig. On oui. Hot3forth carnpus, or tlirougb our partner ¢olleges in tlie UK and.arout)d the world, we will develop roiinded leayncrs. Our learne￿ will leave with skills passpurts lo take inlo the many cal'eei's and quests they pursue. We will giY)iv and sustain our Lceds campus base and a150 expand studellt nuinbeis thi'(Mgh oui. partnerships. Wc expect to 'ow our inteinalional links and Inake th¢se pai't of oui. students, leai'nitis journeys. Through all fovr of our new strategic pillai'$, ow. use of digital technology will enable a cultui'al transfoi'inatiom of the way we work, study, and connect within the University and wilh oui. exlernal stakeholdeiB. We will seize the oppi)11unities opcned up by the pandemi¢'s acceleration of long¢r lerin cl)attges whi¢h weir akn'eady in play, in ol'der io enable aspirations around agile workin¥ by siaff and the conibinalion of the digital And the personal by %tudents. Leeds Trinity is also targetink fuither growth in degr¢¢ apprei)ticeships by Usllig its oulstanding employer links to build 01) the success of its existing partnership witli West Yoi'k5hire Police. DiveTsifick)tion of in¢oiTJe siieams will b¢ continued by the franchised partn¢rship provision. Going Concern The Univei'sity'5 activities, togetl)er with tl)e un¢ertainlies arisuig and the factoiB likely to affect it5 ￿tUre developments, perfomunce and position are s¢1 out in the Operating Elivll'onmenl, ￿.inCipal lknsks and Unceitainiies. and Plan for Futur¢ Periods sections. The fJnan¢ial position of the Univei'sity is described in the Financial Overview ai)d Financial Su8tainabilily sections and in n)oi'¢ delail wiÈl)in Ihe finan¢ial statemeiils aiid aecoinpanying not¢s. The Eloai.d believes that tlie Univer51ty is well placed to manage its i'isks successfully, witl) a slrong pci.fom)an¢c base in 22123 and a robust liquidity posiiion as at 31 July 2023 equal lo 241 liquidity day5. The UDdei'gi'aduate i'ecruiÉinet)t outlook remttins healthy, franchise partners continue to grow student nuinbers and the dernand for residcntial. accommodatioii remains hlgh. Considcration has been given to the p￿entIal foy iDterivptiOll5 to in¢ome sttEams in tei'ins of the stsESS testing or extt'emc and highly iinlikely scenai'ios. These cover reduced recnjitmenl, pro￿.eSsion and ressdei)tial occupancy,. ehang&s to the fe¢ and funding environTn¢nt; and from other den]ands on the University's cash reserves iiicluding comrnihnents on its strategic growtli inve8tmeiits. The stress tesli]]g 5bows that the University would continve to have sufficient cash head1￿0M throughout the period arid would reinain En a positive net casl) I debt position indic2ting the continuing ability to service loap obligations fi'oin cash in hand. I'he cuirent forecasts and pi'ojeciions, including rcasonable downside sensiliviti¢s, and the strong liquidity PQ5ition, demonstrate the expcctation that the Univei'sity will be able to operate wiihill its curreiit fa¢ilities and available headroom and maintasn compliance with cov¢nanls and cash requiremen¢5 The Board of Governo13 considei's Ih2t the University has adequate resources to continu¢ iti opeixtional existence foi. the foirseeable future (to the end of the 2024125 financial year). Accordingly. it ¢ontinues to adopt the going conc¢rn basis in preparing the Annual Rcport aiid Financial Statem¢nts. LEEDS TRtNITY UNtVERSITY STRA TEGIC REPORT S172 Statement The Board and it9 committees considei. tlie potential ¢onsequences of its decisions on its key stakeliolders in the long temi, taking into account a wide i?D¥C of faLtoi's. as set out beloiy. The Boayd fully appreciates that the University can only ￿0W sustainably throiigh having regard to rhe views and nccds of these slakeholdei's, being its students, staff, partners and the widcr ¢omithunity. Decisions made by the Board are infoiined by the University's mission, vision and values, as d¢5cribed li) the NatLIIE of tlie Ilniyei'sity section ol. this report. In pwticulai., the values of dEb￿litY & care, solidarity & service. hvnesty & inlegi'ity, IEspect & inclusivity, and knowlcdge & excellence are Fooled in ourcatholic heritage and di'ive tlie Board's actions. 'rh¢ Board 8gci)da includes presentali(Trlls and repoyis wilh iegulai. updates on upe171ional, pei'foi'inance and people matter8. The executivc tcair attend Doard and cominittee meetillg8 as do fuiiLlional heads on a I'otational basis, as relevant IO the agcnda, to ensure that the Board 1% in touch with 211 parts of ihe oi'ganisation in oydei. to infoi'in its judgnients oi) lojigei. tei'in 5tnitegy. Both staff and student meinbei'% sit on the Bo&rd and Committees in order tv ensure regular enuTJgeineni of all ii)eiiibei's to IrpiEseiilatives of these two key groups. During the yeai. the Board oversaw the impleinentatioii of th¢ pi'eviously appi'oved business cases to enter into Health & Life Sciences {it)cluding nui'sing) aiid to ¢5tablish A presence in Leeds city c¢iitre in addition to oiii. existii)g Hoi'sforth campus, including the approv81 of significant amounts of capital investtnent witli regai'd5 lo tliese. 'I'h¢ decisioIis ai)d actions of the Boai'd uiiderliiie the aim of the University to achieve positive oulcumes for all its stakeholders. Fuilher specific examples of the Univei'sity's impaLt on the wider Col￿n￿ll1ty air illustt'ated ils Chai'itable Purpose and Public Benefit repoi1, which incl￿deS outlfklLI), student SU¢Less and tlie access and pai1icipation plaii. The Board Conside13 Ihei'efore, that it has acted in a way it consider5, in good faith, to pn)inote th¢ success of the Univei'5ity foi. the longer teiin. ApprovAI The Strategic oi ias b¢et) appi'oved by the Board and is sig]i¢d below on its behalf. evin O'connor O]1 behalf of the Board of Gov¢rnors and Board of Director5 29 November 2023 io LEEDS TRtNITY UNIVERSITY CHARITABLE PURPOSE AND PUBLIC BENEFIT Charit#ble Pllypose Public ljenefit The University's charitable pU￿oSe 15 'th¢ adv8ncement of educatioii for tlie ben¢fit OF the publie, a5 set out in its Articles.nf AssoLiation. It does tbis through the leacliing ora diveyse ¢ui'i'iculuiii aDd by educatit]g a.broad iange of students. Its students atld poteiitial stud¢nts al'e the principal benefi¢idiie5. The Boai'd of Governors has ¢oinplied with its duly to liave diie i'egard to the Cliarity L'oTnini55ion's public benefit guidance when exercisi]Ig? any poweiB or duties lo ivliich the LTuidaiice Es relevaiit. A principle of piiblic bencfit is that benefits must be balallced a&sainst any deti'iment or harn. The Governors ¢onsidei' that none of the Ilniv¢rsity'S aciiviiies causes detrinient or harm. The Univei3ity lias a suc¢essful l)isiory aiid sliL)iig track record in tl)e reci'uitmeijt of student8 from undcr-repitsented gi'oups. The Catholi¢ social Inissioii Ot tbe University is played oiit in oui. d¢sire to einpower ii)dividuals, regardless of theii. background or roule into higher edu¢alEon, to acl)ieve their potential and reach thc highest staiidards possible. It is llnpoi'lalll to Leeds TriDity tliat &ccesS to educalioii is offer¢d in an open and affoi'dable wjy to all who may beiieFii. Widenitig acLess aiid improving p&rticipatioii to highei. cducation is actively proinoted and this is reflected in the student profile, witl) 980/0 of students coming fi'om state schools and 20V/o fi'om low participation neighboui'lioods (POLAR 2). Outreaeb Le¢ds Trinity has an excelleiit track i'ttoiyl in terms of the Cxtent and sticeess of its outreach work, with a dedicated Student Recruitment and Oiitt'eacli tean) siipporting t¢a¢hei'5, advisors and young people by raising aspirations i'egai'ding progirssion to liigher education. Notable inv¢slinent. activities and inleiventions in¢lude'. Ext¢nsive reach witb schools and colleu7¢s in West Yorkshire, with I'elationships with over 190 stitution8, together with J highly-laTgetd appi'oach to pJ'ioi'it15e schools with higli ratios of undci'_ Ippresented pupils. A 4b'llctured programme of academic HE "subject focus days" and a number of resideiitial summer sèhools. Cai'c Leavei's ar¢ offeiEd an ei)hanced package of advice and guidan¢¢ in botb the pi'e and post application piDcess and oiice theg ai'i'ivc. This includes a single Poillt of conlact. Adult learn¢r5 are also offered a dedicated package of advice aiid guidance. as well as tailored finhnci81 advice and a dedicaled 'i'ettJn) to lenrn, progranime prioi. to indu¢tion. I,eeds Ti'inity is committed to Go Higher West Yni.kshire (GHW￿, established by iwelve piDvider5 of higher cducation in West Yoi'kshire. It is also coniimitted tu the Nalional Collaboralive Outrea¢liProgram]ne (NCOP} secured by CJO Fligh¢i Wc%t Yorkshire. Go Highei. We%t Yoi'kshire's mission is to woi'k in ¢ollaboi2tion to act a5 a 5in8le point of contact for information on its HE provider partn¢rs, itnpi'oving access Éo, and a¢hi¢venient in, Higher Educalion to enhaii¢¢ individual and economic development. GHWY'S activitieg are directed through operational giDups. The Busines5 Engagejllent Planning Group lias a remit to work in partnejship to open up lii&yhor ¢duc8tion optiODS to undei'repiEsent¢d ￿￿up5, wilh a paiticular focus on employers and theii. einployees, and its partn¢￿ have worked togetherto develophighei. and degree apprenticeship8 which aim to appe81 to a wide rnnge of students, and seek to investigute the social niobility potenlial of tliis emerging area of work. 'I'hc Widening Participation Planning Group has a focus on workingF widi specifiL tai'get giDup5 which have becn identified.. looked-after young people and cyr¢ leavers. estranged students, foi'jner National Nelwoi'ks for Collaborative Outrtaeh (NNCO) schools (which do t]ot fomi part of NCOP) in HB cold-spot areas, a]id current student5 from non-iraditional backgiDunds. LEEDS TRtNITY UNIVkKSITY CHARtTABLE PURPOSE AND PUBI.IC BINEFIT Student Success Leeds Trinity is ei)minitted to enabling 811 students to reach their ￿11 pot¢n¢i#l and succeed. Our model for widening parlicipalion is ba5Ed upon the student's dccision li11¢ throug)h fi'om thitthin& applyllig, starling, pix)gressing and succeeding. Notable it)vestrnent, aetivities and interventlolls lll place to 5UPPOrt student Success include: Learniiig Suppo1* - The d¢dicated LEai'ning Hub offers peiBonalis¢d, one-to-on¢ acad¢illic skills suppoi't to all students. Ivorking clo%¢ly with acadcmic departmemts to suppoil and assist studei)ts who hav¢ b¢en idenlified by prowtss and modulc tutors as being in dangei. of witlidi'awing oi. failing. 'fh¢ Learning l.liib was comimeiided by th¢ QAA as ali area of good practice in its ittosl reLent IEview. Personal Tutors - When students eni'ol on their coiii'se, a meinber of the lectui'ing staff will becoJn¢ theii. d¢velopmeiit tutor, offering studenÉ5 pei'soiialised academic support. Students hav¢ the sani¢ dev¢loptnent tutoi. dii'ougbout the wholo of theii. progrdmine of $tudy. Resident Ment013- Experienced and tiasned sttidenis live iii all of our ha115 of rc8idence on campus as Resident Meiitors. They are available to support student8 as they make the b'ansiiion to student lif¢, they also play a ci'u¢ial role in InaintaiJiii)g the coininiinity feel that the Ilniv¢i'51ry IS ienowned foi.. Peer Learning Mentoi's (PLMs}- PLMS are level 5 and 6 students on track to Achieve a first or upper second class degree in each acadeini¢ departmeiit and offej. 5tiidents advic¢ on all aspects of acadeini¢ work through one-to-on¢ or ￿￿up sessions. Professional Work Placem¢i)Is-- Every degre¢ ¢ourse at Leed5 Trinity iiicludes two professional WOTk plac¢meMts. This hclps students to gain dekFree-Irlevant employnient experienc¢ gain contacts and tuir work opportunitics that often lead tv fuiiher pla¢en)¢iits or on-going opportuniti& EIDVtloyability Focus- The University is pY()ud of ils employability focus which includes a blend of support and guidan¢c that gives our giaduat¢s a head start in g¢tting iheir r￿St graduate joL7. lttnovalions in¢ludc'. Einployers are involved in tli¢ development of our degrees through illvolvement on appi'oyal panels and thi'ough tutor consultancy with a lange of employers. A focus on IEcruiting teaching slaff witb extensive pi'ofessional ¢xpei'ience ID relevant ar¢es. Embedded einployability skill8 and two credit-beai'iiig placeinent Inodules in all our degi'¢e courses. The oppoilllnity to undertake a final-year consultancy-slyle project with an employer. Opportunities for student8 to have dll'ect ¢onta¢t with employ¢rs thi'ougliout their degree at ev¢ntS 5llch as Pi'ofessional Development Week, lll-Leeds Days, &nployer Challenge Doys, and student-¢mployei' networking events Acces5 and Pailicipation Plan 1The University's Access and Participation Plan {APP), approved by the Otyice for Students, covers ils outrcach and student success activitics and also contains a ran¥e of fll)aneial support ai'rangeiiients intended to complement the goveiiunent's provision of loan$ and maintenallc¢ grants aDd are tarLF¢ted at those identified as being most in need. The University has a five y¢ai' APP in place for the period 2020f21 10 2024125. T]ii5 ambitiou% plan tai'g¢lg the elirnination of access and attaty)mei)t gaps and identifies cleai. pi'ioiities, with those frojn low-participation areas and BAMC ethnicities undera¢hi¢ving across the whol¢ student life¢ycl¢.. The UniveiBity auns to elimlnate the gap at every stage in the sNdent life¢ycle by the end of th¢ plan. Expenditure by ihe UniveT%ity dui'ing the year 01) its access and parii¢ipation activities is shown within the note lo the financial statements in note 24. 12 LEEDS TRtNII'Y UNIVERSI'rY DtRECTORS' REPORT Rlsk Management Tlie Accouiits Dii'ection fvoni the Office for Students requires Iliat the University einbeds I'isk niaiiageinent within tlie organi%ation.'I'he Boai'd of Govei￿OIS and its Audit Cotwnittee liave carefully ¢onsideiEd the risk manageinent process withiti the institution and are of the opiniov that this requirement lias been ii)el. The UniveiBity reviews its risks and updates its corpoi'ate I'isk register on a regularbasis. Key I'isk indicators aiid early waiiiing inechanisms ale highliglit¢d and tontrol ariangements establislied. If necessary, gction plans lo ieduce the majoi. I'isks are dcsigned and implemei)ted. The Inost gignificant i'isks air outlined in the Principal Risks and Un¢erlaiiitie5 section of the Stratcgic Report. Streamlilled Enei'gy and Corbon Repoi'ting As a company limited by guarantee, the University is covered by the governn)ent's policy Streamliiied Energy and co1.boii Reporting, whEch aiiMS to in¢rc8se awareness of eiiergy ¢osts and help to piDinpt a reduction on tlie llnpa¢i on cliin2te change. Greenhouse gas emissions and energy use data foT the period.. 2022123 2021122 Et)ergy consumption us¢4 to cal¢ula¢¢ emissions (kwh) 7.725,707 8.308,227 Energy Consumption break down (kWh} (optional).. Gas 5,901,080 6.361,048 Electricity 1,824,627 1,858,695 Transport fvel 484,240 88,484 Scope l ¢missions in metri¢ lonnes C02e'. Gas consumption 1,062 1217 Owned transport Total scope I 1,066 1218 Scop¢ 2 emissions ID metrir tot)nes C02e'. Purchased electricity 353 285 Scope 3 emi58ions in mett'ic tonnes C02e: Business travel in employee tswn¢d vehicles Total gross emissions in metric tonnes C02e 1.424 1.510 Int¢nsity ratio.. Tonnes C02e p¢r nkember of staff and students 0.24 0.28 Quantification and Reporting M¢tliodology'. We have followed the 2022 HM GoverDmen¢ EnviroDmental Reporting Guidelirtes. We have also used the GHG Reporting Protocol-Cory)orate Standard andhave used the 2022 UKGovernment's Conversion Fa¢tors for Cornpany Repofting. Please note that ¢onversion factors are lower than the previous year 13 LEEDS TRtNITY UNIVFRSITY DIRF.CTORS' REPORT Intensity measurement.. The ehoset) ii)lensity Ineasur¢ment ratio is total gross emissiot)% in metric tonnes C02e per student and staff meinber, the i'ecommended ratio forihe scetoi.. This is due to teaching and lesidencies being on ¢atnpus and as sucli part of the consumption is student related. Measui'es taken to impJx>v¢ energy efficiency: We ¢ontinu¢ to llnprove enei'gy efficiency at all opporlunities and contiTtiie to Ijmplement energy irduciion measures wher¢ practicable, sucli as LED liglitEnbF. automalic ligliting ¢oiitYols, energy efficicnt boilers, impi'oved BMS runctionality, wasle recycling, peiriissionlsensoi. laps, J'cduced flow showei. head5, sourced IOOQ/o suslainable/iYnewable electricity, installed solar PV for the electricity, installed a LHP for ¢ombined heating and powei.. Employment Policy The Uiiiv¢i'sity is cominitted to ensuring tljat its workplaces ale freè from discrimination of any kind. Rtcruitment and employmeiit decisions al'e Inade on Ilie basis of faiy and objectiv¢ ci'itei'ia. Pay and grading structui'es operate withill a national pay tlai))ewoi'k designed to support tlie recrLlitinent aiid i'efrntion of staff aiid to ensui'¢ ¢qual pay for woi'k of equal value, and equality llnpact assessinents al'e condiicted a8 appropTlPte. R¢rnuneratlon Commltlee and Poliey The aim of tli¢ remlllleiation policy is to athacl, r¢tain and contiiiue to motivat¢ talented Executives within an overall I'emuneration 5trat¢8y for the tnslitiilion tliat suppoits the achievement of the St¥ategic Plan. The Board l)as an established Reinuiieration Coiniiiiitee which comprises five independent mcmbeis of tlie Board. The VÉec-Chancelloi' and HR Director allend parts of meetings by invitation to provide adyicc to the Coimmittee and the Clei'k io the Board also allends the meetings. lixecutives aiE not it) attendance when thcir own irmuneiation is being considered. The CotThmiltee operates undei. l erins of Refei'ence agi'eed by the Board. At) annual Irport is made to the Boai'd and a readily accessible annual statein¢llt is publish¢d on the UDiversity website based on this. Staff and Student Involveinent Leeds Trinity b¢liev¢s good communication with staff and studet)ts to be very impoit2nt. There is an ¢ffective coinmunicatioii stiategy which includes staff newsletters, meetings and regular updates. Staff are encoui'aged to partlClP¢ite I￿.0Ugh forinal aDd infonnal coiisiiltations at various levels and through meinbei¥hip of foiThal committees. There is also a regulai. stafi. peiceptions sui'vey tliat is coiisEdei¢d by senior managem¢nl, governors and thc Joll)t Consultdlive CoJnniitt¢e. There ait two elected staff nieinber5 of the Board of Governor5. The Trade UnioD {Facility Time Publication Regulations) 2017 irquiir the University t(J publish infonnatioii on trade uiiion facility tiine which allows employees to act as trade union representatives. For the year to 31 Mairh 2023, 12 employees acted as Irade union representatives each spending I-50P/f* of their hours on facility tiine. The total Lost of facility time was £13,012 which was 0.04/0 of the total pay bill and no time was spent on paid trade union aetivilies. The Pirsident oflhe Students, Union is a membeT of the BoBiYi ofGovernors {which the Vi¢e President ofthe 8tudenls' Union also att¢nds as an obseiver) and tli¢ Aoademic Boai'd. Students air I'opre5ented 01) dep1( 11mental committees and their views air sought tlu'ough vai'iou.% Incaiis iiicluding student siirveys and at Icast one annyol student forum. The delibei'ative sti'uctUlE5 alloiv for both acadcmic 2nd 5UPPOI't staff and for 8tudet)ts to bc represented thi'nllghollt. Equal Opportunitie5 The Univ¢i'sity is an equal opportunities organisation and is toinmitted to fjn environtnent that is free from any f(wm of discrllninatÈon on the gi'ounds of colour, raee, ethni¢ity. religion. gender, sexual orientation or disability. The Univeisity operates an Equal Oppoi'ttiiiities Policy and is cominittcd to equal opporthnities for both slaff and student& ensurkng that all individuals are treated with I'espc¢t at all tiines and Are given equality of npportunity in all a¢tivilies. The policy of the University is tliat applications from disabled persons should receive equal consideration for posts for which tliey air 5Uitable applicants. Where an ¢xisting employee becoines disabl¢d they will be reluined in 14 LEEDS TRtNITY UNIVERSITY DIRECTORS. RE,PORT employinent wliei'evei. reasonably possible and will be given help with any necessary rehabilitation and training. Disabled employees are provided with the same oppoiluniiies as otliei. einployees. Strategi¢ Report Fu11hci' informatiort on the Univei'sity and lis acuvities cali b¢ fouDd in tlie Sh?le8ic Report, including its sti'atcgy and pi'ogress against th¢ strfttegy, its opeiatin¥ ellvirown￿t and prillcipal risks, likely tuture plans and developTMents and significant reseairh and developmeiit activilies. Golng Concern Considcration of going concern is tontained within the Going Concern section ot'the Sbztegic Report. As a result of that consid¢ration. the Board of Govei'noi's considei's that tbe Univ¢rsity lias adeqiiate rewiii'ces to continue in operational ¢xistence for the foirseeable fiituiE (to the elld of the 2024125 financial year). Accordingly, it continues lo adop¢ the gning coi)cern basis in preparing the AniTrual Report and ￿l￿ancial Slaleinents. ConelusTOII The tiovernoi's believe that the University has a sgund base from which to meet the likely challenges thai will fac¢ thc higher cducaiion secÉoi' ovei. the shoit to inediuin term. llie Govei'nors al'e confjdent that the Ui)iYei%iry, Ihi'ougli sustainable investment in the fuiure and v¢iy Lar¢ful Inanagemenl of the risks, has the necessaiy plat)$ and strat¢gies in pl8e¢ to help ensuie that the tai'¥ets set fvr the eoining years can be achieved. Direetors The Director8 who sei'ved in ¢h¢ period 4nd up to tlie date of appi'oval of the financial stateinents are set out on page l of th¢ge financial statem¢nts. Attendance Jt Board and cominittce meetings during 2022-23 was 810/0 of p05sibl¢ attendan¢e. Dlselosure of Informatlon to Auditoi's Each nf the persons who is 8 dir¢ctor at th¢ date of approval of this ¥eport confirms that.. so far as the director is aw8r¢,'there is no I'elevani audit infoi'ination of which the Cojnpany's auditor is unaware,. and the diiECtor has taken all the steps that helshe ought to have taken as a dire¢¢or in ordei. to make hiiiiselfflierself awaro of any relevant audit ihfornifytion and to establish that the com￿nY,5 auditor is awar¢ ol. tl)at infoi'mation. This ¢onfll'matlOll IS given and should be interpirted in accordance with the provision of s418 of the Compallie5 Act 2006. Approval ct Report has been approved by the Board aiid is signed below on its behalf. vin oNior On bchxlf uf the Board of Govemors and Board of Directors 29 November 2023 LEBDS TRiNITY UNIVF.RSITY CORPORATE GOVERNANCF. Rcsportsibilitles of the Board ofGovernoi's In accoidance with the Articles of Associatiott, the Board of Governors ofLeeds Trinity University is responsible for th¢ adm￿nIstratiOn and manageinent of the affallB of the University and is req￿ired to pi'esent aiiditcd financial st3t¢in¢nls for each fin8ncial year. Thc Boai'd of Governor8 is also i'esponsible foi. preparing tlie Shal¢gi¢ Report and Dllfctors. Report. The Boai'd of Governoys is re8ponsible for keeping èdeqiiate accounting records that aY¢ su￿]c1cnI to sliow aiid expl4in the University's knxnsaclions and disclose with ieasonable accuiacy at any lime, the f￿￿￿¢1￿1 posilioii of the University and io eiiable it to ensure that the financial.stat¢ments al'e prepared in accordance ivith Ilie Office fuj. Sttidei)ts (Ufs) TeiTrs ond Condilions of fllndit)g for Highei. Education Institution5. the StatenieTrt of ReLOlI)Inellded Practice on Accounting for Fui'ther and Highei. Education Institutions, the Ofs Accoui)Is Dll'e¢lion, Uiiited Kijigdom (iellerally Accepted Accounting PTactice (United lnated otTicei' and. in that capacity, can be summoned to appear before the Public Accounts Cumimitte¢ of the Hotjse of Commons. Tlie Vice-chancellor makes reporis to Board of Goveniors meeting8 on developmollts iti th¢ high¢r education sector and tlieir potential itnpact on Leeds Trinity Univ￿'siLy. The Clerk to the Board The Clerk to thc Board and Company Secretaiy is appointed by the Boai'd of Goveillors under the ￿lI¢JeS of Association to act as Clerk to the Board and its coinmittees. All Govei'noi's have access to thc advice and servic¢s of the Clei'k to the Govcrnors and Thay s¢¢k ind¢pendeni advice if they wish. SoiMe company se¢relarial woi.k is undeilaken for the Diifctors by an extei'nal firm. 18 LEEDS TRINITY UNIVERSITY CORPORATk GOVERNANC 'rhe Structui'e of Govemance Leeds Ti'lllity Univ¢i'sity endeavoiii's to conduct its busincss in accordartct with the seven principles idcntified by the Coinn)iltee on Standai'ds in Public Life and with best practice derived from advice froin the Committc¢ of Univei'sity Cliairs (CUC) and froni th¢ corporate sector. The UnEvei'sity coinplies in all material respects Wilh the CUC GoYernan¢e C'ode of Piactice. The exception to this 15 the role of the Chaii., which is ex-officio I'athcr than appointed by tlie goveiming body fi'om ainongst its independent members. However as noted above, 11)e Arti¢les of Associalio contain provision, at the discretion of the ex-officio Chaiy, foi. anoth¢i' member to act a8 noininttted Cbair of the BoaTd, subj¢ct to tlie agrceinent of the Board, and thi$ 41i'angement has becn in operation %ince inLui'poraiion 2007. The Boai'd has in place a Statement of Pi'imary Responsibilities. The University mailltaiiis and publishes on the website a liegi5tei' of Interests of Inembers of the Boai'd 8nd senior officers which is updat¢d annually and wlienev¢r new intei'ests occur. 'rhe Articles of Association do not permit the Board of Govemors to delegate ai)y inattei. relatkng to: The determlll¢ition of Éhe ¢du¢atioiial and Catholic cbai'acler and objects of the Univorsity; The Appi'oval of amiual ¢$tiinates of income and expeiiditure; Ensuring the solv¢ncy of the UniveJ7ity, and ¢rtsui'ing the safeguarding of it5 assets. The appoilltinerit of senior post-holders, including the Vice-chancellor; and The ten))in8tion ofibe inernbership of aiiy Goveilloy. The Board receives regular reports frotn th¢ Vi¢¢-Chancelloi' and other benior offi¢¢r5 on the woik of the Univ¢i'sity. In line with good practice and CUC guidan¢e, the Board coiiducts rigoi'ous ¥¢vi¢ws of its efftcliveness, of the effe¢riveness of the Univeisity's strii¢tui'e ofcoi'poi'ate and acaden]ic gov¢riianc¢, and of the pei'foniiaiice ot the Cl)aiY and membei's. The effectiveness IEvieivs include ihe use of ind¢p¢ndent external expertise. Tl)e most recent Such i'eview look place in 2023 and is published on the Uiiiversily website. Tho Boai'd of Gnvemors meets six tin)es each year wlth typi¢ally an away day Iiieeting to ¢on5ider strategy and goyemoi. developm¢nt mattets. The Boai'd has established ¢omn)itte¢s ¢0 suppoit its woyk. All of these con)n)ittees are foi'mally eonstitllted with terms of I'efeien¢e and th)embership appi'oved by the BoaiKi.'lkn¢irmeinbership compris¢9 iiidepondcnt inembers of the Board and in some cas¢s staff and student menibeis. Soine ¢oininiltees also have c opted ci)mrnittee n)embers from outside the Bolll'd tu further slrengihen the wokk of the ¢(ImElliltees and to support effective succession plannll)g for Boai'd membership, Tlie stAndit)g com￿ltteeS are: Academic Assiirancc and Student Expcrience Cominittee Audit Committee Finanee 2nd Resources Committee Govei'uaDc¢ and Nominations Committee Remunei'ation Committ¢e All of these eommittees, togethei. witli the Acadejnic Board, i'epoi't and make I'ecoJnm¢ndations to the Board of Govei'nors. ¢ithei' in the fLJrm ora written r¢poi'l or Iheii. appi'oved minutes. Statement of Prlm41'y Responsibilities The Board of Governois adoptg the following Statement of Pi'ittiary Respoosibililies, which are based upon the Memorandum ai)d Articles af Association and recomillended good pracli¢e. This slaieinenl is based 01) tlie Model Statement contained in the Ciovci'nance Code of Piactice published by ihe Con?Initt¢¢ of University Cbaii's, adapted to reflect the powei's and respoiisibilitieg that the Board of Governors of Le¢ds Triiiity Unive13ity has tlsat dei'iyes from the University Statutes. The Board of Governois is the g5ov¢rnin¥ body of the University. The Board of Gov¢rnoJ% has ultijiiate respotssibility for the affairs of the University. 1115 restx)nsible foi. reviewing the work of the UAJiv¢rsity and tfjking such steps as it 19 LEEDS TRtNITY UNtVERSITY CORPORATE GOVERNANCE thinks pi'opei. for the purpose of advancing Ilie interests of ilie Univei'sity, iiiaintaining ils efficiency, encouraging teachÉiig, the pursuit of learniDg and I'esurcb and pi'oviding (oi. the i'ecreatioii aiid wellbeing of stud¢t)ts. Consisteni with the Univei'sity's consliiu¢ion, the pi'i]nary responsibilities of the Boai'd of Goveimors are.. a) The d¢termination of the educational and Catholic character and objectives of Leeds 'l'rillity and fo* the supei'visioii of its activities. This is achieved by the approval of the University's Inission, valu¢$ and vision as payt of the appyoval and ongoing monitoi'ing of the strategic plan. b) To appi'ove the Jnissioii aDd strategic vision of the institution, long-tenn acadeinic and busii)ess plans and key peiformance indicators, at)d to n)onitor these on an ongoing basis io ei)sure that Ih¢se meet the interests of 51Mkeholdei's' cl To delegate authority to the heud (If the institt]titsi) as Chief Executive foy the aLademic, corpoi'ate, financial. estate and p¢i'sonnel maiiagement of tlie i11stitulion. Ai)d to establish aiid keep undei. iegular revicw the policies, proc¢dur¢5 and limils within such Inanageinei)t functions as shall b¢ undertaken by and und¢r (he authoi'ity of the head of the institution; d) To ensure tlie establishment and monitoring of systems of conts'ol and aecouniability, includsng financial and opeiztional controls and risk asse8$mei)t, and procedures foi. handling internal ￿l¢VanCeS alld Eoi. Inanaging conflicts of interesi; e) To ¢n511re that processes ar¢ in place to monitor and evaluate the p¢i'fomance and effectiveness of the institution 8gainst the plans and appr(>ved key perforiiianc¢ indicatoi's, which should be- wlieiE possible and appropi'idte- benclllnai'ked agai]ist other eomparable instih]tions,' To establish processes tts monitor and evaluate the performance and effectiveness of the 8overnii)g body itself; g) To conduct its business ￿1] accordance with best practi¢e in higher education ¢orporal¢ govemance and wilh the principles of public lif¢ di'awn up by the Comn)ilt¢e on Standdrds in Publi¢ Life., bl To safeguard tlie good naine and values of the i11sti￿tIOn. i) To apptsint the head of tbe institution a5 Vi¢e-Cbancellor and Cilief Ex¢culiYe, and to put ID plac¢ suitable ariBngein¢nts for Jnoiiitoring lierlhis perfoijiiance. j) To appoillt a sc¢ret8ry 10 the governing body and io ensure that, if the p¢i'son appointed has inanagerial responsibilities in the institutioii, tbei'e is an appi'opri#te sepai'ation iii the lines of accountability- k) To ensure that appropriate systems in place with regai'ds to the employnlent of staff. l) To b¢ the principal financial ai)d business authority of die inslitutiot), to ensure that pi'oper books of account ar¢ k¢pl, to approve tlie aiijiiial biidget attd fu)ancial statement5, pnd to have overall respon5ibiliry for the institution's assers, property and eslal¢,' m) To ensure that appropriate systems air place for meetiiig all the institution's legal obligptions,. n) To make such provision as it thinks fit for the genei'al wellaiE nf students, in consultation with Ihe academic board., o) To act as ts'uslee for any property, legacy, endowment, bequest oi. gift in siipport of the work and welfare of the in.%litution' and p) To ensure that the institution's constitution 15 followed at all titnes and that appi'opriate adviec is available to enable this to happen. This Statement shall be published widely, includillg on the intei'net and in the annual irport, along with identification of key individuals (that is, Chair, Vice Chaiy, Scnioi. Independent Governoi., Vice-chancelloi., and Cliaii% of all committees). The desci'iption of the I'esponsibilities that the governing body delegates tv the Vice-chancellor is tbat outlined in Article 14 ofthe Articles of A550¢iation. 20 ## **Independent auditor's report to the governing body members of Leeds Trinity University** ## **Opinion** We have audited the financial statements of Leeds Trinity University (the 'University') for the year ended 31 July 2023, which comprise Statement of Comprehensive Income and Expenditure, Statement of Changes in Reserves, Balance sheet, Cash flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice). - In our opinion, the financial statements: - give a true and fair view of the state of the University's affairs as at 31 July 2023 and of its surplus, income and expenditure, gains and losses, changes in reserves and cash flows for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the ‘Auditor’s responsibilities for the audit of the financial statements’ section of our report. We are independent of the University in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** We are responsible for concluding on the appropriateness of the governing body member’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the University’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the University to cease to continue as a going concern. In our evaluation of the governing body member’s conclusions, we considered the inherent risks associated with the University’s business model including effects arising from macro-economic uncertainties such as Brexit, Covid -19 and cost of living crisis, we assessed and challenged the reasonableness of estimates made by the governing body members and the related disclosures and analysed how those risks might affect the University’s financial resources or ability to continue operations over the going concern period. In auditing the financial statements, we have concluded that the governing body member’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the University’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the governing body members with respect to going concern are described in the relevant sections of this report. ## **Other information** The other information comprises the information included in the annual report **,** other than the financial statements and our auditor’s report thereon. The governing body member’s are responsible for the other information contained within the annual report **Error! Bookmark not defined.** . Our opinion on the financial statements does not cover the other information a nd, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially 21 misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the strategic report and the directors report, prepared for the purposes of company law, included in the annual report for the financial year for which the financial statements are prepared, is consistent with the financial statements; and - the strategic report and the directors’ report included in the annual report have been prepared in accordance with applicable legal requirements. ## **Matter on which we are required to report under the Companies Act 2006** In the light of the knowledge and understanding of the University and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included in the annual report **.** **Opinion on other matters prescribed by the Office for Students (‘OfS’) Accounts direction (issued October 2019) (the ‘OfS Accounts direction’)** In our opinion, in all material respects: - funds from whatever source administered by the University for specific purposes have been properly applied to those purposes and managed in accordance with the relevant legislation; - funds provided by the OfS, UK Research and Innovation (including Research England), the Education & Skills Funding Agency and the Department for Education have been applied in accordance with relevant terms and conditions; and - the requirements of the OfS Accounts direction have been met. ## **Matters 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 Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of the governing body member's remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. We have nothing to report in respect of the following matters where the OfS Accounts direction requires us to report to you where: - the University’s grant and fee income, as disclosed in the note to the accounts, has been materially misstated; or - the University’s expenditure on access and participation activities for the financial year has been materially misstated. ## **Responsibilities of governing body members** As explained more fully in the Statement of responsibilities of the governing body members set out on page 16, the governing body members (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the governing body members determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the governing body members are responsible for assessing the University’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern 22 basis of accounting unless the governing body members either intends to liquidate the University or to cease operations, or has no realistic alternative but to do so. ## **Auditor’s responsibilities for the audit of the financial statements** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below: - We obtained an understanding of the legal and regulatory frameworks that are applicable to the university, and the sector in which it operates. We determined that the following laws and regulations were most significant; - financial reporting legislation (FEHE SORP 2019, United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 and the OfS Accounts Direction (October 2019)); - regulatory environment (including the OfS framework and relevant OfS regulatory notices); - legal framework (Companies Act 2006); and - the Higher Education Code of Governance published by the CUC. The engagement team remained alert to any indications of fraud and non-compliance with laws and regulations throughout the audit; - We understood how the University is complying with these legal and regulatory frameworks by making inquiries of management, internal audit, and those charged with governance. We enquired of management and those charged with governance whether there were any instances of non-compliance with laws and regulations, or whether they had any knowledge of actual or suspected fraud. We corroborated the results of our enquiries through our review of board minutes and papers provided to the Audit Committee, and through our legal and professional expenses review; - To assess the potential risks of material misstatement, including how a fraud might occur, we obtained an understanding of: - The University’s operations, including the nature of its sources of income, expected financial statement disclosures and risks that may result in risk of material misstatement; and - The University’s control environment including the adequacy of procedures for authorisation of transactions - We assessed the susceptibility of the University’s financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included: - Evaluating the processes and controls established to address the risks related to irregularities and fraud; - Testing manual journal entries, in particular journal entries relating to management estimates and entries determined to be large or relating to unusual transactions; - Challenging assumptions and judgements made by management in its significant accounting estimates; - Identifying and testing related party transactions; and - Completion of audit procedures to conclude on the compliance of disclosures in the financial statements with applicable financial reporting requirements. - These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not 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 concealment, forgery or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it; 23 - We assessed the appropriateness of the collective competence and capabilities of the engagement team, including consideration of the engagement team's knowledge and understanding of the industry in which the university operates in, its understanding of, and practical experience with audit engagements of a similar nature and complexity through appropriate training and participation; and - We communicated relevant laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud, or non-compliance with laws and regulations throughout the audit. From the procedures performed we did not identify any material matters relating to non-compliance with laws and regulations or matters in relation to fraud. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. ## **Use of our report** This report is made solely to the University's governing body members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the University's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the University and the University's members as a body, for our audit work, for this report, or for the opinions we have formed. William Devitt Senior Statutory Auditor for and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants Leeds 14.12.2023 24 LF,ED% TRITrIITY UNIVERSITY STA TEMENT OF PRtNCIPAL ACCOUNTING POLICIES Foi. the yeai. cnded 31 July 20223 BASIS of preparatlon Tliese financial statements hav¢ been yrepared in accoidance with both the Statement of RecoiMTnended Prdctice ISORP).. Accounting for Furthei. and Higher Education published in October 2018 and in accoi'dance with applicable United Kin¥dom laws and AccL¥untllig Siandai'ds. 'nie fiiiancial stateThents are prepared in accordance with the historical cost conv¢iition. as Inodified by the r¢valuation of ceitoin land and buildings foi. which a ¢ost is not rcadily asceilainable. The fii)ancial stateinet)ts have been prepared on the going concei'i) basis. The financial stateinellts are presented ill sterling (£1. Tlie prithcipal acCount￿n8 policies are siiii)Inarised b¢low. They have been applied consistently throll￿OUt tlie ¢ui'lEI)t and pi'ior years. Gulng con¢er The Univei'sily's activities. Iijgeiliei. witli the uncertainties arisiiig and 11)e factOY8 likely to affect its luture dcyelopnienls, pei'foi'iiiance and Posiiion air set oiit in tlie Operating Envii'onineni. Principal Risks and Unceriainiies. and Plan for Futur¢ Pei'iods sections. The fiiian¢ial posiiion of the Univeisity is described i the Finaihcial Ov¢rview and Finaiicial SustaÈll8bility section5 and in moi'¢ detail withio the fu)ancial 5taÉcm¢nis ai)d a¢¢oinpanying note5. The Boai'd believes that tl)e University is well placed to manage its risks su¢¢essfully, wilh a sh'ong pei'foiinaiice base in 22123 and a robust liquidity position as at 31 July 2023 equal to 241 liquidily days. Th¢ undeiE13duaie reci'iiiltnent outlook i'ejnains healthy, fi'aiichise partnei's contitiue to gi'ow sttident nuinbeiB and the deinand for resid¢nti21 #ccominodation reiNai115 high. Consideration has been given to Ibe pot¢ntial foi. interivptions to ii)coine streams in temis of the sti'ess lesting of extrem¢ and l)ighly uiilikely sceDai'ios. Tiles¢ cover rediiced IE¢ruitment, i)I'ogression atjd resideiitia occupancy; chaiiges to the fee and funding envi¥oniiient,' tjnd from other dernaiids vn (he UiiiveTSity's ¢a5h reserve& including coininiin)enls on it5 511'ategi¢ growtl) inveshn¢nES. The stt'e5s lesling shows that the Univei'sity would continue to have sufficient cash headroom thiDughout the pei'iod and would i'Emain in a positive net cash Idebt POSltion indicatlllg the coEJtinuii)g ability to service loan obli&Faiions fi'oin casli in hand. The cu]r¢nt foi'ecasts and piDjectiotls, ineliiding I'easonable downside sensitivities, and the str()ng liqiiidity position, demonstrate th¢ expectation tliat the Univ¢rsity will be abl¢ to opei'ate wiihin ils current facilities and available headrooin and Inainlain coD)pliat)ce with covenants and cash requu'emei)ts The Boaid of Governors ¢ODsiders that the Univei'sity has adequate resources to contiiiue in operational existence for the foi'eseeabl¢ tutuiy (to the end of thc 2024125 financial year). Accordinbily? it continues to adopt the going concern basis in prepw'iiig the Annual Reptsrt and Finartcial Stateinents. Rasts of consolidylion The fmancial stat¢menLs do nol include those of Leeds Trinity Students, Union as it is a separate organisation ovei. which the University does not have control or significant infiuence. The Univei'sity l)olds a £ I gvai'antee in Irspeet of Yoi'kshii'o Ui)ive13ities, a ¢oJnpally 1s]nited by guarantee. As the University does not have contiDI signifi¢ant influenc¢ and hold5 less than IOO/o of the total gua]aiitee the irsults hav¬ been included in the8c financial statements. Recognitlon of ineorne Funding Couttcil block grants are account¢d for in the perEod to which they i'elate. Fee incom¢ is ci'edited to the staiement of ¢omprebensive income and ¢xpenditurc ov¢r the period in which students are stlldying. Fce iiicojne includes the fee per student receivable fvoin it% frallchise partnei's wliicli is accounted for on an agency basi5. Fee i'emissions are deducted froih income. Bursaries and s¢liolaiship$ are accounted foi. as ¢xpendiiure and not deducted fi'oill iiicome. Reciii'retjt income fi'ojn grants, contr8et% and other services rendei'ed ar¢ accoullt¢d for on an aceruals basls and included to the extent of the completion of the ¢nntract or service ¢on¢emed' any payinents i'eceivcd in advanc£ of such performxnee are recognised oil the balanee sheet as liabilities. Non excbange transactions without perfotinance related conditions are dondtions and endowments. Donations and endowinents witli donor.imposed restrictions are IEttsgnised in income ivhen the Univei'sity is entitled to the funds. Income is Yetained within the rcsii'icted reserve until such time tliat il is ulilised in line with such i'esli'i¢tions at wliicli point the income is r¢leAsed to general reserves through a resei've Ii'an5fer. Donations with no IEstri¢tions are ￿CUgn1Sed in llilome wheii the University 1.8 entitled to the fiinds. 25 LF.bD8"I'RtNJTY UNIVERSITY STATP.MENT OF PRtNCIPAL ACCOUNTING POLICIES or the year ended 31 July 2023 Reeognitlon of intome (coiitinued) Non-rccurrent graiits from the Office foi. Sludeiits, the Depaytrnent for FJu¢8tion or oih¢r bodies T¢eeived i i'espect of the acquisition or ¢vnstl'Ltctioii of fixed assets al'e hEated as def¢ri'ed capital graiits. Such grants al'e ci'¢dTrted to defcrred capityl grants and an anniial tt'ansfer madc to tlie incon]e aDd expenditure account ovei. the usefi]I CLonoinic life of the 855et, at th¢ same rate as thc depi'¢ciation chai¥e on tlie ass¢t for which tlie grant was awarded. Income from the 5&1e of goods or sei'vices is cirdited to th¢ iiicome and oxpenditure RcLoiiDt when the go¢￿$ oy services are supplied to the external customers oi tl)e temis of ihe contract have been satl51ied. Ageiicy arringements Funds the lJniversity receives and disbui'5¢5 as paytng agent on behalf of a funding body al'e excluded from the income and expendiiure of ihe Universkty ivhere the lJniversity is exposed to Ininin)al i'isk oi. enjoys minimal ecoiioinic bcnefit related lo the transactioii. The Univei%ity's ai'raii¥ements with fi'anchise partne15 ale accounted for as agency w'rangei)ients ivÉth the incoine rccagnised being rlie fees due fi'om the francliise partncr, on the basis thai th¢ franchise parlncr irtains the i'isks aNd rewai'ds of the 5tud¢ttl incom¢. The income is Ircognised with fee incoine as inelltion¢d above. Accoiinting for retlrem¢nt benefits The University ¢onrributes to the Teachers, Pei)sion %cheine (TPS) for academic staff (lecturing staff and holdei's of SOE)ie senioi. posts) and io the Local Governinent Pension Sch¢me administered by the West YorkshiKe Pension Fund (WYPF) for other stalf. Both scheines are defined benefit schemes. The TPS is a inulti employei. scheme and it is nol po88ible to identify the asser9 of ili¢ scheme whi¢h arc attribulablc to the Univetsity. accoi'dance with FRSI 02. Ihi5 s¢heine is accounted for 011 9 dofined contributioll b8sis and ¢untributions to the scheme arc included as expenditu￿ in the period in whicli tliey are payable. ror WYPF thc Univei'sity is able to identify its share of assets and liabilities and tliu5 the University fully adopts the re¢()gnition ar)d disclosure I'equiirmenls of fRSI 02"Retii'¢inent B¢iJefits" For WYPF the cost of prgviding benefits is determined iising the piDjectsd tsnit Inethod, with a¢tuarial valuations beEng cari'ied oiit at ea¢h Balance SIIEet date. Actuarial gains and losses are re¢ogiii5ed in in the period in which they occui.. Tliey ar¢ iecogniscd iii rhe Statement of Coinpr¢hensive Incom¢ and Expenditui'e. In accordance witli FRS102 any surplus on the scheint is I'estri¢ted to nil. Past servicc cost is recognised iminediately to the extent that tl)e benefits are aiready vest¢d, and otherwise is aniortised on a straight-lin¢ basis ov¢i' the aveJ7ge p￿.}0d until the benefiis becoine vested. 'the pensions deficit I surplus recogynised lll the Balance Sheet represents the pi'esent value of the defined b¢llefit obligation adjusted foi. unrecoL7nised past service ¢o%t, and tlie pensioii asset repi'esenls the fail. Yaliie of the scheme assets. and buildliigs Land ai)d buildings are s¢oted at valuation or ¢ost,' the basl5 of valuation is depreciated r¢pla¢¢ment cost. Valuations ai'¢ can'ied out by independent CharteiEd Sui'yeyors. On adoption gf FRS15. th¢ Institution followed the transitional provision to irtain the book value of land and buildin¥s, which were valued on 31 July 1995 by Geiald Eve, Charter¢d Surveyoi'5, but not to adopt a policy of irvaluations of these properties ii) the future. On transition to FRS102, thes¢ values weTe retaincd and the policy continued of non.r¢valuation of these properties. Costs incuryed in relation to a tangible fixed asset, after its initial pur¢hase oi. production, 21'e capitali￿d to the extent that they incrcase the expected future benefit% to tlie institilfion froni the existinbj tangysble fixed asset beyond its pIEvioiisly assessed slandard of performance. rhe cost of any su¢h enhan¢¢meDts are added to tlie ￿￿sS carrying amoLint of thotan&>ible fixed asset concerned. FIE¢hold land is not depr¢cik)ted. Frechold buildings al'e depreciated ovei. their¢xpected useflll life of 50 yeai's and extensi0tt5 to buildings ov¢i' 20-30 years on the amount at which the tangible fixed asset is included in the balaD¢e sheet. l)epreciation is on a sti'alght line basi$. Wheir an asset is held at valuation, a tran5fei' is made aniiually from the revaluation reseive to the incom¢ and expeiiditure r¢serve for an amount equal to the addiiional depreciation arising from the I'evalued asset. Where buildings aiE acqullEd with the aid of specific'giants they ar¢ capitali5ed and depreciatcd. The related grants ai'c citdited to a deterred capital grant account and releas¢d to the in¢ome and expenditure ae¢ount ovei. the eA￿Cted useful econolljic life of the buildings on a basis consistent with the d¢pre¢iatitsn policy. 26 LEEDS TRINITY UNIVERSITY STATEMENT OF PRtNCtPAL ACCOUNTING POLICIES Foi. the yeai. ended 31 July 2023 CquipD]eNt, thriiltllrc, vehicle5, fixlthres and fittings Equipinent, Encluding coinputei%, 50ftwar¢ aiid furniture costing less tban £5,000 pel. individual item or .of I'elated itcrns is written off to the income and expellditui'¢ account in tlie year of aqiii5ition. All other tangible assets aiy tapitalised at cost. All assets are depreciated on a straiglit line basis over their useful econoinic life as follows.. Equipment, furniture and fittings 3-10 yeai's Motoi. vehicles 4-6 years Assets linder construetion al'e not depreciated until completed and brought into use. Wheir ¢quipment has been a¢quired with the aid of specific gwranls, it 15 capitalised and d¢preciated in accordance with the policy sel out above, with the itlaled gi?nt credited to a defeii'ed capital graiit acci)unt and releascd to the incom¢ and expendiluiy aclounl over the expected llsefiil economic life of The rclated equipment. Cash ond efish equivalevts I Investments Cash iiicludes ¢a5h iii hand, cash at bank, deposits repayabl¢ oil demand and overdraft5. Deposits are repayable on deinai)d if they are availabl¢ within 24 hours ivithoul penalty. No otlier investments, however liquid, are ill¢luded as cash. Term deposits lield as easli but not available within 24 hou13 without penalty air showii as iiivesttnent%. Other cuiyent asset illvostments, which may in¢lud¢ lisied investtne])Is, air showi) ai the low¢r of cost and net i'e&lisablc value. io. Stock Stock repirs¢nts goods held for IEsale and is slated at the lower of pur¢hase cost and nel Italisable value a5 valu¢d by on independent stock-takeT aJ)d is measiired using avei'age cost forinula. ii. Oper%ttTnE Le&5es Costs in i'espect of operating lease8 are charged on a straight line basis over tlie period of the l¢ase tei'm. Taxation statu5 The University is iEgi5tei'ed under the Chariti¢s Act 201 l and as 5u¢h is a ¢harity within the meanit)g of section 50611) of the Incon)e and Corporation T8x¢s Act 1988 (ICTA 1988). Aecordingly, th¢ University is putentially exeinpt tibin taxation in I'ospect of income or capital gains r¢¢¢ived within categ¥ories covei'ed by section 505 of ICTA 1988 or section 256 of the Taxation of Chai'geablc Gains Act 1992, to the exteiit that such income or gain5 ar¢ applied to exclusively ¢hAritable purpo￿5. Th¢ University iEceives iio siiiiilar exemption in rospect of Value Added Tax. Ii'iEcoverable VAT on inputs is incliided in the costs of such inputs. Any ii'rccoverable VAT allocated to tangibl¢ r￿ed asset$ is included their cost. 12. 13. Flnanelal liistrllments Financi81 assets and fmaD¢ial liabilities recognised when the Univei'sity b￿orneS a party to the contractual provisions of the insti'uinent. Financial liabilities and equity instt'uments are ¢lassified according io the siibstance of the conti'actual ai'jxngements entei'ed into. An equity instiunient is any ¢onhBcl that evidences a residual interest in Ilie assets of the Company aftej. deducting all of its liabilities. All financial assets and liabilities are initially Ineasuird at tsansaction pri¢e (inelLiding transaction ¢051s), ¢xcept for those flnancial assels classified as at fail. value through prof5t oi. loss, which are initially measured at fail. valuc {which is orn]ally the traiisaction pi'ice excluding transaction costs}. Fit)ancial a&sets and liabilities are only olyset in. th¢ stalement of [￿anCIal position when, and only when th¢iE exists a legally enforceable light to set off the I'e¢ogiiised amounts and tli¢ Coinp8ny intends either to settle on a net basis, or to Iralise the a55et and settle the liability simultaneously. Debt instrujnettts thai have no slated interest i?te land do not constittite financing transactioll) and are classified 8$ payable oi. i'eceivable withiti one year are initially m¢asui'ed at an undiscounted amount (Ff ilie cash oi. otli¢r consideration eXP￿ted to be paid or Irceived, net of impairment. Other debt insti'uments not meetitiLJ condiliolls of being 'basic' f￿anCial instruments are measured at fair value through profit or loss. Comiiiitments to make and receive loan5 which nieet the condition.% inentioned above are measuiEd at cost (which may be nil) less impairjnent. 27 I.EEDS TRtNITY UNIVERSITY STA TEMENT OF PRINCIPAL ACCOUNTING POLICIES For the year cnded 31 July 2023 FinMnci&l assets air derecognised wb¢n and only when a) tli¢ coJ)tractual i'iglits to tlie cash flows fiDin the financial asset exi)irc or are settled, b) the Company Ii'ansfei's lo anotlier paity substantially all of the ri%ks attd rewards of owii¢r511ip of tlie fuian¢ial asser. oi. c) Ilie Coi)Ipaiiy, despite hav5118 I'etained soinc, hut not all, Sig￿lfiCant ri4ks aiid rewai'ds of own¢i'sknip, has ti'ansfe¥red coiiti'ol of the asset to anotheT wty. Finaiicial liabilities are derecognised only when the obligation specified in the contt'act is dis¢hJiEcd, cancclled or expires. 14. Provlslons Provi%ions are recognised it] the rtnancial statements when the University has a pre%ent legal oi. constt'uctive obligation as a result of a past event. it is probabl¢ tlial a transfer of econoinic benefjt will be irquiied to settle the obligation and a reliable esliinaie cali be made ol'ihe amount of obligation. Cash tlows and Ilquid re50ur¢es Cash flow5 compi'ise increases oi. decreases in cash. Cash iticludes cash in hand, casli at bank, dep051ts repayable on deinand and overdi'afts. Deposits al'e I'ep3yable ott deinaDd if tliey al'e availablc within 24 htsurs withouE penalty. No orher investments, bowevei. liquid, dre inLluded as cash. Liquid resoiirces compi'ise assets held a5 Iradily disposable store of value. They iiiclude lenn deposits, govei'nJiient.8cciii'ities and loan stock h¢ld as I￿rt of the un￿Vc1.sl1Y'S ti'easury mandget))ent dclivities. They exclude any 511ch asset% held a5 endowrneni asset inveshn¢iitS. 15. 16. Aeeounling for chorltable donations C'haritable donations are i¢cognised in tlie F￿￿￿¢1￿1 statements wli¢n the cbaritable donation ha5 been rec¢ivtd oi. if. befoie Ircetpt, there is sufficient evidence to provide th¢ necessary certainty that the donation will be received aiid the value of the incominui resuuires cai) be Jneasllred with suffjcieiit reliability. Where ehfti'itable donation% air to be retained for the benefit of the Uiiivei'sily ¢iS specifJ¢d by the donoi's, thesc are account¢d for as endowinei)ts. The UiiiY¢rsily's endo)winents are i'e5tl'lLted expendable endowmcnts - the donor has specified a particular objective oiher than the purchas¢ or consiruction ot'taiigible fixed assets, and the Univeisity eonveit the donated sum into incoii)e. 17. Signifi£8nt kceounting estimates 2nd Judgcments Preparation of the financial stateinents r¢qiiwes Inanageineiit tu make sigllifi¢aot estimates aiid judgen)ents. Estimates and judgements are colltinually ¢valuated and are based oJTr historical ¢xpei'hence and otl)er factois, including ¢xpetiations of futuie ev¢nts that aye believed to be reasonable under the CircU￿stanCes. 'fii¢ estimates and judgeimeiiis that have a sigiiificani risk of causing d material adjust]nent to the carrying amouDt5 of assets and liobiliti¢s within the next financial year are addi'¢ssed below. a. EStli￿at¢S in pen.%ion costs The University has obligations to pay pension ben¢fits to certain employees who members of the West Yorkshire Pension fund (wypr), a schcme account¢d for as a defined benefit plan. The cf)st of these benefits and the present Yalue of tlie abligalion depend a numbei. of factors including.. life expeLlan¢y, salary increases, assct valuations, th¢ duration of liabilities and the discount rat¢ on corporale bot]ds. Management estiinales these factors, using external pi'ofe55ional adviLe, in determilling the net pellsion obligation in the balance Sheet. The assumptions i'eflect historical experiEnce and euri'eni trends. Estin)ale5 ai'ising fi'om the impact of reccnt COUTt cases on the pensioii liabilities are discllssed in note 20. b. Judg¢ment5 in ageDCy arrangem¢Mt% The Ut)ivei'sity has judg¢d that its ai'iangenients with franchise partn¢r5 should be accounted Coi. as agency a￿a￿b￿CmentS after consideration of the agent I pYincipt]I lest. with the IJniVe￿lty receiving a fixed fee per sludent whilst the partners have primary re5pon5ibility fov providing s¢rviLes io students, have latitude in ¢stablishing pricing and bear any credit I'isk. Judgements in fixed assets and dcpre¢iation Costs incui'red in i'¢latson to a rangiblc fixed asset, &fter its initial purchase oi. production, are capitalised to the extent that they illCiEa5e the expected futuiE benefits to the University from the asset b¢yond its pi'eviously assessed standard of pei'foi'inance. The asse55mertt of These factors r¢quires managein¢nt's judkFemeiit. Ihe a[￿Ual depreciation chai'ge for fixed asscts Trs sensitive io changes ID th¢ ¢stimated usefiil ¢Lonoinio lives and residual values of the assets. Depi'cciation metliods, useful wonomie lives and Tesidual values al'e review¢d by Inanagemei)t at tl)e date of prepayatiot) of each Balance Sheet and amended wliere necegsary. 'fh¢ assessment of the5e.fa¢tors vequii'es manag¢ment's judgenient. 28 LBEDS TRINITY UNIVERSITY STATEMENT OF COMPREHENSIVE INCOME AND EXPENDITURE For the yeai. elided 31 July 2023 Year ended JI .luly 2023 Year ended 31 July 2022 Note INCOME Tuition fees and ¢ducptioi) conti'acts Funding) body gi'an(s ResearclJ &Jrants conts'aets Oihei. incoine Investjnent llicome Donaliolls and Eiidowinents 53,319,295 4.711.114 102,309 4,570,251 1,521,908 5,000 47,636.570 2,581.513 37.810 4217,889 84,759 Total Income 64,229,877 54,558,541 EXPENDITURE Staff cost5 Otlier operating ¢xpenses Depi'¢ciation Int¢i'est and other fmance costs 36.792,4(12 18,991,524 3,414,982 595,768 30.591,874 13,448,712 3,169,606 773,533 Total expendlture 59,794,676 47,983,725 SUrp1￿s for the yegr 4,435,201 6.574,816 Actuarial gasn/(loss) in respect ofpension schein¢s Restrietion in the recognition of the s¢h¢m¢ 5UTpIys 14 13,706,000 27,227,000 (5,703,000) Total Comprehenslve inrorne l (expen5e} for the yeHr 12,438,201 33,801,816 Rcpresented by.. UnYeskn'ictO comprehensive incom¢ l {expense) for the year 12,438,201 33,801,816 12,438,201 33,801,816 The Statement of Comprehensive Income and Expenditttir is in Irspect of continuing oper8tions. The notes to the financial statement5 are included on pag¢s 33-50 29 LEEDS TRINITY UNIVERSITY STATEN(ENT OF CHANGES IN RESERVES For the year ended 31 July 2023 Incotne and Expenditure Account Revaluation Total Reservt Endowin¢nt Re5trjcled Uiw¢sb'icted Balancc Rt l ￿￿gUst2011 6,272 318 17,011,493 4,696,678 21,714,761 Surplus froin income expenditure statement Othci. coinprehen5ive expeiise Tian$f¢r betsveen revaluation and income and expenditure reserY¢ and 6,574,816 6,574.816 27,227,000 204,086 27,227,000 1204,086} 'rotal coniprcl)ensive incoine (expense) foi. the year 34,005,902 (204,086) 33,801,816 BalAn¢e at. l AugM.$t 2022 6,272 318 51,017,395 4,492,592 55,516,577 Surplus income expenditur¢ statement Othei. comprehensiv¢ ¢xpense Transfer between revaluation and incon)¢ and expenditure reserye and 5,QOO 4,430,201 4,435,201 8,003.000 {144,094) 8,003.000 144,094 Total comprehensive illcome I (expellse) loi. the year 5,000 12,289,107 144,094 12,438,201 Balon¢t At 31 July 2023 6,272 5,318 63,306,502 4,636,686 67,954,778 The notes to th¢ financial statement5 are included on poges 33-50. 30 LEEDS TRINITY UNIVERSITY BALANCE SHEF.T As at 31 July 2023 Note 31 July 2023 31 July 2022 NOTr1 CURRENT ASSEI TS Fixed 8ss¢t5 44,481,011 39,438,391 CURRENT ASSETS Slock Ti'ade and other I'eceivables nveshments Cash ai)d cash equival¢ntS 13,986 13.146 6,182.174 4,992.1011 13,630.530 13,193,601 23,542,618 25,929,979 10 Less.. Creditor5: umounts f#lllng due within one year 43,369,308 44.128,834 (9,201,036) {9,912,0931 12 NET CURRENT ASSETS 34,168,272 34,216,741 TotJl as5et5 Icss eurrent Ilablllties 78,649,283 73,655,132 CredTtoi's.' amollnts falllng due after more th#n one year 13 (10,374,360) {11,183,316) (320,145) (6,955,239) Provlslons for pellsioTh$ 14 TOTAL NET ASSETS 67,954,778 55,516,577 Restricted R¢5erves Incom¢ and expenditure )Tserye- ¢ndowment Irserve Incuin¢ and expenditure reserve- Irstt'icted reserve 15 15 6,272 5.318 6,272 318 Unrestricted Reserves In¢oin¢ and expenditui'e reserve R¢valuation reserve 63,306,502 51,017.395 4,636.686 4,492,592 16 TOTAL RESERVES 67,954,778 55.516,577 The note5 to the flnancial statements are included on pages 33-5Q. 'lThe financial stalem¢nÈs of th¢ lJniversity (registered company numbet. 06305220) on page$ 25 to 50 wer¢ 2pproved by the Board of G 'nors on 29 Noveinbei. 2023 and were Si&Tned on ils belialf by.. Mr Kevin O'connor Vice Cl)air of the BoaTd of Governors Prof Chai'les E¥bu Vice-ChaDcelloi' and Chief Executive 31 LEEDS TRINITY UNIVERSITY CASH FLOW STATEMENT For the yeai. ended 31 july 2023 Year ended Year ended 31 July 31 July 2023 2022 C9511 flow from operatlng activities Sui'plu5 IOT the yeai. 4,435,201 6.574,816 Adjustment for non-cash iteTlls DepieLiatioih (i)ote 8) Defeiyed capital gi'ants i'el¢a5ed to income (note 2) {Inci'easeyDecrease in stock Ilnci'ease) in debtois Increasel(Dcci'¢ase) in ereditoi's Deci'ease in pi'ovi5ions Curyent and past service cost 111 excess of contributions {note 8) 3,414,982 3,169,606 (223,322) (228.970) (840) 4,337 {1,190,066) (1,505.002) 181,314 3.381,240 (32,094) (37,849) 1,218,000 3,351,000 Adjustrnent foi. investlng oy financing aetivltles Invcstmeiit income {nole 5) Interest and o(lier financc costs {t)ole 8) Loss on write.off and disposal of fix¢d assets (1,526,908) 595,768 39,395 (114,759) 773,533 18,804 Net eash iiifloiv from operAting #etivltie5 6,911.430 15,416,756 Cash Ilows from Investliig activilt¢s PayiM¢iits made to acqu￿￿ fixed assets Mov¢m¢nt on deposits Deferred tapital &)rant received Other interest received (9,106,264} (3,327,861) (436,929) (1,973,332) i 00,000 30,000 1,198,947 9,831 (8,244,246) {5,261,362) Cash floivs from fTrnancing activitie$ Interest paid New tenn loan borrowings Repayment ol'pi'evious loan boiiDwings (383,957) {294,466) (670,588) {670,588) (1,054,545) (965,054) (De¢reM$¢)I Inerease ID eash In the yeol. {llote 17) (2,387,361) 9,190,340 The notes to the finun¢ial statements are uJ¢lud¢d on pages 33.50. 32 LEEDS TRINITY UNIVERSITY NOTES TO TI4E FtNANCIAL STA TEMENTS For the year ended 31 July 2023 TUITION FEES AND EDUCATION CONTRAcrs' Year ended Yexr ended 31 Jllly 2023 31 July 2022 Pull-time home Bnd F.U students Full-tim¢ international students Part-time home and EU studcnt 51,661,582 507,500 1,150,213 46,304.208 219,500 1,112,862 53,319,295 47,636,570 Included within tuition fee income above, is £19,315,108 (2022.. 13,649,520) IElating to income fiY)m the UDivei'sily'S ai'rangetlleiits willi its franchise aiid validation partnei's. FUND1Tr4G BODY GRkiNTS Year ended Year ended 31 July 2023 31 July 2022 Totol TotHI ots DofE UKRI Recui'i'ent ￿an1 Specific gi'ants R¢leases of deferi'ed apital giant5, Buildtngs 3,6JO,958 235,609 269,458 333,198 3,900,416 587,376 1,945,698 406,845 18.569 223.322 223,322 228,970 Total 4,089,889 18,569 602,656 4,711,114 2,581,513 Note.. The source of 8iwII and fee income included within notes l and 2 i$ as follows.. Yeai. ended Year ended 31 July 2023 31 July 2022 Grant income from the OtB Grant income fiDm othor bodies ec ii)coiiie foi. taught awai'ds r4ee incoino foi. reseairh awards ee incoine froin Tion-qUa￿ifYTrng courses 4,089,889 621,225 53,179,263 25,600 86,685 2,122,9L14 458,569 47,540,200 42,500 53,870 58,002,662 50,281,083 RESEARCH GRANTS AND COPITRACTS Year cnded Ycar ended 31 July 2023 31 July 2022 Research Councils and chariti¢s Govei'ninent 81,624 20,68S 37,810 102,309 37,810 33 LEEDS TRINITY UNIVERSITY NOTES TO THE FtNANCIAL STATEMENTS Foi. the year ended 31 July 2023 OTHER INCOME Year ended Year elided 31 July 2023 31 July 2022 Residences, catering ajid confeiEnces Oihei. inLoine 3,502,975 1,067,276 3,271.450 946.439 4,570,251 4,217,889 INVESTlVtENT INCOME Yeay ended Year ended 31 July 2023 31 July 2022 Income from sho11 tci'm investm¢nts 1,526,908 84,759 DONATIONS AND Ef4DOWIKC, NTS YeAr ended Year ended 31 July 2023 31 July 2022 Resti'ieted donalioDS 5,000 STAFF COSTS Yeav ended Y¢&r ended JI July 2023 31 July 2022 No The av¢iage nuinb¢i' of persons (including 5¢nior post-holdei¥) employed by the University during the yeai., exprcssed 95 full-time eqiiivalents, was: Lectui'ing staff, huldei's of senior posts, staff paid on ac&deJnic scales and part-tirne le¥￿r¢r5 Athninisii'alive. professional arhd t¢chnical staff Other 283 230 318 45 280 646 541 Notc YeAr ended YeAr ended 31 July 2023 31 July 2022 Staff costs for the above person5: Wagcs and salaries 8neial seciiriry costs Contributions to pension scheine$ Pension ¢nhk)nceinent costs Ke5tw¢turing costs 8¢rvice cost in excess of contiibuiioll8 27,251,246 2,851,974 5,374,879 33,818 62,485 1,218,0(K) 20,833,324 2,146,147 4,104,493 32,171 124,739 3,J51,000 20 20 20 Total 36,792,402 30,591,874 34 LEEDS TRtNITY UNtVERSITY NOTES TO THE FtNANCiAL STATEMEN'I'S For the year ended 31 July 2023 STAFF CQSTS (CONTINUED) YeAr ended Year ¢nded 31 July 2023 31 July 2022 Severance payments Tncluded Ivithin staff Costs: Total severance and oiher compcnsation Pic id 62,485 124,739 No F40 The nuinber of people that tliis I'elales to The niifflbers of Staff, including the Vice-C.haiTr¢ellor and ather key management pei'sonnel, who I'eeeived eJnolument5 (excluding pension contributions) in the following ranges were.. Ye#i' ended Ye8r ended 31 July 2023 31 July 2022 No No £IOO,001 tg £105,000 £105,00 I t¢) £1 10,000 £IIO,001 to£llS,000 £125,001 to £130.000 £135,001 to £140,000 £185,001 to £190,000 £195,001 to £200.000 Y¢ar ended Year ended 31 July 2023 31 July 2022 Dlreetors, remuneration F,moluTnent$ Pension ¢ontributions 317,447 72,796 273,420 63,769 390,243 337,189 The number of director5 who: Ye&r ended Y¢Ar ended 31 July 2023 31 July 2022 No No membeiB of a der￿ed benefit pension sche]ne The amount shown for Dir¢ctor5' remun¢ralton repirsents amounts paid to three (2021r22.. four) dii'¢ctt>rs in respeLt of ilieir en]ployment by th¢ Uiiiv¢i%ity (tl)e Vice Chancellor and iwo elected staff govei'nors) ai)d not in respect of any dutie5 for acting as directors. During the year iiuee dilectoi's (2021122: four) were meinbei's of a defined benefit 5¢heine. 35 LE￿Ds TRINITY UNIVERSITY NOTES TO THE F￿ANCIAL STATBfvtENTS For th¢ year ended 31 July 2023 STAFF COSTS (CONTINUED) R¢ffluneratlon of the Vice Chgn¢¢llor (beln¥ the higliest paid dire¢lor): Year ended Year evded 31 July 2023 31 July 2022 Sal5pects for ili¢ ¢LoJioilly in byeiiei'al. tlie long term relationsliip between each asset class and the bond retul'lls and the illov¢iiiellt Ilie iiiarket indices since tli¢ pi'evi0115 measiirement date. Defmed benefit scheme assets do nut include any of tlie Univeisity's own f￿anc581 instruments, or any property occupied by the Univei'5ity. The estimate for th¢ contribution for the der￿ed benefit foi. the year 2023124 is ¢.£2.9m. Guaranteed Minimum P¢n51on Defined benefii pension schen)es will b¢ aff¢¢led by the equalisation of benefits for men and woJD¢n in relation to Guaranteed Minin]u￿ Peiision provisions. The Inetliod of eqiiali5atioJJ has increased the University's pension liabilities in iespe¢t of th¢ West Yorkshire Pension Pund aiid tli¢ fund actuaiy calculuted an esiimated liability which was rec(>gnised dui'inb 2018119. Any change5 to the estiinated liability in 2022123 have been IEcogllised thrvugFh a¢tiiaYial gaiDS I losses. Transition*1 Proteetion ArrKngements (Mecloud) Following thc loss of a court ¢a%¢ {the Mccloud judgement} which fouiid that h'ansitional pi'otections put in place when piiblic sector pension Schemes were refomied were age discruninatory, the govenunent has con)mitted to seelcing'a IEm¢dy across all public sector schemes. The UDiV¢I'5ity'S pension liabilities in resi)ect of the West Yorkshire P¢nsion Fund have increased due to this althougli th¢ meihod of remedy and hence the amount ofthe increase in liabilities is not yet known. The fund actuary iylLulaled an dPPIDXllnLtte estimated liability which was recognised dui'ing 2018119. Any chan&yes to th¢ Estimated liability in 2022r23 have been recogT)ised thiDu&sh actllarial gains / losses. Widniver Benellts {Goodivin) Following a recent P,Tnplo)nMent Ti'ibllnal ruling that a feinale membei. in an opposile sex marriage is .thEated less favouTably than a female in a same sex maJ'¥ioge orcivil pai'theTsliip, and that tiratment ainounts to direct disci'imination on the grounds of sexual orientation, the government announced in July 2020 that it believed changes would be ￿qUired to all public sector scheines with similar arrangeinents. For Ilie University, this will in¢Teas¢ the liability in respect of the West Yoi'kshire Pen¥ivn Fund, but no allowance 46 LEEDS TRtNITY UNIVF.RSITY NOTES TO THE FtNANCIAL STATEMENTS For the year ended 31 July 2023 has beeIi made in the accounting figures as it is expected that thc iinpact oi) the liabilities will be immatei'ial and theit is currei)tly tnsuflicient data available to e5timatc a cost. Sensitivi*y Analysis The approxin)ate iinpact of changiiig the k¢y assumptions on the pi'esent value of the funded defined benefit obligation as at 31 Jllly 2023 the projected service c05t foi. the pei'iod ending 31 July 2024 is set out below. Adjustment to discouiit I'ale Preseiii value of total obligatioii {£in) /0 Change in picsent value of total obligation Projected service cost (£in) Approximate /0 change in projected sei'vi¢e cost +0.1 I￿ p.a 51.871 53.881 -1.90Q/o 1.873 2.075 Ratc of generul increase in salaries Present value of total obligation {£m) °h Change in piEsent value of total obligation Projected service cost (£in) Approximate /0 change in projected servi¢¢ wsl +O.IO/• P. 52.982 -O.l°/o P. 52.77 0.2Q/o 1.972 1.972 0.0% O.OYo Rate of increase lo peiislons and rate of revalualiou of pension accounts -0.1 /0 p.a 51.977 PIEsent value of total obli&Jation {£m) /0 Change in present value of total obligatlon Projected service cost (Lm) Approximate Olo Change in projected servs¢e cost 53.77S 1.70/0 -1.70/D 1.8723 5.0•/0 2.075 5.2/0 Post Rctircment mortality as5umpÉlon Present value of total obiigatioii (£ni) °h Change in pi'esent value of total obligation Pi'ojected service Lost (lin) Approximllte 0/0 cliange in projecled servi¢e cost +1 year 54.198 -1 yexr 51.554 -2..SYo 2.5Q/o 2.047 1.897 3.8Q/o 47 I.F.EDS TRtNITY UNIVF.RSITY NOTES TO THE FINANCIAL STATEMENT3 or the year end¢d 31 Jiily 2023 21. RELATED PARTY TRANSACTI()P4S Dui'ing the year the Univ¢rsity's transactions with Yoi'ksliire Ullivth'%ilies, a coinpany limiled by guarantee in whi¢li Ilie Univei'sity holds a £1 guai'antce and wl)¢i¢ the Vice Chancellor is a director, were as summai'ised below.. Year ended Year ended 31 July 2023 31 July 2022 PuKhasc% from York81)ire Universities 10,400 10,610 Thc above transactions were undertaken on i)ormal trading tei'ins. At 31 July 2023 the amount owed ¢0 Yoi'kshiit Univei'sities ivas £Nil (2022.. £Nil). Th¢ r65ulls of Yoi'kshire Univei'sities have nol beeii llicluded irt the r¢sults of the University. Dui'ing the year the University's tt'ansaction5 With L¢¢ds Learninb Alliaiice, a ¢oinpaiiy limited by guai'antee in which rhe University holds a £10 &7uarantee and where the Vice Chancellvr is a direLlor, were a5 $ummai'ised below.. Year elided Y¢aa- ended 31 July 2023 31 July 2022 Purcliases Troin Leeds L¢￿'lling Alliance 7,500 7,500 The ybove transactions were undei'tak¢n on nortnal tsxdinb tei'ins. At 31 July 2023 tl)e amou2)t owcd to L¢¢ds Learning Alliance was £Nil (2022.. £Nill. The i'esults of Leeds Leai'ning Alliance have iiot bc¢n in¢luded in the I'esults of tlie University. The Pre5id¢nt of the Leeds Trinity SÉudellt5' UiJi¢)n (LTSU) is a member of the goyei'ning body of thc University. Durittg ttLe year the Univeisity's traiisactions wÉth Leeds Trinity Students, Unioii wei'e aq summai'ised below.. Year ended 31 July 2023 Year ended 31 July 2022 Subvention paid to LTSU Othei. payments to LTSU 314,000 77,167 192.000 99,584 391,167 291,584 At 31 July 2023 the an)ount owed to LTSU was £Nil (2022.. £Nil). The iEsults of Leeds Trinity StudentS' Union have not been included in the IEsult5 of the Univei%ity. 48 LEEDS TRtNITY UNIVERSITY NOTES I'o Tllb FINANCIAL S1A'fEMENTS For the ye&r ended 31 July 2023 The Catholic Bishop of Leeds is a member of the governing body of the Ullivei'sity. During die y¢w' the University's transactions wilh the Catliolic Diocese of Leed> wei'e as suinmai'ised below.. Yeyr ended 31 July 2023 Year ended 31 July 2022 Visitints L¢¢turers 12,643 3,056 At 31 JLily 2023 the amount owed to the Diocese of Leeds was £9,693 (2022.. £Nil). Tlie iEsults of Ilie Diocese of Leeds have not.been included in tbe I'esults of the Uiiiveisity. All transactioi)s involving organisatiolls in which ajnembei. of the Board of Governors may have an interest air conducted at arm's length and in accordance with the UniveTSlty's f￿ancIal Jygulations and nonnal pi'ocuIEinent pi'ocedures. 22. EVENTS AFTER THE REI PORTING PERIOD Nolle to report. 23. AMOUNTS DISBURSED AS AGENT OF THE DEPARTMENT OF EDUCATION (FORMERLY NATIONAL COLLEGE FOR TEACHING AND LEADERSHIP (NCYL)) 31 July 2023 31 July 2022 Funds I'eceived Disbursed lo studenls. 775,000 734,800 1,193,OOQ 1,234,700 Balance ullspent at 31 July 40,200 41,700 These funds air available solely forsliid¢nts, Iviih tlie Univ¢rsity acting only as a paying agent. lThe in¢oine and i'elated disbui'5einents al'e therefore excluded fi'om the Income and Expendituie Account. Witliin the cash flow tliey appear within the movement on creditorsldebtors. 49 I,EFDS TRtNJTY UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS o¥ the yeai. ¢nd¢d 31 July 2023 24. ACCESS AND PARTICIPATION 31 July 2023 31 July 2022 Access Investment rinan¢ial Siipport Disability Support Reseai'eh and Evaluotion 1,914,052 1,800,447 223,456 1,538,49 550,918 186.584 3,937,955 2,276.000 £944,801 of these costs 2r¢ included in the.overall staff costs figure in¢luded withill thosc financial stateinenls {note 7). The University's approved Access and PartiLiPdlion Plan included for 2022123 a eommitment io expenditure of £1,480,000 across the above activities. of which £830,000 was fvnded by hi￿er fee income and the balance froin oth¢i' souires. The Universiry is cominitted to widening participation and typically spends moir than the committnents En its Access and ParticipatiOD Plan. T]ie UniveiBity's approved Access and Participation Plan for tlie five year period 2020121 to 2024125 can be access be accessed heie.. Access aiTrd IticTr )ation Plaiis- Public infoi'iiiatiot) About- Leeds Tyiiii Universi 50