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2022-07-31-accounts

Swansea University Prifysgol Kts Abertawe ANNUAL REVIEW 2022

CONTENTS

CHAIR’S INTRODUCTION

I would like to begin this introduction to our Annual Report and Financial Statements, on behalf of the Council, by thanking the Vice-Chancellor, staff and students, for their dedication and hard work.

We are still dealing with the aftermath of some of the challenges posed by Covid, as well as the impact on international student recruitment and research income as a result of Brexit, and the continued competitive nature of the higher education sector. I am proud that we continue to make a difference on a local, national and global stage through research, enterprise, teaching, student experience and civic engagement.

One of the most welcome aspects of the previous year is how our staff, students, alumni and other stakeholders have finally been able to enjoy in-person events again. It has been a real pleasure to see our students celebrate their achievements by graduating in front of family and friends, including the cohorts from 2020 and 2021 who could not enjoy in-person ceremonies at the time.

Varsity is always a highlight of the student experience and one of the highlights of 2022 so far for me has been the return of this annual sporting contest with Cardiff – our students once again able to enjoy this friendly rivalry and celebration. Next year we will hope to build on the success of many of our teams and ensure we deliver even better overall results.

The quality of the student experience is always central to our strategic goals at Swansea, and to this end, listening to and engaging with the student voice is crucial and dependent on the close relationship between the University and the Students’ Union, and the ongoing and fruitful engagement with the Students’ Union’s full-time officers. It was therefore very pleasing to see the University ranked 15th in the annual Student Crowd Awards, with the Students’ Union ranked 20th in their category: these are the only awards based entirely on verified student reviews.

Our University is proud to be an inclusive and welcoming place of study and work, and one that respects and celebrates diverse cultures. At heart, we are a University of and for Wales, offering a warm Welsh welcome to our students wherever they come from. We celebrate our Welsh heritage and culture and aspire for our students and colleagues to come into contact with the language regardless of their background or area of study. In June 2022 we launched our Welsh Language Strategy which outlines our aspirations and ambitions to secure a prominent place for the language in our community. Our aim over the next five years is to move forward, building further on those foundations to ensure sustained progress and to take our place with confidence amongst those universities in Wales that embrace, celebrate and promote the Welsh language and Welshness.

I would like to take this opportunity to thank both past and present members of the University Council and its various committees for their commitment and contribution to the University. During the year, the Council has continued to ensure the University’s governance arrangements allow us to embrace a culture of openness and transparency. The strength of these arrangements is evident in the way that we have been able to respond to the challenges which we and others in the sector have faced and put us in a strong position to address the challenges which undoubtedly still lie ahead. I am sure we will continue to build on our successes together thanks to the dedication and talent of our staff, students and stakeholders.

We are facing the continued challenges ahead with confidence and building on the excellent work done in teaching and student support, as well as world-class research, as we move into our second century in a stronger position than ever.

Mr Bleddyn Phillips, Chair of Council 28th November 2022

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VICE-CHANCELLOR’S INTRODUCTION

Following the challenging events of the previous two years, this academic year at Swansea University has been characterised by a desire for reconnection; with our students, with our staff and with our partners, both local and global. I remain incredibly proud of the resilience of our staff community in the wake of a global pandemic, so many of whom have played a vital role in supporting safety and wellbeing, while ensuring the continuation of our University’s core purpose; our learning and teaching, our research, our student experience, our civic mission and our enterprise.

With the remarkable pace of scientific endeavour over the past two years came a vaccination programme which has enabled a safe and steady return of so many of the opportunities upon which a meaningful university experience is built. Most notably, we saw the gradual return of in-person teaching and student engagement that reflects our Teaching Excellence Framework (TEF) Gold Award. I remain extremely grateful to staff across our University for their commitment to maintaining academic quality in the face of the transition between teaching formats this year, as evidenced by us retaining our place in the Guardian University Guide 2022 (24th in the UK overall) and being ranked 6th in the UK for course satisfaction.

At a time when the link between research breakthroughs and our daily lives has never been more explicit, our academics have continued to balance their commitment to our students with their vital work to tackle the challenges of our modern world. We are proud that our researchers play a significant role in driving positive global change, as demonstrated by the recent Research Excellence Framework (REF) 2021 exercise, within which 85% of our research outputs were deemed to be world-leading and internationally excellent. We were also delighted to be ranked within the top 20 universities out of 1,400 institutions internationally for our performance against three of the UN Sustainable Development Goals, within the new THE Impact Ratings 2022.

Our research is highly impactful only due to the scale and strength of our academic collaborations across disciplines, institutions and national borders. This was perfectly encapsulated by the Queen’s Anniversary Prize which was conferred upon our University in early 2022. This highly prestigious prize was awarded for the work of Professor David Worsley and colleagues within Materials Science and Engineering, who are leading a revolution in renewable energy technologies, particularly solar electricity and heat storage. Their global network of collaborators has enhanced the international impact of this vital research to transform the construction industry and tackle fuel poverty across the world.

Importantly, this year has seen the welcome return of the in-person events which foster a sense of connection and make the higher education experience a positive one. Within a period of eight months, we invited four cohorts of graduands to attend full graduation ceremonies, ensuring that no student of the past two years lost out on the opportunity to cross the stage. And after a two-year hiatus,

we were delighted to host our annual Varsity event, a long-established sports tournament which is a calendar highlight for both Swansea and Cardiff Universities.

Along with a return to familiar traditions, this year we were pleased to usher in the new by hosting the inaugural Hillary Rodham Clinton Global Challenges Summit in November. The Summit, kindly supported by the Welsh Government, featured conversations convened and chaired by Secretary Clinton, alongside expert panels addressing the most pressing global challenges of our time; technology, the climate crisis, human rights and healthcare. Throughout all of the illustrious panels, there was clear consensus on the need for connection and collaboration – across disciplines, sectors and countries – to truly address the most urgent issues facing our generation and those which follow us.

In that spirit, I am proud to reflect upon our University’s global outlook and our continued commitment to international collaboration. This year, we have reconnected with longstanding partners such as Université Grenoble Alpes in France and institutions within our Texas Strategic Partnership, while continuing to explore new international opportunities. The strength of our global networks has led to an improvement in our QS World University ranking (2023); indeed, Swansea University saw the largest rank improvement of any UK university within the top 500. With the world reopening for us all, these international connections mean that we can once again offer life-changing exchange opportunities to our staff and students alike.

At a time when our geopolitical reality feels increasingly fragile, we have not lost sight of our place in the world, nor of our unique role within the local community which we were founded to serve. As an institution, we have supported the Council for At-Risk Academics (Cara) who provide practical and financial assistance to the many staff and students across the world who are facing danger through conflict, persecution or displacement. Closer to home, our partnerships with local authorities, health boards and the private sector have been strengthened through our shared commitment to projects and initiatives that will enhance the lives and wellbeing of our local community. Throughout, we have remained proud to promote the distinct heritage, culture and language of Wales to our international students, staff and partners alike.

This academic year has been a year of reconnection in a myriad of ways. After a period of intense disruption, we have found comfort in meeting, teaching and working together again within the same physical space, and in reconnecting with our core mission as a university. I remain incredibly proud that, in spite of the challenges, our focus on the institutional principles and purpose upon which we were founded has endured.

Professor Paul Boyle, Vice-Chancellor 28th November 2022

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S T U D E N T N U M B E RS

6 156 ,

POSTGRADUATES*

17911 ,

UNDERGRADUATES*

18.9%

OVERSEAS STUDENTS*

83%

ACHIEVED A FIRST OR 2:1 DEGREE (21-22)

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Swansea Insights Data 2021/22 EoY
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S TA FFI N G

1 612 ,

3 479 ,

ACADEMIC STAFF (FTE 21-22)

TOTAL STAFF (FTE 21-22)

S T U D E N T E X PE R I E N C E

TOP 93% 20

OF GRADUATES BEST UK UNIVERSITIES (Student Crowd University Awards 2022) ARE IN EMPLOYMENT, STUDY AND / OR OTHER ACTIVITIES (HESA 2022) 15th IN THE UK 78%

FOR COURSE SATISFACTION OF STUDENTS (Guardian University Guide 2023) ARE SATISFIED (NSS 2022)

WO R L D R A N K I N GS

GLOBALLY RANKED IN ALL SUBJECT AREAS

(QS World University Rankings 2023)

251-300

(THE World University Rankings 2023)

U K R A N K I N GS

39 th

(The Times Good University Guide 2022)

42 nd

(Complete University Guide 2023)

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24 th
(Guardian University Guide 2022)
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R ES E A RC H E XC E L L E N C E

86%

WORLD LEADING AND INTERNATIONALLY EXCELLENT RESEARCH (REF2021)

£69.2M

RESEARCH INCOME

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FI N A N C I A L
PE R FO R M A N C E
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4% 12% OPERATING EBITDA AS % SURPLUS AS INCOME % INCOME (before pension adjustment)

NET OPERATING CASHFLOW 15% AS % INCOME

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OUR STRATEGIC VISION AND PURPOSE

Our Strategic Vision and Purpose

Our Strategy

Our Strategic Vision and Purpose sets out the high-level priorities for the University. The document was developed following extensive engagement with our staff, student and alumni community and stakeholders in the region. The commitments and priorities outlined were identified and refined through a series of workshops, and drafts of the strategy were discussed at the Leadership Engagement Forum. The document was approved by Council in November 2020.

Our Strategic Vision and Purpose states that we are an intrinsically principled, purposeful and resilient organisation. Our community of colleagues, students, partners and stakeholders is characterised by the distinct values, culture and behaviours that lie at our core.

The commitment of our community underpins the five key pillars of the University – our civic mission, student experience, learning and teaching, research and enterprise. Each of these is marked by our commitment to making a difference, to being socially responsible, to striving for excellence, and to maintaining a global outlook that enables us to be a community University with international reach and reputation.

Our Vision

We are, and will continue to be, a principled, purposeful and resilient University that balances excellent teaching with world-leading research and innovation in an open environment which enables our students and colleagues to excel. While we are valued globally as a trusted partner, we are deeply committed to our region and are proud to be a University for Wales.

Our work is enabled by strong leadership and robust governance, effective communication and a commitment to financial and environmental sustainability. It is built upon our digital and physical infrastructure, our internationalisation strategy and our approach to recruiting talented and enthusiastic colleagues.

Ymlaen

Our Commitments

The document highlights our key commitments:

The University continues to deliver its transformation programme which, during its first phase, established a Faculty structure. Going into the next phase, the Ymlaen programme will focus on enabling the University to achieve its vision and ambitions over the next decade in a rapidly changing market and dynamic environment. Ymlaen, which translates as “Moving Forward”, captures the spirit of the programme: looking to the future, innovation, and collaboration.

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approach to recruiting talented and enthusiastic colleagues.
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Key Pillars and Enablers

Our Strategic Vision and Purpose is underpinned by five pillars, each with their own strategies approved or in development. The five pillars encompass:

Ymlaen will deliver a step change in organisational effectiveness over the next three years. This will be achieved through a series of ambitious projects where the outcomes are focussed on our people, service improvement, and embedding a culture of continuous improvement. Ymlaen will further improve collaboration and innovation. By working together to create capabilities and capacities, we will support a growth in the scale and diversity of our activities through greater operational effectiveness.

Our strategy is supported by a number of enablers, including:

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OUR STAFF COMMUNITY

Equality, Diversity and Inclusion

We have continued to make substantial progress on restructuring the University, aiming to ensure that we are a more effective, efficient and resilient organisation. Further to the merger last year of our seven Colleges and Schools to create three new Faculties: the Faculty of Medicine, Health and Life Science, the Faculty of Humanities and Social Sciences, and the Faculty of Science and Engineering, we have appointed key roles within the leadership teams led by the three Pro-Vice-Chancellors and Executive Deans.

We are one of just 21 UK universities, and the only Welsh university, to hold an Athena Swan Silver Institutional Award in recognition of our commitment to advancing gender equality. All of our eligible academic departments have an Athena Swan award, with four Silver and seven Bronze awards across the University. Three of our colleagues have become trained Athena Swan Panel reviewers and make up three of the six panel reviewers from Welsh Universities.

Our Strategic Vision and Purpose document sets out a series of “People, Values, Culture and Behaviour” priorities:

52% of our grade 9 colleagues, and 38% of grade 10 colleagues, are female, and we have more than tripled representation of females at grade 10a and director level since 2016 (contributing to 59% female representation in this group in 2021).

While there is further progress to be made, the number of female professors at the University has more than doubled since 2014, resulting in a 12.5% increase in the female representation in the professorial community, from 13% to 25.5%. There is a gender balance on the University’s Senior Leadership Team, with females representing 50% of the membership.

We have made significant progress in reducing our gender pay gap, with a reduction of 5.5% in our mean average pay gap of 15.3%, which has reduced from 20.8% in 2018/19, and a reduction of 2.6% in our median average of 11.1%, which has reduced from 13.7% in 2018/19.

56% of our Council members are female (compared with 25% in 2013) and for a second year we have continued to achieve a representation of BAME Council members comparable to the percentage of BAME colleagues within the University.

This year we have increased our ranking in the Stonewall Top 100 Employers from 47th last year to 26th.

Reward and Recognition

We continued to commit to pay the Real Living Wage in 2021/22 to ensure that the pay of all our colleagues, especially those on the lowest salaries, meets the real costs of living and not just the government’s legal minimum.

In July 2022, we made a payment of £750 to each of our colleagues in recognition of the hard work and commitment shown by them over the last two years.

We recognise the challenges facing our staff and students as a result of the current cost of living situation and are considering what options may be available to assist both communities.

We were delighted to support the promotion of 74 academic colleagues this year, representing a 54% increase in successful applications compared to seven years ago. In terms of promotions by Academic Career Pathway, there has been a 62% increase in the number of successful Research pathway applicants compared to 2015 and a 44% increase in the number of successful Teaching pathway applicants.

This year, 53% of successful applicants are female, a 63% increase compared to seven years ago. This year, 22% of successful applicants are from ethnic minorities, which is a 78% increase compared to seven years ago.

We promoted 16 new Professors in 2022, 50% of whom were female.

Health and Wellbeing

Our Health and Wellbeing Strategy was approved by Council in 2020 and is in the process of being implemented, supported by funding from HEFCW in 2021/22 of £0.3m.

We recognised and rewarded the hard work and dedication all our colleagues have shown during the Covid pandemic by awarding additional leave, introducing a quieter Friday initiative during the pandemic, and supporting agile working practices designed to help colleagues balance conflicting professional and personal priorities and support their mental health. We have also enhanced our Occupational Health and Wellbeing services, with access to staff Mental Health Advisors, Covid health assessments and counselling services.

This year, 1,532 colleagues responded to our confidential Workload Survey, which provided an opportunity for our staff community to offer suggestions on what is working well for them and what could be enhanced. We will be publishing regular quarterly updates to the Response Plan to ensure colleagues can see the actions taken.

Confronting Discrimination

We are engaged in the HEFCW-funded Race Access and Success collaborative enhancement programme to progress race equality within HE, gaining a fuller understanding of our institutional approach to race equality and diversity and developing evidence-informed action plans to progress this.

We have commissioned two external organisations to undertake a consultation process with staff and students to understand experiences in relation to race and ethnicity. The research will generate practical recommendations to address areas of concern and will equip us to take positive steps towards providing equitable and inclusive experiences.

We have also signed up to the Victim Support Hate Crime Charter and were awarded a Hate Crime Charter Trustmark by Victim Support.

This past year we celebrated a range of diversity events virtually, keeping colleagues connected as we worked remotely. Our online events drew more participants than in previous years and helped us to reach a wider audience. Amongst these events were Holocaust Memorial Day, LGBT+ History Month, International Women’s Day, Black History Month, as well as a range of interfaith events. The University also has an active Staff Carers Network and we are a member of Employers for Carers, which offers access to a range of resources that help us support our staff who juggle work and care.

Developing our Leaders

Leadership underpins everything we deliver, which is why we have committed to developing our leaders – not just to drive results, but to maintain and enhance an inclusive culture in which great outcomes are delivered in a way that prioritises the health and wellbeing of all our people whilst ensuring everybody’s contribution is recognised and rewarded fairly and appropriately.

Following consultation with leaders across the University, we are approaching leadership development in two phases. Phase 1 commenced in July 2022 with an Executive Coaching offer for our most senior leaders, followed by the introduction of a suite of optional modules available to all our leaders and managers, which focus on running the University. Stage two will be developed in 2022/23 with the University values at its core, and will focus on supporting all our leaders and managers to grow their wider leadership skills.

Technician Commitment

We are proud to have become a signatory of the Technician Commitment to ensure visibility, recognition, career development and sustainability for technicians working in higher education and research across all disciplines. The essential work that our technicians carry out across the University benefits the institution directly and supports our partnerships. Our technicians enable Swansea to deliver our excellence in research and teaching, and we are committed to ensuring their contributions to our achievements are widely recognised.

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OUR LEARNING AND TEACHING

Our Learning and Teaching Strategy set out our approach to ensuring that we provide an exceptional experience for all our students. The delivery of our strategy and its commitments is focused on six Pillars of Excellence, which are underpinned by a fundamental wellbeing cross cutting theme:

Highlights

During the last year, we have built upon our success in providing high quality learning and teaching to students during the pandemic by being able to offer a rich student learning experience based upon enhanced opportunities for live teaching, supported and supplemented by online learning and the provision of pre-recorded material housed on our Canvas Virtual Learning Environment. During the year we adapted to meet the changing requirements of the Welsh and UK Governments, for example in respect of restrictions limiting total student capacity in teaching and other venues.

In line with the Welsh Government infection control framework for higher education, we introduced a managed approach to learning and teaching from the start of the 2021/22 academic year. Large lectures were usually delivered online; however sessions such as practicals, seminars and lab work were prioritised for in-person teaching. We listened to student feedback regarding new digital initiatives that have been introduced since the pandemic and retained areas of good practice to enhance the learning experience of our students.

Students returned to campus in September 2021 to engage with the in-person teaching provision with a small exception made for some international students who were unable to travel to Swansea and were permitted in respect of many programmes to study online in accordance with the extension to the UKVI concession. We put together a comprehensive list of what students might expect in the new academic year together with some important advice regarding Covid health and safety measures. To help protect the personal safety of our students, staff and those living in the local community, we maintained the supplemental Covid Student Charter.

From late January we were able to deliver teaching with greater room capacity and run to a timetable that was closer to our pre-Covid model. There was greater provision of in person teaching and more opportunities to engage with other students in academic environments.

The needs of those international students who were not able to come to Swansea due to travel restrictions, along with self-isolating and clinically vulnerable students who could not attend, were met through an appropriate level of online provision and supervision. MyUniSupport remained in place as a single point of contact for Covid matters and to support students with any related concerns.

As part of an ongoing project to diversify our library collection, the Library collaborated with the Students’ Union asking students to suggest titles which should be added to the Library which reflect decolonisation, diversity, wellbeing, and welfare. Twenty-seven of the suggested titles were available for purchase as e-books and paper copies of these, and other titles which were not available electronically were purchased by the Students’ Union for placement in the Libraries in both Singleton and Bay campuses.

We have built upon our success in QAA Quality Enhancement Review. The review team was impressed and commended the University’s ”proactive use of well-developed processes and procedures for the effective strategic management and operational development and review of its academic portfolio to ensure continued relevance of its programmes.” The QAA have now published a Quality Enhancement Review Case Study showcasing our approach to programme and portfolio management.

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OUR STUDENT EXPERIENCE

Our key priorities for the student experience include:

Our students are at the heart of the University. We work in partnership with them and our Students’ Union to take their needs and expectations into account in our decision-making – including through a number of our committees – and can take pride in our consistently strong reputation for the quality of our student experience, the strength of our student support services, and our commitment to student mental health and wellbeing.

Highlights

NSS 2022

Compared to the sector, Swansea University performed less strongly than expected in the 2022 NSS (National Student Survey). Despite initially responding well to the pandemic, the University did not keep pace with its competitors and slipped below the upper quartile (the University’s target) for teaching quality, student experience and overall satisfaction. The new Pro-Vice-Chancellor Education, working with teams across the University, is proposing an enhanced approach to the development, management and delivery of School and Faculty Student Experience Action Plans. These will feed into the University’s Quality Enhancement Plan, which will focus on delivering consistency in learning, teaching and assessment, academic integrity, and extenuating circumstances. This should provide the foundations for improved student satisfaction survey outcomes for 2023.

Student Support

Our Student Support Services team continues to offer advice and support against a backdrop of a changing student community which is driving year-on-year increases in demand. Our Wellbeing Service has seen a 318% increase in support appointments (to 9,295 sessions) delivered since 2016/17, and a 56.5% increase in applicants declaring a mental health or autism diagnosis since 2018/19.

Our Disability Office reports a 286% increase in enrolled students requiring disability support since 2016/17, and a 31% increase in support delivered to students declaring a disability or health condition since 2018/19.

Our Swansea Academy of Inclusivity (SAI) is leading on accessibility lessons for Higher Education, in response to the “Going back is not a choice” report produced by Disabled Students UK in April 2022. In 2021/22, 13.9% of all students (3,675 people) declared a disability, a 3.9% rise from 2015/6. We have developed an online course to raise awareness of disability, including the University’s legal obligations under the Equality Act 2010, especially disability rights and reasonable adjustments. The course will be compulsory for all staff.

Swansea University was a participant in a HEFCW-funded enhancement programme to progress race equality within higher education. Following a student race equality consultation (led by the Students’ Union), a draft race action plan was submitted to HEFCW in August 2021 and was endorsed by the University’s Senior Leadership Team.

Our Money@CampusLife team has also seen a significant increase in service demand, which is unsurprising given the ongoing impact of the pandemic and the national cost of living crisis.

Skills and Mobility Opportunities

We also continue to provide a range of development opportunities for students, for instance through our Centre for Academic Success (CAS), which works to help students develop their academic study skills. CAS is working to support our partner institution in Ukraine through structured sessions, and is currently offering daily, free English language classes for refugees and asylum seekers.

The British Council inspected and accredited Swansea University in March 2022. The Accreditation Scheme assesses the standards of management, resources and premises, teaching, welfare, and safeguarding of under 18s and accredits organisations which meet the overall standard in each area inspected.

CAS is also increasing online English language testing in support of the University’s international student recruitment and has expanded its Peer Assisted Study Skills programme into each Faculty.

Our Swansea Employability Academy (SEA) helps students to gain as much experience as possible in a work environment to help them develop their soft skills and to put their studies into practice. The Academy manages placements with industry, Santander-funded placements, and paid internships, where students are paid at least the Living Wage Foundation rate. In partnership with the Students’ Union, the Academy also offers funding for clubs and societies to create and host events that engage students with employers and alumni.

SEA is currently consulting with all other Welsh universities and HEFCW on the new three-year GO Wales programme.

The first iteration of the Graduate Support Programme (GSP), which drew on HEFCW/Welsh Government Covid response funding, assisted graduates with barriers to recruitment into professional level employment. ‘GSP 2’ will run for another academic year and will then be brought in-house.

SEA has seen significant external recognition, securing a ‘Highly Commended’ in the National Undergraduate Employability Awards 2022 for our partnership working on the iBroadcast programme with Aspire2Be. SEA was also nominated five times in the 2022 AGCAS Awards for Excellence, winning the award for Equality, Diversity & Inclusivity for our work on the REACTION 24/7 programme.

Although study and work abroad opportunities have been impacted by the pandemic, our Go Global team continues to support students to experience international mobility. We are also engaging with the Welsh Government-funded Taith programme to provide international learning exchange opportunities for students from 2022/23.

Student Wellbeing and Safety

We are working in partnership with our Students’ Union and Swansea Council to have more lighting installed in Singleton Park close to our campus in order to address student concerns over safety. We also hosted the launch of the Swansea Bay Healthy Travel Charter, which has been signed by the region’s major employers to promote more sustainable and healthy travel.

We have also invested in our sports facilities, upgrading provision on both our Bay and Singleton Campuses, and are progressing plans for the wider regeneration of the Sketty Lane Sports Park. A potential masterplan for the site has been commissioned by the University and Swansea Council with the aim of enhancing student, staff and community sport provision.

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OUR RESEARCH

Published in 2022, our Research and Innovation Strategy sets out our vision to build on our rich heritage of discovery and knowledge-led research and the pioneering spirit that has defined the University since it was founded by industry, for industry, in 1920. The Strategy is built on four objectives:

Two enabling themes that support the Strategy’s delivery are:

Highlights

REF2021

The results of the 2021 Research Excellence Framework (REF) show that Swansea University maintained its research power rank (41 in REF2021 compared with 42 in REF2014). Overall, 91% of the University’s research environment is rated world-leading or internationally excellent. The REF2021 results confirm the University’s research is delivering significant, sustained and valuable economic and societal impact in Wales, the UK, and internationally.

Research Income

Our research and innovation portfolio is valued at £365.7m, with 1,197 live projects funded by 365 unique funders. The number and value of award proposals have maintained similar levels over a 3-year period against the backdrop of an increasingly uncertain funding landscape. We have seen a significant increase in the total number of live research and innovation projects, and also an increase in cash contribution from awards secured.

Horizon Europe Success

EU grants have been received across two funding programmes: Horizon 2020 from 2014-2020) and Horizon Europe (from 2021-2027). In January, the UK government signalled its intention to associate to Horizon Europe so UK applicants were able to apply for funding immediately.

The University was delighted to secure nearly £5m in the first year of the programme. (The total Horizon 2020 funding for 2014-2020 was £16.4m, averaging £2.3m per year.)

UKRI has confirmed guaranteed funding for the duration of these awarded projects:

• Led by Professor Yvonne McDermott Rees (Faculty of Humanities and Social Sciences), €1.5m was secured to deliver on the project: Trust in User-generated Evidence: Analysing the Impact of Deepfakes on Accountability Processes for Human Rights Violations

Grant highlights

Other major successes in securing UK research funding during 2021-22 include:

• An additional £2m in Quality Research (QR) funding from HEFCW as a supplement to the 2021/22 allocation, to be used to support research which will contribute towards the delivery of the Welsh Government priorities, including life sciences, improving health care, engineering, and the transition to net zero

• £2.1m to support our Impact Acceleration Account portfolio, including £450k from the Arts and Humanities Research Council (AHRC), £450k from the Medical Research Council (MRC) and £1.2m from the Engineering and Physical Sciences Research Council (EPSRC).

Working with international partners

Following two years of virtual meetings we were pleased to strengthen our European links with a visit to our longstanding strategic partner, Université Grenoble Alpes (UGA). The visit enabled us to reconnect with one of France’s leading institutions and to focus on the collaborative activities that will enhance both institutions’ ability to realise their strategic aims. The visit reaffirmed our mutual ambition to increase collaborative research across the breadth of our institutions, support PhD students and foster stronger connections across Europe and beyond. In 2022/23, we will cosupervise five new collaborative PhDs, and progress plans for a joint centre on artificial intelligence. Following the visit a research conference was held at Swansea, providing an opportunity for the twenty postgraduate research students on the joint PhD programme to explore new collaborations.

During the period June -December 2021, Swansea University has continued to actively participate in UK Jiangsu Research consortium (UKJS) activities. This includes:

The University responded to the UUK report on managing risks in international research and innovation with a series of consultative workshops, which resulted in a Due Diligence of International Collaborations guidance document. A Policy Framework provides a structured and consistent approach to identification and assessment of risks through robust and proportionate due diligence checks and balances, leading to a better informed and managed intervention which helps the University align a collaboration with its strategic objectives and minimise the risks to be commensurate with the benefits of a collaboration.

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OUR ENTERPRISE

Collaborative research with the public, private and third sectors is integral to our Research and Innovation Strategy, and is a key pillar in our Vision and Purpose document. We embrace a culture of cocreation with our partners. Our colleagues and students work with local, national and international partners on industry-led initiatives that benefit our research and drive innovation, and which have economic and societal impact. Our enterprise priorities include:

Highlights

Business and Community Interaction

The University is first in Wales in the Higher Education Business and Community Interaction (HEBCI) survey, which demonstrates performance in collaborative research, innovation, knowledge exchange, and community engagement. The survey also records innovation funding and other key metrics. We achieved a £10.4m increase in Collaborative Research Project income. Overall, our total HEBCI collaborative research income stands at £80m (including match funding).

Wales Innovation Network

Following the Reid review, the Wales Innovation Network (WIN) has now been established via Universities Wales and is co-funded by Research Wales Innovation Fund (RWIF) and Welsh universities. The group will undertake strategic collaborative bid development across Wales and has received a pump priming fund of £2m from HEFCW to support initial project collaborations. From this initial round Swansea leads six projects, valued at £328k. Swansea is also a partner on 25 other WIN-approved projects.

Research Wales Innovation Fund

We have significantly strengthened its overall approach to the development of our innovation and engagement agenda through the targeted allocation of the investment available through HEFCW Innovation Capacity Development Fund (ICDF) and RWIF provision. RWIF funding has enabled us to expand support for research development in our Faculties as well as in the central team, and grow capacity to deliver on our new activities, performance, and outcomes set out in our strategy. 59 projects have been funded in the first two years at a value of £1.5m.

KTP and Smart Partnerships

Having invested in capacity to develop strategic partnerships we are pleased to have a growing portfolio of Knowledge Exchange projects that includes two Knowledge Exchange Partnerships (KTPs), two Management KTPs and five SMART Partnerships. We are also growing a substantial pipeline of potential projects.

Student Enterprise

RWIF funding also helps us to support postgraduate students and the creation of new ventures and enterprises. The fund has enabled us to strengthen our Enterprise Team and to deliver workshops, accelerator programmes, mentorship and to commercialise and start-up businesses.

Supported by the Welsh Government Youth Entrepreneurship Grant (2019-2022) we engaged with 22,462 students and supported 162 business start-ups. As one of 85 Santander Universities, we also receive £24k to support education, internships, employability and enterprise and start-ups.

The University was chosen to host the prestigious International Enterprise Educators Conference 2022, and we were pleased to see our support for student entrepreneurship recognised in the THE Awards, being shortlisted in the Outstanding Entrepreneurial University category.

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OUR INTERNATIONALISATION

We have identified three pillars to represent our international ambitions:

The University’s International Strategy 2020-2025 commits us to growing our international student numbers, strengthening our international strategic partnerships, growing our global research networks and achieving a stronger global profile. This Strategy dovetails with the University’s Strategic Vision and Purpose, specifically with the core commitment to extend our global reach and reputation, becoming a preferred partner for international research, teaching and enterprise collaborations, and moving higher up international rankings year-on-year.

Despite the challenging environment, the University continues to evidence success across all aspects of its International Strategy.

Highlights

Global Graduates

The two key stimuli for growth this year were the January enrolment window and the impact of the Graduate Route (enabling postgraduate students to remain in the UK for two years to work), with particularly high enrolments in Health Science and Computer Science master’s courses.

International applications grew by 40% (13,172) from 2020/21 to 2021/22, enabled by processing improvements introduced by our Admissions team. Our international student recruitment has seen significant growth of 48% (1,287 students enrolled) since 2019/20.

Markets shifted dramatically during the two-year period, with China ousted from pole position in 2019/20 by India and Nigeria in 2021/22. Hong Kong and Saudi Arabia retained steady enrolments with growth overall from Gulf States and North America. EU numbers fell by approximately 90% as the effects of Brexit continued to be felt.

Following the pandemic, we welcomed a resumption of student mobility activity this year. The International Development Office secured £419k of funding support through the Erasmus, Turing and Santander schemes to support students with mobility opportunities. Participant numbers were lower than in previous years with a total of 170 outbound students (as the impact of the pandemic continued to affect planned travel). Despite the Turing Scheme only supporting outbound students, 232 inbound exchange and visiting students studied at Swansea this year.

We has secured £741k from the new Welsh Government programme Taith to support inbound and outbound education mobility, and a further £403k from Taith to support research mobility.

Global Partnerships

In Spring 2022, the University advanced its Trans National Education (TNE) strategy with an agreement with the largest female University in the world, Princess Nourah bint Abdulrahman University (PNU) in the Kingdom of Saudi Arabia, for the collaborative delivery of an MSc in Energy Innovation.

The University is also participating in the British Council and Universities Wales-led Going Global Partnership – Inclusive Leadership and Governance Exchange: Developing a Network of Best Practice between Wales and Vietnam, which focuses on training based around key higher education leadership and governance challenges. Hue University has been identified as a partner for this initiative, which may extend to joint training programmes, research, and staff and student mobility.

We have entered a twinning arrangement with Ukrainian university Petro Mohlya Black Sea National University (PMBSNU), under the initiative supported by Universities UK International. A Memorandum of Understanding is to be signed, establishing the relationship for a minimum of five years together with a Memorandum of Agreement under which Swansea will receive visiting students and staff for up to six months. PMBSNU academics have taken part in the annual SALT conference and a Ukraine project group has been set up to lead University-wide engagement.

The strategic partnership established with the University of Canberra in 2020 has seen significant growth. Focus has been on fostering research and teaching collaborations in Sport and Exercise Science and a bi-monthly joint virtual seminar series has been established. An institution-wide reciprocal student exchange agreement has been signed, which will allow student exchange to begin in 2023/2024. Discussions are ongoing to extend the partnership into new subject areas.

Our strategic partnership with Université Grenoble Alpes (UGA) has been strengthened by the continued implementation of a five-year strategic plan underpinned by working groups focused on joint research and teaching and a joint Human Centred AI Institute. The partnership is an excellent example of the power of cross-institutional collaboration, having delivered joint doctoral degrees, research, teaching and student and staff exchanges.

Activity within the Texas International Strategic Partnership started to recover momentum following the pandemic. This year saw the publication of 46 co-authored publications with collaborators at Texas partner institutions. Student exchange activity also resumed: 19 Swansea students participated in outbound exchanges to Texas partner universities, supported by US$20,000 in scholarships awarded by the British American Foundation of Texas. The inaugural Texas A&M University faculty-led programme saw a group of 35 students resident at the Bay Campus for five weeks.

Global Reputation

A research marketing campaign themed “great things happen when ideas collide” was implemented to support our ambition to achieve QS ranking world top 350 position by 2025. This year, we climbed 49 places (to 425) in the rankings, which is one of the largest rank improvements of any UK University within the top 500. The main driver of this success is our academic and employer reputation, where we saw the biggest improvement in the UK.

In November 2021, in partnership with Hillary Rodham Clinton, we convened an international, free-to-attend Summit to explore how the experience of the Covid response might be applied to other global challenges, including the climate crisis, digital inclusion and health inequalities. The three-day, virtual conference featured current and former world leaders, inspirational figures and global authorities. 3,000 attendees joined the event, which achieved a social media reach of more than 14.8m.

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PILLARS OF THE ESTATE STRATEGY
Estate Strategy
Key Influencing Factors and Strategic Intent
People
Finance
Innovation Built Form
Sustainability
and Operations Governance
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OUR DIGITAL AND PHYSICAL ESTATE

Digital

While Covid continued to dominate, the move to hybrid ways of teaching and working has gathered pace, enabled by our digital capabilities. We have provided an additional 25 hybrid teaching spaces, enabling our students to attend in-person or online as they need. At the same time, we have updated and modernised twelve lecture theatres and teaching rooms to improve the experience of students and academics.

The University Council approved the digital blueprint for an end-to-end network refresh, as well as the introduction of robust cyber-security capabilities and controls. Over the next four years, we will invest £15m in building a secure, high-speed, network that meets the needs of our students and researchers in the pursuit of their goals. Our Cyber programme will improve the protection of the University’s information assets, whilst simultaneously reducing the risk to our users from malware and phishing attacks.

In a further step to protect the University against the impact of a cyber-attack, we have changed our backup and restore capability to keep our data secure, pro-actively monitor risk, and recover more quickly in the event of an incident.

Through HEFCW funding of £2.8m, we have doubled the number of loanable laptops for students and provided 1,350 replacement laptops for academic staff. We have also accelerated our work on standardising the desktop workstation configuration to enable ‘hot desking’ to support the hybrid working culture.

We are working to improve the integration of our systems in a way that will allow more flexibility and resilience in the future, whilst also replacing custom-built applications with industry standard solutions. These measures will build a solid foundation for low risk, controlled, change.

Estate

The University’s physical estate is formulated upon six strategic pillars that seek to address constraints and threats relevant to the University estate. Programmes and interventions are identified within the respective pillars thereby defining time bound and measurable actions per pillar.

Our focus over the last twelve months has been to seek greater efficiencies through appropriate resourcing and operational interventions, particular focus being on the procurement and implementation of new operating models for catering along with the provision of hard facilities management services.

During 2021/22 the University continued its expansion of The Bay Campus with new grant funded buildings including £18.7m

on the Centre for Integrative Semiconductor Materials (CISM), which is due for completion in the autumn of 2022/23. Ahead of more significant investment on the Singleton campus, the University has been addressing backlog maintenance and improving facilities in, for example, the Digital Technium building, and to support the delivery of our new pharmacy programme.

The University has commenced the implementation of the first phase of a student accommodation strategy wherein three-year nomination agreements will be entered into with Purpose Built Student Accommodation in the Swansea central area.

An infrastructure needs assessment has been completed for the Swansea Bay Sports Park derived from stakeholder need and

demand analysis. This needs assessment will serve as the basis to inform future option appraisals that will lay the foundation for a major collaborative investment programme over the next decade in partnership with the Swansea City Council.

In 2022/23 the University will be working with consultants to develop a masterplan to reflect the delivery of the University’s Estate Strategy and to support and enhance the student experience.

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FINANCIAL REVIEW

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Highlights
2022 2021 2022 2021
Operating surplus / (deficit) (£78m) £28m Operating surplus / (deficit) as % income (22%) 8%
Operating surplus / (deficit) excluding Operating surplus / (deficit) excluding pension
pension adjustments £14m £24m adjustments as % of income 4% 7%
Total comprehensive income (£56m) £41m
EBITDA £44m £53m EBITDA as % of income 12% 15%
Net cash flow from operating activities £56m £55m Net cash flow from operating activities as % of income 15% 13%
Cash at the end of the year £165m £141m Liquidity days 143 168
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Scope of Financial Statements

These Financial Statements cover Swansea University, its subsidiary undertakings and associated companies and have been prepared in accordance with Financial Reporting Standard 102 (FRS 102) as interpreted by the 2019 edition of the Statement of Recommended Practice: Accounting for further and higher education.

Overview

Swansea University and its subsidiary undertakings saw an operating deficit of £77.5m in the year to 31st July 2022 compared to surplus of £27.8m for 2021. The deficit includes a non-cash pension cost of £93.5m (2021: credit of £4.3m), with the underlying operating surplus adjusted for the pension movement of £14.0m (2021: £23.7m).

INCOME AND OPERATING SURPLUS AS A % OF INCOME

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400 15%
10%
300 5%
Total Income
0%
200 -5% Operating surplus
-10% as % Income
100 -15% Operationg surplus
-20% adjusted for non-cash
0 -25% pension costs as % Income
2022 2021 2020 2019 2018
Millions
Percentage
%
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FINANCIAL REVIEW
Income
INCOME BY CATEGORY
Tuition Fee
£69m £64m
Funding body grants
2022 £69m £188m £62m £184m 2021 Research
£50m
Other income
£44m
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Tuition fee income increased in total by 2% to £188.4m. The number of overseas students enrolled in 2022 increased by 33% from the prior year, increasing tuition fee income from overseas students by £10.9m. This was largely due to the continued success of our January entry programmes with a 75% increase in overseas postgraduate enrolments compared to 2021. Home student numbers were affected by the A level grade inflation in the summer of 2021 and fell by 3% compared to the previous year, resulting in a decrease in home tuition fee income of £7.3m.

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TUTION FEE INCOME
200 188m 184m
171m 170m 169m
150
100 NHS
50 Overseas
0 Home (inc all part-time)
2022 2021 2020 2019 2018
Millions
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Funding body grants decreased by 13% to £43.9m in the year to 31st July 2022. Recurrent grants for teaching and research increased by £5.4m to £28.7m, whilst capital grants fell by £7.9m to £2.7m; this being a decrease in grants for capital equipment. During the pandemic in 2021, the University received grants relating to Covid which were not received during 2022. In 2021, hardship grants of £8.8m were received to support students through Covid, with further grants to support cleaning, outdoor spaces and students who had to self-isolate or quarantine. During the year to 31st July 2022, £6.3m of non-capital grants were received to support the digital and estates infrastructure.

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FINANCIAL REVIEW

FINANCIAL REVIEW

Research income, excluding capital grants, increased by £3.8m to £65.9m in the year to 31st July 2022, reflecting the continued success in expanding the research grant capture in recent years. Income from Research Councils increased by 26.5% to £25.6m, with research grants from other funders remaining comparable to the prior year.

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RESEARCH GRANTS
Research Councils
100 95m
UK-based charities
80 69m
60 62m 56m 52m UK industry and commerce
Government (UK and overseas)
40
Other
20
0 Capital Grants
2022 2021 2020 2019 2018
Millions
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Expenditure

Expenditure in the year (excluding USS valuation adjustments) increased by £16.9m to £354.1m. Staff costs decreased by 2.2%. Other operating expenditure increased by £18.9m to £134.9m as costs increased and spend returned to more normal levels following the Covid pandemic.

EXPENDITURE EXCLUDING USS PENSION ADJUSTMENTS

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£8m £8m
29m 26m
Staff costs
Other operating expenses
£135m £183m £116m £187m
2022 2021
Depreciation
Interest
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Other income increased by £4.7m to £68.7m in the year to 31st July 2022.

Income from residences increased to £26.5m during 2022 from £22.2m in the previous year following an increase in room occupation and a rental charge increase. During the pandemic in 2021, a number of rooms were unoccupied for the year, and rent rebates of £2.7m were given to students who were unable to temporarily occupy their accommodation. Other income from academic departments increased from £4.4m in 2021 to £10.1m in 2022. NHS income received in respect of the Faculty of Medicine, Health and Life Sciences during 2022 decreased by £5.7m from the prior year to £6.2m.

Staff costs (excluding USS adjustment) decreased by 2.2% to £186.1m in the year to 31st July 2022.

Staff full time equivalent (FTE) numbers reduced further during 2022, decreasing by 81 FTE.

Staff costs (excluding restructuring costs) as a percentage of income remained constant at 49% as both staff costs and income increased during the year.

STAFF COST AS A % INCOME

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190 60%
186m 183m
185
181m
180 178m
55%
175
170
165 50% Staff cost
160 158m
Staff cost as a % of income
155
45%
150
145
140 40%
2022 2021 2020 2019 2018
Percentage
%
Staff costs Millions
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FINANCIAL REVIEW

The USS pension charge or credit is calculated annually to reflect the estimated change in expected future contributions and is based on the valuation and discount rates on 31st July. This is an accounting adjustment and not a cash transaction.

The latest actuarial valuation of the USS scheme was 31st March 2020. At the valuation date, the value of the assets of the scheme was £66.5bn and the value of the scheme’s technical provisions was £80.6bn indicating a shortfall of £14.1bn in the total scheme. This revaluation, with the increase in the scheme deficit, resulted in an expense of £93.5m in the year to 31st July 2022. This follows a USS credit in 2020 of £4.3m and highlights the volatility created by the pension accounting adjustments required by FRS 102.

Non-Pay expenditure increased by 16.3% to £134.9m during 2022, following a 12.3% increase during 2021. These increases reflect the significant investment that has been identified as being needed to deliver the University strategy.

The largest non-pay costs for the University are premises costs at £24.2m followed by consultancy and professional services at £23.1m, both increasing during 2022 at 7% and 29% respectively. Within consultancy and professional fees, there was an increase of £3.5m as the new soft FM contract was awarded. Spend on non-capitalised equipment also increased during the year by 42% to £16.2m with additional spend on operational equipment and on IT equipment. Costs such as travel and catering increased by over 250% as the Covid pandemic ended.

OTHER OPERATING EXPENSES 2022

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Scholarships, Heat, light, Consumables
power and
bursaries, refurbishment, Repairs, water
prizes and fee maintenance
contributions and building
costs
Consultancy,
Rent, rates professional
Books,
and leases services publications,
Other exp periodicals Employee
related
and agency and library
services expenditure
Non-capitalised Student
recruitment
equipment and
Travel and
advertising conference Subscriptions
and
costs contributions Office exp Catering
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FINANCIAL REVIEW
Expenditure by Activity
£16m £24m
Academic departments
Academic services
£60m £128m £60m £115m Research
Residences, catering
2022 £38m 116m £187m 2021 and conferences
£34m
Premises
Professional services
£57m £54m
£28m £25m £25m Other activities
£30m
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Expenditure by Activity

Professional service costs remained consistent year-on-year at £59.7m. Professional services include student related spend on health and sports facilities, bursaries, scholarships, and student funding as well as central functions such as Human Resources and Finance. During 2022 there was an increase in bursaries of £2.6m with spend on general education increasing by £4.6m in total. Costs for administrative services rose by £8.5m to £32.8m. There was a decrease in spend on student facilities of £10.2m following the one off HEFCW grant funding received in 2021 including the £8.8m spend on supporting students during the Covid pandemic.

Costs across all activities in the University increased during the year to July 2022 with the exception of ‘Other’.

Academic Department spend increased by 11% to £128.3m with Academic Services increasing spend by 23% to £30.5m.

Spend on premises increased by 12% to £37.9m following an increase in repairs, maintenance, and general estates costs of £3.4m and grant funded spend of £0.9m. The increase in 2022 was in addition to the prior year increase of £3.7m which marked the start of significant spend on backlog maintenance, and necessary investment in the estate and related infrastructure.

Balance Sheet

The University has a strong balance sheet despite net assets decreasing by £55.9m in the year to 31st July 2022. Non-current assets increased by £11.4m whilst current assets increased by £37.0m following an increase in cash (of £23.7m) and a change to the accounting for research debtors and creditors (of £14.7m), whilst other debtor and receivables decreased by £1.4m. An increase in capital grants received in advance of £18.0m along with an increase in general accruals of £14.7m, and the change to the accounting for research debtor and creditors, contributed to the increase in creditors due within one year of £46.3m, whilst the pension provision increased by £66.7m. Creditors falling due in more than one year decreased by £8.8m following loan repayments of £5.7m and the liability on the service concession reducing by £3.1m.

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FINANCIAL REVIEW

FINANCIAL REVIEW

Covenants

In order to satisfy the loan conditions, set out by the European Investment bank, the University must ensure compliance with the following covenants:

  1. The ratio of Net Financial Indebtedness to Adjusted EBITDA shall not exceed 6.5:1

  2. The ratio of Net Operating Cashflow or Debt Servicing Costs shall be at least 1.1:1

  3. The ratio of Adjusted Financial Indebtedness to Revenues shall not exceed 85%

  4. The University shall comply with any other condition which is set in respect of HEFCW.

At 31st July 2022, all the covenant conditions were met.

Capital Expenditure and Capital Grant Receipts

improving the quality of the facilities on the Singleton campus; to date, these have generally been smaller projects, with work, for example, on the Digital Technium building (£1.2m) and a continuation of the capital works associated with the delivery of our new Pharmacy programme (£0.8m).

Capital expenditure peaked in the years up to 2018 with the creation and expansion of the Bay Campus and is now increasing again with £39.1m spent in 2021/22.

The Bay Campus continues to be expanded strategically with new grant funded research buildings, including £18.7m being spent on the Centre for Integrative Semiconductor Materials (CISM), which is due for completion in the autumn of 2022/23. There is also a focus on

A similar profile of increasing spend can also be seen on capital equipment which increased to £13.0m from £11.3m in 2021.

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50
40 43m
26m
30 24m
Buildings
20
12m Equipment
10 8m
4m
13m 11m 7m 9m Capital grants
0
2022 2021 2020 2019 2018
Millions
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Cash and Debt

Cash increased to £164.7m on 31st July 2022, from £141.0m at 31st July 2021.

The University funded £14.8m of the capital expenditure from its’ cash reserves and also used £8.8m of cash to service its’ borrowing and other financing arrangements.

The University’s financial strategy is to generate sufficient cash to provide resilience, create the necessary levels of working capital and to enable investment in the estate and infrastructure projects.

Net indebtedness reached a five-year low at £62.3m due to the increase in cash at 31st July 2022 and a decrease in the loans and service concessions as repayments were made and annual liabilities released.

Net cash inflow from operating activities decreased by £1.5m to £56.2m in the year to 31st July 2022, from £54.8m in 2020/21. As a percentage of income this change in net cash inflow from operating activities is an increase from 13.4% in 2020/21 to 15.2% in 2021/22.

The service concession arrangement debt on the residences reduced to £119.0m at 31st July 2022 following the unwinding of the lease liability (£3.0m).

The surplus in the year after adjusting for significant non-cash items was £32.7m. Creditors increased by £28.5m, and debtors increased by £13.9m during 2022, all both contributing to the increase in cash.

The University has committed to receiving a loan of £2.4m from Salix Finance Ltd for decarbonisation projects. This loan is at 0% interest and is repayable over 8 years. By At July 2022 only £0.1m of the loan had been received, with the remainder due in instalments by February 2023.

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200
150
100
50
0 Cash
2022 2021 2020 2019 2018
-50 Loans
-100
Service concession arrangements
-150
Net Indebtedness
-200
-250
Millions
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Pension Provisions

The University is a member of the Universities Superannuation Scheme (USS) which provides pensions for academic and professional staff. At the last triennial valuation in March 2020 the scheme had a deficit of £14.1bn. During the year, the deficit allocated to the University increased from £43.0m to £134.3m. £2.6m was paid in deficit contributions and interest in the year was relatively low at £0.4m. £93.5m was charged, increasing the provision, which reflects the revaluation and the deficit recovery agreement.

The University also operates a CARE scheme, Swansea University Pension Scheme (SUPS) for non-academic employees, which is closed to new entrants. During the year the SUPS deficit decreased from £61.2m to £36.6m as a £23.7m actuarial gain in comprehensive income was recognised.

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FINANCIAL REVIEW

Future outlook and going concern

The primary objective of the University’s Financial Strategy remains the generation of sufficient cash resources to deliver its’ strategic objectives and ensure long term financial sustainability. This is proving to be a critical factor in the University’s ability to sustain itself in an environment of ongoing uncertainty.

The consequences from Brexit and Covid continue to impact the University’s activities and the current cost of living crisis creating new strategic risks for the University.

Despite the challenging external context, the University is in a strong financial position at the end of 2021/22, generating an operating surplus (before USS pension adjustments) of £14m and net cashflow from operating activities of £56.2m, resulting in £164.7m of cash at the year end.

This has been achieved by focussing on the following areas:

As the primary driver of income for the University, student recruitment from both home and overseas remains a key risk for us.

The University saw a shortfall in home undergraduate numbers in 2021/22 due primarily to the A level grade inflation which occurred as a result of the pandemic, resulting in fewer students coming through Clearing. However, in contrast, the University’s overseas recruitment far exceeded expectations for this year resulting in a 2% increase in overall tuition fee income. This was largely due to the popularity and success of our January entry programmes.

Our enrolments for 2022/23 reflect a recovery in home undergraduate recruitment to the levels we saw pre-pandemic in 2019/20, and continued growth in postgraduate overseas recruitment.

Early indications are that recruitment to both home postgraduate and overseas undergraduate programmes is not going to be at forecast levels for 2022/23. However, we expect overall tuition fee income to be achieved due to the increased demand for January entry overseas postgraduate programmes.

The University is actively exploring new Trans National Educaton opportunities for in-country delivery which will contribute to the medium-term sustainability of overseas recruitment.

The unprecedented inflationary environment is a cause for concern, with the cost of living crisis affecting not only the University but also our staff and students.

Whilst the national negotiations for the 2022/23 pay award have ended and an overall increase of 3.19% (higher for lower grades) has been implemented with effect from August 2022, the national trade unions remain dissatisfied and have balloted for strike action. With staff costs representing 50% of income, any significant increases in pay will inevitably create additional financial pressures.

The finalisation of the USS Triennial Valuation 2020 has created a degree of certainty and the improving funding position of the Scheme indicates that the next triennial valuation in March 2023 may provide the employers and employees with some options.

Brexit was already impacting non pay costs due to the higher costs of importing goods and consumables, but the war in Ukraine is having much larger and far-reaching consequences. Whilst, the University had pre-bought its energy to April 2023, through its’ contract with TEC, the most recent price negotiation by TEC to September 2024 will result in significant increases in the cost of utilities. The University has already taken steps to reduce the cost of, and demand for, energy through a range of decarbonisation and related projects, but further action is likely to be necessary to manage the most recent price increase.

The Ymlaen programme, aimed at aligning existing processes, structures, and systems to support a growth in scale and diversity of activities through greater operational effectiveness should also play an important role in ensuring its financial sustainability.

The University recognises that significant investment in the estate and IT infrastucture is needed to remain an attractive place to wrok and study, and to meet our ambition to achieve Net Zero by 2035. The University has also benefited from the additional funding provided by the UK and Welsh governments. This has enabled us to invest in digitisation and decarbonisation projects which has helped to kickstart the significant investment in IT infrastructure and the campus that is essential to deliver the University strategy. We have earmarked £110m from our cash reserves to fund capital investment to 2026 and we are developing a funding strategy to finance the longer-term requirements.

A Student Accommodation Strategy has been developed to address the need for high quality beds on Singleton Campus, and for purpose built accommodation in the city centre from 2023, which will address any short-term shortfall and increased demand. The high level of inflation will impact the cost of providing student accommodation. The University is in discussions with its’ accommodation providers and the Students’ Union, and considering what options are available to manage these pressures whilst also supporting its student population.

Whilst the whole of the higher education sector is being affected by the extraordinary national and international political and economic events, the University is confident that it will be able to meet all of its future obligations and commitments and remain within its banking covenants for the next twelve months and will continue to do so for the foreseeable future.

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Sarah Jones, Goi Ashmore,
Chief Financial Officer Treasurer
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PRINCIPAL RISKS AND UNCERTAINTIES

All risks are assigned to a category to allow analysis and comparison. The number of risks currently on the University risk register in each principal category is summarised below. The distribution of risks continues to reflect the uncertainties that exist in the external environment, including the geo-political issues and the ongoing consequences of the Covid pandemic on staff and students.

The University maintains a university-level Risk Register which is formally reviewed quarterly by the Senior Leadership Team, Assurance and Risk Committee and Council, but is also updated as and when appropriate if it is clear that risks are changing more rapidly.

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Digital
Estate
Finance
Governance
Reputation Very Low
Research Low
Medium
Staff
High
Student Experience
Very High
Student Recruitment
1 2 3 4 5
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PRINCIPAL RISKS AND UNCERTAINTIES

The table below identifies the highest ranking risks from the University register, according to the residual risk score.

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Risk area Risk description Risk management
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Student experience Wellbeing Services –the University is unable
to meet the demand resulting in impacts on student
support services and student experience		 • An independent review of student wellbeing
and mental health support services has been
undertaken and recommendations and an action
plan are now being implemented.
• Additional funding has been provided for
increased resources in this area
Digital Cyber Security –inability to protect University
systems leads to a successful cyber attack		 • Signifcant multi-year investment has been agreed
• All cyber processes and policies are under review
• A Cyber Awareness programme is to be implemented
Digital Core Business Systems –lack of end to end and
integrated systems leads to diffculties in delivering
necessary services to staff and students		 • Analysis of core business systems, development
of business cases and approval of funding
for investment
Student experience Learning and teaching –poor teaching quality,
student:staff ratios, learning environment and
support services lead to poor student experience		 • Development and implementation of Learning
and Teaching strategy
• Balance portfolio of investments between
teaching and research
• Review student facilities on both campuses and
work with the Estates team to develop and improve
Finance Sustainable budget –inability to deliver forecast
income and expenditure resulting in failure to create
surpluses required for investment and to deliver the
University Strategy		 • Monthly budget reporting and monitoring
and quarterly reforecasting
• Detailed fnancial assessment and stress testing
of inherent risks
• Review and prioritise investment plan to manage
cash and surplus positions
• Deferral of non-essential spend if necessary

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PRINCIPAL RISKS AND UNCERTAINTIES
Risk area Risk description Risk management
• Move to focus on recruitment in year to reduce
reliance on clearing
• Introduction of January entry programmes to provide
Student recruitment – inability to meet forecast second opportunity to recruit
Student recruitment student numbers resulting in reduced financial • Identify sources of diversity for future revenue,
sustainability including Trans National Education opportunities
and different modes of delivery
• Identify markets for the development of an
enhanced overseas presence
• Continue to actively engage regularly with
Trade Unions and the Students’ Union
USS pension scheme – the changes that have been
• Develop business continuity plans to minimise disruption
Finance made as a result of the 2020 valuation lead to staff
• Develop a communications strategy
unrest, industrial action and disrupt service delivery
• Industrial Action Working Group to be reinstated
if required
• Regular communication with staff
• Health and wellbeing services monitored
• New Working Environment plans to incorporate
Staff morale – sustained increased workloads flexibility for employees
Staff lead to reduced staff morale, resulting in increased
• Ymlaen 2025 programme to drive improvements in
stress, absence and turnover, reduced wellbeing,
work systems, processes and workload
engagement and productivity
• People and Culture Working group established to
address some of the concerns of the Workload Survey
• Recognition of staff efforts
• Student accommodation strategy including purpose-
Student Accommodation – insufficient funds or
built student accommodation in the city centre
borrowing capacity leads to inability to invest in
Estate student residences, resulting in failure to deliver • Estates Strategy which includes Singleton Campus
accommodation of the quality that is expected by residences
students and for commercial use
• Review other funding options to improve flexibility
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PUBLIC BENEFIT STATEMENT

PUBLIC BENEFIT STATEMENT

Swansea University has been a registered charity (no.1138342) since October 2010. Our constitutional framework is defined in our Charter and Statutes and Article three of the Supplemental Charter highlights the University’s objectives “to advance learning and knowledge by teaching and research, and to engage in activities to promote and contribute to cultural, social and economic development within Wales and beyond”.

In setting and reviewing objectives and activities and in making decisions, the University’s Council has had due regard to the Charity Commission’s public benefit guidance and supplementary guidance on the advancement of education.

Civic Mission

We are proud to belong to the City of Swansea, the wider Swansea Bay City Region and to Wales, and we celebrate that heritage. With campuses in three local authority areas, we recognise that we are the region’s university, and that we have a responsibility to work with and for our community and Wales. We seek to deliver local solutions to the global challenges that affect us all.

While our civic mission is rooted in our immediate region it extends to the impact we seek to make in communities worldwide. We attract colleagues and students to Swansea from all over the world and we are committed to ensuring that the education and experiences we provide and the research we pursue are relevant both locally and internationally. Above all, we seek to work in genuine, open and equitable partnership, and to learn as much from others as we can.

We continue to nurture effective relationships with our key stakeholders, including local authorities, health boards and Further Education Colleges across the Swansea Bay City Region, as well as the region’s major employers (including the DVLA and Tata Steel). We have close working relationships with museums, theatres and other cultural institutions in the region, and with sports clubs and sporting bodies locally and nationally.

Student Experience

Our students make a significant contribution to local society through volunteering and outreach programmes, and they are part of our international community. Our aim is to produce global citizens who will go out into the world and make a difference. For example, our Discovery Student Volunteering charity supported c.600 student volunteers, delivering around 8,000 volunteer hours across 25 community-based projects.

Learning and Teaching

The sharing of knowledge to nurture independent, critical thinking is fundamental to our purpose. It enables our students to be resilient in the face of global challenges and to adapt to the changing world of work. We celebrate our Welsh heritage and are proud to be part of a bilingual nation. We respect students’ right to study through the medium of Welsh and will expand our range of opportunities for them to do so. We will also work to maintain our status as a community that balances research and teaching excellence.

Our graduates work in an increasingly connected world that demands appreciation and understanding of other cultures and countries. We provide imaginative opportunities for our students to study and work abroad during their degree programmes, and to relate their learning to the challenges faced by communities around the world.

Research

Our research has impact because it is directed to meet the needs of our partners in industry, commerce, academia and the public sector. It changes lives, drives innovation and regional growth, and is aligned to the UN Sustainable Development Goals. It impacts on our culture and society as well as on our health and wellbeing, our economy and our planet. We drive policy change nationally and internationally.

We are at the leading edge in many areas including: advanced manufacturing and innovation in clean energy and the digital economy; nanohealth and the analysis of large scale health data; labour market evaluation; terrorist use of the internet, and preserving our industrial heritage. We are exploring new ways to assess and mitigate the risks of the climate crisis and are working to protect the most vulnerable in our society and to enrich all our lives through our understanding of history and the arts.

Enterprise

We are an exceptionally collaborative and entrepreneurial university. We were founded by industry, for industry, and we remain true to the ambitions of our founders in that we work with industrial, commercial and public sector partners for the benefit of our region and nation. We value our partnerships with anchor companies and SMEs in Wales – more than 40 companies are co-located with us on our campuses – and with the many organisations we collaborate with internationally.

We work in tandem with our partners to exchange knowledge and develop skills on an ethical and equitable basis. While we will lead collaborations, we will listen to our partners and will learn from them. Our role is to meet their needs, stimulate their growth and support their sustainable development as much as it is to push boundaries and innovate.

Supporting access to education

A key commitment set out in Our Strategic Vision and Purpose is to further widen and deepen access to education, promoting lifelong, inclusive and equitable learning opportunities. We play an active role in widening access and supporting education. Swansea University is the lead partner in the HEFCW-funded South West Wales Reaching Wider Partnership and also funds and delivers the Step Up to Swansea University programme as part of the Reaching Wider Institutional Plan. Both programmes aim to increase participation in higher education by people from underrepresented groups and communities in South West Wales, with a specific focus on the Welsh Index of Multiple Deprivation, looked-after children and care leavers.

Care experienced young people have the opportunity of visiting the University to take part in activities aimed at raising educational aspirations and their awareness of university life.

We work with universities, colleges, schools and community partners across South West Wales to provide inspirational learning and development opportunities for adults and families, which can act as stepping stones to further and higher education.

We also deliver STAR (Study Tips to Achieve Results) Days to equip students with techniques to prepare successfully for GCSE exams. Pupils work in small groups with a current university student and there is an opportunity to discuss pathways options after their GCSEs.

Supporting Sustainability

Our Strategic Vision and Purpose recognises that the climate crisis remains society’s biggest threat. We align our work to the Sustainable Development Goals (SDGs) and have made a commitment to be a carbon-zero university by 2035. The University’s strategy also recognises that our work is enabled by a commitment to financial and environmental sustainability.

In 2020 the University set a target to achieve zero scope 1 & 2 carbon emissions from building and fleet by 2035, and a 50% reduction in scope 3 emissions from use of services and our supply chain by the same date. A Path to Zero plan has been developed with the Carbon Trust and Welsh Government Energy Service detailing the necessary actions and projects to support progress towards achieving this target. A 13-year investment plan is now being developed in support of the 2035 target.

Through HEFCW funded SALIX finance we have a programme of Path to Zero building, utility, and infrastructure decarbonisation planned. In 2021/22 this programme of work included £776k for two new solar photovoltaic systems at Bay Campus and five new systems at Singleton Campus, £165k Building Management System (BMS) control upgrades and £1.5m for internal and external LED lighting at Singleton and Bay Campus respectively. Looking forward the

Our Swansea Academy of Inclusivity and Learner Success (SAILS) also works to provide inclusive academic and pastoral support for our diverse student population. SAILS delivers a range of projects to enable individuals from all backgrounds to enter and transition into higher education; to stay at university and complete their studies; to progress from level to level, and to achieve the best degree outcomes they can.

We deliver subject-specific outreach projects to support pupils, including the Technocamps initiative, which delivers hands-on workshops for secondary schools to encourage pupils to take up computing and STEM subjects at GCSE, A level and beyond, and the Further Maths Support Programme Wales, which provides a range of inspiring activities and events for students in years 9-13. We also provide progression pathways through foundation years in Engineering, Science, Arts and Humanities and the School of Management for individuals unable to gain direct entry to the first year of a full-time undergraduate degree.

The Swansea University Science for School Scheme (S4) is a widening access, STEM outreach programme established in 2012. It delivers research-led activities, including hands-on workshops, summer schools and science showcases, as well as online education to young people in South Wales in areas experiencing poverty and disadvantage. A recently published analysis of S4’s work showed that the scheme is having a positive impact on young people from poorer areas by improving their career aspirations, and opinions on studying science at university.

2022/23, a £3m investment is planned to build upon the programme of works above and include decarbonising upgrades to heating ventilation and air conditioning (HVAC), building fabric improvements such as insulation and further renewable energy generation.

In November, we were proud to be awarded a Queen’s Anniversary Prize in recognition of our Materials Science and Engineering research that is leading a revolution in renewable energy technologies, particularly solar electricity and heat generation and storage. The Prize acknowledges the work of our SPECIFIC academic and industrial consortium, which was established in 2011 to research the development of efficient low-cost photovoltaic technologies that convert solar energy into electricity.

Later in 2022, two Swansea bioscience students won the Queen’s Platinum Jubilee Challenge, successfully securing funds to implement carbon sequestration and biodiversity improvement projects such as campus based green roof installations, wildflower planting and Sphagnum moss growing for planting on in wider Welsh peatland restoration projects.

We are delighted to have been ranked within the top 200 in the Times Higher Education Impact Rankings 2022, which aim to capture universities’ impact on society based on their success in delivering

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PUBLIC BENEFIT STATEMENT

the United Nations’ Sustainable Development Goals (SGDs). This is the first year Swansea has participated in these rankings. While we ranked in the top 200 overall, we placed within the top 20 for three SDGs:

We are ranked in the top ten of the People and Planet University League, which ranks UK universities by their environmental and ethical performance. We have climbed more than 110 places since 2011 as a result of our ambitious sustainability strategies, Biodiversity Action Plan, Carbon Management Plan and Environmental Management System. Our Sustainability and Climate Emergency Strategy (20212025) is aligned to our overarching Strategic Vision and Purpose and commits us to actions across four key themes: the Climate Emergency, our natural environment, our working environment and our travel. The Strategy ensures that we will also contribute to other development goals, including: Wellbeing and Human Health, the Wellbeing of Future Generations, and the United Nations’ Sustainable Development Goals, and we continue to work collaboratively across our research community to achieve a better and more sustainable future for all.

We continue to attract funding to support our research into a broad range of climate-related and sustainability issues. Our Energy Safety Research Institute (ESRI) is delivering pioneering low-carbon energy research and innovation, where researchers have developed technology which has the potential to capture half a billion tonnes of carbon each year. A collaboration between ESRI researchers and insulation producer ROCKWOOL Limited has seen the installation of a new carbon dioxide demonstration unit at the company’s manufacturing plant in Bridgend, South Wales.

Our Glaciology Research Group experts work with teams at an international science station on the Greenland ice shelf, drilling deep into the ice to understand climate history, and we are exploring how climate change influences animal movement and their habitats. Our chemical engineers are finding new ways to capture and reuse carbon by turning it into useful products to help tackle the climate crisis, and our commitment to promoting a circular economy has led to international recognition from the Ellen Macarthur Foundation, which has named Swansea as an exemplar university for the range of activities it carries out, not only through research and teaching but also in the way it runs its campuses.

We have also achieved the Carbon Trust Standard for Waste certification for our work to reduce waste around our campuses, and enjoyed success in the Laboratory Efficiency Assessment

Framework (LEAF), which encourages participating universities to make their research and teaching more resource efficient and sustainable. In the past year, The Carbon Trust have also produced a detailed decarbonisation action plan for the University that looks at the practical steps required to achieve net zero targets.

In order to minimise waste, Warpit, has been introduced to distribute, reuse and recycle redundant resources such as furniture from across the organisation. Since the launch at the beginning of 2022, 11,561kg of CO2 has been saved and 3,730 kg of waste has been avoided, equating to a saving of £19k. Sustainability has been included in the procurement of key contracts and services contracts such as the new catering contract, to ensure it is integrated into the contract. We are working towards our Fairtrade University accreditation in partnership with the Students’ Union as part of the UK 2021-23 cohort of university’s working towards Fairtrade status.

Through our SWell app, we have continued to engage more than 50% of staff and have nudged behaviours towards lowering our individual and collective carbon footprints. This year also saw the expansion of the scheme to include students for the first time. The SWell platform recently won the Health and Wellbeing category at the national JUMP awards for logging the highest number of positive actions from across 50 other UK university and businesses with similar sustainability engagement apps.

We increased knowledge of wildlife on campus and in the Crymlyn Burrows, Site of Special Scientific Interest, adjacent to the Bay Campus. We delivered a year-round programme of walks, talks and other events, including a community day on the Bay that saw almost 100 local community members joining us on campus to discover their local environment. In addition, staff and students worked with Buglife to plant over 2,500 wildflower plants at the Bay, helping to create pollinator corridors. In partnership with the Conservation Society, the University has also achieved silver in the ever popular Hedgehog Friendly Campus accreditation.

The cycle to work scheme continues to facilitate sustainable active travel and recently saw an increase in uptake when the limit was increased to encourage greater participation. The University has once again been awarded the Gold Standard Cycle Friendly employer award and has recently signed a joint city-wide travel charter to progress sustainable, active travel and seen month on month record breaking growth in the number of people using the University run, city wide, Santander bike hire scheme, with over 100,000 users since its launch in 2018.

CORPORATE GOVERNANCE AND STATEMENT OF INTERNAL CONTROL

The University is committed to the highest standards of openness, probity and accountability, conducts its affairs in a responsible manner and has in place a Whistleblowing (Public Interest Disclosure) Policy to enable staff, students and other members of the University to raise concerns that are in the public interest.

The University conducts its activities in accordance with both the Committee of University Chairs (CUC) Higher Education Code of Governance and Higher Education Senior Staff Remuneration Code, and in accordance with the Nolan principles identified by the Committee on Standards in Public Life (selflessness, integrity, objectivity, accountability, openness, honesty and leadership).

Constitution and Powers

approved by the Privy Council in 2021. The University registered as a charity in October 2010 (1138342).

The University is an independent corporation, whose legal status derives from a Royal Charter originally granted in 1920. Its objects, powers and framework of governance are set out in its current Charter (‘the Supplemental Charter’), approved by the Privy Council in 2007, and it’s supporting Statutes, the latest amendments to which were

The Charter and Statutes require the University to have three separate bodies (Council, Senate, and Court), each with clearly defined functions and responsibilities, to oversee and manage its activities:

Council

and experience matrix. None of the lay members receives any payment, apart from the reimbursement of expenses, for the work they do for the University. Lay members of Council serve for a period of four years but may be re-appointed for one further period of four years.

The Council, which is established by the University’s Charter, is the governing body and thus the supreme authority of the University, which means that it is ultimately accountable for the conduct and activity of the University and its representatives. The Council’s membership, powers and duties are set out in Statute 5, which is available on the University’s website. The Council is responsible for determining the strategic direction of the University, and for the finance, estates, investments and general business of the University.

The University’s governing documents currently define lay members as not members of staff or registered students of the University. The University is reviewing its institutional practices in light of the Guide on Independence for Lay Members developed and agreed by the Welsh Secretaries and Clerks in June 2020. This Guide was in response to the independent review of governance in Wales, led by Gillian Camm (the Camm Review), published in February 2020.

The Council meets at least four times a year and exercises its responsibilities through the executive management and standing committees set out below. During 2021/22, the Council held seven meetings, including three special meetings, that focused on governance, financial and regulatory matters. Five of the meetings were held in person, one was held as a hybrid meeting, and one of the special meetings was held remotely. The Council received reports on the University’s response to the Covid pandemic.

Council members are required to make a declaration of interest on their appointment to Council, to review their declaration at least annually, and to update their declaration whenever there is a change. Declarations are reviewed by both the Chair and the Secretary of Council, in accordance with the University’s Declaration of Interest Policy and procedure, to ensure there are no potential or perceived conflicts, or, if there are, to ensure they are dealt with appropriately. The Secretary to Council also maintains a register of interests for all members of Council, which is reviewed annually by the Governance and Nominations Committee. At the start of Council and Council Committee meetings, all members are asked to identify any specific items on which a declared interests may have a bearing and, if required, members do not take part in the relevant discussion or decision, and/or may leave the meeting at the appropriate point.

The Council comprises independent (described as lay), staff and student members appointed in accordance with the Statutes and Ordinances of the University. The membership of the Council shall not exceed 19 and the majority of Council members are non-executive lay members who are not members of staff or registered students of the University. The Council is committed to promoting equality and diversity and vacancies for lay members are advertised externally, with expressions of interest particularly welcome from underrepresented groups. Applications are considered by the Governance and Nominations Committee and matched against the current skills

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CORPORATE GOVERNANCE AND STATEMENT OF INTERNAL CONTROL

Any declarations identified and member’s participation in specific items is recorded in the minutes of the meeting. The Council has adopted the role description for the Secretary to Council, developed in response to the Camm Review, which contains a clear statement of the Secretary’s accountability for highlighting issues of independence or conflict to the Chair.

Members of the University’s Council who served during the year ending 31st July 2022 and up to the Council meeting at which the financial statements were signed are listed below. Attendance at Council meetings (expressed as the number of Council meetings attended out of a total of meetings the member was due to attend) is provided below.

CUC Higher Education Code of Governance

effectively as the governing body of the University. A number of recommendations were identified and have been implemented to ensure the Council continues to, and enhances its alignment with the Code, and to ensure a fit-for-purpose Council. The next independent review of governance effectiveness is scheduled to be conducted during the 2022/23 academic year. In respect of the year ended 31st July 2022, the Council can report that there was no primary element of the Code of Governance with which the University’s procedures was not consistent.

The University is committed to high standards of corporate governance and to continuously improving its governance in line with best practice within the higher education sector. The University’s governance structure has been developed to align with the principles and practices set out in CUC Higher Education Code of Governance. The Council commissioned an External Effectiveness Review in 2019, which was undertaken by James O’Kane, former Registrar and Chief Operating Officer of Queen’s University Belfast. This External Review concluded that the Council was discharging its duties appropriately and

As the University is a registered charity Council also acts as the Board of Trustees and members of Council are also Charity Trustees.

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Council Member Category Risk management
Mr Bleddyn Phillips, Pro-Chancellor and Chair of Council (until 12th December 2023) Lay 7/7
Sir Roderick Evans, Pro-Chancellor (until 31st March 2025) Lay 4/7
Mr Goi Ashmore, Treasurer (until 31st July 2024) Lay 7/7
Professor Paul Boyle, Vice-Chancellor (until 25th July 2024) Staff 7/7
Dr Kerry Beynon, Co-opted member (until 3rd February 2024) Lay 7/7
Professor Edward David, Co-opted member (until 3rd February 2024) Lay 6/7
Professor Kathryn Monk, Co-opted member (until 26th January 2026) Lay 6/7
Dr Angus Muirhead, Co-opted member (until 20th March 2024) Lay 6/7
Ms Elin Rhys, Co-opted member (until 3rd February 2024) Lay 4/7
Ms Anne Tutt, Co-opted member (until 5th July 2024) Lay 7/7
Mrs Marcia Sinfield, Co-opted member (until 30th November 2024) Lay 7/7
Professor Keshav Singhal, Co-opted member (until 30th November 2024) Lay 2/7
Professor Nuria Lorenzo-Dus, Appointed by Senate (until 4th December 2022) Staff 5/7
Dr Sian Rees, Appointed by Senate (until 4th April 2022) Staff 3/4
Professor Sue Jordan, Appointed by Staff (until 26th September 2023) Staff 7/7
Mr Heath Davies, Appointed by Staff (from 10th February 2022) Staff 2/4
Ms Katie Phillips, President of Students’ Union (until 30th June 2022) Student 6/6
Ms Liza Leibowitz, Students’ Union (until 30th June 2022) Student 5/6
Ms Esyllt Rosser, President of Students’ Union (from 1st July 2022) Student 1/1
Mr Jonathan Davies, Students’ Union (from 1st July 2022) Student 0/1
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Review of Governance of the Universities in Wales

The Council formally adopted the Governance Charter for Universities in Wales and Commitment to Action published in September 2020 in response to the Camm Review and is committed to implementing the recommendations many of which align with recommendations arising from the Council’s own External Effectiveness Review. Building on the progress made in the previous year, key developments in 2021/22 included:

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CORPORATE GOVERNANCE AND STATEMENT OF INTERNAL CONTROL

Senate

The Senate, which is established by the University’s Charter, is the academic authority of the University and draws its membership entirely from the academic staff and students of the institution. The Senate’s membership, powers and duties are set out in Ordinance 4, which is available on the University’s website. It is chaired by the Vice-Chancellor and its membership also includes the Provost, the Pro-Vice-Chancellors, Pro-Vice-Chancellors/Executive Deans, all professorial staff, Chairs and Deputy Chairs of the Boards of the Learning and Teaching Quality Committee and the Faculty Associate Deans, fourteen elected non- professorial staff representatives and eight students appointed by the Students’ Union. The Senate normally meets four times each year. During the 2021/22 academic session, the Senate held four meetings of which three were held remotely and one as a hybrid. The business focused on the University’s continued response to Covid, the University’s quality assurance processes and

Court

The Court, which is established by the University’s Charter, is a large, mainly formal body which serves as a forum for the engagement of the wider community with the University. The Court’s membership, powers and duties are set out in Ordinance 6, which is available on the University’s website. The Court is chaired by the University’s Chancellor and most of its members are from outside the University, representing the local community and other designated bodies with

Accountable Officer

The Vice-Chancellor is the chief executive and principal academic and administrative officer of the University and has a general responsibility to the Council for maintaining and promoting the efficiency and good order of the University. Under the terms of the formal financial memorandum between the University and HEFCW,

• in relation to governor development, the Council, through its Governance and Nominations Committee, has in place a structured induction process to support all new Council members, as well as ongoing internal and external training and support for serving members, to ensure that all members are able to make a valuable contribution. The Committee continuously reviews this support and will also review its institutional practices in light of the work being undertaken by the sector in Wales around recruitment and induction and with reference to the governor development resources and information “hub” being developed by HEFCW.

framework and the Annual Quality Assurance Statement to Council, the Fee and Access Plan, the Senate Effectiveness Review, the University’s performance in league tables and rankings including NSS and REF, and internal Student Experience Surveys, enhancements in learning and teaching facilities, the new Student Experience and Welsh Language and Culture Strategies, new research policies and research grants and awards, recruitment and admissions, and updates on policy and sector landscape issues. Senate has established five committees to assist it in discharging its responsibilities: Learning and Teaching Quality, Recruitment and Admissions, Research, Innovation and Impact, Research Integrity, Ethics and Governance, and Welsh Language Strategy. During the year, Senate undertook a Senate Effectiveness Review and will be considering how to take forward the issues identified by the review during the next academic session.

an interest in the work of the University. The membership also includes members of the Council, representatives of the staff of the University (both academic and non-academic) and the student body. The Court ordinarily meets once a year to receive the University’s annual report and audited financial statements of the University. The Court last met on 4th October 2022.

the Vice-Chancellor is the accountable officer of the University and in that capacity may be required to appear before the Public Accounts and Public Administration Committee of the Senedd Cymru alongside the Chief Executive of HEFCW.

Executive Team

Operating Officer, the Pro-Vice-Chancellors, Pro-Vice-Chancellors / Executive Deans, and the Chief Financial Officer. The Senior Leadership Team meets weekly and considers strategic and operational matters. During the year, the Senior Leadership Team has reviewed its committees and has established a number of new Strategy Groups to sit alongside existing groups to assist it in discharging its responsibilities.

As Chief Executive of the University, the Vice-Chancellor has responsibility for the development of institutional strategy, the identification and planning of new developments, and the shaping of the institutional ethos. Members of the Senior Leadership Team and the Directors of Professional Services all contribute in various ways to these aspects of the work, but ultimate authority rests with the Council. The membership of the Senior Leadership Team, which is chaired by the Vice-Chancellor, includes the Provost, Registrar and Chief

Committees

Council, and are formally constituted, with their own terms of reference and membership approved by the Council on the recommendation of the Governance and Nominations Committee. The role of the Secretary to Council is defined in the University’s Ordinances and the Secretary to Council also acts as the Secretary to most of the Committees of Council.

The Council has established four governance committees, at which much of its detailed work is initially handled: Audit, Assurance and Risk Committee; Finance and Strategy Committee; Governance and Nominations Committee; and Remuneration Committee. All of these committees are chaired by lay members of Council and have a majority of lay members. Senior officers of the University attend meetings as necessary. All Committees report their decisions to

Audit, Assurance and Risk Committee

recommendation of the Governance and Nominations Committee. All members are independent of the University’s management, although senior executives attend meetings as necessary, and, in line with HEFCW’s Financial Management Code, there is no cross representation between the Audit, Assurance and Risk Committee and the Finance and Strategy Committee. Members of the Committee who served during the year ending 31st July 2022 and up to the Council meeting at which the financial statements were signed are listed below. Attendance at Committee meetings (expressed as the number of Committee meetings attended out of a total of meetings the member was due to attend) is provided below.

The Audit, Risk and Assurance Committee is responsible for advising and assisting Council in respect of the entire assurance and control environment of the University. Its key responsibilities are to ensure that the University complies with statutory, University and external regulatory requirements in relation to both its financial and nonfinancial activities and in respect of the issues within its terms of reference, and the Committee has the authority to make recommendations to the University, its organisational units and its members.

The Committee is chaired by a lay member of Council. All members of the Committee and its Chair are appointed by Council on the

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Committee Member Category Risk management
Dr Kerry Beynon, Co-opted member and Chair of the Committee Lay 4/4
Mrs Navjot Kalra, Co-opted lay member (until December 2021) Lay 2/2
Professor Kathryn Monk, Co-opted member of Council Lay 4/4
Mrs Marcia Sinfield, Co-opted member of Council (from November 2021) Lay 3/3
Ms Anne Tutt, Co-opted member of Council Lay 4/4
Mrs Alison Vickers, Co-opted lay member Lay 4/4
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CORPORATE GOVERNANCE AND STATEMENT OF INTERNAL CONTROL

Governance and Nominations Committee

During 2021/22, the Committee held four meetings. The Committee’s business focused on discussing with the External Auditors the nature and scope of the audit and agreeing an annual Audit Plan; advising Council on the appointment of new External Auditors; reviewing the Internal Auditors’ audit strategy and the introduction of a new Internal Audit Governance Framework to ensure the optimal effectiveness of the Internal Audit Service; approving the internal audit plan, receiving reports on its implementation, and monitoring the implementation of agreed audit-based recommendations; reviewing the effectiveness of the risk management arrangements and the risk register, and receiving regular reports on key risks; reviewing the External Auditors’ management letter, the Internal Auditors’ annual report, and the

management responses; overseeing the University’s policies related to ethical and other behaviours, including reviewing the University’s Whistleblowing (Public Interest Disclosure) Policy and overseeing the implementation of the updated Policy, and reviewing proposals for a review of the University’s counter-fraud policies and processes; meeting regularly with the External Auditors, the Head of Internal Audit, the Registrar and Chief Operating Officer and the Chief Financial Officer to provide an opportunity for them to discuss any matters; and approving an Annual Report to Council.

to the University’s governing documents, (iv) to review, advise and make recommendations on the recruitment and appointment of lay members of Council and its Committees, (v) to review, advise and make recommendations on succession planning, (vi) to oversee the induction, development and appraisal of Council members, (vii) to review Council’s Register of Interests and ensure a robust process is in place to identify any potential conflicts of interest and (viii) to review the diversity of Council and its Committees.

The Governance and Nominations Committee reviews and advises Council on the University’s governance arrangements, ensuring that the University pursues good practice and complies with external governance requirements. Its key responsibilities are (i) to ensure compliance with external governance requirements, (ii) to review the membership of Council and its Committees ensuring it has the necessary balance of skills and experience to enable it to fulfil its responsibilities, (iii) to review and make recommendations on changes

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Committee Member Category Attendance
Mr Bleddyn Phillips, Pro-Chancellor, Chair of Council and Chair of the Committee Lay 3/3
Professor Paul Boyle, Vice-Chancellor Staff 3/3
Sir Roderick Evans, Pro-Chancellor Lay 2/3
Professor Elwen Evans KC, Appointed by Senate Staff 2/3
Professor Ryan Murphy, Appointed by Senate Staff 2/3
Ms Katie Phillips, President of Students’ Union Student 2/3
Ms Elin Rhys, Co-opted member of Council Lay 2/3
Professor Keshav Singhal, Co-opted member of Council Lay 2/3
Ms Anne Tutt, Co-opted member of Council Lay 3/3
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Finance and Strategy Committee

The Finance and Strategy Committee has oversight of and monitors the financial health of the University on behalf of the Council. Its key responsibilities are (i) to ensure the medium and long-term financial sustainability of the University through regular reviews of the University’s financial position, (ii) to ensure the University operates a robust system of internal financial control, (iii) to monitor financial performance and compliance, (iv) to have financial oversight of all relevant strategies and (v) to play a critical role in applying test and challenge to all financial decisions. The Committee advises and makes recommendations to Council in respect of all financial matters.

The Committee is chaired by the University Treasurer. All lay members of the Committee and its Chair are appointed by Council on the recommendation of the Governance and Nominations Committee. In line with HEFCW’s Financial Management Code, there is no cross representation between the Audit, Assurance and Risk Committee and the Finance and Strategy Committee. Members of the Committee who served during the year ending 31st July 2022 and up to the Council meeting at which the financial statements were signed are listed below. Attendance at Committee meetings (expressed as the number of Committee meetings attended out of a total of meetings the member was due to attend) is provided below.

Governance Effectiveness Review; reviewing its annual cycle of business, the arrangements for reviewing the effectiveness of Council Committees, and the appraisals process for the Chair of Council, the Chairs of Council Committee, and the Vice-Chancellor; receiving reports on the Advance HE Higher Education Board Diversity and Inclusion Toolkit and the implementation of the recommendations from the External Effectiveness of Council and the Camm Review.

The Committee normally meets four times a year. During 2021/22, the Committee held three meetings, including one special meeting. The Committee’s business focussed on reviewing and recommending to Council changes to the membership of Council and Council Committees with reference to the skills and experience matrix, the terms of reference of Council Committees, and the key responsibilities of members of Council and the Statement of Primary Responsibilities of Council; recommending to Council the re-appointment of the Chancellor, and a new Chair of the Students’ Union’s Audit Committee; recommending to Council proposals for the next Independent

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Committee Member Category Attendance
Mr Goi Ashmore, Treasurer and Chair of the Committee Lay 5/5
Ms Amerjit Barrett, Co-opted lay member (until May 2022) Lay 3/4
Professor Paul Boyle, Vice-Chancellor Staff 5/5
Professor Edward David, Co-opted member of Council Lay 5/5
Dr Angus Muirhead, Co-opted member of Council Lay 5/5
Mr Bleddyn Phillips, Pro-Chancellor and Chair of Council Lay 4/5
Mr Steve Smith, Co-opted lay member Lay 4/5
Professor Steve Wilks, Provost (until November 2021) Staff 2/2
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financial sustainability the management of key financial risks business planning processes, strategic investment priorities and opportunities, pensions, the operational plans and financial forecasts of the University’s subsidiaries, the Student Accommodation Strategy and residential rents, the Students’ Union’s accounts, and TRAC.

The Committee normally meets six times a year. During 2021/22, the Committee held five meetings. The Committee’s business focused on reviewing and recommending to Council the University’s financial forecasts, business cases for regional and global partnerships and the digital foundations project, a Schedule of Financial Limits, and changes to its terms of reference; and reviewing reports on University’s

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45

CORPORATE GOVERNANCE AND STATEMENT OF INTERNAL CONTROL

CORPORATE GOVERNANCE AND STATEMENT OF INTERNAL CONTROL

Remuneration Committee

review and report to Council on progress through its annual report which is transparent and meets the requirements of good governance.

The Remuneration Committee is aligned with the CUC Higher Education Senior Staff Remuneration Code and publishes an annual report which is available on the University website. The Committee is responsible for determining the reward strategy of the University and the remuneration of the most senior staff of the University including the Vice-Chancellor. Its key responsibilities are (i) to develop an overall reward strategy and policy for senior employees of the University, (ii) to review and determine the remuneration, benefits and conditions of employment of the Senior Leadership Team taking account of affordability, comparative information on remuneration, benefits and conditions of employment in the university sector and elsewhere as appropriate, (iii) to agree an annual framework of work and (iv) to

The Committee is chaired by a lay member of Council. All members of the Committee and its Chair are appointed by Council on the recommendation of the Governance and Nominations Committee. All members are independent of the University, although senior executives attend meetings as necessary. Members of the Committee who served during the year ending 31st July 2022 and up to the Council meeting at which the financial statements were signed are listed below. Attendance at Committee meetings (expressed as the number of Committee meetings attended out of a total of meetings the member was due to attend) is provided below.

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Committee Member Category Attendance
Dr Angus Muirhead, Co-opted member and Chair of the Committee Lay 7/7
Professor Edward David, Co-opted member of Council Lay 7/7
Sir Roderick Evans, Pro-Chancellor Lay 7/7
Professor Kathryn Monk, Co-opted member of Council Lay 5/7
Mr Bleddyn Phillips, Pro-Chancellor and Chair of Council Lay 7/7
Ms Elin Rhys, Co-opted member of Council Lay 5/7
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reporting on progress by providing an annual report for Council which is transparent, aligned with the recommendations of the Higher Education Senior Staff Remuneration Code and meets the requirements of good governance; noting promotions via the Retention of Exceptional Talent procedure; and being actively involved in, and responsible for, the decision process for any severance arrangements for grade 11 employees.

During 2021/22, the Committee held seven meetings, including three special meetings. The Committee’s business focussed on reviewing and determining proposed remuneration offers; reviewing and determining the remuneration, benefits and conditions of employment of new members of the Senior Leadership Team and Director positions; the Remuneration process 2022/23; approving the cost of living award of a 1.5% salary increase for the Vice-Chancellor and noting for all other colleagues in accordance with the salary increase which was applied to colleagues on the 51 point scale, following 2021/22 pay negotiations conducted by UCEA on behalf of HEIs; reviewing and

Statement of Internal Control

The Council is responsible for ensuring there is a sound system of internal control to support the achievement of the University’s aims, strategic objectives and policies, while safeguarding the public and other funds and assets for which it is responsible. The system of internal control is risk based and designed to manage, rather than eliminate the risk of failure to achieve strategic objectives and as such, the system provides reasonable, but not absolute, assurance against material misstatement or loss. Council acts in accordance with the responsibilities assigned to it in the University’s Charter and Statutes, and the regulatory framework in which the University operates.

The key elements of the University’s system of risk identification and effective risk management include the following:

The University’s Senior Leadership Team has formal processes in place for evaluating and managing significant risks faced by the institution on an on-going basis. This involves identification of the types of risks through a top down and bottom up at both corporate and departmental level, which are prioritised in terms of potential impact and likelihood of occurrence in accordance with an established and risk management policy.

Risks are monitored along with the associated controls and risk mitigation actions on an on-going basis by the Senior Leadership Team. The Audit, Assurance and Risk Committee receives the risk register and an update on risk at each of its meetings, the Finance and Strategy Committee receives the risk register and updates on relevant risks regularly, and appropriate reports and recommendations and the risk register are presented to the Council.

The University has a process for dealing with significant control issues, which involves immediate notification to the Chair of Council, Chairs of the Audit, Assurance and Risk Committee and the Finance and Strategy Committee and necessary senior staff, along with notification to HEFCW and the Charity Commission and any other relevant authority as appropriate depending on the nature of the issue.

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47

REPORT FROM THE CHAIR OF THE REMUNERATION COMMITTEE

REPORT FROM THE CHAIR OF THE REMUNERATION COMMITTEE

Procedural fairness

Introduction

The Remuneration Committee is responsible for determining the Reward Strategy of the University and for setting the remuneration and the terms and conditions for the Vice-Chancellor and other senior members of staff.

Procedural fairness requires remuneration to be set through a process that is based on competent people applying a consistent framework with independent decision making using appropriate evidence and assessing the value of roles, the context and individuals’ performance in them.

The Remuneration Committee comprises independent lay members of Council who possess relevant knowledge and expertise. The Vice-Chancellor is not in attendance for, and does not play a part in, the discussions and decisions of his own remuneration.

Transparency and accountability

The process for setting remuneration must be transparent. For senior post holders there must be an institutional level justification for remuneration that relates to the competitive environment, the value of the roles and institutional performance. The remuneration of the Head of Institution must be separately justified, published and related to the remuneration of all staff within the organisation.

The Remuneration Committee takes account of affordability and comparative information on the remuneration, benefits and conditions of employment in the University sector, and wider where appropriate.

In determining the remuneration awarded, the Remuneration Committee considers the University’s approach taken to recognising performance for all roles in scope and refers to sector benchmarking information provided from the UCEA Senior Salary Survey.

The key principles of the University’s approach to remuneration are as follows:

The Remuneration Committee ensures that it complies with its terms of reference and the requirements of the Committee of University Chairs (CUC) Higher Education Senior Staff Remuneration Code.

In-line with its terms of reference and the CUC Higher Education Senior Staff Remuneration Code, to ensure a fair and transparent process, remuneration for Grade 10a, Grade 11, Professors, the Vice-Chancellor, members of the Senior Leadership Team and their direct reports, are reviewed annually, using a fair process that reflects the performance of each individual in the context of the University’s performance.

The Remuneration Committee makes decisions on salary awards which are merit and performance related:

The CUC Higher Education Senior Staff Remuneration Code is key to the success and development of the UK’s HE sector, operating as it does in an intensively competitive global environment. This requires three key elements:

A fair, appropriate and justifiable level of remuneration

Remuneration starts with a clear understanding of the responsibilities, context and expected contribution of a role and the attributes required to undertake that role effectively. Fair and appropriate remuneration then recognises an individual’s contribution to their institution’s success in that role, and is sufficient to recruit, retain and motivate staff of appropriate calibre in the context of the market for that role, balanced with the need to demonstrate the achievement of value for money in the use of resources.

Remuneration Committee

The Remuneration Committee membership consists of:

Additional members with expertise may be co-opted via recommendation to Council via the Governance and Nominations Committee. Lay Committee Members should not have significant financial interests in the University.

In addition:

No member of staff is present for the discussion of their own remuneration or when the Committee makes decisions on the reward of members of the Vice-Chancellor’s Senior Leadership Team.

The members of the Remuneration Committee are:

Remuneration 2022

The University’s Senior Leadership Team made the recommendation not to award a performance pay increase for the academic years 1st August 2019 to 31st July 2020 and 1st August 2020 to 31st July 2021 to members of the Senior Leadership Team, Directors and Professors. This decision was approved by the Remuneration Committee and noted by Council. For 1st August 2021 to 31st July 2022 the Senior Leadership Team made the recommendation to re-instate a performance-pay increase which will be paid in 2022-23. This was approved by the Remuneration Committee and noted by Council.

In previous years, the factors used in considering performance reward proposals included, but were not limited to:

Data that supports these indicators would have been drawn from:

All Swansea University colleagues, including the Vice-Chancellor, received a 1.5% cost of living salary increase, following 2021/22 pay negotiations conducted by UCEA on behalf of HEIs.

In meeting the University’s vision as a principled, purposeful and resilient University that balances excellent teaching with world-leading research and innovation in an environment which enables our students and colleagues to excel, alongside being valued globally as a trusted partner who is deeply committed to our region and proud to be a University for Wales, it is essential that the University offers a competitive remuneration package for the Vice-Chancellor role. This also recognises the diverse and complex nature of the organisation, with over 24,000 students, over 4,500 paid staff and an income of £370m.

The Remuneration Committee decides the remuneration package of the Vice-Chancellor, taking account of the breadth of leadership and financial responsibilities and delivery against the University’s strategic objectives.

In considering the Vice-Chancellor’s remuneration package, the Remuneration Committee considers this organisational context, alongside the Vice-Chancellor’s performance, general pay movement for all University staff, retention, and any relevant market considerations, and is informed by salary benchmarking information with comparator universities.

The Vice-Chancellor’s performance is assessed by the Chair of Council after taking soundings and feedback from all members of Council – both lay and non-lay. It is based on leadership, the achievement of key strategic objectives, measurement against agreed targets, the overall performance of the University and the external context in which the University operates.

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49

REPORT FROM THE CHAIR OF THE REMUNERATION COMMITTEE

----- Start of picture text -----
2022 2021
£000 £000
Salary 312 303
The Vice-Chancellor’s Reward package is
detailed on the right. Employer pension contributions 17 6
Emoluments of the Vice-Chancellor for years 329 309
ended 31st July 2022 and 31st July 2021
(also see Note 7 of the financial statements Other taxable benefits:
section of the Financial Review 2021/22): Subsidised accommodation and associated costs – 20
Other benefits – 5
– 25
The Vice-Chancellor’s basic salary is 8.6 times the median pay of
staff (2021: 8.6 times), where the median pay is calculated on a
full-time equivalent basis for the salaries paid by the University
to its staff.
The Vice-Chancellor’s total remuneration is 8.6 times the median
total remuneration of staff (2021: 9.3 times), where the median
total remuneration is calculated on a full-time equivalent basis for
----- End of picture text -----

The Vice-Chancellor’s total remuneration is 8.6 times the median total remuneration of staff (2021: 9.3 times), where the median total remuneration is calculated on a full-time equivalent basis for the total remuneration by the University to its staff.

The median calculations include salaries part funded by the NHS.

Included within the Vice-Chancellor’s salary for 2022 is a £15k accommodation allowance (2021: £10k). The salary for the ViceChancellor before the accommodation allowance is £297k for the year to 31st July 2022 (2021: £293k).

The Vice-Chancellor, with the support of Council, took up the role of Chair of JISC (formally known as the Joint Information Systems Committee) on 21st May 2021 and receives an annual remuneration of £15k.

The Vice-Chancellor is enrolled in the enhanced opt out arrangement within the Universities’ Superannuation Scheme (the USS).

In 2022 there were 52 members of staff with a basic salary over £100k per annum (2021: 59).

50

INDEPENDENT AUDITOR’S REPORT TO THE COUNCIL OF SWANSEA UNIVERSITY REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

INDEPENDENT AUDITOR’S REPORT TO THE COUNCIL OF SWANSEA UNIVERSITY REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

In our evaluation of the Council’s conclusions, we considered the inherent risks to the Group’s business model and analysed how those risks might affect the Group and University’s financial resources or ability to continue operations over the going concern period.

Opinion

We have audited the financial statements of Swansea University (“the University”) for the year ended 31st July 2022 which comprise the Group and University Statements of Comprehensive Income, Statements of Change in Reserves, Statement of Financial Position and Group Statement of Cash Flow and related notes, including the Statement of Principal Accounting Policies.

Our conclusions based on this work:

In our opinion the financial statements:

However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the Group or the University will continue in operation.

Fraud and breaches of laws and regulations – ability to detect

To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:

Basis for opinion

We have been appointed as auditor under the Charters and Statutes of the University and in accordance with section 144 of the Charities Act 2011 (or its predecessors) and report in accordance with regulations made under section 154 of that Act.

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the Group in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.

Going concern

We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.

The Council has prepared the financial statements on the going concern basis as it does not intend to liquidate the Group or the University or to cease their operations, and as it has concluded that the Group and the University’s financial position means that this is realistic. It has also concluded that there are no material uncertainties that could have cast significant doubt over their ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”).

As required by auditing standards, and taking into account possible pressures to meet loan covenants, we perform procedures to address the risk of management override of controls and the risk of fraudulent revenue recognition, in particular the risk that income from research income is not recognised in accordance with the relevant grant

terms and conditions and the risk that Group management may be in a position to make inappropriate accounting entries.

We did not identify any additional fraud risks.

In determining the audit procedures we took into account the results of our evaluation and testing of the operating effectiveness of the Group-wide fraud risk management controls

We performed procedures including:

Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the Board of Governors and other management (as required by auditing standards) and discussed with the Board of Governors and other management the policies and procedures regarding compliance with laws and regulations.

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation, taxation legislation, pensions legislation, charities legislation and specific disclosures required by higher education legislation and regulation, including the Accounts Direction issued by the HEFCW, and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the Group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the need to include significant provisions. We identified the following areas as those most likely to have such an effect: compliance with higher education regulatory requirements of the HEFCW, recognising the regulated nature of the Group’s activities. Auditing standards limit the required audit procedures to identify non-compliance with these laws

and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

Context of the ability of the audit to detect fraud or breaches of law or regulation

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

Other information

The Council (the members of which are the Trustees of the University for the purposes of charity law) is responsible for the other information, which comprises all of the information in the Financial Review other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. We are required to report to you if:

We have nothing to report in these respects.

Matters on which we are required to report by exception

Under the Charities Act 2011 we are required to report to you if, in our opinion:

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53

INDEPENDENT AUDITOR’S REPORT TO THE COUNCIL OF SWANSEA UNIVERSITY REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

We have nothing to report in these respects.

Council responsibilities

As explained more fully in its statement set out on page 55, the Council is responsible for: the preparation of the financial statements which give a true and fair view; such internal control as it determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing the Group and parent University’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless it either intends to liquidate the Group or the parent University or to cease operations, or has no realistic alternative but to do so.

Auditor’s responsibilities

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 our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

We are required to report on the following matters prescribed in the Higher Education Funding Council for Wales (‘HEFCW’) Audit Code of Practice issued under the Further and Higher Education Act 1992 and in the Financial Management Code issued under the Higher Education (Wales) Act 2015 and the Accounts Direction to Higher Education Institutions for 2021/22 issued by the HEFCW (“the Accounts Direction”).

In our opinion, in all material respects:

THE PURPOSE OF OUR AUDIT WORK AND TO WHOM WE OWE OUR RESPONSIBILITIES

This report is made solely to the Council in accordance with Section 4 of the Charters and Statutes of the University and in accordance with the section 144 of the Charities Act 2011 (or its predecessors) and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the Council 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 Council for our audit work, for this report, or for the opinions we have formed.

Rees Batley

for and on behalf of KPMG LLP, Statutory Auditor

Chartered Accountants KPMG LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

66 Queen Square

Bristol

BS1 4BE

29th November 2022

STATEMENT OF COUNCIL’S RESPONSIBILITIES IN RESPECT OF THE FINANCIAL REVIEW AND THE FINANCIAL STATEMENTS

The Council is responsible for keeping adequate accounting records that are sufficient to show and explain the parent University’s transactions and disclose with reasonable accuracy at any time the financial position of the parent University. It is responsible for such internal control as it determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and has general responsibility for taking such steps as are reasonably open to it to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.

The Council is responsible for preparing the Financial Review and the financial statements in accordance with the requirements of the Terms and Conditions of Funding issued by the Higher Education Funding Council for Wales (HEFCW), the Accounts Direction to Higher Education Institutions for 2021/22 issued by HEFCW, the Financial Management Code issued under the Higher Education (Wales) Act 2015 and applicable law and regulations.

It is required to prepare the Group and parent University financial statements in accordance with UK accounting standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and the requirements of the Charities Act 2011. The Terms and Conditions of Funding further require the financial statements to be prepared in accordance with the 2019 Statement of Recommended Practice – Accounting for Further and Higher Education, in accordance with the requirements of the Accounts Direction to Higher Education Institutions for 2021/22 issued by HEFCW.

The Council is also responsible for ensuring that:

The Council is required to prepare financial statements which give a true and fair view of the state of affairs of the Group and parent University and of their income and expenditure, gains and losses and changes in reserves for that period. In preparing each of the Group and parent University financial statements, the directors are required to:

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

Mr Bleddyn Phillips, Chair of Council

28th November 2022

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55

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES

General Information

covenant compliance throughout the year. Therefore, the Members of Council believe that they are well placed to manage its business risks despite the on-going changes in sector funding.

Swansea University is registered with the Higher Education Funding Council in Wales (HEFCW). The address of the registered office is:

Judgements made by management in the application of these accounting policies that have a significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are discussed in accounting policy note 23.

Swansea University Singleton Park Swansea SA2 8PP

The consolidated financial statements include the University and all its subsidiaries for the financial year to 31st July 2022. Intra-group transactions are eliminated on consolidation.

Statement of compliance

The Consolidated and University financial statements have been prepared in accordance with United Kingdom Accounting Standards, including Financial Reporting Standard 102 (FRS 102) and the Statement of Recommended Practice (SORP): Accounting for Further and Higher Education (2019 edition).

The consolidated financial statements do not include the income and expenditure of the Students’ Union as the University does not exert control or dominant influence over policy decisions.

Associates are accounted for using the equity method.

They have also been prepared in accordance with the ‘carried forward’ powers and duties of previous legislation (Further and Higher Education Act 1992 and the Higher Education Act 2004) and the new powers of the Higher Education and Research Act 2017 during the transition period to 31st July 2019, the Royal Charter, the Accounts Direction issued by the Higher Education Funding Council for Wales (HEFCW), and the terms and conditions of funding for higher education institutions issued by HEFCW.

The financial statements are prepared in sterling which is the functional currency of the group and rounded to the nearest £’000.

Exemptions under FRS 102

The University has taken the exemption under section 3.3 of the SORP (1.12(b) of FRS 102) to not produce a cash flow statement for the University in its separate financial statements.

The University is registered as a charity. The Financial Statements have been prepared in compliance with the Charities Act 2011.

Basis of consolidation

The consolidated financial statements include the financial statements of the University and all its subsidiaries together with the share of the results of joint ventures and associates for the financial year to 31st July 2022.

The University is a public benefit entity and therefore has applied the relevant public benefit requirement of the applicable UK laws and accounting standards.

Basis of preparation

The results of subsidiaries acquired or disposed of during the period are included in the consolidated statement of comprehensive income from the date of acquisition or up to the date of disposal. Intra-group transactions are eliminated on consolidation.

The Consolidated and University financial statements are prepared in accordance with the historic-cost convention (modified by the revaluation of fixed assets and the measurement of certain financial instruments at fair value).

Gains or losses on any intra-group transactions are eliminated in full. Amounts in relation to debts and claims between undertakings included in the consolidation are also eliminated. Balances between the University and its associates and joint ventures are not eliminated. Normal trading transactions that are not settled by the balance sheet date are included as current assets or liabilities. Any gains or losses are included in the carrying amount of assets of either entity; the part relating to the University’s share is eliminated.

The University’s activities, together with the factors likely to affect its future development, performance and position, are set out in the operational and financial review, which forms part of the Members of Council’s report. This review also describes the financial position of the University, its cash flows, liquidity position and borrowing facilities. The Members of Council have a reasonable expectation that the University has adequate resources to continue in operational existence for the foreseeable future.

The consolidated financial statements do not include the Students’ Union as the University does not exert control or dominant influence over policy decisions.

The financial statements have been prepared under the going concern basis of accounting. The Members of Council feel that this is appropriate as the University has considerable financial resources together with a significant value of contracted income over the medium term. The Members of Council have reviewed forecasts and forecast

Associated companies and joint ventures are accounted for using the equity method.

Income recognition

Income from the sale of goods or services (exchange transactions) is credited to the Statement of Comprehensive Income when the amount of revenue can be reliably measured, the stage of completion at the end of the reporting period can be reliably measured, it is probable that the economic benefits associated with the transaction will flow to the University and when costs of services delivered or due to be delivered can be measured reliably.

Tuition Fee income is stated gross of any expenditure which is not a discount and credited to the Statement of Comprehensive Income over the period in which students are studying. Where the amount of the tuition fee is reduced, by a discount for prompt payment, income receivable is shown net of the discount. Bursaries and scholarships are accounted for gross as expenditure and not deducted from income. Education contracts are recognised when the University is entitled to the income, which is the period in which the students are studying, or where relevant, when performance conditions have been met.

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

Investment income is credited to the statement of income and expenditure on a receivable basis.

Grant funding

Government grants including Funding Council block grant and research grants from Government sources and other grants from non-government sources including research grants from nongovernment sources are recognised within the Statement of Comprehensive Income when the University is entitled to the income and performance-related conditions have been met. Income received in advance of performance-related conditions is deferred within creditors in the Statement of Financial Performance and released to the Statement of Comprehensive Income in line with such conditions being met.

Commercial research contracts are accounted for in line with the policy for income from the sale of goods or services (exchange transactions) above.

Other grants and donations received from non-government sources including research grants from non-government sources are recognised within the Statement of Comprehensive Income when the University is entitled to the income and the performance-related conditions have been met. Income received in advance of performance related conditions is deferred within creditors in the Statement of Financial Performance and released to the Statement of Comprehensive Income in line with such conditions being met.

Capital Grants

Capital grants are recognised in income when the University is entitled to the funds subject to any performance related conditions being met

Donations and Endowments

Non-exchange transactions without performance-related conditions are donations and endowments. Donations and endowments with donor-imposed restrictions are recognised within the Statement of

Comprehensive Income when the University is entitled to the income. Income is retained within the restricted reserve until such time that it is utilised in line with such restrictions at which point the income is released to general reserves through a reserve transfer.

Investment income and appreciation of endowments is recorded in income in the year in which it arises and as either restricted or unrestricted income according to the terms of the restriction applied to the individual endowment fund.

Donations with no restrictions are recorded within the Statement of Comprehensive Income when the University is entitled to the income.

Donations and endowments with restrictions are classified as restricted reserves with additional disclosure provided within the notes to the accounts.

There are four main types of donations and endowments with restrictions:

  1. Restricted donations – the donor has specified that the donation must be used for a particular objective.

  2. Unrestricted permanent endowments – the donor has specified that the fund is to be permanently invested to generate an income stream for the general benefit of the University.

  3. Restricted expendable endowments – the donor has specified a particular objective other than the purchase or construction of tangible fixed assets, and the University can convert the donated sum into income.

  4. Restricted permanent endowments – the donor has specified that the fund is to be permanently invested to generate an income stream to be applied to a particular objective.

Donations of tangible assets are included within income. The income recognised is valued using a reasonable estimate of their gross value or the amount actually realised. Donated tangible assets are valued and accounted for as tangible assets under the appropriate asset category.

Accounting for retirement benefits

The three principal schemes for the University’s staff are the Universities Superannuation Scheme (USS), the Swansea University Pension Scheme (SUPS), and the National Employment Savings Trust (NEST). SUPS was closed to new members from 1st January 2012 when new staff were invited to join NEST. The University also contributes to the NHS Pension Scheme.

USS and SUPS are defined-benefit schemes, which are externally funded and contracted out of the State Second Pension. Each fund is valued every three years by professionally qualified independent actuaries. NEST is a defined contribution scheme.

The USS is a multi-employer scheme for which it is not possible to identify the assets and liabilities of each university, due to the mutual nature of the scheme. Therefore, the scheme is accounted for as a defined contribution retirement benefit scheme.

A liability is recorded within provisions for any contractual commitment to fund past deficits within the USS scheme.

56

57

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES

Defined Contribution Plan

A defined contribution plan is a post-employment benefit plan under which the company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions of defined contribution pension plans are recognised as an expense in the Statement of Comprehensive Income in the periods during which the services are rendered by employees.

Multi-employer schemes

Where the University is unable to identify its share of the underlying assets and liabilities in a multi-employer scheme on a reasonable and consistent basis, it accounts as if the scheme were a defined contribution scheme. Where the University has entered into an agreement with such a multi-employer scheme that determines how the University will contribute to a deficit recovery plan, the University recognises a liability for the contributions payable that arise from the agreement, to the extent that they relate to the deficit, and the resulting expense is recognised in expenditure.

Defined Benefit Plan

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. Under defined benefit plans the University’s obligation is to provide the agreed benefits to current and former employees, and actuarial risk (that benefits will cost more or less than expected) and investment risk (that returns on assets set aside to fund the benefits will differ from expectations) are borne in substance by the University.

The net liability is recognised in the balance sheet in respect of each scheme and is the present value of the defined benefit obligation at the reporting date less the fair value of the plan assets at the reporting date.

Annually the University engages independent actuaries to calculate the obligation for each scheme. The present value is determined by discounting the estimated future payments at a discount rate based on market yields on high quality corporate bonds denominated in sterling with terms approximating to the estimated period of the future payments.

The fair value of a scheme’s assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance with the University’s policy for similarly held assets. This includes the use of appropriate valuation techniques.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as actuarial gains and losses.

The cost of the defined benefit plan, recognised in expenditure as staff costs, except where included in the cost of an asset, comprises the increase in pension benefit liability arising from employee service during the period and the cost of plan introductions, benefit changes, curtailments, and settlements. The net interest cost is calculated by applying the discount rate to the net liability. This cost is recognised in expenditure as a finance cost.

Further detail is provided on the specific pension schemes in note 30 to the accounts.

Employment Benefits

Short-term employment benefits such as salaries and compensated absences are recognised as an expense in the year in which the employees render the service to the University. Any unused benefits are accrued and measured as the additional amount the University expects to pay as a result of unused entitlement. Unused annual leave entitlement at 31st July is recognised as a creditor for administrative staff. There is no creditor for unused annual leave for academics as no obligation exists.

Finance Leases

Leases in which the University assumes substantially all the risks and rewards of ownership of the leased asset are classified as finance leases. Leased assets acquired by way of finance lease are stated at the lower of their fair value and the present value of the minimum lease payments at inception of the lease, less accumulated depreciation and less accumulated impairment losses. Lease payments are accounted for as described below.

Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Service Concession Arrangements

Fixed assets held under service concession arrangements are recognised on the Balance sheet at the present value of the minimum lease payments when the assets are brought into use with the corresponding financial liability.

Payments under the service concession arrangement are allocated between service costs, finance charges and financial liability repayments to reduce the financial liability to nil over the life of the arrangement.

The Bay Campus residences and Singleton residences are classified as Service Concession Arrangements.

Operating Leases

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

Foreign Currency

Transactions in foreign currencies are translated to Pound Sterling at the foreign exchange rate ruling at the date of transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are re-translated to the functional currency at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in the income statement. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are retranslated to the functional currency at foreign exchange rates ruling at the dates the fair value was determined.

Property Plant and Equipment

Property, plant and equipment are stated at deemed cost less accumulated depreciation and accumulated impairment losses.

Land and buildings

Land and buildings are capitalised at cost on initial recognition.

After initial recognition, land and buildings are subsequently measured at costs less accumulated depreciation and accumulated impairment losses.

Land and Buildings in existence upon transition to FRS 102 and the new HE SORP 2015, were revalued to fair value on the date of transition. These are measured on the basis of deemed cost, being the revalued amount at the date of the revaluation. The difference between the revalued amount and historical cost is credited to a revaluation reserve. An amount equal to the depreciation in excess of that on the historical cost basis is transferred from the revaluation reserve to retained earnings on an annual basis.

Costs incurred to land and buildings after initial purchase or construction, are capitalised to the extent that they increase the expected future benefits to the University.

Where parts of the assets have different useful lives, they are accounted for as separate items of fixed assets.

Freehold land is not depreciated as it is considered to have an indefinite useful life. Freehold buildings are depreciated on a straight-line basis over their expected useful lives to the University of between 12 and 75 years.

No depreciation is charged on assets in the course of construction and depreciation is accelerated when there is a known demolition date.

Leasehold land and buildings are depreciated over the life of the lease up to a maximum of 50 years.

Equipment

Equipment costing more than £25,000 per individual item is capitalised in the year of acquisition. Equipment purchased as part of a package or replacement programme, with the total package costing more than £25,000 is also capitalised in the year of acquisition. All other equipment is written off in the year of acquisition, unless there is a specific reason to capitalise.

Capitalised equipment is stated at cost and depreciated over its useful expected life. The useful expected life is 3-5 years except in exceptional circumstances where the useful life is deemed longer or shorter.

Depreciation methods, useful lives and residual values are reviewed at the date of preparation of each Statement of Financial Position.

Vessels

Vessels are stated at cost and depreciated over their useful expected lives.

Depreciation methods, useful lives and residual values are reviewed at the date of preparation of each Balance Sheet.

Borrowing costs

Borrowing costs are recognised as an expense in the Statement of Comprehensive Income in the period in which they are incurred.

Impairment

A review for impairment of property, plant and equipment is carried out if events or changes in circumstances indicate that the carrying amount of the property, plant and equipment may not be recoverable.

Heritage Assets

Works of art and other valuable artefacts are capitalised and recognised at the cost or value of the acquisition, where a cost or value is reasonably obtainable.

Heritage assets are not depreciated as their long economic life and high residual value mean that any depreciation would not be material.

Where heritage assets have not been capitalised, details of the nature and age of these assets are disclosed.

Investment Properties

Investment property is land and buildings held for rental income or capital appreciation rather than for use in delivering services.

Investment properties are measured initially at cost and subsequently at fair value with movements recognised in the Statement of Comprehensive Income. Properties are not depreciated but are revalued or reviewed annually according to market conditions as at 31st July each year.

Investments

Non-current investments are held on the Balance Sheet at amortised cost less impairment.

Investments in jointly controlled entities, subsidiaries and associates are carried at cost less impairment in the University’s accounts.

Current asset investments are held at fair value with movements recognised in the Statement of Comprehensive Income.

Stock

Stock is held at the lower of cost and net realisable value.

Cash and cash equivalents

Cash includes cash in hand, deposits repayable on demand and overdrafts. Deposits are repayable on demand if they are in practice available within 24 hours without penalty.

Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash with insignificant risk of change in value.

Provisions, contingent liabilities, and contingent assets

Provisions are recognised in the financial statements when:

a) the University has a present obligation (legal or constructive) as a result of a past event;

c) a reliable estimate can be made of the amount of the obligation.

58

59

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES

The amount recognised as a provision is determined by discounting the expected future cash flows at a pre-tax rate that reflects risks specific to the liability.

A contingent liability arises from a past event that gives the University a possible obligation whose existence will only be confirmed by the occurrence or otherwise of certain future events not wholly within the control of the University. Contingent liabilities also arise in circumstances where a provision would otherwise be made but either it is not probable that an outflow of resources will be required, or the amount of the obligation cannot be measured reliably.

A contingent asset arises where an event has taken place that gives the University a possible asset whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the University.

Contingent assets and liabilities are not recognised in the Balance Sheet but are disclosed in the notes.

Accounting for Associates, Joint Operations, Jointly Controlled Assets and Jointly Controlled Operations

The University accounts for its share of joint ventures and associates using the equity method.

The University accounts for its share of transactions from joint operations and jointly controlled assets in the Statement of Comprehensive Income.

Taxation

The University is a charity within the meaning of Para 1 of schedule 6 of the Finance Act 2010 and accordingly, the University is potentially exempt from taxation in respect of income or capital gains received within categories covered by section 478-488 of the Corporation Tax Act 2010 (CTA 2010) or section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied to exclusively charitable purposes.

The University receives no similar exemption in respect of Value Added Tax. Irrecoverable VAT on inputs is included in the costs of such inputs. Any irrecoverable VAT allocated to fixed assets is included in their cost.

The University’s subsidiaries are liable to Corporation Tax in the same way as any other commercial organisation.

Reserves

Reserves are allocated between restricted and unrestricted reserves. Restricted endowment reserves include balances which, through endowment to the University, are held as a permanent restricted fund as the University must hold the fund to perpetuity.

Other restricted reserves include balances through which the donor has designated a specific purpose and therefore the University is restricted in the use of these funds.

Critical accounting estimates and judgements

Significant estimates and judgements used in the preparation of this financial information were as follows:

Tangible Fixed Assets

Land and buildings were revalued on adoption of FRS 102. The revaluation was performed by qualified quantity surveyors based upon their independent review of the estate and supporting information from the University.

During the revaluation of land and buildings the estimated useful lives of buildings were reviewed and updated by the independent surveyors based upon an assessment of the age and condition of the estate.

Recoverability of debtors

The policy for provision for bad and doubtful debts is specific for each class of debt and based on circumstances and post-year-end recovery of actual debts. Any non-provided debts are deemed recoverable.

Retirement benefit obligations

The University operates its own scheme, Swansea University Pension Scheme (SUPS), which is a defined-benefit scheme (now closed to new members). Actuarial valuations of the scheme are carried out as determined by the Trustees at intervals of not more than three years.

Pension costs under the HE SORP and FRS 102 are assessed in accordance with the advice of independent actuaries based upon latest actuarial valuations and assumptions determined by the actuaries. The assumptions are based upon information supplied to the actuaries by the University, supplemented by decisions between the actuary and management. The assumptions are documented in note 31.

FRS 102 makes the distinction between a group plan and a multiemployer scheme. A group plan consists of a collection of entities under common control typically with a sponsoring employer. A multi-employer scheme is a scheme for entities not under common control and represents (typically) an industry-wide scheme including the Universities Superannuation Scheme. The accounting for a multi-employer scheme where the employer has entered into an agreement with the scheme that determines how the employer will fund a deficit, results in the recognition of a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) with the resulting expense charged through the profit or loss account in accordance with section 28 of FRS 102. The directors are satisfied that Universities Superannuation Scheme meets the definition of a multi-employer scheme and has therefore recognised the discounted fair value of the contractual contributions under the recovery plan in existence at the date of approving these financial statements.

As the University is contractually bound to make deficit recovery payments to USS, this is recognised as a liability on the balance sheet. The provision is currently based on the USS deficit recovery plan agreed after the 2020 actuarial valuation, which defines the deficit payment required as a percentage of future salaries. These contributions will be reassessed within each triennial valuation of the scheme. The provision is based on management’s estimate of expected future salary inflations, changes in staff numbers and the prevailing rate of discount. Further details are set out in note 30.

60

CONSOLIDATED AND INSTITUTION STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED AND INSTITUTION STATEMENT OF CHANGE IN RESERVES

Year ended 31st July 2022

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CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
31ST JULY 2022 31ST JULY 2022 31ST JULY 2021 31ST JULY 2021
NOTE £000 £000 £000 £000
INCOME
Tuition fees and education contracts 1 188,370 188,370 184,265 184,265
Funding body grants 2 43,857 43,857 50,416 50,416
Research grants and contracts 3 69,212 69,212 62,074 62,074
Other income 4 67,373 67,198 63,572 62,787
Investment income 5 812 812 87 87
Donations and Endowments 6 462 462 339 339
TOTAL INCOME 370,086 369,911 360,753 359,968
EXPENDITURE
Staff costs 7 182,959 182,629 187,146 186,839
Change in the USS deficit funding accrual 7 93,537 93,537 (4,250) (4,250)
Other operating expenses 9 134,938 133,999 116,010 115,267
Depreciation 10 28,638 28,546 26,401 26,270
Interest and other finance costs 8 7,557 7,551 7,613 7,610
TOTAL EXPENDITURE 9 447,629 446,262 332,920 331,736
Surplus before other gains, losses and share
of operating (deficit) of joint ventures and associates (77,543) (76,351) 27,833 28,232
Gain on disposal of fixed assets – – 68 68
(Loss) / Gain on investments 13/21 (291) (1,013) 250 (111)
Share of operating (deficit) in joint venture 13 (1,732) (1,732) (236) (236)
(DEFICIT) / SURPLUS BEFORE TAXATION (79,566) (79,096) 27,915 27,953
Taxation (15) – (14) –
(DEFICIT) / SURPLUS FOR THE YEAR (79,581) (79,096) 27,901 27,953
Actuarial gain in respect of pension schemes 30 23,700 23,700 12,600 12,600
TOTAL COMPREHENSIVE (EXPENSE)/INCOME FOR THE YEAR (55,881) (55,396) 40,501 40,553
REPRESENTED BY:
Endowment comprehensive income for the year 21 (198) (198) 524 524
Restricted comprehensive income for the year 22 52 52 – –
Unrestricted comprehensive income for the year (54,703) (54,218) 41,009 41,061
Revaluation reserve comprehensive income for the year (1,032) (1,032) (1,032) (1,032)
(55,881) (55,396) 40,501 40,553
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Year ended 31st July 2022

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INCOME AND REVALUATION
EXPENDITURE RESERVE RESERVE TOTAL
ENDOWMENT RESTRICTED UNRESTRICTED
NOTE £000 £000 £000 £000 £000
CONSOLIDATED
AT 1ST AUGUST 2020 6,981 – 127,630 44,686 179,297
Surplus from the income and expenditure statement 569 – 27,332 – 27,901
Other comprehensive income 30 – – 12,600 – 12,600
Transfers between revaluation and income and expenditure reserve – – 1,032 (1,032) –
Release of endowment and restricted funds spent in the year 21 (45) – 45 – –
AT 31ST JULY 2021 7,505 – 168,639 43,654 219,798
AT 1ST AUGUST 2021 7,505 – 168,639 43,654 219,798
Deficit from the income and expenditure statement (167) 52 (79,466) (79,581)
Other comprehensive income 30 – – 23,700 – 23,700
Transfers between revaluation and income and expenditure reserve – – 1,032 (1,032) –
Release of endowment and restricted funds spent in the year 21 (31) – 31 – –
TOTAL COMPREHENSIVE INCOME FOR THE YEAR (198) 52 (54,703) (1,032) (55,881)
AT 31ST JULY 2022 7,307 52 113,936 42,622 163,917
UNIVERSITY
AT 1ST AUGUST 2020 6,981 – 128,222 44,686 179,889
Surplus from the income and expenditure statement 569 – 27,384 – 27,953
Other comprehensive income 30 – – 12,600 – 12,600
Transfers between revaluation and income and expenditure reserve – – 1,032 (1,032) –
Release of endowment and restricted funds spent in the year 21 (45) – 45 – –
AT 31ST JULY 2021 7,505 – 169,283 43,654 220,442
AT 1ST AUGUST 2021 7,505 – 169,283 43,654 220,442
Deficit from the income and expenditure statement (167) 52 (78,981) – (79,096)
Other comprehensive income 30 – – 23,700 – 23,700
Transfers between revaluation and income and expenditure reserve – – 1,032 (1,032) –
Release of endowment and restricted funds spent in the year 21 (31) – 31 – –
TOTAL COMPREHENSIVE INCOME FOR THE YEAR (198) 52 (54,218) (1,032) (55,396)
AT 31ST JULY 2022 7,307 52 115,065 42,622 165,046
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All items of income and expenditure relate to continuing activities. The accompanying notes and policies on pages 66 to 92 from part of these financial statements.

62

63

CONSOLIDATED AND INSTITUTION STATEMENT OF FINANCIAL POSITION

CONSOLIDATED STATEMENT OF CASH FLOWS

Year ended 31st July 2022

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Year ended 31st July 2022 CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
RESTATED RESTATED
31ST JULY 2022 31ST JULY 2022 31ST JULY 2021 31ST JULY 2021
NOTE £000 £000 £000 £000
NON-CURRENT ASSETS
Tangible assets 10 464,629 464,550 451,533 450,590
Heritage assets 10 1,005 1,005 945 945
Investments 13 238 – 288 –
Investments in subsidiaries 13 – 1,929 – 1,929
Investments in associates 13 48 48 1,780 1,780
465,920 467,532 454,546 455,244
CURRENT ASSETS
Stocks 14 105 38 124 28
Trade and other receivables 16 76,270 76,550 62,769 62,398
Investments 15 5,029 5,029 5,269 5,269
Cash and cash equivalents 164,695 164,046 140,960 140,638
246,099 245,663 209,122 208,333
Less creditors falling due within one year 17 (160,837) (160,884) (114,489) (113,754)
NET CURRENT ASSETS 85,262 84,779 94,633 94,579
TOTAL ASSETS LESS CURRENT LIABILITIES 551,182 552,311 549,179 549,823
Creditors: amounts falling due after more than one year 18 (216,401) (216,401) (225,212) (225,212)
PROVISIONS
Pension provision 20 (170,864) (170,864) (104,169) (104,169)
TOTAL NET ASSETS 163,917 165,046 219,798 220,442
RESTRICTED RESERVES
Income and expenditure reserve – endowment reserve 21 7,307 7,307 7,505 7,505
Income and expenditure reserve – restricted reserve 22 52 52 – –
UNRESTRICTED RESERVES
Income and expenditure reserve – unrestricted 113,936 115,065 168,639 169,283
Revaluation reserve 10 42,622 42,622 43,654 43,654
TOTAL RESERVES 163,917 165,046 219,798 220,442
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See note 33 for the detail of the restatement. The accompanying notes and policies form part of these financial statements.

The financial statements were approved by Council on 28th November 2022 and were signed on its behalf on that date by:

B. Phillips (Chair of Council)

Professor P Boyle (Vice-Chancellor)

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31ST JULY 2022 31ST JULY 2021
RESTATED
NOTE £000 £000
CASH FLOW FROM OPERATING ACTIVITIES
(Deficit) / Surplus for the year before taxation (79,566) 27,915
ADJUSTMENT FOR NON-CASH ITEMS
Depreciation 10 28,638 26,401
Impairment 13 772 –
Gain / (loss) on Investments 291 (250)
Decrease in stock 19 34
(Increase) in debtors (13,932) (23,654)
Increase in creditors 28,547 32,566
Increase / (decrease) in pension provisions 90,395 (3,905)
Share of operating loss in associate 13 1,732 236
ADJUSTMENT FOR INVESTING OR FINANCING ACTIVITIES
Investment income (812) (87)
Capital grant income (5,969) (10,552)
Interest payable 6,175 6,251
Endowment Income (30) (88)
(Gain) on the sale of tangible assets – (68)
CASH FLOWS FROM OPERATING ACTIVITIES 56,260 54,799
Taxation (15) (14)
NET CASH INFLOW FROM OPERATING ACTIVITIES 56,245 54,785
CASH FLOWS FROM INVESTING ACTIVITIES
Capital grant receipts 24,362 19,262
Proceeds from sales of tangible assets – 350
Payments made to acquire tangible assets (39,142) (22,890)
Investment income 812 87
(13,968) (3,191)
CASH FLOWS FROM FINANCING ACTIVITES
Interest paid (3,117) (3,110)
Interest element of finance lease and service concession arrangements (3,058) (3,141)
Capital element of finance lease and service concession arrangements (6,407) (6,325)
New endowments 30 88
New unsecured loans 120 7,297
Repayment of amounts borrowed (5,713) (2,976)
(18,145) (8,167)
INCREASE IN CASH AND CASH EQUIVALENTS IN THE YEAR 24,132 43,427
Cash and cash equivalents at beginning of the year 140,563 97,136
Cash and cash equivalents at end of the year 164,695 140,563
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See note 33 for the detail of the restatement.

64

65

NOTES TO THE FINANCIAL STATEMENTS Year ended 31st July 2022

NOTES TO THE FINANCIAL STATEMENTS

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Year ended 31st July 2022
CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
2022 2022 2021 2021
£000 £000 £000 £000
1. TUITION FEES AND EDUCATION CONTRACTS
Full-time home and EU students 119,004 119,004 126,333 126,333
Full-time international students 51,063 51,063 40,115 40,115
Part-time students 3,686 3,686 2,919 2,919
Educational contracts with the NHS and HEIW 14,537 14,537 14,664 14,664
Non-accredited course fees 80 80 234 234
188,370 188,370 184,265 184,265
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To generate the full-time home and EU tuition fee the University has spent £3.8m (2021: £4.1m) in relation to bursaries in accordance with the fee plan.

CONSOLIDATED
2022
£000		 UNIVERSITY
2022
£000		 CONSOLIDATED
2021
£000		 UNIVERSITY
2021
£000
2. FUNDING BODY GRANTS
RECURRENT GRANTS 8,884
19,845
851
HEFCW Teaching grants 8,884 7,190 7,190
HEFCW Research grants 19,845 16,189 16,189
HERC Capital grant 851 2,497 2,497
SPECIFIC GRANTS RECEIVED IN YEAR
Student Hardship		 29,580
–		 29,580
–
2,932
3,416
2,706
3,418
1,805		 25,876
8,805		 25,876
8,805
Digital 2,932 1,494 1,494
Estates 3,416 – –
Research and Innovation 2,706 4,051 4,051
Other 3,418 2,135 2,135
Capital 1,805 8,055 8,055
14,277 14,277 24,540 24,540
43,857 43,857 50,416 50,416

Income from capital grants relates to £2,156k in respect of buildings (2021: £2,473k) and £500k in respect of equipment (2021: £8,079k). There was no release of deferred capital grants brought forward (2021: £0).

CONSOLIDATED
2022
£000		 UNIVERSITY
2022
£000		 CONSOLIDATED
2021
£000		 UNIVERSITY
2021
£000
3. RESEARCH GRANTS AND CONTRACTS
Research Councils 25,616 25,616
2,520
3,326
35,001
2,749		 20,248 20,248
UK-based charities 2,520 2,359 2,359
UK industry and commerce 3,326 3,500 3,500
Government (UK and overseas) 35,001 33,981 33,981
Other 2,749 1,986 1,986
69,212 69,212 62,074 62,074

Included within Government (UK and overseas) above is £3.3m, being the receipt of a capital grant in the year (2021: £0), included within this is £0.3m deferred capital brought forward from 2021.

CONSOLIDATED
2022
£000		 UNIVERSITY
2022
£000		 CONSOLIDATED
2021
£000
UNIVERSITY
2021
£000
4. OTHER INCOME
Residences, catering and conferences
Other services rendered
Income from service concession agreements
Other income
NHS income in respect of the College of Medicine
Research Council full-time Doctoral/Collaborative Training Award		 28,273 28,273
2,872
9,466
18,682
6,176
1,729		 22,383
22,383
3,493
3,493
9,466
9,466
15,564
14,779
11,837
11,837
829
829
2,872
9,466
18,857
6,176
1,729
67,373 67,198 63,572
62,787

Included within other income is income from collaborations of £7.0m (2021: £2.7m), estates income of £3.4m (2021: £6.0m) which includes £2.0m insurance claims (2021: £4.8m) and £0.8m sports centre income (2021: £0.3m).

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CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
2022 2022 2021 2021
£000 £000 £000 £000
5. INVESTMENT INCOME
Investment income on endowments 67 67 92 92
Other Investment Income 745 745 (5) (5)
812 812 87 87
CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
2022 2022 2021 2021
£000 £000 £000 £000
6. DONATIONS AND ENDOWMENTS
New endowments 30 30 88 88
Donations with restrictions 53 53 – –
Unrestricted donations 379 379 251 251
462 462 339 339
CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
2022 2022 2021 2021
£000 £000 £000 £000
7. STAFF COSTS
The staff costs for the financial year were:
Salaries 143,162 142,832 130,679 130,372
Social security costs 14,823 14,823 14,225 14,225
Other pension costs 24,883 24,883 36,290 36,290
Restructuring costs 91 91 5,952 5,952
TOTAL STAFF COSTS 182,959 182,629 187,146 186,839
CHANGE IN THE USS DEFICIT FUNDING ACCRUAL 93,537 93,537 (4,250) (4,250)
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A Voluntary Exit Scheme (VES), where enhanced compensation payments were made to employees wishing to leave the University voluntarily, was initiated in 2019/20. The aim of this is to re-balance the overall cost base of the University to more appropriately match forecast income levels and ensure financial sustainability. The cost of £91k (2021: £5,952k) includes all requests that had been approved by the Registrar and Chief Operating Officer, Chief Financial Officer, Director of HR and Head of Legal Services and accepted by the individual member of staff at 31st July 2022. A further breakdown of pension costs has been included in note 30, Pension Schemes.

66

67

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31st July 2022

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NOTES TO THE FINANCIAL STATEMENTS
Year ended 31st July 2022
2022 2021
TOTAL REMUNERATION OF THE VICE-CHANCELLOR £000 £000
Salary 312 303
Employer pension contributions 17 6
329 309
Other taxable benefits:
Subsidised accomodation and associated costs – 20
Other benefits – 5
– 25
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Included within the Vice-Chancellor’s salary for 2022 is a £15k accommodation allowance (2021: £10k). The salary for the Vice-Chancellor before the accommodation allowance is £297k for the year to 31st July 2022 (2021: £293k).

The Remuneration Committee is responsible for determining the Reward Strategy of the University and for setting the remuneration and the terms and conditions for the Vice-Chancellor and other senior members of staff. The Committee is chaired by an independent lay member of Council and comprises lay members of Council who possess relevant knowledge and expertise. The Committee ensures that it complies with the requirements of the Committee of University Chairs (CUC) Higher Education Senior Staff Remuneration Code and refers to sector benchmarking information provided from the UCEA Senior Salary Survey. The Committee takes account of affordability and comparative information on the remuneration, benefits and conditions of employment in the university sector.

The Vice-Chancellor is enrolled in the enhanced opt out arrangement within the Universities’ Superannuation Scheme (the USS).

The head of the provider’s basic salary is 8.6 times the median pay of staff (2021: 8.6 times), where the median pay is calculated on a full-time equivalent basis for the salaries paid by the University to its staff.

The head of the provider’s total remuneration is 8.6 times the median total remuneration of staff (2021: 9.3 times), where the median total remuneration is calculated on a full-time equivalent basis for the total remuneration by the University to its staff.

The median calculations include salaries part funded by the NHS.

HIGHER PAID STAFF

The number of staff with a basic salary over £100k per annum has been included below.

Remuneration of higher paid staff (excluding the Vice-Chancellor), excludes employer’s pension contributions but including payments made on behalf of the NHS in respect of its contractual obligations to University staff under separate NHS contracts of employment and which are reimbursed to the University by the NHS, was:

In 2022 there were 52 higher paid members of staff (2021: 59).

----- Start of picture text -----
UNIVERSITY UNIVERSITY
2022 2021
NUMBER NUMBER
£100,000 – £104,999 8 10
£105,000 – £109,999 8 7
£110,000 – £114,999 5 12
£115,000 – £119,999 6 4
£120,000 – £124,999 4 7
£125,000 – £129,999 4 1
£130,000 – £134,999 2 3
£135,000 – £139,999 2 –
£140,000 – £144,999 – 1
£145,000 – £149,999 1 1
£150,000 – £154,999 1 2
£155,000 – £159,999 2 2
£160,000 – £164,999 – 1
£165,000 – £169,999 3 1
£170,000 – £174,999 – –
£175,000 – £179,999 1 1
£180,000 – £184,999 – 2
£185,000 – £189,999 2 –
£190,000 – £194,999 1 1
£195,000 – £199,999 1 1
£200,000 – £204,999 – 1
£205,000 – £209,999 – 1
£210,000 – £214,999 1 –
----- End of picture text -----

----- Start of picture text -----
COMPENSATION FOR LOSS OF OFFICE PAYABLE TO HIGHER PAID STAFF: 2022 2021
Compensation and severence paid to University higher paid staff (£000) 45 1,005
Number of University higher paid staff who received compensation or severence 1 10
----- End of picture text -----

68

69

NOTES TO THE FINANCIAL STATEMENTS Year ended 31st July 2022

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31st July 2022

AVERAGE NUMBER OF STAFF

AVERAGE NUMBER OF STAFF AVERAGE NUMBER OF STAFF
The average number of staff employed during the year expressed as FTE (full-time equivalents):
Academic		 2022
Number (FTE)
1,085
506
987
153
815		 2021
Number (FTE)
1,128
Research 490
Management and specialist 956
Technical 156
Other 897
3,546 3,627

KEY MANAGEMENT PERSONNEL

Key management personnel are those having authority and responsibility for planning, directing and controlling the activities of the institution. Key management consists of the senior executive officers including the Vice-Chancellor, Registrar and Chief Operating Officer, Provost, three Pro-Vice-Chancellors, three Exectuive Deans and the Chief Financial Officer.

Pro-Vice-Chancellors, three Exectuive Deans and the Chief Financial Offcer.
2022 2021
£000 £000
Key Management Personnel 1,910 1,895

The Pro-Vice Chancellor for International was appointed in August 2021. The Pro-Vice-Chancellor / Executive Dean for Faculty of Science and Engineering stood down form the post in July 2022, with an interim Pro-Vice-Chancellor / Executive Dean appointed in August 2022. During the year the number of Key Management Personnel increased from 9 to 10.

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CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
2022 2022 2021 2021
NOTE £000 £000 £000 £000
8. INTEREST AND OTHER FINANCE COSTS
Loan interest 3,117 3,111 3,110 3,107
Finance leases including service concession arrangements 3,058 3,058 3,141 3,141
Unwinding of USS discount factor 382 382 362 362
Net pension interest cost 30 1,000 1,000 1,000 1,000
7,557 7,551 7,613 7,610
CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
2022 2022 2021 2021
£000 £000 £000 £000
9. ANALYSIS OF EXPENDITURE BY ACTIVITY
Academic departments 128,326 128,326 115,133 115,133
Academic services 30,465 30,465 24,821 24,821
Research grants and contracts 56,536 56,536 54,458 54,458
Residences, catering and conferences 27,714 27,714 25,363 25,363
Premises 37,878 37,878 33,752 33,752
Professional services 59,729 59,729 59,663 59,663
USS change in contributions 91,296 91,296 (3,888) (3,888)
Other 15,685 14,318 23,618 22,434
TOTAL EXPENDITURE 447,629 446,262 332,920 331,736
----- End of picture text -----

2022
£000		 2021
£000
OTHER EXPENDITURE ABOVE INCLUDES:
Service concession arrangments 10,121
10,204

5,952
Restructuring costs 91

The voluntary exit scheme closed to new applicants during 2020-21. Minimal costs for loss of office of £91k (2021: £5,952k) were incurred in the year as the scheme was finalised (see note 7).

OTHER OPERATING EXPENSES AS PER THE STATEMENT
OF COMPREHENSIVE INCOME
Non-capitalised equipment		 CONSOLIDATED
2022
£000
CONSOLIDATED
2021
£000
16,223
11,444
6,004
5,061
24,165
22,672
10,994
10,881
7,706
6,210
16,878
23,223
4,019
3,424
8,115
6,117
23,130
17,892
4,180
1,174
3,897
1,476
2,678
3,132
1,484
920
1,262
347
4,203
2,037		 CONSOLIDATED
2022
£000
CONSOLIDATED
2021
£000
16,223
11,444
6,004
5,061
24,165
22,672
10,994
10,881
7,706
6,210
16,878
23,223
4,019
3,424
8,115
6,117
23,130
17,892
4,180
1,174
3,897
1,476
2,678
3,132
1,484
920
1,262
347
4,203
2,037
Consumables 6,004
Rent, rates and leases 24,165
Repairs, refurbishment, maintenance and building costs 10,994
Heat, light, power and water 7,706
Scholarships, bursaries, prizes and fee contributions 16,878
Books, publications, periodicals and library services 4,019
Student recruitment and advertising 8,115
Consultancy, professional services and agency 23,130
Travel and conference costs 4,180
Employee related expenditure 3,897
Subscriptions and contributions 2,678
Offce expenses 1,484
Catering 1,262
Other expenses 4,203
134,938
116,010

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CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
2022 2022 2021 2021
£000 £000 £000 £000
EXTERNAL AUDITORS REMUNERATION
Audit of the University and its subsidiaries 132 105 96 73
Audit related assurance services 31 31 16 16
Taxation compliance services 14 – 7 –
Taxation advisory services 5 5 7 7
TOTAL NON-AUDIT SERVICES 50 36 30 23
----- End of picture text -----

70

71

NOTES TO THE FINANCIAL STATEMENTS Year ended 31st July 2022

----- Start of picture text -----
NOTES TO THE FINANCIAL STATEMENTS
Year ended 31st July 2022
10. NON-CURRENT ASSETS – FIXED ASSETS – CONSOLIDATED
Service
Fixtures, Assets in the
Freehold land concession
fittings and course of Heritage
and buildings arrangements equipment Vessels construction assets Total
£000 £000 £000 £000 £000 £000 £000
COST
At 1st August 2021 371,468 157,626 53,948 1,566 14,818 945 600,371
Additions – 3,424 10,921 – 28,161 60 42,566
Transfers 6,934 – 1,751 – (8,685) – –
Impairment – – (772) – – – (772)
At 31st July 2022 378,402 161,050 65,848 1,566 34,294 1,005 642,165
CONSISTING OF VALUATION AS AT:
31st July 2022 42,622 – – – – – 42,622
Cost 335,780 161,050 65,848 1,566 34,294 1,005 599,543
378,402 161,050 65,848 1,566 34,294 1,005 642,165
ACCUMULATED DEPRECIATION
At 1st August 2021 64,214 45,785 37,758 136 – – 147,893
Charge for year 11,376 7,063 10,136 63 – – 28,638
At 31st July 2022 75,590 52,848 47,894 199 – – 176,531
CARRYING AMOUNT
At 31st July 2022 302,812 108,202 17,954 1,367 34,294 1,005 465,634
At 1st August 2021 307,254 111,841 16,190 1,430 14,818 945 452,478
----- End of picture text -----

NON-CURRENT ASSETS – FIXED ASSETS – UNIVERSITY

Freehold land
and buildings
£000
COST
At 1st August 2021
371,468
Additions
Transfers
6,934
At 31st July 2022
378,402
CONSISTING OF VALUATION AS AT:
31st July 2022
42,622
Cost
335,780
378,402
ACCUMULATED DEPRECIATION
At 1st August 2021
64,214
Charge for year
11,376
At 31st July 2022
75,590
CARRYING AMOUNT
At 31st July 2022
302,812
At 1st August 2021
307,254		 Freehold land
and buildings
£000
371,468
6,934		 Service
concession
arrangements
£000
157,626
3,424		 Fixtures,
fttings and
equipment
£000
51,946
10,921
1,751		 Vessels
£000
1,566
–
–		 Assets in the
course of
construction
£000
14,818
28,161
(8,685)		 Heritage
assets
£000
945
60
–		 Total
£000
598,369
42,566
–
378,402 161,050 64,618 1,566 34,294 1,005 640,935
AS AT:
42,622
335,780		 –
161,050		 –
64,618		 –
1,566		 –
34,294		 –
1,005		 42,622
598,313
378,402 161,050 64,618 1,566 34,294 1,005 640,935
45,785
7,063		 36,699
10,044		 136
63		 –
–		 –
–		 146,834
28,546
75,590 52,848 46,743 199 175,380
302,812 108,202 17,875 1,367 34,294 1,005 465,555
307,254 111,841 15,247 1,430 14,818 945 451,535

A full valuation of the University’s land and property was carried out on 31st July 2014 by qualified chartered surveyors in accordance with the RICS valuation – Professional Standards 2014 (the Red Book). Under FRS 102 paragraph 35.10, the University has elected to measure land and property at fair value at the transition date of 31st July 2014 and use the fair value as the deemed cost on that date. The properties are being depreciated from the valuation date. As the assets are depreciated or sold, an appropriate transfer is made from the revaluation reserve to the Income and expenditure reserve. Analysis of the land and buildings valued at the date of transition to FRS 102 using the deemed cost exemption.

At 31st July 2022, freehold land and buildings included £16.5m (2021: £16.5m) in respect of freehold land which is not depreciated.

Following review of tangible assets, no impairment of tangible assets in the University was considered necessary in 2022 (2021: £0).

72

73

NOTES TO THE FINANCIAL STATEMENTS Year ended 31st July 2022

NOTES TO THE FINANCIAL STATEMENTS Year ended 31st July 2022

11. NON-CURRENT ASSETS – HERITAGE ASSETS

Heritage assets included on the Statement of Financial Position refer largely to the University’s Art Collection. There are also other heritage assets which due to their nature we are unable to value and therefore have not been included.

The Egypt Centre holds the Wellcome Collection which includes Egyptian antiques and artefacts. These assets are unique and not replaceable. The Egypt Centre is a recognised museum, accredited by the Arts Council and a recognised ACCES partner. It aims to collect, interpret and care for Egyptian archaeological material and documents and preservation is critical to their work. All policies in place are reviewed by the Arts Council. The Wellcome Collection is available to view by all University staff and students, local schools as well as the wider general public.

The picture and art collection is recognised on the Statement of Financial Position under Heritage Assets was valued in 2008 by an independent valuer and has been taken as deemed cost on transition. The majority of this art collection can be viewed around the University.

The University also holds a silver collection which includes but is not limited to competition cups, bowls and vases dating between the 1950s and 1980s. No price can be attributed to this collection, hence they are not held on the Statement of Financial Position. The collection is stored securely but can be available for inspection upon request.

The University also holds Dylan Thomas manuscripts which were purchased out of University funds.

12. SERVICE CONCESSION ARRANGEMENTS

GWALIA RESIDENCES

Gwalia Phase 1 – A 30-year lease was entered into in 2004 to build three new blocks of accommodation with 272 units. The occupancy guarantee is 100%.

Gwalia Phase 2 – A 30-year lease was entered into in 2010 comprising of 351 units with the lower floors shelled for University activities. The occupancy guarantee is 100%.

BAY RESIDENCES – PHASE 1A

In September 2015, the University commenced a 45-year contract with a third-party provider for the provision and maintenance of phase 1a of the student accommodation on the Bay Campus, providing 899 rooms for 923 students. In February 2018, the third-party, with the University’s consent, entered into a transaction to transfer the contract to another third-party. Under the terms of the new agreement, the lease was extended to 2062.

The assets and liabilities relating to this scheme are recognised on the University’s Statement of Financial Position.

The University has a 50% annual occupancy guarantee amounting to committed annual payments of £1,485k recorded within Other Comprehensive Income.

The University has the exclusive right over all accommodation units to nominate occupation by students until the 30th March preceding the September term. The University, furthermore, has the right to nominate occupation units of accommodation over the summer period (subject to prior discussions with the third-party). At the end of the contract, the University has the option to acquire the residences for a nominal £1.00 option fee.

The University has six Service Concession Arrangements in the Statement of Financial Position.

BAY RESIDENCES – PHASE 1B

MOVEMENT IN SERVICE CONCESSION ARRANGEMENT ASSETS

The asset value of the service concession included in the Statement of Financial Position as at 31st July 2022 is £108,202k (1st August 2021 £111,841k).

The reduction of £3,638k is as a result of £7,062k of depreciation less the addition of £3,424k which occurred following the additional guarantee given on the three Bay Campus residences, increasing the occupancy guarantee from 50% to 100% for one academic year only.

MOVEMENT IN SERVICE CONCESSION ARRANGEMENT LIABILITIES

The total liabilities relating to service concession arrangements included in the Statement of Financial Position as at 31st July 2022 were £119,032k (1st August 2021 £122,015k). Liabilities were reduced by £6,407k during the year following repayment and accounting adjustments. Additional occupancy guarantees were given in the year in relation to the three Bay Campus residences increasing the liability by £3,424k, reducing the overall reduction in the liability to £2,983k.

In January 2016, the University commenced a 45-year contract with a third-party provider for the provision and maintenance of phase 1b of the student accommodation on the Bay Campus, providing 545 single rooms. In February 2018, the contract was transferred to another third-party and the lease was extended to 2062.

The assets and liabilities relating to this scheme are recognised on the University’s Statement of Financial Position.

The University has a 50% annual occupancy guarantee amounting to committed annual payments of £823k recorded within Other Comprehensive Income.

The University has the exclusive right over all accommodation units to nominate occupation by students until the 30th March preceding the September term. The University, furthermore, has the right to nominate occupation units of accommodation over the summer period (subject to prior discussions with the third-party). At the end of the contract, the University has the option to acquire the residences for a nominal £1.00 option fee.

FUTURE COMMITMENTS

The following table analyses the University’s future commitments in relation to the service concession arrangements.

----- Start of picture text -----
PAYABLE IN PAYABLE IN PAYABLE IN
£’000 1 YEAR 2-5 YEARS >5 YEARS TOTAL
Liability repayments 6,494 13,224 99,314 119,032
Finance charge 2,972 10,944 37,583 51,499
9,466 24,168 136,897 170,531
----- End of picture text -----

Prior to conversion of the Financial Statements to reflect FRS 102, the University had entered into the following leases which were previously held off the Statement of Financial Position. These leases have now been brought onto the Statement of Financial Position as Service Concession Arrangements. The notes below give more information on these arrangements:

BAY RESIDENCES – PHASE 1C

On 15th December 2015, the University entered into a 45-year contract with a third-party provider for the provision and maintenance of phase 1c of the student accommodation on the Bay Campus, providing 538 single rooms.

The assets and liabilities relating to this scheme are recognised on the University’s Statement of Financial Position.

The University has a 50% annual occupancy guarantee amounting to committed annual payments of £1,056k recorded within Other Comprehensive Income.

The University has the exclusive right over all accommodation units to nominate occupation by students until the 30th March preceding the September term. The University further has the right to nominate occupation units of accommodation over the summer period (subject to prior discussions with the third-party). At the end of 45-year contract, the University has the option to acquire the residences for a nominal £1.00 option fee.

THE COLLEGE ACADEMIC BUILDING

On 8th September 2017, the University entered into a 20 year contract with a third-party provider for the provision and maintenance of an Academic Building.

The University has guaranteed 35% of the building amounting to committed gross annual payments of £357k.

The University has exclusive rights over the allocated 35% of the building and controls the use within this area.

74

75

NOTES TO THE FINANCIAL STATEMENTS Year ended 31st July 2022

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31st July 2022

CONSOLIDATED
2022
£000		 UNIVERSITY
2022
£000		 CONSOLIDATED
2021
£000		 UNIVERSITY
2021
£000
13. NON-CURRENT INVESTMENTS
Investment in associates 48 48 1,780 1,780
Investment in subsidiaries – 1,929 – 1,929
Other investments 238 – 288 –
286 1,977 2,068 3,709

INVESTMENT IN ASSOCIATE

The Institution holds the following 50% investments in both Swan Global Education LLP (2021: 50%) and Wales National Pool Swansea (2021: 50%). The investments are accounted for at cost less impairment in the Institution financial statements and using the equity method in the consolidated financial statements.

At 1st August 2021 CONSOLIDATED
2022
£000
1,780		 UNIVERSITY
2022
£000
1,780		 CONSOLIDATED
2021
£000
2,016		 UNIVERSITY
2021
£000
2,016
Share of (loss) retained by associate (1,732) (1,732) (236) (236)
AT 31ST JULY 2022 48 48 1,780 1,780
INVESTMENT IN SUBSIDIARY
At 1st August 2021		 CONSOLIDATED
2022
£000
–		 UNIVERSITY
2022
£000
1,929		 CONSOLIDATED
2021
£000
–		 UNIVERSITY
2021
£000
2,389
Additions – 772 – 65
Impairment – (772) – (525)
AT 31ST JULY 2022 – 1,929 – 1,929

The £772k impairment relates to the investment in the 100% owned subsidiary entity Swansea Materials Research and Testing Ltd, as does the £772k additional investment.

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CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
2022 2022 2021 2021
OTHER INVESTMENTS £000 £000 £000 £000
At 1st August 2021 288 – 452 –
Additions – – 117 –
Disposals – – (50) –
Impairment/Reversals 8 – – –
Revaluations (58) – (231) –
AT 31ST JULY 2022 238 – 288 –
OTHER INVESTMENTS CONSIST OF:
At fair value:
Market securities 123 – 181 –
At cost less impairment:
Group investments in spin outs 115 – 107 –
238 – 288 –
----- End of picture text -----

Details of investments in which the consolidated group and University hold 20% or more of the nominal value of any class of shares are as follows:

----- Start of picture text -----
COMPANY REGISTERED OFFICE PRINCIPAL ACTIVITY HOLDING STATUS
Gower Innovations Ltd Swansea University, SA1 8EN Other manufacturing not elsewhere classified Ordinary shares 20%
Grove Azets,
Nanomaterials Ltd SA7 9FS Dormant Ordinary shares 20%
Azets,
Refiex Ltd SA7 9FS Dormant Ordinary shares 20%
Azets, Manufacture
Trameto Ltd SA7 9FS of electronic components Ordinary shares 23%
Other research and experimental
Haemomoetrics Ltd Swansea University, SA2 8PP development on natural sciences Ordinary shares 20%
and engineering
Other research and experimental
Azets,
ProGnomics Ltd SA7 9FS development on natural sciences Ordinary shares 20%
and engineering
Other research and experimental
Azets,
Semitechnologies Ltd SA7 9FS development on natural sciences Ordinary shares 20%
and engineering
Bay Campus Swansea University, Dormant Partner 50%
Developments LLP SA2 8PP
WNPS Wales National Operation of Guarantee 50%
Pool SA2 8QG sports facilities
Swan Global Littlemore Park,
Educational Partner 50%
Education OX4 4FY
Swansea Materials Research and Testing Swansea University, SA2 8PP Other research and experimental development on natural sciences Ordinary shares 100%
and engineering
Swansea Innovations Swansea University, SA2 8PP Management consultancy activities other than financial management Ordinary shares 100%
SU Developments Swansea University, SA2 8PP Dormant Ordinary shares 100%
SU Pathway College Ltd SA2 8PPSwansea University, Combined facilities support activities Ordinary shares 100%
----- End of picture text -----

Investments in subsidiary companies are measured at transaction price (including transaction costs) and considered annually for impairment.

76

77

NOTES TO THE FINANCIAL STATEMENTS Year ended 31st July 2022

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31st July 2022

----- Start of picture text -----
CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
2022 2022 2021 2021
£000 £000 £000 £000
14. STOCK
General consumables 58 38 28 28
Work in progress 47 – 96 –
105 38 124 28
CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
2022 2022 2021 2021
£000 £000 £000 £000
15. CURRENT INVESTMENTS
Short-term investments in shares 1,889 1,889 2,236 2,236
Short-term bonds 2,429 2,429 2,382 2,382
Other short-term investments 511 511 325 325
Short-term deposits 200 200 326 326
5,029 5,029 5,269 5,269
----- End of picture text -----

The decrease in fair value of short-term deposits in the year was £240k (2021: increase of £414k).

Deposits are held with banks and building societies operating in the London market and licences by the Financial Services Authority with more than three months maturity at the Balance Sheet date. The interest rates for those deposits are fixed for the duration of the deposit at the time of placement.

At 31st July 2022, the weighted average interest rate of these fixed deposits was 1.6% (2021: 0.95%). The fair value of these deposits was not materially different from their book value. The yield increase is due to rising interest rates across the world which has pushed up bond yields. There have also been dividend increases in part of the Barclays portfolio and as the portfolio value has fallen in the run up to 31st July the % yield is also enhanced.

% yield is also enhanced.
CONSOLIDATED
2022
£000		 UNIVERSITY
2022
£000		 CONSOLIDATE
RESTATED
2021
£000		 UNIVERSITY
RESTATED
2021
£000
16. TRADE AND OTHER RECEIVABLES
Amounts falling due within one year:
Net trade debtors		 12,196 12,126 9,690 9,522
Research grant claims receivable 5,798 5,798 6,468 6,468
Accrued income – research grants 42,604 42,604 31,392 31,392
Prepayments and accrued income 15,672 16,022 15,219 15,005
Amounts due from group undertakings – – – 11
See note 33 for the detail of the restatement. 76,270 76,550 62,769 62,398
CONSOLIDATED
2022
£000		 UNIVERSITY
2022
£000		 CONSOLIDATED
RESTATED
2021
£000		 UNIVERSITY
RESTATED
2021
£000
17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank overdraft – – 397 –
Unsecured loans 5,817 5,817 5,712 5,712
Service concession arrangements 6,495 6,495 6,408 6,408
Trade payables 8,412 8,415 6,481 6,481
Social security and other taxation payable 5,592 5,585 5,232 5,226
Accruals and deferred income 134,521 134,415 90,259 89,770
Amounts due to group undertakings – 157 – 157
160,837 160,884 114,489 113,754
ACCRUALS AND DEFERRED INCOME
Included with accruals and deferred income are the following
items which have been deferred:
Research grants received in advance		 CONSOLIDATED
2022
£000
50,596		 UNIVERSITY
2022
£000
50,596		 CONSOLIDATED
RESTATED
2021
£000
39,632		 UNIVERSITY
RESTATED
2021
£000
39,632
Funding Council grants received in advance 4,198 4,198 3,526 3,526
Capital grants received in advance 28,883 28,883 10,922 10,922
Other accruals 50,844 50,738 36,179 35,690
134,521 134,415 90,259 89,770

Capital grants received in advance include £28,883k in relation to the CISM building (2021: £10,634k); there are no other capital grants received in advance at 31st July 2022 (2021: £288k). Capital grants are released to the Income and Expenditure account upon fulfillment of the grant conditions, and usually upon completion of the building.

See note 33 for the detail of the restatement.

----- Start of picture text -----
CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
2022 2022 2021 2021
£000 £000 £000 £000
18. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Service concession arrangements 112,537 112,537 115,607 115,607
Income in advance 1,723 1,723 1,767 1,767
Unsecured loans 102,141 102,141 107,838 107,838
CREDITORS DUE AFTER MORE THAN ONE YEAR 216,401 216,401 225,212 225,212
CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
2022 2022 2021 2021
£000 £000 £000 £000
19. ANALYSIS OF UNSECURED LOANS
Due within one year or on demand 5,817 5,817 5,712 5,712
Due within one and two years 6,046 6,046 5,818 5,818
Due within two and five years 18,459 18,459 18,114 18,114
Due in five years or more 77,636 77,636 83,906 83,906
TOTAL UNSECURED LOANS REPAYABLE BY 2044 107,958 107,958 113,550 113,550
----- End of picture text -----

CONTINUED

Included in the loans are the following:

----- Start of picture text -----
AMOUNT INTEREST RATE
LENDER £000 TERM BORROWER
European Investment Bank 9,167 Fixed 2.576% June 2033 University
European Investment Bank 10,000 Fixed 2.423% January 2034 University
European Investment Bank 7,847 Fixed 3.843% August 2034 University
European Investment Bank 7,866 Fixed 3.964% January 2035 University
European Investment Bank 8,347 Fixed 4.132% August 2035 University
European Investment Bank 58,026 Fixed 2.698% April 2044 University
Sure Loan 6,585 Fixed 0.550% March 2031 University
Salix 120 Fixed 0% April 2031 University
TOTAL 107,958
79
----- End of picture text -----

78

NOTES TO THE FINANCIAL STATEMENTS Year ended 31st July 2022

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31st July 2022

OBLIGATION
TO FUND
DEFICIT ON USS
£000		 SUPS PENSION
SCHEME
PROVISION
£000		 TOTAL PENSION
PROVISIONS
£000
20. PROVISIONS FOR LIABILITIES
CONSOLIDATED AND UNIVERSITY
AT 1ST AUGUST 2021		 42,969
(2,624)
93,919		 61,200
(900)
(23,700)		 104,169
Utilised in year (3,524)
Additions in year 70,219
AT 31ST JULY 2022 134,264 36,600 170,864

The obligation to fund the past deficit on the Universities Superannuation Scheme (USS) arises from the contractual obligation with the USS to fund deficit payments in accordance with the deficit recovery plan. In calculating this provision, management have estimated future staff levels within the USS scheme for the duration of the contractual obligation and salary inflation.

See note 30 for further information on the SUPS and USS pension scheme.

21. ENDOWMENT FUNDS

Restricted net assets relating to endowments are as follows:

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Restricted Unrestricted
permanent permanent Expendable
endowments endowments endowments 2022 Total 2021 Total
BALANCES
£000 £000 £000 £000 £000
AT 1ST AUGUST 2021
Capital 4,293 1,757 624 6,674 6,172
Accumulated income 702 62 67 831 809
4,995 1,819 691 7,505 6,981
New donations and endowments – – 30 30 88
Investment income 42 – 2 44 67
–
Expenditure (14) (17) (31) (45)
(Decrease) in market value of investments (150) (88) (3) (241) 414
AT 31ST JULY 2022 4,873 1,731 703 7,307 7,505
Represented by:
Capital 4,143 1,669 651 6,463 6,674
Accumulated income 730 62 52 844 831
4,873 1,731 703 7,307 7,505
ANALYSIS BY TYPE OF PURPOSE
Lectureships 21 22
Scholarships and bursaries 3,076 3,160
Research support 297 306
Prize funds 877 908
General 3,036 3,109
7,307 7,505
ANALYSIS BY ASSET
Current asset investments 5,029 5,269
Bank Balance – University 2,278 2,236
7,307 7,505
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The institution has the following individually material endowments:

The University holds over 170 endowments, comprising of permanent and expendable funds. Each endowment has its own specific restriction with spend being controlled by the allocated Budget Managers. The University has one significant endowment worth over £1.0m, being the general endowment fund. This is a permanent endowment holding £1.3m of endowered funds, currently valued at £2.0m within the portfolio. Being a general endowment, any income earned is released back to the University for non-specific purposes. All other endowments are not significant but have specific purposes attached to them.

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Capital Grants
Unspent Donations 2022 Total 2021 Total
£000 £000 £000 £000
22. RESTRICTED RESERVES
Reserves with restrictions are as follows:
CONSOLIDATED AND INSTITUTION
BALANCES
AT 1ST AUGUST 2021 – – – –
New restricted donations – 53 53 –
Investment Income – – – –
Expenditure – (1) (1) –
Total restricted comprehensive income for the year – – – –
AT 31ST JULY 2022 – 52 52 –
ANALYSIS OF OTHER RESTRICTED FUNDS / DONATIONS BY TYPE OF PURPOSE:
Scholarships 11 –
Hardship 27 –
Campus and sports facilities 3 –
General 11 –
52 –
At 31st July
At 1st August 2021 Cash Flows 2022
£000 £000 £000
23. CASH AND CASH EQUIVALENTS
CONSOLIDATED
Cash and Cash equivalents 141,357 23,338 164,695
Bank overdraft (397) 397 –
140,960 23,735 164,695
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80

81

NOTES TO THE FINANCIAL STATEMENTS Year ended 31st July 2022

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31st July 2022

2022 £000

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24. CONSOLIDATED RECONCILIATION OF NET DEBT
NET DEBT 1ST AUGUST 2021 94,605
Movement in cash and cash equivalents 23,338
Other non-cash changes (55,648)
NET DEBT 31ST JULY 2022 62,295
CHANGE IN NET DEBT (32,310)
2022 2021
ANALYSIS OF NET DEBT: £000 £000
CASH AND CASH EQUIVALENTS 164,695 141,357
BORROWINGS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Unsecured loans 5,817 5,712
Bank overdraft – 397
Service concession arrangements 6,495 6,408
12,312 12,517
BORROWINGS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Service concession liabilities due after one year 112,537 115,607
Unsecured loans 102,141 107,838
214,678 223,445
NET DEBT 62,295 94,605
CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
2022 2022 2021 2021
NOTE £000 £000 £000 £000
25. FINANCIAL INSTRUMENTS
FINANCIAL ASSETS
Financial assets at fair value through
Statement of Comprehensive Income 123 354
Financial assets that are equity instruments
measured at cost less impairment
Other investments 115 – (66)
13 238 – 288 –
Financial assets that are debt instruments
measured at amortised cost
Cash and cash equivalents 164,695 164,046 140,960 140,638
Other investments 15 5,029 5,029 5,269 5,269
Gross Trade receivables 14,460 14,390 11,018 10,850
Other receivables 16 5,798 5,798 6,468 6,468
189,982 189,263 163,715 163,225
FINANCIAL LIABILITIES
Financial liabilities measured at amortised cost
Bank overdrafts 17 – – 397 –
Loans 19 107,958 107,958 113,550 113,550
Service concessions 17/18 119,032 119,032 122,015 122,015
Trade Creditors 17 8,412 8,415 6,481 6,481
235,402 235,405 242,443 242,046
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CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
2022 2022 2021 2021
£000 £000 £000 £000
26. CAPITAL AND OTHER COMMITMENTS
A provision has not been made for the following capital
commitments at 31st July 2022:
Capital commitments 3,641 3,641 26,445 26,445
3,641 3,641 26,445 26,445
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The significant decrease in capital commitments has resulted from the Centre for Integrative Semiconductor Materials (CISM) nearing completion, with the capital commitment for the CISM building decreasing from £24,401k at July 2021 to £2,508k at July 2022. The only other significant capital commitments is £855k for additional sports facilities on the Bay Campus.

27. CONTINGENT LIABILITIES £000 £000 £000 £000
Guarantees
To Lloyds for SMaRT Ltd – 500 – 500
– 500 – 500

The University is acting as guarantor for Swansea Materials Research and Testing Limited in relation to the £500k overdraft facility only. The University believe there is only a limited possibility of the guarantee being paid as Swansea Materials Research and Testing Limited is a wholly-owned subsidiary controlled by senior University staff members. The extent of the guarantee being required will depend on the current overdraft in the subsidiary. If paid, there is unlikely to be any reimbursement for this contingent liability.

The University is a member of UMAL, a company limited by guarantee, formed to provide a mutual association for covers. Under the terms of its membership, each member acts as insurer and insured. If the association as a whole suffers a shortfall in any underwriting year, the members are liable for their pro-rated share. The potential for a shortfall and the value of a shortfall in any given year is unknown. There is not likely to be any possibility of reimbursement if this guarantee is called upon.

The Institution has given written undertakings to support the subsidiary companies and Wales National Pool Swansea for a period of twelve months

from the date of approval of these financial statements.

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2022 2021
Land and Land and
Buildings Buildings
£000 £000
28. LEASE OBLIGATIONS
Total rentals payable under operating leases:
CONSOLIDATED AND INSTITUTION
Payable during the year 1,190 1,137
Future minimum lease payments due:
Not later than 1 year 1,088 1,134
Later than 1 year and not later than 5 years 2,472 3,051
Later than 5 years 4,599 4,910
TOTAL LEASE PAYMENTS DUE 9,349 10,232
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No new leases were negotiated during 2022, with several leases being in the process of renegotiated. The ward at Singleton Hospital has been handed back, with no rental costs being incurred during 2022 or falling due in future periods.

During the year, the University was tenant on three significant leases, The College, a University joint venture company, Bay Campus Car Park and a unit within Baglan Energy Park. The lease with The College, which is within a building on the Bay Campus, runs until 2038. The car park lease which runs until September 2023 is currently being renegotiated.

82

83

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31st July 2022

Year ended 31st July 2022

Total rentals receivable under operating leases:

The University leases out small areas of space on both Singleton and Bay Campus. Leases include a dental surgery, a doctors surgery, a retail unit for the Students’ Union, laboratory space to Swansea Materials Research and Testing Ltd, a wholly owned subsidiary company, and lab space for Natural Resources Wales. The University also leases out small areas and offices to companies working alongside the University. The terms and break periods differ for each lease. The University does not hold any investment properties as part of its portfolio as rental areas are minor areas within larger buildings.

CONSOLIDATED AND INSTITUTION
Future minimum lease payments due:
Not later than 1 year		 2022
Land and
Buildings
£000
369
1,087
1,404		 2021
Land and
Buildings
£000
311
Later than 1 year and not later than 5 years 1,011
Later than 5 years 1,614
TOTAL LEASE PAYMENTS DUE 2,860 2,936

There were no contingent rents receivable during 2022 (2021: £0).

(I) THE UNIVERSITIES’ SUPERANNUATION SCHEME

The University participates in Universities Superannuation Scheme (USS) which is the main scheme covering most academic and academic-related staff. The Scheme is a hybrid pension scheme, providing defined benefits (for all members), as well as defined contribution benefits. The assets of the scheme are held in a separate trustee-administered fund.

USS is a multi-employer scheme and is accounted for as set out in the accounting policies.

The total cost charged to the Consolidated Statement of Comprehensive Income is £23,329k (2021: £22,336k) including PensionChoice, but excluding the impact of the change in the deficit recovery plan, as shown in note 7.

Deficit recovery contributions due within one year for the institution are £2,624k (2021: £2,117k).

The latest available complete actuarial valuation of the Retirement Income Builder section of the Scheme is at 31st March 2020 (“the valuation date”), which was carried out using the projected unit method.

Since the institution cannot identify its share of USS Retirement Income Builder (defined benefit) assets and liabilities, the following disclosures reflect those relevant for those assets and liabilities as a whole.

The 2020 valuation was the sixth valuation for the scheme under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to have sufficient and appropriate assets to cover their technical provisions. At the valuation date, the value of the assets of the scheme was £66.5 billion and the value of the scheme’s technical provisions was £80.6 billion indicating a shortfall of £14.1 billion and a funding ratio of 83%.

29. EVENTS AFTER THE REPORTING PERIOD

There are no events to report which have occurred after 31st July 2022.

30. PENSION SCHEMES

Different categories of staff were eligible to join one of the following schemes:

Universities’ Superannuation Scheme (USS)

Swansea University Pension Scheme (SUPS) – Closed to new members 31st December 2011 National Employment Savings Trust (NEST) – from 1st January 2012

The University also contributes to the NHS Pension Scheme for a number of its employees. USS and SUPS are both defined-benefits schemes. The assets of both schemes held in separate trustee-administered funds. NEST is a defined-contribution scheme.

STATEMENT OF COMPREHENSIVE INCOME
– NET PENSION COST
USS		 CONSOLIDATED
2022
£000
23,329
93,537
1,270
1,204		 UNIVERSITY
2022
£000
23,329		 CONSOLIDATED
2021
£000
22,336		 UNIVERSITY
2021
£000
22,336
USS pension defcit charge 93,537 (4,250) (4,250)
SUPS 1,270 12,794 12,794
Other 1,204 1,160 1,160
OTHER COMPREHENSIVE INCOME
– ACTUARIAL GAIN IN RESPECT OF PENSION SCHEMES
SUPS		 119,340 119,340 32,040 32,040
23,700 23,700 12,600 12,600
STATEMENT OF FINANCIAL POSITION
– PENSION SCHEME LIABILITY (NOTE 20)
USS		 23,700 23,700 12,600 12,600
134,264
36,600		 134,264 42,969 42,969
SUPS 36,600 61,200 61,200
170,864 170,864 104,169 104,169

The key financial assumptions used in the 2020 valuation are described below. More detail is set out in the Statement of Funding Principles. (uss.co.uk/about-us/valuation-and-funding/statement-of-funding-principles).

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Term dependent rates in line with the difference between the Fixed Interest
CPI assumption and Index Linked yield curves less:
1.1% p.a. to 2030, reducing linearly by 0.1% p.a. to a long term difference
of 0.1% p.a. from 2040.
Pension increases
CPI assumption plus 0.05%
(subject to a floor of 0%)
Discount rate (forward rates) Fixed interest gilt yield curve plus:
Pre-retirement: 2.75% p.a.
Post retirement: 1.00% p.a.
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The main demographic assumption used relates to the mortality assumptions. These assumptions are based on analysis of the scheme’s experience carried out as part of the 2020 actuarial valuation. The mortality assumptions used in these figures are as follows:

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2020 valuation
Mortality base table 101% of S2PMA "light" for males and 95% of S3PFA for females.
CMI 2019 with a smoothing parameter of 7.5, an initial addition of 0.5% pa and
Future improvements to mortality
a long term improvement rate of 1.8% pa for males and 1.6% pa for females.
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84

85

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31st July 2022

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NOTES TO THE FINANCIAL STATEMENTS
Year ended 31st July 2022
The current life expectancies on retirement at age 65 are:
2022 2021
Males currently aged 65 (years) 23.9 24.7
Females currently aged 65 (years) 25.5 26.1
Males currently aged 45 (years) 25.9 26.7
Females currently aged 45 (years) 27.3 27.9
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A new deficit recovery plan was put in place as part of the 2020 valuation, which requires payment of 6.2% of salaries over the period 1st April 2022 until 31st March 2024 at which point the rate will increase to 6.3%. The 2022 deficit recovery liability reflects this plan. The liability figures have been produced using the following assumptions:

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2022 2021
Discount Rate 3.33% 0.89%
Pensionable salary growth 1.11% 1.00%
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The employers' contribution rates are as follows:

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EFFECTIVE DATE RATE
1st October 2019 to 30th September 2021 21.10%
1st October 2021 to 31st March 2022 21.40%
1st April 2022 to 31st March 2024 21.60%
1st April 2024 to 30th April 2038 21.40%
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SENSITIVITY ANALYSIS

As set out in the accounting policies, there are some critical judgements made in estimating the obligation to fund the USS deficit. The sensitivity of the principal assumptions used to measure the USS deficit provision are set out below:

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APPROXIMATE IMPACT ON PROVISION
£000
0.5% pa decrease in discount rate 5,821
0.5% pa increase in salary inflation over duration 5,751
0.5% pa increase in salary inflation year 1 only 642
0.5% increase in staff changes over duration 5,895
0.5% increase in staff changes year 1 only 598
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(II) NHS PENSION SCHEME

The Institution also participates in the NHSPS which is contracted out of the State Second Pension (S2P). The notional assets of NHSPS are assessed by the Government Actuary and the benefits are underwritten by the Government.

The NHS Pension Scheme is a defined benefit public service pension scheme, which operates on a pay-as-you-go basis. A new reformed scheme was introduced on 1st April 2015 that calculates pension benefits based on career average earnings. Transitional arrangements permit individuals who on 1st April 2012 were within ten years of normal pension age to continue participating in the old ‘final salary’ NHS Pension Scheme arrangements (the 1995 and 2008 sections).

An HM Treasury pension scheme valuation for funding purposes was carried out as at March 2012. The Scheme Regulations have been changed to allow contribution rates to be set by the Secretary of State for Health, with the consent of HM Treasury, and consideration of the advice of the Scheme Actuary and appropriate employee and employer representatives as deemed appropriate. The contribution rate payable by the Institutions during the year ended 31st July 2018 salaries, was equal to 14.3% of the total pensionable in accordance with the conclusion of the Government Actuary’s report on the scheme.

(III) SWANSEA UNIVERSITY PENSION SCHEME

(RETIREMENT BENEFITS) DISCLOSURE FOR THE ACCOUNTING PERIOD ENDING 31ST JULY 2022

The University operates a final-salary defined-benefit pension scheme that non-academic employees of the University can participate in, called the Swansea University Pension Scheme (SUPS). The scheme is externally funded and is contracted out of the State Second Pension (S2P) of pension provision.

The last formal triennial actuarial valuation of the scheme was performed as at 1st August 2019 by a professionally-qualified actuary. The following are based on the results of the 1st August 2019 triennial valuation projected forward with allowance for benefit accrual, expected investment return and actual cashflows and have been adjusted for FRS 102 assumptions detailed below.

During the accounting period, the University paid contributions to the pension scheme at the rate of 23% of pensionable salaries in respect of the future accrual of benefits, death in service premiums and expenses.

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ASSUMPTIONS
The financial assumptions used to calculate scheme liabilities under FRS 102 are: 31ST JULY 2022 31ST JULY 2021
Price Inflation (RPI) 3.3% 3.3%
Price Inflation (CPI) 2.9% 2.8%
Rate of increase in salaries 3.2% 3.2%
Rate of increase of pensions in payment for SUPS members 3.3% 3.3%
Increases to deferred pensions before retirement 2.9% 2.8%
Discount rate 3.4% 1.7%
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The most significant non-financial assumption is the assumed level of longevity. The table below shows the life expectancy assumptions used in the accounting assessments based on the life expectancy of male and female members at age 65 and non-pensioners who are currently aged 45.

Pensioner – male 31ST JULY 2022
20.1		 31ST JULY 2021
20.1
Pensioner – female 22.4 22.4
Non-pensioner (currentlyaged 45) – male 21.1 21.0
Non-pensioner (currentlyaged 45) – female 23.5 23.5

Scheme assets and expected rate of return for SUPS

The expected return on assets has been derived as the weighted average of the expected returns from each of the main asset classes (i.e. equities and bonds). The expected return for each asset class reflects a combination of historical performance analysis, the forward-looking views of the financial markets (as suggested by the yields available) and the views of investment organisations.

86

87

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31st July 2022

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NOTES TO THE FINANCIAL STATEMENTS
Year ended 31st July 2022
FAIR VALUE AS AT 31ST JULY
2022 2021 2020
THE ASSETS IN THE SCHEME WERE:
£M £M £M
Equities 53.9 54.8 41.2
Corporate bonds 7.9 8.1 7.3
Property 2.0 7.5 9.8
GARS Fund 13.5 14.6 14.1
Other 31.2 36.8 36.1
Total 108.5 121.8 108.5
The tables below include the disclosures for the Swansea University Pension Scheme.
YEAR ENDED YEAR ENDED
31ST JULY 2022 31ST JULY 2021
£000 £000
ANALYSIS OF THE AMOUNT SHOWN IN THE BALANCE SHEET FOR SUPS
Scheme assets 108,500 121,800
Scheme liabilities (145,100) (183,000)
DEFICIT IN THE SCHEME – NET PENSION LIABILITY RECORDED
WITHIN OTHER COMPREHENSIVE INCOME (36,600) (61,200)
Current service cost (2,200) (2,500)
Past service costs – (2,500)
TOTAL OPERATING CHARGE (2,200) (5,000)
ANALYSIS OF THE AMOUNT CHARGED TO INTEREST PAYABLE/CREDITED
TO OTHER FINANCE INCOME FOR SUPS
Interest cost (3,100) (2,500)
Expected return on assets 2,100 1,500
NET CHARGE TO OTHER FINANCE INCOME (1,000) (1,000)
ANALYSIS OF OTHER COMPREHENSIVE INCOME FOR SUPS
(Loss) / Gain on assets (14,400) 14,100
Gain / (Loss) on liabilities 38,100 (1,500)
TOTAL OTHER COMPREHENSIVE INCOME BEFORE DEDUCTION FOR TAX 23,700 12,600
YEAR TO
31ST JULY 2022 31ST JULY 2021 31ST JULY 2020 31ST JULY 2019
HISTORY OF EXPERIENCE GAINS AND LOSSES – SUPS
DIFFERENCE BETWEEN ACTUAL AND EXPECTED RETURN ON SCHEME ASSETS:
Amount (£000) (14,400) 14,100 1,000 6,200
% of assets at end of year (13.3%) 11.6% 0.9% 5.8%
EXPERIENCE (GAINS) / LOSSES ON SCHEME LIABILITIES:
Amount (£000) (38,100) 1,500 11,800 19,200
% of liabilities at end of year (26.3%) 0.8% 6.5% 11.5%
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31ST JULY 2022 31ST JULY 2021
£000 £000
HISTORY OF EXPERIENCE GAINS AND LOSSES – SUPS
CUMULATIVE ACTUARIAL LOSS RECOGNISED AS OTHER COMPREHENSIVE INCOME FOR SUPS
Cumulative actuarial losses recognised at the start of the year (37,400) (50,000)
Cumulative actuarial losses recognised at the end of the year (13,700) (37,400)
ANALYSIS OF MOVEMENT IN (DEFICIT) FOR SUPS
DEFICIT AT BEGINNING OF YEAR (61,200) (71,700)
Contributions or benefits paid by the University 4,500 4,400
Current service cost (2,200) (2,500)
Past service cost – (2,500)
Admin costs (400) (500)
Other finance charge (1,000) (1,000)
Loss / Gain recognised in other comprehensive income 23,700 12,600
DEFICIT AT END OF YEAR (36,600) (61,200)
ANALYSIS OF MOVEMENT IN THE PRESENT VALUE OF SUPS
PRESENT VALUE OF SUPS AT THE START OF THE YEAR 183,000 180,200
Current service cost (net of member contributions) 2,200 2,500
Past service cost – 2,500
Interest cost 3,100 2,500
Actuarial (gain) / loss (38,100) 1,500
Actual benefit payments (5,100) (6,200)
PRESENT VALUE OF SUPS LIABILITIES AT THE END OF THE YEAR 145,100 183,000
ANALYSIS OF MOVEMENT IN THE FAIR VALUE OF SCHEME ASSETS
FAIR VALUE OF ASSETS AT THE START OF THE YEAR 121,800 108,500
Expected return on assets 2,100 1,500
Actuarial gain on assets (14,400) 14,100
Actual contributions paid by University 4,500 4,400
Non investment expenses (400) (500)
Actual benefit payments (5,100) (6,200)
FAIR VALUE OF SCHEME ASSETS AT THE END OF THE YEAR 108,500 121,800
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SUPS assets do not include any of the University’s own financial instruments, or any property occupied by the University.

ACTUAL RETURN ON SCHEME ASSETS
Expected return on scheme assets 2,100 1,500
Asset (loss) /gain (14,400) 14,100

Estimated contributions for SUPS in the Financial Year 2022–23 is £1,200k (2021-22 £1,300k) assuming the contribution rate of 23.2% plus £2,369k PA fixed contribution (2021-22 21.7% plus £2,300k PA).

Recent changes in global and UK economic pressures and tightening of monetary policy have had a significant impact on asset markets and corporate bonds yields, which are key to the FRS 102 assessment of the net pension asset or liability. In particular, AA corporate bond yields, used to set the FRS 102 discount rate, have increased significantly since 31st July 2022, with corresponding falls in asset values. The markets have been exceptionally volatile and therefore while both gross DBOs and assets will have fallen, it is difficult to estimate the impact of these changes on the net balance sheet position.

88

89

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS Year ended 31st July 2022

Year ended 31st July 2022

31. RELATED PARTY TRANSACTIONS

Due to the nature of the Institution’s operations and the composition of its Council (being drawn from local public and private sector organisations) and Senior Leadership Team, it is inevitable that transactions will take place with organisations in which a member of Council or the Senior Leadership Team may have an interest. All such transactions are conducted at arm’s length and in accordance with the Institution’s financial regulations and normal procurement procedures. The Institution has taken advantage of the exemption within FRS 102 Section 33 ‘Related Party Disclosures’ and has not disclosed transactions with other wholly owned group entities.

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INCOME FROM EXPENDITURE TO BALANCE DUE FROM
RELATED PARTY RELATED PARTY RELATED PARTY
Wales National Pool Swansea 538 582 142
Swan Global Education LLP 573 5,024 316
1,111 5,606 458
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Throughout the year and at the Balance Sheet date the University held 50% investments in the associated companies Wales National Pool Swansea (2021: 50%) and Swan Global Education LLP (2021: 50%). The relationship with both companies are accounted for using the equity method such that 50% of the companies gross assets and liabilities are incorporated into the consolidated balance sheet of the University and 50% the net income is reported in the University’s consolidated income and expenditure account.

The Students’ Union is not controlled or owned by the University and is a separate legal entity, however the University provides grant funding to the Union to support the students. During the year the University provided the Students’ Union with the main block grant of £927k and a further £195k which included contributions towards nurses funding, nursery costs, and funding bids. The University also provided the Students’ Union with £212k from a HEFCW grant for wellbeing and health.

COUNCIL MEMBERS

The Institution’s Council members are the trustees for charitable law purposes. Due to the nature of the Institution’s operations and the compositions of the Council, many of whom are being drawn from local public and private sector organisations, it is inevitable that transactions will take place with organisations in which a member of the Council may have an interest. All transactions involving organisations in which a member of Council may have an interest, including those below, are conducted at arms length and in accordance with the Institution’s Financial Regulations and usual procurement procedures. The University has a robust Declarations of Outside Interests Policy and each member of Council is required to declare all interests openly, which are reviewed in line with the Institutions procedures. Third party transactions identified during the 2021/22 financial year in which trustees have declared an interest are: JISC £2.4m; Scarlets Regional Rugby Club, £30,800 for advertising (course, recruitment and other) and the trustee is one of the Directors of the Board; Natural Resources Wales, £2,564 for Laboratory Chemicals, waste disposal and treatment, and recycling, and the trustee is a former employee; Golwg cyf, £6,306 for advertising (course, recruitment and other) and the trustee is one of the Directors of the Board; Swansea University Students’ Union, £231,355 for various transactions, with the two student members of Council being trustees of SUSU.

No Council Member has received any remuneration or waived payments during the year (2021 – £0).

During the year £4.5k of expenses were paid to Members of Council, and £1k of payments were made on Council members behalf (mainly travel costs) (2021: £0k).

32. US DEPARTMENT OF EDUCATION FINANCIAL RESPONSIBILITY SUPPLEMENTAL SCHEDULE

In satisfaction of its obligations to facilitate students’ access to US federal financial aid, the University is required, by the US Department of Education, to present the following Supplemental Schedule in a prescribed format.

The schedules set out how each amount disclosed has been extracted from the financial statements. As set out above, the accounting policies used in determining the amounts disclosed are not intended to and do not comply with the requirements of accounting principles generally accepted in the United States of America.

Primary Reserve Ratio

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CONSOLIDATED CONSOLIDATED
Page Line item / disclosure 2022 2021
£000 £000
65. Unrestricted reserve and revaluation reserve Net assets no restriction 156,558 212,293
65. Endowment reserve Net assets with donor restriction 7,359 7,505
81. Endowment total Term endowments (7,307) (7,505)
74. Fixed assets less service concession arrangements PPE (357,432) (340,637)
74. Service concession arrangements Lease – right of use, net (108,202) (111,841)
Service concession arrangements Remove pre-implementation lease
74. at pre-implementation right-of-use asset 108,202 111,841
80. Total pension provision Pension liability 170,864 104,169
79. Total unsecured loans Line of credit for long term purposes 107,958 113,550
78/79. Service concession arrangements Lease right-of-use asset liability 119,032 122,015
Service concession arrangements Remove pre-implementation lease
at pre-implementation right-of-use liability (119,032) (122,015)
78,000 89,375
Total expenditure (excluding USS
64. change in contributions) Total operating expenses 354,592 337,170
64. Other gains (losses) Other gains (losses) 1,747 (236)
355,839 336,934
Equity Ratio
CONSOLIDATED CONSOLIDATED
Page Line item / disclosure 2022 2021
65. Unrestricted reserve and revaluation reserve Net assets without donor restriction 156,558 212,293
65. Endowment reserve Net assets with donor restrictions 7,359 7,505
163,917 219,798
66. Non-current assets plus current assets Total Assets 712,019 663,668
Less
74. Service concession arrangement asset Pre-implementation lease asset (108,202) (111,841)
603,817 551,827
Net Income Ratio
CONSOLIDATED CONSOLIDATED
Page Line item / disclosure 2022 2021
£000 £000
64. Total comprehensive income Change in net assets without donor restrictions (55,735) 40,501
64. Total income Total operating revenue – unrestricted 370,003 360,753
Less
Investment return appropriated for
64. Investment income spending (812) (87)
64. Gain / (loss) on disposal of tangible assets Sale of fixed assets – 68
369,191 360,734
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90

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NOTES TO THE FINANCIAL STATEMENTS
Year ended 31st July 2022
33. PRIOR YEAR ADJUSTMENT
During the preparation of the 2021/22 accounts it was identified that where both research debtors and creditors existed for the same funder across
different projects, these debtors and creditors were incorrectly being shown as a net figure. A prior period adjustment has been posted to reclassify
the gross debtors and creditors. The adjustment only impacts the debtors and creditors within the financial statements, including on the balance sheet
and within the cash flow movement.
This adjustment does not affect the overall net figures in the accounts, with the impact noted in the tables below.
Year ended 31st July 2021 Year ended 31st July 2021
Consolidated University
As previously As previously
reported Adjustments As restated reported Adjustments As restated
TRADE AND OTHER RECEIVABLES £000 £000 £000 £000 £000 £000
Accrued income – research grants 14,303 17089 31,392 14,303 17,089 31,392
14,303 17,089 31,392 14,303 17,089 31,392
ACCRUALS AND DEFERRED INCOME £000 £000 £000 £000 £000 £000
Research grants received in advance (22,543) (17,089) (39,632) (22,543) (17,089) (39,632)
(22,543) (17,089) (39,632) (22,543) (17,089) (39,632)
Total (8,240) – (8,240) (8,240) – (8,240)
BALANCE SHEET IMPACT
Trade and other receivables 45,680 17,089 62,769 45,309 17,089 62,398
Creditors falling due within one year (97,400) (17,089) (114,489) (96,665) (17,089) (113,754)
CASH FLOW IMPACT
(Increase) in debtors (6,565) (17,089) (23,654)
Increase in creditors 15,477 17,089 32,566
92
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