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← Swansea University

2024-07-31-accounts

ANNUAL REVIEW-_. Swansea Prifysgol Abertawe 2024

CONTENTS

01

CHAIR’S INTRODUCTION

As the new Pro-Chancellor and Chair of the University Council, it is an honour to have the opportunity to introduce the University’s Annual Review. On behalf of the Council, I would like to begin by thanking Bleddyn Phillips for his outstanding leadership of Council over the past four years. During this time good governance both at Council and across all elements of our University has been embraced, improved, and enhanced whilst also embedding a culture of openness and transparency. These improvements were recognised recently in our independent governance review which found that significant assurance could be placed in the University’s governance arrangements. Whilst welcoming this outcome, Council, as part of its commitment to continuous improvement, has agreed further enhancements to its governance arrangements particularly in relation to academic governance, operational effectiveness and the induction and development of Council members. Having also implemented the majority of the recommendations identified by the CAMM Review we have recently undertaken a review of the University Court and will present this to Court in February 2025.

As the governing body of the University, part of Council’s role is to ensure appropriate scrutiny and governance of the University’s strategy and finances to ensure we maintain our standing as a University that prides itself on its outstanding research and the highest quality teaching. Council recognises this has been a difficult year in relation to the financial challenges facing the sector and the University. While good progress has and is being made, there is still a lot to do. On behalf of the Council, I would like to take this opportunity to thank the Vice-Chancellor, the Senior Leadership Team, and all our University staff for their continued commitment and hard work which has enabled the University to respond to these challenges, which undoubtably places the University in a strong position to address the tougher financial climate which lies ahead.

Delivering an excellent student experience remains central to the University’s strategic goals and critical to this is the close relationship between the University and the Students’ Union to ensure that student voices are genuinely heard and are listened to at Swansea. We welcome the work undertaken by the Students’ Union, as part of its governance review, to ensure that the student voice is heard and students are represented across the University boards, committees and working groups. We look forward to continuing to support the Students’ Union as they continue to implement their new governance arrangements alongside ensuring that our students have the best possible support.

On a personal level, it will be an honour to chair Council and play my part in guiding the University’s progress over the next few years. Key highlights of my first year have included attending the University degree ceremonies where I was privileged to celebrate the achievements of our graduates and to present Excellence in Learning and Teaching Awards to members of our academic staff in recognition of their outstanding contribution to our students’ academic work.

As we all continue to work together, I have every confidence that we will succeed and continue to thrive thanks to the dedication and talent of our staff, students and all our stakeholders acting always in the best interests of our University.

Finally, I would like to take this opportunity to thank all members of the University Council and its committees, who voluntarily give their time and expertise to support the University, for their continued commitment and contribution to the University.

Mr Goi Ashmore, Chair of Council 25 November 2024

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VICE–CHANCELLOR’S INTRODUCTION

As the higher education sector in the UK continues to face significant pressures, I remain incredibly proud of the resilience and dedication of our entire university community. This bedrock has enabled us to retain focus on our University’s core purpose; our Learning and Teaching, our Student Experience, our Research, our Enterprise and our Civic Mission.

This year, I am especially grateful to our staff for their continued efforts to maintain the highest standards of academic quality. Throughout our history, we have sought to provide the high-quality teaching, informed by our world-leading research, which ensures that every Swansea student is well-prepared to succeed in an increasingly competitive world. Our efforts have been reflected this year in improved scores in seven of eight themes in the National Student Survey 2024, alongside an overall satisfaction rate of 81%. We were also delighted to be ranked 29th in the Guardian University Guide 2025 and to be named The Times and Sunday Times University of the Year 2025. At the heart of our University’s mission is a commitment to providing transformative learning experiences, both in terms of the quality of our teaching and the support and opportunities afforded our students during their time with us. This year, we were delighted to open the doors of our new Simulation and Immersive Learning Centre (SUSIM), which hosts Europe’s largest immersive wall technology installation and provides students, particularly in healthcare, the opportunity to practise skills in simulated real-life scenarios. We also launched our new Employability and Skills Strategy, which integrates key employability attributes directly within our curricula. Through work-based learning and employer engagement, we are working to increase opportunities for our students to gain real-world experience during their studies, with the aim of supporting every Swansea graduate to make a smooth transition into the workplace.

Mindful of the varied and complex challenges which our students navigate alongside their studies, this year we have sought to provide the support, resources and guidance which are vital to them achieving academic success. In addition to our traditional health and wellbeing support, we provided a new online

self-help resource, Hapus, which supports students in managing stress, anxiety, and depression. Conscious of the continued cost of living crisis, we were also pleased to be able to expand our bursary offerings and hardship funds to ensure access for those who need it most.

As an institution, we are proud to deliver teaching excellence alongside world-class research and innovation activity, and some of our individual research success stories are showcased on page 28. Our research strength has long been rooted in effective collaboration to deliver real-world impact, both for our planet and its people. Our enduring focus on impact was encapsulated by our second consecutive Queen’s Anniversary Prize for Higher Education, which was formally awarded to the SAIL Databank in February 2024. This prestigious national honour recognises the Databank’s world-leading work in harnessing population data to inform policies that affect public health and wellbeing. It highlights the significant public benefit of our research and underscores our commitment to impactful, evidence-based innovation that make a real difference in people’s lives.

The strength of our research impact forms part of our growing international profile, as reflected in our continued ascent within the QS World Rankings. This year (2025), we climbed to 298th place, representing our highest ever position, and we are proud to have been named in the top 100 European institutions. We have also continued to expand our Swansea University offering across the world through the provision of new programmes and learning activity, including our pioneering double undergraduate degree in Maritime Law, in collaboration with Dalian Maritime University (DMU) in China, which welcomes its first student cohort in September 2024. In addition, our global footprint will soon extend further with the opening of new offices in Malaysia and in the United Arab Emirates. And this year, it has been an honour to host a number of extremely high-profile events here in the Swansea region, including a wonderful visit from Secretary Clinton and President Clinton in November 2023, and the European University Association Annual Conference, which welcomed over 250 vice-chancellors and rectors

from across Europe, in April 2024.

While our international outlook is vital, we also remain deeply rooted within the local community which we were founded to serve. Alongside our ongoing partnerships with local authorities, health boards and Further Education Colleges, this year we launched the National Network for Innovation in Sport and Health (NNISH), an ambitious partnership across academia, industry and the NHS, based in Swansea. Through this collaboration, supported in part by the Swansea Bay City Deal, we will drive innovation in healthcare, medicine and sport technology, for the benefit both of our region and the wider population.

In reflecting on the achievements of the past year it is evident that there is so much of which our University community can be proud. It is also important, however, to acknowledge the financial challenges within higher education, and that the impact of these pressures has been felt, and will continue to be felt, both within our own institution and across the sector more widely. In common with our peers, we have implemented a range of measures this year to address these challenges, under our Financial Sustainability Programme (see page 47), which we know will also impact future years.

I am therefore immensely proud that throughout this period, we have retained our sense of purpose, our mission and our institutional identity – our ‘Swanseaness’ – and have no doubt that this is an excellent foundation upon which we will continue to build in the years ahead.

Professor Paul Boyle, Vice–Chancellor

25 November 2024

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S T U D E N T N U M B E RS
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FACTS AND FIGURES

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4 718
,
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17144
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UNDERGRADUATES
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POSTGRADUATES
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18 576
, 3,282
HOME STUDENTS OVERSEAS STUDENTS
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S T U D E N T O U TCO M ES
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OF STUDENTS
81% ARE SATISFIED
National Student Survev
(NSS 2024)
ACHIEVED A FIRST
82.5% OR 2:1 DEGREE (22-23)
(Times Good University Guide 2025)
HAD A POSITIVE
81% GRADUATE OUTCOME
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(NSS 2024)

(Times Good University Guide 2025)

(Times Good University Guide 2025)

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S US TA I N A B I L I T Y FI N A N C E
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R A N K I N GS Impact Rankings
65TH SUSTAINABILITY RANKINGS
(THE Impact Rankings 2024) (QS Sustainability Rankings 2025) £347m TOTAL INCOME
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a

Our Strategy

OUR STRATEGIC VISION

Our University’s Strategic Vision and Purpose document (published in 2020) states that we are, and will remain, a principled, purposeful and resilient institution 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 also deeply committed to our region and

are proud to be a university for Wales.

Our Strategy reflects this vision. Our community of colleagues, students, partners and stakeholders is characterised by the distinct values, culture and behaviours that lie at our core.

of our 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 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.

The commitment of our community underpins the five key strategic pillars

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OUR VALUES,
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We are proud to belong to the City of Swansea and the wider Swansea Our Civic Bay City Region, and we celebrate that heritage. With campuses in three local authority areas, we recognise that our University is the region’s Mission university, and that we have a responsibility to work with and for our community and Wales. Our students are the lifeblood of our University. We take their needs and expectations into account in our decision-making and take pride in our consistently strong reputation for the quality of our student Our Student experience, the strength of our student support services and our OUR VALUES commitment to student mental health and wellbeing. In partnership Experience with our Students’ Union, we work to ensure that every student who makes Swansea their home experiences the best of us. Our people are our most important asset and they define our University. We understand that our daily behaviours matter and we therefore believe in each other, support one another, celebrate each other’s achievements, and hold each other to account. The sharing of knowledge to nurture independent, critical thinking We respect our colleagues, treating others as we expect to be treated, is fundamental to our purpose. It enables our students to be resilient and we work as one university, recognising that every colleague and each student contributes to our success. Our Learning in the face of global challenges and to adapt to the changing world We believe in the value of flexibility, collegiality and creating time to think in and Teaching of work. We celebrate our Welsh heritage and are proud to be part of a bilingual nation. We also work to maintain our status as a community that balances research and teaching excellence. pursuit of intellectual stimulation, originality, and impact. We work together in a professional and caring environment that enables us to exceed expectations for the benefit of all. We are committed to providing an environment where our colleagues can fulfil their potential and we strive to give underrepresented groups a platform to voice their experiences with the community. Our research changes lives, drives innovation and regional growth, and is Finally, we recognise that we are a cultural and economic anchor institution aligned to the UN Sustainable Development Goals. It impacts our culture within our community, with a distinct role to play in driving regional Our and society as well as our health and wellbeing, our economy and our development and promoting health and wellbeing, and we are proud planet. We drive policy change nationally and internationally. We are to be a beacon for Welsh heritage, language, and culture. Research 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. i ee We are an exceptionally collaborative and entrepreneurial university. We were founded by industry, for industry, and we remain true to the Our ambitions of our founders in that we work with industrial, commercial and public sector partners for the benefit of our region and nation. We Enterprise value our partnerships with anchor companies and SMEs in Wales and with the many organisations we collaborate with internationally. 12 13 ~~a~~

OUR STAFF COMMUNITY

Our Strategic Vision and Purpose document sets out a range of priorities relating to our People, Values, Culture and Behaviour, including:

Our staff are our greatest asset, defining our identity and our success. We prioritise fostering a supportive and celebratory environment, in which respect and mutual accountability are central and we work collaboratively as one institution, recognising the unique contributions of every colleague and student.

Over the past year, our People and University Culture Committee which is co-chaired by our Vice-Chancellor and our Chief Operating Officer and Registrar, has worked to develop an overarching People and University Culture Strategy to help us realise these priorities.

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Equality, Diversity, Inclusion and Belonging

This year, many of our initiatives focused on empowering all members of our community, and particularly those from underrepresented groups, by providing platforms for staff to voice their experiences and by encouraging open dialogue on all protected characteristics.

We strengthened our commitment to this strategic priority through the appointment, in March 2024, of our first Deputy-Pro-Vice-Chancellor for Equality, Diversity, Inclusion and Belonging, Professor Camilla Knight.

We are also particularly proud of a number of achievements, milestones and activities within this important space this year:

Confronting discrimination

Across the academic year, we continued to engage in the Medr-funded Race Access and Success collaborative enhancement programme to progress race equality within Higher Education in Wales. We established a Race Equality Charter Self-Assessment Team and remain committed to making an application for the Race Equality Charter Bronze award in 2025. We also renewed our Victim Support Hate Crime Charter and were awarded a Hate Crime Charter Trustmark.

As in previous years, we were proud to celebrate a range of events and national campaigns across the academic year, including Holocaust Memorial Day, LGBT+ History Month, International Women’s Day, and Black History Month. We also introduced successful sessions for staff that included raising awareness of Islamophobia and Antisemitism.

Supporting our community and developing our leaders

This year, we have been conscious of the need to support our community to engage with our Financial Sustainability Programme and have therefore focused our efforts on providing wellbeing support and equipping our leaders to navigate this critical period.

We continued to promote and support the physical, mental and social wellbeing of our staff through a range of initiatives, including our Occupational Health service, our counselling service and our digital mental health platform, Togetherall. In addition to mental health support, we also endeavoured to support our colleagues’ physical wellbeing through a holistic approach, by offering services such as health assessments, free osteopathy sessions and eyesight referrals.

Effective leadership at all levels supports our ability to deliver as an institution, and we have therefore committed to investing in leadership development across the organisation.

This year, our leadership development programmes have offered a blend of individual coaching, action learning and in-person group sessions, focusing on navigating the ongoing redesign of our Professional Services and enhancing team wellbeing. One of our most impactful initiatives this year has been our new ‘Leading Through Uncertainty’ course; a half-day session designed for all leaders and managers to support them in guiding their teams through ambiguity.

Reward and recognition

In 2023/24, we reaffirmed our commitment to paying the Real Living Wage, ensuring that the remuneration for all of our colleagues, and particularly those on the lowest salaries, reflects the true cost of living rather than merely meeting the legal minimum level.

While we took the difficult decision not to run an Academic Promotion round for 2023/24, we have utilised the pause this year to develop a new Academic Career Pathway framework. In line with our commitment to the principles enshrined within the Declaration on Research Assessment (DORA), and our membership of the Coalition for Advancing Research Assessment, our new ACP framework aims to use metrics responsibly, and to better reflect the diverse ways in which our academic colleagues add value throughout different stages of their careers.

The new pathways, which have been shaped by engagement with our academic community, will be embedded into our key decision-making processes during the 2024/25 academic year.

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OUR LEARNING AND TEACHING

Our students and their diverse experiences, needs and ambitions, shape the environment that we seek to foster at Swansea University. We are committed to providing outstanding learning and teaching and we are proud to take students’ needs and expectations into account in our decision-making, by working in partnership with our students and our Students’ Union.

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Over the past academic year, we have embarked upon several initiatives to enhance our provision and support student retention, progression and achievement across our University.

Student feedback and the National Student Survey (NSS)

We are committed to continually improving the experience which we provide to our student community, and therefore value highly their feedback.

As a direct result of our 2023 National Student Survey outcomes, we transformed how we respond to challenging student feedback to ensure that we continue to improve the student experience. In 2023/24, we adopted a targeted, action-planning approach across our Faculties and studentfacing Professional Services areas, implementing a programme of targeted interventions across a number of disciplines and subject areas with declining or below-sector-average outcomes.

In August of this year, we received the results from the most recent (2024) National Student Survey. Initial data from the July 2024 NSS suggests that these targeted interventions have been effective in improving scores across a number of programmes and subjects in scope. We intend to continue this targeted approach in the upcoming year to sustain and build on this progress.

At an institutional level, we were proud to see improvements in in our scores across seven of the eight NSS 2024 themes, with our Overall Satisfaction score rising to 81% (up from 76% in 2023) and our Academic Support score increasing to 86% (up from 81%). These improvements reflect positive developments across various subject areas, with 36 of our 58 subjects showing score increases year on year.

While an important source of information, the NSS is just one route through which we can seek student feedback. From this year, our Student Advisory Forum will facilitate stronger engagement between students and staff. Operating through our relaunched Unitu platform, a safe online space for students to share their feedback in real time, this initiative will enable our University Education Committee to not only address student experience

feedback but also to report back to our current students on how we are seeking to do so.

Using learning analytics

While we have historically maintained strong student retention rates, in the post-Covid era we have sadly observed a notable increase in student attrition, reflecting a broader sectoral trend. In response, and supported by the Medr Learning Analytics initiative, we have conducted an extensive data-driven analysis to understand the factors contributing to higher rates of student in-year withdrawals.

As a result of this analysis, we have implemented a more holistic engagement monitoring model using the enhanced MyEngagement dashboard. This tool captures both pastoral and academic interactions, providing staff with a comprehensive view of a student’s engagement with our University and facilitating timely and tailored support interventions that meet a broad spectrum of student challenges. The system also enables targeted interventions for specific groups, ensuring a proactive and personalised support service.

As we continue to integrate Learner Analytics through the extensive use of MyEngagement and student support engagement processes, early data for 2023/24 indicates a promising reversal of the previous trend, with student attrition rates returning to levels more consistent with the pre-Covid environment. By identifying student needs earlier and creating effective interventions and support matrices, we aim to improve students’ engagement with their learning, their wellbeing and, ultimately, their ability to progress and succeed.

Academic misconduct

We remain committed to providing comprehensive support for each and every one of our students, ensuring an inclusive and nurturing environment that fosters academic success and personal wellbeing. However, another recent trend across the Higher Education sector is a rise in the incidence of academic misconduct. To try to understand its possible causes, in 2023/24 we undertook a thorough review of our own processes, procedures, and responsibilities as they relate to academic integrity.

Our focus has been on prevention and we have therefore sought to equip staff with the necessary resources to help students understand and maintain high standards of scholarly integrity. As part of our staff development efforts, we have created a resource pack and guide designed for academic staff and assessment teams. This comprehensive guide addresses the design, implementation and administration of online assessments, ensuring that academic integrity remains central. It also considers the evolving landscape of AI technologies, reflecting our institutional desire to provide a supportive learner experience while maintaining purposeful and effective assessment practices.

We also recognise that an academic misconduct allegation and investigation can affect a student’s wellbeing and so we have streamlined the process for addressing cases of misconduct in an effort to reduce student wait times for case outcomes.

Finally, in 2023/24, the Centre for Academic Success launched a new initiative through which students acted as Academic Integrity Ambassadors (AIAs). The AIAs are an enthusiastic group of student-volunteers who aim to promote a culture of Academic Integrity throughout our University. To help bridge the gap between staff and students when communicating information about Academic Integrity, they attend and create events to facilitate discussions surrounding the topic in a way that resonates with their peers.

Supporting the learners of the future

This year, we have also launched a series of significant transformational programmes, including the development of a new University Education Strategy, a whole-University review of our curriculum and a review of how we timetable our teaching. We expect these initiatives to begin to realise positive benefits for both our students and our staff over the coming years.

We are also actively engaged in modelling new teaching programmes, new entry points and new delivery formats, including reviewing online learning, to ensure that we continue to meet the needs of the learners of tomorrow.

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OUR STUDENT EXPERIENCE

We are committed not only to providing our students with high-quality learning and teaching, but also to offering them the support, services and opportunities which enhance and enrich their time with us and beyond. We take pride in our commitment to student mental health and wellbeing and the strength of our student support services.

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Employability and skills

In 2023/24, we reaffirmed our commitment to enhancing the employability and overall success of our graduates. Our newly launched Employability and Skills Strategy aims to integrate key employability and skills attributes within our curriculum, ensuring that our graduates are equipped with the competencies demanded by the employment market of today. We are dedicated to increasing industry exposure and engagement through work-based learning and active employer participation in our curriculum.

Our graduate outcomes data (both our graduate employment rate and graduates entering highly-skilled employment) remains steady relative to the sector as a whole, which reflects the quality of education and rigorous training provided by our dedicated Faculty members. It also highlights the strategic importance of our ongoing collaborations with leading employers, which help us to ensure that our students are well-prepared to meet contemporary job market demands.

Our focus on experiential learning, including internships, placements, and industry projects, has proven instrumental in enhancing our graduates’ professional readiness. Employer feedback has been overwhelmingly positive, particularly regarding our graduates’ technical proficiency, problem-solving abilities and adaptability.

Wellbeing and mental health support

We are proud to provide a robust and inclusive Student Support Service that offered some 13,724 appointments, with a completion rate of 88%, during 2023/24. This year, 51% of students requesting support were assessed as in need of a priority appointment and received a first appointment within six working days.

This provision is bolstered by 24/7 support through the Togetherall digital mental health platform, through which we have recorded 3,243 registrations to date. 59% of all engagement with this platform takes place outside of normal working hours, demonstrating the value of having multiple support formats available at the point of need. Additional support is also available from digital self-help services, our Welfare team, and the Students’ Union Advice and Support Centre. We also seek to offer innovative initiatives to further enhance students’ mental health support, which this year have included wellbeing workshops and pet therapy sessions.

Finally, Hapus, our online self-help resource developed in collaboration with Togetherall, equips students with practical tools to manage stress, anxiety, and depression. This course, which was also extended to parents, was showcased as an example of best practice at the National Association of Managers of Student Services in Higher Education (AMOSSHE) conference in June 2024.

Disability support

Our dedicated staff work closely with the 16% of our student body who identify as disabled or as living with a mental health condition. We are proud to support students on the entirety of their academic journey, from enquiry to enrolment and beyond, ensuring a smooth transition into university life.

We offer a range of adapted accommodation options, and our transcription centre, inclusive library services and adaptive equipment enable all students to thrive academically and personally. In the 2023/24 academic year, 3,239 active adjustment proformas were implemented, with 53% of these supporting new students which reflects a growing demand. Looking ahead, we will continue to enhance awareness of our obligations under the Equality Act 2010 across our broader University community.

Financial support

We are proud to continue to offer a range of support which ensures that our students can focus on their studies, realise their full potential and make the most of their time with us. Our Student Hardship Fund and Money Advice services provide essential support to students facing financial challenges for a wide range of individual reasons.

During the 2023/24 academic year, we received 1,745 applications to access hardship funds and bursaries, representing a 10% increase on the previous year. The average award amount rose by 6% from 2022/23, reflecting a 35% increase in average award amounts since 2020. This year, need relating to general living expenses accounted for nearly half of all hardship funds awarded to students. These funds are available to both home and overseas students, and we have worked with our Students’ Union and our Equality, Diversity and Inclusion leads to ensure consistency in award-granting and parity of support where possible.

Alongside our existing bursaries for care-experienced, estranged students and those with caring responsibilities, this year we have expanded our bursary offerings to include Post-Graduate Support and Bereavement Support awards in response to emerging needs.

Redesigning our services

As part of our redesign of Professional Services teams across our University, in 2023/24 we began to review and reshape some of our student-facing functional services. Within our Student Life team, this initiative has sought to place the student voice and experience at the heart of our approach, with all improvement, from our policies and processes to our infrastructure, designed with student satisfaction in mind.

We hope to implement these changes, from introducing new platforms to ensuring the effective utilisation of data and information to tailor our services appropriately, over the coming academic years.

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The strength of our research pedigree was underscored this year by our second Queen’s Anniversary Prize for Higher Education win in consecutive rounds (2021 and 2023), for the work of our SAIL Databank.

OUR RESEARCH AND ENTERPRISE eee

Our curiosity-driven and sustainability-focused research and innovation activity is helping to address the net zero challenge, tackle climate change, build a connected and inclusive society, enhance health and wellbeing, and embrace the richness of place and culture.

Research funding

This year has marked a significant pivot point for research and enterprise activity at Swansea University and, indeed, across the Higher Education sector in the UK, due to the December 2023 deadline for European Structural and Investment Fund (ESIF) expenditure.

Investment from this and previous ESIF programme periods in Wales has left our University well-positioned for future Research and Development growth, with key capital assets including our Computational Foundry, IMPACT Building and two Institute of Life Science (ILS) buildings. These represent not only cutting-edge research infrastructure but also facilities which underpin our connections with funders and research users in industry, public and third sector organisations.

While the cessation of access to this funding has presented significant challenges, this year we have continued to build upon our existing research strengths by utilising externally funded research income and Medr-sourced Quality Related (QR) funding. We have sought to take advantage of emerging opportunities and have continued to broaden our base of research funders to build resilience and diminish reliance on any single source of funding.

We remain extremely active across the breadth of our academic community in respect of submitting competitive bids for external research funding, with examples of particular funding success as follows:

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European collaboration

Professor Matt Jones of the Computational Foundry (Faculty of Science and Our academic community has a long Engineering) was awarded a prestigious personal five-year Fellowship by and successful history of collaboration the Engineering and Physical Sciences Research Council (EPSRC) to with partners across Europe; a tradition pursue an adventurous and ambitious AI research agenda. Professor which we have sought to continue in the wake of the UK’s departure from Jones’ Fellowship seeks to design inclusive and empowering the European Union. interactive AI systems for everyone, employing an approach called Within the 2023/24 academic EVE: Everyone Virtuoso Everyday, which focuses on developing AI year, the UK and EU reached a longtechnology for meaningful and skilful interactions, looking to awaited agreement on the UK’s formal provide tools that can be used in people’s daily lives. association with Horizon Europe, the EU’s flagship research and innovation programme. After years of uncertainty, since the agreement came into effect in early 2024 we have already observed an increase in interest in EU funding from researchers across our academic community. As just one example of the major opportunities afforded our University Dr Hayley Young of the School of Psychology (Faculty of Medicine, by Horizon Europe, Professor Shareen Doak and colleagues in the Medical Health and Life Sciences) is leading a pioneering study on the School have secured €480,000 as part impact of omega-3 supplements on children’s behaviour, mood, of a multi-site grant to help implement and mental wellbeing. With most children in the UK consuming the next generation of hazard and risk less than half the recommended intake of omega-3 fats, assessment of chemicals and novel materials, minimising the need for animal Dr Young has secured an £81,000 grant to explore whether testing while protecting human health. supplementation can help. The study, funded by The Waterloo Foundation, is in collaboration with Food and Behaviour (FAB) Research culture t> Research, a UK-based charity dedicated to advancing scientific This year, Professor Ian Mabbett research into the links between nutrition and human behaviour. succeeded Professor Biagio Lucini as our University’s Deputy Pro-Vice-Chancellor for Research Culture. Through this appointment we aim to champion a positive culture of research integrity, open collaboration and scholarship, leadership on Swansea Open Scholarship and the creation of a space in which our People, Culture and Environment can all continually Dr Alexander Langlands (Faculty of Humanities and Social Sciences) is develop alongside each other. We will also continue to embed our commitments the award recipient of an Arts and Humanities Research Council (AHRC) to responsible research assessment funded project titled: Heritage at Risk: Creative Communities for and metrics across our University, and 7 Sustainable Powerful Places in De-industrialised south Wales. advocate for research practices that Swansea is one of just five UK universities to be awarded a Community leverage Open Scholarship. Innovation Practitioner (CIP) Pilot by the AHRC’s Creative Communities Finally, as a founding fellow of the programme. The project aims to explore ways to regenerate heritage Morgan Advance Studies Institute, Wales’ first Advanced Studies Fe sites in our region that will benefit local communities both now and in Institute focused on transformative the future. Dr Langlands will use the award to build on the work of our interdisciplinary and transdisciplinary Centre for Heritage and Research Training (CHART), which champions research, we are delighted that research, training and engagement activities with students, scholars Professor Mabbett will become its new Director this summer. and a wide variety of public and voluntary sector organisations. 28

Research leadership

Student enterprise

In 2024, four of our researchers We are proud of the breadth and were selected for the prestigious success of our efforts to support student Welsh Crucible programme, which enterprise and entrepreneurship this year. fosters leadership and professional We foster an entrepreneurial spirit in development among future research our students through targeted initiatives leaders in Wales. Dr Naeem Anwar, such as our enterprise hubs and various Dr Mark Kingston, Dr Julie Peconi, mentoring schemes, which provide and Dr Owen Pickrell were selected budding entrepreneurs with the resources among 30 outstanding researchers and guidance necessary to succeed. based in Wales to engage in Some particular highlights from this immersive residential workshops, year include: known as skills labs. These workshops • The Big Pitch Competition, held for provide a platform for interdisciplinary the second time in 2023/24, which collaboration, enhance research impact provided a platform for student and support the development of international research careers. entrepreneurs to advance their

Similarly, in 2023/24 four of our academics were among the new entrants to the Learned Society of Wales Fellowship, joining over 680 distinguished Fellows representing excellence across various disciplines and fields. The new Fellows from Swansea are:

29

OUR INTERNATIONAL UNIVERSITY

Our International Strategy 2020-2025 crystalises our commitment to ensuring that Swansea University is a global university for everyone, where international students are valued members of our community, all students have an international experience, whether at home or overseas, and that Swansea University is a partner of choice for education and research collaboration.

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In 2023/24, we were delighted to extend our global reach and impact with considerable success across each of our three strategic pillars:

Global graduates

Our work in nurturing global graduates is focused on four areas:

  1. providing opportunities for study or work abroad

  2. strengthening pipelines for international recruitment

  3. creating culturally diverse campuses where students thrive; and

  4. providing employability opportunities for international graduates.

We believe that providing international experiences that grow the confidence and resilience of our students enables them to thrive in the global workplace and empowers them to take advantage of opportunities worldwide. In 2023/24, our Go Global initiative supported 514 Swansea University students to undertake an overseas mobility opportunity, including for work experience, field trips, medical electives and study exchanges supported by Taith and Turing funding.

As a result of proactive management of on-campus recruitment, our international student body grew by 18% on the previous year to represent 24% of our total student body in 2023/24, enriching both our campuses and local community. Navigating a challenging policy environment, we have worked alongside our pathway partner, The College Swansea University, to respond flexibly to market demand while continuing to diversify our student recruitment pipelines. As a result, we secured our combined highest ever intake of students from India this year, in addition to significant increases in new students from Brazil, Gambia,

Ghana, Iran, Japan and Nepal. A new strategy for recruitment in China has also contributed to continued recovery within this market, with new student enrolments increasing by 21% on the previous year.

The student experience is paramount to all that we do, and we have therefore invested in additional capacity and sought to enhance our academic and wellbeing support offering. Crucially, in 2023/24 we worked with Tribal i-graduate to survey our international students, with 85% of respondents reporting being satisfied or very satisfied with all aspects of their experience at Swansea University. Several areas of good practice across our community were highlighted and these valuable insights from our international student community will also help us to shape our focus for future improvement.

We know that good graduate job prospects and employability support are increasingly important factors in international study destination decisionmaking. In 2023/24, we therefore established a suite of bespoke support for our international students. UKCISA funding has enabled us to develop a tailored support package which is provided to applicants at offer stage. For our enrolled international students, we also provide access to platforms which support skills development and assist them in navigating the UK job market.

Global partnerships

In 2023/24, we continued to grow our global network of education partners with partnerships approved for franchised delivery, joint degrees and articulation. These efforts afford students the opportunity to study for a Swansea University degree at locations around the world, while our Transnational Education (TNE) activities widen access on a global scale and contribute towards environmental sustainability.

In May 2024, we received Chinese Ministry of Education (MoE) approval

for the delivery of a double degree in Maritime Law with Dalian Maritime University in China, with the first intake of 70 students due to begin in September 2024. This was one of only three joint initiatives involving a UK university which were approved by the MoE in China this year.

In June 2024, we signed an agreement with Uniciti International Education Hub (UIEH) to deliver a one-year BSc Nursing (Top-up) programme for students in Mauritius. This partnership will support the training of health professionals in an area of the world where there is demand for highly skilled nurses.

Finally, we have worked to proactively identify new partnerships with institutions that align with our values and continue to work closely with trusted sector experts to identify further opportunities.

Global profile

In the QS World University Rankings 2025, we secured our highest ever position, rising to 298th in the world. This rise places Swansea University in the top 300 for the first time and reflects advancements in the academic reputation and international research network metrics, alongside our significant progress in the sustainability metric.

Our efforts towards sustainability were also recognised in the 2024 Times Higher Education (THE) University Impact Rankings, in which we were ranked joint 65th in the world for contributions to the UN’s Sustainable Development Goals. Our joint venture partner, Navitas, also awarded us an Impact Award this year, for innovation and dedication to creating a better environmental impact.

Our profile on the global stage was further boosted by a number of highprofile visits and events, including by former US Secretary of State Hillary Rodham Clinton and her husband, former US President Bill Clinton in November 2023. In partnership with the Malaysia High Commission,

we also coordinated the Malaysia-United Kingdom Higher Education Collaboration Enrichment Programme, which included senior leaders from universities across Malaysia visiting Wales.

Finally, we continued to engage meaningfully with our ever-growing community of inspiring and impactful international alumni. Following the launch of our Nigeria alumni chapters in the previous year, we welcomed Oluwaseun Ayodeji Osowobi back to Swansea to meet with some of our current students. Ms Osowobi is the founder of the Stand to End Rape (STER) charity and has been recognised as an Obama Foundation Emerging Leader.

Despite our success in 2023/24, as we look to the future, we know that international recruitment will continue to be challenging, given recent UK visa policy changes and the perception of the UK as a study destination. We have, however, already laid the foundations to respond to these challenges in an agile manner, with much to look forward to as we look to increase market share through the opening of offices in Malaysia and the UAE, expand our global network of education partners and continue to make a positive impact in the world.

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33

OUR DIGITAL ESTATE

It is critical that we are able to respond not only to the ever-evolving digital needs of our University community, but also to the threats and opportunities that new technologies can present to us.

In 2023/24, we brought together colleagues from across our University community into a newly established Digital Services Team. This strategic consolidation aims to deliver consistent, university-wide support for all digital services, enhance our responsiveness to the evolving needs of our University community, and centralise the procurement of core software and hardware. Our newly implemented ISS service desk is also operating well, with a first-time fix rate of 76%.

Throughout the year, our architectural team has continued to explore the possible application of new technologies, particularly within the field of artificial intelligence, and to assess their potential benefits for our

operations. We have now launched several pilot projects including Seren, an AI-based chatbot offering 24/7 support for a range of issues and requests.

As part of our ongoing commitment to digital improvement, we have also upgraded our network core, with attendant improvements in reliability and capacity expected in the coming months. New Wi-Fi services will be rolled out across all campuses between September 2024 and March 2025, and work is also underway to improve our network infrastructure to achieve better cyber security and compliance.

The cyber security landscape remains characterised by its complexity, with ever evolving and increasingly more

sophisticated threat factors. This year we have strengthened our cyber risk management processes to better understand and mitigate risks related to hardware, software, digital services and vendors. These enhancements have led to substantial improvements in our cyber security incident response this year, which we have supported by holding exercises for senior staff and through the introduction of Signal; an independent communications channel for use during system outages. We have also updated and published our University’s Cyber and Information Security policies to enhance understanding of cyber security expectations across our staff and student body.

Looking ahead, we are also actively undertaking three major transformation projects which will benefit our whole University community:

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35

OUR PHYSICAL ESTATE

The completion of our Master Plan in 2023/24 represents a major milestone in the management of our estate. It provides a framework that will enable us to grow and adapt to changing demand, both in the short term and for the future ahead.

Crucially, our Master Plan builds upon our existing Estates Strategy to present a range of development and placemaking options for our estate, from our student residences to our land ownership, which are designed to align with the evolving needs of our University and the broader Higher Education landscape.

While the wider financial context has necessitated a delay to some of our planned major capital programmes this year (including the redevelopment of our iconic Fulton House building), we have made progress with important improvements across our estate this year.

Cove campus nightclub

Cove is our newest student-focused facility on campus. Having officially opened in February 2024, Cove is the result of a collaborative project with the Swansea University Students’ Union to refurbish our former campus nightclub facility into a fresh new multi-purpose events and activity space for students on our Singleton Park Campus.

Swansea Bay Sports Park (SBSP)

We continue to develop our infrastructure planning in respect of Swansea Bay Sports Park, as part of the Swansea Bay City Deal Campuses Project. This project includes the development of a new facility dedicated to advancing research and innovation in medical, health, wellbeing and sports technologies. A preferred design concept has been approved this year, and construction is scheduled to commence in early 2025.

We have also commenced a wider feasibility study, funded by UK Shared Prosperity Funding, to evaluate the various development options for SBSP. This study will assess the viability of future projects and will enable us and our partners (Swansea Council) to understand the associated opportunities, risks and investment needs of these facilities.

The feasibility report, due to be published in early 2025, will explore and propose options for the mix of future facilities that will improve their quality and capacity, in support of our strategic ambition to enhance community, University, and performance sports provision.

Investing in our outdoor environment

This year, we have introduced new digital signage to our outside spaces on both campuses and we have integrated murals and graffiti art across both campuses, to enrich our campus environment.

We are also undertaking a refurbishment of the lodge at the entrance to our Singleton Park Campus. The lodge will be overclad and updated to improve the overall aesthetic, create a more welcoming entrance experience to visitors and improve the working environment for our Security colleagues.

Work has also commenced to replace the perimeter fencing around our Singleton Park Campus. The new hand-forged steel fencing has been designed to match the size and detailing of the existing structure, preserving the campus’s historic character while enhancing its security and appearance.

Maintaining and Developing our Heritage Assets

While we continue to invest in a campus for the future, we remain committed to protecting the history and heritage of our existing estate. Activity during the past 12 months has focused on building fabric improvements, window and stone repairs and the restoration of many of the original building features of Singleton Abbey, the Wallace Building and our 1937 Library.

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37

OUR SUSTAINABILITY

We remain committed to shaping a more sustainable future for our community and the world, and within our Sustainability and Climate Emergency Strategy (2021-2025) we have pledged:

Through our quarterly Strategic Sustainability Committee, we monitor performance and progress against our key strategic commitments, with our headline achievements this year as follows:

INAUGURAL impact WINNER 65TH Awards 2024 (Navitas Impact Award Winner 2023) e @ete% (THE Impact Rankings 2024) @ 80 TH SUSTAINABILITY RANKINGS (QS Sustainability Rankings 2024) ~~RANKINGS CO~~

(THE Impact Rankings 2024)

TH 9TH WORLDWIDE (THE Impact Rankings 2024) ~~CO GALS~~ 8TH s- GGALS IN THE UK —— 19TH WORLDWIDE

==> picture [102 x 9] intentionally omitted <==

----- Start of picture text -----
(QS Sustainability Rankings 2024)
----- End of picture text -----

(People and Planet University League 2023/24)

(THE Impact Rankings 2024)

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The Climate Emergency and our journey to Net Zero

This year, we have continued to make considerable progress towards our commitment to achieving net zero carbon emissions by 2035. Since 2015/16, we have successfully reduced our Scope 1 and 2 CO2 emissions by 31% and have achieved a 7% reduction in scope 3 emissions.

Our recent decarbonisation interventions have included the installation of over 2,000 solar panels across our campus roofs and the redevelopment of our Haldane building on Singleton Campus from an “E” energy performance rating to an “A” rated, net zero ready building.

We have installed air source heat pumps and upgraded to smart LED lighting within teaching rooms and lecture theatres across our campus, and our Building Management System (BMS) has been upgraded to support plans for smart, efficient and zero carbon buildings. We are also taking steps to become Electric Vehicle (EV) friendly across both campuses and as a result, we have cut our fleet emissions by 70% since 2015/16.

Looking ahead, we will prioritise decarbonising the Singleton Park Campus Domestic Heat Network (DHN) and improving our building fabric to reduce energy consumption and demand. In addition to these technical advancements, we are dedicated to promoting carbon literacy among our students and staff and, as of 2023/24, over 124 Carbon Literacy training courses have been completed.

Our natural environment

As a founding signatory of the Nature Positive Universities Alliance, we are committed to assessing the impact of our activities and taking action to ensure that we leave nature in a better place overall. We have mapped and assessed the many habitats present on our campus and have created 1.2 hectares of wildflower meadow, enhancing existing flora with over 5,000 wildflower plug plants and wildflower seeds.

We installed a further 30 bird and bat boxes and five hedgehog homes in 2023/24 and take pride in being the first university in Wales to achieve Bee Friendly status, as well as holding a Hedgehog Friendly gold award. Our two Green Flag awards further underscore our dedication to environmental stewardship.

Beyond fostering biodiversity on our campuses, we actively collaborate with Local Nature Partnerships to ensure that our efforts align with broader regional initiatives. These collaborations have enabled us to secure additional support from key partners, including Swansea and Neath Port Talbot councils, BugLife and Natural Resource Wales.

Our working environment

In 2023/24 we renewed our ISO 14001 standard Environmental Management System (EMS), completing the recertification audit with zero non-conformances. In applying the EMS, we ensure management of risk and implement sustainability action plans to minimise impacts and realise opportunities for sustainable development.

We proudly maintain our status as a zero waste to landfill university, with over 62% of our waste being recycled or reused. Through initiatives such as our WARP-IT (a re-use marketplace) and campus donation points, hundreds of unwanted items including furniture and clothing have been repurposed or donated to charities, further supporting our sustainability goals.

Our ongoing collaboration with the Swansea Community Environment Centre has been particularly fruitful in 2023/24. We hosted several successful Repair Cafes on campus where more than 50 broken or damaged student possessions like laptops and bikes were repaired, supporting the circular economy. Furthermore, this year we facilitated a number of campus community fridge events through our partnership with Goleudy, distributing 400kg of surplus food to students. This initiative not only helped alleviate cost-of-living pressures but also played a significant role in reducing food waste.

Our sustainable travel

In recognition of the impact of travel on our carbon footprint, but also of the opportunity it presents for activity and exercise, we are committed to promoting low-carbon, active travel options for both students and staff. Our highly successful Bike Hire Scheme remains popular, and we are proud to be the first university in Wales to be awarded the Cycle Friendly Employer accreditation.

Participation in our staff Cycle to Work scheme remains strong and, to further encourage cycling among our student population, we provide free lights and locks, offer complimentary security marking and partner with Bikeability Wales to provide free bike maintenance and cycling proficiency sessions. To reflect our commitment to sustainable commuting, we also offer discounted staff and student annual and term-time bus passes and run regular Travel Champion training. Finally, our University fleet now includes 10 electric or hydrogen vehicles and this year we have trialled a hydrogen bus.

Collectively, these efforts ensure we remain on track to achieve our ambitious goals of reaching net zero by 2035 and position us as a leading institution for environmental sustainability, both regionally and globally.

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A YEAR IN NUMBERS

Our natural environment

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7
Green Flag Bird and bat Rye f
boxes installed
Awards
2
30
42
----- End of picture text -----*

Our journey to Net Zero

==> picture [489 x 137] intentionally omitted <==

----- Start of picture text -----
2,000
Net
solar panels
r} on campus roofs
3 Zero
ready buildings an = ee
li
----- End of picture text -----

==> picture [138 x 127] intentionally omitted <==

----- Start of picture text -----
7,500
lights
LED
installed
on campus
----- End of picture text -----

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----- Start of picture text -----
Carbon emissions
campus solar
a3 ¥ power avoids
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ibe
CO
2
decrease in
95
Scope 1 & 2
tonnes
a Ib 4 a iA a
Since 2015/16
Lo -
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%
Since 2015/16
70
4
vehicle
air and ground source
emissions
heat pumps on campus
reduction
43
----- End of picture text -----*

Our working environment

400 surplus food KG given away Goleudy Community Fridge events S

LEAF 62 [%] Awards waste is recycled or reused 14 laboratory environmental awards

Our sustainable travel

1,000

400

bikes security marked

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----- Start of picture text -----
students
----- End of picture text -----

engaged in sustainable travel training sessions

Cycle to Work 76 scheme sign-ups Cycle Roadshows4

800

lights and locks given to students 500

bikes safety-checked

31 tonnes £19,000 CO2 saved by students in halls AVOIDED

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----- Start of picture text -----
48,317kg
£85,951
CO2 saved
----- End of picture text -----

WARP-IT furniture AVOIDED reuse portal

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----- Start of picture text -----
Scope of Financial Statements the summer of 2023, introducing The statutory reported performance
These financial Statements consolidate ambitious targets for pay and for the year – Total Comprehensive
non-pay savings as well as for Income – is £80.3m but this reflects
Swansea University, its subsidiary
undertakings and associated additional income. the elimination of the deficit in the
Universities Superannuation Scheme
companies and have been prepared Despite changes to the dependants’
in accordance with Financial visa in January 2024, and uncertainty (USS) and the reversal of the pension
provision of £98.7m.
Reporting Standard 102 (FRS102) about whether the Graduate
as interpreted by the 2019 edition Immigration Route would continue, The University had forecast that two
of the Statement of Recommended student recruitment in 2023/24 of its three banking covenants with the
Practice: Accounting for further and was largely in line with forecast. European Investment Bank (EIB) would
higher education. Good progress has been made in be breached at 31 July 2024 and
the implementation of the first year successfully negotiated a waiver
Overview of the FSP with costs being carefully and amendment letter which was
—— The University’s financial strategy is managed and target savings being in place by the year end.
FINANCIAL
to generate sufficient cash to provide exceeded with both pay and non-pay
However, the financial headwinds
resilience, create the necessary costs being below forecast.
continue to place additional strain
levels of working capital and to
This has resulted in a planned on the University and the successful
enable investment in the estate and
underlying operating deficit delivery of the FSP is critical to
REVIEW infrastructure projects. This is becoming
excluding pension adjustments of both the immediate pressures
increasingly challenging for the sector,
£15.0m, EBITDA of £28m and a and the longer-term sustainability
and the University made the decision year-end cash position of £121m, of the institution.
to implement a three-year Financial
equating to 121 days of liquidity.
Sustainability Programme (FSP) in
=
Income – decreased by 7% to £382m
Highlights
2024 saw a decline in income of £30.9m despite an increase in overseas tuition fees. A reduction in research income in the
year combined with a fall in home students and the recognition of only limited capital grants from funding bodies contributed
2024 2023 2024 2023
to the decrease in total income.
Operating surplus £83m £64m Operating surplus as % income 22% 16%
Operating surplus / INCOME AND OPERATING SURPLUS AS A % OF INCOME
Surplus / (deficit) excluding (deficit) excluding pension
pension adjustments (£15m) £33m adjustments as % of income (4%) 8%
450 25%
22%
Total comprehensive income £80m £83m 400 20%
350 £381.695 15%
EBITDA £28m £41m EBITDA as % of income 7% 10%
300 10%
Net cash flow from Net cash flow from operating 250 5%
operating activities (£19m) £50m activities as % of income (5%) 12% 0%
200
-5%
Cash & cash investments 150 – 4%
-10%
at the year-end £121m £173m Liquidity days 121 130
100
-15%
50
-20%
0
ANT -25%
2024 2023 2022 2021 2020
;
Total Income Operating surplus Operating surplus adjusted for
as % Income non–cash pension costs as % Income
46
£ Millions Percentage
%
----- End of picture text -----

The statutory reported performance for the year – Total Comprehensive Income – is £80.3m but this reflects the elimination of the deficit in the Universities Superannuation Scheme (USS) and the reversal of the pension provision of £98.7m.

The University had forecast that two of its three banking covenants with the European Investment Bank (EIB) would be breached at 31 July 2024 and successfully negotiated a waiver and amendment letter which was in place by the year end.

47

Tuition fee income increased by 7% to £213m.

by 30%. Like many in the higher education sector, the University saw a further fall in the number of home undergraduate students after the lower numbers of students progressing from one year of study to the next in the previous year, and a reduction in the number of home students choosing to go on to postgraduate study.

£28.6m, whilst capital recurrent grants increased by £1.4m to £3.4m.

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----- Start of picture text -----
Tuition fee income increased by 30%. Like many in the higher
by 7% to £213m. education sector, the University
saw a further fall in the number
Tuition fee income from full time
of home undergraduate students
overseas students increased by a
INCOME BY CATEGORY after the lower numbers of students
further £23.3m for the year, following
the increase in overseas fees in progressing from one year of study
to the next in the previous year,
2022/23. Income from full time
and a reduction in the number of
home students continued to decline
with a decrease of £7.6m. After home students choosing to go on
to postgraduate study.
several successful years of recruiting
£71m overseas students, 2024 continued
Funding body grants
to see further growth, the number of
enrolments increasing by 19%. This (excluding capital grant income)
; y increase was largely driven by an decreased by 7% to £36m. from £33.9m in 2023.
increase in overseas postgraduate The Recurrent grants for teaching and
2024 £57m £213m taught students, with overseas research (excluding capital) remained
undergraduate enrolments increasing consistent with the prior year at
£41m
TUITION FEE INCOME
£72m
£213m
£199m
| o 200 £188m £184m
£171m
2023 £67m £199m Tuition Fee 150
Funding body grants
100
Research
50
£74m
Other income
0
2024 2023 2022 2021 2020
. “ > 3 sane Home (inc all part–time) Overseas NHS
£ Millions
----- End of picture text -----

During the year to 31 July 2024, £7.1m of non-capital specific grants were received to support projects such as student wellbeing and health, research and innovation, and the Welsh Language £2.3m lower than the previous year. £1.5m of capital funding was recognised as income in the year, with no significant grant funded capital builds completing in the year down from £33.9m in 2023.

48

49

.

Research income, excluding capital grants, decreased by 15% to £56m.

body grants, research, and investment income. Student accommodation income received in the year reduced to £21.9m from £22.8m in the previous year due to a reduction in occupancy on The Bay Campus, and catering income for the year decreased by 11% to £2.4m. Income generated by the academic faculties through collaboration, grant funding, events and other activities such as conferences decreased by 27% to £8.6m, with a decrease in corresponding expenditure. Consultancy work undertaken in the University also fell by 23% in the year to £2.1m. £7.6m of NHS income was received to support academic activities in the Faculty of Medicine, Health and Life Sciences during 2024.

Service Concession Arrangement. This is an annual release of the provision and is not a cash transaction.

Expenditure – increased by 5% to £398m

Expenditure in the year (excluding USS valuation adjustments) increased by £17.1m to £397.5m. Staff costs (excluding USS valuation adjustments and restructuring costs) increased by 3% to £201.2m, whilst other operating expenditure increased by 5% to £147.3m.

The University research grant capture decreased in 2024 after several successful years of research growth. A decrease of 44% in Government funded research grants (excluding capital) contributed to the decline in reported research income, reflecting the cessation of the EU Structural Funds programme. Income from Research Councils increased in the year by 24% to £25.7m, a similar level to 2022, as the University focus shifted from the EU Structural Funded projects to Research Council projects.

Investment Income increased by 18% to £7m.

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----- Start of picture text -----
A decrease of 44% in Government The performance of the cash deposits
Income generated by the academic
funded research grants (excluding capital) and related funds exceeded expectations
faculties through collaboration, grant EXPENDITURE EXCLUDING PENSION ADJUSTMENTS
contributed to the decline in reported due to the recovery of the wider
funding, events and other activities
research income, reflecting the cessation economy. The short-term money fund held
such as conferences decreased by
of the EU Structural Funds programme. with Royal London Asset Management
27% to £8.6m, with a decrease in
Income from Research Councils increased performed exceptionally well in
corresponding expenditure. Consultancy £9m
in the year by 24% to £25.7m, a similar comparison to prior years with income
work undertaken in the University
level to 2022, as the University focus up 49% from the prior year at £6.0m.
shifted from the EU Structural Funded also fell by 23% in the year to £2.1m. The two £25m fixed rate deposits
£7.6m of NHS income was received
projects to Research Council projects. invested until 31 December 2023 saw
to support academic activities in the 32m
a return at an average rate of 4.6%,
Other income Faculty of Medicine, Health and Life and income from the current accounts
decreased by 5% to £63m. Sciences during 2024. more than doubled at £0.3m.
Included within other income is a £9.5m
Other Income includes income generated
accounting adjustment in respect of the
across the University not captured under
the core headings of tuition fees, funding Bay Residences which is treated as a 2024 £147m £210m
| >
RESEARCH GRANTS
£12m
is
100
33m
80 £67m £69m
£62m
£57m
60 £56m
40
£140m £196m
20 2023
Staff costs
0
2024 2023 2022 2021 2020
Other operating expenses
Depreciation
Research Councils UK industry and commerce Other
ee 5 |
UK–based charities Government (UK and overseas) Capital Grants Interest
50
£ Millions
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Staff costs (excluding the USS the national pay award, annual During the year, the 2023 valuation adjustment & restructuring costs) increments and the staff profile. was finalised indicating a pension . increased by 3% to £201m. scheme surplus of £7.4 billion, having During the year a Voluntary Exit assets of £73.1 billion and liabilities Staff full time equivalent (FTE) numbers Scheme (VES) was introduced as of £65.7 billion. With the USS in decreased by 53 during 2024 = part of the University’s Financial surplus, no deficit recovery plan is following an increase in the previous Sustainability Programme. Enhanced required, and therefore no deficit year. Academic staff FTE continued to compensation payments totalling contributions (previous rate 6.2%) grow with 62 additional FTE, whilst £8.5m were made or accrued to 219 are required. Following the triennial research, administrative and other employees who requested to leave valuation, the employer contributions staff declined. Research staff saw the University voluntarily. The VES will decreased from 21.6%, which the largest decrease of 83 FTE posts continue in 2024/25. included the deficit contribution to following the end of the EU Structural 14.5% with employee contributions Funds programme. The Universities Superannuation decreasing from 9.8% to 6.1%. Staff costs (excluding the USS Scheme (USS) pension adjustment and restructuring costs) as charge or credit is calculated annually The credit (reduction to expenditure) a percentage of income (excluding to reflect the estimated change in in the Statement of Comprehensive capital grants) increased to 53% expected future contributions and is Income in the year of £98.7m reflects from 47% as staff costs increased based on the latest valuation and the elimination of the USS deficit and but income generated decreased. discount rates on 31 July each year. the reversal of the pension provision. The average annual salary increased This is an accounting adjustment and to £45k from £42k reflecting not a cash transaction. , STAFF COST AS A % INCOME (EXCLUDING CAPITAL GRANTS) 200 60% £201m 195 £196m 190 55% 185 180 ~~£183m~~ 50% £181m £183m 175 170 45% 165 160 40% 2024 2023 2022 2021 2020 Staff cost Staff cost as a % of income 52

Non-Pay expenditure increased by 7% to £147m.

initiated. Scholarships, bursaries and prizes increased by 5% to £20.7m, with spend on student recruitment and advertising increasing by 31% to £12.4m, following the continuing changes to the global market. Utilities continued to significantly increase in cost with a 34% increase from the prior year to £13.6m, a 76% increase since 2022.

agreements with the providers. The cost of occupancy voids accounted for £2.5m of the rental costs. There was a £0.6m saving generated on the Hendrefoilan site following the completion of its phased closure and a further £0.5m of savings following the temporary closure of the Bay Campus car park.

Rent, rates and leases where the highest non pay costs for the University during 2024 at £24.6m following a 14% increase in the previous year. Consultancy and contracted services were also a significant cost at £22.3m, although this was 3% lower than the previous year.

Within consultancy and contracted services, is the £1.2m grant to the Students Union, £4.3m for the soft facilities management contract, £1.5m on Graduate Entry Medicine GP Placements, and £1.9m on research projects. Spend on non-capitalised equipment decreased by 18% during the year to £12.2m as the Financial Sustainability Programme was

Rent, rates and leases include the rental costs on the student residences of which corresponding rental income is recognised. £19.4m relates to the residences on the Bay and Singleton Campuses. Two new city centre residences were available to students during the year via nominations

OTHER OPERATING EXPENSES 2024

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Repairs,
refurbishment, Travel and
Student
Scholarships, maintenance and conference
recruitment building costs costs
bursaries,
and advertising
prizes and fee
contributions
Consultancy,
Rent, rates professional
Books,
and leases services publications,
Other periodicals Employee
and agency exp and related
library expenditure
services
Non–capitalised
Heat, light,
equipment
power and Catering
water Consumables Subscriptions
and
contributions
Office
Exp
:
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Balance Sheet
2024 to £327.4m. Total assets
-
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Capital Expenditure and Capital Grant Receipts

Covenants

The University has a strong balance In order to satisfy the loan conditions, sheet with reserves increasing during set out by the European Investment 2024 to £327.4m. Total assets Bank (EIB), the University must decreased by £57.2m, largely due ensure compliance with the to a decrease in cash and liquid following covenants: investments, whilst liabilities and provisions decreased by £137.6m 1. The ratio of Net Financial following the reduction in the Indebtedness to Adjusted EBITDA pension provision following the shall not exceed 6.5:1 removal of the USS deficit.

Capital expenditure reduced in the year to £32.3m.

The Campus Master Plan, which built upon the existing Estates Strategy, was finalised in 2024 and will form the basis of an agreed programme of capital expenditure in due course. However, the 2024 capital plan was reduced during the year as part of the Financial Sustainability Programme with the decision taken not to continue with the Fulton House project and smaller projects deferred or reduced in scale.

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

Non-current assets increased by £7.3m, with £32.3m cash spent on capital additions in the year, offset by depreciation charged.

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

Current assets decreased by £64.6m following the reduction in cash and current investments of £52.2m. Capital additions were purchased but with limited grant receipts, whilst a loss in the year of £15.0m (after excluding the USS & SUPS adjustment) further contributed to the cash outlay. A change in the research funder profile reduced the accrued income on research grants, increasing the reduction in current assets.

  1. The University shall comply with any other condition which is set in respect of Medr.

£3.1m was spent on net zero is set in respect of Medr. projects as part of the pathway to decarbonising the campuses by The Financial Sustainability 2035, with a focus on improving Programme assumptions identified the energy performance across that at least one of the covenants the campuses. This included the would be breached at 31 July 2024 installation of solar panels, heat and 31 July 2025. The University pumps and LED lighting. successfully renegotiated the EIB loan covenants, agreeing a covenant The Cove Nightclub opened during holiday for covenants 1 and 2 above the year following a £1.7m investment for 2023/24 and 2024/25 and in 2024, creating a multi-purpose the introduction of a new covenant. events and activity space for students This resulted in an increase in the and £2.2m was spent developing borrowing costs of between 24 infrastructure in the Swansea Bay and 30 basis points across the six Sports Park ahead of the larger City tranches of the EIB loans from 1st Deal project. August 2024.

The Cove Nightclub opened during the year following a £1.7m investment in 2024, creating a multi-purpose events and activity space for students and £2.2m was spent developing infrastructure in the Swansea Bay Sports Park ahead of the larger City Deal project.

Current liabilities decreased by £33.5m as accruals and trade creditors were reduced in part due to the Financial Sustainability Programme and due to timing differences. Research accruals, being money received in advance, were lower at year-end following a change in profile of the research funders.

As part of the Digital Transformation Strategy, £13.0m was spent during 2024 on the network improving the infrastructure, with smaller amounts being incurred on system and AV transformation projects.

The temporary EIB covenant, which will be tested quarterly until 31 January 2026 is:

Creditors falling due in more than one year decreased by £6.2m after loan repayments of £6.1m. The service concession lease arrangement remained relatively constant due to accounting adjustments for a further two-year commitment.

  1. The aggregate sum of Cash and Cash Equivalents and Short-Term Investments plus available and unused amounts under a Revolving Credit Facility shall be greater than £50m for each Quarter from 31 July 2024 until 31 January 2026.

Provisions decreased by £97.8m to just £19.0m with the elimination of the USS deficit, the balance being the Swansea University Pension Scheme deficit.

CAPITAL EXPENDITURE AND GRANT RECEIPTS

50 40 30 20 £24m £19m 10 ~~£16m~~ Capital expenditure 0 £7m £8m Capital grants receipts 2024 2023 2022 2021 2020 Cash and Debt service concession arrangement debt of £3.2m were paid at a rate of on the student residences increased 6.2% until 31 December 2023 when Cash, including current investments, to £116.2m at 31 July 2024 despite the scheme was deemed to be in decreased to £126.1m. the unwinding of the lease liability surplus. The USS provision recognised There was a cash outflow from due to a two year commitment being by the University of £98.7m was provided to UPP to guarantee 100% released to the Statement of operating activities of £18.6m in of the room allocation until July 2026. Comprehensive Income at the same the year to 31 July 2024. £8.9m of cash was used to service the Cash appeared to decrease by just date. No provision is recognised in the financial statements in respect of loan arrangements in the year, £2.9m in the year, the large cash the USS Pension on 31 July 2024. with £8.7m of cash receipts from outflow being eliminated with the investment income. return of the £50.0m cash deposit From 1 January 2024 the employer contributions decreased from 21.6%, Bain: which had been invested for 12 - The University funded £24.9m of which included the deficit contribution months. Current investments, which the capital expenditure from its’ cash to 14.5% with employee contributions includes cash held on deposit, reserves, reduced from previous year. decreasing from 9.8% to 6.1%. decreased by £49.6m as a result. As part of the Financial Sustainability Programme, one significant project The University also operates a CARE scheme, Swansea University Pension did not proceed beyond feasibility, Pension Provisions Scheme (SUPS) for non-academic and a number of smaller projects were modified, deferred or cancelled. The University is a member of the employees, which is closed to new

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 increased from £17.2m to £19.0m as a £3.4m actuarial loss in comprehensive income was recognised and deficit contributions paid reduced the potential increase in the deficit.

The University is a member of the Universities Superannuation Scheme (USS) which provides pensions for academic and professional staff. In the most recent triennial valuation in March 2023 the scheme moved from a deficit position to a surplus of £7.4 billion. Deficit contributions

Net indebtedness decreased by £2.9m to £94.2m, with current investments decreasing by £49.6m.

Loan repayments of £6.1m were made during the year reducing the loans outstanding to £98.4m. The

CASH, DEBT AND NET INDEBTEDNESS

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150
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Future outlook and going concern .

Future outlook

was a fundamental review and redesign of Professional Services, including the introduction of single lines of accountability, upgrading and implementing improved IT systems and improving the efficiency and effectiveness of all our core processes. To further support this transformation, the University has also considered its risk appetite with the aim of having internal controls that are proportionate.

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 has proved increasingly challenging as the University, and the sector, try to navigate the uncertainty that exists in the external environment, mainly in relation to government policies and increased competition for both home and overseas students.

A generous Voluntary Exit Scheme (VES) has been designed to encourage and support the required reduction in staff numbers. Good progress against this plan has been made during 2023/24 with VES savings totalling £8.5m for 2024/25 being approved.

The Key Financial Indicators and associated targets that are used to measure performance are:

• Operating surplus of 3% of income savings totalling £8.5m for 2024/25 in the medium term and 5% in the being approved. longer term Despite changes to the dependants’ • EBITDA in excess of £30m visa in January 2024, and uncertainty • Net Operating Cashflow (NOC) about whether the Graduate in excess of 5% of total income Immigration Route would continue, • Liquidity days in excess of 70 student recruitment in 2023/24 was largely in line with forecast. The In developing the five-year forecasts University’s original forecast student for HEFCW in 2023 it became clear numbers for 2024/25 reflected ; that delivering these targets during the little, if any growth. However, the forecast period would be challenging. overseas markets have continued to be affected by the uncertainty 2 To address this the University around government policy in relation implemented a three-year Financial to immigration and the University has Sustainability Programme (FSP) in seen a significant reduction in the August 2023 with a detailed plan number of overseas postgraduate for a total overall improvement in and undergraduate enrolments for EBITDA of £40m by 2026/27. This 2024/25, when compared to included targets for additional net 2023/24. income and non-pay savings. The main focus of the plan, however, = 56

The scope for mitigations is clearly becoming increasingly difficult but the relatively strong liquidity of the University continues to provide a level of resilience and, importantly, time for the University to deliver the necessary transformational operational and cultural change that is necessary. We do not underestimate the scale of that change but the current university leadership has managed to successfully navigate the multiple challenges created by the pandemic, global economic and geopolitical crises and is therefore confident that the University could manage this downside scenario.

As a result, the University has extended its FSP for a further year and increased the target level of expenditure savings by £30m, across both professional services and academic areas. The ViceChancellor has been clear with staff that the University will remain a multi-disciplinary, researchintensive institution but that these additional savings will necessitate a transformation of the way the University delivers its’ core operations. Whilst the University has no plans to remove individual programmes a comprehensive review of the curriculum is underway including looking at the number of modules, and also at assessment and feedback.

Going concern

The University must ensure that it can maintain sufficient cash to meet its day-to-day operational requirements and liabilities for 12 months from the date of approval of these financial statements. To test the University’s resilience and ability to do this, we have stress tested the current forecasts by identifying a number of key risks and calculating the financial impact of a plausible downside scenario on its Statements of Comprehensive Income, Financial Position, Cash Flows and on its banking covenants for the going concern period.

The main risk that has been tested is the reduction in home and overseas student numbers against the 2024/25 and 2025/26 original forecasts, taking into account actual enrolments to October 2024 and anticipated enrolments in January 2025 and September 2025, based on current applications and market intelligence.

Members of Council have considered and also at assessment and is the reduction in home and the underlying assumptions of the feedback. overseas student numbers against the downside scenario, the proposed 2024/25 and 2025/26 original Like others in the sector, the University forecasts, taking into account actual mitigations, and the financial is also looking at ways to diversify enrolments to October 2024 and impact of these, particularly in its income with a number of new relation to the cash position and the anticipated enrolments in January UK and overseas partnerships in renegotiated loan covenants. Whilst 2025 and September 2025, based the pipeline as well as the acknowledging the scale of the on current applications and market introduction of new modes of challenge facing the sector and the intelligence. delivery, specifically on-line. University, the Members of Council Other risks that have been considered are confident that the University include reductions in student related can manage the risks and will have income from catering and sports sufficient funds to meet the University’s facilities, the potential for ongoing liabilities as they fall due over the student accommodation voids and period of 12 months from the date of additional inflationary pressure on approval of the financial statements. costs. The successful delivery of the FSP is critical to the future financial sustainability of the University and consequently, the risk of not achieving the required savings has also been tested. A Sarah Jones, Boe Anne Tutt, Chief Financial Officer University Treasurer

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

PRINCIPAL RISKS AND UNCERTAINTIES

The University maintains a university-level Risk Register which is formally reviewed quarterly by the Senior Leadership Team, Audit, Assurance and Risk Committee and Council. It is also updated as and when appropriate if it is clear that risks are changing more rapidly. During 2023/24 the University approved a Risk Appetite Statement which has required a review of the risk management system to incorporate risk appetite into the risk registers. The distribution of risks continues to reflect the uncertainties that exist in the external environment including the increased competition for home and overseas students, geo-political issues and the ongoing

Strategic Risk Main mitigations
Financial sustainability
Inability to deliver the forecast income growth and
expenditure reductions due to external factors, (high
inflation on costs, high pay award expectations, fixed tuition
fee, financial sustainability of HE sector), leads to inability
to deliver a balanced budget, resulting in failure to create
the surpluses required for investment and to deliver the
university objectives		 • Monthly budget reporting and monitoring
and quarterly reforecasting
• Detailed financial assessment and
stress testing of inherent risks
• Financial Sustainability Programme
being implemented		 • Monitoring of covenants
• Management of vacancies
• Revolving Credit Facility obtained
International student recruitment
UK government policy changes, challenges with admissions,
over-reliance on limited number of price sensitive markets,
lack of diversification and increased competition lead
to inability to meet forecast international numbers,
resulting in reduced financial sustainability		 • Implementation of the International Strategy
• Diversification of future revenue stream,
including in modes of delivery
e.g. on-line delivery
• Exploration of new Transnational
Education opportunities to deliver
in-country programmes		 • Identification of new markets for
the development of an enhanced
overseas presence
• Monitoring and review of
performance of existing markets
Cyber security
Inadequate information management controls leads to
reduced ability to protect, process and access information,
resulting in increased successful cyber-attacks, a loss of
reputation, compliance breaches, fines and penalties and
increased costs.		 • JISC Cyber Security Threat Monitor service implemented
• Migration to new JISC managed SOC pilot planned
• Cyber hygiene activities to be prioritised
• Digital Services redesign implemented allowing greater degree of centralised management
• Adopting the Cyber Risk Framework created by Scottish Government for HE in Scotland
Staff morale – impact of change
Sustained increased workloads, uncertainty re future job
security, opportunities arising from financial situation and
service redesign lead to reduced staff morale, resulting in
increased stress, absence and turnover, reduced wellbeing,
engagement and productivity		 • Regular communication to staff via various forums
• Recognition of staff efforts
• Implementation of a Leadership Development programme to support
leadership capacity and capability
• Joint Working Group with campus unions established
• Voluntary Exit Scheme provides an opportunity for some staff
Student retention
Poor assessment and feedback, student engagement and
support, financial hardship, etc. lead to increased student
withdrawal rates resulting in poor student outcomes,
loss of income, damage to reputation, (NSS, etc.),
impact on future recruitment		 • Review processes for assessment, re-sits, academic misconduct
• Move from Academic Mentor to Personal Tutor; more focus on support and wellbeing
• Increase student engagement and training to manage expectations and improve resilience
• Retention Working Group established to identify and implement longer-term actions along
with Learner Analytics Project work focused on enhancing retention
Student experience – learning and teaching
Poor teaching quality, student: staff ratios, learning
environment, support and Graduate Outcomes services
lead to a poor student experience and learning outcomes,
resulting in dissatisfaction, impact on NSS and league table
scores, the wider reputation of the University, recruitment
and the achievement of the University’s growth strategy.		 • Learning and Teaching Strategy being implemented
• Curriculum review underway
• NSS Recovery Plan being led by the PVC Education
• Gateway to Student Services project under development
• Graduate Outcomes project established
Home student recruitment
Increased competition and increased challenges to
undergraduate recruitment lead to inability to meet forecast
student recruitment numbers, resulting in reduced financial
sustainability.		 • Review by the UK Recruitment Strategy Board
• Maintain and develop Clearing Strategy and campaign through Clearing Steering Committee
• Engagement with FE Colleges as part of Diversification project
• Exploration of external opportunities and partnerships to increase recruitment potential
IT – Core business systems
Lack of a coherent and end-to-end service approach for
core business systems leads to difficulties in delivering the
necessary services required by students and staff resulting in
negative impacts on student experience and staff workloads		 • Analysis of core business systems and
their interfaces; integration platform
being implemented for interfaces
• Business case with costed options
to be produced for each platform
• Project Boards established and funding
in place		 • Overall Enterprise view of end-to-end
services for Student and Administration
systems
• Develop and agree Core Business
systems roadmap with clear priorities
• Significant work undertaken re. core
systems, (ABW, SITS, CRM)
University student accommodation
Reduced student demand for university owned / contracted
accommodation leads to increased number of vacant
rooms, resulting in reduction in income and ongoing
contractual costs		 • Ongoing monitoring of vacant rooms, location, pricing
• Modelling of financial impact and identification of mitigating actions
• Review of student accommodation strategy
• Promotion of university accommodation to January entry students
~~5~~

Cyber security Inadequate information management controls leads to reduced ability to protect, process and access information, resulting in increased successful cyber-attacks, a loss of reputation, compliance breaches, fines and penalties and increased costs.

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Our Civic Mission We are proud to belong to the City of PUBLIC BENEFIT Swansea, the wider Swansea Bay City Region and to Wales, and we celebrate that heritage. With campuses in three ee local authority areas, we recognise that STATEMENT our University is 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 Swansea University has been a registered charity impact we seek to make in communities (no.1138342) since October 2010. Our constitutional worldwide. We attract colleagues and — framework is defined in our Charter and Statutes and students to Swansea from all over the world and we are committed to ensuring Article three of the Supplemental Charter highlights that the education and experiences we our University’s objectives: “to advance learning and provide and the research we pursue are relevant locally and internationally. knowledge by teaching and research, and to engage Above all, we seek to work in genuine, in activities to promote and contribute to cultural, social open and equitable partnership, and to learn as much from others as we can. and economic development within Wales and beyond”. We are an anchor institution that plays In setting and reviewing objectives and activities and an active part in the life of the region. in making decisions, the University’s Council has We have strong links with other anchor institutions and major employers, had due regard to the Charity Commission’s public including Health Boards, local benefit guidance and supplementary guidance on the authorities, and private and third sector organisations, and we have effective advancement of education.

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 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 are an anchor institution that plays an active part in the life of the region. We have strong links with other anchor institutions and major employers, including Health Boards, local authorities, and private and third sector organisations, and we have effective partnerships with further education colleges and schools. We have invested significantly in the infrastructure needed to support skills and innovation and are a key partner in the Swansea Bay City Deal.

Our Strategic Vision and Purpose (2020) is underpinned by five pillars, each with their own strategies, which are summarised below. Our Strategic Vision and Purpose also recognises that the climate crisis remains society’s biggest threat. Consequently, we align our work to the Sustainable Development Goals (SDGs) and have committed to being a carbon-zero university by 2035.

We contribute to the cultural life of our community through our Taliesin Theatre and Great Hall, the Egypt Centre, our South Wales Miners’ Library and Richard Burton Archives, and the International Dylan Thomas Prize, and have signed the Armed Forces Covenant in recognition of the value that serving personnel, veterans and military families contribute to our University and our nation.

Our Student Experience

Our students are at the heart of our University. We take their needs and expectations into account in our decision-making and 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. In partnership with our Students’ Union, we work to ensure that every student who makes Swansea their home experiences the best of us.

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. During the year, our student volunteering charity, Discovery, supported 190 volunteering sessions for more than 600 student volunteers who worked with people across our community: older people; disabled adults and children; refugees and asylum seekers; exploited women; people experiencing isolation and loneliness, and students with additional needs.

Our 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 also work to maintain our status as a community that balances research and teaching excellence.

We are committed to widening and deepening access to education, promoting lifelong, inclusive and equitable learning opportunities. Our University is the lead partner in

the Medr-funded South West Wales Reaching Wider Partnership and also funds and delivers the Step Up to Swansea University programme. Both programmes aim to increase participation in Higher Education by people from underrepresented groups – including care-experienced young people – and communities in Southwest Wales.

Our Swansea Academy of Inclusivity and Learner Success (SAILS) 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.

Our 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 have continued to build on our existing research strengths, taking advantage of emerging opportunities and broadening our base of research funders in order to become more resilient in an increasingly challenging research funding environment.

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 largescale health data which received the Queen’s Anniversary Prize for Higher Education this year; 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.

Our 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, and with the many organisations we collaborate with internationally.

Our entrepreneurial approach adds value to the student experience, providing opportunities for our students to gain practical skills through placements, internships and collaborative research projects, and we support students to launch their own businesses. Swansea University is also among the leading academic institutions in the UK for generating spinout companies. The annual Spotlight on Spinouts report, sponsored by the Royal Academy of Engineering, positions our University in the UK top 10 (and top in Wales) for spinouts.

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61

CORPORATE GOVERNANCE STATEMENT AND STATEMENT OF INTERNAL CONTROL

The University conducts its activities in accordance with both the Committee of University Chairs (CUC) Higher Education Code of Governance and the 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). 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 finance, estates, investments, and general business of the University.

None of the lay members receive 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 role of the Chair of Council, which can only be undertaken by a lay member, is separate from the role of the University’s Chief Executive, the Vice-Chancellor. The staff members of Council are appointed through a fair and open election process.

Constitution and Powers

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 its supporting Statutes the latest amendments to which were approved by the Privy Council in 2021. The University registered as a charity in October 2010 (1138342).

The Council normally meets at least four times a year and exercises its responsibilities through the executive management and standing committees set out below. Special meetings may be called at the request of the Chair if required. During 2023/24, the Council held eight meetings, including four special meetings. Three of the meetings were held in person, four were held as hybrid meetings, and one was held remotely.

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 the Chair 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 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

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:

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 under-represented groups. Applications are considered by the Governance and Nominations Committee and matched against the current skills and experience matrix.

Council

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

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 Review of

Governance of Universities in Wales by Gillian Camm (CAMM Review), which contains a clear statement of the Secretary’s accountability for highlighting issues of independence or conflict to the Chair.

interest 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. Any declarations identified and

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

Members of the University Council who served during the year ending 31 July 2024 and up to the Council meeting at which the financial statements were signed are listed below. Attendance at Council meetings during the year ending 31 July 2024 (*expressed as the number of Council meetings attended out of a total of meetings the member was due to attend) is provided below.

Council Member Category Attendance
Mr Bleddyn Phillips, Pro-Chancellor & Chair of Council (until 31 December 2023) Lay 4/4
Mr Goi Ashmore, Treasurer (until 31 December 2023) & Pro-Chancellor & Chair of Council (from 1 January 2024) Lay 7/8
Sir Roderick Evans, Pro-Chancellor (until 31 March 2025) Lay 7/8
Ms Anne Tutt, Co-opted lay member (until 31 December 2023) & Treasurer (from 1 January 2024) Lay 6/8
Professor Paul Boyle, Vice-Chancellor (until 31 July 2029) Staff 8/8
Dr Kerry Beynon, Co-opted lay member (until 3 February 2024) Lay 3/4
Mr Laurence Carpanini, Co-opted lay member (until 31 December 2026) Lay 7/8
Professor Edward David, Co-opted lay member (until 3 February 2028) Lay 8/8
Mr Huw Davies, Co-opted lay member (from 1 August 2024) Lay 0/0
Professor Kathryn Monk, Co-opted lay member (until 26 January 2026) Lay 6/8
Ms Nataliya Manskova, Co-opted lay member (from 1 August 2024) Lay 0/0
Mr Phillip Morgan, Co-opted lay member (from 4 February to 19 June 2024) Lay 0/2
Dr Angus Muirhead, Co-opted lay member (until 31 July 2024) Lay 7/8
Ms Elin Rhys, Co-opted lay member (until 3 February 2024) Lay 4/4
Mrs Marcia Sinfield, Co-opted lay member (until 30 November 2024) Lay 7/8
Professor Keshav Singhal, Co-opted lay member (until 30 November 2024) Lay 6/8
Mr Richard Thomas, Co-opted lay member (from 16 May 2024) Lay 1/3
Ms Nan Williams, Co-opted lay member (from 1 January 2024) Lay 4/4
Dr Mahaboob Basha, Appointed by Staff (until 30 June 2027) Staff 6/8
Mr Adam Jones, Appointed by Staff (until 30 June 2027) Staff 8/8
Professor Michelle Lee, Appointed by Senate (until 30 June 2027) Staff 8/8
Dr Phatsimo Mabophiwa, Appointed by Senate (until 30 June 2027) Staff 7/8
Miss Megan Chagger, President of Students’ Union (from 1 July 2024) Student 2/2
Miss Abigail Egwuatu, Appointed by the Students’ Union (until 30 June 2024) Student 6/6
Mr Pablo Josiah, President of Students’ Union (until 30 June 2024) Student 6/6
Miss Katie Wilkinson, Appointed by the Students’ Union (from 1 July 2024) Student 2/2

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CUC Higher Education

meant by independence and those matters which may compromise governor independence together with an updated Council Code of Conduct setting out the required behaviours and standards of Council members to support governing bodies in delivering the highest standards of governance;

Code of Governance

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. In accordance with this Code, Council commissioned an Independent Effectiveness Review in 2023, which was undertaken by AUA Consulting. This Review recognised the improvements implemented by the University since its last effectiveness review in 2019 and concluded that significant assurance could be placed in the University’s governance arrangements, that there were no matters from a governance perspective which required attention, that the Council was conducting its activities in accordance with the Code, and that the conduct of this Review had demonstrated the University’s commitment to continuous improvement in its governance arrangements in line with best practice as set out in the Code. The Review identified some improvement and enhancement opportunities which Council has considered and has agreed an action plan for implementing several of these. In respect of the year ended 31 July 2024, the Council can report that there was no primary element of the Code of Governance with which the University’s procedures was not consistent.

Senate

procedures was not consistent. The Senate, which is established by the University’s Charter, is the academic Review of governance authority of the University. The Senate’s of the universities in Wales membership, powers and duties are set out in Ordinance 4, which is available The Council has formally adopted the on the University’s website. Senate is Governance Charter for Universities chaired by the Vice-Chancellor and in Wales and Commitment to Action its membership includes the Provost, published in response to the CAMM Pro-Vice-Chancellors and Pro-ViceReview and continues to implement the Chancellors Executive Deans, Deputy recommendations identified to ensure Pro-Vice-Chancellors, Deputy Executive compliance with the Commitment Deans, Faculty Associate Deans, to Action. Building on the good Heads of Schools, Directors of Strategic progress made in previous years, key Faculty Operations, Education Services, developments in 2023/24 include: Student Life and Academi Hywel • the adoption of a Statement of Teifi, and student members together Independence for Lay Council with 24 elected members drawn from Members which sets out what is the Professorial and non Professorial

academic staff in the Faculties.

The Senate normally meets four times each year, however, special meetings may be called at the request of the Chair if required. During 2023/24, the Senate held five meetings, including one special meeting. Four meetings were held in person and one as a hybrid meeting. Senate’s business focused on reviewing University strategies (including Enterprise, Sports, Welsh Language, Heritage and Culture, and Education); reviewing the University’s quality assurance processes and framework and the Annual Governors Quality Assurance Statement; and reviewing the University’s performance in league tables and rankings including the National Student Survey. Senate also received updates on University-wide projects and major initiatives, student recruitment and the policy and sector landscape together with regular reports from its sub-committees established to assist it in discharging its responsibilities.

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 an interest in the work of the University. The membership also includes members of Council, representatives of the staff of the University (both academic and non-academic) and the student body. The Court ordinarily meets once a year, and last met in person on 1 February 2024 to consider the University’s Annual Review and Financial Statements for 2022/23.

Accountable Officer

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 non-financial 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.

Pro-Vice-Chancellors Executive Deans, and the Chief Financial Officer. The Senior Leadership Team meets weekly and considers strategic and operational matters.

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 Medr, 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 (subsequently Medr).

Committees

The Council has established four 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 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 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’s management, although senior executives attend meetings as necessary, and, in line with Medr’s Financial Management Code, there is no cross representation between the Audit, Assurance and Risk and the Finance and Strategy Committees. Committee Members who served during the year ending 31 July 2024 and up to the Council meeting at which the financial statements were signed are listed below. Attendance at Committee meetings during the year ending 31 July 2024 (*expressed as the number of Committee meetings attended out of a total of meetings the member was due to attend) is provided below.

Senior Leadership Team

As chief executive of the University, constituted, with their own terms of the Vice-Chancellor has responsibility reference and membership approved for the development of institutional by the Council on the recommendation strategy, the identification and planning of the Governance and Nominations of new developments, and the shaping Committee. The role of the Secretary of the institutional ethos. Members of to Council is defined in the University’s the Senior Leadership Team and the Ordinances and the Secretary to Directors of Professional Services all Council also acts as the Secretary to contribute in various ways to these most of the Committees of Council. aspects of the work, but ultimate authority rests with the Council. The Audit, Assurance and membership of the Senior Leadership Risk Committee Team, which is chaired by the Vice-Chancellor, includes the Provost, The Audit, Risk and Assurance the Registrar and Chief Operating Committee is responsible for advising Officer, the Pro-Vice-Chancellors, and assisting Council in respect of the

Audit, Assurance and Risk Committee Member
Category
Attendance at meetings*
Dr Kerry Beynon, Chair of the Committee (until 3 February 2024)
Lay
2/2
Mrs Marcia Sinfield, Chair of the Committee (from 4 February 2024)
Lay
4/4
Miss Abigail Egwuatu, Student member of Council (from 17 November 2024 to 30 June 2024)
Student
3/3
Professor Kathryn Monk, Co-opted member of Council
Lay
4/4
Mr Phillip Morgan, Co-opted member of Council (from 4 February to 19 June 2024)
Lay
1/1
Mr Richard Thomas, Co-opted member of Council (from 16 May 2024)
Lay
1/1
Ms Anne Tutt, Co-opted member of Council (until 31 December 2023)
Lay
2/2
Mrs Alison Vickers, Co-opted Committee lay member
Lay
3/4
Miss Katie Wilkinson, Student member of Council (from 1 July 2024)
Student
0/0
a

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65

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 normally meets four times a year, however, special meetings may be called at the request of the Chair if required. During 2023/24, the Committee held four meetings, two of which were held as hybrid meetings and two were held remotely. The Committee’s business focused on discussing the nature and scope of the Annual Audit Plan with the External Auditors and receiving progress reports on its implementation; approving the Internal Audit Plan following discussions with the Associate Director - Internal Audit and receiving reports on its implementation; recommending to Council the proposed approach and arrangements in relation to the University’s risk appetite; approving its Annual Report to Council; overseeing the University’s policies related to ethical and other behaviours and receiving reports on any actions taken under these policies; and receiving update reports on standing risk items (cyber security, health and safety, loan covenants, reputation, and whistleblowing). The Committee has received regular updates on the University’s Financial Sustainability programme and has also reviewed its terms of reference and effectiveness; the

Assurance Map; internal audit reports and monitored the implementation of agreed audit based recommendations; the risk management arrangements, the risk register and key risks; the effectiveness of the external and internal audit arrangements; Medr’s Institutional Risk Letter; the External Auditors’ management letter; the Internal Auditors’ annual report; and met regularly with the External Auditors, the Associate Director - Internal Audit, the Registrar and Chief Operating Officer, and the Chief Financial Officer providing an opportunity for them to discuss any private matters.

The Committee is chaired by the Risk Letter; the External Auditors’ University Treasurer. All lay members management letter; the Internal Auditors’ of the Committee and its Chair annual report; and met regularly with are appointed by Council on the the External Auditors, the Associate recommendation of the Governance and Director - Internal Audit, the Registrar Nominations Committee. In line with and Chief Operating Officer, and the Medr’s Financial Management Code, Chief Financial Officer providing an there is no cross representation between opportunity for them to discuss any the Audit, Assurance and Risk Committee private matters. and the Finance and Strategy Committee. Committee Members who Finance and Strategy Committee served during the year ending 31 July The Finance and Strategy Committee 2024 and up to the Council meeting has oversight of and monitors the at which the financial statements were financial health of the University signed are listed below. Attendance at on behalf of the Council. Its key Committee meetings during the year responsibilities are (i) to ensure the ending 31 July 2024 (*expressed as the medium and long-term financial number of Committee meetings attended sustainability of the University through out of a total of meetings the member regular reviews of the University’s was due to attend) is provided below. 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

— eee Finance and Strategy Committee Member Category Attendance at meetings*

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|||| |---|---|---| |Mr Goi Ashmore, Treasurer & Chair of the Committee (to 31 December 2023)| |& Pro-Chancellor and Chair of Council (from 1 January 2024)|Lay|6/6| |Ms Anne Tutt, Treasurer & Chair of the Committee (from 1 January 2024)|Lay|3/3| |Professor Paul Boyle, Vice-Chancellor|Staff|4/6| |Miss Megan Chagger, Student member of Council (from 1 July 2024)|Student|0/0| |Professor Edward David, Co-opted member of Council|Lay|6/6| |Dr Angus Muirhead, Co-opted member of Council (until 20 March 2024)|Lay|3/4| |Mr Bleddyn Phillips, Pro-Chancellor & Chair of Council (to 31 December 2023)|Lay|3/3| |Mr Steve Smith, Co-opted lay member|Lay|5/6| |Mr Laurence Carpanini, Co-opted member of Council (from 10 July 2023)|Lay|4/6| |Mr Pablo Josiah, Student member of Council (from 9 October 2023 to 30 June 2024)|Student|5/6| |Ms Nan Williams, Co-opted member of Council (from 21 March 2024)|Lay|2/2| |Professor Michelle Lee, Staff member of Council (from 9 October 2023)|Staff|5/5|

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arrangements, financial forecasts of University subsidiaries, the Students’ Union Accounts, and TRAC processes and reports. business cases for regional and global partnerships, a revised Scheme of Delegation, a draft Treasury Management Policy, and reviewing the Committee’s terms of reference.

The Committee normally meets four arrangements, financial forecasts of times a year, however, special meetings University subsidiaries, the Students’ may be called at the request of the Union Accounts, and TRAC processes Chair if required. During 2023/24, the and reports. business cases for regional Committee held six meetings, including and global partnerships, a revised two special meetings. Two meetings Scheme of Delegation, a draft Treasury were held in person, three as hybrid Management Policy, and reviewing the meetings, and one was held remotely. Committee’s terms of reference. The Committee’s business focussed on reviewing and recommending to Council Governance and the University’s financial forecasts and Nominations Committee the Financial Sustainability Programme The Governance and Nominations established in response to the financial Committee reviews and advises challenges facing the University and HE Council on the University’s governance sector more widely due to increased arrangements, ensuring that the costs and inflation, the continued University pursues good practice and devaluation of the undergraduate home complies with external governance fee, competitor behaviour in relation requirements. Its key responsibilities to home students, and retention and are (i) to ensure compliance with progression issues. The Committee external governance requirements, (ii) considered and received regular to review the membership of Council updates on the implementation of the and its Committees ensuring it has Programme, including Service Redesign, the necessary balance of skills and income generation, pay and non-pay experience to enable it to fulfil its savings, a Voluntary Exit Scheme, and responsibilities, (iii) to review and make a review of future capital expenditure. recommendations on changes to the In addition, the Committee reviewed University’s governing documents, the management of key financial (iv) to review, advise and make risks, business planning processes, recommendations on the recruitment the University’s pension scheme

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 Committee is chaired by the Chair of Council. All lay members of the Committee and its Chair are appointed by Council on the recommendation of the Governance and Nominations Committee. Committee Members who served during the year ending 31 July 2024 and up to the Council meeting at which the financial statements were signed are listed below. Attendance at Committee meetings during the year ending 31 July 2024 (*expressed as the number of Committee meetings attended out of a total of meetings the member was due to attend) is provided below.

Governance and Nominations Committee Member LC

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|||| |---|---|---| |Governance and Nominations Committee Member|Category|Attendance at meetings*| |Lay|3/3| |Mr Bleddyn Phillips, Pro-Chancellor & Chair of Council & Chair of the Committee (until 31 December 2023)| |Mr Goi Ashmore, Pro-Chancellor & Chair of Council & Chair of the Committee (from 1 January 2024)|Lay|2/2| |Professor Paul Boyle, Vice-Chancellor|Staff|5/5| |Miss Megan Chagger, Student member of Council (from 1 July 2024)|Student|0/0| |Sir Roderick Evans, Pro-Chancellor|Lay|5/5| |Professor Ryan Murphy, Appointed by Senate|Staff|4/5| |Mr Adam Jones, Staff Member of Council (from 9 October 2023)|Staff|2/3| |Mr Pablo Josiah, President of Students’ Union (until 30 June 2024)|Student|5/5| |Ms Elin Rhys, Co-opted member of Council (until 3 February 2024)|Lay|3/3| |Professor Keshav Singhal, Co-opted member of Council|Lay|4/5| |Ms Anne Tutt, Co-opted member of Council (until 31 December 2023)|Lay|3/3| |Ms Nan Williams, Co-opted member of Council (from 1 January 2024)|Lay|2/2|

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The Committee normally meets four Remuneration Committee times a year, however, special meetings The Remuneration Committee ensures may be called at the request of the that it complies with the requirements Chair if required. During 2023/24, the of the Committee of University Chairs Committee held five meetings, including (CUC) Higher Education Senior Staff one special meeting. Four of the Remuneration Code and publishes an meetings were held remotely and one annual report which is available on as a hybrid meeting. The Committee’s the University website. The Committee business focussed on recommending is responsible for (i) overseeing and to Council the appointment of a new scrutinising the reward strategy of the University Treasurer and new lay University, (ii) developing an overall members of Council; reviewing the reward strategy and policy to cover the Independent Review of Governance remuneration, benefits and conditions of Effectiveness Report and recommending employment of the senior employees of an action plan for implementing the University on Grade 11 and those some improvement and enhancement who report directly to members of the opportunities to Council; reviewing and Senior Leadership Team; (iii) reviewing recommending to Council changes to and determining all aspects of the the terms of reference and membership remuneration, benefits and conditions of Council Committees and reviewing of employment of the Vice-Chancellor, the effectiveness of these committees; and the remuneration and other financial recommending to Council the adoption benefits of the other members of the of a Statement of Independence for Lay Senior Leadership Team taking account Council Members, an updated Council of affordability, comparative information Code of Conduct, and proposals for on remuneration, benefits and conditions the review of Court. The Committee also of employment in the University sector received the University’s Equality Annual and elsewhere as appropriate, (iii) to Report and reports on the diversity of provide an annual report on progress Council and Council Committees, the for Council which is transparent, aligned register of declarations of interest, and with the recommendations of the Higher the appraisal process for the Chair of Education Senior Staff Remuneration Council and the Vice-Chancellor. Code, and meets the requirements of good governance.

The Remuneration Committee is chaired by a lay member of Council and comprises independent lay members of Council who possess relevant knowledge and expertise. All Committee members and its Chair are appointed by Council on the recommendation of the Governance and Nominations Committee. All members are independent of the University. The Registrar and Chief Operating Officer, the Director of Human Resources and the University Secretary attend all meetings and other senior executives attend meetings as necessary. The Vice Chancellor is not in attendance for, and does not play a part in, the discussions and decisions of his own remuneration. No members of staff are present when the Committee makes decisions on their reward. The Chair of the Committee regularly updates Council.

Committee Members who served during the year ending 31 July 2024 and up to the Council meeting at which the financial statements were signed are listed below. Attendance at Committee meetings during the year ending 31 July 2024 (*expressed as the number of Committee meetings attended out of a total of meetings the member was due to attend) is provided below.

Remuneration Committee Member
Category
Attendance at meetings*
erre—SSCSCiL		 Remuneration Committee Member
Category
Attendance at meetings*
erre—SSCSCiL		 Remuneration Committee Member
Category
Attendance at meetings*
erre—SSCSCiL		 Remuneration Committee Member
Category
Attendance at meetings*
erre—SSCSCiL
Dr Angus Muirhead, Co-opted member of Council & Chair of the Committee Lay 4/4
Goi Ashmore, Pro-Chancellor & Chair of Council (from 1 January 2024) Lay 3/3
Laurence Carpanini, Co-opted member of Council Lay 3/3
Professor Edward David, Co-opted member of Council Lay 4/4
Sir Roderick Evans, Pro-Chancellor Lay 4/4
Professor Kathryn Monk, Co-opted member of Council Lay 4/4
= Mr Bleddyn Phillips, Pro-Chancellor & Chair of Council (until 31 December 2023) Lay 1/1
Ms Elin Rhys, Co-opted member of Council Lay 1/1

During 2023/24, the Committee held four meetings, all of which were hybrid meetings. The Committee’s business focused on reviewing and determining the remuneration, benefits and conditions of employment of new members of the Senior Leadership Team and Director positions; considering and making decisions on the Remuneration process for 2023 and 2024; approving the cost-of-living award for the ViceChancellor and noting the award for all other colleagues in accordance with the salary increases applied following 2023/24 pay negotiations conducted by UCEA on behalf of HEIs; reviewing the Remuneration Committee’s terms of reference and committee effectiveness in line with sector practice; approving a new Annual Pay Policy Statement setting out the University’s policies on a range of issues concerning the pay and remuneration of its workforce; approving a Remuneration Statement which is transparent, aligned with the recommendations of the CUC Higher Education Senior Staff Remuneration Code and meets the requirements of good governance; receiving high-level updates on the University’s Financial Position and Voluntary Exit Scheme (VES), the University’s reward activities and approval route, the implementation of the Real Living Wage, and Gender Pay; noting Promotions via the Retention of Exceptional Talent procedure; and actively involved in, and responsible for, the decision process for any severance arrangements for grade 11 employees and for payments greater than £60,000.

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 the 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:

• all significant risks, including governance, management, quality, reputational and financial are included within the University’s Risk Register, which is managed and maintained by the University’s Senior Leadership Team through a clearly articulated policy and approach. The Risk Register produces a balanced portfolio of risk exposure which focusses on the key risks;

The University’s Senior Leadership Team has formal processes in place for evaluating and managing significant risks faced by the institution on an ongoing basis. This involves identification of the types of risks through a top down and bottom-up approach 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. Responsibility to ensure the risk framework is working effectively and that risk is being managed and for advising Council and ensuring appropriate reports and recommendations and the risk register are presented to the Council lies with Audit, Assurance and Risk Committee. 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 for information.

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 (subsequently Medr) and the Charity Commission and any other relevant authority as appropriate depending on the nature of the issue.

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Senior Staff This is defined as the Vice-Chancellor —— and all members of the Senior ANNUAL PAY Leadership team together with Grade 10A and Grade 11 (including Professional Services Directors and POLICY REPORT Professors) and those who report directly to members of the Senior Management Team. Remuneration Committee The Remuneration Committee is responsible for overseeing and scrutinising the Reward Strategy of the Swansea University upholds a framework for the recognition University, for developing an overall and reward of all employees to support the University’s vision reward strategy and policy to cover the remuneration, benefits and conditions and values and recognises the importance of an equal and of employment of the senior employees transparent pay system which provides value for money. of the University on Grade 11 and those who report directly to members The purpose of the Annual Pay Policy Statement is to set out the of the Senior Leadership Team, and University’s policies on a range of issues concerning the pay and for reviewing and determining all aspects of the remuneration including remuneration of its workforce. The University’s pay and grading any annual pay increases, benefits policies, procedures, and practices are available to all employees. and conditions of employment of the Vice-Chancellor, taking account of the In addition to complying with all accounting practices, which breadth of leadership and financial — require a full annual remuneration report, the University’s Pay responsibilities, and delivery against the University’s strategic objectives. Policy Statement has been prepared in accordance with the The Committee also receives reports principles detailed in the Welsh Government’s ‘Transparency allowing oversight of pay in all other areas of the University. of senior remuneration in the devolved Welsh public sector’ The Remuneration Committee is a published in December 2015.

The Remuneration Committee is a standing Committee of Council, the governing body of the University, and its membership comprises six lay governors including the University’s two Pro-Chancellors one of whom is the Chair of Council.

The University also ensures that the principles of the Committee and its membership comprises six lay of University Chairs (CUC) Higher Education Senior Staff governors including the University’s two Remuneration Code, November 2021 are applied throughout Pro-Chancellors one of whom is the Chair of Council. their processes and practices and presents a Senior Staff Remuneration report annually to demonstrate this to the Reporting of Senior Pay Board of Governors. The salary of the Vice-Chancellor, together with anonymised data on salaries above £100K is published in the University’s Annual Review and Financial Statements. 70 _

National Framework Agreement

Vice-Chancellor: The Pro-Chancellor who is the Chair of Council is responsible for the remuneration process for the Vice-Chancellor, including determining performance and recommending a remuneration reward for the Vice-Chancellor to the Remuneration Committee.

All employees on Grades 1-10 are paid on a nationally agreed pay scale, which is negotiated annually as part of collective pay negotiations between UCEA and the five Higher Education trade unions (UCU, UNISON, Unite, EIS and GMB) on behalf of a number of HE institutions in the UK.

The Remuneration Committee ensures that any pay increases for senior staff are implemented within the limit of a pre-defined affordable, budget.

In addition to any increases determined through the collective pay negotiations, all colleagues from grades 1-10 receive automatic incremental progression annually until they reach the top of their grade.

Academic Career Pathways

The University’s Academic Career Pathways criteria clearly indicate the activity and achievements required from colleagues at each level, on each pathway, and are used as the basis for clear and transparent decision-making in academic recruitment, academic PDR, academic promotion, and Professorial remuneration. The University has reviewed its Academic Career Pathways, first introduced in 2015, and the new approach moves away from the use of numerical Key Performance Indicators (KPIs), towards a more holistic approach of evidencing and assessing academic achievement.

Any pay outside of this is determined by benchmarking with similar institutions across the sector and by market conditions.

Benchmarking

The UCEA Senior Staff Remuneration survey and the XpertHR Salary Survey for Higher Education Staff is used for benchmarking salary proposals at recruitment and annual performance reviews.

The annual CUC survey of ViceChancellors’ pay and conditions is academic achievement. also used when the Remuneration The Remuneration Committee receives Committee is considering the and considers detailed reports of Vice-Chancellor’s remuneration nominations proposed under the package. Retention of Exceptional Talent procedure as set out in the University’s Performance Related Pay Academic Promotion policy.

Grades 1 – 10: There are no performance related pay arrangements for colleagues on Grade 1-10 on the national pay spine, however as detailed above, the salary structure contains annual incremental progression to a maximum point within each grade.

Equality

The University is committed to equality of opportunity relating to pay, salary and career progression for all staff, within a framework which is fair, transparent and consistent, as reflected in its pay and grading structures.

Grade 10A, Grade 11 and the Senior Leadership Team: Remuneration for colleagues at Grade 10A, Grade 11 and members of the Senior Leadership Team is reviewed annually, using a fair and transparent process that reflects the performance of each individual, in the context of the University’s performance. The level of awards is decided by the Remuneration Committee, taking into account relevant market data.

The University is an equal opportunities employer and has been a Real Living Wage employer since 1st April 2019, meaning that the pay of all our colleagues, especially those on the lowest salaries, meets the basic cost of living in the UK and London as defined by the Living Wage Foundation.

The University regularly compares pay of diverse groups and monitors trends in the pay of those groups, which includes the annual reporting of the Gender Pay Gap. The University has reported a reduction in its Gender Pay Gap for six consecutive years and is committed to continuing to address this through a range of initiatives including the Aurora Leadership programme and the Athena Swan Charter. Annual reports of progress are reviewed by the Remuneration Committee on behalf of the Council of the University.

Workforce Management

The University is committed to managing the termination of employment with care and sensitivity, in line with the spirit of Swansea University Values, and in accordance with the principles set out in the University’s Redundancy Policy, Termination Policies, and Voluntary Severance Policy which are available to staff. The University aims to work in partnership with its recognised Trades Unions to manage the process for any voluntary severance schemes and recognises that a fair and reasonable severance package needs to be available to eligible employees.

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INDEPENDENT e— AUDITOR’S REPORT to the Council of Swansea University Report on the Audit of the Financial Statements Opinion Basis for opinion We have audited the financial We have been appointed as auditor statements of Swansea University (“the under the Charters and Statutes of i_ University”) for the year ended 31 July the University and in accordance 2024 which comprise the Group and with section 144 of the Charities Act Institution Statements of Comprehensive 2011 (or its predecessors) and report Income, Statements of Change in in accordance with regulations made Reserves, Statement of Financial Position, under section 154 of that Act. the going concern period. and Group Statement of Cash Flow We conducted our audit in accordance . and related notes, including the with International Standards on this work: accounting policies.

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 the University’s financial resources or ability to continue operations over the going concern period.

We conducted our audit in accordance Our conclusions based on with International Standards on this work: Auditing (UK) (“ISAs (UK)”) and • we consider that the Council’s use of applicable law. Our responsibilities are described below. We have the going concern basis of accounting in the preparation of the financial fulfilled our ethical responsibilities statements is appropriate; and under, and are independent of the Group in accordance with, UK ethical • we have not identified, and concur requirements including the FRC Ethical with the Council’s assessment that Standard. We believe that the audit there is not, a material uncertainty evidence we have obtained is a related to events or conditions that, sufficient and appropriate basis individually or collectively, may cast for our opinion. significant doubt on the Group or the University’s ability to continue as a Going concern going concern for the going The Council has prepared the financial concern period.

In our opinion the financial statements:

• have been properly prepared in University’s ability to continue as a accordance with UK accounting Going concern going concern for the going standards, including FRS 102 The Council has prepared the financial concern period. The Financial Reporting Standard statements on the going concern basis However, as we cannot predict all future applicable in the UK and Republic of as it does not intend to liquidate the Ireland, and with the 2019 Statement events or conditions and as subsequent Group or the University or to cease their of Recommended Practice events may result in outcomes that operations, and as it has concluded that are inconsistent with judgements that – Accounting for Further and the Group and the University’s financial were reasonable at the time they were Higher Education; and position means that this is realistic. It made, the above conclusions are not • have been prepared in accordance has also concluded that there are no a guarantee that the Group or the with the requirements of the Charities material uncertainties that could have University will continue in operation Act 2011. 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”).

Fraud and breaches of laws and regulations – ability to detect

Identifying and responding to risks of material misstatement due to fraud.

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:

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

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 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 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 Council and other management (as required by auditing standards) and discussed with Council 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 Medr, 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 Medr, 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.

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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 Annual 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:

Council responsibilities

As explained more fully in its statement set out on pages 76 to 77, 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 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 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

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 Statues 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 are required to report on the following matters prescribed in the Financial Management Code issued under the Higher Education (Wales) Act 2015 and the Accounts Direction to Higher Education Institutions for 2023/24 issued by Medr (“the Accounts Direction”).

The regulation of the Welsh Higher Education sector was transferred from HEFCW to Medr, the Commission for Tertiary Education and Research on 1 August 2024. The Accounts Direction, Financial Management Code and Terms and Conditions of Funding 2023/24 issued by HEFCW remain in place at we have formed. the date of our report. In view of this transfer, any reference to HEFCW in our report should be read as also referring to Medr.

Rees Batley Statutory Auditor 66 Queen Square Bristol, BS1 4BE 26 November 2024 |

In our opinion, in all material respects:

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

We have nothing to report in these respects.

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STATEMENT OF COUNCIL’S RESPONSIBILITIES

in Respect of the Annual Review and the Financial Statements

The Council is responsible for preparing the Annual Review and the financial statements in accordance with the requirements of the Terms and Conditions of Funding, and the Accounts Direction to Higher Education Institutions both issued by Medr, 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 • select suitable accounting policies parent University financial statements and then apply them consistently; in accordance with UK accounting • make judgements and estimates that standards and applicable law (UK are reasonable and prudent; Generally Accepted Accounting Practice), including FRS 102 ‘The • state whether applicable UK Financial Reporting Standard accounting standards and the applicable in the UK and Republic of Statement of Recommended Practice Ireland’, and the requirements of the have been followed, subject to any Charities Act 2011. The Terms and material departures disclosed and Conditions of Funding further require explained in the financial statements; the financial statements to be prepared • assess the Group and parent in accordance with the Statement of University’s ability to continue as Recommended Practice: Accounting a going concern, disclosing, as for Further and Higher Education and applicable, matters related to in accordance with the requirements of going concern; and Medr’s Accounts Direction to Higher Education Institutions. • use the going concern basis

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, Council is required to:

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. Council 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.

In preparing these Financial Statements, Council has taken reasonable steps to ensure that:

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 Goi Ashmore,

Chair of Council

25 November 2024

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STATEMENT OF PRINCIPAL ACCOUNTING POLICIES lm 1. General Information The University is registered as a charity. The consolidated financial statements The Financial Statements have been include the University and all its Swansea University was registered with the Higher Education Funding Council prepared in compliance with the subsidiaries for the financial year to -_—— Charities Act 2011. 31 July 2024. Intra–group transactions in Wales (HEFCW) until 31 July 2024, are eliminated on consolidation. when HEFCW ceased operating. The University is a public benefit From 1 August 2024 the University is entity and therefore has applied the The consolidated financial statements do registered with Medr, the Commission relevant public benefit requirement not include the income and expenditure for Tertiary Education and Research. of the applicable UK laws and of the Students’ Union as the University . Both HEFCW and Medr are referred to accounting standards does not exert control or dominant as appropriate throughout this document.

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.

The address of the registered office is:

3. Basis of preparation

Associates are accounted for using the equity method.

Swansea University Singleton Park Swansea, SA2 8PP

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).

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

Charity Number: 1138342

2. Statement of compliance

4. Going Concern

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 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.

In common with much of the sector, the University is having to address the financial impacts of the continuing uncertainty in the external environment, mainly in relation to government policies, increased competition for both home and overseas students and the ongoing pressure on costs.

Members of Council have a reasonable To address this risk the University They have also been prepared in expectation that the University has implemented a three-year Financial accordance with the ‘carried forward’ adequate resources to continue in Sustainability Programme in August powers and duties of previous legislation operational existence for the 2023 with a detailed plan for a total (Further and Higher Education Act 1992 foreseeable future. overall improvement in EBITDA of and the Higher Education Act 2004) £40m by 2026/27. This included and the new powers of the Higher Judgements made by management in targets for additional net income and Education and Research Act 2017 the application of these accounting non pay savings. The main focus of during the transition period to 31 July policies that have a significant effect on the plan, however, was the redesign 2019, the Royal Charter, the Accounts the financial statements and estimates of Professional Services with Directors Direction issued by Medr and the Terms with a significant risk of material taking responsibility for all staff in the and conditions of funding for higher adjustment in the next year are discussed identified functional areas. A generous education institutions issued by Medr. in accounting policy 23. Voluntary Exit Scheme (VES) has been designed to encourage and support the required reduction in staff numbers.

Good progress against this plan has been made during 2023/24 with VES savings totalling £8.5m in 2024/25 being approved.

The changes made to the immigration rules in January 2024 and the challenging economic conditions in Nigeria have affected our assumptions for the 2024/25 recruitment cycle. As a result, the University has implemented a second phase to the Financial Sustainability Programme with additional savings of £30m being required by 2027/28.

The Financial Sustainability Programme that the University started to implement in August 2023 forecast that at least one of the loan covenants associated with its borrowing from the European Investment Bank (EIB) would be breached at 31 July 2024 and at 31 July 2025.

The University has successfully renegotiated the loan covenants with EIB for a period covering year ending 31 July 2024 and year ending 31 July 2025. A temporary covenant requiring minimum cash will be tested quarterly until 31 January 2026.

The University has also secured a £25m Revolving Credit Facility (RCF) with HSBC for a period of 5 years to provide additional resilience, although the forecasts and downside scenarios indicate that this will not be required.

The University has prepared a number of downside scenarios and considered the financial impact of these on its Statements of Comprehensive Income, Financial Position, Cash Flows and on its banking covenants for the going concern period, being 12 months from the date of approval of these financial statements.

The main risk that has been tested is the reduction in home and overseas student numbers against the 2024/25 original forecasts, taking into account actual enrolments to October 2024 and anticipated enrolments in January 2025 and September 2025, based on current applications and market intelligence.

Other risks that have been considered include reductions in student related income from catering and sports

facilities, the potential for student accommodation voids, failure to deliver the required savings in the timeframe and further inflationary pressures on costs.

Members of Council have considered the underlying assumptions of the downside scenarios, the proposed mitigations, and the financial impact of these, particularly in relation to the cash position and the renegotiated loan covenants. Whilst acknowledging the scale of the challenge facing the sector and the University, the Members of Council are confident that the current University leadership can manage the risks and will have sufficient funds to meet the University’s liabilities as they fall due over the period of 12 months from the date of approval of the financial statements.

5. Exemptions under FRS102

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.

6. 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 31 July 2024.

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.

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

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

7. 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.

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Grant funding restricted reserve until such time that it is utilised in line with such restrictions Government grants including Funding at which point the income is released Council block grant and research grants from Government sources and other to general reserves through a reserve transfer. grants from non–government sources including research grants from non– Investment income and appreciation government sources are recognised of endowments is recorded in income within the Statement of Comprehensive in the year in which it arises and as Income when the University is entitled either restricted or unrestricted income to the income and performance–related according to the terms of the conditions have been met. Income restriction applied to the individual received in advance of performance– endowment fund. related conditions is deferred within Donations with no restrictions are creditors in the Statement of Financial recorded within the Statement of Performance and released to the Comprehensive Income when the Statement of Comprehensive Income in University is entitled to the income. line with such conditions being met. Donations and endowments with Commercial research contracts are 7 restrictions are classified as restricted accounted for in line with the policy reserves with additional disclosure for income from the sale of goods or provided within the notes to the services (exchange transactions) above. accounts. Other grants and donations received There are four main types of donations from non–government sources including and endowments with restrictions: research grants from non–government sources are recognised within the 1. Restricted donations – the donor has Statement of Comprehensive Income specified that the donation must be used when the University is entitled to the for a particular objective. income and the performance–related conditions have been met. Income 2. Unrestricted permanent endowments – the donor has specified that the fund is received in advance of performance– related conditions is deferred within to be permanently invested to generate creditors in the Statement of Financial an income stream for the general benefit Performance and released to the of the University. Statement of Comprehensive Income in 3. Restricted expendable endowments line with such conditions being met. – the donor has specified a particular

  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.

Capital grants

Capital grants are recognised in income when the University is entitled to the funds subject to any performance– related conditions being met. Capital Government grants for land are to be accounted for in line with the performance model as per the policy for Government Grants above. 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 | 80

  1. 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.

8. 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 1 January 2012 when new staff were invited to join NEST. The University also contributes to the NHS Pension Scheme.

USS is a Career Average Revalued Earnings Scheme. SUPS is a defined– benefit scheme, which is externally funded and contracted out of the State Second Pension. Both funds are 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. In 2024 the scheme was valued as in surplus and the liability within the financial statements removed.

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 Statement of Financial Position 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 11. Service Concession

of plan introductions, benefit changes, Arrangements curtailments, and settlements. The net Fixed assets held under service interest cost is calculated by applying the discount rate to the net liability. This cost is recognised in expenditure as a finance cost.

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

Further detail is provided on the specific pension schemes in note 31 to the accounts.

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.

9. 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 31 July is recognised as a creditor for administrative staff. There is no creditor for unused annual leave for academics as no obligation exists.

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

12. 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.

Severance payable in future periods under the voluntary exit scheme is recognised in the current year, only where there has been formal agreement and commitment to that severance, on a per-person basis by 31 July.

13. 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 Statement of Financial Position 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.

10. 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.

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14. Property, Plant and Equipment

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

Equipment

Property, plant and equipment are Equipment costing more than £25k stated at deemed cost less accumulated per individual item is capitalised in depreciation and accumulated the year of acquisition. Equipment impairment losses. purchased as part of a package or replacement programme, with the total Land and buildings package costing more than £25k is also capitalised in the year of acquisition. All Land and buildings are capitalised at other equipment is written off in the year cost on initial recognition. of acquisition, unless there is a specific After initial recognition, land and reason to capitalise.

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

16. Investments

Non–current investments are held on the Statement of Financial Position at amortised cost less impairment.

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

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

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

Land and Buildings in existence upon transition to FRS102 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.

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

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

17. Stock

Vessels

Stock is held at the lower of cost and Vessels are stated at cost and net realisable value. depreciated over their useful expected lives.

18. Cash and cash equivalents

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

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.

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

Borrowing costs

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

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

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

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, usually between 12 and 75 years.

Impairment

19. Provisions, contingent liabilities, and contingent assets

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

Provisions are recognised in the financial statements when:

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

a) The University has a present obligation (legal or constructive) as a result of a past event.

b) It is probable that an outflow of economic benefits will be required to settle the obligation, and

15. Heritage Assets

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

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.

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

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.

The University’s subsidiaries are liable The accounting for a multi–employer to Corporation Tax in the same way as scheme where the employer has entered any other commercial organisation. into an agreement with the scheme that determines how the employer will fund a deficit, results in the recognition of a 22. Reserves liability for the contributions payable that Reserves are allocated between Cas arise from the agreement (to the extent restricted and unrestricted reserves. that they relate to the deficit) with the Restricted endowment reserves include resulting expense charged through the balances which, through endowment to profit or loss account in accordance the University, are held as a permanent with section 28 of FRS 102. The restricted fund as the University must directors are satisfied that the Universities hold the fund to perpetuity. Superannuation Scheme meets the Other restricted reserves include definition of a multi–employer scheme. restricted donations through which To the extent that the Pension scheme is the donor has designated a specific in deficit, the University recognises the purpose and therefore the University is discounted fair value of the contractual restricted in the use of these funds. contributions under the recovery plan in existence. If the University is contractually bound to make deficit recovery 23. Critical accounting payments to USS, this is recognised estimates and judgements as a liability on the Statement of Significant estimates and judgements Financial Position. used in the preparation of this financial Following the latest USS triennial information were as follows: valuation, the Pension Scheme is no longer in deficit, and therefore no Retirement benefit obligations provision is recognised at 31 July. The University operates its own scheme, This position will be reassessed after Swansea University Pension Scheme each triennial valuation. Further details (SUPS), which is a defined–benefit are set out in note 31. 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.

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 Statement of Financial Position but are disclosed in the notes.

20. 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.

Pension costs under the HE SORP and FRS102 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.

21. 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.

2010) or section 256 of the Taxation FRS 102 makes the distinction between of Chargeable Gains Act 1992, to a group plan and a multi– employer the extent that such income or gains scheme. A group plan consists of a are applied to exclusively charitable collection of entities under common purposes. control typically with a sponsoring employer. A multi–employer scheme is The University receives no similar a scheme for entities not under common exemption in respect of Value Added control and represents (typically) an Tax. Irrecoverable VAT on inputs is industry–wide scheme including the included in the costs of such inputs. Any Universities Superannuation Scheme. irrecoverable VAT allocated to fixed assets is included in their cost. 83

82

CONSOLIDATED AND INSTITUTION STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED AND INSTITUTION STATEMENT OF CHANGE IN RESERVES

Year ended 31 July 2024

Year ended 31 July 2024

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CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
31 JULY 2024 31 JULY 2024 31 JULY 2023 31 JULY 2023
NOTE £000 £000 £000 £000
INCOME
Tuition fees and education contracts 1 213,306 213,306 198,881 198,881
Funding body grants 2 40,503 40,503 74,176 74,176
Research grants and contracts 3 56,852 56,852 67,098 67,098
Other income 4 62,896 62,481 66,067 65,742
Investment income 5 7,214 7,214 6,124 6,124
Donations and Endowments 6 924 924 291 291
TOTAL INCOME 381,695 381,280 412,637 412,312
EXPENDITURE
Staff costs 7 201,208 200,818 195,864 195,518
Change in expected USS contributions 7 (98,742) (98,742) (31,704) (31,704)
Restructuring costs 7 8,461 8,461 108 108
Other operating expenses 9 147,288 146,811 140,183 139,831
Depreciation and amortisation 10/11 31,784 31,779 32,636 32,629
Interest and other finance costs 8 8,780 8,763 11,604 11,605
TOTAL EXPENDITURE 9 298,779 297,890 348,691 347,987
Surplus before other gains/(losses) and share of operating
surplus/(deficit) of joint ventures and associates 82,916 83,390 63,946 64,325
OTHER GAINS AND LOSSES
Gain on disposal of tangible assets 10 445 445 226 226
Gain / (Loss) on investments 14/22 384 237 269 (1,351)
Share of operating profit / (deficit) in associate 14 29 - 77 (48)
SURPLUS AND COMPREHNSIVE INCOME
SURPLUS BEFORE TAXATION 83,774 84,072 64,518 63,152
Taxation (33) - (20) -
SURPLUS FOR THE YEAR 83,741 84,072 64,498 63,152
Other Comprehensive Income
Actuarial (loss)/gain in respect of pension schemes 31 (3,400) (3,400) 18,600 18,600
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 80,341 80,672 83,098 81,752
REPRESENTED BY:
Endowment comprehensive income for the year 22 664 664 1 1
Restricted comprehensive income for the year 23 648 648 135 135
Unrestricted comprehensive income for the year 80,034 80,365 84,501 83,155
Revaluation reserve comprehensive income for the year (1,005) (1,005) (1,539) (1,539)
80,341 80,672 83,098 81,752
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INCOME AND REVALUATION
EXPENDITURE RESERVE RESERVE TOTAL
ENDOWMENT RESTRICTED UNRESTRICTED
£000 £000 £000 £000 £000
CONSOLIDATED
AT 1 AUGUST 2022 7,307 52 113,936 42,622 163,917
Surplus from the income and expenditure statement 40 135 64,323 – 64,498
Other comprehensive income – – 18,600 – 18,600
Transfers between revaluation and income and expenditure reserve – – 1,539 (1,539) –
Release of endowment and restricted funds spent in the year (39) – 39 – –
AT 31 JULY 2023 7,308 187 198,437 41,083 247,015
AT 1 AUGUST 2023 7,308 187 198,437 41,083 247,015
Surplus from the income and expenditure statement 695 648 82,398 – 83,741
Other comprehensive income – – (3,400) – (3,400)
Transfers between revaluation and income and expenditure reserve – – 1,005 (1,005) –
Release of endowment and restricted funds spent in the year (31) – 31 – –
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 664 648 80,034 (1,005) 80,341
AT 31 JULY 2024 7,972 835 278,471 40,078 327,356
UNIVERSITY
AT 1 AUGUST 2022 7,307 52 115,065 42,622 165,046
Surplus from the income and expenditure statement 40 135 62,977 – 63,152
Other comprehensive income – – 18,600 – 18,600
Transfers between revaluation and income and expenditure reserve – – 1,539 (1,539) –
Release of endowment and restricted funds spent in the year (39) – 39 – –
AT 31 JULY 2023 7,308 187 198,220 41,083 246,798
AT 1 AUGUST 2023 7,308 187 198,220 41,083 246,798
Surplus from the income and expenditure statement 695 648 82,729 – 84,072
Other comprehensive income – – (3,400) – (3,400)
Transfers between revaluation and income and expenditure reserve – – 1,005 (1,005) –
Release of endowment and restricted funds spent in the year (31) – 31 – –
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 664 648 80,365 (1,005) 80,672
AT 31 JULY 2024 7,972 835 278,585 40,078 327,470
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All items of income and expenditure relate to continuing activities. The accompanying notes and policies on pages 88 to 113 from part of these financial statements.

84

~~8~~ 5

CONSOLIDATED AND INSTITUTION STATEMENT OF FINANCIAL POSITION

CONSOLIDATED STATEMENT OF CASH FLOWS

Year ended 31 July 2024

Year ended 31 July 2024

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CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
31 JULY 2024 31 JULY 2024 31 JULY 2023 31 JULY 2023
NOTE £000 £000 £000 £000
NON-CURRENT ASSETS
Intangible assets 11 444 444 316 316
Tangible assets 10 480,323 480,249 473,112 473,029
Heritage assets 12 1,040 1,040 1,025 1,025
Investments 14 555 – 594 –
Investments in subsidiaries 14 – 700 – 700
Investments in associates 14 154 – 125 –
482,516 482,433 475,172 475,070
CURRENT ASSETS
Stocks 15 93 – 129 16
Trade and other receivables 17 41,452 41,421 53,763 53,920
Investments 16 5,364 5,364 54,941 54,941
Cash and cash equivalents 120,756 120,580 123,403 123,187
167,665 167,365 232,236 232,064
CURRENT LIABILITIES
Less creditors falling due within one year 18 (100,621) (100,124) (134,132) (134,075)
NET CURRENT ASSETS 67,044 67,241 98,104 97,989
TOTAL ASSETS LESS CURRENT LIABILITIES 549,560 549,674 573,276 573,059
Creditors: amounts falling due after more than one year 19 (203,204) (203,204) (209,420) (209,420)
PROVISIONS
Pension provision 21 (19,000) (19,000) (116,841) (116,841)
TOTAL NET ASSETS 327,356 327,470 247,015 246,798
RESTRICTED RESERVES
Income and expenditure reserve – endowment reserve 22 7,972 7,972 7,308 7,308
Income and expenditure reserve – restricted reserve 23 835 835 187 187
UNRESTRICTED RESERVES
Income and expenditure reserve – unrestricted 278,471 278,585 198,437 198,220
Revaluation reserve 40,078 40,078 41,083 41,083
TOTAL RESERVES 327,356 327,470 247,015 246,798
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The accompanying notes and policies form part of these financial statements. The financial statements were approved by Council on 25 November 2024 and were signed on its behalf on that date by:

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31 JULY 2024 31 JULY 2023
NOTE £000 £000
CASH FLOW FROM OPERATING ACTIVITIES
Surplus for the year before taxation 83,774 64,518
ADJUSTMENT FOR NON-CASH ITEMS
Depreciation 10 31,663 32,556
Amortisation of intangibles 11 121 80
(Loss) on Investments (384) (269)
Decrease/(increase) in stock 36 (24)
Decrease in debtors 9,004 1,705
(Decrease)/increase in creditors (34,180) 22,914
(Decrease) in pension provisions (101,241) (35,423)
Share of operating deficit in associate (29) (77)
ADJUSTMENT FOR INVESTING OR FINANCING ACTIVITIES
Investment income (7,214) (6,124)
Capital grant income (5,327) (35,942)
Interest payable 5,701 5,933
Endowment Income (85) (9)
Gain on the sale of tangible assets (445) (226)
CASH FLOWS FROM OPERATING ACTIVITIES (18,606) 49,612
Taxation (33) (20)
NET CASH (OUTFLOW) / INFLOW FROM OPERATING ACTIVITES (18,639) 49,592
CASH FLOWS FROM INVESTING ACTIVITIES
Capital grant receipts 7,115 8,122
Proceeds from sales of tangible assets 445 901
Payments made to acquire tangible assets (32,044) (38,309)
Payments made to acquire intangible assets (249) (396)
Decrease / (increase) in deposits 50,000 (50,000)
Investment income 8,732 4,606
33,999 (75,076)
CASH FLOWS FROM FINANCING ACTIVITES
Interest paid (2,820) (2,961)
Interest element of finance lease and service concession arrangements (2,881) (2,972)
Capital element of finance lease and service concession arrangements (6,584) (6,495)
New endowments 85 9
New unsecured loans – 2,300
Repayment of amounts borrowed (6,077) (5,817)
(18,277) (15,936)
DECREASE IN CASH AND CASH EQUIVALENTS IN THE YEAR (2,917) (41,420)
Cash and cash equivalents at beginning of the year 123,275 164,695
Cash and cash equivalents at end of the year 120,358 123,275
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Mr Goi Ashmore (Chair of Council)

Professor P Boyle (Vice-Chancellor)

86

87

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 July 2024

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CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
2024 2024 2023 2023
£000 £000 £000 £000
1. TUITION FEES AND EDUCATION CONTRACTS
Full-time home and EU students 112,721 112,721 120,329 120,329
Full-time international students 82,580 82,580 59,280 59,280
Part-time students 3,536 3,536 4,582 4,582
Educational contracts with the NHS and HEIW 14,389 14,389 14,602 14,602
Non-accredited course fees 80 80 88 88
213,306 213,306 198,881 198,881
----- End of picture text -----

To generate the full-time home and EU tuition fee the University has spent £4,016k (2023: £4,000k) in relation to bursaries in accordance with the fee plan.

CONSOLIDATED
2024
£000		 UNIVERSITY
2024
£000		 CONSOLIDATED
2023
£000		 UNIVERSITY
2023
£000
2. FUNDING BODY GRANTS
RECURRENT GRANTS 10,222
18,376
3,371
HEFCW Teaching grants 10,222 9,563 9,563
HEFCW Research grants 18,376 19,328 19,328
HERC Capital grant 3,371 2,021 2,021
SPECIFIC GRANTS RECEIVED IN YEAR
Student Wellbeing & Health		 31,969
1,204		 31,969
1,204
2,631
1,516
1,709
1,474		 30,912
1,250		 30,912
1,250
Research & Innovation 2,631 5,929 5,929
Welsh Language 1,516 1,423 1,423
Other 1,709 741 741
Capital 1,474 33,921 33,921
8,534 8,534 43,264 43,264
40,503 40,503 74,176 74,176

Income from capital grants relates to £3,296k in respect of buildings (2023: £35,076k) and £1,549k in respect of equipment (2023: £866k).

CONSOLIDATED
2024
£000		 UNIVERSITY
2024
£000		 CONSOLIDATED
2023
£000		 UNIVERSITY
2023
£000
3. RESEARCH GRANTS AND CONTRACTS
Research Councils 25,656 25,656
4,023
3,022
20,358
3,793		 20,713 20,713
UK-based charities 4,023 3,563 3,563
UK industry and commerce 3,022 3,060 3,060
Government (UK and overseas) 20,358 36,625 36,625
Other 3,793 3,137 3,137
56,852 56,852 67,098 67,098

Included within Government (UK and overseas) above is £482k, being the receipt of capital grants in the year (2023: £400k).

CONSOLIDATED
2024
£000		 UNIVERSITY
2024
£000		 CONSOLIDATED
2023
£000		 UNIVERSITY
2023
£000
4. OTHER INCOME
Residences, catering and conferences 25,192 25,192
2,095
9,466
15,962
7,632
2,134		 26,252 26,252
Other services rendered 2,095 2,709 2,709
Income from service concession agreements 9,466 9,466 9,466
Other income 16,377 20,554 20,229
NHS income in respect of the College of Medicine 7,632 5,055 5,055
Research Council full-time Doctoral/Collaborative Training Award 2,134 2,031 2,031
62,896 62,481 66,067 65,742

Included within other income is income from collaborations of £5,559k (2023: £6,900k), estates income of £2,050k (2023: £1,300k), and £1,096k sports centre income (2023: £900k).

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CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
2024 2024 2023 2023
£000 £000 £000 £000
5. INVESTMENT INCOME
Investment income on endowments 224 224 145 145
Other Investment Income 6,990 6,990 5,979 5,979
7,214 7,214 6,124 6,124
CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
2024 2024 2023 2023
£000 £000 £000 £000
6. DONATIONS AND ENDOWMENTS
New endowments 85 85 9 9
Donations with restrictions 728 728 196 196
Unrestricted donations 111 111 86 86
924 924 291 291
CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
2024 2024 2023 2023
£000 £000 £000 £000
7. STAFF COSTS
The staff costs for the financial year were:
Salaries 163,271 162,881 157,678 157,332
Social security costs 16,700 16,700 15,852 15,852
Other pension costs 21,237 21,237 22,334 22,334
TOTAL STAFF COSTS 201,208 200,818 195,864 195,518
CHANGE IN EXPECTED USS CONTRIBUTIONS (98,742) (98,742) (31,704) (31,704)
RESTRUCTURING COSTS 8,461 8,461 108 108
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During the year 2023/24, the University launched a new Voluntary Exit Scheme (VES) available to all staff, where enhanced compensation payments were made to employees wishing to leave the University voluntarily. The cost of £8,461k (2023: £108k) include all staff accepted on the VES scheme at 31 July 2024 and approved by the Registrar & Chief Operating Officer, Chief Financial Officer, Executive Deans, Director of Human Resources and Head of Legal Services.

A further breakdown of pension costs has been included in Note 31, Pensions Schemes.

88

~~8~~ 9

NOTES TO THE FINANCIAL STATEMENTS – ( Year ended 31 July 2024)

2024 2023 £000 £000

HIGHER PAID STAFF

TOTAL REMUNERATION OF THE VICE-CHANCELLOR

TOTAL REMUNERATION OF THE VICE-CHANCELLOR 2024
£000		 2023
£000
Basic salary 335
18
9
14		 323
16
20
–
Accommodation allowance
Employer pension contributions
Other taxable payments
376 359

Other taxable payments relates to legal costs.

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 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 and refers to sector benchmarking information provided from the UCEA Senior Salary Survey. The Remuneration Committee ensures that it complies with the requirements of the Committee of University Chairs (CUC) Higher Education Senior Staff Remuneration Code.

In light of the proposed cost savings to improve the financial sustainability of the University the Remuneration Committee approved a recommendation from the Senior Leadership Team that the Remuneration cycle for 2023 for Grade 10A colleagues, Grade 11 colleagues, Senior Leadership Team and the Vice Chancellor would not take place.

In previous years, however, the Committee has approved an approach for remuneration for members of the Senior Leadership Team (including the Vice-Chancellor), which took account of the following:

i. University Professorial Performance Curves;

ii. Detailed performance and remuneration recommendations.

Factors considered as part of previous performance reward proposals have included:

a) performance in support of the institution’s strategic objectives in areas such as Research; Teaching; Innovation and Engagement; Leadership and Management; Partnerships and external relations internationally, nationally and locally; and Major initiatives and projects;

b) the size and complexity of the institution;

c) the nature of the HE markets and issues of recruitment and retention;

d) the institution’s objectives in relation to the diversity of the workforce; and

Data to support these indicators was drawn from:

a) the Universities and Colleges Employer Association’s Senior Staff Remuneration Survey;

b) analysis of salary distributions.

Recognising 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 its Vice-Chancellor role. This also recognises the number of University staff and students, and the diverse and complex nature of the organisation.

The Remuneration Committee is responsible for reviewing and determining all aspects of the remuneration, benefits and conditions of employment of the Vice-Chancellor, taking account of the breadth of leadership and financial responsibilities, and delivery against the University’s strategic objectives. The Vice-Chancellor is not in attendance for, and does not play a part in, the discussions and decisions of his own remuneration.

In considering the Vice-Chancellor’s remuneration package, the Remuneration Committee considers the 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 internal benchmark data and salary benchmarking information with comparator universities.

Further information can be obtained from the Remuneration Statement 2024.

www.swansea.ac.uk/about-us/university-governance/corporate-information/remuneration-at-swansea-university

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 2024 there were 65 higher paid members of staff (2023: 60)

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----- Start of picture text -----
CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
2024 2024 2023 2023
NUMBER NUMBER NUMBER NUMBER
£100,000 – £104,999 8 8 8 8
£105,000 – £109,999 9 9 5 5
£110,000 – £114,999 3 3 7 7
£115,000 – £119,999 10 10 6 6
£120,000 – £124,999 5 5 8 8
£125,000 – £129,999 4 4 5 5
£130,000 – £134,999 4 4 5 5
£135,000 – £139,999 5 5 1 1
£140,000 – £144,999 3 3 1 1
£145,000 – £149,999 1 1 – –
£150,000 – £154,999 – – – –
£155,000 – £159,999 2 2 3 3
£160,000 – £164,999 2 2 – –
£165,000 – £169,999 1 1 1 1
£170,000 – £174,999 1 1 3 3
£175,000 – £179,999 2 2 2 2
£180,000 – £184,999 1 1 – –
£185,000 – £189,999 – – 1 1
£190,000 – £194,999 1 1 2 2
£195,000 – £199,999 – – 1 1
£200,000 – £204,999 – – – –
£205,000 – £209,999 1 1 – –
£210,000 – £214,999 – – – –
£215,000 – £219,999 – – – –
£220,000 – £224,999 – – – –
£225,000 – £229,999 1 1 1 1
£230,000 – £234,999 1 1 – –
2024 2023
COMPENSATION FOR LOSS OF OFFICE PAYABLE TO HIGHER PAID STAFF: £000 £000
Compensation and severence paid to University higher paid staff 172 86
Number of University higherpaid staff who received compensation or severence 1 1
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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 9.4 times the median pay of staff (2023: 9.2 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 9.9 times the median total remuneration of staff (2023: 9.9 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.

90

~~9~~ 1

NOTES TO THE FINANCIAL STATEMENTS – ( Year ended 31 July 2024)

NOTES TO THE FINANCIAL STATEMENTS – ( Year ended 31 July 2024)

AVERAGE NUMBER OF STAFF (INCLUDING SENIOR POST HOLDERS) EMPLOYED BY THE UNIVERSITY

The average number of staff employed by the University during the year expressed as FTE (full-time equivalents):

Academic 2024
Number (FTE)
1,197
398
1,049
191
826		 2023
Number (FTE)
1,135
Research 481
Management and specialist 1,071
Technical 184
Other 843
3,661 3,714

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 & Chief Operating Officer, three Pro-Vice-Chancellors, three Exectuive Deans and the Chief Financial Officer.

2024
£000		 2023
£000
Key Management Personnel 1,717 2,046

During January 2024 Professor Ryan Murphy was appointed permanent Pro-Vice Chancellor / Executive Dean for the Faculty of Humanities and Social Sciences after acting as interim since May 2023. During the year the number of Key Management Personnel increased from 8 to 9.

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----- Start of picture text -----
CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
2024 2024 2023 2023
NOTE £000 £000 £000 £000
8. INTEREST AND OTHER FINANCE COSTS
Loan interest 2,820 2,803 2,961 2,962
Finance leases including service concession arrangements 2,881 2,881 2,972 2,972
Unwinding of USS discount factor 2,279 2,279 4,471 4,471
Net pension interest cost 31 800 800 1,200 1,200
8,780 8,763 11,604 11,605
CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
2024 2024 2023 2023
£000 £000 £000 £000
9. ANALYSIS OF EXPENDITURE BY ACTIVITY
Academic departments 142,133 142,133 140,631 140,630
Academic services 38,097 38,097 35,088 35,087
Research grants and contracts 49,919 49,919 60,369 60,368
Residences, catering and conferences 28,369 28,369 25,093 25,094
Premises 48,674 48,674 40,920 40,920
Professional services 68,208 68,208 64,068 64,068
USS fund adjustments (99,641) (99,642) (34,622) (34,622)
Other 23,022 22,132 17,145 16,442
TOTAL EXPENDITURE 298,781 297,890 348,691 347,987
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----- Start of picture text -----
2024 2023
£000 £000
OTHER EXPENDITURE ABOVE INCLUDES:
Service concession arrangments 9,944 10,034
Restructuring costs 8,461 108
----- End of picture text -----

During the year the University incurred restructuring costs of £8,461k (2023: £108k) due to the launch of a new Voluntary Exit Scheme (VES) available to all staff, where enhanced compensation payments were made to employees wishing to leave the University voluntarily.

==> picture [534 x 476] intentionally omitted <==

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CONSOLIDATED CONSOLIDATED
2024 2023
£000 £000
OTHER OPERATING EXPENSES AS PER THE STATEMENT OF COMPREHENSIVE INCOME
Non-capitalised equipment 12,241 14,913
Consumables 5,127 6,960
Rent, Rates and leases 24,604 21,523
Repairs, refurbishment, maintenance and building costs 10,548 9,693
Heat, light, power and water 13,595 10,115
Scholarships, bursaries, prizes and fee contributions 20,702 19,772
Books, publications, periodicals & library services 3,962 4,357
Student Recruitment and advertising 12,438 9,496
Consultancy, Professional Services & agency 22,306 22,938
Travel and conference costs 6,815 7,296
Employee related expenditure 3,647 4,441
Subscriptions and contributions 3,242 2,442
Office expenses 1,271 1,543
Catering 1,520 1,343
Other expenses 5,270 3,351
147,288 140,183
CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
2024 2024 2023 2023
£000 £000 £000 £000
EXTERNAL AUDITORS REMUNERATION
Audit of the University and its subsidiaries 170 137 158 126
Audit related assurance services 21 21 15 15
Taxation compliance services 14 – 15 –
Taxation advisory services 168 168 21 21
NON-AUDIT SERVICES 203 189 51 36
----- End of picture text -----

92

~~9~~ 3

NOTES TO THE FINANCIAL STATEMENTS – ( Year ended 31 July 2024)

NOTES TO THE FINANCIAL STATEMENTS – ( Year ended 31 July 2024)

NON-CURRENT ASSETS – FIXED ASSETS – UNIVERSITY

10. NON-CURRENT ASSETS – FIXED ASSETS – CONSOLIDATED

Freehold land
and buildings
£000
COST
At 1 August 2023
425,579
Additions
4,011
Transfers
17,483
Impairment
–
Disposals
–
At 31 July 2024
447,073
CONSISTING OF VALUATION AS AT:
31 July 2014
40,078
Cost
406,995
447,073
ACCUMULATED DEPRECIATION
At 1 August 2023
88,844
Charge for year
14,356
Disposals
–
At 31 July 2024
103,200
CARRYING AMOUNT
At 31 July 2024
343,873
At 1 August 2023
336,735		 Freehold land
and buildings
£000
425,579
4,011
17,483
–
–		 Service
concession
arrangements
£000
164,474
6,848
–
–
–		 Fixtures,
fttings and
equipment
£000
79,301
2,607
1,629
(2)
(21,264)		 Vessels
£000
1,566
–
–
–
–		 Assets in the
course of
construction
£000
11,103
25,411
(19,112)
–
–		 Heritage
assets
£000
1,025
15
–
–
–		 Total
£000
683,048
38,892
–
(2)
(21,264)
447,073 171,322 62,271 1,566 17,402 1,040 700,674
–
171,322		 –
62,271		 –
1,566		 –
17,402		 –
1,040		 40,078
660,596
447,073 171,322 62,271 1,566 17,402 1,040 700,674
59,911
7,063
–		 59,895
10,182
(21,264)		 261
63
–		 –
–
–		 –
–
–		 208,911
31,664
(21,264)
103,200 66,974 48,813 324 – – 219,311
343,873 104,348 13,458 1,242 17,402 1,040 481,363
336,735 104,563 19,406 1,305 11,103 1,025 474,137
Freehold land
and buildings
£000
COST
At 1 August 2023
425,579
Additions
4,011
Transfers
17,483
Disposals
–
At 31 July 2024
447,073
CONSISTING OF VALUATION AS AT:
31 July 2014
40,078
Cost
406,995
447,073
ACCUMULATED DEPRECIATION
At 1 August 2023
88,844
Charge for year
14,356
Disposals
–
At 31 July 2024
103,200
CARRYING AMOUNT
At 31 July 2024
343,873
At 1 August 2023
336,735		 Freehold land
and buildings
£000
425,579
4,011
17,483
–		 Service
concession
arrangements
£000
164,474
6,848
–
–		 Fixtures,
fttings and
equipment
£000
78,061
2,607
1,629
(21,264)		 Vessels
£000
1,566
–
–
–		 Assets in the
course of
construction
£000
11,103
25,411
(19,112)		 Heritage
assets
£000
1,025
15
–
–		 Total
£000
681,808
38,892
–
(21,264)
447,073 171,322 61,033 1,566 17,402 1,040 699,436
AS AT:
40,078
406,995		 –
171,322		 –
61,033		 –
1,566		 –
17,402		 –
1,040		 40,078
659,358
447,073 171,322 61,033 1,566 17,402 1,040 699,436
59,911
7,063
–		 58,738
10,175
(21,264)		 261
63
–		 –
–
–		 –
–
–		 207,754
31,657
(21,264)
103,200 66,974 47,649 324 – – 218,147
343,873 104,348 13,384 1,242 17,402 1,040 481,289
336,735 104,563 19,323 1,305 11,103 1,025 474,054

A full valuation of the University’s land and property was carried out on 31 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 31 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 31 July 2024, freehold land and buildings included £16.5 million (2023: £16.5 million) in respect of freehold land which is not depreciated.

Following review of tangible assets, no impairment was considered necessary in 2024 (2023: £0).

94

~~9~~ 5

NOTES TO THE FINANCIAL STATEMENTS – ( Year ended 31 July 2024)

NOTES TO THE FINANCIAL STATEMENTS – ( Year ended 31 July 2024)

11. INTANGIBLE ASSETS

FUTURE COMMITMENTS

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

11. INTANGIBLE ASSETS
Consolidated and University
COST
As at 1 August 2023		 SOFTWARE
£000
240		 ASSETS UNDER DEVELOPMENT
£000
156		 TOTAL
£000
396
Additions 124 125 249
As at 31 July 2024 364 281 645
AMORTISATION
As at 1 August 2023		 80 – 80
Charge for the year 121 – 121
As at 31 July 2024 201 – 201
NET BOOK VALUE
As at 31 July 2024		 163 281 –
444
As at 31 July 2023 160 156 316
£’000
Liability repayments		 PAYABLE IN
1 YEAR
6,679		 PAYABLE IN
2-5 YEARS
17,468		 PAYABLE IN
>5 YEARS
92,078		 TOTAL
116,225
Finance charge 2,787 10,123 32,736 45,646
9,466 27,591 124,814 161,871

Prior to conversion of the Financial Statements to reflect FRS102, 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:

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

The software additions in the year relate to the University’s “Service Now” Platform. Software is amortised on a straight line basis over its useful economic life. The assets under development additions relate to the design and implementation of a software platform to support network developments. Assets under development are not amortised.

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.

12. 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 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.

BAY RESIDENCES – PHASE 1B

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 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.

13. SERVICE CONCESSION ARRANGEMENTS

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

MOVEMENT IN SERVICE CONCESSION ARRANGEMENT ASSETS

The asset value of the service concession included in the Statement of Financial Position as at 31 July 2024 is £104,348k (1 August 2023 £104,563k).

The reduction of £215k is as a result of £7,063K of depreciation charged in the year, less the addition of £6,848K (note 10). The addition in 2023/24 is higher than in previous years (2023: £3,424k). Under the Bay Campus Residential contracts, the University is required to nominate the rooms in full should it provide other accommodation within the local area, for the duration of the additional residential contracts. These contracts cover two academic years to 2025/26, requiring a two year additional guarantee.

MOVEMENT IN SERVICE CONCESSION ARRANGEMENT LIABILITIES

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.

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.

The total liabilities relating to service concession arrangements included in the Statement of Financial Position as at 31 July 2024 were £116,225k (1 August 2023 £115,961k). Liabilities increased by a total of £264k during the year. The annual write off of the lease reduced the liability by £6,584k with the two-year occupancy guarantee addition increasing the liability by £6,848K,

96

~~9~~ 7

NOTES TO THE FINANCIAL STATEMENTS – ( Year ended 31 July 2024)

NOTES TO THE FINANCIAL STATEMENTS – ( Year ended 31 July 2024)

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:

CONSOLIDATED
2024
£000		 UNIVERSITY
2024
£000		 CONSOLIDATED
2023
£000		 UNIVERSITY
2023
£000
14. NON-CURRENT INVESTMENTS
Investment in associates 154 – 125 –
Investment in subsidiaries – 700 – 700
Other investments 555 – 594 –
709 700 719 700

INVESTMENT IN ASSOCIATE

The Institution holds the following 50% investments in both Swan Global Education LLP (2023: 50%) and Wales National Pool Swansea (2023: 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.

in the consolidated fnancial statements.
At 1 August 2023 CONSOLIDATED
2024
£000
125		 UNIVERSITY
2024
£000
–		 CONSOLIDATED
2023
£000
48		 UNIVERSITY
2023
£000
48
Share loss / (proft) retained by associate 29 – 77 (48)
AT 31 JULY 2024 154 – 125 –
INVESTMENT IN SUBSIDIARY
At 1 August 2023		 CONSOLIDATED
2024
£000
–		 UNIVERSITY
2024
£000
700		 CONSOLIDATED
2023
£000
–		 UNIVERSITY
2023
£000
1,929
Additions – 186 – 35
Impairment – (186) – (1,264)
AT 31 JULY 2024 – 700 – 700

The £186k investment and impairment relates to the 100% owned subsidiary entity Swansea Materials Research & Testing Ltd.

OTHER INVESTMENTS
At 1 August 2023		 CONSOLIDATED
2024
£000
594		 UNIVERSITY
2024
£000
–		 CONSOLIDATED
2023
£000
238		 UNIVERSITY
2023
£000
–
Impairment/Reversals (44) – 54 –
Revaluations 5 – 302 –
AT 31 JULY 2024 555 – 594 –
OTHER INVESTMENTS CONSIST OF:
At fair value:
Market securities		 102 – 207 –
At cost less impairment:
Group investments in spin outs 453 – 387 –
555 – 594 –

==> picture [517 x 506] intentionally omitted <==

----- 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%
Villa House 7 Herbert Terrace Manufacture of electronic
Trameto Ltd Penarth CF64 2AH components Ordinary shares 23%
Other research and experimental
ProGnomics Ltd Azets, SA7 9FS development on natural sciences Ordinary shares 20%
and engineering
Other research and
Semitechnologies Ltd Azets, SA7 9FS experimental development on natural sciences and Ordinary shares 20%
engineering
Bay Campus Swansea University, SA2 8PP Dormant Partner 50%
Developments LLP
Wales National Pool SA2
WNPS 8QG Operation of sports facilities Guarantee 50%
The Lambourn Wyndyke
Swan Global Education Furlong Abingdon Educational Partner 50%
Oxfordshire OX14 1UJ
Other research and
Swansea Materials Research and Testing Swansea University, SA2 8PP experimental development on natural sciences Ordinary shares 100%
and engineering
Management consultancy
Swansea Innovations Swansea University, SA2 8PP activities other than financial Ordinary shares 100%
management
SU Developments Swansea University, SA2 8PP Dormant Ordinary shares 100%
SU Pathway College Ltd Swansea University, SA2 8PP 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.

98

~~9~~ 9

NOTES TO THE FINANCIAL STATEMENTS – ( Year ended 31 July 2024)

NOTES TO THE FINANCIAL STATEMENTS – ( Year ended 31 July 2024)

==> picture [534 x 236] intentionally omitted <==

----- Start of picture text -----
CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
2024 2024 2023 2023
£000 £000 £000 £000
15. STOCK
General consumables 32 – 37 16
Work in progress 61 – 92 –
93 – 129 16
CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
2024 2024 2023 2023
£000 £000 £000 £000
16. CURRENT INVESTMENTS
Short-term investments in shares 1,925 1,925 1,822 1,822
Short-term bonds 3,183 3,183 2,659 2,659
Other short-term investments 203 203 223 223
Short-term deposits 53 53 50,237 50,237
5,364 5,364 54,941 54,941
----- End of picture text -----

The decrease in fair value of short-term deposits in the year was £49,578k (2023: increase of £49,912k). This decrease is due to the release of two large deposits held with Lloyds (£25,000k) and Barclays (£25,000k).

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

At 31 July 2024, the weighted average interest rate of these fixed deposits was 1.6% (2023: 1.5%). The fair value of these deposits was not materially different from their book value.

was not materially different from their book value.
CONSOLIDATED
2024
£000		 UNIVERSITY
2024
£000		 CONSOLIDATE
2023
£000		 UNIVERSITY
2023
£000
17. TRADE AND OTHER RECEIVABLES
Amounts falling due within one year:
Net trade debtors		 8,829 8,727 9,795 9,766
Research grant claims receivable 3,239 3,239 7,666 7,666
Accrued income – Research grants 12,534 12,534 19,107 19,107
Prepayments and accrued income 16,850 16,911 17,195 17,362
Amounts due from group undertakings – 10 – 19
41,452 41,421 53,763 53,920

Included within research grant claims receivable is £211k (2023: £2,828k) of retentions which are receivable between 1st August 2024 and 31 July 2025.

and 31 July 2025.
CONSOLIDATED
2024
£000		 UNIVERSITY
2024
£000		 CONSOLIDATED
2023
£000		 UNIVERSITY
2023
£000
18. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank overdraft 398 – 128 –
Unsecured loans 6,340 6,340 6,077 6,077
Service concession arrangements 6,679 6,679 6,584 6,584
Trade payables 7,166 7,166 19,554 19,590
Social security and other taxation payable 4,790 4,783 5,008 5,001
Accruals and deferred income 75,248 74,997 96,781 96,666
Amounts due to group undertakings – 159 – 157
100,621 100,124 134,132 134,075

ACCRUALS AND DEFERRED INCOME

Included with accruals and deferred income are the following items which have been deferred:

==> picture [534 x 578] intentionally omitted <==

----- Start of picture text -----
CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
2024 2024 2023 2023
£000 £000 £000 £000
Research grants received in advance 23,743 23,743 29,001 29,001
Funding Council grants received in advance 1,578 1,578 3,121 3,121
Other accruals and deferred income 49,927 49,676 64,659 64,544
75,248 74,997 96,781 96,666
CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
2024 2024 2023 2023
£000 £000 £000 £000
19. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Service concession arrangements 109,546 109,546 109,377 109,377
Income in advance 1,635 1,635 1,679 1,679
Unsecured loans 92,023 92,023 98,364 98,364
CREDITORS DUE AFTER MORE THAN ONE YEAR 203,204 203,204 209,420 209,420
CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
2024 2024 2023 2023
£000 £000 £000 £000
20. ANALYSIS OF UNSECURED LOANS
Due within one year or on demand 6,340 6,340 6,077 6,077
Due within one and two years 6,454 6,454 6,340 6,340
Due within two and five years 20,089 20,089 19,723 19,723
Due in five years or more 65,480 65,480 72,301 72,301
TOTAL UNSECURED LOANS REPAYABLE BY 2044 98,363 98,363 104,441 104,441
Included in the loans are the following:
AMOUNT INTEREST
LENDER £000 RATE TERM BORROWER
European Investment Bank 7,500 Fixed 2.576% June 2033 University
European Investment Bank 8,333 Fixed 2.423% January 2034 University
European Investment Bank 6,869 Fixed 3.843% August 2034 University
European Investment Bank 6,893 Fixed 3.964% January 2035 University
European Investment Bank 7,417 Fixed 4.132% August 2035 University
European Investment Bank 53,932 Fixed 2.698% April 2044 University
Sure Loan 5,150 Fixed 0.550% March 2031 University
Salix 2,269 Fixed 0% April 2031 University
TOTAL 98,363
----- End of picture text -----

The University renegotiated the EIB covenants in July 2024 following a forecast breach to the covenants. As part of the renegotiation of the covenants, the interest rate on the first five loan tranches increased by 0.3%, with the sixth tranche increasing by 0.24%.

100

101

NOTES TO THE FINANCIAL STATEMENTS – ( Year ended 31 July 2024)

NOTES TO THE FINANCIAL STATEMENTS – ( Year ended 31 July 2024)

OBLIGATION
TO FUND
DEFICIT ON USS
£000		 SUPS PENSION
SCHEME
PROVISION
£000		 TOTAL PENSION
PROVISIONS
£000
21. PROVISIONS FOR LIABILITIES
CONSOLIDATED AND UNIVERSITY
AT 1 AUGUST 2023		 99,641
(3,179)
(96,462)		 17,200
(1,600)
3,400		 116,841
Utilised in year (4,779)
Additions / (reductions) (93,062)
AT 31 JULY 2024 – 19,000 19,000

No USS deficit recovery plan was required under the 2023 valuation becuase the scheme was in surplus on a technical provision basis. The institution was no longer required to make deficit recovery contributions from 1 January 2024 and accordingly released the outstanding provision to the profit and loss account.

See note 31 for further information on the SUPS and USS pension scheme.

22. ENDOWMENT FUNDS

Restricted net assets relating to endowments are as follows:

==> picture [533 x 429] intentionally omitted <==

----- Start of picture text -----
Restricted Unrestricted
permanent permanent Expendable
endowments endowments endowments 2024 Total 2023 Total
BALANCES
£000 £000 £000 £000 £000
AT 1 AUGUST 2023
Capital 4,063 1,637 685 6,385 6,463
Accumulated income 805 62 56 923 844
4,868 1,699 741 7,308 7,307
New donations and endowments 85 – – 85 9
Investment income 154 – 33 187 118
Expenditure (10) – (21) (31) (39)
Increase/(decrease) in market value of investments 263 154 6 423 (87)
AT 31 JULY 2024 5,360 1,853 759 7,972 7,308
Represented by:
Capital 4,411 1,791 691 6,893 6,385
Accumulated income 949 62 68 1,079 923
5,360 1,853 759 7,972 7,308
ANALYSIS BY TYPE OF PURPOSE
Lectureships 24 21
Scholarships and bursaries 3,453 3,095
Research support 331 299
Prize funds 951 875
General 3,213 3,018
7,972 7,308
ANALYSIS BY ASSET
Current asset investments 5,364 4,941
Bank Balance – University 2,608 2,367
7,972 7,308
----- End of picture text -----

The institution has the following individually material endowments:

The University holds over 175 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 £2.1m 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.

==> picture [534 x 380] intentionally omitted <==

----- Start of picture text -----
Donations 2024 Total 2023 Total
£000 £000 £000
23. RESTRICTED RESERVES
Reserves with restrictions are as follows:
CONSOLIDATED AND INSTITUTION
BALANCES
AT 1 AUGUST 2023 187 187 52
New restricted donations 728 728 196
Expenditure (80) (80) (62)
AT 31 JULY 2024 835 835 187
ANALYSIS OF OTHER RESTRICTED FUNDS / DONATIONS BY TYPE OF PURPOSE:
Scholarships 202 60
Hardship 90 59
Campus and sports facilities 2 1
General 541 67
835 187
At 1 August 2023 Cash Flows At 31 July 2024
£000 £000 £000
24. CASH AND CASH EQUIVALENTS
CONSOLIDATED
Cash and Cash equivalents 123,531 (2,377) 121,154
Bank overdraft (128) (270) (398)
123,403 (2,647) 120,756
----- End of picture text -----

102

103

NOTES TO THE FINANCIAL STATEMENTS – ( Year ended 31 July 2024)

NOTES TO THE FINANCIAL STATEMENTS – ( Year ended 31 July 2024)

CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY 2024 2024 2023 2023 £000 £000 £000 £000

2024 £000

==> picture [535 x 694] intentionally omitted <==

----- Start of picture text -----
25. CONSOLIDATED RECONCILIATION OF NET DEBT
NET DEBT 1 AUGUST 2023 96,999
Movement in cash and cash equivalents (2,377)
Other non-cash changes (790)
NET DEBT 31 JULY 2024 93,832
CHANGE IN NET DEBT (3,167)
2024 2023
ANALYSIS OF NET DEBT: £000 £000
CASH AND CASH EQUIVALENTS 121,154 123,531
BORROWINGS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Unsecured loans 6,340 6,077
Bank overdraft 398 128
Service concession arrangements 6,679 6,584
13,417 12,789
BORROWINGS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Service concession liabilities due after one year 109,546 109,377
Unsecured loans 92,023 98,364
201,569 207,741
NET DEBT 93,832 96,999
CONSOLIDATED UNIVERSITY CONSOLIDATED UNIVERSITY
2024 2024 2023 2023
NOTE £000 £000 £000 £000
26. FINANCIAL INSTRUMENTS
FINANCIAL ASSETS
Financial assets at fair value through Statement of Comprehensive Income 102 – 207 –
Financial assets that are equity instruments measured at cost less impairment
Other investments 453 – 387 –
14 555 – 594 –
Financial assets that are debt instruments measured at amortised cost
Cash and cash equivalents 120,756 120,580 123,403 123,187
Other investments 16 5,364 5,364 54,941 54,941
Trade receivables 17 13,616 13,514 12,330 12,301
Other receivables 17 3,239 3,239 7,666 7,666
142,975 142,697 198,340 198,095
FINANCIAL LIABILITIES
Financial liabilities measured at amortised cost
Bank overdrafts 18 398 – 128 –
Loans 20 98,363 98,363 104,441 104,441
Service concessions 17/18 116,225 116,225 115,961 115,961
Trade Creditors 18 7,166 7,166 19,554 19,590
222,152 221,754 240,084 239,992
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27. CAPITAL AND OTHER COMMITMENTS

A provision has not been made for the following capital commitments at 31 July 2024:

Capital commitments
4,144
4,144
16,985
16,985
4,144
4,144
16,985
16,985

The significant decrease in capital commitments has resulted from the work completed on the digital foundations project which commenced during 2023 £2,704k (2023: £13,463k).

Commitments relating to buildings decreased to £1,440k (2023: £3,522k), with the only significant buildings capital commitment totalling £464k for works on the City Deal Project at Sketty Lane.

28. 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 & 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 for a period of twelve months from the date of approval of these financial statements.

of these fnancial statements.
2024
Land and
Buildings
£000		 2023
Land and
Buildings
£000
29. LEASE OBLIGATIONS
Total rentals payable under operating leases:
PAYABLE DURING THE YEAR		 974
984
2,588
4,095		 1,282
Future minimum lease payments due:
Not later than 1 year		 920
Later than 1 year and not later than 5 years 2,629
Later than 5 years 5,195
TOTAL LEASE PAYMENTS DUE 7,667 8,744

New leases were negotiated during the year including car parking at Bay Studios for the Bay Campus and renegotiated leases for the Health Science facilities in St Davids Park. Leases were surrendered or expired in the year, including the lease for Oriel Science and a research space in Baglan Bay.

During the year, the University was tenant on three significant leases. The signficant leases include The College, a University joint venture company, Bay Studios 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 with the Baglan unit lease continuing until 2027. The lease on the Bay Studios Car Park is a short term lease expiring in 2026.

104

105

NOTES TO THE FINANCIAL STATEMENTS – ( Year ended 31 July 2024)

NOTES TO THE FINANCIAL STATEMENTS – ( Year ended 31 July 2024)

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, retail units 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 with leases for small spaces frequently being renewed. 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		 2024
Land and
Buildings
£000
362
943
995		 2023
Land and
Buildings
£000
345
Later than 1 year and not later than 5 years 988
Later than 5 years 1,196
TOTAL LEASE PAYMENTS DUE 2,300 2,529

There were no contingent rents receivable during 2023/24 (2022/23: £0).

30. EVENTS AFTER THE REPORTING PERIOD

There are no events to report which have occurred after 31 July 2024.

31. 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 31 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.

defned-contribution scheme. defned-contribution scheme.
STATEMENT OF COMPREHENSIVE INCOME – NET PENSION COST
USS		 CONSOLIDATED
2024
£000
20,603
(98,742)
752
1,485		 UNIVERSITY
2024
£000
20,603		 CONSOLIDATED
2023
£000
25,733		 UNIVERSITY
2023
£000
25,733
Change in expected USS contributions (98,742) (31,704) (31,704)
SUPS 752 1,268 1,268
Other 1,485 1,383 1,383
OTHER COMPREHENSIVE INCOME – ACTUARIAL GAIN IN RESPECT OF
SUPS		 (75,902) (75,902) (3,320) (3,320)
PENSION SCHEMES
(3,400)		 (3,400) 18,600 18,600
(3,400)
STATEMENT OF FINANCIAL POSITION – PENSION SCHEME LIABILITY (NOTE 21)
USS
–
SUPS
19,000
19,000		 (3,400) (3,400) 18,600 18,600
– 99,641 99,641
SUPS 19,000 17,200 17,200
19,000 19,000 116,841 116,841

On 25 July 2024, the Court of Appeal dismissed the appeal in the case of Virgin Media Limited v NTL Pension Trustees II Limited and others. The appeal was brought by Virgin Media Ltd against aspects of the High Court’s ruling handed down in June 2023 relating to the validity of certain historical pension changes due to the lack of actuarial confirmation required by law. The Court of Appeal upheld the High Court’s ruling. The ruling may have implications for other UK defined benefit plans, however the impact is still currently being assessed and there is no further information available at this stage.

(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 £21,503k (2023: £25,733k) including PensionChoice, but excluding the impact of the change in the deficit recovery plan, as shown in note 7.

Deficit recovery contributions paid within the year for the institution are £3,179k (2023: £7,389k) The latest available complete actuarial valuation of the Retirement Income Builder section of the Scheme is at 31 March 2023 (“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 2023 valuation was the seventh 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 £73.1 billion and the value of the scheme’s technical provisions was £65.7 billion indicating a surplus of £7.4 billion and a funding ratio of 111%.

The key financial assumptions used in the 2023 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 and Index Linked
CPI assumption yield curves less:
1.0% p.a. to 2030, reducing linearly by 0.1% p.a. from 2030
Benefits with no cap: CPI assumption plus 3bps
Pension increases Benefits subject to a “soft cap” of 5% (providing inflationary increases up to 5% and half
(subject to a floor of 0%)
of any excess inflation over 5% up to a maximum od 10%): CPI assumption minus 3bps
Discount rate (forward rates) Fixed interest gilt yield curve plus:
Pre-retirement: 2.5% p.a.
Post retirement: 0.9% 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 2023 actuarial valuation. The mortality assumptions used in these figures are as follows:

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2023 Valuation
Mortality base table 101% of S2PMA “light” for males and 95% of S3PFA for females.
Future improvements to mortality CMI_2021 with a smoothing parameter of 7.5, an initial addition of 0.4% pa,
10% w2020 and w2021 paramenters, and a long term improvement rate of
1.8% pa for males and 1.6% pa for females.
The current life expectancies on retirement at age 65 are: 2024 2023
Males currently aged 65 (years) 23.7 24.0
Females currently aged 65 (years) 25.6 25.6
Males currently aged 45 (years) 25.4 26.0
Females currently aged 45 (years) 27.2 27.4
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A deficit recovery plan was put in place as part of the 2020 valuation, which required payment of 6.2% of salaries over the period 1 April 2022 until 31 March 2024 at which point the rate would increase to 6.3%. No deficit recovery plan was required under the 2023 valuation becuase the scheme was in surplus on a technical provision basis. The institution was no longer required to make deficit recovery contributions from 1 January 2024 and accordingly released the outstanding provision to the profit and loss account.

106

107

NOTES TO THE FINANCIAL STATEMENTS – ( Year ended 31 July 2024)

NOTES TO THE FINANCIAL STATEMENTS – ( Year ended 31 July 2024)

(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 1 April 2015 that calculates pension benefits based on career average earnings. Transitional arrangements permit individuals who on 1 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 31 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 31 JULY 2024

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 1 August 2022 by a professionally-qualified actuary. The following are based on the results of the 1 August 2022 triennial valution projected forward with allowance for benefit accrual, expected investment return and actual cashflows and have been adjusted for FRS102 assumptions detailed below.

During the accounting period, the University paid contributions to the pension scheme at the rate of 23.2% (1 August 2023 – 31 October 2023) and 10.08% (1 November 2023 – 31 July 2024) of pensionable salaries in respect of the future accrual of benefits. The University also paid an additional £2.4m to the scheme during the year to 31 July 2024 in respect of deficit reduction contributions. A further £0.6m was paid by the University in respect of death in service premiums and expenses.

ASSUMPTIONS

ASSUMPTIONS ASSUMPTIONS ASSUMPTIONS
The fnancial assumptions used to calculate scheme liabilities under FRS102 are:
Price Infation (RPI)
Price Infation (CPI)
Rate of increase in salaries
Rate of increase ofpensions inpayment for SUPS members
Increases to deferredpensions before retirement
Discount rate		 AT 31 JULY 2024
3.3%		 AT 1 AUGUST 2023
3.4%
Price Infation (CPI) 2.9% 3.0%
Rate of increase in salaries 3.2% 3.3%
Rate of increase ofpensions inpayment for SUPS members 3.3% 3.4%
Increases to deferredpensions before retirement 2.9% 3.0%
Discount rate 4.8% 5.1%

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 AT 31 JULY 2024
19.6		 AT 1 AUGUST 2023
19.6
Pensioner – female 22.0 22.0
Non-pensioner (curentlyaged 45) – male 20.5 20.5
Non-pensioner (curentlyaged 45) – female 23.1 23.1

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.

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FAIR VALUE AS AT 31 JULY
2024 2023 2022
ASSETS IN THE SCHEME
£M £M £M
Equities 41.0 37.4 53.9
Corporate bonds 12.0 7.8 7.9
Property 0.8 1.5 2.0
GARS Fund – 12.2 13.5
Other 48.3 37.6 31.2
Total 102.1 96.5 108.5
The tables below include the disclosures for the Swansea University Pension Scheme.
YEAR ENDED YEAR ENDED
31 JULY 2024 31 JULY 2023
£000 £000
ANALYSIS OF THE AMOUNT SHOWN IN THE BALANCE SHEET FOR SUPS
Scheme assets 102,100 96,500
Scheme liabilities (121,100) (113,700)
DEFICIT IN THE SCHEME – NET PENSION LIABILITY
RECORDED WITHIN OTHER COMPREHENSIVE INCOME (19,000) (17,200)
Current service cost (1,000) (1,600)
TOTAL OPERATING CHARGE (1,000) (1,600)
YEAR ENDED YEAR ENDED
31 JULY 2024 31 JULY 2023
£000 £000
ANALYSIS OF THE AMOUNT CHARGED TO INTEREST PAYABLE/CREDITED TO OTHER FINANCE INCOME FOR SUPS
Interest cost (5,700) (4,900)
Expected return on assets 4,900 3,700
NET CHARGE TO OTHER FINANCE INCOME (800) (1,200)
YEAR ENDED YEAR ENDED
31 JULY 2024 31 JULY 2023
£000 £000
ANALYSIS OF OTHER COMPREHENSIVE INCOME FOR SUPS
Gain / (Loss) on assets 3,500 (13,900)
(Loss) / Gain on liabilities (6,900) 32,500
TOTAL OTHER COMPREHENSIVE INCOME BEFORE DEDUCTION FOR TAX (3,400) 18,600
YEAR TO
31 JULY 2024 31 JULY 2023 31 JULY 2021 31 JULY 2020
HISTORY OF EXPERIENCE GAINS AND LOSSES – SUPS
DIFFERENCE BETWEEN ACTUAL AND EXPECTED RETURN ON SCHEME ASSETS:
Amount (£000) 3,500 (13,900) (14,400) 14,100
% of assets at end of year 3.4% -14.4% -13.3% 11.6%
EXPERIENCE LOSSES/(GAINS) ON SCHEME LIABILITIES:
Amount (£000) 6,900 (32,500) (38,100) 1,500
% of liabilities at end of year 5.7% -28.6% -26.3% 0.8%
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108

109

NOTES TO THE FINANCIAL STATEMENTS – ( Year ended 31 July 2024)

NOTES TO THE FINANCIAL STATEMENTS – ( Year ended 31 July 2024)

31 JULY 2024 31 JULY 2023 £000 £000

32. RELATED PARTY TRANSACTIONS

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CUMULATIVE ACTUARIAL LOSS RECOGNISED AS OTHER COMPREHENSIVE INCOME FOR SUPS
Cumulative actuarial losses recognised at the start of the year 4,900 (13,700)
Cumulative actuarial losses recognised at the end of the year 1,500 4,900
ANALYSIS OF MOVEMENT IN (DEFICIT) FOR SUPS
DEFICIT AT BEGINNING OF YEAR (17,200) (36,600)
Contributions or benefits paid by the University 4,200 4,500
Current service cost (1,000) (1,600)
Admin costs (800) (900)
Other finance charge (800) (1,200)
Loss / Gain recognised in other comprehensive income (3,400) 18,600
DEFICIT AT END OF YEAR (19,000) (17,200)
ANALYSIS OF MOVEMENT IN THE PRESENT VALUE OF SUPS
PRESENT VALUE OF SUPS AT THE START OF THE YEAR 113,700 145,100
Current service cost (net of member contributions) 1,000 1,600
Interest cost 5,700 4,900
Actuarial loss/(gain) 6,900 (32,500)
Actual benefit payments (6,200) (5,400)
PRESENT VALUE OF SUPS LIABILITIES AT THE END OF THE YEAR 121,100 113,700
ANALYSIS OF MOVEMENT IN THE FAIR VALUE OF SCHEME ASSETS
FAIR VALUE OF ASSETS AT THE START OF THE YEAR 96,500 108,500
Expected return on assets 4,900 3,700
Actuarial gain on assets 3,500 (13,900)
Actual contributions paid by University 4,200 4,500
Non Investment expenses (800) (900)
Actual benefit payments (6,200) (5,400)
FAIR VALUE OF SCHEME ASSETS AT THE END OF THE YEAR 102,100 96,500
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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 4,900 3,700
Assetgain/(loss) 3,500 (13,900)
8,400 (10,200)

Estimated contributions for SUPS in the Financial Year 2024–25 is £568k (2023-24 £1,300k) assuming the contribution rate of 11% plus £3,213k PA fixed contribution (2023-24: 23% Aug 23 – Oct 23; 10% Nov 23 – Jul 24, plus £3,000k PA).

A number of potential issues associated with the Swansea University Pension Scheme have been identified. These relate to the documenting and implementing of decisions that have been made in respect of the Scheme and they have the potential to result in an increased liability for the Scheme. It is not possible to estimate the timing and financial impact of any outflow as it depends on how these issues are resolved and this is the subject of an ongoing legal case.

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.

Wales National Pool Swansea
Swan Global Education LLP		 INCOME FROM
RELATED PARTY
£000
989		 EXPENDITURE TO
RELATED PARTY
BALANCE DUE FROM
RELATED PARTY
£000
£000
732
150
2,119
242
123
1,112 2,851
392

Throughout the year and at the Balance Sheet date the University held 50% investments in the associated companies Wales National Pool Swansea (2023: 50%) and Swan Global Education LLP (2023: 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 £1,157k and a further £10k contribution towards a fan engagement project.

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 composition 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 arm’s 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 2023/24 financial year in which trustees have declared an interest are: Scarlets Regional Ltd, £30,850 for advertising/conferences and a trustee is a former Director of the Board; Natural Resources Wales, £3,557 for professional services, and a trustee is a former employee; Compass Group plc £1,592,702 for catering services and a trustee has a shareholding in Compass; Golwg cyf, £5,339 for advertising services and a trustee is one of the Directors of the Board; Swansea University Student Union, £1,597,254 for various transactions, with the two student members of Council being trustees of SUSU; Just Eat Food £151 for catering services and a close family member/associate of a trustee has a shareholding in Just Eat; Global Education Matter £13,823 for student fee activity and a close family member/associate of a trustee has a consultancy arrangement with Global Education Matter; Learned Society of Wales £30,348 for subscriptions and a trustee is a Fellow of the Society; JISC, £1,538,487 for training/software/books and various other activity, and a trustee is Chair of JISC; Welsh National Opera, £3,778 for production services, and a trustee is a Director of the Welsh National Opera; Royal Geographical Society, £411 for sports services, and a trustee is a fellow of the Society; Institution of Engineering & Technology, £3,540 for professional services, and a trustee is a member of the Institute.

No Council Member has received any remuneration or waived payments during the year (2023 – £0).

During the year £4.5k of expenses were reimbursed to Members of Council (2023: £3.2k), and £8.3k of payments were made on Council members behalf (travel and training costs) (2023: £6.3K)

33. 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 amounts presented within the schedules have been:

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.

110

111

NOTES TO THE FINANCIAL STATEMENTS – ( Year ended 31 July 2024)

NOTES TO THE FINANCIAL STATEMENTS – ( Year ended 31 July 2024)

CONSOLIDATED CONSOLIDATED CONSOLIDATED 2024 2024 2023 £000 £000 £000

CONSOLIDATED CONSOLIDATED CONSOLIDATED 2024 2024 2023 £000 £000 £000

Primary Reserve Ratio

Line item / disclosure

==> picture [535 x 620] intentionally omitted <==

----- Start of picture text -----
Expendable net assets
Net assets without donor restriction
318,549 239,520
Statement of Financial Position Unrestricted Income and Expenditure Reserve – 278,471 –
Statement of Financial Position Revaluation Reserve – –
40,078
Net assets with donor restriction
8,807 7,495
Statement of Financial Position Endowment Reserve – –
7,972
Statement of Financial Position Restricted Reserve – 835 –
Note 10, excluding Service
Concession Arrangement Property, Plant & Equipment – –
Property, Plant & Equipment,
pre-implementation (275,603) (287,160)
Property, Plant & Equipment without
outstanding debt for original purchase (84,010) (71,311)
Property, Plant & Equipment
– construction in progress (17,402) (11,103)
Note 10 – Service Concession Arrangement Lease right of use asset – pre-implementation (104,348) (104,563)
Statement of Financial Position Intangible Assets (444) (316)
Statement of Financial Position Post employment and pension liabilities 19,000 116,841
Long term debt for long term purposes – –
Long term debt for long term purposes
Note 19 & 20
pre-implementation 90,944 96,151
Long term debt for long term
Note 19 & 20
purposes post implementation 7,419 8,290
Note 13 Lease right of use asset liability – –
Lease right of use asset liability
pre implementation 116,225 115,961
Lease right of use asset liability
post implementation – –
Statement of Financial Position Term endowments with donor restrictions
(7,972) (7,308)
Total Operating Expenses without Donor Restrictions
Statement of Comprehensive Income
Total operating expenses without donor
excluding change in expected USS
restrictions taken from CSCI
contributions 397,521 380,395
Non-operating and Net Investment Loss (95,342) (50,304)
Net investment losses – –
Pension related charges other than periodic costs 95,342 50,304
Statement of Comprehensive Income Change in expected USS contribuutions – 98,742 –
Statement of Comprehensive Income Actuarial gain in respect of pension schemes – (3,400) –
----- End of picture text -----

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----- Start of picture text -----
Equity Ratio
Line item / disclosure
Modified Net Assets
Net Assets without Donor Restriction
318,549 239,520
Statement of Financial Position Unrestricted Income and Expenditure Reserve – 278,471 –
Statement of Financial Position Revaluation Reserve – –
40,078
Net Assets with Donor Restrictions
8,807 7,495
Statement of Financial Position Endowment Reserve – –
7,972
Statement of Financial Position Restricted Reserve – 835 –
Statement of Financial Position Intangible assets 444 316
Modified Assets
Total Assets
650,181 707,408
Statement of Financial Position Non-current Assets – –
482,516
Statement of Financial Position Current Assets – 167,665 –
Note 10 – Service Concession Arrangement Lease right of use asset pre implementation 104,348 104,563
Note 13 Pre implementation right of lease 116,225 115,961
Statement of Financial Position Intangible assets 444 316
Net Income Ratio
Line item / disclosure
Change in Net Assets Without Donor Restrictions
Statement of Comprehensive Income Total comprehensive income in the year 80,341 83,098
Statement of Comprehensive Income Restricted comprehensive income in the year (1,312) (136)
Total Revenue and Gains
Total revenue and Gains without donor restrictions
Total operating revenue and other additions 380,967 412,441
Statement of Comprehensive Income Total Income – 381,695 –
Note 6 – restricted income Restricted donations – –
(728)
Statement of Comprehensive Income Non-operating Revenue and Other gains 445 226
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112

113

NOTES TO THE FINANCIAL STATEMENTS – ( Year ended 31 July 2024)

NOTES TO THE FINANCIAL STATEMENTS – ( Year ended 31 July 2024)