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2025-07-31-accounts

Cardiff | Newport | Pontypridd

ANNUAL REVIEW

2024/25

Information for the Year ended 31 July 2025 southwales.ac.uk

Annual Review and Financial Statements for the Year ended 31 July 2025

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CONTENTS

CONTENTS
Foreword from the Chair 5
Strategic Statement 6
VC Review of the Year 10
Commitment to sustainability 28
Board of Governors’ 35
University Committees 38
Committee Responsibilities 40
Financial Review 46
Public Benefts Statement 54
Corporate Governance 55
Governors Responsibilities 60
Independent Auditors' Report 62
Consolidated and University Statement of 66
Comprehensive Income
Consolidated and University Statement of 67
Changes in Reserves
Consolidated and University Balance Sheet 68
Consolidated Statement of Cash Flows 69
Statement of Accounting Policies 70
Use of Estimates and Judgement 76
Notes To The Financial Statements 77-99

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Annual Review and Financial Statements for the Year ended 31 July 2025

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FOREWORD FROM THE CHAIR

At the end of another academic year, I would like to extend my heartfelt thanks on behalf of the Board of Governors to everyone across the University of South Wales community. This year marks my final as Chair of the Board, and it has been a privilege to serve in this role.

2024/25 has been a year of significant progress and well-earned recognition. One of the standout moments was USW achieving its highest-ever ranking in the Guardian University Guide 2025, rising 21 places to 51st in the UK and third in Wales. This is a testament to the hard work and commitment of our staff and students and reflects the growing impact and reputation of the University.

We also celebrated the start of construction on a new academic building at our Treforest Campus, Calon, which is a major investment in the future of Computing, Engineering and Technology at USW. This state-of-the-art facility will house more than 40 teaching, learning and research spaces, including robotics and hydraulics labs, a flight simulator, and collaborative makerspaces designed to foster interdisciplinary innovation. It’s a bold step forward in enhancing the student experience and supporting cutting-edge research.

USW has continued to lead the way in entrepreneurship, ranking in the top three in the UK for the total number of graduate businesses. We retained our title as the best in Wales for new graduate start-ups for the fifth consecutive year, and placed sixth in the UK for businesses that have been trading for at least three years. These achievements speak volumes about the entrepreneurial spirit nurtured at USW and the real-world impact of our graduates.

We also welcomed the establishment of Medr as the new higher education regulator in Wales, marking a significant shift in the governance landscape. This comes at a time of considerable political, policy, and financial uncertainty, with changes in both the UK and Welsh Governments continuing to shape the environment in which universities operate. Shifting priorities, historic funding models, and the legacy of previous policy decisions have all contributed to a complex backdrop. Critically, the sector is grappling with sustained financial pressures, including rising costs, constrained public funding, and increasing demands for efficiency and value for money.

In this context, USW remains committed to working collaboratively with partners across higher and further education, all areas of government, and industry to navigate change and champion opportunity for learners of all backgrounds. However, we do so with a clear-eyed understanding of the financial headwinds that continue to challenge our ability to deliver on our mission.

With continued financial turbulence in the sector, the Executive team has worked hard to maintain progress against delivering our USW 2030 strategy while also taking decisive steps to move the institution toward a more sustainable financial future. These decisions are never easy and have sadly included saying goodbye to valued academic and professional colleagues. We are deeply grateful for the contributions of those who have left the University and recognise the impact of these changes on remaining colleagues and teams.

The Board has been encouraged by the continued delivery of the USW 2030 Strategy. From new academic delivery models and digital transformation to the embedding of our Research and Innovation Strategy, the University is making strong progress toward its longterm goals. These achievements have been made in the face of significant financial constraints, requiring careful prioritisation and difficult trade-offs. The University has responded with clarity and purpose, balancing cost management with strategic investment to ensure sustainability and resilience. We will continue to keep the position under continual review, recognising that financial stability is essential to securing our future and fulfilling our commitments to students, staff, and partners.

As I step down as Chair, I do so with deep gratitude for the colleagues, students, and partners who make USW such a special place. Thank you for your commitment, your creativity, and your belief in the power of education. It has been an honour to serve this University, and I will continue to champion its mission with pride as it enters its next chapter.

Louise Evans Chair of the Board of Governors

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Annual Review and Financial Statements

for the Year ended 31 July 2025

STRATEGIC STATEMENT

At the University of South Wales, our core purpose is to make a positive impact and be ambitious for our students and colleagues. We are focused on inclusion, enterprise, and growth, and we are a proven trusted partner for long-term mutual benefit and success. We are proud to be anchored in South Wales with a global reach, and an innovative creator of knowledge and solutions for the future. This purpose informs our vision, our strategic goals and enablers, and how we focus and deliver our activities. The University Strategy – USW 2030 – sets out our direction for the next decade; a pathway for the future that is bold and ambitious to ensure our continued success and long-term sustainability.

Our world is changing at an intense pace, and it is our job to equip our students with the skills, knowledge, and experience required to maximise their potential and future opportunities in the world of work.

Working in collaboration with industry, our research and innovation will tackle some of the biggest global challenges, from energy to health to security, and provide answers to real- world problems.

By 2030, our ambitions are to:

OUR VALUES

In the execution of our strategy and the advancement of education for the public benefit, the University strives to adhere to the following core values in all of our activities.

Professional

We will:

Responsive

We will:

Creative We will:

Inspiring

We will:

Collaborative

We will:

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OUR GOALS

Maximising graduate success and opportunities

Distinctive academic offer

Our portfolio will focus on the skills needs of students and employers.

There will be a well-evidenced and market-led development process that builds reputation in areas of strength and in growing, and emerging, UK and international markets.

It will be co-designed with industry, regularly refreshed, and professionally recognised.

Our curriculum will instil a professional identity and be connected to regional, national and global challenges.

Transformational learning, teaching, and student experience Problem and challenge-based learning will be embedded in all programmes, in order to develop graduate attributes of innovation and enterprise, leadership, project management, digital literacy, commercial awareness, and communication.

Interdisciplinary team-based learning will connect to problems beyond the classroom, in order to drive actions and solutions.

Our curriculum will create a deep sense of belonging, engagement, networking, and pride.

Engagement with alumni will be embedded in student life, notably mentoring and supporting graduate success.

Students will have an inclusive voice in the development of the curriculum.

Workplace and lifelong learning solutions

There will be extended and enhanced professional workplace learning opportunities, including degree apprenticeships.

Research excellence and innovation impact

Internationally excellent research capabilities

We will focus on accelerated development and investment in our internationally-reputable and high-impact research areas:

There will be focused development of innovative pedagogical practice, including the use of emergent technologies.

Research and innovation impact

Our multidisciplinary research teams will focus on providing relevant, impactful solutions to problems that affect society and the economy.

Learning and teaching will be based on insights and evidence from our research and innovation impact in industry and the community.

We will support, foster and showcase the talent and ambition of our research and innovation.

Knowledge and skills exchange for student and strategic partner benefit

Our major strategic partnerships will address global challenges and act as catalysts for wider influence and support.

Our collaborative work will focus on creating greater levels of productivity, innovation, and economic impact.

It will act as a bridge for knowledge exchange between students, employers, and community interests.

We will work in partnership to inspire and support student entrepreneurship.

There will be new, innovative, and flexible CPD opportunities and models of delivery.

We will have an increased focus on blended and online learning opportunities to extend market reach.

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Annual Review and Financial Statements

for the Year ended 31 July 2025

OUR ENABLERS

Our external focus

Accessible Higher Education

Working with partners to improve educational attainment and promote access to, and participation in, higher education will be a priority.

We will work to support a growth of Higher Education in Further Education opportunities across our region and beyond.

There will be enhanced support for students from under-represented communities and groups to succeed in higher education.

There will be a growth of inbound and outbound international student mobility.

Contribution to economic and societal wellbeing

We are committed to improving the future wellbeing of the communities we serve, by taking individual and collective action, across our region, including support for the Welsh Government’s wellbeing goals.

We nurture relationships between industry and communities, acting as a catalyst and bridge, through, for example, practice-based research and innovation focusing on solutions to real-world problems.

Building supportive, trusting, and professional relationships with civic leaders, to maximise positive change and outcomes for our region and beyond, will be a priority.

We will maximise the economic and public value of our campuses as an anchor institution for the benefit of our partners and communities.

We are committed to making a positive contribution to the development of the Welsh language.

Our operational transformation

Focused, talented, and ambitious staff

With a deep sense of belonging, focus and pride in our work, there will be a ‘one university’, values-based culture.

All colleagues will have an ethos of continuous improvement in learning and teaching, with staff empowered to innovate and collaborate to advance our innovative pedagogical practice.

We will be a high-performing and digitally-innovating workforce aligned to our core values, goals, and work priorities.

We will have an inclusive workplace environment that supports diversity and promotes collaboration and wellbeing.

Fit-for-the-future operations

We will consolidate our estate and enhance our digital infrastructure. We will use flexible spaces and emergent technologies to enable innovative pedagogical and work practices.

Our services will be efficient and innovative and meet the needs of our students, staff, and partners.

We will deliver timely and consistent business intelligence, with an effective data governance and management framework, to inform and empower decision making.

Financial strength

Our institution will be scalable and sustainable, with operational and commercial models that embrace our efficiency and effectiveness.

We will grow and diversify our income to generate surpluses for re-investment in our core purpose.

Connected and responsible organisation

We will deepen our regional, national, and international strategic partnerships for mutual benefit, including development of models to accommodate partnership requirements.

There will be enhanced engagement with our alumni network to sustain an advocacy and support network for life.

We will communicate our purpose and value with clarity, integrity, and enthusiasm.

We will embed environmental and corporate social responsibility principles into our practice.

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Annual Review and Financial Statements for the Year ended 31 July 2025

VC REVIEW OF THE YEAR

The 2024/25 academic year has been one of profound change, resilience, and achievement for the University of South Wales. It has also been a year marked by challenge and uncertainty, and I want to begin by recognising the impact this has had on our colleagues across the University. The strength, professionalism and care shown by our community during difficult times has been humbling, and I am sincerely grateful for your continued commitment.

Despite the pressures we’ve faced, there is much to be proud of. Our collective efforts have led to significant progress and recognition. We achieved the highest rise in Wales in the Complete University Guide 2026, up 18 places, and built on our highest-ever ranking in the Guardian University Guide. Improvements in student satisfaction with teaching, assessment and feedback, and graduate outcomes in the National Student Survey (NSS), reflects our shared dedication to delivering a high-quality, career-focused education.

We were also delighted to achieve the Race Equality Charter bronze award alongside the Royal Welsh College of Music & Drama. This milestone reflects our commitment to identifying and addressing barriers to success for Black, Asian and minority ethnic colleagues and students. We know there is still much work to do, and the actions identified will take us further along our path to becoming an antiracist organisation. I am extremely grateful to all colleagues who have worked so hard to get us this far.

Sustainability has remained a major focus, and we’ve made remarkable strides, rising 59 places in the People & Planet University League to 23rd in the UK and fourth in Wales. This progress reflects our growing commitment to environmental and ethical performance, and our ambition to embed sustainability across everything we do.

Our campuses continue to evolve. Construction began on Calon, our new academic building for Computing, Engineering and Technology at Treforest Campus. This landmark development will offer state-ofthe-art facilities, showcase student work, and foster collaboration with industry partners. We also opened our new Chiropractic Clinic at Treforest, and completed extensive refurbishments at Newport Campus, including new collaborative spaces and specialist centres that enhance learning and community engagement.

Our role in the community continues to grow. From hosting hundreds of visitors at the National Eisteddfod in Pontypridd, to welcoming nearly 200 primary school children to our STEM Outreach Conference and running a science festival for more than 350 local visitors, USW has opened its doors to inspire and engage. These events showcased the breadth of our academic expertise, from psychology and sport to forensics and virtual reality, and demonstrated our commitment to making education accessible, exciting, and relevant to people of all ages across South Wales.

Research at USW continues to make a meaningful impact. Our Engagement & Impact Awards celebrated collaborative projects tackling some of society’s most pressing challenges, from infectious disease diagnostics and healthcare innovation to climate change and business development. We’re proud to be part of a £10 million investment in health research, leading the Centre for Vision Services Research, where our academics are helping to transform care for people with sight problems. Our hydrogen research team is driving innovation in green energy, while our Emerging Leaders 2025 survey is shaping the future of women’s leadership in Wales. These and many other projects demonstrate the real-world impact our research is having on global challenges.

Internally, we’ve taken steps to listen and respond. Our first colleague survey since 2017 provided valuable insights into engagement and areas for improvement. We launched the Redefining Our Future Together paper series to support open dialogue around changes to our portfolio and academic delivery. We also hosted a Growth Summit to explore what strategic growth could look like for USW.

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However, as I’ve referenced, it is important to acknowledge and recognise the difficult decisions we have had to make this year. Throughout the year, we have consulted on changes within both our academic and professional service areas, which have led to valued colleagues leaving us. These decisions were not taken lightly, and I want to sincerely thank those colleagues for their contributions. While these changes are painful for our entire community, they are necessary to secure the long-term sustainability of the University in a challenging external environment.

As we look ahead, we do so with cautious optimism and a clear sense of purpose. We are transforming USW to deliver the best possible experience and outcomes for our students, colleagues, and partners. Thank you to everyone who has contributed to this journey. Your resilience, creativity, and dedication continue to shape a university that is ambitious, inclusive, and ready for the future.

Dr Ben Calvert Vice-Chancellor

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Annual Review and Financial Statements for the Year ended 31 July 2025

MAXIMISING GRADUATE SUCCESS AND OPPORTUNITIES

Improving our teaching and learning

Significant progress has been made on USW’s project to introduce a distinctive delivery model to support growth across all subject areas. Designed to be flexible, immersive, and responsive to the needs of today’s students, the model centres on real-world challenges, enabling learners to build practical experience and graduate with a strong professional portfolio. Substantial work has been undertaken this academic year to prepare the infrastructure for this curriculum transformation, with the first wave of courses set to launch in the 2026/27 academic year.

73 colleagues from USW and partner institutions have been awarded Advance HE Fellowships this academic year, including Fellowship, Senior Fellowship, and Principal Fellowship. These prestigious awards recognise staff for their sustained excellence in teaching, learning, and educational leadership. Based on the UK Professional Standards Framework (UKPSF), the Fellowships reflect effective teaching practice, innovation, mentoring, and strategic leadership, underscoring our ongoing commitment to professional development and student success.

Graduate Outcomes Survey

The Graduate Outcomes Survey’s 2023/24 publication showed that 72% of our full-time undergraduate UK graduates were in highly skilled employment and / or further study 15 months after graduation – up 2 percentage points from 2021/22 survey. USW’s gap to the UK sector is now the closest it has ever been at 3 percentage points below sector.

The data also found that the overall rate of graduates in a form of employment and / or further study 15 months after graduation remained at 93%, mirroring both the UK and Welsh sector. 12% of fulltime undergraduate UK graduates indicated they were self-employed or running their own business. This is a 1 percentage point increase on our 2021/22 performance and puts USW 4 percentage points above the UK sector in this metric.

Several subject areas had particularly significant results, including Education (97%), Nursing and Allied Health (98%), Sport (92%), and Operational Policing (100%).

Supporting graduate start-up businesses

This year, USW has actively embraced Generative AI as a powerful enabler of efficiency and innovation in learning and teaching, while also recognising it as a critical graduate skill for the future workforce. More than 300 colleagues have already engaged in generative AI development sessions, reflecting a strong institutional commitment to upskilling and responsible adoption. To support this, the University has started piloting an AI in Assessment Scale (AIAS), which helps colleagues to clearly categorise the acceptable level of AI use for each assessment.

Student experience and outcomes

National Student Survey

The University saw an improvement in both overall positivity and overall satisfaction in this year’s National Student Survey (NSS) results. USW was rated as above sector for Assessment and Feedback, Academic Support, and Student Voice. Whilst there were notable gaps to sector for Mental Wellbeing Support (which measures how aware students are of the services available, rather than their quality), Organisation and Management, and Learning Resources, all these areas improved in overall positivity since 2024.

The University’s three faculties all saw an improvement in overall satisfaction and overall positivity measures. At a subject level, the University was rated top in Wales for overall satisfaction for Building, Business and Management, Civil Engineering, Complementary and Alternative Medicine, Computer Games and Animation, Journalism, Learning Disabilities Nursing, Social Work, Software Engineering, and Teacher Training. 12 courses also received 100% in the overall positivity measure, with many courses significantly improving in this metric when compared to last year.

USW reinforced its position as a leader in fostering entrepreneurial talent, ranking top three in the UK for the total number of graduate businesses in figures provided by the Higher Education Statistics Agency (HESA). USW also retained its title as best in Wales for new graduate start-ups for the fifth year running.

In 2023/24, USW moved up to sixth place out of 220 UK universities for new business start-ups. The figures also found USW to be first in Wales for the number of active graduate businesses. The University placed second in Wales and sixth in the UK for establishing businesses that have been trading for at least three years. USW’s Faculty of Business and Creative Industries graduates represented more than half of the new ventures, with businesses spanning a diverse range of sectors including media production, fashion design, music, and games development.

This sustained success is attributed to the University's dedicated focus and investment in entrepreneurship, including initiatives from the Startup Stiwdio and Enterprise team, which provides graduates with essential skills, funding, advice, and support for business growth. The University also receives crucial ongoing support from Medr and the Welsh Government in enabling the delivery of support programmes for aspiring startups and freelancers.

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STUDENT INCLUSION | WORKING
WITH STUDENTS
Digital Mentors
The University’s Digital Mentor team delivered 19 digital
support sessions this year, which were embedded into the
curriculum at the request of course teams. The team
developed their own sessions for students and created their
own posters and presentations. They also helped nearly 100
students across five welcome events, including a post-
induction fair and an International Welcome event.
Additionally, 965 students were supported by the team at
drop-in sessions at all campuses.
As part of their new role, Digital Mentors were also trained to
promote their academic integrity knowledge to students and
to signpost to the University’s Academic Integrity modules,
Epigeum. These modules aim to introduce the fundamentals
of academic integrity, which includes the ethical use of
GenAI at USW. The Digital Mentors were part of the initial
pilots for the modules and provided feedback to help
improve engagement.
Student Navigators
In the past year, Student Navigators have continued to
support a wide variety of USW activities, including helping
new students at the start of the academic year by supporting
the Disability Support, International, and Academic Registry
teams. This year they also supported the University’s Events
team by manning dedicated ‘friendship tables’ at key
University dates.
They facilitated wellbeing initiatives, including crafting
activities, therapy dog visits, and therapeutic art sessions. The
Student Navigators also supported students and colleagues
during wellbeing awareness days, including University
Mental Health Day. They also continued to promote the
online mental health platform Togetherall.
EDI ambassadors
This year, we have continued to develop our Equality,
Diversity, and Inclusion (EDI) ambassador programme, to
help ensure a student voice in key University events and
initiatives. In 2024/25, the EDI team launched iBelong, a
writing workshop for students to explore their identity,
heritage, and experiences, and connect through creativity.
The team will be developing and expanding the programme
for the next academic year.
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Annual Review and Financial Statements for the Year ended 31 July 2025

RESEARCH EXCELLENCE AND INNOVATION IMPACT

Research and Innovation Conference 2025

The second Annual Research and Innovation Conference was held in April 2025, showcasing how academics have collaborated with key stakeholders to co-design and co-produce solutions to real-world challenges. This theme reflects a core element of the USW 2030 Strategy – bringing authentic problems into the academic environment so students and colleagues can develop impactful solutions, changing lives within our communities and beyond.

Spanning three full days and taking place across all USW campuses, the conference aligned its research themes with the academic programmes delivered at each location. Research and Innovation Group (RIG) posters were displayed throughout, highlighting the diverse range of research being undertaken at USW.

A key focus of the conference was the collaborative presentation of research ideas and their real-world impact, delivered by members of the RIGs alongside their external partners. These partners represented a broad spectrum of sectors – including industry, business, public services, the third sector, and voluntary organisations – and included: Goggleminds, Gwent Police, Cardiff and Vale University Health Board, Torfaen Council, Dwr Cymru Welsh Water, Protium, First Milk, Leprino Foods, Royal Academy of Engineering, Arup & Partners Ltd, Elite Flow Control, Airbus Defence and Space, Head for Change, Welsh Rugby Union, Football Association of Wales, Yatami, Strategic Programme for Primary Care, Historic England, Earth to Action, and the Learning and Work Institute.

Research awards

This year, USW’s Research and Innovation Services (RISe) department supported the submission of 245 funding applications, totalling approximately £23m. 107 projects were successful, with a total grant value of £4.5m. Funding successes included:

Innovation and research commercialisation

USW academics were supported throughout the year through the University’s Knowledge Exchange and Innovation Fund, which offers funding for the further development of technologies and innovative ideas.

Researchers licensed their facial reconstruction solution to KLS Martin, a leading supplier of medical technology. After securing Intellectual Property (IP) protection through a patent, RISe identified a suitable company to license the technology to, enabling the technology to make a real-world impact.

In May, the University signed a Memorandum of Understanding (MoU) with USW spin-out Llusern Scientific, which aims to transform the field of medical diagnostics. This agreement covers a range of potential activities, including staff development and training, student placements, collaboration in teaching, learning, research and knowledge transfer, use of facilities, joint research, and marketing and promotion.

Developing future doctoral candidates

In 2024/25, the University’s Graduate School supported more than 40 viva examinations and delivered a full programme of training for PGR supervisors, chairs, and examiners. 10 Research Engagement Fund scholarships were supported, enabling students to present their work in the UK, Europe, and USA. The University also contributed to the Researcher Wellbeing Cymru Project, funded by Medr, leading to the development of a national online wellbeing resource for PGR students.

In October 2024, three students began PhDs funded by the Welsh Graduate School for the Social Sciences (WGSSS). The initiative is focused on supporting the next generation of social scientists to address pressing societal issues. USW also received a new Doctoral Landscape Award from the Arts and Humanities Research Council (AHRC).

Taith Research Mobility Fund

In 2024/25, Taith supported 111 outward mobilities to 47 countries, including Australia, USA, Canada, Costa Rica, Kenya, Nigeria, India, China, Malaysia, Belgium, Italy, Denmark, Norway, and more. The programme also supported 15 inward mobilities from India, Pakistan, Turkey, South Africa, USA, and Australia.

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STUDENT ENGAGEMENT | DEVELOPING RESEARCH CULTURE
The University has continued to offer a comprehensive programme of events and training opportunities through the Research and
Innovation Research Development Programme (RIDP). In April, a Research and Innovation Conference was held, demonstrating how the
University’s research and innovation work is making a positive difference to our communities.
The annual Postgraduate Research Showcase took place in June, which included opportunities for researchers to network and share their
experiences of imposter syndrome. During the two-day event, students shared the impactful research work they are undertaking in a
wide variety of disciplines. Students shared their research via oral presentations, Three Minute Thesis (3MT®) presentations, as well as
images of their research – with winners being announced for each of the three categories.
In 2025, three USW academics were selected for the Welsh Crucible, an award-winning programme of personal, professional, and
leadership development for the future research leaders of Wales. Dr Anne-Marie Coll, Dr Elizabeth Coombes, and Dr Biao Zeng took part
in a series of “skills labs” focusing on building networks, forging collaborations, enhancing professional profiles, and boosting personal
effectiveness.
Several academics participated in the Welsh Universities Research Leadership Programme, which enables participants to reflect on their
own approach to leadership and identify how to further enhance their skills as research leaders.
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Annual Review and Financial Statements for the Year ended 31 July 2025

EXTERNAL FOCUS

Place Programme

USW has partnered with Business in the Community (BITC) since 2021 to deliver a pilot place-based programme, listening to community and business needs in Newport and implementing needs-led interventions. Place Programmes convene anchor organisations in a location to realise positive social and economic change that benefits local residents.

In 2022, BITC chose Newport as its first location in Wales to formally establish a Place Programme, with USW as a key founding partner. USW has continued its support of the Newport Place Programme this year through the provision of facilities and staff time to lead steering groups, hosting business and community conversation events to gauge local community needs, and providing use of the University’s facilities to local charities supported by the Programme.

USW staff have supported interventions such as ‘World of Work’ events to facilitate the realising of aspirations in local schools, ‘Enterprise Days’ promoting entrepreneurship to young people in the city, and skilled volunteering days to provide advice to local organisations such as Pillgwenlly Millennium Centre on their commercialisation strategy. The University also supports Newport Parent Power in partnership with the Brilliant Club, Kings College London and Jesus College Oxford, which is engaging parents and children from city areas with low uptake of HE opportunities to support widening participation.

Academic-Industry Partnerships Programme

The Academic-Industry Partnerships Programme, led by USW on behalf of the Cardiff Capital Region, delivered a pioneering £500,000 initiative to strengthen collaboration between academia and industry across South Wales. Uniting three universities and five FE colleges, the programme created a single, accessible route for more than 130 businesses to engage with academic expertise.

Over 12 months, the project supported 24 research partnerships, resulting in 21 new or improved products, 20 new technology adoptions, and the creation or safeguarding of 69 jobs. With more than 200 partnership touchpoints established, the programme embedded a culture of innovation and is forecast to generate £16 million in economic growth. It addressed key regional challenges in NetZero, digital transformation, and sector-specific innovation across MedTech, Cyber, FinTech, and more. The initiative has set a new standard for knowledge exchange, demonstrating the transformative potential of collaborative innovation and laying the foundation for future regional development

Newport Engagement Hub

This year saw the opening of the University’s Newport Engagement Hub, a dynamic space designed to inspire collaboration, foster innovation and entrepreneurship, and drive growth.

The hub has been developed as part of our commitment to further build strong relationships across Newport and Gwent, offering assistance to a variety of organisations seeking to grow their business and collaborate with USW’s staff and student expertise. It is home to Startup Stiwdio Sefydlu, USW Exchange and wider externally facing Engagement and Enterprise teams - providing access to one-to-one advice and signposting on collaborating with USW’s academic expertise; business support and guidance for graduate entrepreneurs and business start-ups; access to free-to-use meeting spaces, and event facilities.

Co-locating USW’s business and community engagement services within the Newport Engagement Hub has created an easier-to-access approach to supporting our business and community partners across Newport and Gwent whilst creating a vibrant and diverse network of partners with which to co-locate and build future partnerships.

Pilot of challenge-based innovation challenge with CTMUHB

USW partnered with Cwm Taf Morgannwg University Health Board (CTMUHB) on a challenge-led innovation project to reduce the environmental impact of healthcare services. This initiative supported USW’s 2030 Strategy, connecting research, teaching, and learning to real-world societal challenges.

Colleagues were asked to submit ideas on how to reduce waste and improve sustainability in NHS operations, including how to reduce unnecessary products and services, how to reuse tools, equipment, and resources, and how materials could be recycled to minimise waste and environmental impact.

After receiving submissions from academic colleagues, viable proposals were shortlisted and invited to pitch for pump-prime funding. The project is now in the delivery phase, with the winning academic teams conducting scoping, feasibility, and development work, with initial projects concluding and next steps identified by September 2025.

This challenge-based innovation project has helped the University to provide tangible value and impact to strategic partners, whilst supporting a pipeline of real-world challenges which may lead to collaborative research, consultancy, and challenge-based learning for students.

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STUDENT PROJECT | CREATING
INSPIRATIONAL ARTWORK FOR
CANCER CHARITY
In November 2024, Illustration students helped to raise £4,025
for charity after creating original artwork to be sold at auction.
The third-year students created pieces of art for Maggie’s
Cardiff – a charity offering free emotional, practical and
psychological support to people affected by cancer - for sale at
auction.
Maggie’s, which is based at Velindre Cancer Centre, worked
with the students as part of their Client Studies module,
providing an opportunity for them to apply their illustration
skills in a real-world context while contributing to the
inspirational work that the charity does.
The students created 21 pieces of artwork in total, which were
based on themes such as care, resilience, hope and strength,
to reflect how Maggie’s supports individuals and families to
take back control when cancer turns their lives upside down.
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Annual Review and Financial Statements for the Year ended 31 July 2025

OPERATIONAL TRANSFORMATION

Fostering an inclusive learning, teaching, and working environment

In July, USW was awarded Advance HE’s Race Equality Charter (REC) bronze award, which aims to help universities in their work to improve the representation, progression and success of Black, Asian and minority ethnic staff and students in higher education. Over the past few years, the University has been working to better understand the needs of staff, students, and the communities it works with to put in place appropriate guidance and positive actions. This academic year, the University’s Equality, Diversity, Inclusion (EDI) team and Race Equality Champions compiled and finalised the application, which included the development of Race Equity action plans. The next steps to develop this work and deliver against action plans have been published for colleagues, which include removing differential student outcomes and encouraging more of the University community to be a part of this work.

Developing our estate

Construction works have progressed significantly for our new Computing, Engineering and Technology building on our Treforest Campus, Calon. In the spring term, two tower cranes moved onto the site to begin the construction of the structure, and, throughout the academic year, the concrete frame was built, and building works progressed with pile cropping, ground beams, pile caps, and waterproofing, along with the casting of foundations and the installation of pre-cast columns. Construction will continue into the new academic year.

The building will provide teaching, research, and support space for the Built Environment, Civil Engineering, Mechanical Engineering and Aerospace, Informatics and Electronics, and Computer and Data Science subjects. One of the key principles of the building will be to promote interdisciplinary working by making the activities that are taking place visible and accessible.

The investment is set to have a hugely positive impact on the local economy, with BAM appointing local subcontractors and supply chain partners to deliver the project. More than 75% of the project spend will be placed locally. The design of the building is environmentally sustainable, aligned to USW’s target of being carbon net-zero by 2040.

The University’s new Chiropractic Clinic – home of the Welsh Institute of Chiropractic (WIOC) - opened this year at Treforest Campus to colleagues, students, and members of the public. The state-of-the-art facility was completed in April, bringing together all aspects of chiropractic education and clinical training under one roof. The building includes 26 treatment rooms, DXA and diagnostic ultrasound facilities, and seminar spaces – all designed with sustainability at its core as part of USW’s commitment to achieving net-zero carbon by 2040. An official opening ceremony for the clinic will take place this autumn, with guest speakers and guided tours of the facilities.

Enhancing our systems and processes

A host of work was undertaken in 2024/25 to upgrade our systems and ensure we have sector-leading working, learning, and teaching environments. Following the launch of our new website last year, the University’s sub-domains moved to our new content management system in March - the next step in our plan to transform our web presence. Work progressed on our Student Journey Programme, which will modernise our technology operations and enhance the student experience, providing enhanced functionality for students and staff. Advancement of the first phase of the programme has continued this year, which is focused on the creation of a new curriculum management system.

Several platforms launched throughout the year to enhance the student and staff experience. A new extenuating circumstances form and supporting system were introduced in October, creating a simplified experience for students, allowing them to submit a claim 24 hours a day, seven days a week. The University’s new Admissions system launched in December, replacing the ageing in-house product. The system which hosts USW’s student-facing support platform, Advice Zone Online (AZO), was upgraded in March, allowing students to book appointments with specialist services and ask questions on a range of topics. Timetables for May exams were automatically generated as part of a project aimed at making the process more efficient and streamlined. A new room and desk booking system has also been introduced and is now being piloted across multiple departments within the institution. Extensive work has taken place to automatically integrate timetables with the University’s student record system, ahead of the next academic year. This work will remove existing manual processes and create a more streamlined experience for students and colleagues.

The first phase of moving our digital services to the Cloud completed early this year, providing USW with flexible, scalable, and cost-effective hosting solutions that can adapt to changing business needs and requirements. WiFi network improvements also took place across our sites as part of our plans to enhance our IT infrastructure.

Redefining Our Future Together series

In September 2024, the University launched the ‘Redefining Our Future Together’ paper series for colleagues – an opportunity for staff to navigate the current period of change and transformation at USW. The papers, which have been published throughout the year, have focused on facing the challenges ahead, delivering academic excellence for our students, reimagining our portfolio, and igniting our future growth. The publication of each paper was the starting point for a dialogue, and we actively engaged with colleagues following their release to gather feedback and help shape the future of the University. The first two papers in the series were followed by University-wide engagement sessions, where more than 450 colleagues registered to attend. The third paper, focused on our portfolio, was followed by faculty-specific engagement sessions. The fourth paper, which considered our growth, was published in conjunction with a USW Growth Summit in May, which kickstarted conversations around strategic growth at the University, and developed a shared understanding of what ‘good growth’ could look like.

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STUDENT ENGAGEMENT | USW STUDENTS DESIGN KEY AREA
OF NEW CALON BUILDING IN CROSS-FACULTY PROJECT
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Annual Review and Financial Statements for the Year ended 31 July 2025

2024/25 HIGHLIGHTS

UNIVERSITY OF SOUTH WALES

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01 – USW and RWCMD achieve Race Equality Charter bronze award

USW and the Royal Welsh College of Music & Drama (RWCMD) achieved the Race Equality Charter bronze award. The Advance HE Race Equality Charter aims to help universities in their work to improve the representation, progression and success of Black, Asian and minority ethnic staff and students in higher education.

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02 – Success in league table
rankings for USW
USW achieved its highest-ever ranking in the
Guardian University Guide 2025, rising 21 places
to 51st of the 122 institutions on the list. The
University has also risen 18 places in the latest
Complete University Guide 2026 rankings to 77,
achieving the highest rise in Wales.
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03 – USW rises 59 places in the
People & Planet University League
USW saw a huge rise in the 24/25 People & Planet
University League table, placing 23rd out of 149
institutions in the UK and fourth in Wales. The
League is an independent ranking of UK
universities based purely on environmental and
ethical performance. USW scored 100% for
environmental policy and engagement, and 88%
for carbon management, reflecting our target of
becoming carbon neutral by 2040.
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04 – University of South Wales renews police training contracts with four English forces

The University secured renewed contracts to continue delivering police training programmes for Devon and Cornwall Police, Dorset Police, Gloucestershire Constabulary, and Wiltshire Police, strengthening its position as a UK leader in police education.

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05 – ‘Entrepreneurial University of Wales’: USW ranks top three in UK for graduate startups

USW reinforced its position as a leader in fostering entrepreneurial talent, ranking top three in the UK for the total number of graduate businesses in the latest HESA figures. USW also retained its title as best in Wales for new graduate start-ups for the fifth year running.

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06 – USW graduates work in BAFTA-nominated films Wallace & Gromit and Kensuke’s Kingdom

Alumni from USW’s Animation and Film courses worked on some of the most successful films of the past year, including Wallace & Gromit: Vengeance Most Fowl, which won two BAFTAs, and Kensuke’s Kingdom, which was nominated for Best Children’s and Family Film.

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Annual Review and Financial Statements for the Year ended 31 July 2025

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07 – USW and RWCMD awarded prestigious AHRC Doctoral Focal Awards to power the creative economy

USW and the Royal Welsh College of Music and Drama are part of a consortium which has been awarded a major AHRC Doctoral Focal Award in the Creative Economy to strengthen the creative industries across the Celtic arc, spanning Wales, Cornwall and the Scottish Highlands.

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08 – More success for USW at Wales STEM Awards

USW was successful at the Wales STEM Awards again this year, which celebrate the organisations and individuals making a difference to the STEM agenda. The University won the Research Project of the Year award for its work on sustainable and slow-release organic silicon fertilisers (SIFER), led by Dr Christian Laycock.

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ROYAL WELSH COLLEGE OF MUSIC AND DRAMA

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09 – Stevie Wonder awarded Honorary Fellowship by the Royal Welsh College of Music & Drama at Cardiff concert

One of music’s true greats, Stevie Wonder, has been awarded an Honorary Fellowship from the Royal Welsh College of Music & Drama. He was awarded the Fellowship by Principal, Helena Gaunt, and Director of Music, Tim Rhys-Evans, on stage during his concert at Cardiff’s Blackweir Fields.

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10 – Dame Shirley Bassey is RWCMD’s new President

Recently announced as the College’s new President, as a Fellow Dame Shirley Bassey has been close to RWCMD for more than two decades, since her generous support created a valuable singing scholarship in her name. Most recently she attended the President’s Dinner, as well as coming to celebrate the College's birthday last May, meeting with Musical Theatre students, and watching their ‘Sweet Charity’ premiere.

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11 – Prestigious new Bryn Terfel Song Prize honours Welsh heritage and promotes diverse young voices in global song

The College will host the first Sir Bryn Terfel Song Prize for young singers this November. The biennial prize, worth £15,000, highlights cultural and linguistic diversity, with competitors required to sing at least one song in Welsh and one in their native language.

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12 – Innovative residency for two award-winning string quartets

The College launched a transformative two-year string quartet residency, placing world-class string quartet practice at the core of its vibrant community, aiming to influence the future of string playing across Wales and beyond. The initiative embodies RWCMD’s mission to empower its emerging artists to develop creative and sustainable careers at the highest levels and make an impact on the world around them.

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13 Tipping the Velvet: reaching new audiences

The autumn production of ‘Tipping the Velvet’ made a huge impact on the Cardiff South Wales LGBTQ community and our audiences. The cast invited every local lesbian and gay organisation and the theatre was packed with women who had grown up, or come out, or felt represented by author Sarah Water’s novels and their television adaptations – and who had never been to the College before to see a show.

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14 – In memory of Lord RoweBeddoe – Sir Ian McKellen announces the naming of the Shakespeare Prize

Honouring Lord David Rowe-Beddoe, RWCMD’s late Chairman Laureate, world-renowned actor Sir Ian McKellen, announced the naming of the Shakespeare Prize in his memory.

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15 – Empowering the next Welsh jazz generation

National Youth Jazz Wales is an ambitious new partnership between the College, National Youth Arts Wales and Jazz Explorers Cymru, to nurture and inspire the next generation of jazz musicians from across Wales. This new collaboration will offer a Wales-wide talent development programme, ensuring young jazz musicians can access high-quality education, expert mentorship and performance opportunities.

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THE COLLEGE, MERTHYR TYDFIL

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16 – College’s teaching strategy and wellbeing approach praised in positive Estyn report

The college has been praised for its significant role in supporting the community, well-defined teaching strategy, and focus on learner care and support creating a courteous and respectful culture, following its inspection in February 2025.

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17 – College launches strategic partnership with General Dynamics to establish cuttingedge engineering academy

In July 2025, the College announced a landmark strategic partnership with General Dynamics, a global leader in defence and advanced manufacturing. This collaboration will see the launch of a state-of-the-art Engineering Academy designed to equip learners with real-world employability skills in advanced manufacturing and engineering technologies.

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18 – College Merthyr Tydfil accredited by groundbreaking dual career scheme

The College is leading the way with supporting talented athletes in education in Wales, having been accredited by an innovative Talented Athlete Scholarship Scheme (TASS) initiative.

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19 – College recognised nationally for outstanding wellbeing support for learners

The College has been nationally recognised for its exceptional commitment to learner wellbeing through being nominated for a St David’s Award, one of Wales’ highest honours, and also being announced as a finalist in the AoC Beacons NOCN Award for Mental Health and Wellbeing.

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20 – Launch of AMBE Construction Academy in partnership with Tilbury Douglas

The College Merthyr Tydfil and Prince Charles Hospital recently celebrated the successful completion of their highly acclaimed Supported Internship Programme. The initiative, in partnership with Project SEARCH, has provided an invaluable opportunity for young individuals with autism and/or learning difficulties to gain real-life work experience, develop employability skills, and enhance their independence, ultimately facilitating their transition into productive adult lives.

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21 – College of Sanctuary charter and organisational pledge

The College recently signed the College of Sanctuary charter and organisational pledge, committing us to acknowledging and supporting the values of welcome, inclusion, and belonging across our college community. This is part of our ongoing work to build a supportive and inclusive environment where every learner feels respected and empowered.

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22 – College golf star Callum Hook wins national championship and secures international invitation

College Sports learner Callum Hook delivered an outstanding performance recently, winning the intercollegiate tour championship held at Mottram Hall Golf Club in Macclesfield. His impressive victory has earned him an invitation to the prestigious Faldo Junior Tour, which will take place at the Al Ain Equestrian, Shooting & Golf Club in the United Arab Emirates.

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23 – College learners’ partner with Trydan Gwyrdd Cymru to deliver key messages about renewable energy and the environment

Media learners at the College have had the opportunity to work with Trydan Gwyrdd Cymru to develop a short video that would appeal and even inspire curiosity amongst young people about renewable energy and the environment. This project is part of a wider partnership the college has established with the company to support learners to become more aware and develop key skills around green/net-zero.

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"¢ ww.squthwales.a

Annual Review and Financial Statements for the Year ended 31 July 2025

COMMITMENT TO SUSTAINABILITY

USW is committed to making a positive impact through outstanding environmental sustainability performance.

In 2020/21, we developed a Carbon Strategy (2020-30) for emissions reduction that would contribute to achieving Net-Zero emissions by 2040. This includes Scopes 1, 2 and 3 and, over the course of recent years, we have continued to place a greater focus on understanding and improving our Scope 3 reporting – indirect carbon emissions impacts associated with the University’s operations. This category continues to represent the greatest proportion of our overall carbon footprint and will continue to represent our biggest priority as we set about tackling these more challenging impacts.

In concluding our fifth year of the strategy, we remain on track to meet our 2030 target of a 50% reduction in carbon emissions and have sustained healthy progress over the past year. We have taken positive steps to decarbonise our gas heating systems, focused time and effort on better understanding the emissions impact of our IT purchases, undertaken a number of renewable energy projects and welcomed new, sustainably designed buildings into the USW estate.

– CARBON FOOTPRINT SCOPES 1 AND 2

Our combined Scope 1 and 2 carbon footprint demonstrates a marginal increase in emissions of 4,785 tCO2e for 2023-24 due to greater demand for gas-fired heating and hot water and a slight increase in the electricity conversion factor seen in previous years, despite a continued reduction in electricity use across the Estate. This amounts to a 36% reduction against the 2018/19 baseline emissions of 7,532 tCO2e and a 68% decrease from 15,135 tCO2e in 2005/06.

Scope 1 emissions have reduced by 8% compared to the previous year and by 17% since 2018-19. They now comprise 2,569 tCO2e which makes up 8% of the total carbon footprint in 2023-24 having reduced steadily over the years.

Electricity emissions were slightly lower than the previous year due to a reduction in overall consumption. Actual consumption of electricity was down 3% against the previous year and 16% compared to the baseline year 2028-19.

Combined, Scope 1 and 2 emissions contribute 14% towards our total carbon footprint which is now increasingly dominated by Scope 3 activities.

Beyond the infrastructure we are working to foster a cultural shift in our operational practices—transforming how we travel, procure goods, and deliver services whilst gaining momentum in engaging our staff and students in climate literacy.

We will continue to focus on priority areas of our carbon footprint that yield the best cost and carbon savings, collaborating with stakeholders to integrate sustainability into all levels of the University’s decision-making.

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Figure 1: Scopes 1 and 2 Carbon Emissions

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18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
15,129 11,408 13,142 16,712 12,495 10,477 9,591 7,532 7,532 6,494 4,523 4,645 4,768
3,766
2005/06 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 TARGET
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– CARBON FOOTPRINT SCOPE3

Our Scope 3 emissions are by far the largest contributor to our overall carbon footprint. They now comprise 86% of our total footprint and represent all the emissions sources we are indirectly responsible for, such as business and commuting travel, emissions from the supply and treatment of water, the processing of waste, and the purchased goods and services we consume across the University.

Over the course of 2023-24, we have made further inroads into sourcing, analysing and reporting on two additional Scope 3 sources that we previously did not capture. These additional categories are hotel stays and accommodation nomination agreements with our third-party providers. This year, we have seen a drop in our Scope 3 emissions, largely attributable to a reduction in international student numbers and therefore a reduction in international air travel.

Spend on purchased goods and services has remained relatively consistent with previous years and represents the other primary contributor to Scope 3. Total emissions (inclusive of student start and end of term travel) now amount to 29,312 tCO2e. This is a reduction

Fig 2: Scope 3 Carbon Emissions

Hotel Stays 40,000 Nomination 35,000 Agreements Land based emissions 30,000 Land based emissions 25,000 Fuel and energy emissions 20,000 Purchased goods and services 15,000 Water supply and 10,000 treatment Waste generated in 5,000 operations 0 Student start & end of term commuting Student inter-term commuting Home working Staff commuting Business travel

of 22% compared to the previous year despite the addition of two new categories. Both commuting and procurement contribute 87% of total Scope 3 emissions so naturally these are our two primary areas of focus for improvement.

Throughout 2024/25, a number of actions have been completed to build on previous programmes of work and the continual improvement of our sustainability performance at USW and these are outlined below.

GREEN INITIATIVES

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Annual Review and Financial Statements for the Year ended 31 July 2025

WASTE

TRAVEL

BIODIVERSITY

ENERGY

FACILITIES AND MAINTENANCE

30

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Annual Review and Financial Statements for the Year ended 31 July 2025

ACCOMMODATION

PROJECTS

SPACE MANAGEMENT

SUSTAINABLE PROCUREMENT

32

SUSTAINABLE FOOD

LAND USE AND FORESTRY
Land Type Area (ha) Emissions (kgCo2e/ha/yr)
Forestland 5 -27,101
Grassland 14 218
Settlements 13 27,364
Total 32 481

Certain emissions values are negative as the land type absorbs carbon from the atmosphere and this is reflected in our overall carbon footprint.

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Annual Review and Financial Statements
for the Year ended 31 July 2025
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BOARD OF GOVERNORS

The University’s trustees for the year ending 31 July 2025, and subsequently until the November 2025 meeting of the Board of Governors where the financial statements were formally approved:

Independent Governors

Louise Evans (Chair until 31 July 2025) (3/4) Alison Ramsey (4/4) Michael Stevens (3/4) Debbie Jones (4/4) Professor Philip Gummett CBE (4/4) David Francis (4/4) Steve Wilson (3/4) Richard Lloyd-Owen (Chair from 1 August 2025) (4/4) Sanjay Balakrishnan (0/4) Sion O’Connor (4/4) Michael Plaut (4/4) Professor Michael Gunn (until 31 December 2024) (2/2) Stephen Forster (until 31 December 2024) (2/2) Ian Morgan (from 10 February 2025) (2/2) Professor Kathryn Mitchell (from 1 August 2025) Frances Duffy (from 1 August 2025)

Co-opted member with experience of education Sharon James (4/4)

Co-opted members of the Executive

Mark Milton (until 31 December 2024) (2/2) Professor Donna Whitehead (until 31 January 2025) (2/2) Dr James Gravelle (from 10 February 2025) (2/2) Rachel Elias-Lee (from 10 February 2025) (2/2)

Additional co-opted member elected from and by the staff Jonathan Jones (4/4)

Academic Board nominee Geraint Evans (3/4)

Student Governors

Jahid Hasan (until 30 June 2025) (3/3) M. Imam Hossain (4/4) Irfan Fahim (from 7 July 2025) (1/1)

Vice-Chancellor

Dr Ben Calvert (4/4)

Conflicts of interest

Members of the Board of Governors and its committees submit an annual ‘register of interests’ document. Prior to the start of each Board and Committee meeting, members are asked to declare any interests, in general or in respect of specific agenda items[1] .

Independent Members

Independent members[2] are defined by the University’s Instrument of Government, cannot include staff, students or elected members of local authorities and must make up at least half of all governors. The independent members have the authority to approve the appointment of new independent members.

() Attendance information is provided for members serving during the year ended 31 July 2025, expressed as the number of meetings of the Board of Governors attended out of a total number of meetings the member was due to attend in 2024/25.

Members of the University Executive

Dr Ben Calvert (Vice Chancellor)

Professor Donna Whitehead (Deputy Vice Chancellor) (until 31 January 2025)

Dr James Gravelle (Deputy Vice Chancellor) (from 20 January 2025) Mark Milton (Chief Operating Officer) (until 31 December 2024) Professor Martin Steggall (Pro Vice Chancellor (Research) Rachel Elias-Lee (Chief Finance and Operating Officer) Dr Louise Bright (Director of Research and Business Engagement) Zoe Durrant (Chief People and Inclusion Officer) Hannah Coombs (Deputy Pro Vice Chancellor Academic Transformation) (from 14 April 2025)

Paula Keys (Director of Planning, Performance and Transformation) (from 16 December 2024)

[] normal attendance at meetings by relevant officers is illustrated.

1 Article 18: If any member has any pecuniary, family or other personal interest, direct or indirect, in any contract, proposed contract or other matter and is present at the meeting of the Board of Governors or the committee at which the contract or other matter is the subject of consideration, the member shall at the meeting, and as soon as practical after commencement, disclose the fact and, unless otherwise agreed by resolution of the meeting, withdraw from the meeting before consideration of that item, not take part in the consideration or discussion of the contract or other matter or vote on any question with respect to it. A Governor shall not be treated as having a pecuniary interest in any matter by reason only of her/his being a member of the staff or a student of the Institution.

2 Instrument 3 (3): Independent members shall be persons appearing to the appointing authority to have experience of, and to have shown capacity in, industrial, commercial or employment matters or the practice of any profession.

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Annual Review and Financial Statements

for the Year ended 31 July 2025

BOARD OF GOVERNORS

Louise Evans (Chair)

Debbie Jones

Rachel Elias-Lee

Steve Wilson

Dr Ben Calvert

Michael Stevens

David Francis

Richard Lloyd-Owen

Alison Ramsey

Professor Philip Gummett

Professor Donna Whitehead

Mark Milton

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Sharon James

Stephen Forster

Irfan Fahim

Professor Michael Gunn

Ian Morgan

Sanjay Balakrishnan

Jahid Hasan

Michael Plaut

Geraint Evans

Professor Kathryn Mitchell

Jonathan Jones

Imam Hossain

Sion O’Connor

Dr James Gravelle

Frances Duffy

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Annual Review and Financial Statements for the Year ended 31 July 2025

UNIVERSITY COMMITTEES

38

Finance and Resources Committee*

David Francis (Chair) (4/4) Louise Evans (3/4) Richard Lloyd-Owen (4/4) Dr Ben Calvert (4/4) Michael Stevens (4/4) Steve Wilson (3/4) Geraint Evans (4/4) Jahid Hasan (3/4) Ian Morgan (co-opted) (3/3) Chris Sutton (co-opted) (1/1)

[Chief Operating Officer, Chief Finance Officer and Director of Estates and Facilities (until December 2024), and Chief Finance & Operating Officer and Director of Estates and Facilities from 1 January 2025]

Culture People and Values Committee Richard Lloyd-Owen (Chair) (4/4) Louise Evans (2/4) Dr Ben Calvert (3/4) Jahid Hasan (1/4) Debbie Jones (3/4) Sion O’Connor (4/4) Michael Plaut (2/2) Jonathan Jones (3/4) Ian Morgan (from 10 February 2025) (1/1)

Audit Committee*

Alison Ramsey (Chair) (4/4) Professor Philip Gummett (4/4) Sanjay Balakrishnan (2/4) Tanya Philip (co-opted member) (2/4)

[Vice Chancellor, Chief Operating Officer & Chief Finance Officer(until December 2024), and Vice Chancellor and Chief Finance & Operating Officer from 1 January 2025

Remuneration Committee

Richard Lloyd-Owen (Chair) (1/1) Debbie Jones (1/1) Louise Evans (1/1) David Francis (1/1) Jonathan Jones (0/1) Jahid Hasan (0/1) Michael Plaut (0/1) Ian Morgan (1/1)

[Chief People and Inclusion Officer]

[] normal attendance at committee meetings by relevant officers is illustrated.

*There is no cross-representation between the Finance and Resources and Audit Committees.

[Deputy Vice Chancellor (with the exception of consideration of senior staff pay items), Chief People and Inclusion Officer (with the exception of consideration of their own remuneration)]

Academic Board

Chairperson: Dr Ben Calvert (2/4)

Up to eight senior staff nominees of the Vice-Chancellor:

Professor Donna Whitehead (until 31 January 2025) (1/1) Dr James Gravelle (from 3 February 2025) (3/3) Professor Martin Steggall (2/4) Mark Milton (until 31 December 2024) (1/1) William Callaway (3/4) Dr Louise Bright (2/4) Dr Francis Cowe (3/4) Zoe Durrant (0/4) Emma Adamson (3/4)

Eight elected members of academic staff:

Dr Thomas Lambourne (3/4) Dr Hammad Nazir (3/4) Dr Biao Zeng (4/4) Clare Churcher (4/4) Elizabeth Nelson (3/4) Callum Evans (3/4) Dr Zulfia Abawe (1/4)

One member of non-academic staff elected by the nonacademic staff: Jonathan Jones (4/4)

One member of the professoriate elected by the professoriate:

Deans of Faculty and the Principal of RWCMD or nominee:

Professor Georgina Harris (2/4) Gill Ince (3/4) Adam Williams (3/4) Professor Helena Gaunt (0/4) (Iestyn Henson for Professor Gaunt (2/4))

Up to four heads of academic related areas nominated by the Vice-Chancellor:

Nathalie Czechowski (3/4) Donal O’Connor (3/4) Sharon Jones (3/4) Karl Luke (4/4)

Professor Ali Roula (2/4)

Two students nominated by the Students’ Union: Jahid Hasan (until 30 June 2025) (3/3) Georgia Powell (until 30 June 2025) (3/3)

Up to three members co-opted by the Chair: Geraint Evans (1/4) Professor Peter Vaughan (2/4) Vida Greaux (3/4)

() Attendance information is provided for members serving during the year ended 31 July 2025, expressed as the number of meetings attended out of a total number of meetings the member was due to attend.

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Annual Review and Financial Statements for the Year ended 31 July 2025

RESPONSIBILITIES AND BUSINESS OF EACH COMMITTEE

40

FINANCE AND RESOURCES COMMITTEE

Key Responsibilities

The Finance and Resources Committee is responsible for advising the Board on long-term financial strategies. The Committee recommends the approval of the financial regulations including any financial policies therein; approves the University’s insurance and banking arrangements; approves and recommends expenditure proposals, contracts and grant applications; approves the Students’ Union budget for each year in advance and monitors its expenditure. The Committee recommends to the Board annual revenue and capital budgets and longer-term forecasts. It receives regular reports on financial performance (revenue and capital) and financial position and monitors these reports against budget. It develops and maintains an appropriate treasury and investment policy; it monitors borrowing levels and requirements, liquidity and the investment of surplus funds in line with that policy and reports to the Board at least annually. It receives regular reports and accounts for the operation of any trading subsidiary. The Finance and Resources Committee recommends to the Board an annual Estates Programme, including all property maintenance and building projects, and makes recommendations to the Board on the proposed acquisition, sale or lease of property and land. It reviews the ITS Strategy and the Estates Strategy including the monitoring of the financial risks of ITS and Estates activities. It considers any other significant transactions and makes recommendations to the Board. It reviews the financial aspects of research activity and reviews the strategic risks affecting the University for those areas covered by the Committee’s terms of reference and any specific risks assigned to it by the Board. In conjunction with the Audit Committee, it considers the consolidated annual financial statements of the University and its subsidiaries, prepared and duly audited in accordance with Schedule 7 of the Education Reform Act in the presence of the external auditors.

FINANCE AND RESOURCES COMMITTEE

Summary of business 2024/25

During the year ended 31 July 2025 the Finance and Resources Committee considered updates from the Vice Chancellor and the Executive; reports on risk management; a report on the revised budget for 24/25; treasury, banking and insurance; the management accounts; financial forecasts; TRAC (Transparency Report and Accounting Costs) Return; tuition fees for 2025/26, and entertaining undertaken in 2023/24 under the Vice Chancellor's and Chair's Entertainment Expenses Scheme.

The Committee also received regular updates on key strategic projects; the Estates Programme at USW, RWCMD and CMT; IT Services; applications for projects, including any new projects for consideration, and successful bids in 2024/25; and reports to update on the Students' Union finances.

AUDIT COMMITTEE

Key Responsibilities

The Audit Committee is responsible for reviewing the process for ensuring the effectiveness of the financial and other internal control systems. It considers and advises the Board on the appointment of internal auditors and reviews their reports, including follow-up reports on implementation and the scope and effectiveness of their work. It considers and advises the Board on the appointment, independence and effectiveness of the external auditors, reviews the financial statements of the University and its subsidiaries, and considers progress reports on areas of significant risk affecting the University. It also receives reports from the funding council’s audit service as they affect the University and monitors adherence with regulatory requirements. It monitors the performance and effectiveness of the external and internal auditors and makes recommendations to the Board concerning their reappointment, where appropriate.

In conjunction with the Finance and Resources Committee, it considers the consolidated annual financial statements of the University and its subsidiaries, prepared and duly audited in accordance with Schedule 7 of the Education Reform Act in the presence of the external auditors. It will ask for assurances from external auditors that the accounts of the subsidiaries are drawn up in accordance with Companies Act requirements.

AUDIT COMMITTEE

Summary of Business 2024/25

During the year ended 31 July 2025 the Audit Committee considered reports on risk management for the University and its two subsidiary colleges. Internal audit reports were received and discussed with the internal auditors and the relevant senior managers within the institutions, and progress against the agreed plan and the implementation of recommendations was reported. The Committee approved changes to the internal audit programme for the year and received briefings from the internal auditors on key issues affecting the sector. The performance of the internal and external auditors during 2023/24 was considered, along with a review of effectiveness of the Committee for 2023/24. The Committee received a presentation from the external auditors on the 2024/25 external audit plan. Annual reports were considered regarding compliance with the Bribery Act 2010 and the Criminal Finance Act 2019, along with reports on Prevent and information compliance. The Committee also received reports relating to accreditation, the Pathway College, single source actions, public interest disclosures and submissions to the Charity Commission and other regulatory bodies.

During the year, the Committee also noted any Chair’s actions taken outside the meeting; considered and approved the initial budget for 2025/26 and the 5 Year Cash Flow Forecast; received a report on 2025/26 student number planning assumptions; and noted the 2025/26-2026/27 Fee and Access Plan Variation approval letter.

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Annual Review and Financial Statements for the Year ended 31 July 2025

CULTURE PEOPLE AND VALUES COMMITTEE

Key Responsibilities

The Culture People and Values Committee is responsible for overseeing how USW values are incorporated into the culture of the University and the behaviours of its staff, consider how the decisions of the Board and its committees adhere to the Principles of Public Life (Nolan Principles) and the values of USW, and review the culture amongst the staff and student population and assess how the measures in place are embedding USW values into the behaviours of the USW community. It is responsible for approving the University’s health and safety policy, and for keeping under review and advising the Board on arrangements for health and safety in the University. It is responsible for developing and advising the Board on long-term employment strategy. Except where the Board specifically determines that matters be reserved for Board approval, it approves on behalf of the Board such policies and procedures in respect of employment which are expressly mentioned in the Articles of Government and/or which could potentially lead to the dismissal of an employee. It is responsible for making recommendations to the Board on the framework for the pay and conditions of staff other than the Vice Chancellor and other holders of senior posts and makes recommendations to the Board on rules governing staff conduct, staff dismissal and grievance procedures. It also advises the Board on other staffing and employment matters including equality-related matters requiring a decision by the Board and advises the Board on the promotion of equality of opportunity. The Committee advises the Board as appropriate on issues related to the Welsh Language. The Committee makes recommendations to the Board on the arrangements for the appointment of members and officers of the Board of Governors. It is responsible for the consideration of succession planning for Board members and the evaluation of the balance of skills, knowledge, and diversity of the Board. It is also responsible for making recommendations as to membership of Board committees. It is responsible for advising the Board on the remuneration of the Executive, and for approving recommendations from the Vice Chancellor on the remuneration of Deans of Faculty, Directors and equivalent level three posts reporting to members of the Executive. It reviews the remuneration of the Principal of CMT and the Principal of RWCMD and makes recommendations to the College Boards of Directors. It makes recommendations to the Board on severance payments to the Executive and the Clerk to the Governors. It considers institutional interest, sustainability and reputation as well as the public interest and the safeguarding of public funds as part of its deliberations and must require comparative information to inform its decisions.

it has been agreed that from the 2025/26 academic year, the Remuneration Committee will consider all proposals relating to the remuneration of the Executive, Deans of Faculty, Directors and equivalent level three posts reporting to members of the Executive.

CULTURE PEOPLE AND VALUES COMMITTEE

Summary of Business 2024/25

During the year ended 31 July 2025 the Committee considered a wide range of reports including serious incident reporting, safeguarding, whistleblowing, governor correspondence, employment reports including a report from the colleague survey, the People Strategy and updates on the strategic implementation programme in respect of people impact and transformation. The Committee considered a report on employee relations casework statistics, an annual report on student casework, and reports on culture and values at the two colleges. The Committee received updates on equality, diversity and inclusion, along with updates on the Strategic Equality Plan and the Race Equality Charter.

The Committee received an updated Modern Slavery Statement and recommended the update to the Board. The Committee received updates on pay negotiations, recommended the approval of the national pay award and approved proposals in relation to senior staff pay for 2025/26. Reports were considered on health and safety, sustainability and the journey towards net zero, risk management, and equality, diversity and inclusion. The Committee considered reports on the Welsh Language Standards and matters relating to the Welsh language. The Committee received an update and annual report on the Research Concordat. The Vice Chancellor’s reports provided a wide range of information relating to the remit of the Committee and regular External Policy updates. The Committee considered membership of the boards and its committees for 2025/26.

REMUNERATION COMMITTEE

Key Responsibilities

The Remuneration Committee is responsible for advising the Board on the remuneration of the Vice-Chancellor. It makes recommendations to the Board on severance payments to the Vice-Chancellor. It considers institutional interest, sustainability and reputation as well as the public interest and the safeguarding of public funds as part of its deliberations and must require comparative information to inform its decisions.

REMUNERATION COMMITTEE

Summary of Business 2024/25

During the year ended 31 July 2025 the Remuneration Committee considered UCEA data and internal relativities and considered proposals relating to the remuneration of the Vice Chancellor in 2025/26, also noting the annual pay policy statement and the process for the review of senior salaries.

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ACADEMIC BOARD

Key Responsibilities

Subject to the Articles, the Academic Board is responsible for general issues relating to the research, scholarship, teaching and courses at the University, including criteria for the admission of students; the appointment and removal of internal and external examiners; policies and procedures for assessment and examination of the academic performance of students; the content of the curriculum; academic standards and the validation and review of courses; the procedures for the award of qualifications and honorary academic titles; and the procedures for the expulsion of students for academic reasons. Such responsibilities shall be subject to the requirements of validating and accrediting bodies. It considers the development of the academic activities of the University and the resources needed to support them and for advising the Vice Chancellor and the Board of Governors thereon; and advises on such other matters as the Board of Governors or the Vice Chancellor may refer to the Academic Board.

ACADEMIC BOARD

Summary of Business 2024/25

During the year ended 31 July 2025 the Academic Board considered the membership and terms of reference; the schedule of business for 2024/25; the Academic Board report on Governor’s Annual Quality Assurance Statements; the Academic Board and its sub committees annual reports for 2023/24; proposed changes to the regulations; proposed amendments to the Research and Innovation Committee composition and terms of reference; reports on risk management; degree apprenticeship quality assurance reports and updates; updates from the Strategic Implementation Group; a report on the Graduate Outcomes Survey; an update on Student Protection Plans; the summary continuous monitoring report from the Quality Assurance Committee; the summary report of the continuous monitoring exercise for Further Education (FE) collaborative partners; the summary report on external examiner feedback; the student casework annual report 2023/24; revisions to the student charter; and proposed changes to the student casework regulations.

During the year, Academic Board also received; the National Student Survey outcomes; updates on retention and progression, enrolments for 2024/25 and league table performance; and compliance reports in relation to student route sponsorship. The Academic Board also received updates on the financial position for the last financial year; an update on the Effectiveness and Engagement of Academic Board; the Medr strategic plan consultation response; the Researcher Development Concordat Annual Report and an update on the research strategy, including the Research Integrity Annual Statement; the NSS Follow up letter; student recruitment for the next academic year; the approved Degree Outcomes Statement; the use of Pass/Fail at Level 3/4; the annual mock REF exercise outcomes; the OIA annual letter; an update on course closure/suspension and supporting activity; the MEDR consultation on proposed regulatory approach, regulatory framework and quality framework; and an update on 2025/26 membership.

At each meeting, Academic Board received reports from its sub committees and noted the minutes of the Board of Governors, RWCMD Academic Board; Portfolio Oversight Group; and the RWCMD/USW Joint Board of Studies. Members also noted Medr correspondence on prevention of further deaths; the change to foundation year delivery; and the BFU MOE Submission.

During the year, the presentations and discussion items focussed on block and flexible delivery with a final presentation at an extraordinary meeting in July to consider the particulars of the proposed Challenge Based Curriculum approach.

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Annual Review and Financial Statements for the Year ended 31 July 2025

UNIVERSITY EXECUTIVE

Key Responsibilities

As the University’s executive decision-making body, the Executive's key responsibilities are to advise the Vice Chancellor on matters where the Board has explicitly delegated authority to them and to assist in decision making on matters related to those delegations where decisions are not already taken within the wider governance structure (e.g., Academic Board); to advise the Vice Chancellor on the formulation of the annual budget, its underpinning principles and aims and relationship to the Strategic Plan; to review, monitor and if necessary, adjust the in-year budget to ensure that financial targets are met; to oversee the student number planning process, including related annual income estimates; to oversee the annual planning and performance cycle, set and monitor goals for performance and approve department and faculty plans and prioritise investment and resource requirements; to receive reports on the implementation of the University 2030 strategy and progress therein and, where necessary, make decisions on priorities and related investments and resolve conflicts about these; to ensure oversight of the University’s Equality Plan at the most senior levels; to provide support for the Vice Chancellor on long term strategic planning, positioning and direction setting, including responding to the policy environment; to determine significant investment and disinvestment priorities, and to take the overall lead on risk management and compiling/reviewing the risk register. The University Executive also takes the overall lead on health and safety and personal responsibility for driving a health and safety culture throughout the organisation, provides leadership in crisis management, approves reports and recommendations to and manages relationships with, the Board of Governors, oversees and approves key policies of the University and takes a leadership role in promoting quality, diversity and inclusion in USW in all of its work and to oversee programmes of work to do so.

UNIVERSITY EXECUTIVE

Summary of Business 2024/25

During the year ended 31 July 2025, the University Executive considered fortnightly updates on student recruitment and enrolment. Monthly updates were received on student retention, employee relations, political and policy updates and financial reports. Executive received presentations on sustainability, clearing strategy, planning and performance cycle, various transformation projects, research and innovation areas, brand marketing and estate-related projects. Reports were received relating to equality, diversity and inclusion, health and safety, procurement, graduate outcomes, National Student Survey results, HEBCI data, the strategic implementation group and the portfolio oversight group. Executive took part in workshops to review the corporate risk register. Reports were received on the critical success factors, the People Strategy, internal audit reports, tendering opportunities, MEDR returns and updates relating to the University’s Estates Masterplan. The Executive also received relevant updates on league table performance, the USW Students’ Union and the progress on the Welsh Language Strategy.

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Annual Review and Financial Statements for the Year ended 31 July 2025

FINANCIAL REVIEW

PRINCIPAL OBJECTIVES

The principal objectives of the University, in accordance with section 124 of the Education Reform Act 1988 (as amended) are concerned with the provision of higher education, further education and the conduct of research. In addition, the University also undertakes other activities in support of those principal objectives. These include knowledge transfer, consultancy and the provision of accommodation, catering and conference services.

FINANCIAL STRATEGY

Our financial strategy is designed to ensure the long-term viability and sustainability of the University group (Group) by creating an operating environment in which staff are accountable and responsible for the efficient and effective stewardship of our resources.

We continue to maintain and build on our successful financial management in meeting the opportunities and challenges of a constantly evolving higher education landscape. To do this, we will generate cash required to support our strategic programmes and our ability to maintain and enhance our infrastructure. We will control costs, making sound strategic decisions on activities that are either financially sustainable or are in alignment with the University Strategic Plan.

The Group has identified a number of key financial performance indicators that it monitors as part of its financial strategy.

Performance over the last three years shows:


Key fnancial ratios
**as a % of Income **		 2024/25
%		 2023/24
%		 2022/23
%
Operating
(Defcit)/Surplus		 (0.5)
 (0.5) 2.5
Surplus/Defcit 1.1 1.5 0.5
EBITDA 6.6 6.5 10.6
Staf Cost
 58.6 55.9 53.6

Despite a challenging competitive economic environment and a reduction in income, the Group continues to perform well.

The impact of a fixed home undergraduate fee, rising inflation and geopolitical challenges has become evident during the year but despite this, the Group has managed to deliver a small deficit.. A degree of this performance improvement should be considered oneoff in nature, the most material item being:

FINANCIAL PROSPECTS

A difficult operating environment makes resource planning in Higher Education an ongoing challenge. Whilst USW continues to invest and target growth, there are a number of key factors that will need to be managed closely during this period to ensure the University remains Financially Sustainable. There include:

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It is essential that we are able to continue to attract and retain talented students from both the UK and internationally to support our scholarly activities across a diverse range of academic disciplines. In order to do so, we will offer distinctive programmes that students truly want to study, differentiated from our competitors in content and embracing new and progressive delivery models, including flexible delivery, to widen access and enrich the student experience. Challenge Based Curriculum, which will be phased in to delivery from September 2026, demonstrates USW’s commitment to the changing needs of our students and provides a distinctive and graduate employment focussed model of learning that will enhance access and drive improved HE participation for the region. An emphasis on active participation and challenge-based pedagogy for 21st Century employment that is underpinned by focused, high quality research and innovation directs our decision making in relation to our academic offer, our strategic partnerships, our staffing and our learning environments.

Welcomed Welsh Government intervention will see home undergraduate fees increase to £9,535 from September 2026 for USW, which will roll-in with each new intake and offer much needed income to help offset future inflation. Additionally, the recent Welsh Government commitment to raise the Full Time Home Undergraduate fees cap in line with inflation from September 2026, aligned to England, provides much needed opportunity to generate increased fee income going forward. However, the scale of increase will offer limited offset against the accumulative funding gap brought forward and USW will need to continue to consider its business model, rationalise its cost base and target focused areas of growth to remain sustainable. USW has seen some initial shoots of home recruitment recovery in its September 2025 sitting, which is encouraging alongside the ability to reflect future inflation. However, this all needs to be set against a potential reduction in student demand, which will likely result when fee levels are increased, with particular significance for USW, noting our specific customer base. . Increased home market competition for student numbers, coupled with a shift change in international recruitment, alongside additional pension and supply costs make this a stark picture.

However, operating through such uncertainty is probably the biggest challenge at this time, with market volatility, politics and macroeconomic financial factors making budget planning and forecasting increasingly difficult. USW, with the rest of sector continues to monitor this position closely and incorporates a breadth of scenario planning and sensitivity analysis into our cyclical financial planning and performance monitoring.

USW will continue to be financially sustainable in the context of a dynamic higher education environment through the delivery of its 2030 strategy. Our USW Futures financial sustainability programme, now a core feature of our strategy, has been integrated into our transformation, ensuring that USW makes progress that can be maintained in the long-term. Our vision is clear, we want to change lives and our world for the better. Our world is changing at an intense pace and it is our job to equip our students with the skills, knowledge and experience required to maximise their potential and future opportunities in the world of work.

Working in collaboration with industry, our research and innovation will tackle some of the biggest global challenges from energy to health to security and providing answers to real world problems.

Over the next decade, our ambitions are to:

We have significant financial resources available to us as a University, built up over a number of years and providing strong foundations on which to weather change and expedite growth. We continue, through our rolling strategic and financial planning cycles and approach to Transformation, to develop and appraise our investment plans to deliver the 2030 strategy, being shaped as they go by our Financial Strategy, People Plan, Estates Masterplan, Digital Strategy, Strategic Equality Plan and other guiding documents. Further detail on our financial metrics is included in the Financial Strategy section and key risks are addressed in the Principal Risks and Uncertainties section.

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Annual Review and Financial Statements for the Year ended 31 July 2025

ANNUAL FINANCIAL STATEMENTS

These financial statements cover the University of South Wales and its subsidiary undertakings. They have been prepared in accordance with UK GAAP, in compliance with the Financial Reporting Standard 102, issued by the UK Financial Reporting Council, as interpreted by the Statement of Recommended Practice: Accounting for further and higher education, issued by Universities UK. The financial statements are also compliant with the Accounts Direction, stipulating specific additional disclosures issued by our regulator, MEDR.

Financial Performance 2024/25

Income has decreased by 8.8% to £221.6m.

Total expenditure items have decreased by 8.8% to £222.8m. Surplus decreased by £1.3m to £2.4m.

Cash generated from operations decreased by £14.5m to £(9.8m). Net assets have increased by £0.3m to £279.2m.

INCOME

----- Start of picture text -----
Total Income Year on year movement
Donations and
endowments (2,395)
Investment income (1,545)
Other income (1,257)
Research grants and (664)
contracts
Funding body grants 1,150
Tuition fees and
(16,590)
education contracts
0 100,000 150,000 200,000 -20,000 -15,000 -10,000 -5,000 0 5,000
£’000s £’000s
50,000
----- End of picture text -----

structural funded projects. The University has secured research income from several key sources, notably larger project awards such as Horizon Europe, Knowledge Transfer Partnerships , Medical Research Council, and access to collaborative research funding, including two Place Based Impact Accelerator Accounts and postgraduate student funding through the Welsh Graduate School for Social Sciences (funded by ESRC). However, this increase has been partially offset by the sale of CAPSE Limited during the year, which had generated research contracts in the prior years.

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In April 2025, CAPSE Limited was sold following a decision to prioritise University resources into its core activities instead. The University agreed to sell the company to AIS Limited who will continue to build on the success of the company to date and will further research and innovation in battery testing. This transaction has resulted in a reduction in income from this subsidiary during the year.

EXPENDITURE

----- Start of picture text -----
Staff Costs as a % of income
62.0%
60.0%
58.0%
56.0%
54.0%
52.0%
50.0%
2021 2022 2023 2024 2025
----- End of picture text -----

Whilst contributions have increased, this year, a credit was reported for the pension service cost, reflecting the ongoing positive performance of the LGPS scheme.

Throughout the financial year, the University advanced its SIG transformation programme, notably by redesigning professional services, which led to some redundancies. Consequently, staff costs increased during this period, but the result of this redesign will contribute to reducing the staff-to-income ratio to protect the University’s financial sustainability.

CAPITAL INVESTMENT

We have continued to invest year on year in our capital infrastructure and equipment. During this academic year we have spent £28.5m on facilities to ensure the best possible experience for our students and their academic success.

----- Start of picture text -----
Capital Investment
30,000
25,000
20,000
15,000
10,000
5,000
0
2021 2022 2023 2024 2025
£’000s
----- End of picture text -----

The key areas of investment during the year include:

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Annual Review and Financial Statements for the Year ended 31 July 2025

FIXED ASSETS

Impairment tests were undertaken on the buildings within the Group in line with the University’s 2030 Strategy. There were no impairments identified to the fixed assets in this financial year.

CASH FLOW AND FINANCING

The Group reported a negative cash flow from operating activities of £9.8 million, in contrast to a positive cash inflow of £4.7 million in 2023/24. This change is mainly attributed to the University's continued investment in developing state-of-the-art facilities whilst managing the change in the student numbers.

The net funds position (cash and invested balances less bank loans) has decreased from £158.7m to £131.8m. This includes long-term bank loans of £37.5m (2024 £40.8m). These loans are governed by financial covenants, all of which have been met.

The Group holds £169.2m (2024 £199.5m) of cash and short-term investment balances. These balances are invested with a range of UK and overseas banks and building societies, UK government securities and corporate bonds.

PENSIONS

The Group participates in four pension schemes, the Teachers Superannuation Scheme (TSS), the Rhondda Cynon Taff County Borough Council Pension Fund (RCTPF), the Universities Superannuation Scheme (USS) and Scottish Widows Personal Pension Fund.

Compared with last year, market expectations of inflation have fallen slightly from 2.70% to 2.65% but current market responses on corporate bond yields have been reflected in the discount rate increasing from 5.00% to 5.70%.

The net effect is an overall reduction in liabilities by a small amount. As a result, the future USW liability in the RCTPF has increased from £48.5m in 2023/24 surplus to £99.9m surplus in 2024/25. The 2022 valuation reported that USW still had a legal obligation to make contributions to the fund, therefore the Group has adopted the accounting standard IAS 19 to report on Pension surpluses.

Following the calculation to adopt the IAS 19 approach the net present value of future contributions relating to benefit accrual exceeds the net present value of future service costs, measured over the remaining future working lifetime of the active employees. As a result of this, the surplus will be capped at nil across the Group. This approach will note that the value of the net assets will not exceed the value of the liabilities and will report a nil balance on the balance sheet.

It has not been possible to identify the institution’s share of the underlying assets and liabilities in relation to the TSS and USS scheme and as such they are accounted for as if they were defined contribution schemes

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VICE-CHANCELLOR[,] S EMOLUMENTS

The Board of Governors is charged with setting the remuneration of the Vice Chancellor, who is Chief Executive of the University of South Wales Group, which includes the College Merthyr Tydfil and the Royal Welsh College of Music & Drama.

The Vice Chancellor commenced their role in September 2021. In determining the remuneration for the incoming Vice Chancellor at this time, the Search Committee was provided with benchmarking data. It is also important to consider the scope of the Vice Chancellor's role at USW. The role has significant wider Group responsibilities, including line management of the principals of the Colleges (RWCMD and CMT). The Vice Chancellor is also a Director of both RWCMD and CMT.

At the 2025 Remuneration Committee, members were provided with relevant sector benchmarking which compared the Vice Chancellor’s pay with different groups of comparable institutions across the higher education sector, along with internal relativities.

The comparator groups considered were those with similar contexts to the University of South Wales. The comparator groups included Welsh universities; post-1992 universities with comparable turnovers; and those with lower turnovers ranges; all post-1992 universities; and members of the University Alliance (of which the University of South Wales is a member).

In 2024, as with previous years, the Remuneration Committee recognised that the Vice-Chancellor's remuneration was still behind the relevant market comparators and continued to support a direction of travel to address this gap over time. However, the Committee (and subsequently the Board) in July 2024 noted the challenging financial environment and approved the application of the equivalent to the national pay award to the Vice-Chancellor’s salary. Following the approval of the pay award, the Vice Chancellor’s salary effective from 1 August 2024 was £223,500, rising to £228,165 from 1 March 2025 in line with the national pay award arrangements.

At the July 2025 Board of Governors meeting the Board considered the Remuneration Committee’s recommendation on salary review, and the Chair’s report on performance. There are numerous additional mechanisms whereby the performance of the University and therefore the Vice Chancellor is considered, for example, Board of Governor and Audit Committee meetings, both of which take place throughout the year.

The Remuneration Committee recognised the continuing challenging financial environment and the Committee’s recommendation to the Board (which was accepted) was that no change be made to the ViceChancellor’s salary for 2025/26. Therefore, the Vice-Chancellor’s salary from 1 August 2025 will remain at £228,165.

It was noted that the Vice Chancellor’s salary remained below the average and median levels applied elsewhere.

The Chair of the Board of Governors reported to the Chair of Remuneration Committee and other members of the committee that she had monitored the Vice Chancellor’s performance regularly throughout the year. Regular meetings, two or three times per month, take place between the Chair and the Vice Chancellor, with specific reviews against the set objectives taking place on a half yearly basis and at the end of the 12-month period.

The report provided the Committee with sufficient information to understand the overall performance of the Vice Chancellor so that the Committee, and the Board of Governors, was able to gain assurance that there is a process in place for setting objectives, identifying appropriate measurement, and reviewing performance on a regular basis.

The Vice Chancellor’s objectives are agreed by the Chair of the Board of Governors and the Vice Chancellor. These are split into longer term strategic goals, and shorter-term objectives and activities which are set to respond to the current and emerging issues affecting the University and the two Colleges within the USW Group and are centred around six themes: Operational and quality priorities; Strategic implementation; Brand and reputation; Infrastructure; People, and External engagement. The Remuneration Committee received a report on the key objectives and achievements to date.

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Annual Review and Financial Statements for the Year ended 31 July 2025

PRINCIPAL RISKS AND UNCERTAINTIES

The Group has identified a number of higher-level strategic risks that it monitors on a regular basis. These include:

Recruitment and Retention

The Group has a stated ambition to be the University of choice in Wales and beyond for students who value vocationally focused, industry linked, challenge-based education and applied research. A highly competitive post-pandemic environment, alongside cost-ofliving pressures and a buoyant labour market creates uncertainty and risk for full time undergraduate recruitment and retention. Student behaviours and expectations have changed, which alongside government policy reform, lower Welsh HE participation rates and greater market choice, make recruiting and retaining students more of a challenge. Portfolio offer, market distinctiveness and brand strategy underpin USW’s ambitious plans for home market growth and are a fundamental component of our SIG 2023 – 2026 transformation.

Whilst the international recruitment market has provided opportunities for student number growth, recent changes to government immigration policy and behaviour highlight the fragility and therefore risk of this income stream, with international marketing efforts now refocussed and diversified to explore a broader range of international opportunities.. It also brings additional risk in respect of exposure to the impact of geo-political and economic situations, which in more recent examples in Russia/Ukraine, Israel/Palestine and Sri Lanka affecting recruitment, student support and bad debt. Targeted International recruitment strategies, good agent relationships, strengthened financial policy and regular monitoring of international markets will help manage this changing area going forward.

Our Academic Plan, alongside launch of our Challenge Based Curriculum academic delivery model in 2026, seeks to build on our strong academic offer and promote best practice that is found effortlessly across the length and breadth of our campuses. The University will also continue, through its refresh of Student Journey systems and new consolidated Student Life department improve applicant and student experience and address potential recruitment cycle weak spots.. Significant investment has and will continue to be made in improving the value proposition for our students and ensuring we create access and opportunity to higher education. This in turn will help USW regain and grow student numbers and improve rates of retention and progression..

Financial Sustainability

The economic operating environment continues to create significant challenge and uncertainty , which has been felt particularly acutely in the HE Sector. A historically flat tuition fee, withdrawal of EU related funding streams, high inflation, escalating costs and supply chain delays, together with an increasingly challenging international recruitment landscape and a highly competitive UK (and Welsh) market, also brings financial challenge and threatens our future financial sustainability.

USW now needs to invest in its Strategy 2030 to remain competitive and bring about development and improvement in; maximising graduate success and opportunities, research and innovation excellence, extending our external focus and delivering operational transformation. Income and cost pressures could limit our capacity to make these long-term commitments and restrict opportunity to seed future development and growth. Managing both growth and investment, and efficiency and saving concurrently is complex, which alongside reducing cash creates increased institutional pressure and risk in terms of capacity, quality and delivery.

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The Group mitigates this risk through strategic financial planning, ensuring resource is prioritised in areas that will bring it closer to achieving its critical success factors and strategic goals. This together with regular, data driven management of financial performance and effective financial controls ensure that USW are efficient and agile and can take opportunity to drive transformation, maximise contribution and navigate financial risk. USW 2023 – 2026 now drives financial sustainability and will through its portfolio of Transformation bring about the institutional change required. In order to survive, USW will need to adapt its business model and resource strategy to both reflect reduced levels of funding and change in institutional scale and complexity.

Operational Transformation

One of the key enablers of our 2030 Strategy is Operational Transformation. This includes a focus on the following areas: focused, talented and ambitious staff, fit for the future operations and our financial strength. Failure to deliver operational transformation at USW will mean that the University is at risk of not having the appropriate running gear to support the achievement of its strategic vision and goals and thus secure our long-term survival. The risk of not successfully implementing identified change around people, infrastructure and resource to support current and future learning, research and innovation and operational delivery to enable our strategy, is fundamental to our future. USW has an established Transformation Programme in place, which is overseen by Executive to deliver change and mitigate this risk. To ensure Operational Transformation can be achieved, whilst maintaining core business service quality and delivery, renewed focus will be given to scale, pace and priority of change, enabling USW to have the capacity to be agile and to bring staff and students on the journey.

Academic Performance and Reputation

USW has achieved significant improvement across all league tables this year, including: an 8 place rise in the Guardian League table to 43, an 18 place rise in the Compete University Guide to 77, a 12 place rise in the Good University Guide to 82 and a 19 place rise to 86 in the Daily Mail University Guide, which represents our highest ever rankings across them all. This together with a close to benchmark improvement in NSS overall positivity is encouraging and reduces overall risk relating to reputation and student attraction in respect of academic performance. However, whilst USW has improved in terms of graduate outcomes, good honours and value added, there is work to do in respect of teaching performance and student experience in some areas, all of which potentially impact on both recruiting students and engaging in high calibre research and the ability to recruit staff and attract funding.

Health and Wellbeing

The USW Well-being strategy 2023 – 2025 sets out the University’s commitment to prioritise the well-being of colleagues and students by adopting a whole University approach and become a Healthy University. There are multiple and complex demands on individuals and communities and the current pressures of industrial action, cost of living and the transformational change required in Higher Education for a financially sustainable future, make this a real risk for USW. Creating a culture of care and shared responsibility and partnership for the four elements (Emotional Physical Social Financial) of well-being, remain important. Oversight of the well-being strategy rests with the Executive team through the steering and oversight of the USW People and Culture Board, which through its wider role,ensures delivery against the well-being plan.

Information Security

The loss of data or control of our data caused by digital attacks, negligence, physical loss or human error could jeopardise the smooth operation of the University and/or result in a failure to comply with legislation resulting in financial penalties, additional costs and reputational damage. Furthermore, cyber disruption could limit the ability of USW to pursue its digital strategy and implement digital transformation. In mitigating these risks, the University has a robust structure of governance and oversight through the work of the Digital Strategy Group, the Information Security Steering Group and Data Governance Group whose activity prevents and creates mechanisms to detect and respond to digital disruption, which alongside continued investment provides a strong means of data and cyber defence.

Pension

There is an ongoing risk that pension costs rise and/or become unaffordable generally, which will affect employer contribution rates, balance sheet liabilities and/or exposure to compliance costs of remaining within externally administered schemes including LGPS, USS and TPS. Although USW has to some extent limited this risk into the future with the introduction of the Professional Services Scheme, financial risk and uncertainty is inherent in these defined benefit schemes and requires oversight and management.

David Francis Chair of Finances and Resources Committee

Rachel Elias-Lee Chief Finance Officer

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Annual Review and Financial Statements for the Year ended 31 July 2025

PUBLIC BENEFIT STATEMENT

INTRODUCTION

The University of South Wales became a registered charity (number 1140312) on 9th February 2011, having previously been an exempt charity under the terms of the Charities Act 2003. The registered address of the charity is Treforest, Pontypridd, CF37 1DL. The members of the Board of Governors are the trustees of the charity and as such have due regard to the Charity Commission’s guidance on public benefit and its supplementary guidance on the advancement of education for the public benefit. Under section 124 of the Education Reform Act 1988, the University of South Wales Higher Education Corporation has power to:

a) provide higher education; b) provide further education;

c) carry out research and to publish the results of research.

The University promotes the advancement of education and learning for the public benefit through the provision of advanced courses of instruction, leading to the award of degrees or other appropriate qualifications. We undertake research in pursuit of new knowledge and understanding driven by a spirit of academic enquiry. In keeping with our role as an institution firmly embedded in its local, regional, and national communities, we also have great strengths in problem driven research conducted in partnership with external stakeholders.

We provide, maintain, and improve facilities and services for the benefit of the student body and our local communities, e.g., accommodation, catering, sporting facilities, performance space and public amenities (e.g., chiropractic clinic). We also have due regard to any detrimental harm that may arise from our activities and, particularly, to the impact of our campus developments on our immediate localities. We aim to minimize this impact through extensive community discussion and consultation in addition to working closely with the relevant local authorities.

54

CORPORATE GOVERNANCE

The University is committed to high standards of corporate governance. Whilst the University, being a higher education corporation formed by statute and with charitable status, does not fall within the corporate governance reporting requirements of the London Stock Exchange, the University wishes to demonstrate that its governance is undertaken in an open and accountable manner and that it complies with best practice within the higher education sector. The University has adopted and implemented the ‘Governance Charter for Universities in Wales’ and undertakes an annual review of the Commitment to Action.

This statement describes how the relevant principles of corporate governance are applied to the University. The Boards of Directors of the Royal Welsh College of Music & Drama Ltd (RWCMD) and the Merthyr Tydfil College Ltd (MTC) are responsible to the Board of the University which is the sole ‘member’ of those corporations. The committees of the Board of Governors of the University act as committees for the Boards of Directors of RWCMD and MTC as appropriate, except insofar as those Boards (with the agreement of the University Board) have their own arrangements. The Board of Governors carries the overall responsibility for ensuring there is a sound system of risk management, control, and governance.

The governors discharge this responsibility through the following elements:

The University’s approach for the effective management of risk is set out below:

planning process which is the means by which the Executive determine and co-ordinate the University’s academic and other activities;

The Board is of the view that there is an ongoing process for identifying, evaluating and managing the University’s significant risks, that it has been in place for the Year ended 31 July 2025 and in place up to the date of approval of the Annual Review and Financial Statements, that it is regularly reviewed by the Board and that it accords with the internal control guidance for directors on the UK Corporate Governance Code as amended by the British Universities Finance Directors Group.

www.southwales.ac.uk

www.southwales.ac.uk

55

Annual Review and Financial Statements for the Year ended 31 July 2025

SUMMARY OF THE UNIVERSITY’S STRUCTURE OF CORPORATE GOVERNANCE

The University’s Board of Governors comprises members appointed in accordance with the Instrument of Government of the University, the majority of whom are lay independent members with relevant experience in business and the professions. The roles of the Chair and Deputy Chair of the Board are separated from the role of the University’s Vice-Chancellor (as Chief Executive). Those matters specifically reserved to the Board for decision are set out in the Articles of Government of the University. The Board holds to itself the responsibilities for the ongoing strategic direction of the University, the effective and efficient use of resources and the approval of major developments and receives regular reports from senior management. The Board meets four times a year and for the year ended 31 July 2025 had three standing Committees: Finance

and Resources, Audit, and Culture, People and Values. The Remuneration Committee makes recommendations on the remuneration of the Vice Chancellor. The Finance and Resources Committee develops and advises the Board on long term financial strategies, recommends to the Board annual revenue and capital budgets, reviews and reports to the Board on the annual financial statements and receives regular reports on budgetary performance. In addition, the Finance and Resources Committee recommends the approval of the Financial Regulations, keeps under review financial operating procedures, approves regulations for and monitors the investment of surplus funds and borrowing requirements and approves expenditure above the limits of delegations specified in the Financial Regulations.

56

TRUSTEES DURING THE YEAR ENDING 31 JULY 2024

Louise Evans (Chair) Dr Ben Calvert Alison Ramsey Michael Stevens Debbie Jones Professor Philip Gummett David Francis Steve Wilson Richard Lloyd-Owen Michael Plaut Sharon James Sanjay Balakrishnan Stephen Forster Ian Morgan (until 31 December 2024) (from 10 February 2025) Sion O’Connor Professor Michael Gunn Mark Milton (until 31 December 2024) (until 31 December 2024) Professor Donna Whitehead Jonathan Jones (until 31 January 2025) Geraint Evans Jahid Hassan M. Iman Hossain Irfan Fahim (from 1 July 2025) Rachel Elias-Lee Dr James Gravelle (from 10 February 2025) (from 10 February 2025)

STATEMENT OF INTERNAL CONTROL

The Audit Committee reviews the process for ensuring the effectiveness of the financial and other (non-academic) internal control systems. In doing this the Audit Committee makes recommendations on the appointment of internal audit, reviews their reports, including follow up reports on implementation and the scope and effectiveness of their work. The internal audit schedule aligns to the principal risks and uncertainties the University is facing.

The Audit Committee also makes recommendations on the appointment of external audit and reviews the financial statements of the University, incorporating any subsidiaries, after review by the Finance and Resources Committee and prior to submission to the Board of Governors, reviews the management letter, and receives and considers progress reports on areas of significant risk identified by the Vice-Chancellor and the Executive. The Audit Committee also receives an annual report on the University’s compliance with the Bribery Act 2010, and jointly with the Finance and Resources Committee, reviews compliance with Medr Financial Memorandum.

REVIEW OF EFFECTIVENESS AND COMMITTEE OF UNIVERSITY CHAIRS CODE OF GOVERNANCE

The Board of Governors undertook a review of effectiveness with an external consultant, Hugh Jones, in 2021/22, with the final report being presented to the Board of Governors on 6 July 2022. The review considered the effectiveness of the Board of Governors and its committees in fulfilling its responsibilities as laid out in the Articles of Government and measuring it against best practice in the sector. Specifically the review considered how the

recommendations made in the last review have been implemented and their impact on effective governance; the implementation of outcomes from the Camm Review and the CUC HE Code of Governance; the working relationships and behaviours of the Board and its members, including the conduct of meetings, the active involvement of members, the effectiveness of communication and information, and if the University’s governance framework is fit for purpose and could it be enhanced in any way. The review was conducted through desk reviews of USW practice against the requirements of the CUC Code and the Camm review; the observation of meetings of the Board of Governors, the Audit Committee, the Finance Committee and the Culture, People and Values Committee; interviews with board members; interviews with the Chief Executive of HEFCW and the Chief Executive of Universities Wales, as key stakeholders; interviews with members of the governance team, and a survey of Board members.

The final report concluded that governance at the University of South Wales is strong and effective, with a healthy culture of open discussion, challenge and inclusion on the Board. Delegation to committees is clear and consistent, and Board membership comprises impressive individuals who work together well. It was concluded that governance at the University meets the formal test of its effectiveness: that is, the CUC Higher Education Code of Governance to which it has subscribed. It was determined that the University has made good progress in implementing the outcomes from the Camm Review. There were a number of recommendations made within the report which were accepted by the Board of Governors. Implementation of the recommendations was monitored via regular reporting to the Culture, People and Values Committee and completed in 2023/24.

The Board of Governors is due to undertake its next review of effectiveness during the 2025/26 academic year.

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Annual Review and Financial Statements for the Year ended 31 July 2025

GOVERNANCE CHARTER FOR UNIVERSITIES IN WALES AND COMMITMENT TO ACTION

The Board received an update on the implementation of actions from the Governance Charter for Universities in Wales and the Commitment to Action plan in November 2024. The report confirmed continued progress towards full compliance with the Commitment to Action.

Camm Review – update on agreed Charter actions

Understanding culture

The Culture, People and Values Committee has been established which takes forward most elements within this set of actions. 360[0] feedback was undertaken for the Chair in 2021/22, and the Vice Chancellor undertook a 360[0] review in 2022/23 along with other members of the Executive. This is planned to be a rolling programme of reviews.

Stakeholder engagement

The Board of Governors received the latest annual report on stakeholder engagement in September 2024. The Stakeholder Engagement Framework was approved in July 2023.

Size and Shape of the Governing Body

A defined role description for the Chair was already in place, with less structured descriptions of other roles. The Culture, People and Values Committee received defined role descriptions for other roles in April 2024. The University is already compliant in the actions relating to the size of the governing body and tenure of nonexecutive members.

Strategic Oversight

The Board has explicitly chosen not to publish the institution’s key strategic and performance measures. The University is compliant regarding oversight of strategic development and delivery and risk management.

Lay governor independence and conflict management

The University awaits the sector guidance on independence for lay members and will take forward the associated actions once this has been received. A role description for the Secretary/Clerk was reviewed by the Board of Governors in March 2023 and will be reviewed every 3 years. The University is compliant regarding the identification and management of conflicts of interest.

Remuneration governance

The University does not award bonus payments and awaits Medr guidance on remuneration reporting requirements. The review of terms of reference of committees are completed on an annual basis and was last completed in July 2025. Work was completed during 2022/23 to review the roles which are subject to senior staff pay committee consideration (via the Culture, People and Values Committee), with a revised selection of roles considered from June 2023.

Succession planning

Consideration of succession planning is being developed as part of the Culture, People and Values remit. The Board of Governors last received an update in this regard in April 2024 and consideration was given to this as part of the recruitment process which was undertaken in 2024/25.

Diversity and Inclusivity

The University is compliant in the actions within this area and awaits the work being undertaken within the sector.

Long-term viability

The University awaits sector guidance on long term viability reporting.

Risk Management

The University is compliant with the actions within this area.

Whistleblowing

The University is compliant with the actions in this area and developed a revised Public Interest (whistleblowing) Procedure during 2021/22, which has been approved and is publicised annually.

Annual report

The University is compliant in this area.

Information

The University awaits sector guidance on this action.

Governor Development

The University’s induction arrangements have been enhanced in recent years and ‘refresher’ sessions are offered to all governors annually. The University awaits further sector guidance on governor development resources and information.

Lay member recruitment

The University uses external search agents or external adverts for board appointment processes. From 1 August 2024, the University appointed a current member of the College Merthyr Tydfil Board of Directors (who had originally been appointed via a search agent process from 1 August 2023) as Chair of that Board from 1 August 2024 and therefore a member of the University Board. The skills matrices are reviewed on a yearly basis; the latest review was conducted in the Spring of 2025. The University undertook a recruitment process with an external search agent during 2024/25 for new members of the governing body, including the Chair.

58

INDUCTION, DEVELOPMENT, AND IMPROVING EFFECTIVENESS

The University Board constantly reviews its effectiveness through the Culture People & Values Committee and undertook a formal review of effectiveness in 2021/22. Changes in 2020/21 as a result of the Camm Review and other considerations included the creation of the Culture, People & Values Committee, which brought together the existing committee responsibilities of employment policy, EDI, Welsh language, health & safety, nominations, governance, senior pay and the additional responsibilities for culture & values. In addition, the Board will continue a rolling programme of 3600 appraisals which began with the Chair of the Board and the Vice Chancellor. The Board continues an annual rolling programme of governor links with different parts of the University and a rolling programme of induction and briefing sessions (available to all governors) from different parts of the University which commenced in autumn 2021. The University’s induction programme includes regulator/Advance HE events, internal sessions with management and lay governors, ‘buddies’ and a general induction session.

EQUALITY, DIVERSITY & INCLUSION

The Board through its Culture, People & Value Committee has had a stated goal of a Board that reflects the diversity of the region it serves. The Board has had a gender balance in recent years and some significant diversity. In 2020/21 the University with the use of adverts and search agents appointed five new governors, the appointments moved the Board forward in terms of a number of aspects of diversity but lost ground on its gender balance. The Board reflected that whilst continuing to strive for all areas of diversity it would with its next lay governor recruitment seek to regain the gender balance it achieved over recent years. All lay governor recruitment is informed by a Skills (Experience & Diversity) Matrix which is regularly updated. All lay governors are asked to supply diversity information that mirrors that of staff and students. The University undertook a recruitment process with an external search agent during 2024/25 for new members of the governing body and appointed two female lay governors, moving the Board in a positive direction towards a gender balance.

As part of the University’s commitment to striving for diversity, two governor apprentices were appointed at the start of the 2024/25 academic year.

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for the Year ended 31 July 2025

Annual Review and Financial Statements

RESPONSIBILITIES OF THE BOARD OF GOVERNORS

In accordance with the Education Reform Act 1988 (as amended), the Board of Governors of the University of South Wales is responsible for the administration and management of the affairs of the University Group, including ensuring an effective system of internal control and is required to present audited financial statements for each financial year. The Board is responsible for preparing the Financial Statements in accordance with applicable law and regulations. The law applicable to the University requires the Board to prepare financial statements for each financial year. Under that law the Board of Governors has prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under that law the Board must not approve the financial statements unless it is satisfied that they give a true and fair view of the state of affairs of the University and the consolidated group and of the incoming resources and application of resources, including the income and expenditure of the University and the consolidated group for that period. In causing the financial statements to be prepared, the Board has to ensure that:

Reform Act 1988 (as amended), the Accounts Direction issued by the Higher Education Funding Council for Wales, the Statement of Recommended Practice: Accounting for Further and Higher Education Institutions (SORP) and other relevant accounting standards. In addition, within the terms and conditions of a Financial Memorandum between the Higher Education Funding Council for Wales and the Board of the University, the Board, through its designated office holder, is required to prepare financial statements which give a true and fair view of the state of affairs of the University and the Group and of the surplus or deficit and cash flows for that year.

The Board has taken reasonable steps to:

60

www.southwales.ac.uk 61

Annual Review and Financial Statements for the Year ended 31 July 2025

INDEPENDENT AUDITORS REPORT

INDEPENDENT AUDITOR’S REPORT TO THE BOARD OF GOVERNORS OF UNIVERSITY OF SOUTH WALES

Report on the audit of the financial statements

OPINION

We have audited the financial statements of University of South Wales (“The University”) for the year ended 31 July 2025 which comprise the Consolidated and University Statements of Comprehensive Income, the Consolidated and University Statement of Changes in Reserves, the Consolidated and University Balance Sheets and the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.

CONCLUSIONS RELATING TO GOING CONCERN

In auditing the financial statements, we have concluded that the Board of Governors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Board of Governors’ with respect to going concern are described in the relevant sections of this report.

In our opinion the financial statements:

BASIS FOR OPINION

We have been appointed as auditor under the Charters and Statutes of the University and under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are

OTHER INFORMATION

The Board of Governors (the members of which are the Trustees of the University for the purposes of charity law) are responsible for the other information. The other information comprises the information included 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. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

62

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

RESPONSIBILITIES OF GOVERNORS’ FOR THE FINANCIAL STATEMENTS

As explained more fully in the Governors’ responsibilities statement set out on page 60, the Governors’ are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Governors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Governors are responsible for assessing the group’s and the parent University’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Governors either intend to liquidate the group or the parent University or to cease operations, or have no realistic alternative but to do so.

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Annual Review and Financial Statements for the Year ended 31 July 2025

AUDITORS 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of noncompliance with laws and regulations related to compliance with Higher Education regulatory requirements of Medr and charitable law applicable to charities in England and Wales, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Further and Higher Education SORP 2019, the Accounts Direction to Higher Education Institutions in Wales for 2024/25, the Charities Act 2011, taxation legislation and pensions legislation.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the improper cut-off of revenue other than that from student fees and management override of controls.

Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

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 2024/25 issued by Medr (“the Accounts Direction”).

The regulation of the Welsh Higher Education sector was transferred from the Higher Education Funding Council for Wales ('HEFCW') to Medr, the Commission for Tertiary Education and Research on 1 August 2024. The Financial Management Code and Terms and Conditions of Funding 2024/25 issued by HEFCW remain in place at the date of our report. In view of this transfer, any reference to Medr in our report should be read as also referring to HEFCW.

In our opinion, in all material respects:

USE OF OUR REPORT

This report is made solely to the University’s Governors’, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the Board of Governors’ 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 Board of Governors’ as a body for our audit work, for this report, or for the opinions we have formed.

Steve Harper for and on behalf of HaysMac LLP, Statutory Auditor

10 Queen Street Place London, EC4R 1AG

Date: 28 November 2025

HaysMac LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

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

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www.soUth￿leS.èc.uk 65

Annual Review and Financial Statements

for the Year ended 31 July 2025

CONSOLIDATED AND UNIVERSITY STATEMENT OF COMPREHENSIVE INCOME

Income
Notes		 University
£'000s
130,183
18,394
5,607
19,890
3,984
-

Consolidated
£'000s
145,323
39,842
6,431
23,107
4,911
1,997

University
£'000s
147,579
19,227
4,988
22,537
5,833
-
Consolidated
£'000s
161,913
38,692
7,095
24,364
6,456
4,392

Year ended 31 July 2025
Year ended 31 July 2024
Tuition fees and education contracts
Funding body grants
Research grants and contracts
Other income
Investment income
Donations and endowments

1
2
3
4
5
6
Total income 178,058
221,611
200,164
242,912
Expenditure
 89,243
82,700
11,441
1,398
129,960
76,957
14,213
1,667
96,983
93,676
11,451
1,677
135,808
91,273
15,136
2,007
Staf costs
Other operating expenses
Depreciation and amortisation
Interest and other fnance costs
7
11,12
8
Total expenditure
9		 184,782
222,797
203,787
244,224
Defcit before other gains and losses
Gain/(Loss) on disposal of fxed assets
Gain on Investments
Surplus / (Defcit) before tax
Taxation
10		 (6,724)
450
3,086
(1,186)
326
3,271
(3,623)
(707)
5,499
(1,312)
(702)
5,758
(3,188)
~~**~~
2,411
~~**~~
1,169
3,744
~~\~~

28

28
-

-
Surplus/(Defcit) for the year (3,160)
2,439
1,169
3,744
Actuarial loss/gain in respect of funded pension scheme
Actuarial gain in respect of unfunded pension scheme
Total comprehensive income for the year
Represented by:
Endowment comprehensive income for the year
Restricted comprehensive income for the year
Unrestricted comprehensive income for the year
Attributable to the Institution
Attributable to the non-controlling interest

26		 (2,022)
-
(2,147)
5
1,642
-
1,568
5
(5,182)
297
2,811
5,317
50
-
(5,232)
(5,182)
-
(5,182)
612
146
(461)
297
-
297
70
-
2,741
2,811
-
2,811
425
3,066
1,826
5,317
(61)
5,256

66

CONSOLIDATED AND UNIVERSITY STATEMENT OF CHANGES IN RESERVES

Income and Expenditure Income and Expenditure Reserve Non-controlling Total
interest Reserves
Endowment Restricted Unrestricted
Consolidated £'000s £'000s £'000s £'000s £'000s
Balance at 1 August 2024 5,656 5,466
267,781

-		 278,903
Surplus from the income and expenditure statement 612 146 1,681
-		 2,439
Other comprehensive income - - (2,142)
-		 (2,142)
Total comprehensive income/(expense) for the year 612 146 (461)
-		 297
Balance at 31 July 2025 6,268 5,612 267,320
-		 279,200
Income and Expenditure Reserve Non-controlling Total
Endowment Restricted Unrestricted
interest		 Reserves
Balance at 1 August 2023 £'000s
5,231		 £'000s
2,400		 £'000s

265,955

£'000s
61		 £'000s
273,647
Surplus from the income and expenditure statement 425 3,066 253
-		 3,744
Other comprehensive income - - 1,573
-		 1,573
Dividends paid to Non Controlling Interest - - -
(61)		 (61)
Total comprehensive income for the year 425 3,066 1,826
-		 5,256
Balance at 31 July 2024 5,656 5,466 267,781
-		 278,903
Income and Expenditure
 Reserve Non-controlling
interest		 Total
Reserves
Endowment Restricted Unrestricted
University £'000s £'000s
 £'000s
£'000s		 £'000s
Balance at 1 August 2024
876
-
244,705


-
245,581
Surplus from the income and expenditure statement 50 -
(3,210)

-		 (3,160)
Other comprehensive income - - (2,022)
-		 (2,022)
Total comprehensive income/(expense) for the year 50 - (5,232) - (5,182)
Balance at 31 July 2025 926 - 239,473

-		 240,399
Income and Expenditure Reserve

Non-controlling		 Total
interest Reserves
Endowment Restricted Unrestricted
£'000s £'000s
 £'000s
£'000s		 £'000s
Balance at 1 August 2023
806
-
241,964


-		 242,770
Surplus from the income and expenditure statement 70 -
1,099

-		 1,169
Other comprehensive income - - 1,642
-		 1,642
Total comprehensive income for the year 70 - 2,741
-		 2,811
Balance at 31 July 2024 876 - 244,705
-		 245,581
**9 **

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Annual Review and Financial Statements

for the Year ended 31 July 2025

CONSOLIDATED AND UNIVERSITY BALANCE SHEET

Notes University
£'000s

135
-
194,784
-
2,056
Consolidated
£'000s
143
(429)
248,553
500
-
135
University
£'000s

285
-
179,146
-
2,056
-
Consolidated
£'000s
309
(462)
237,509
500
-
135
At 31 July 2025
At 31 July 2024
Non-current assets
Intangible assets
Negative goodwill arising on acquisition
Tangible Fixed assets
Heritage assets
Investments
Other assets
Current assets
Inventory
Trade and other receivables
Investments
Cash and cash equivalents
Less: Creditors: amounts falling due within one year
Net current assets
11
12
13
14
15
16
22
17
196,975
74
23,348
92,736
42,999
248,902
197
21,077
110,749
58,495
181,487
71
27,136
114,870
51,333
237,991
193
17,973
129,490
70,021
159,157
(60,020)
99,137
190,518
(70,545)
119,973
193,410
(69,196)
124,214
217,677
(81,339)
136,338
Total assets less current liabilities 296,112
368,875
305,701
374,329
Creditors: amounts falling due after more than one year
Provisions
Pension provisions
Other provisions
18
19
19		 (45,391)
(4,653)
(5,669)
(78,686)
(5,284)
(5,705)
(46,187)
(6,424)
(7,509)
(80,755)
(7,126)
(7,545)
Total net assets 240,399
279,200
245,581
278,903
Restricted Reserves
Income and expenditure reserve - endowment reserve
Income and expenditure reserve - restricted reserve
Unrestricted Reserves
Income and expenditure reserve - unrestricted
Non-controlling interest
20
21		 926
-
239,473
6,268
5,612
267,320
876
-
244,705
5,656
5,466
267,781
240,399
-
279,200
-
245,581
-
278,903
-
Total Reserves 240,399
279,200
245,581
278,903

The financial statements were approved and authorised for issue by the Governing Body on 24 November 2025 and were signed on its behalf on that date by:

Chair of the Board of Governors

The Vice-Chancellor

68

CONSOLIDATED STATEMENT OF CASH FLOWS

31
Notes		 3,744
14,955
181
(33)
15
2,167
(6,681)
(8,808)
2,821
5,478
(6,456)
2,080
(33)
702
(5,425)
2,439
14,047
166
(33)
(4)
(3,103)
(10,653)
1,288
(3,985)
(1,840)
(4,911)
1,810
(387)
(326)
(4,353)
Year to
July 2025
Year to
31 July 2024
£'000s
£'000s
Cash fow from operating activities
Surplus for the year
Adjustment for non-cash items
Depreciation
Amortisation of intangibles
Negative goodwill on acquisition of TTC
(Increase)/Decrease in stock
(Increase)/Decrease in debtors
Decrease in creditors
Decrease/(Increase) of deferred income
(Decrease)/Increase in pension provision (excluding Actuarial Movements)
(Decrease)/Increase in other provisions
Adjustment for investing or fnancing activities
Investment income
Interest payable
Endowment income
Loss on disposal of fxed assets
Capital grant income
12
11
15
17
19
5
8
20
Net cash (oufow)/infow from operating activities 4,707
(9,845)
Cash fows from investing activities
Purchase of investments
Capital grants receipts
Proceeds from Sale of Fixed Assets
Investment income
Sale of CAPSE
Payments made to acquire fxed assets
Cash fows from fnancing activities
Interest payable
Dividends paid from Joint Venture
Endowment cash received
New unsecured loans
Repayments of amounts borrowed
5
12
8		 16,258
5,425
11
6,456
-
(16,126)
12,024
(2,080)
(61)
33
-
(3,888)
(5,996)
18,741
4,353
-
4,911
3,750
(28,515)
3,240
(1,810)
-
388
427
(3,926)
(4,921)
(Decrease) / Increase in cash and cash equivalents in the year 10,735
(11,526)
Cash and cash equivalents at beginning of the year
Analysis of cash and cash equivalents at end of the year:
Short term deposits
Cash at Bank and in hand
Total
22
22
22		 59,286
31,752
38,269
70,021
70,021
27,956
30,539
58,495

www.southwales.ac.uk 69

Annual Review and Financial Statements

for the Year ended 31 July 2025

ACCOUNTING POLICIES

STATEMENT OF ACCOUNTING POLICIES

a) Basis of Preparation

These Financial Statements have been prepared in accordance with the Higher Education Statement of Recommended Practice (SORP 2019): Accounting for Further and Higher Education 2015 and in accordance with Financial Reporting Standards (FRS 102). The Group and the University is a public benefit entity and therefore has applied the relevant public benefit requirement of FRS 102.

The Students’ Union has not been consolidated into the group Financial Statements, as the University is not deemed to exert significant influence over the operating and financial policies of The Students Union to be considered an Associate or Subsidiary.

The Statement of Cash Flows included in the financial statements is for the group. We have taken advantage of the exemption in FRS102, not to show the Statement of Cash flows for the University.

b) Going Concern

The Group and parent University’s activities, together with the factors likely to affect its future development, performance and position, are set out in the Strategic Report which forms part of the Board of Governors’ Report. The Board of Governors’ Report also describes the financial position of the Institution, its cash flows, liquidity position and borrowing facilities.

The financial statements have been prepared on a going concern basis which the Board of Governors consider to be appropriate for the following reasons.

The University has prepared cash flow forecasts, including consideration of downside scenarios, for the going concern period, being 12 months from the date of approval of these financial statements.

At the balance sheet date the Group had £41m of outstanding bank debt and investments, cash and cash equivalents totalled £200m.

The Group continue to monitor and manage recruitment, cost and income changes closely, to ensure that it is financially sustainable in the long-term and has effective controls in place to pre-empt and respond to in year changes.

Consequently, the Board of Governors is confident that the Group and parent University will have sufficient funds to continue to meet their liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

c) Basis of Consolidation

The consolidated Financial Statements include the University and all its subsidiaries for the Year ended 31 July 2025. Intra-group transactions are eliminated on consolidation.

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.

d) Income Recognition

Income from the sale of goods or services is credited to the Consolidated Statement of Comprehensive Income when the goods or services are supplied to the external customers or the terms of the contract have been satisfied.

Tuition fee income is stated gross of any expenditure which is not a discount and credited to the Consolidated Statement of Comprehensive Income over the period in which students are studying. Where the amount of the tuition fee is reduced, by a discount, income receivable is shown net of the discount. Bursaries and scholarships are accounted for gross as expenditure and not deducted from income.

Funds the University receives and disburses as a 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.

Government grants including; funding council block grant; research grants from government sources; other grants and donations from non government sources are recognised within the Consolidated Statement of Comprehensive Income over the periods to which the University recognises the related costs. Where part of a Government grant is deferred it is recognised as deferred income within creditors and allocated between creditors due within one year and due after more than one year as appropriate.

70

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

Non exchange transactions without performance related conditions are donations and endowments. Donations and endowments with donor imposed restrictions are recognised within the Consolidated Statement of Comprehensive Income when the University is entitled to the Income. Income is retained within the restricted reserve until such time that it is utilised in line with such restrictions at which point the income is released to general reserves through a reserve transfer.

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

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

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

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

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

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

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

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

e) Capital Grants

Capital grants received from government sources except for capital grants for land are deferred and released to the Consolidated Statement of Comprehensive Income over the expected useful economic life of the related asset on a basis consistent with the depreciation policy. Capital grants received from government sources for land are recorded in income when the University is entitled to the income subject to any performance related conditions being met.

Capital grants received from non government sources are recorded in income when the University is entitled to the income subject to any performance related conditions being met.

www.southwales.ac.uk 71

Annual Review and Financial Statements for the Year ended 31 July 2025

f) Accounting for Retirement Benefits

The University participates in three principal defined benefit pension schemes, the Teachers’ Superannuation Scheme (TSS), the Rhondda Cynon Taf County Borough Council Pension Fund (RCTPF), and the Universities’ Superannuation Scheme (USS).

The USS and TSS are a multi-employer scheme for which it is not possible to identify the assets and liabilities to university members due to the mutual nature of the scheme and therefore the scheme is accounted for as a defined benefit scheme. A liability is recorded within provisions for any contractual commitment to fund past deficits within the USS scheme.

RCTPF -- The Group's net obligation in respect of defined benefit pension plans (and other post employment benefits) is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior years. That benefit is discounted to determine its present value, and the fair value of any plan assets (at bid price) and any unrecognised past service costs. The liability discount rate is the yield at the balance sheet date on credit rated bonds denominated in the currency of the Group, and having taken into account maturity dates approximating to the terms of the Group's obligations.

The calculation is performed by a qualified actuary using the projected unit credit method. When the calculation results in a benefit to the University, the recognised asset is limited to the total of any unrecognised past service costs; the present value of benefits available in the form of any future refunds from the plan; reductions in future contributions to the plan or on settlement of the plan; and takes into account the adverse effect of any minimum funding requirements.

g) Employee Benefits

Short term employment benefits such as salaries and compensated absences are recognised as an expense in the year in which the employees render service to the University. Any unused benefits are accrued and measured as the additional amount the University expects to pay as a result of the unused entitlement.

h) 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 an amount equal to 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.

i) 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.

j) Foreign Currency

Transactions in foreign currencies are translated to the respective functional currencies of Group entities at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency, the British pound (GBP), 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.

Exchange differences arising from this translation of foreign operations are reported as an item of other comprehensive income.

k) Fixed Assets

Fixed assets are stated at actual cost less accumulated depreciation and accumulated impairment losses. Certain items of fixed assets that had been revalued to fair value on 1 August 2014, the date of transition to SORP, are measured on the basis of deemed cost, being the revalued amount at the date of that revaluation.

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

Expenditure incurred in relation to land and buildings after initial purchase or construction, and prior to valuation, are capitalised to the extent that they increase the expected future benefits to the University. Expenditure which does not either enhance an asset beyond its original condition or increase its expected economic life is charged to the Income and Expenditure Account.

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 as follows:

Freehold Buildings – Up to 50 years Plant and Machinery – 3 to 10 years Fixtures and Fittings – 3 to 25 years

No depreciation is charged on assets under the course of construction.

Equipment, including computers, costing less than £5,000 per individual item is written off in the year of acquisition. Where the completed asset includes a number of components that are necessary for the asset to function as planned, then the aggregated value can be used to determine whether the asset capitalisation threshold is reached. All other equipment is capitalised.

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

Fixed assets are reviewed for indicators of impairment at each balance sheet date, where an indicator of impairment a full impairment review is carried out.

72

l) Heritage Assets

Heritage assets are tangible assets with an historical, artistic, scientific, technological, geophysical or environmental quality that are held and maintained principally for their contribution to knowledge and culture. Heritage assets are those assets that are intended to be preserved in trust for future generations because of their cultural, environmental and historical associations.

Heritage assets have been capitalised to the balance sheet at initial cost. Donated heritage assets are recorded at estimated valuation at the date of donation unless this is not practicable, in which case the appropriate disclosures are made of the nature and the extent of these donations.

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

Heritage assets are reviewed for indicators of impairment at each balance sheet date, where an indicator of impairment a full impairment review is carried out.

m) Borrowing costs

Borrowing costs which are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised.

n) Intangible assets

Computer software is stated at cost less accumulated amortisation and accumulated impairment losses. Software is amortised over its estimated useful life, of between three and ten years, on a straight line basis.

Software costing less than £250,000 is written off in the year of aquisition.

Where factors, such as technological advancement or changes in market price, indicate that residual value or useful life have changed, the residual value, useful life or amortisation rate are amended prospectively to reflect the new circumstances. The assets are reviewed for impairment if the above factors indicate that the carrying amount may be impaired.

Negative Goodwill

Negative Goodwill arises on consolidation and is based on the difference between the fair value of the consideration given for the undertaking acquired and the fair value of its separable net assets at the date of acquisition.

Negative Goodwill is amortised over 20 years representing the remaining estimated economic life to which it relates. It is recognised in the Statement of Comprehensive Income in the periods expected to benefit.

Intangible assets are reviewed for indicators of impairment at each balance sheet date, where an indicator of impairment a full impairment review is carried out.

www.southwales.ac.uk 73

Annual Review and Financial Statements for the Year ended 31 July 2025

o) Investments

Non current investments are held on the Balance Sheet at amortised cost less impairment. Investments in jointly controlled entities, associates and subsidiaries are carried at cost less Impairment in the University's accounts.

Non current investments are reviewed for indicators of impairment at each balance sheet date, where an indicator of impairment a full impairment review is carried out.

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

p) Inventory

Inventory is held at the lower of cost and net realisable value, and is measured using an average cost formula.

q) Financial instruments

Financial assets consist of trade and other receivables, current asset investments, cash and cash equivalents.

Trade and other receivable are initially recognised at transaction value, they are subsequently measured at amortised cost using the effective interest method. Where there is doubt over the recoverability of a debtor the amount is provided for the difference between the carrying amount and the present value of estimated future cash flows.

Current asset investments consist of corporate bonds and certificates of deposit which have a maturity greater than 3 months from acquisition. These are initially recognised at cost and subsequently measured at fair value with any gains or losses recognised in the income statement.

Financial liabilities includes trade and other payables, bank loans and public benefit concessionary loans.

Trade and other payables and bank loans are recognised at transaction value adjusted for any directly attributable transaction cost and subsequently measured at amortised cost using the effective interest rate method.

Loans received that either do not accrue interest or where interest is charged at less than a market rate are considered public benefit entity concessionary loans. These loans are recognised initially at the amount of cash received and are subsequently adjusted to reflect accrued interest payable.

r) Cash and cash equivalents

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

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

s) Provisions, contingent liabilities and contingent assets

Provisions are recognised in the financial statements when:

(b)it is probable that an outflow of economic benefits will be required to settle the obligation; and

(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.

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 uncertain future events not wholly within the control of the University. Contingent liabilities also arise in circumstances where a provision would otherwise be made but either it is not probable that an outflow of resources will be required or the amount of the obligation cannot be measured reliably.

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

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

t) Taxation

The University is an exempt charity within the meaning of Part 3 of the Charities Act 2011. It is therefore a charity within the meaning of Para 1 of schedule 6 to 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 478488 of the Corporation Tax Act 2010 (CTA 2010) or section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied to exclusively charitable purposes. The University receives no similar exemption in respect of Value Added Tax. Irrecoverable VAT on inputs is included in the costs of such inputs. Any irrecoverable VAT allocated to fixed assets is included in their cost.

The only Corporation Tax charge reflected in the consolidated financial information is the tax deducted at source by HMRC in respect of Research and Development Expenditure Credits (RDEC) recognised in the consolidated statement of comprehensive income and expenditure during the year.

u) Reserves

Reserves are allocated between Restricted and unrestricted reserves. Restricted endowment reserves include balances which, through endowment to the University, are held as a permanently restricted fund as the University must hold the fund to perpetuity. Other restricted reserves include balances through which the donor has designated a specific purpose and therefore the University is restricted in the use of these funds.

The preparation of Financial Statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.

74

www.southw31es.ac.uk 75

Annual Review and Financial Statements for the Year ended 31 July 2025

USE OF ESTIMATES AND JUDGEMENTS

The preparation of Financial Statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.

PENSION

The University participates in three defined benefit pension schemes, the Teachers’ Superannuation Scheme (TSS), The Rhondda Cynon Taf County Borough Council Pension Fund (RCTPF) and the Universities’ Superannuation Scheme (USS). The assumptions made are detailed within Note 26.

Volatility in the financial markets over the last few years has continued to impact on the valuations of the RCTPF on the balance sheet resulting in maintaining a pension surplus. The LGPS 2022 valuation reported that USW still had a legal obligation to make contributions to the fund, therefore USW adopted the accounting standard IAS 19 to report on Pension surpluses. This approach will note that the value of the net assets will not exceed the value of the liabilities and will report a nil balance on the balance sheet.

76

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS
1. Tuition fees and education contracts Year ended 31 July 2025 Year ended 31 July 2024
Consolidated University Consolidated University
£'000s £'000s £'000s £'000s
Full-time home and EU students 92,328 85,151 90,701 83,710
Full-time international students 43,702 37,681 60,898 55,962
Part-time students
 9,293 7,351 10,314 7,907

Total		 145,323 130,183 161,913 147,579
2. Funding body grants Year ended 31 July 2025 Year ended 31 July 2025 Year ended 31 July 2024 Year ended 31 July 2024
Consolidated University Consolidated University
£'000s £'000s
 £'000s £'000s
Recurrent grant
Commission for Tertiary Education and Research (MEDR) 13,587 9,404 13,077 9,093
Welsh Government 14,190 - 12,174 -
Specifc grants
Other 8,262 6,660 8,515 6,721
Capital grant 3,803 2,330 4,926 3,413
Total 39,842 18,394 38,692 19,227
3. Research grants and contracts Year ended 31 July 2025 Year ended 31 July 2025 Year ended 31 July 2024 Year ended 31 July 2024
Consolidated University Consolidated University
£'000s £'000s
 £'000s £'000s
Research councils 1,113
1,113		 1,452
1,452
Research charities 442 442 196 196
Government (UK and overseas) 4,081 3,662 3,495 2,832
Industry and commerce 462 76 1,616 172
Other 333 314 336 336
Total 6,431 5,607 7,095 4,988

www.southwales.ac.uk 77

Annual Review and Financial Statements

for the Year ended 31 July 2025

NOTES TO THE FINANCIAL STATEMENTS

4. Other income Year ended 31 July 2025 Year ended 31 July 2025 Year ended 31 July 2024 Year ended 31 July 2024
Consolidated University Consolidated University
Notes £'000s £'000s £'000s £'000s
Residences, catering and conferences 7,619 6,871 7,839 7,011
Other capital grants 550 478 498 450
Other income 14,905 12,541 15,994 15,076
Release of negative goodwill arising from acquisitions
 33 - 33 -

Total		 23,107 19,890 24,364 22,537
5. Investment income Year ended 31 July 2025 Year ended 31 July 2024
Consolidated University Consolidated University
£'000s £'000s £'000s £'000s
Investment income on endowments
22
131		 21
139		 22
Other investment income 4,780 3,963 6,317 5,811
Total 4,911 3,984 6,456 5,833
6. Donations and endowments Year ended 31 July 2025 Year ended 31 July 2024
Consolidated University Consolidated University
£'000s £'000s
 £'000s £'000s
New endowments
22
384
-
33
-
Donations with restrictions 23 970 - 3,724 -
Unrestricted donations
 643 - 635 -

Total		 1,997 - 4,392 -
7. Staf costs Year ended 31 July 2025 Year ended 31 July 2024
Consolidated University Consolidated University
£'000s £'000s £'000s £'000s
Salaries 101,437 68,941 105,118 73,719
Social security costs 11,181 7,471 10,664 7,367
Movement on USS provision - - (173) (173)
Other pension costs
 17,342 12,831 20,199 16,070

Total		 129,960 89,243 135,808 96,983
Year ended
31 July 2024
£'000s

223
57
1
281
Year ended
31 July 2025
£'000s

225
65
1
291
Emoluments of the Vice-Chancellor:
Salary
Pension costs
Benefts

78

NOTES TO THE FINANCIAL STATEMENTS

7. Staff costs (continued)

7. Staf costs (continued)
Year ended
Year ended
31 July 2025 31 July 2024
Remuneration of the Vice-Chancellor expressed as: Group Only
Basic salary as a ratio of the median basic salary of all staf
5.63		 5.66
Total remuneration as a ratio of the total remuneration of all staf 6.89 6.86

The remuneration of the Vice-Chancellor is reviewed annually and is set by the Remuneration Committee, which comprises of independent lay members of Council who possess relevant knowledge and expertise. The Vice-Chancellor is not in attendance and does not play any part in the discussions and decisions around their own remuneration.

The Remuneration Committee determines the remuneration according to a number of factors including, but not limited to:

In undertaking this review, the Remuneration Committee also considers the institutional interest, sustainability and USW group reputation, as well as the public interest and the safeguarding of public funds, as part of its deliberations.

Further details on the remuneration of the Vice-Chancellor can be seen on page 51.

Remuneration of other higher paid staf within the USW Group, excluding employer's pension contributions: Number Number
£100,000 to £104,999 1 1
£105,000 to £109,999 4 4
£110,000 to £114,999 4 5
£115,000 to £119,999 1 1
£120,000 to £124,999 - -
£125,000 to £129,999 - 2
£130,000 to £134,999 2 1
£135,000 to £139,999 2 -
£140,000 to £144,999 - -
£145,000 to £149,999 1 -
£150,000 to £154,999 - 1
£155,000 to £159,999 - -
£160,000 to £164,999 - 2
£165,000 to £169,999 1 -
£170,000 to £174,999 1 1
17 18

Key management personnel

The USW Group considers that key management personnel are the 12 individuals (2024 - 9) who serve
have served as members of Executive Boards across the Group, having authority and responsibility for
planning, directing and controlling activities during the year. Staf costs include compensation paid to
key management personnel.
Key management personnel compensation
Average staf numbers by major category:
Academic Departments
Academic Services
Residences, Catering and Conferences
Premises
Administration and Central Services		 or


Year ended
31 July 2024
£'000s
1,659
Number
1,257
312
63
65
504
Year ended
31 July 2025
£'000s
1,890
Number
1,135
290
63
61
487
2,201
2,036

www.southwales.ac.uk 79

Annual Review and Financial Statements

for the Year ended 31 July 2025

NOTES TO THE FINANCIAL STATEMENTS

8. Interest and other finance costs
8. Interest and other fnance costs Year ended 31 July 2025 Year ended 31 July 2024
Consolidated University Consolidated University
Notes £'000s £'000s £'000s £'000s
Loan interest 1,810 1,526 2,080 1,735
Net charge on pension schemes (143) (128) (73) (58)

Total		 1,667 1,398 2,007 1,677

9. Analysis of total expenditure by activity

9. Analysis of total expenditure by activity
Year ended 31 July 2025 Year ended 31 July 2024
Consolidated University Consolidated University
£'000s £'000s £'000s £'000s
Academic departments 92,484
72,900		 96,843
77,917
Academic services 47,069 44,668 52,344 49,972
Research grants and contracts 5,994 5,755 6,236 5,268
Residences, catering and conferences 6,119 4,918 6,495 5,271
Premises 28,038 22,860 26,990 21,751
Administration and central services 35,485 30,271 33,152 28,166
Consulting, training and commercial activities 1,166 1,082 3,660 1,071
Other expenses 6,442 2,328 18,504 14,371
Total 222,797 184,782 244,224 203,787
Other operating expenses include: Year ended 31 July 2025 Year ended 31 July 2024
Consolidated University Consolidated University
£'000s £'000s £'000s £'000s
External auditors remuneration in respect of audit services 221 112 224 111
External auditors remuneration in respect of non-audit services 26 15 22 12
Operating lease rentals
Land and buildings - - 95 -
Other 293 4 262 4
10. Taxation Year ended 31 July 2025 Year ended 31 July 2024
Consolidated University Consolidated University
£'000s £'000s
 £'000s £'000s
Research and Development Expenditure Credit (RDEC)
28
28
-
-
Total 28 28 - -

80

NOTES TO THE FINANCIAL STATEMENTS

11. Intangible assets

11. Intangible assets
Consolidated
Total
£'000s
Software
£'000s
University
Total
£'000s
Software
£'000s
Cost
At 1 August 2024
At 31 July 2025
Accumulated Amortisation
At 1 August 2024
Charge for the year
At 31 July 2025
1,802
1,802
1,493
166
1,659
1,802
1,802
1,493
166
1,659

1,503
1,503
1,218
150
1,368
1,503
1,503
1,218
150
1,368
Net book value at 31 July 2025 143
143
135
135
Net book value at 31 July 2024 309
309
285
285

www.southwales.ac.uk 81

Annual Review and Financial Statements

for the Year ended 31 July 2025

NOTES TO THE FINANCIAL STATEMENTS

12. Tangible Fixed Assets
12. Tangible Fixed Assets
Consolidated		 Fixtures
& Fittings
£'000s


35,707
1,907
775
(125)
Plant and
Machinery
£'000s

68,578
1,743
4,840
(5,656)
Freehold Land
and Buildings
£'000s

305,400
4,892
3,239
(1,216)
Total
£'000s
422,932
28,515
-
(6,997)
Assets in the
Course of
Construction
£'000s


13,247
19,973
(8,854)
-
Cost
At 1 August 2024
Additions
Transfers
Disposals
At 31 July 2025

Consisting of valuation as at:
31 July 2025
Cost
Depreciation
At 1 August 2024
Charge for the year
Transfers
Disposal
At 31 July 2025
38,264
-
38,264
69,505

-
69,505
312,315

2,684
309,631
444,450
2,684
441,766
24,366


-
24,366
38,264

21,617
2,769
-
(125)
69,505
53,723
4,791
(99)
(2,232)
312,315

110,083
6,487
99
(1,216)
444,450
185,423
14,047
-
(3,573)
24,366
-
-

-
24,261
56,183
115,453
195,897
-

Net book value at 31 July 2025		 14,003
13,322
196,862
248,553

24,366
University
Net book value at 31 July 2024		 Fixtures
& Fittings
£'000s

28,390
1,540
775
(125)
30,580

30,580
30,580

15,648
2,311
(125)
17,834
Plant and
Machinery
£'000s

41,346
1,173
6,000
(245)
48,274
48,274
48,274

33,690
3,498
(195)
36,993

Freehold Land
and Buildings
£'000s

237,769
4,357
2,062
(1,216)
242,972
242,972
242,972
92,213
5,482
(1,216)
96,479
Total
£'000s

320,697
26,979
-
(1,586)
346,090
346,090
346,090
141,551
11,291
(1,536)
151,306
Assets in the
Course of
Construction
£'000s
13,192
19,909
(8,837)
-
24,264
24,264
24,264

-
-
-
-
14,090
14,855
195,317
237,509

13,247
Cost
At 1 August 2024
Additions
Transfers
Disposals
At 31 July 2025
Consisting of valuation as at:
31 July 2025
Cost
Accumulated Depreciation
At 1 August 2024
Charge for the year
Disposals
At 31 July 2025
Net book value at 31 July 2025 12,746
11,281
146,493
194,784
24,264
Net book value at 31 July 2024 12,742
7,656
145,556
179,146
13,192

82

NOTES TO THE FINANCIAL STATEMENTS

12. Tangible Fixed Assets (continued)

Freehold land and buildings

Land and buildings were revalued at 31 July 1998 and this valuation is reflected in the opening balance figures, except for land which was revalued under FRS102 as at 1 August 2014. All other fixed assets are shown at cost. Apart from the revalued land, under FRS15 the University has chosen to freeze valuations at their opening values, without further revaluation and to treat this as a base point for future depreciation.

As a result of the Education Reform Act 1988, the freehold interest in land and buildings occupied by the University and the title to other assets were formally transferred to the University at the date of incorporation. The land and buildings at 31 July 1998 are included in the Balance Sheet at valuation at the date, with the exception of land revalued as at 1 August 2014. The valuation at 31 July 1998 was undertaken by Messrs Cooke & Arkwright, Chartered Surveyors, the basis of capitalisation was depreciated replacement cost, other than for local domestic premises the University acquired and converted to office space, where open market valuation was used. The valuation of land at 1 August 2014 was undertaken by Messrs Cooke & Arkwright, Chartered Surveyors, on the basis of open market valuation.

"Exchequer funded"

Included in land and buildings are certain Exchequer Funded assets. Under the terms of the Financial Memorandum between the Higher Education Funding Council of Wales and the University, net proceeds from the disposal of Exchequer Funded assets are subject to a lien which may require the net proceeds, or part therefor, to be remitted to the Higher Education Funding Council for Wales.

13. Heritage Assets Consolidated
Total
£'000s
University
Total
£'000s
At 1 August 2024
Additions
Disposals
At 31 July 2025
Net book value at 31 July 2025
At 31 July 2024		 500
-
-

-
-
-
500
-
500
500
-
-

www.southwales.ac.uk 83

Annual Review and Financial Statements for the Year ended 31 July 2025

NOTES TO THE FINANCIAL STATEMENTS

14. Non-current Investments
14. Non-current Investments Subsidiary
Companies Total
£'000s £'000s
Consolidated
At 1 August 2024 and 31 July 2025		 - -
£'000s £'000s
University
At 1 August 2024 and 31 July 2025At 31 July 2,056 2,056
2015
Other non-current investments consist of: University
£'000s
USW Commercial Services Limited 50
Merthyr Tydfl College Limited 2,004
RWCMD Limited 1
Springdoor Limited (dormant) 1
Total 2,056
15. Trade and Other Receivables At 31 July 2025 At 31 July 2024
Consolidated University Consolidated University
£'000s £'000s
 £'000s £'000s
Amounts falling due within one year:
Trade receivables
6,134
5,613
5,628
4,629
Other receivables 344 - 1,395 -
Prepayments and accrued income 14,599 14,163 10,950 11,052
Amounts due from subsidiary companies - 3,572 - 11,455
Total 21,077 23,348 17,973 27,136

Amounts owed by group undertakings are unsecured and repayable on demand.

84

NOTES TO THE FINANCIAL STATEMENTS

16. Current Investments At 31 July 2025 At 31 July 2024
Consolidated University Consolidated University
£'000s £'000s
 £'000s £'000s
Short term investment in shares
18,506
14,395
17,747
14,163
Short term bonds 49,172 44,743 55,223 50,939
Short term deposits 43,071 33,598 56,520 49,768
Total 110,749 92,736 129,490 114,870

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 time of placement.

17. Creditors: amounts falling due within At 31 July 2025 At 31 July 2024
one year Consolidated University Consolidated University
£'000s £'000s
 £'000s £'000s
Bank loans – secured 211
-		 201
-
Bank loans – unsecured 3,760 3,760 3,727 3,727
Trade payables 23,430 21,082 29,161 25,986
Accruals and deferred income 43,144 35,176 48,250 39,446
Amounts owed to group undertakings - 2 - 37
Total 70,545 60,020 81,339 69,196

Amounts owed to group undertakings are unsecured and repayable on demand.

www.southwales.ac.uk 85

Annual Review and Financial Statements for the Year ended 31 July 2025

NOTES TO THE FINANCIAL STATEMENTS

18. Creditors: amounts falling due after
more than one year		 University
£'000s

17,292
28,099
-
Consolidated
£'000s
45,194
28,099
5,393
University
£'000s

14,515
31,672
-
Consolidated
£'000s
43,906
31,672
5,177
At 31 July 2025
At 31 July 2024
Deferred income
Unsecured loans
Secured loans
Total 45,391
78,686
46,187
80,755
Analysis of secured and unsecured loans:
Due within one year or on demand
Due between one and two years
Due between two and fve years
Due in fve years or more
Due after more than one year		 3,760
3,606
4,437
20,056
28,099
3,971
3,847
5,233
24,412
33,492
3,727
3,760
6,080
21,834
31,674
3,928
3,971
6,780
26,100
36,851
Total secured and unsecured loans 31,859
37,463
35,401
40,779
Term

7
32
30
33
25
33

-
22
10
31 July 2024
Amount
£'000s
6,052
12,039
2,934
3,035
10,600
34,660
5,378
741
-
-
31 July 2025
Amount
£'000s
4,089
11,725
2,755
2,934
9,800
31,303
5,177
556
368
59
Lender
Lloyds plc
Lloyds plc
Lloyds plc
Lloyds plc
HSBC
Barclays Bank
Salix
Digarbon
Wales Funding Programme
Borrower

University
University
University
University
University
Subsidiary
University
Subsidiary
Subsidiary
Interest Rate
%

3
5
5
5
6.5
127,06 9
6.3

-
2.05
2.05
Included in loans are the following:
Unsecured Bank loans
Total unsecured Bank loans
Bank loans secured on land
and buildings
Other*		 Term

7
32
30
33
25
33

-
22
10
31 July 2024
Amount
£'000s
6,052
12,039
2,934
3,035
10,600
34,660
5,378
741
-
-
31 July 2025
Amount
£'000s
4,089
11,725
2,755
2,934
9,800
31,303
5,177
556
368
59
Lender
Lloyds plc
Lloyds plc
Lloyds plc
Lloyds plc
HSBC
Barclays Bank
Salix
Digarbon
Wales Funding Programme
Borrower

University
University
University
University
University
Subsidiary
University
Subsidiary
Subsidiary
Interest Rate
%

3
5
5
5
6.5
127,06 9
6.3

-
2.05
2.05
Included in loans are the following:
Unsecured Bank loans
Total unsecured Bank loans
Bank loans secured on land
and buildings
Other*
Total 40,779
37,463

*The University loan was refinanced in August 2021 at a floating rate of SONIA plus 1.5%.

** The terms of the secured loan agreement provides that the bank may require the Royal Welsh College of Music & Drama, to grant a charge Total on the land and buildings owned by the college if certain covenants are breached.

86

NOTES TO THE FINANCIAL STATEMENTS

Pension Defned
Enhancements Beneft Total Total
19. Provisions for liabilities on Obligations Pensions Other
Termination (Note 26) Provisions Provisions
£'000s £'000s £'000s £'000s
Consolidated
At 1 August 2024 7,126 - 7,126 7,545
Utilised in year (2,723) (8,235) (10,958) (5,163)
Additions 881 (43,131) (42,250) 3,323
Non recognition of pension surplus - 51,366 51,366
At 31 July 2025 5,284 - 5,284 5,705
Pension
Defned
Enhancements Beneft Total Total
on Obligations Pensions Other
Termination (Note 26) Provisions Provisions
£'000s £'000s £'000s £'000s

University
At 1 August 2024 6,424 - 6,424
7,509
Utilised in year (2,652) (7,333) (9,985) (5,163)
Additions 881 (38,396) (37,515) 3,323
Non recognition of pension surplus - 45,729 45,729 -
At 31 July 2025 4,653 - 4,653 5,669

www.southwales.ac.uk 87

Annual Review and Financial Statements for the Year ended 31 July 2025

NOTES TO THE FINANCIAL STATEMENTS

20. Income and Expenditure Reserve --
Endowment Reserve		 Unrestricted
permanent
endowments
£'000s
Restricted
permanent
endowments
£'000s



Year to
31 July 2024
Total
£'000s

4,455
776
5,231
33
140
(55)
307
425
5,656
4,794
862
5,656
876
4,780
5,656
4,859
797
5,656
Year to
31 July 2025
Total
£'000s

4,795
861
5,656
388
131
(117)
210
612
6,268
5,388
880
6,268
926
5,342
6,268
5,453
815
6,268
Consolidated
Balances at 1 August
Capital
Accumulated income
New endowments
Investment income
Expenditure
Increase/(Decrease) in market value of investments
Total endowment comprehensive income for the year
2,198
235
2,433
-
55
(58)
94

2,597
626
3,223
388
76
(59)
116
91
521
At 31 July 2,524
3,744
Represented by:
Capital
Accumulated income
Analysis by type of purpose:
Lectureships
Scholarships and bursaries
Analysis by asset
Current asset investments
Cash and cash equivalents		 2,291
233
3,097
647
2,524
-
2,524
3,744
926
2,818
2,524
3,744

The majority of donations received during the year by the Group and the University were made to the Royal Welsh College of Music & Drama in the form of donations and legacy gifts to fund specific projects.

88

NOTES TO THE FINANCIAL STATEMENTS

20. Income and Expenditure Reserve --
Endowment Reserve (continued)		 Unrestricted
permanent
endowments
£'000s
Restricted
permanent
endowments
£'000s		 Year to
31 July 2024
Total
£'000s
345
461
806
-
22
-
48
70
876
393
483
876
876
876
393
483
876
Year to
31 July 2025
Total
£'000s
393
483
876
4
21
-
25
50
926
418
508
926
926
926
418
508
926
University
Balances at 1 August
Capital
Accumulated income
New endowments
Investment income
Expenditure
Increase/(Decrease) in market value of investments
Total endowment comprehensive income for the year

-
-

393
483
-

-
-
-
-
876
4
21
-
25
-
50
At 31 July -
926
Represented by:
Capital
Accumulated income
Analysis by type of purpose:
Lectureships
Analysis by asset
Current asset investments
Cash and cash equivalents		 -
-
418
508
-
-
926
926
-
926
21. Income and Expenditure Reserve --
Restricted Reserve		 Donations Year to
31 July 2025
Total		 Year to
31 July 2024
Total
Reserves with restrictions are as follows: £'000s
 £'000s £'000s
Balances at 1 August 5,466
5,466		 2,400
New donations 970
970		 3,724
Expenditure (824) (824) (658)
Total restricted comprehensive income/(expense) for the year 146 146 3,066
At 31 July 5,612 5,612 5,466

www.southwales.ac.uk 89

Annual Review and Financial Statements for the Year ended 31 July 2025

NOTES TO THE FINANCIAL STATEMENTS

Consolidated University
22. Cash and Cash Equivalents At 1 August At 31 July At 1 August At 31 July
2024 Cash Flows 2025 2024 Cash Flows 2025
£'000s
 £'000s
 £'000s £'000s £'000s
 £'000s
Short term deposits 31,752 (3,796) 27,956 30,780
(3,974)		 26,806
Cash at Bank and in hand 38,269 (7,730) 30,539 20,553 (4,360) 16,193
Total
**70,021 **
(11,526)		 58,495 51,333
(8,334)
42,999
23. Consolidated reconciliation of net debt Year to
31 July 2025
Total
£'000s

(29,244)
11,526
(3,314)
(21,032)
8,212
1,740
Year to
31 July 2024
Total
£'000s

70,021
201
3,727
3,928
5,177
31,672
36,849
(29,244)
Year to
31 July 2025
Total
£'000s

58,495
211
3,760
3,971
5,393
28,099
33,492
(21,032)
Net debt 1 August 2024
Movement in cash and cash equivalents
Other non-cash changes
Net debt 31 July 2025
Change in net debt
Analysis of net debt:
Cash and cash equivalents
Borrowings: amounts falling due within one year
Secured loans
Unsecured loans
Borrowings: amounts falling due after more than one year
Secured loans
Unsecured loans
Net debt

90

NOTES TO THE FINANCIAL STATEMENTS

24. Capital and Other Commitments At 31 July 2025 At 31 July 2024 At 31 July 2024
Consolidated University Consolidated University
£'000s £'000s
 £'000s £'000s
Provision has not been made for the following capital
commitments at 31 July 2025:
Commitments contracted for 42,509 38,094 57,420 57,420
Total 42,509 38,094 57,420 57,420
25. Lease Obligations At 31 July 2025 At 31 July 2024
Land and Plant and
Buildings Machinery Other Leases Total Total
£'000s £'000s £'000s £'000s £'000s
Total rentals payable under operating leases:
Consolidated
Payable during the year - 289
4		 293 357
Future minimum lease payments due:
Not later than 1 year - 293 8 301 297
Later than 1 year and not later than 5 years - 1,157 18 1,175 1,202
Later than 5 years - 2,605 - 2,605 2,865
Total lease payments due - 4,055 26 4,081 4,364
At 31 July 2025 At 31 July 2024
Land and Plant and
Buildings Machinery Other Leases Total Total
£'000s £'000s £'000s £'000s £'000s
Total rentals payable under operating leases:
University
Payable during the year -
-
4		 4 4
Future minimum lease payments due:
Not later than 1 year - - 4 4 4
Later than 1 year and not later than 5 years - - 6 6 10
Later than 5 years - - - - -
Total lease payments due - - 10 10 14

www.southwales.ac.uk 91

Annual Review and Financial Statements for the Year ended 31 July 2025

NOTES TO THE FINANCIAL STATEMENTS

26. Pension Schemes

The Group participates in three principal defined benefit pension schemes. Details of the schemes are as follows:-

All three schemes are contracted out of the State Second Pension (S2P) the assets of which are held in separate trustee administered funds. However, as explained below, due to the nature of each scheme the TSS and USS are accounted for as defined contribution schemes and the RCTPF as a defined benefit scheme.

The Group also participates in two defined contribution pension schemes as follows:

(a) The Teachers' Superannuation Scheme (TSS)

The TSS is a contributory "sector-wide" scheme for academic staff administered by the Teacher's Pension Agency on behalf of the Department for Education and Skills. The scheme, which does not have a fund but instead operates on a "pay-as-you-go" basis, is subject to actuarial valuation every five years for the purpose of determining the "sector-wide" contribution rates. The latest actuarial valuation of the scheme was as at 31 March 2020. The cost of pension increases is currently excluded from the valuation and neither employees nor employers contribute to this added value to the employee, which is met by the Exchequer.

The contribution rate increased on 1 April 2024 to 28.7% (from 23.7%), and total contributions included within the Statement of Comprehensive Income was £12.6m for the Group (2023/24 £11.6m), and £10.2m for the University (2023/24 £9.5m).

It is not possible to identify each institution's share of the underlying assets and liabilities of the scheme and hence contributions to the scheme are accounted for as if it were a defined contribution scheme. The cost recognised within the surplus for the year in the Consolidated Statement of Comprehensive Income and Expenditure is equal to the contributions payable to the scheme for the year.

(b) The Universities' Superannuation Scheme (USS)

The University participates in the USS, a defined benefit scheme which is contracted out of the State Second Pension (S2P). The assets of the scheme are held in a separate fund administrated by the trustee, Universities Superannuation Scheme Limited.

Because of the mutual nature of the scheme, the scheme’s assets are not hypothecated to individual Universities and a scheme-wide contribution rate is set. The University is therefore exposed to actuarial risks associated with other Universities’ employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis and therefore, as required by FRS 102(28) "Employee Benefits", accounts for the scheme as if it were a defined contribution scheme.

As a result, the amount charged to the income and expenditure account represents the contributions payable to the scheme in respect of the accounting period.

The appointment of directors to the board of the trustee is determined by the Company's Articles of Association. Four of the directors are appointed by Universities UK; three are appointed by the University and College Union, of whom at least one must be a USS pensioner member; and a minimum of three and a maximum of five are independent directors appointed by the board. Under the scheme trust deed and rules, the employer contribution rate is determined by the trustee, acting on actuarial advice.

The latest triennial actuarial valuation of the scheme was at 31 March 2023. This was the seventh valuation for USS under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to adopt a statutory funding objective, which is to have sufficient and appropriate assets to cover their technical provisions. The actuary also carries out regular reviews of the funding levels. In particular, he carries out a review of the funding level each year between triennial valuations and details of his estimate of the funding level at 31 March 2023 are also included in this note.

The latest available full actuarial valuation of the scheme was at 31 March 2023 (“the valuation date”), which was carried out using the projected unit method. Since the institution cannot identify its share of scheme assets and liabilities, the following disclosures reflect those relevant for the scheme as a whole.

92

NOTES TO THE FINANCIAL STATEMENTS

26. Pension Schemes (continued)

(b) The Universities' Superannuation Scheme (USS) (continued)

The 2023 valuation was the seventh valuation for USS under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to adopt a statutory funding objective, which is 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. The assets therefore were sufficient to cover 111% of the benefits which had accrued to members after allowing for expected future increases in earnings. Defined benefit liability numbers for the scheme have been produced using the following assumptions:

2024 2023
Discount rate 5.0% 5.1%
Pension increases (CPI) 2.7% 3.0%

The main demographic assumption used relates to the mortality assumptions. Mortality in retirement is assumed to be in line with the Continuous Mortality Investigation's (CMI) tables as follows:

Male members’ mortality 101% of S2PMA [“light”] YoB tables – No age rating Female members’ mortality 95% of S3PFA [“light”] YoB tables – rated down 1 year

Use of these mortality tables reasonably reflects the actual USS experience. To allow for further improvements in mortality rates the CMI 2019 projections of a long term improvement rate of 1.8% pa for males and 1.6% pa for females were adopted. The current life expectancies on retirement at age 65 are:

2024 2023
Males currently aged 65 (years) 23.7 24
Females currently aged 65 (years) 25.6 25.6
Males currently aged 45 (years) 25.4 26
Females currently aged 45 (years) 27.2 27.4
2024 2023
Scheme assets 73.1bn 66.5bn
Total scheme liabilities 65.7bn 80.6bn
FRS 102 total scheme defcit 7.4bn 14.1bn
FRS 102 total funding level 111% 83%

A contingent liability exists in relation to the pension valuation recovery plan, since the University is an employer of members within the scheme. The contingent liability relates to the amount generated by past service of current members and the associated proportion of the deficit. Given that the scheme is a multi-employer scheme and the University is unable to identify its share of the underlying assets and liabilities, the contingent liability is not recognised as a provision on the balance sheet. The associated receivable from the scheme in respect of the reimbursement of the University's expenditure is similarly not recognised.

www.southwales.ac.uk 93

Annual Review and Financial Statements for the Year ended 31 July 2025

NOTES TO THE FINANCIAL STATEMENTS

26. Pension Schemes (continued)

(c) Rhondda Cynon Taff County Borough Council Pension Fund

Funding Valuation

This scheme provides benefits for non-academic staff based on final pensionable salary. The scheme is valued every three years as required under Regulation 77(1) of the Local Government Pension Scheme Regulations 1997 (SI 1997 No. 1612). The latest valuation was undertaken by independent consulting actuaries as at 31 March 2022.

Under the definitions set out in FRS 102, the Local Government Pension Scheme is a multi employer defined benefit pension scheme. In the case of the LGPS, the actuary of the scheme has identified the Institution’s share of its assets and liabilities as at 31 July 2023. The University employs a building block approach in determining the rate of return on Fund Assets. Historical markets are studied and assets with higher volatility are assumed to generate higher returns consistent with widely accepted capital market principles. The assumed rate of return on each asset class is set out within this note. The overall expected rate of return on assets is then derived by aggregating the expected return for each asset class over the actual asset allocation for the Fund as at 31 July 2023.

Recent changes in global and UK economic pressures and tightening of monetary policy have had a significant impact on asset markets and corporate bond yields, which are key to the FRS 102 assessment of the net pension asset or liability. In particular, AA corporate bond yields, used to set the FRS 102 discount code, have increased significantly since 31 July 2023.

FRS 102

In accordance with the requirements of Financial Reporting Standard 102, the independent consulting actuaries updated the results of the March 2022 actuarial valuation in order to ascertain the valuation of the “sub-funds” in the scheme at 31 July 2023.

The major assumptions used by the actuary in this respect were:

The major assumptions used by the actuary in this respect were:
2024 2024 2023
% % %
Rate of increase in salaries 3.65 3.70 3.85
Rate of increase in pensions in payment 2.65 2.70 2.85
Discount rate 5.70 5.00 5.10
CPI Infation assumption 2.65 2.70 2.85
RPI Infation assumption 0.00 3.15 3.25

The Current Mortality assumptions include an allowance for future improvements in mortality rates. The assumed life expectations on retirement at age 65 are:

The Current Mortality assumptions include an allowance for future im
retirement at age 65 are:		 provements in mortality rates. The assumed life expectations on

2025
2024
Retiring today
Males 20.6 20.2
Females 23.2 23.1
Retiring in 20 years
Males 21.5 21.1
Females 24.3 24.2

The University assets in the scheme and the expected rate of return were:

Value at Value at Value at
31 July 2025 31 July 2024 31 July 2023
£’000s £’000s £’000s
Equities
222,102
213,630
230,022
Gilts 37,884 37,235 31,738
Bonds 52,004 49,244 38,937
Property 21,043 20,221 23,231
Cash 10,022 6,380 2,945
Other 1,343 491 327
344,398 327,201 327,200

94

NOTES TO THE FINANCIAL STATEMENTS

26. Pension Schemes (continued)

The Consolidated assets in the scheme and the expected rate of return were:

Value at Value at Value at
31 July 31 July 31 July
2025 2024 2023
£’000s £’000s £’000s
Equities 248,177 238,318 235,799
Gilts 42,331 41,539 32,536
Bonds 58,109 54,935 39,915
Property 23,513 22,558 23,815
Cash 11,199 7,118 3,019
Other 1,501 546 335
384,830 365,014 335,419

The following amounts at 31 July 2025 were measured in accordance with the requirements of FRS 102.

Analysis of the amount shown in the University balance sheet

Analysis of the amount shown in the University balance sheet sheet
Estimated share of assets
Present value of scheme liabilities
Non recognition of pension surplus
Defcit in the scheme – net pension liabilities
Analysis of the amount shown in the Consolidated balance sheet
31 Jul 2022
£’000s

305,094
(345,676)
-
(40,582)
31 Jul 2021
£’000s

341,710
(496,228)
-
(154,518)
31 Jul 2023
£’000s

301,195
(282,398)
(18,797)
-
31 Jul 2025
£’000s

344,398
(255,522)
(88,876)
-
31 Jul 2024
£’000s

327,201
(284,054)
(43,147)
-
31 Jul 2022
£’000s
31 Jul 2021
£’000s
31 Jul 2023
£’000s
31 Jul 2025
£’000s
31 Jul 2024
£’000s*		 31 Jul 2022
£’000s
31 Jul 2021
£’000s
31 Jul 2023
£’000s
31 Jul 2025
£’000s
31 Jul 2024
£’000s

305,094
(345,676)
-

341,710
(496,228)
-

301,195
(282,398)
(18,797)

344,398
(255,522)
(88,876)

327,201
(284,054)
(43,147)
Estimated share of assets
Present value of scheme liabilities
Non recognition of pension surplus*
Defcit in the scheme – net pension liabilities		 338,025
(383,692)
-
378,034
(550,960)
-
335,418
(314,340)
(21,078)
384,830
(284,924)
(99,906)
365,014
(316,473)
(48,541)
(45,667)
(172,926)
-
-
-

Analysis of the amount charged to staff costs within the operating surplus

Consolidated
£’000s
5,233
2,257
7,490
University
£’000s
4,422
2,257
6,679
Consolidated
£’000s
4,655
1,425
6,080
University
£’000s
3,881
1,425
5,306
31 July 2025
31 July 2024
Current service cost
Past service cost

*The present value of pension scheme surplus has not been recognised in accordance with IAS19 / IFRIC 14 approach (further information can be found on page 50).

www.southwales.ac.uk 95

Annual Review and Financial Statements

for the Year ended 31 July 2025

NOTES TO THE FINANCIAL STATEMENTS

26. Pension Schemes (continued)

Analysis of the amount that is charged to interest payable
 Consolidated
£’000s
University
£’000s
Consolidated
£’000s
University
£’000s
31 July 2025
31 July 2024

Interest income on pension scheme assets
Interest on pension scheme liabilities
Net charge		 (15,958)
15,874
(14,322)
14,260
(15,718)
15,569
(14,093)
13,966
(84)
(62)
(149)
(127)

Analysis of the amount recognised in Statement of Comprehensive Income


Consolidated
£’000s
University
£’000s

Consolidated
£’000s
University
£’000s
31 July 2025
31 July 2024

Actual return less expected return on pension scheme assets
Experience gain/(loss) arising on scheme liabilities
Non recognition of pension surplus*
Actuarial gain
16,233
12,798
(27,463)
14,552
11,441
(24,351)

7,692
41,527
(51,366)
6,868
36,839
(45,729)
1,568
1,642
(2,147)
(2,022)

The movement in the University’s and Consolidated deficit during the year is made up as follows:

31 July 2025
31 July 2024
Consolidated
£’000s
University
£’000s
University
£’000s
Consolidated
£’000s
Defcit on scheme at 1 August
Movement in year:
- current service cost (includes administrative expenses
- past service cost
- contributions
- other fnance charge
- actuarial gain
- Non recognition of pension surplus
Defcit on scheme at 31 July
Analysis of the movement in the present value of the scheme liabilities*
(5,403)
(2,257)
6,008
84
29,031
(27,463)
(4,566)
(2,257)
5,119
62
25,993
(24,351)
(4,013)
(1,425)
7,333
127
43,707
(45,729)

(4,813)
(1,425)
8,236
149
49,219
(51,366)
31 July 2024
31 July 2023
-
-
-
-
Consolidated
£’000s
University
£’000s
University
£’000s
Consolidated
£’000s
At beginning of the year
Current Service cost
Past service cost
Interest cost
Contributions by scheme participants
Actuarial gains and losses
Benefts paid
At end of the year
314,340
5,233
2,257
15,874
2,380
(12,798)
(10,813)
282,400

4,422
2,257
14,258
1,994
(11,441)
(9,836)
284,054

3,881
1,425
13,966
1,825
(36,839)
(12,790)

316,473
4,655
1,425
15,569
2,198
(41,527)
(13,869)
316,473
284,054
255,522
284,924

*The present value of pension scheme surplus has not been recognised in accordance with IAS19 / IFRIC 14 approach (further information can be found on page 50).

96

NOTES TO THE FINANCIAL STATEMENTS

26. Pension Schemes (continued)

Analysis of the movement in the market value of the scheme assets

Analysis of the movement in the market value of the scheme assets
31 July 2025
31 July 2024
Consolidated
£’000s
335,418
15,958
16,233
2,379
6,009
(10,813)
(170)
University
£’000s

301,195

14,322
14,552
1,993
5,119
(9,836)
(144)
University
£’000s

327,201

14,093
6,868
1,825
7,333
(12,790)
(132)
Consolidated
£’000s
365,014
15,718
7,692
2,198
8,235
(13,869)
(158)
At beginning of the year
Expected rate of return on scheme assets
Actuarial gains and losses
Contributions by scheme participants
Contributions by the Employer
Benefts paid
Administrative expenses
At end of the year
365,014
327,201
344,398
384,830

The University’s experience gains and losses for the years ended 31 July were as follows:

31 Jul 2025 31 Jul 2024 31 Jul 2023 31 Jul 2022 31 Jul 2021
Diference between the expected and actual
return on scheme assets
Amount £’000s 6,868 14,552 (11,615) (41,732) 64,456
Percentage of scheme assets 2.0% 4.4% (3.9)% (13.7)% 18.9%
Experienced gains and losses on scheme liabilities
Amount £’000s
36,839
11,441
75,600
169,361		 (50,486)
Percentage of present value of scheme liabilities 14.4% 4.0% 26.8% 49.0% (10.2)%
Total amount recognised in the statement of
comprehensive income
Amount £’000s 43,707 25,993 63,985 127,629 13,970
Percentage of present value of scheme liabilities 17.1% 9.2% 22.7% 36.9% 2.8%

www.southwales.ac.uk 97

Annual Review and Financial Statements for the Year ended 31 July 2025

NOTES TO THE FINANCIAL STATEMENTS

26. Pension Schemes (continued)

The Consolidated experience gains and losses for the years ended 31 July were as follows:

31 Jul 2025 31 Jul 2024 31 Jul 2023 31 Jul 2022 31 Jul 2021
Diference between the expected and actual
return on scheme assets
Amount £’000s 7,692 16,233 (12,092) (46,202) 71,174
Percentage of scheme assets 2.0% 4.4% (3.6)% (13.7)% 15.6%
Experience gains and losses on scheme liabilities
Amount £’000s 41,527 12,798 84,231 189,468
(56,592)
Percentage of present value of scheme liabilities 14.6% 4.0% 26.8% 49.4% (9.0)%
Total amount recognised in the statement of
comprehensive income
Amount £’000s 49,219 29,031 72,139 143,266
14,582
Percentage of present value of scheme liabilities 17.3% 9.2% 22.9% 37.3% 2.3%

The estimate for contributions for the defined benefit scheme for the year ending 31 July 2026 is £5,726,000 The actual return on scheme assets in the year was a gain of £23,410,000 (2024 - A gain of £32,191,000).

Sensitivity to market risks

The table below show the sensitivity of accounting disclosure items to market and demographic risks. Sensitivities are applied at the accounting date. The impacts are shown for items on the balance sheet at the accounting date, and for projected items in the net periodic pension cost recognised in profit and loss for the next accounting year.

Sensitivity analysis of LGPS

Consolidated Consolidated University University
Base +0.1% p.a. +0.1% p.a. Mortality Base +0.1% p.a. +0.1% p.a. Mortality
discount rate of rates discount rate of rates
rate increase in
pensions		 increased
by 1 year		 rate increase in
pensions		 increased
by 1 year
£m £m £m **£m ** £m **£m ** **£m ** **£m **
Fair value of net assets
285		 280
289		 291 256 251
260
261
Present value of funded liabilities 285 280 289 291 256 251 260 261
Pension liability recognised on the
balance sheet - - - - - - - -

98

NOTES TO THE FINANCIAL STATEMENTS

27. Related Party Transactions

Due to the nature of the University's operations and the composition of the Board of Governors (being drawn from local public and private sector organisations), it is likely that transactions will take place with organisations in which a member of the Board of Governors may have an interest. All transactions involving organisations in which a member of the Board of Governors may have an interest are conducted in accordance with the University's financial regulations and normal procurement procedures. Other than those disclosed elsewhere in the financial statements, no transactions were identified which should be disclosed under FRS102.

31 July 2025 31 July 2024
Organisation Individual Income Expenditure Income Expenditure
Board Member £’000s £’000s £’000s £’000s
University of South Wales' Students’ Union Various
-
1,318
-
1,426
USW Pathway College Ltd Various 53 67 28 59

The total expenses paid to or on behalf of 6 independent Governors was £4,121 (2023/24 - £2,023). This represents travel and subsistence expenses incurred in attending Board of Governor, and Committee meetings.

28. Interests in Group Undertakings

The University of South Wales has the following wholly owned subsidiary companies, all of which are registered in England and Wales:

Royal Welsh College of Music & Drama Limited Merthyr Tydfil College Limited Tydfil Training Consortium Limited USW Commercial Services Limited USW Services Limited Professional and Support Services Limited Allied Aspects Limited Glamorgan Environmental Research Limited Springdoor Limited Glamorgan Accommodation III Limited All Wales Business School Limited E College Wales Limited Enterprise College Wales Limited Glamorgan Online Limited Cardiff Metropolitan Limited Cardiff/Glamorgan Metropolitan Limited USW Enterprises Limited MC452 Limited

The University of South Wales holds a majority interest of 51% in USW Pathway College Limited, which is a subsidiary of the University.

In April 2025, the University sold CAPSE Limited (wholly owned subsidiary), following a decision to prioritise University resources into its core activities.

Denotes dormant company during the year to 31 July 2025. w*

www.southwales.ac.uk 99

For further information, contact:

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