2021-07-31-accounts

Prifysgol Metropolitan Caerdydd Metropolitan University 2020 - 2021 ANNUAL REPORT & FINANCIAL STATEMENTS ' THEthTINIL% IESuIY￿7lUE UNIVERSITY UNIVERSITY

Annual Report Financial StatÈment520ZO- 2021 C#x(fjffMet Charity Name: Cardiff Metropolitan Unlversity Charity Registration Number: 1140762 Registered Office Maritime House Uandaff Campus Cardiff CF5 2YB www.cardiffmet.aGuk

AnThJal R•port and F5rtancial statements 2020- 2021 Car<fJffMet Contents Report of the Board of Governors Corporate Governan￿ Statement 11 Annual Remuneration Statement 14 Governors & Directorate 16 Key performance Indicators Independent auditors, report Statement of Principal Accounting Policles Consolidated & University Statements of Comprehensive Income & Expenditure Consolidated & University Statements of Changes in Reserves Consolidated & Universlty Statements of Financial Position 17 21 24 30 31 32 Consolidated Cash Flow Statement 33 Notes to the Financial Statements 34

Annujl Rewrt and Finanaal St*8m8ryts 2020- 2021 Report of the Board of Governors Public Benef it Statement Cardiff Metropolitan University Seeks to advance higher education and research within South East Wales, Wales, the UK and internationally. Ils charitable objective 15 to inspire and enable individuals, organisations and communities to succeed through innovation In high quality learning, research and enterprise. The benefit of this charitable oble¢tive is derived through the intellectual development of indivKluals and by providing the opportunity for them to enter professional life in many fields of public and private provision. The beneficiaries are the public at large to whom education is open. The University's prov¢sion has been aligned with the Welsh Government's strategy for higher education and serves the publiG bellefit by contributing to regional regeneration, preservation of the environment and promotion of social justlce. The UnNersity offers courses in a range of subjects in¢luding health and social care, teacher educatlon and environmental management with over 50 professional bodies accrediting its courses. It also engages with partners In business, the public sector and communities in a variety of ways. Speciticalty, during 2020121 the University.. la} Undertook Sport Development for Cardiff City Council. The University, through Cardiff Met Spor( is working with the Council, Cardiff City FC, Sport Wales and Disability Sport Wales to Increase sports parti¢ipalion and the quality of the experience across the city. The project, which places particular emphasis upon addressing key themes including disability, gender, and disadvantaged groups, is also contributing lo the strengthening of Cardiff Met's relationships with all of the city's primary and secondary schools and supports thousands of hours of studenl work pla¢ement and volunteering opportunities. Parllcipated as a part of its widening access programme, in the First Campus Initiative which encourages the importance of learning amongst community first areas and schools in SE Wales. Ibl Icl Admlnistered and supported a £12m pan Wales advisory and implementation seNice in food technOl￿Y related initiatives, including areas such as technical, microbiological, hygiene and product development to help clients ISMES) achieve measurable outputs and clear financial, énvtronmental and skill-based benèfits and to maximise business performance. Idl Worked with Welsh Government to provide Knowledge Transler Centres as an effecthje Interface between academia and Welsh business - providing access to research. development, expertise, facilities and knowledge to a wide range of technology led businesses. lel Used ils sports facilities to provide junior academies for local children and training tacililies for all levels of athlete, thereby supporting world class participants in a range of national and intemational sports. In Operated a Community Borrower Scheme which provide5 the public wth direct access to the University's library collections, enabling them to borrow books or other audio-visual education materials. Igl Actively promoted the National Young Ambassador programme whlch aims to inspire young people to become leaders through sport and physlcal activity. Ihl Hosted sustainability events to bring together aml engage ourcampus community with our neighbours and Surrounding communities. These'community Days, promote partnership with many local charity and school groups and small businesses, and include activities such as Repair Cafes. Farmers Markets, Litter Picks etc. The University is also a key sponsor of the City's public cycle network. hosting cycle hubs at each of its campuses and prowding 5,000 free memberships for its community. Continued to support and provide funding towards the CIt￿S Student Liaison Officer. a role that supports Cardiff's universities and provides volunteering opportunities in the city, helping in local communities.

Artnual Rgporland FIna￿la1 sratèm•nts 2020 2021 Report of the board of Governors (continued) Public Benetit Statement (contlnued) (il Donated 100kg of dry and frozen food to the Cardiff food bank. Ik) Saw the return of the award-winning Schck)l Holiday Enrichment Programme ISHEPI. SHEP is a school-based education programme that provides food and nutrition education, physical actimty. enrichment sessions and healthy meals to children in areas ot social deprivation during the school summer holidays. Since the programme's launch in 2016, the number of schools enrolled has continued to grow year-on-year. Secured funding through Cardiff & Vale Unlversity Health Board to improve the provision of Exercise Referral acros5 Cardiff. strengthening the relationship between primary care, social prescribing, exercise referral and community physical activity. The programme is contributlng towards the Move More Eat Well strategy across Catdiff & Vale of Glamorgan. Im) Participated In Step In- an innovative project developed between Cardiff Met Sport and the Police & Crlme Commissioner office, the programme diverts young people aged 11-18years away from youth lustice services and Into more positive opportunities via sport and physical actmty. During the year. Welsh domiciled students of the University were able to access the Assembly Learring Grant and English domiciled students the Maintenance Grant. the University a150 Offered its own bursarles. Varlous other schemes were also available to assist students to aGcess higher education and the Unniersity administered a discretionary contingency fund for those who required financial support to continue their studies. The Universlty offered a wide range of accredited taster sessions at outreach centres and bespoke projects deslgned to raise the aspirations amongst disadvantaged/under-represented communities In common with other charitable higher education corporations in the UTr( the Universty is overseen by a Board of Governors, the majority of whom are non-remunerated and otherwise independent of the University. The Board of Governors includes staff and student representation. Responsibilities of the Board of Governors In accordance with the Education Reform Act 1988 the Board ol Governors of Cardiff Metropolitan University is responsible for the administration and management of the attairs of the University and is required to present audited financial statements for each IlnancSal year. The Board of Governors is responslble for keeping proper accounting records whlch dlsclose wth reasonable accuracy at any time the financlal positlon of the Unlversity and to enable it to ensure that the finanaal statements are prepared in accordance wSth the Statement of Re¢ommended Practice ISORP)= Accounting lor Further and Hlgher Education (effective from 1 January 20151 and in a¢¢ordan¢e with applicable Accounting Standards. In addition, within the terms and conditions of the Flnancial Management Code issued by the Higher Education Funding Council forwates, the Board, through Its designated office holder, is required to prepare financial statements for ea¢h flnancial year whlch give a true and falr vlew of the state of aff￿rS of the University. of the surplus or deficit and cash flows for that year. In preparing these financial stalements, the Board of Governors has ensured that.. sultable a¢counting policies are selected and applied conslstently. judgements and estimates are made that are reasonable and prudent- applicable accounting standards have been followed, subject to any materfal departures disclosed and explained In the financial statements; financial statements are prepared on the going concern basis unless It Is Inapproprlate to presume that the University will continue in operation.

Anrwl R•port Stbtemeilts 2020- 2021 Report of the board of Governors (continued) Responslbllltles of the Board of Governors (continued) The Board of Govemors has taken reasonable Steps to.. ensure that fijnds from the Higher Education Funding Council for Wales are used only for the purposes for which they have been given and in accordance with the Financial Management Code wlth the Funding Councll and any other conditions which the Funding Council may from time to time prescribe., ensure that there are appropriate financial and management controls in place to safeguard public funds and funds from other sources., safeguard the assets of the Universily prevent and detect fraud., secure the economical, efficient and effective management of the University resources expenditure. By order of the Board P¢ofessor C Carmlchael Ailchlson President & Vice-chancellor g December 2021

Annual Roport Jnd FirhJna?I Statefflents 2020- 2021 C8rcfffMet Report of the board of Governors (continued) Operating and Financial Review Swpe of the Financlal Statements These financial statements relate to the year ended 31 July 2021 and represent the twenty ninth Annual Report of the University slnce its Incorporation in 1992. The financial statements consolidate the main activity of the University with that of its subsidiary companies and have been prepared in accordance with the Statement of Recommended Practice (SORPI= Accountin9 for Further and Higher Education 2019 and in accordance with Financial Reporting Slandard IFRSI 102. Principal Actlvities The principal actiwty of the University is the provision of higher education from campuses in Cardill and through collaborative activities elsewhere in the UK and oversea& The Universivs portfolio extends across undergraduate, postgraduate and research activities and is complemented by training. consultancy and other commercial spln ofts which are provided to local, national and International organisations. The University also provides conferencing and residential services, together with sports and catering facilities, for students and external users. Many of these commercial activities are carried out through a subsidiary company Cardiff Met Company Ltd, whlch gifts the taxable profil back to the University through the Gift Aid scheme. Financial and Investment strategy The University last revtewed and updated its Financial Strategy during July 2018. This Strategy has the key oLlectives of growing and dtversifying incom&, promoting long-term sustainability., and operating elliciently and effectively. The Strategy includes challenging perfomance objectives in support of the Universlty's aspirations for the future. Results for the Year The year started In an uncertain manner due to the coronavirus pandemiG and continued in muth the same way throughout, with the second national lock-down adding a new layer of uncertainly and disruption mid-way through the year. Despite this, the unlversity delivered a very strong financial pertormance and is appreciative of the additional in- year Covid related grant funding that was provtded by the Welsh Government to the Welsh higher education se¢tor. The group's income increased by £15.2m to £122.3m12020.. £107.Iml, assisted by the receipt of the aforementioned Welsh Government funding which amotjnted to circa £10m. The financial results for the year show that the university delivered an accounting surplus ot £2.861m {2020-. Deffcit of £1.286ml and generated an operationJ cash surplus of £18.1m 12020.. £8.6ml. In the period slnce the Introduction of FRS 102 during 201512016 there has been a slark presentational divergence between the strength of the UnNer5itys operational cash generation and its accounting result. This distortion of the financial results has resulted from the continuing need to account for pension deficit charges in relation to two of the universlvs three staff pension schemes, namely, the Cardiff & Vale of Glamorgan Pension Scheme ICVGPSI, and the University Superannuation Scheme IUSSI. The combined impact of the pension deficit charges arising from these two schemes amounted to £10.9m (2020.. £5.2ml during the year. These charges do not impact on operational cash generatlon however, and as such the university was able to signif￿antlY increase its accumulated cash reserve& The financial results for theyear demonstrate very solid perfomiance,e5pecially when viewed from the perspeotive of 0￿rating during a pandemic whlch had a significant impact on several of the group's income streams Including residences, caterlng. conferenclng, the hlre of sports facilities and parking.

ANwal RÈpDrt arid Finandal sratemeDts 2020- 2021 Report of the board of Governors Icontinued) Operating and Flnanclal Revlew (contlnued) Results for the Year {continued) Summary of Results 2020121 £000 2019120 £000 Income 122,289 107,124 Expenditure 119,428 108,410 Surplus/(Deficit) for the year 2,861 (1,286) Add back Depreciation 4,339 4,770 Pension Provision Charges 10,863 5,151 Cash Through Operations 18,063 8,635 The group's main income stream is derived Irom tuition fees from UK and EU undergraduate and ptislgraduate students that together amounted to £66.5m and accounted for 54% of total Income. When international lees and educational contracts are included. this rises to 74% of turnover,. thi5 is consistent with the previous year. Full time undergraduate tuition fees for UK students remained capped at £9k during the year resultlng in no inflationary uplift to the value of the fee. Income Analysis 2020-21 2%. 3% 70% Tuition fees and education contracts w Other incon Residences, catering and cOnfe￿nCeS ". TNE income Research gr3nts and contiatts Funding body gran15

AnlluJl Report and Finandal Statements 2020- 2021 Report of the board of Governors (continued) Operating and Financlal Review (continued) The Financial Outlook The group invested £ 5.2m12020.. £6.2ml in its infiastiucture during the year. Of this £2.3m was Invested in the estate, ot which £1.5m was invested in the second phase of the development ol the School of Technologies. Three further phases are planned. Expenditure amountlng to £2.9m was also invested in equipment, including circa £12m in IT Ifrastructure and corporate systems and Circa £1.7m in the academic and professlonal service departments. These investrnents maintained the Consolidated Statement ol Financial Position asset base, but it should be noted that due to the pandemic, capital expenditure during the year was lower than it would otherwise have been. Tho current ratio strengthened during the year due tothe strong operational cash generation, increasiThJ lo 1.9712020.. 1.8n- this, when comblned with a net reduction in pension provision& resulted in a £20m improvement in net assets and a matching strengthening of the Consolidated Statement of Flnan¢ial Position. The working capital inflow from increasing credltors rose by £9m between 2019-20 and 2020-21. Llquldity & Cash The group's cash and short-term investment resources at the year-end amounted to £47.1m 12020: £30ml. Investments In the estate and infrastructure during the year were funded entirely by cash generated from operating aclivilies. Loan repayments during the year totalled £1.8m thereby reduclng the group's long-term debt from £24.7m to £22.9m. This resulted in an improved gearlng ratio, with long term debt as a % of income amounting to 18.7¥0. The strong cash base will underpin the untverslty's future investment asplratlons. The Financial Outlook During 2020-2021 the university charged FT home and EU undergraduate students an anrnjal tuition fee of £9,000, as compared to the fee of £9.250 being charged in English institutions. The FT home and EU undergraduate tuition fee remains capped for 2021-2022 at £9.000 In-wales for the tenth consecutive year and at £9.250 in England. Given that the real value of the FT undergraduate fee has eroded significantly during the past ten years, the continuing lack of indexation on one of the universlty's main income streams poses funding challenges for both the university and the HE sector in general. This is being exa¢erbated by current high levels of inflation and the associated risk of future salary inflation. The Westmlnster Government's response to the Augar report is still awalted and it remains possible that the aforementioned FT undergraduate tuition fee in England might be reduced from its current £9250. If this were to happer4 it is possible that a similar ieduction might be applied by the Welsh Government to the £9000 FT undergraduate fee in Wales. In order to operate sustainably In these circumstance& the unlverslty continues to develop and implement ambitious plans to grow and diversify its Income base through the development of new academic programmes and through investment in research and Innovation activity. both to be provided through new and rejuvenated estate and Infrastructure. Charitable Status The Unlverslty became a Registered Charlty (No. 11407621 on 10 March 2011. Membership of the Board of Governors The membership of the Board for the year 1 Augltst 2020 to 31 July 2021 is set out on Page 16 of thls report. Independent Auditors The extemal auditors for the year were Prlcewaterhouseccwers LLP. The Internal auditors for the year were Deloitte LLP.

Annual Report F￿anC￿ st*￿¢nts 2020- 2021 Carfffmei Report of the board of Governors (continued) Operating and Financial Revlew (continued) Equality of Opportunity The Urtiversity works to ensure complian¢e with equality legislation and is committed to proactwely integrating the principlos of equality into all its activities. A Strategic Equality Plan has been agreed and implemented. The University is active in widening a¢¢ess to education. and in providing an inclusive approach to learning, teaching, and research. Health and Safety at Work The health, safety and wellbeing of staff and students are essential to the success of the University. The University's Health & Safely Committee considers all relevant aspects of health, safety and welfare. The Committee receives regular monitorlng reports of periodic audits of schools/units hea]th & safety management arrangements and of initiatives and/or issues emanating from s¢hool/unit health & safety meetings. Additionally, the Commtilee disseminates updates on leglslalion and guidance on good practice and monitors accident levels and staff attendance. The Minutes ol the Commlltee are presented to Ihe Resources Committee aiKI health & safety reports also feature at the University's Audit Commltte& An Annual Health & Safety Report is provided to the Board of Governors to enable it to meet its Statutory obligation to ensure cornpliance with health & safety legislation. In the lead up to the national lock-down that resulted from the coronavirus pandemic during March 2020. and in the per¢od that has followed, the Universlty has placed an increased emphasis on health and safety in the workplace. Measures were quickly put In place to ensure full complian¢e with all government coronavirus regulations and associated guidance to ensure that those stall who were required to work on-¢ampus could continue to do so in a safe and socially distanced envlronment.. and that those slafl who could work from home were properly supported to doso. Dealing with the future challenges can only be achieved through the continuing work and support of the Untversiws stall and the Board ot Governors wlsh to thank all staff for their efforts and Commitment to the University throughout the year. Modern Slavery and Human Tratficking Statement Cardiff Metropolitan University is cornmttted to ensuring that there is no modern slavery or human trafficknng in its supply chalns or in any part of its business. The UnIversit￿S policies and procedures demonstrate ils commitment lo acting ethically and with integrity in all its business activities, ensuring compliance with the requirements ol the Modern Slavery Act. The procurement function has had an'Ethical Supply Chains, Policy In place since 2011. The Policy was reviewed and updated in 2020 to ensure it continues to reflect relevant good practice. The University's workplace policies and procedures, which have been revlewed and amended to ensure they reflect the intent of the Welsh Government 'Ethical Employment in Supply Chain, Code of Practice. These policies and procedures demonstrate the University's commitfflent to acting ethically and with integrity in all its business relationships by ensuring that modern slavery and human trafflcklng do not occur within its UK and illlernational workforces or business activstie& During the year covered by this report, the University committed to ensure that all staft pay grades are at or above the Real Living Wage. The University was accredited as a Ltving Wage employer by the Living Wage Foundation in November 2019 and has paid the Living Wage rate as a minimum to all staff sill￿ August 2018. CAiminal Finance Act statement Cardiff Metropolitan University and its subsidiary companies commit to ensuring that its employees, agents and other associated persons acting on ils behalf are not facllitating lax evasion by another party. The University regularly reviews its risks and associated processes and procedures to ensure that all steps are taken to prevent lax evasion. The Univer51ty includes the risk of tax evasion on its Risk Register. The risk is reviewed and updated 3 times a year. This tncludes the rwew of controls to mitigate risks. The University reviews Its policies and

Annual Rpport 4nd Finjncial Statemertts 2020- 2021 C9￿met Report of the board of Governors (continued) Operating and Financial Review (continued) Criminal Finan¢e Act ststement (continued) guidance in relation to the Criminal Finance Act on a regular basis, in line with simllar policies IAnti.Bribery, Counter Fraud and Corruption, Anti-money Laundering policles and Financial Regulations). Climate Change Impaot Statement Cardiff Metropolitan University is committed to minimising its impact on the climate and the environment. One of the key opportunities to achieve this is through efficient mallagement of energy consumption across the unwersityestate. Energy Management within the Environment and Eslales team means providiag comfortable working. teaching and learning environments for all staff and students, while al the same time closely controlling the energy used. A network ot efeclricity, gas and water sub-meters allows us to understand energy consumption within Indlvldual txjildings. The Enmronment arKI Estates teams are committed to making sure our campuses are developed with the health aThJ wellbelng of stsff and students in mind. A number of staff Gycle and walk to work on a regular basi4 and with the promise of a cy¢le superhighway running alongside our campus, a greener- more sustainable environment- is just around the comer. Wg wntinuously looking at ways to reduce our impact, and Oltr new cleaning tender requires the useof greener, more environmentallyfriendly cleaning product4 our waste management tender needs to help us achieve oursingle-stream waste targets and our building improvements are all designed with sustainability In mind. Professor C Carmichael Aitchison President & Vice-chancellor 9 December 2021 io

Annual Report and Financial seatements 2020- 2021 Car(r￿Met Corporate Governance Statement The University 1$ comrnltted to exhibiting best practice in all aspects of corporate govemance. Thls summary describes the manner in which the University has applied the principles set out in the UK Corporate Governance Code both during the year and up to the date of approval of the financial statements. Its purpose is to help the reader of the annual report and financial statements understand how these principles have been applied. The University's Board ol Governors is responsible for the University's system of internal control and for reviewing its effectivenes& This system is designed to manage rather than eliminate the risk of failure to achieve business obiectives and can only provide reasonable and not absolute assurance against material misstatement or loss. The Unwersiws Board of Governors reviewed the University's Risk Management Policy and Risk Appetite and Tolèrance Statement during 2020-21. Thls was in line with requirernents to review the Risk Management Policy every three years and the Risk Appetile and Tolerance Statement on an annual basis. The review helped ensure that the rlsk management reporting was fully aligned to the University's Refreshed Strategic Plan and Key Performance Indicators. The University's Board of Governors received termly reports on key Corporate Rlsks and reviewed the Risk Register. The University's Audit Committee considered all risk management reports prior to lurther consideration by the Board ol Governors. The Universivs Internal Audllors assessed the Unlverslty's rfsk management arrangements during 2020-21 and provided an opinion that a 'moderate' level of assurance had been achieved. This was an improvement on 2019-20 where a 'limited' level of assurance had been provided. The University's Internal Auditors dso assessed the Universitls corporate govemanee arrangements during 2020-21 and provided an opinion that a'substantial, level of assurance had been achieved. This was an improvement on 2019-20 where a'moderate, level of assurance had been provided. The Board of Governors will Continue to keep Its rlsk management and corporate governance arrangements under régular review. This accords with guidance for directors contained within the UK Corporate Governance Code. The University's Board of Governors commissioned an external periodic review of its effectiveness towards the end of 2019-20 to ensure that the University's governance arrangements were efflclent, effectlve and lit for purpose. A comprehensive'Board Effectiveness Review. was undertaken in 2020-21 by Halpin Partnership Ltd and the Board ol Governors considered and accepted a detailed report with clear recommendations. The review recommendations advocated the following.. Moderr¢isation of the University's Articles of Government and Instrument of Government- Implementation ol a new University Scheme of Delegation; Introduction ot the Senior Independent Governor role within the University's governance arrangements., Introduction of annual appraisJ arrangements for the Chair and Governors- Proposals on Board membership. skills, training and development with reference to equality diver51ty and Inclusion.. Proposals for improved business management arrangements for Board and Committee meetings- Increased Board focus on strategic and cultural aims of the University- Iviiil Proposals to support effective working betW￿n the Board of Governors and the Executive, and; Proposals on how to implement key recomm8ndations of the Governance Review of Universities in Vvales (Camm Rewewl. Iv) The Board Effectiveness Review also considered the UniversitWs govemance arrangements against a Govemance Maturity Framework. The Framework has four levels-. lil Failing-, lill Improving.. liiil Good,. and livl Leading Edge. The review highlighted that the UniVersi￿S governance arrangements were'liil Improving.. Review recommendations will continue lo bo implemented during 2021-22 with a view to achieving 'liiil Good, rating by the end of the year. The Unlverslly's Governance and Nominations Committee and the Board of Govemors will monitor progress against implementation directly. li

AMu41 Reporr and Financial Statements 2020-2021 Corporate Governance Statement (continued) The Chaii of the Board of Governors reslgned In March 2021 and was replaced by the Vice chair who acted as Chair in an interim capacity until the end 012020-21. A number of other Governors resigned or retired during 2020-21. The University recrulted a new Chair of the Board of Governors and six new Independènt Govemors tow￿dS the end ol 2020-21 in readiness for 2021-22. The refreshed membership will help ensure that the Board of Governors and its Committees will have the required diverse range of skills and experience required to address future challenge$ 2021-22 and beyond as the University moves totward with the development of its new Strategic Plan and recovers from the impact of the global pandemic. The University continued in 2020-21 wth the interitn governance arrangements introduced in 2019-20 In response to meeting the challenges of the global pandemic. The Universitws Standing Orders remained suspended to allow monthty meetings of the Board of Governors {with the exception of August 2020, January 2021 and April 20211 and increased delegation to committees as permitted under the Universlty's Articles of Governmellt. The Board of Governors continued in 2020-21 with a streamlined committee structure with lil an Audit Comnuttee,. (ill a Govemance and Nominations Committee, (iiil a Remuneration Committee. and livl a Resources Commlttee. All committees were formally constituted with terms of reference and membership comprised exclusively or mainly of independent members of the Board of GovÈrnor& The Board of Governors and its committees had a clear schedule of meetings and an agreed work programme for 2020-21. Additional meetings were convened on an exceptional basis to meet the Unfversitls decision-maklng exi9encies as required. All meetings of the Board of Governors and its committees were held remotely during 2020-21. The Unlversity continued lo operate a Combined Academic Board during 2020-21 to support streaffllined and agile decision making in meeting the challenges of the global pandemic. Towards the end of 2020-21, the Board of Govemors agreed to proposals for the Combined Academic Board to be disaggregated from the start 012021-22 into a separate Academic Board and Management Board. The membership ot both bodies was exlenslvely reviewed as part of thls pro￿$$. Towards the end 012020-21, the Board of Governors also agreed to proposals to re-establish ils Strateglc Planning and Performance Committee for 2021-22. The Committee will have a revised and extended remit covering strategi¢ planrsing, performance and academic assuranc& Membership of the University's Audit Committee included two Independent members through the course of 2020-21 who were not members of the Board of Governors and who thus provlded additional externality to the Committee's dellberations. The University's senior executives attended meetings of the Audit Committee as necessary but were not Members of it. The Audit Committee met three times during 2020-21 wlth attendance by the UnDiersit￿S internal and external auditors as appropriate. The Commlttee considered detailed internal audit report& which, as appropriate made recommendations for the University's systems ol internal control and Included management responses and implementation plans. The Committee also monitored adherence to regulatory requirements and consid9rgd reports from external auditors, the Higher Education Funding Council for Wales and other sources as they affected the Universitvs busines& The Committee met privatdy wlth thé Universitys Internal Audllors betore meetings and also met with the External Auditors as required. The responsibility for embedding risk management across the institution and maintaining an overview of the key high- level institutional risks rested with the University's Combined Academic Board during 2020-21. The Board of Governors and the Combined Academic Board recelved reports setting out key performance indicators, identified risks. and related control measures. The Audit Committee received and examined regular Risk Management reports that helped to inform the (uture direction of the rolllng Internal audit prograrr#ne. The Executive received regular reports from the univers11￿$ internal and external auditors which included recommendations for improvement. The Audil Committee provided review and scrutiny of the arrangements for internal financlal controL The Board of Governors, meeting agendas included regular items for the consideratK)n of risk (including Covid-19 related risks)., regular reports thereon were received from the Executive and the Audit Committee. The management of risk and implementation of appropriate risk management measures has been a significant priority for the Universlty since the start of the pandemic. The Board of Governors has played a key role In ensuring that these arrangements were properly reviewed and scrutinised to achieve assurance. Towards the end of 2020-21 the Universitrfs Audit Committee approved the award of the contract for the provision of the Universitrfs Inlernal Audit servl¢es to a new provider for an Inlllal three year term from the start of 2021-22 A 12

Annual Report and Financial Statampnts 2020- 2021 C4ttfTffMei Corporate Governance Statement {contlnued) new programme of work has been developed for¢onslderation by the Commlttee at an additiond meeting at the start of 2021-22. The Chalr of the UniVersit￿S Audit Committee retlred as an Independent member of the Board of Governors at the end of 2020-21 having served two full terms of office. The Board of Governors appointed a new Chair of the Committee in readiness for the start of 2021-22. The new Chair of the Committee is an Independent rnember of the Board of Governors who was also a member of the Audit Committee during 2020-21 and previous year& The University's Governing Body has throughout 2020-21 adhered to the provi8ions of the Higher Education CcKle of Governanoe issued durlng the Spring Term of 2015. 13

Report and Financkryl Statements 2020- 2021 Annual Remuneration Statement The Board ol Govemors of Cafdiff Metropolitan Universlty oversea a separate Remuneration Committee and in line with its terms of reference the committee conslders all aspects of remuneration to senior University staff. Membership of the Remunerations Committee comprises: Independent Governor Ichair of Remuneration Committee) Independent Governor/ Chair of the Board of Governors 3 Independent Governors The Remuneration Committee considers and determines matters relat￿g to the remuneration and terms and conditions of senior staff at the Universlty. It undertakes a s¢rutiny role and ensures that the remuneration arrangements for all senior post holders supports the University's strategic and enable the recruitment, motivations and retention of senior staff while also complwng with the requirements of regulation and best pract￿e. The Remuneratton Committee meets three times a year, reporting into the Governing Body. It presents an annual report to the Board of Governors which seeks to provlde assurance to the governing body that the Remuneration Committee is effectively discharging its responsibllltie& The Remuneration Committee has delegated authorily to consider and approve matters relatlng to the remuneration of senior staff (including the Vice-Chan¢ellgrl in accordance wlth the Senior Remuneration Policy Framework. While the Vice-chancellor is listed as being'in attendance. at meeting4 the Remuneratlon Committees terms of reference are clear that they will not be present durlng discussion relating to their own remuneration. The Remuneration Commlttee undertook a sigr￿fICant revlew of its terms of referer￿e at the end ol acaderniG year 2019120 to ensure Ils remit was properfy aligned to the CUG code of practice as well as HEFCW requirements. The review was completed in De￿mber 2019 ensuring that Cardifl Metropolitan University is fully compliant with this Code. As a resulL the Remuner2tlon Committee's Terms of Reference were updated, and a Senior Staff Remuneratlon Policy Framework was adopted. The Remuneration Committee operates in accordan¢e with this Framework It reviews a range of data and information including salary history, equality, diversity and inclusion. comparator benchmarklng data, and individuaf pertomiance against agreed objectives and success measures. An annual pay tx)licy statement is presented alongside the annual report to Board of Governor& This annual statement Is published on the Unlversity's website and sets out- A list of post holders within the remit of the Committee., The University's policy on the remuneration of post holders withln the remit of the Committee,. The pay multiple of the V}￿-ChanCe1l0r and the median eamings of the Institution's whole workforce. and An explanatlon of the pay arrangements for all other staff At the stsrt of each academio year. the Vice-chancellorfs performance oblectlves, whlch Include measures ol su¢tsss, are agreed and endorsed by the Remuneration Committee. Termly pertormance discussions are held between the Chair of the Board of Governors and the Vice-chancellor. An end of year perfOrrnan￿ review is completed, where feedback is sought from wtder stakeholders. A range of data and comparative information on the Vice-chancellor's remuneration is presented to the Remuneration Committee and the Director of People Services attends the meeting to provide guidance. The Chair ol the Board of Governors presents a summary of the Vice-chancellorfs performance against the agreed objectives and success measures. along with a remuneration proposal. In considering the Chair of the Board of Governor's recommendation to the Committee and whether It is justified. the Commlttee reviews a range of data and informatlon, Including.. 14

Annual Repart and FifianciBI State￿nts 2020- 2021 Annual Remuneration Statement Icontinued) The Vice-chancellorfs salary history., How the Vice-Chance11orfs remurberation compares to that of other Vlce-chancellor's across Institutlon comparator groups (by income & size)., How the Vice-chancellor's current salary compares to that of other staff at the Universlty as a multiple of the Vice-chancellor's basic salary compared with the median eamings of University's whole staff- The Vice-chancellor's and the UniversiWs performance over the review period. and The context in which the University operates The period between 2018 and 2021 was remarkable. The University achieved good student outcomes, finan¢ial viability, growth and positive organisational culture. The University was awarded the Welsh University of the Year Award in 2021. These many achievements were even more significant, as they were delivered against the baGkdrop of the Coronavirus pandemic. The Vice Chancellor's remuneration and median pay ratio for the financial year 2020-2021 are detailed In note 7 of the notes to the accounts 15

Annual Report and Anancial Stfjtemgnt$ 2020. 2021 C#xthffMet Governors and Directorate ver Period of Office Independent Governors The Baroness Finlay of Llandaff Ireslgned March 20211 Ichairl Mr N Capaldi Ico Vice-chair) Ilnterim Chair from March 2021) Mr S Waddington Mr D Warrender Mrs S Goodson (Co Vice-chairl (resigned March 2021) Mr M Flshwi¢k (resigned March 20211 Ms S Hendrickson-Brown Mr U Hussain MBE (retired July 202t) Ms R Marks MBE (retired April 20211 Mr P Matthews Professor M Nimmo Ms M Owen-Jones Ilnterim Co Vice-chair from March 20211 Dr C Turner Ilnterim Co Vice-chair from March 20211 1 August 2018 to March 2021 28 November 2018 to date 28 November 2018 to dale 28 November 2018 to dale l August 2017 to March 2021 1 May 2020 to March 2021 1 May 2020 to date 1 August 2015 to 31 July 2021 1 May 2020 to 31 April 2021 1 May 2020 to date 8 Jun& 2020 to date 1 May 2020 to datg 1 August 2017 to date President & Vi¢e-Chancellor Professor C Aitchison 1 October 2016 to dat9 Academi¢ Board Governor Dr K Thirlaway 1 October 2018 to 31 July 2021 Student Govemors Mr M Pavulurl ISU President) Ms K Davies ISU Vice-Presidentl 1 August 2020 to 31 July 2021 1 August 2019 to 31 July 2021 Co-opted Governor Mrw G Davies 1 December 2015 to date Staff Govemors Dr M James (Academic) Mr D Yearwood IProfesslonal Se￿Ce$l 15 October 2020 to dale 28 November 2019 to date Co-opted Extemal Member of the Audit Committee MrA Piper Ms L Winstone Secreta & Clerk to t Ms C Fraser 27 January 2020 to dale Desi nated Senior Posthol Professor S Hanton Professor J Boddington Professor L Robinson Mr D Llewellyn PVC Research & Innovatlon PVC StLKlent Engagement PVC Partnerships & External Engagement Chief Officer (Resources) 23 Aprll 2012 to date 18 September 2017 to date 2 October 2017 to date 1 January 2020 to date 16

ATrwal Reporr and Finènckal Statements 2020- 2021 Key Performance Indicators The University utilises a number of Key Performance Indicators (KPIS) to assist In the monitoring of the University agaSnst its objectives. The Univer5iÉy's Key Performance Indicators are shown below. Students Numbers Outcomes 9,701 applications 8,047 total undergraduates 3,272 total postgraduates 15% overseas students 76% ot students are satisfied INSS 20211 84.5% achieved a First or 2..1 degree120-211 68.4% of graduates are in professional level work or further study 15 months after completion ol course117-181 Cardiff Metropolitan Universlty Is placed 63rd out of 130 universities in the Conwlete University Gulde 2022 Staffing Total Staff (FTE) 1,319 A¢ademl¢ Staff IFTE) 549 17

Annual Reptyt aThY Financial Stat4ments 2020- 2021 Key Performance Indicators Icontinued) Student Key Pertorman¢e Indicators Undergraduate degre9 su¢¢ess- Proportion obtaining 1St/2:1 class degree Measuring I Success in supp(Kling students in their learning experience 2020-21 .12019-20 Student Satistactlon Measurlng Student Satisfaction Year 2019-20 rstaff / Studgnt Ratio Measuring -TNumber of Students per academlc staff member 2020-21 2019-20 185 restated 18

Annual Aoport aThY F￿an¢￿1 51at•rnMts 2020- 2021 Key Performance Indlcators (continued) Diversity- Students KPI P&rcentage of student5 from disadvantaged backgrounds Measuring Success at attracting under-represented groups into higher education, through Welsh Index of Multiple Deprivation (WIMDI Year From WIMD Areas Not from WIMD Areas 20121 ,. 40% 1-19120 40% KPI Percentage of Male and Famala Students Measuring Gender balan¢e Year Male -l- Female 19120 54Vo KPI Proporti*)n of studenls who are BME Measuring I Participation rates of BME students at the University Year BME White 20121 24% 19120 24% 76% KPI International Students Measuring Ability to attract international students / promote student diversity Year HomelEU Overseas 20121 85% 15% 19120 84% 16% 19

Annual Ropoit and FIn￿CIal Statements 2020- 2021 Car<fiffMei Key Performance Indicators (continued) Dlverslty- staff Gender Measuring Gender balance of Staff IHeadcount) Male l Female 158% Females in Senior roles Aeasuring Female staff members in senior roles 30136.1Yo) 26 {33.8%1 student Numbers-2020-21 All Students HomelEU HomelEU FfE Oversea$ Overseas FfE Total Total FTE Full-time 7.194 6,959 378 336 7,572 7,295 117 Undergraduate Part Time 472 116 475 Total 7,666 7,075 1,042 381 337 8,047 7,412 Postgraduate Full-lime 1.170 1,240 889 2,410 1,931 illflll Taught Part Time 583 180 11 36 594 216 Total 1,753 79 1222 1,251 26 925 3,004 105 2,147 Postgraduate Research Full-time 66 21 87 Part Time 143 55 20 10 163 65 Total 222 121 46 31 268 152 Total 9.641 418 1,678 1,296 11B19 9.711 20

Rep(rt and FinBnchil StatEment$ 2020- 2021 Independent auditors, report to the Governing Body of Cardiff Metropolitan University (the "institution") Report on the audit of the financial statements Oplnion In our opinion, Cardiff Metropolltan University's group financial statements and parent institution financi statements (the Yinancial statements").. give a true and l&r view of the stale of the group's and the parent Instllution's affairs as al 31 July 2021, and of the group's and parent institution's income and expenditure, gains and losses, and changes in reserves and of the gr￿p.$ cash flows for the year then ended- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practi¢e (United Kingdom Accounting Standard5, comprising FRS 102'The Financial Reporting Standard applicable in the UK and Republic of Ireland" and applicable lawl., have been properly prepared in a¢cordance with the requirements of the Statement of Recommended Practice- Accounting for Further and Higher Education. and have been prepared in accordance with the requirements of the Charities Acl 2011. We have audited the financial statements. included wlthin the Annual Report & Financial Statements Ithe°Annu Report"), which comprise: the Consolidated & University Statements of Financial Position as at 31 July 2021,. the Consolidated & University Statements of Comprehensive Income & ExpendTture, the Consolidated & University Statements ol Changes in Reserves and the Consolidated Cash Flow Statement for the year then ended., the Statement of Principal Accounting Policies: and the notes to the financial statements. Basis for opinion We ¢onducted our audit In accordance with International Standards on Auditin9 (UK) I'ISAS IUKI'I and applicable law. Our responsibilities under ISAS IUKI are further described in the Audltors, responsibilities for the audit of the financial statements section of our report. We beI￿ve that the audit evidence we have obtalned is sufficient and appropriate to provide a basis for our opinion. Independence We remained indepermjenl ol the group in accordance with the ethical reqijirements that are relevant to our audit of the financial statements in the UK which includes the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with these requirement Conclusions relating to going concern Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that. individualy or collectively, may cast significant doubt on the group's and parent institution's abillty to contlnue as a going concern for a period of at least twelve months from the dale on wh￿h the financial statements are authorised for issue. In auditing the financial statements, we have concluded that the Governing bodls use of the going ¢on¢ern basls of accounting in the preparation of the financial statements Is appropriate. However, because not all future events or conditions can be predicted, this conclusion Is not a guarantee as to the group and parent Institution's ability to continue as a going concern. Our responsibilities and the responsibilities of the Governing body wlth respect to going ¢oncem are described in the relevant sections of this repori Reporting on other information The other Information comprises all of the infomiation in the Annual Report other than the financial statements and our auditors, report thereon. The Governing Body is responsTble tor the other information. Our opinion on the flnancial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent Other￿Se explicitly stated in this report. any form of assurance thereon. 21

AnrwJal R•port and Finandal Statemenr5 2020- 2021 Car(fffMet In connection with our audit of the financial statements, our responsibiltty is to read the otherfnformation and, in doing so, consider whether the other infom)ation is materially inconsistent with the financial statements or our knowledge obtalned In the audit, or otherw¢se appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of Ihe 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 inforrnalion. we are required to report that fact. We have nothing to report based on these responsibilities. Based on the responsibilities described above and our work undertaken in the course of the audit. ISAS IUKI requlre us also to report certain opinions and matters as described below. Report of the Board of Governors Under the Charities Act 2011 we are required to report to you if, in our opinion, the information given in the Report of the Board of Governors is inconsistent in any materlal respect with the financial statements. We have llo eX￿PtiOnS to report arising from this responsibility. Responsibilities for the financial statements and the audit Responsibilities of the Goverrnng Body for the flnanoalstatements As explained more fully In the Responsibilities of the Board of Governors set out on page 4, the Governing Body Is responsible for the preparation of the financial statements In accordance with the appllcable framework and for being satisfied that they give a true and fair vlew. The Goveming Body is also responsible for such inlemal Control as Ihey determine is necessary to enable the preparation of financlal statements that are Iree from material misstatement, whether due to fraud or error. In preparing the financial statements, the Governing Body is responsible for assessing the group and parent institution'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 Governing Body either intends to liquidate the group and parent institution or to cease operatic￿$, or has no realistic altematNe but to do so. Auditors'r8sponsibilities for the audit of the finan￿al statements We are eligible to act and have trEen appointed as auditors under section 144 01 the Charities Act 2011 and report in accordance Mth the Act and relevant regulation5 made or having effect thereunder. Our objectives are to obtain reasonable assurance aboul whether the financlal statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors. report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misslalements can arise from fraud or error and are considered material if. individually or in the aggregate, they could reasonably be expected to intluence the economlc decisions of users taken on the basis ol these financiat statements. Irregularities, including fraud, are Instances of non-cornpliance wwth laws and regulations. We deslgn procedures in line with our responsibilitie& outlined above. to detect material misstatements in respect ol irregularitEs, including fraud. The extent to which our procedures are capable of detecting irregularities, includtng fraud, Is detailed below. Based on our understanding of the institutionfindustry, we identifled that the principal risks of nOn￿OmplIance with laws and regulations related to UK health & safety and employment legislation together with the Higher Education Funding Council for Wales I'HEFCW'I Financial Management Code, and we considered the extent to which nC￿- compliance might have a material elfect on the financial statements. We also considered those laws and regulations that have a direct Impact on the financial statements such as the Gharllies Act 2011. the Statement ol Recommended Practlce- Accounting for Further and the Higher Education Funding Council for Wales Accounts Direction IW21119HEI. We evafuated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and detemined that the princSpal risks were related to fraudulent transactions designed to overslate the financiat performance and position of the group. Audit procedures performed included-. Reviewing committee meeting minutes and holding discussions with management, including consideration of known or suspected instances of non.compliance with laws and regulations and fraud: Using computer based audit techniques to identlfy and test higher risk manual lournal& in parllcular those having unusual account comblnatlons. 22

CarcfiffMet

Annual Report and Financial Statements 2020 - 2021

• Reviewing the appropriateness of the assumptions used by the group in estimating the value of defined benefit pension scheme deficits; and

• Obtaining third party confirmations of all the group's banking and financing arrangements.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.

Use of this report

This report, including the opinions, has been prepared for and only for the institution's Governing Body as a body in accordance with section 1248 of the Education Reform Act 1988 as amended by section 71 of the Further and Higher Education Act 1992 and section 151 of the Charities Act 2011 and regulations made under section 154 of that Act (Part 4 of the Charities (Accounts and Reports) Regulations 2008) and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Other required reporting

Opinion on other matters prescribed in the Higher Education Funding Council for Wales ('HEFCW') Audit Code of Practice issued under the Further and Higher Education Act 1992 and the Financial Management Code issued under the Higher Education (Wales) Act 2015

In our opinion, in all material respects:

• the requirements of HEFCW's accounts direction have been met;

• funds from whatever source administered by the parent institution for specific purposes have been properly applied to those purposes and managed in accordance with relevant legislation;

• funds provided by HEFCW have been applied in accordance with the Memorandum of Assurance and Accountability, the HEFCW Financial Management Code and any other terms and conditions attached to them; and

• funds provided by HEFCW have been used for the purposes for which they were received.

Sufficiency of accounting records and information and explanations received

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

• sufficient accounting records have not been kept by the parent institution; or

• the parent institution financial statements are not in agreement with the accounting records and returns; or

• we have not received all the information and explanations we require for our audit.

We have no exceptions to report arising from this responsibility.

PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Cardiff

14 December 2021

23

Annual Report and Finantsal Statement$ 2020- 2021 Canfjffmet Statement of Principal Accounting Policies Basis Ot Preparation These financial statements have been prepared in accordance with th¢ Statement of Recommended Practice ISORPI: Further and Higher Education 2019 and in accordance ￿th Financial Reporting Standard IFRS) 10?. the Accounts Direction issued by the Higher Education Funding Council for Wales and the Charilles Act 2011. The University is a public benefit entity and therefore has applied the relevant public benefit requlrement of FRS 102. The finartciar statements are prepared in accordance wtth the historical cost convention (modified by the revaluation of lixed assets). The principal accounting policies have been applied consistently except as where described otherwise arKJ are set out below. Basis of Consolidation The consolidated financi￿ statements include Cardilf Metropolltan University and its wholly ovmed subsidiary undertaking& Cardiff Met Company Ltd and Cardiff Metropolitan Education Services (Beijing) Ltd. In addition, the University holds a majority {55%1 share interest in a spin out company Fovo Technology Ltd, the balan￿ of the shares being held by two of the University's academics. This company's activity is also consolidated into these finanefial statement& However, the non-controlling interest of the minority shareholders in the nel assets and surplus of the ompany are highly immaterial to the University group. These non-¢ontrolling interests have therefore not been presented. The consolidated financial statements do not include the income and expenditure of the Students, Union as the University does not exert controi or significant influence over policy decisions. Inlra-group sales and profits are eliminated fully on consolidation. Income Recognition Income from the sale of goods or services is credited to the Consolidated Statement of Comprehensive Income and Expendibjre when the goods or Se￿iceS are supplied to the external customers or the temis of the contract have been satisfied. Fee income is stated gross of any expenditure which is not a discount and credited to the Consolidated Statement of Income and Comprehensive Expenditure 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. Fee scholarships are treated as a discount and are deducted from income. Investment income is credlted to the Consolidated Slatement of Gomprehenslve Income and Expenditure on a receivable basis. Grant Funding Grant funding Including funding councll grants- research grants from government sources. and grants (including research grants) from non-government s(MJrces are recognised as income when the University is entitlgd to the In¢ome and performance related condltions have been met. Income received in advance of performance related conditlons belng met Is recognised as deterred Income within creditors on the Consolidated Statement of Financial PosltSon and released to income as the conditions are met. b) Donations and Endowments Non exchange transactions without pertormance related conditions are donations and endowments. Donations and endowments with donor-tmposed restrictions are recognised in income when the University is entitled to the funds. Income is retained wlthln the restricted reserve until such time that it is utilised in Ilne with such restrictions at which point the income is released to general reseNes through a reserve transfer. Donations with no restrlctlons are recognised in tncome when the Universtty is entitled to the fund& Inveslment incorne and appreclation of endowments Is recorded Sn income in the year in whlch it arises and as either restricted or unrestricted Income accordlng to the temis of the restrictlons applied to the individual &)dowment fund. 24

Annual Agport Finar¢ial ZOIO- 2021 Statement of Prlnclpal Accounting Policies (continued) Income Recognition lcontinued) b) Donalions and Endowments (¢ontinued) There may be four main types of donations and endowments identified within reserves: Restricted donations- the donor has specified that the donation must be used lor a particular objective,. Unrestricted permanent endowments- the donor has specilied that the fund is lo be pemianently Invested to generate an income stream for the general benefit of the University., Restricted expendable endowments - the donor has specified a particular objective other than the purchase or construction of tangible fixed assets, and the University has the power to use the capital- Restri¢ted permanent endowments- the donor has specified that the fund is to be pemianently invested to generate an income stream to be applied to a particular objective. c) Capital Grants Capital grants are recognised in income when the UnThfersity is entitl￿ to the funds subject to anyperlormance related conditions being mel. Accounting for Retlrement Benefits The University operates three pension schemes for University staff., the Cardiff and Vale ol Glamorgan Pension Fund ICVGPFI, the Teachers, Pension Scheme ITPSI and the Universities Superannuation Scheme (USSI. The CVGPF and USS are funded schemes. The CVGPF is valued every three years by a professionally qualified actuary using the projected unil method, the rate of contribution payable being determined by the Administering Authority on the advice ol the actuary. The TPS is sutiect to an actuarial valuation every five year5 by tho Government Actuarial Department using the age entry method. The rate ol contribution for the TPS is detemiined by the Teachers, Pension Agency on the advice of the actuary. The USS is a multi-employer scheme for which it is not possible to identTfy the assets aiKI liabilities attributable to the University at member level due to the mutual nature of the scheme and therefore this scheme is accounted for as a defined contribution retirement benefit scheme. However, in aGGordance with FRS101 a bability is recorded within provisions for any contractual commitment to fund past deficits within the USS sGheme. Delined Contrlbutlon Plan A defined contribution plan is a post-employmtnt bgnefit plan under which the University pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution penslon plans are recognised as an expense in the income statement in the periods during which serwces are rendered by employees. Given the nature of the TPS, contributions to that scheme are accounted for on this basis. b) Defined Benefit Plan Defined benefit plans are post-employment benefit plans other than delined contribution plans. Under defined benefit plans, the Universitls obligation is to provide the agreed benefits to current and former ernployees, and actuarial risk (that benefits will cost more or less than expected) and investment risk (that returns on assets set aside to fLtnd the benefits will differ from expectationsl are borne, in substance, by the Unwersity. The group should recognise a liability for its obligations under defined benefit plans net of plan assets. This net defined benefit liability is measured as the estimated amount of benefit that employees have earned in return for their service in the current and prior periods, discounted to determine its present value, less the fair value lat bid pricel ol plan assets. The calculation is perfom)ed by a qualified act￿ary using the projected unit credit method. Where the calculation results in a nel asset. recognition 25

Arwwal Rewrl and Financial Stalemenr5 2020- 2021 Carfjffmet Statement of Principal Accounting Pollcies {contAnued) Accounting for Retirement Benelits {¢ontlnued) b) Defined Benetit Plan of the asset is limlted to the extent to which the University is able to recover the surplus either through reduced contributions in the future or throltgh refunds from the plan. Employment Benefits Short term employment benefits such as salaries and compensated absences are recognised as an expense In the year in which the employees render service to the University. Any unused benefits are accrued and measured as the additional am￿nt the University expects to pay as a result of the unused entitlemenl. Finance Leases Leases In which the University assumes substantiaily all the risks and rewards of ownership ol the leased asset are classlfled as finance leases. Leased assets acquired by way of finance lease and the correspondSng lease liabllities are initially recognised at art amount equal to the lower of their fair value and the present value of the minimum lease payments at inception of the lease. Minlmum lease payments are apportioned between the finance charge and the reduction of the oulslanding Ilabillty. The finance charge is allocated to each period during the lease term so as to produce a constant Ferlodlc rate of interest on the remaining balance of the liability. Operating Leases Gosts in respect of operating leases are charged on a straight-line basts over the lease ter￿ Any lèase premiums or incentives are spread over the minimum lease term. Forelgn Currency Transactions in foreign currenrAes are translated to the respective functional currencies of Group entities at the foreign exohange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Consolidated Statement of Financial Position date are translated to the functional cuirency at the forelgn exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in Surplus or Deficit. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated uslng the exchange rate al the date of the transaetion. Non-monetary assets and liabilities denominated in foreign currencles 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. Fixed Ass8t$ Land and Bulldlngs Certain items of land and buildings that had been revalued to fair value on or prior to the date of tran&lion to the 2015 FE HE SORP, are measured on the basis of deemed cost, being the revalued amount at the date of that revaluation, less accumulated depreciation and accumulated IMp￿[Ment losses. Costs incurred in relation to land and buildlngs after initial purchase or construction. and prror to valuation, are capitJised to the extent that they increase the expecled future benefits to the University. Fr98hold land is not depreciated as it is considered to have an indefinite useful life. Freehold buildings are depreciated on a strwght-line basis over their expected useful lives of between 20 and 75 years. No depreciation is charged on assets In the course of construcllon. 26

Annual R•port and FinanEial Stat•mknts 2020- 2021 Statement of Principal Accountlng Policies (continued) Fixed Assets (continued) b) Equlpment Equipment costing less than £5,000 per individual item is written off to the Consolidated Statement of Income and Expenditure in the year of acquisition. All other equipment Is capitalised at cost. Capitalised equipment is depreGiated on a straight-line basis over its useful economic life of between 3 and 10 year& Equipment purchased for research projects is treated and depreciated on the same basis as other equlpment expenditur Depreciation methods, useful lThres and residual values are reviewed at the date of preparation of each Consdldated statement of Financial Position. Borrowing costs Borrowing costs which are directly attributable to the acquisltion. construction or production of a qualifying asset are apitalised. 10. Intangible Assets Software development cost5 are capitalised and amortised on the straight-line basis over an estimated useful life of between five and ten years. Amortisation ol such developments cornrnences when brought into use. Intellectual property: The Group is developing software teCh[￿lOgY relating to new ways of creating and interacting with digital images. Costs that are directly attributable to the design and testing of the technology are recognised as an intsngible asset when the following criteria are met. It is technically feasible to complete the underlying software so that the technology will be available for use, Management intends to complete the development and to sell or licence the use of the technology, 11 can be demonstrated that the technology will generate probable future economic benefits at least equal in value to the Consolidated Statement ol Financial Position carrying value, Adequate technical and financial resources to complete the development and to sell or Ilcence the technology are available, and The expenditure attributable to the developmenl of the technology can be reliably measured. Other development expenditures that do not meet these criteria are recognised as an expense as incurred. Development costs prevlously recognised as an expense are not recognised as an asset in a subsequent period. Intellectual property is amortised over its estimated useful Ilfe commencing at the date that devel¢wment is complete, and the technology is avalabEe for sale or licensing. Investments Non-current asset investments are held on the Consolidated Statement of Financial Position at amortised cost less impairment. Investments in subsidiaries are carried at cost less impairment in the Universitls financial staternent$. Current asset investments are held at on the Consolidated Statement of Financial Position at amortised cost less Impairment. 12 Stock Stocks are stated at the lower of cost or net realisable value and is measured using an average cost formula 27

Att￿31 Report and Flnand* Statèrnènts 2020- 2021 Car(fjffMet Slatement of Principal Accountlng Policies Icontinued) 13 Cash and Cash Equivalents Cash includes cash in hand, deposits repayable on demand and overdrafts. Deposlts are repayable on demand If they are in practice aV￿lable within 24 hours wilhoul penalty. Cash equivafents are short term, wth a notrce perlod of 3 months or less, hlghly liquid investments that are readily convertible to known amounts of cash wllh Inslgnificant risk of change In value. 14 Provision4 Contlngent Llabllities and Contlngent Assets Provisions are recognlsed In the financial statements when-. The University has a present obligatlon (legal or constructivel as a result of a past event- It Is probable that an outflow of economic benefits wtll be required to settle the obligation., and A reliable estimate can be made ot the amount of the obligation. b) The amount recognised as a provlsion is determlned by discounting the expected future Cash flows at a pre-tax rate that rellects risks specific to the liability. A contingent liability arises from a past event that gives the University a posslble obllgalion whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly wlthln the control ol the University. Conlingenl liabilities also arise in circumstances where a provision would otheTh￿se be made but èither it is not probable that aN outflow of resources will be requlred. or the amount ol the obligation cannot be measured reliably. A contingent asset arises where an event has taken place that gives the University a possible asset whose exlstence will only be confirmed by the occurrence ￿ otherwise of uncertain future events not wholly wlllNn the control ol the University. Contingent assets and Ilabllities are not recognised In the Consolidated Statement of Financial Posltlon but are disGlosed in the note& 15 Taxation The University is an exempt charity wlthin the meaning of Part 3 of the Charities Act 2011. it is therefore a eharity thin the meaning of Para 1 of schedule 6 to the Finance Act 2010 and accordingly, the Universlly Is potentially exempt fro￿ taxation in respect of income or capital gains received wthin categories covered by sectlon 478-488 of the Corporation Tax Act 2010 ICTA 20101 or section 256 of the Taxation of Chargeable Gains Act1992, to Ihe extent that such income or gains are applied to exclusively charltable purposes. The University receives no similar exemption in respect of Value Added Tax. Irre¢overable VAT on inputs Is Included in the costs of such inputs. Any irrecoverable VAT allocated to fixed assets is included in their c05L The Universivs subsidiaries are liabla to Corporation Tax in the same way as any other commercial organisalion. No charge for taxation has been included in respect of the Subsidiary Companies, actiwties since the entlTe taxable profit of these companies is transferred to the University under the Gift Aid scheme. Deferred tax 1$ provided in full on timing differences which result in an obligation at the Consolidated Statemenl ol Financial Position date to pay more ta& or a right to pay less tax. at a future date, at rates expected to apply when they crystallise based on current rates and law. Timing differences arise from the inclusion ol item5 of income and expendllure in taxation computations in periods different trorn those in which theyare included in financial statements. Deferred tax assets are recognised when it is more likely than not that they will be recovered. Deferred tax assets and liablllties are not discounted. 16 Reserves Reserves are classified as restricted or unrestricted. Restricted endowment reserves Include balanees which, through endowment to the Unlversty, are held as a permanently restricted fund which the University must hold In perpetuity. 28

Annv41 fir*port and FinèncI￿ Staremenrs 2020- 2021 Statement of Prlncipal Accounting Pollcles (continued) 16 Reserves (¢ontinued) Other restri¢ted reserves include balanG95 ￿ere tho donor has designated a specific purpose and therefore the Universlty is restricted in the use of these funds. 17 Crltlcal a¢¢ountlng ludgements and estlmatlon uncertainty Pension schemes.. assumptlons used in the calculation of the USS and C&VPF pension deficit prowsions represent a key accounting estimate based on the sensitivity of assumpllons (note 17 and note 221. Employee Leave Accrual: under FRS102 the University re¢ognises a Ilability for employee holiday pay at the financial year end. A number ol departments and sGhools within the University have been sampled to derive typical holiday usage, this has then been applied lo the University as awhole. There is a level of uncertainty when applying the sample to the whole. The leave accrual is contained within creditors less than 1 year (note 141. Intangible assets. critical judgements: The Group18 developing software technology relating lo new ways of creatlng and interacting with digital images. The criteria used for the recognition of development and other costs as an intangible asset reqLtires an assessment ol future events including the technical feasibility that the technology will be available for use such that future economk benefits will be generated. The Group considers that the testing performed to date and the Initi￿ feedback frorn potential users of the technology supports the recognition of the intangible asset. Intangible assets. key accountlng estimates and assumptions: The Group considers whether Its intangible assets are impaired. Where an indication of impairment is identified the estimation of recoverable value requires estimation at market value or the future cash flows and the selection of appropriate discount rates in order to calculate the net present value of those cash flows. 29

Annual Finonu415tatements 2020- 2021 C9￿met Consolidated & University Statements of Comprehenslve Income & Expenditure Year Ended 31 July 2021 Note Year ended 31 July 2021 Year ended 31 July 2020 Consolidated University Consolidated University £'ooo £'ooo £'ooo £'ooo Income Tuition fees and educatlon contracts Funding body grants Research grants and contracts Other Income Investment income Donations Total income 90,242 14772 2,429 14,726 117 90,228 14,769 2,150 13,029 117 84,179 3,512 2,272 16,986 148 27 107124 84,128 3,512 1,750 14.936 14 104.488 121289 120,293 Expenditure Staff costs Exceptional severance costs Other operating expenses Depreciation Interest and other finance costs Total expenditure 80,186 78,045 70922 68.676 31,954 4,339 31,270 4,311 1950 116 576 29,919 4.T/O 2,799 108,410 28,653 4.742 2,799 104,870 10 Surplus/lDeficit) forthe year 2,861 3,718 11,2861 3821 Actuarial gain/llossl in respe¢t of pension schemes 22 17,470 17N70 (53,3301 (S3￿0) Total comprehensive Income/(expense} for the year 21,188 154.6161 153 712) Represented by: Unrestricted total comprehensive expense for the year attrlbutable to the Group and University 20,331 20,331 154.6161 153,712) 154.6161 {53 712} Ail items of income & expenditure relate to continuing activities. 30

Annuol Report and Financial 5tètements 2020- 2021 Consolidated & University Statements of Changes in Reserves Year Ended 31 July 2021 Total Rwrv85 Conso14d8ted £'ooo Balance at 1 Au9USt 2019 85,716 Dtrlieit for the year Other comprehensive expense Total comprehensNe expense forthe year 11.2861 153.3301 154,6161 Balance at 31 July and 1 August 2020 31,100 Surplus for the year Other cOrnprehen￿ve expense Total comprehensive expense for the year 2,861 17,470 20,331 Balaneè al 31 July2021 51,431 Univèrsi Balaneè èt 1 Au9U5t 2019 Deficit ltsr the year Othèr cornprehensive expense Total comprehensiv8 8xpense for th8year 86,693 13821 153.3301 {53,712) Balance at 31 July and 1 August 2020 32.981 Surplus for the year Other comprehensive expense Total comprehensive expense forthe year 3.718 17,470 21.188 BalarKe at31 July 2021 54,169 All reserves are unrestricted. 31

Annual R&poit FinaThci41 Stalemenis 2020- 2021 Carfjffmet Consolidated & University Statements of Financial Position As at 31 July 2021 As at31 July 2021 Consolidated University rooo Ex￿0 As at 31 July 2020 Consdidated University £000 £'ooo Note No￿tt￿rrent assets Tangible assets Intan9ible assets Investment in subsId18r￿S 10 11 12 162.765 1.346 162,736 162,298 912 161242 3,150 2,150 Current 4$s8ts Stock Tradtr and other receivables Investments Cash and cash equlvalents 13 14 15 20 29 12.663 23,855 20.642 57.189 83 7.147 14,023 16,003 37.256 80 9,216 14.023 13.780 37.099 9050 23,855 57.006 Le5&. Creditors.. amounts faning due within one year 16 128098} (2B.118) (190531 118,9971 Net current assets 28,109 29,071 17,403 18.102 Total èssets less current ￿ab￿ltIeS 192,219 194P57 180,613 182,494 Creditor&' amounts falling due aftermore than one year 17 (21.024) 121,024) (22.8501 (22,8501 Provision5 Pension provisions 19 {119,764) 1119,7641 1126,6631 1126,6631 rotal Det assets 51.431 32,981 Unreslrlcted regerve5 Income and expenditure r¢serve Total reserves 54,169 31,100 21,100 32.981 32.981 51.431 The Financial Statements on pages 30 to 52 were approved by the Board of Governors on 9 Decernber 2021 arKI signed on its behalf by John Taylor (CBE) (Chair of the Board of Governors) Professor C Carmichael Ailchi$on {President & Vice-chancellor) 32

Annual Rewt and Flnèntial StatenvAnt5 2020- 2021 Carcfrffmei Consolidated Cash Flow Statement Year ended 31 July 2021 Year ended 31 July 2021 £'ooo Year ended 31 July 2020 E'OOO Cash flow Iromoperating activitie$ Surplus/lDefieitl for the year Adjustment for non-¢a$h items Depreciation Decrease in stod( Iln¢reasellDecrease in debtors Increase in creditors Differewe between penslon charge and cash contrlbutions AdJustment for Investlng or Ilnanelny a¢tivitles Investment income Interest payable Net cash Inflow generated from opèrating aetivilies IB61 11,2881 4239 51 14702) 9,046 4,770 66 11,0011 341 4,304 (1171 2,950 25,276 {1481 2.799 9.845 Cash flows from investln9 aetivitie5 Redemption of investments Investment income Payments made to acquire lixed assets Purchase ol investments Net cash outflow from investing activitie3 14,022 117 15,240) 123.855) {14956) 13,053 148 16,7941 114,0221 17.6151 Cash flows from financing activiii•s Interest paid Repayments of amounts borrowed Net cash outflow from flnancln9 a￿1VitieS (1227) {1828) 13.055} (2.7991 11,8201 13.6191 IncreasellDecreasel in ¢ash and cash equivalents In the year 7.265 12,3891 Cash and cash eqU￿alents 81 beginning of the year Cash and cash equwents 8t end of the year 11003 23,268 18.392 16,003 Increase/lDe¢reasel In cash and ¢a$h equivalents in the year 7,265 12,3891 Re¢onclliation of net cashflow to movement in n8tdebt Incr8asè/lDeerèas81 in cash in the year Increase in short term deposits Net cash outflow from linancir¥ 7265 9,833 1.828 12.3891 969 1,820 Movement In nèt debt in the year 18,926 400 Net funds at 1 August 5,788 5,388 Netat 31 July 24.714 5,788 33

R•port Flnancial Statem•nts 2020- 2021 Notes to the Financial Statements Year Ended 31 July 2021 Year Ended 31 July 2021 Consolidated University rooo rooo Year Ended $1 July 2020 Cortsolidated University rooo £000 1 Tultlonfees and education contracts Full-tirne horne and EU students Full-lime & part time international students Part-tirne home and EU student8 Transnational educalion income Education contracts with NHS & Coleg Cymraeg Research tratning 8UPPOrt grants 64328 14.268 65,328 11268 1,133 4063 4980 656 228 60.805 14,107 1,071 3.668 3.700 822 84.179 60POS 14.107 1,077 3,668 3.700 771 4863 3,980 670 Y¢ar Ended 31 July 2021 Consolidaled University rooo £'ooo Year Ended 31 Juty 2020 Consolidated UIMversity e'ooo £'ooo 2 Fundlng body grant$ Recurrent grant Higher Education Funding C(￿nd1 for Walas 3,177 3,174 1194 1194 Specifie grants specif￿ initiative grants 11,595 14,772 11,595 14,769 1,318 3,512 1.318 3512 Y•ar Ended 31 July 2021 Consolidated Univer$ity rooo £'ooo Year Ended 31 July 2020 Consolidated Universlty 000 £'ooo 3 R•search grants and contracts Research councils Research charities IUK and oveisoasl Government {UK and overseas) Industry and cornmerce IUK and overseasl 214 119 1,454 485 214 100 1,311 125 57 1045 819 42 1,707 193 429 4150 2,272 1.750 Year ended 31 July 2021 Consolidated Univer51ty rooo £'ooo Year ETrYed31 July 2020 Consolidated Unfversity rooo £'ooo 4 Other income Other services rendered Residences opèrations Catering and eonfÈrencin9 operations Other EU grant Income Other operatlng Income 8.930 3￿45 7,605 3?45 723 185 1,171 9.160 3,729 1.654 346 2,097 16,986 7,904 3,729 1,378 346 185 14,936 Year Ended 31 July 2021 Consolidated Uriversity rooo £'ooo 117 117 117 Year Ended 31 July 2020 Consolidated Universty £'ooo rooo S Investment income Other investment income 148

Annual R•po¢t and Fhanclal Stat•mèht1 2020- 2021 Notes to the Financial Statements (continued) Year Ended 31 July 2021 Year Ended 31 July 2021 Consolidated University e'ooo £'ooo Year Ended 31 July 2020 Con801idatèd University £'ooo t'ooo 6 Donations Donations 27 27 14 14 Year Ended 31 July 2021 Consolidated Untversjty £'ooo e'ooo Yèar Ended 31 JL¢ly2020 Consolidated University £'ooo £￿00 7 Staff costs Salaries Social seeurlty costs Othar pension costs Movémènt on USS provision CVGPF costs in èxcess ol ¢ontribub'on5 Staff ¢osts &xcluding exceptional severance costs 54,845 5,668 10,532 (22) 9,163 5&147 5,512 10,245 {22) 9.163 52.654 5,269 9.870 11,3941 4,523 50,832 5,107 9,608 11,3941 4,S23 80,186 78.045 70,922 68,676 Year Ended 31 July 2021 No. Year Ended 31 July 2020 No. Avera9e staffnurnbers by rnajor eategory. Aeademie Admini51ratNe. support and proj8ets Technicians Ancillary 549 682 33 55 1.319 501 691 1,305 Year Ended 31 July2021 Year Ended 31 July 2020 Emoluments ol the V￿e-Chanc￿l0r Re¢lgssifiÈd 248,679 41,786 290,465 Salary Payments in lieu of pension contributions 251,679 42,450 294,129 Vicelhancellgr remuneration as a mulliple of the me(fian Year Ended 31 July 2021 University BasÉc salary Year Ended 31 July 2020 UnlversIty Baslc Total salary remuneratio Total remuntrratio Uplated £248.679 £39.152 Updated £290,465 t39.774 7.3 Vice-chancellor Median saLIry Pay multiple 251.679 39,152 6A 294,129 40.014 Referto the Unwerslls Remuneration Statemeftt page 14 35

Annual Fieport ancl Flnanci* Statemonts 2020- 2021 Notes to the Financial Statements (contlnued) Year Ended 31 July 2021 7 Stsff Costs (continued) The President & Vice-chaneetlorfs basle salary Is 6.4 times 12019120 6.4 timèsl thè median pay of staff. The median pay is calculated on a full-tirne equivalent basis ol the salar￿S paid by the Unwersity to its Stalf. The President & Vice.Chancelltsr's tot remuneiation is 7.4 time512019/20 72 tirne51 the median total remuneralion of Staff. The median total rernuneration is cal¢ulated on a full-tirne equivalent basis for the total remuneration paid by th8 University to its slafl. Agency and aty￿c81 staff have been excluded Irom the above calculatic•ns, as lull-tirne equwalent data is not available. Higher Pald Staff Year Ended 31 July2021 No. Year Ended S1 July 2020 No. £fOO,000 to) ￿04,999 £105,000 to £109,999 £120.000 to £124,999 £125.000 to £129.999 £130.000 to £134.999 t135.000 to £139.999 Payrnent of cornpensallon for loss of otlice to hlgher paid staff was as lollows., Yèar Ended 31 Year Ended July2021 31 July 2021 Year Ended Year Ended 31Ju 31 July 2020 2020 Number of stsff Numberof stsff £'ooo rooo Hiyherpald staff: loss of offie• 126 The Key Managernent Personnel are the Universlty Vice Chancellor's Exeeutlve Group. It comprlsed.. the Vlce Chancellor. PVC (Resgarch and InrM)vationl, PVC Istudent Engagement), PVC IPartnerships & External Engagement). Chief Olficer (Resourcesl. 8rKI the Sg¢Yetary & Clerk to the Board of Govemor& Year Ended al July 2021 £'ooo Year Ended 31 July 2020 rooo Key mana9ement ptrsonn•l (excludes pension costs) rerrKrneratic 896 876 Due to the nature of the Unwersitys operations and the cornp051ti>n ol the Board. it is inewtable thal transactions will take place with organisations in which a Member of the Board or a senior member of staff may have an interest. The financial regulations require an individual to declare an interest and to withdraw from discuss￿rnS should a conflict of interest potenti?Ily arise. Written assurances are obtained annually from all Governors and key personnel in respect of themsefves and their close famity. For the financial year to 31 duly 2021 the returns state that there has been no undue influence between the University and related parties las defined by FRS1021. In the 2020121 ffnancial year there were no declarations ol interest frorn a rdated party under FRS102. In the 2019120 financi yearthere w&8 nts declaration of interest from a related party under FRS102 36

l Report ond Fin4nciJl Stalem¢Thls 2020- 2021 C￿￿￿Met Notes to the Financial Statements (continued) Year Endgd 31 July 2021 Year Ended Year Ended 31 July 2021 31 July 2021 Consolidate Unlversity Year Ended 31 July 2020 Consolidated Year Ended 31 July 2020 University E'ooo rooo t'ooo £'ooo 8 Interest8nd other finance costs Loan interest Net charge on pension scheme 1.227 1,723 2.950 1.227 1.723 1,330 1,469 2,799 1,330 1,469 2,799 Year Ended Year Ended 31 Juty 2021 31 July2021 Consolidate University Year Ended 31 July 2020 Consolidated Year Ended 31 July 2020 University rooo £'ooo £'ooo £'ooo 9 Analysis of total expertdlture by aclivity Acadern￿ and related expenditwe Administration and central services Premises (including service concession costl Residences. caterlng and conferences Research grants and contr￿t5 Other expenses HEFCW Covid-19 grant expenditure 60.423 21,918 8.432 3￿01 1,675 19,096 4,383 119,428 61,040 20,704 8,432 3060 1￿45 21,495 57,188 23,912 9.247 3,530 1.734 12.7 57.188 22,425 9.219 3,283 1.295 11.460 116 576 108,410 104,870 other operating expenses Include: External auditors. remuneration in respect of audit services External auditors. remuneratlon in respect ol non-audit services 61 55 39 13 13 59 50 37

Amu* Rep)rt and Finoncial St4￿mOnt￿ X)20- 2021 Notes to the Financial Statements (continued) Year Ended 31 July 2021 10 Tan9lble Fixed Assets 202012021 Flxtures, ttlngs and Equlpment £'ooo Freehold Land and Buildlnys £'ooo Total £'ooo Consofidated Costor valuation At 1 August 2020 Additions At 31 July 2021 183,883 2,316 186.199 19.824 2.489 22.313 203,707 4.805 Con51Sting of valuation at: 1 August 2014 Cost 72.268 113.931 186 199 72268 136.244 208.512 22,313 22,313 Acujmulated Dèpreciation At 1 August 2020 Char9e for the year At 31 July2021 27.718 2,200 29,918 13.691 2.1Sg 15.830 41,409 4,239 45.748 Net book value Al 31 July 2021 At 31 July 2020 156.281 156.184 483 6,133 161765 162,298 University Cost or valuation At 1 August 2020 Additions At 31 July2021 183.883 2,316 186.199 19.536 a489 22.025 203.419 4.805 208.224 Con5i3ting of valuation at: 1 August 2014 Cost 72268 113.931 186 199 72,268 135.956 208 224 22.025 AccJJmulated Deprecialton At 1 August 2020 Chai9e for the year At 31 J￿Y 2021 27.718 2.200 13,459 2,111 41.177 4,311 488 Nèt bjok value At 31 July2021 Al 31 Juty 2020 156,281 156,165 6,455 6,OTT 164737 161242 As at 31 July 2021. freehold land and buildings included £52.598m (2019.. £52598ml in respect of Ireehold land and is not depreciated. 38

AnNJal Report and Fin4￿1￿1 Ststements 2020- 2021 Notes to the Financlal Statements (continued) Year Ended 31 July 2021 Consolidated vooo ikniversity e'ooo 11 Intanglbl• Assats Cost of Intellectual Property At 1 August 2020 Additions 913 433 At 31 July 2021 46 Net book value At 31 July 2021 1.347 Net book value At 31 July 2020 913 No amort15ation has been charged in the period ended 31 July 2021. The additional intangible asset ol e434k in 2020121 represents the capitalisation of the intellectual property developed in Fovo Technology Ltd. Unlvèrsity £'ooo 12 Investment in Subsldiary Cost or valuation At 1 August 2020 Additions At 31 July 2021 2,150 3.150 The Investment5 represent shares in group undertskings (note 231. During the fiftancial year 2020121 the University bought an additiond 1,000,000 shares in Cardiff Met Company Ltd for tlm. 39

Amval Report and Finarteigl gtatoments 2020. 2021 Car(r￿m Notes to the Financlal Statements {continued) Year Ended 31 July 2021 At 31 July 2021 Con501idated Univèr51ty £'ooo rooo At 31 Juty 2020 Consolidated UnNersity £'ooo £'ooo Redassilied Rttl835ified 13 Stock General consumabfes ICaterTrig & otheil 32 32 29 29 80 At 31 July 2021 At 31 July 2020 Universlty Consolldated Unwersity £'ooo £'ooo £'ooo Reclasslfted Reclasslfled Consolldated £'ooo 14 Trade and othèr ièceivables Amounts falling due wthin one year.. Trade receivables Piepayments and accruéd incorne Amounts due from subsidiary compan 4518 332 4364 6.243 3.056 12,663 2,389 4,758 2,147 4.529 2.540 9.216 9￿50 7.147 At 31 July2021 At 31 Juty 2020 University Consolidated University £'ooo £'ooo £'ooo Consolidated rooo 15 Investments Tem deposit Corporate Bond 9.840 14.015 23,855 9,840 14.015 23.855 7,784 6,239 14.023 8,239 14.023 At 31 July 2021 At 31 J(Fly 2020 Univer8ity Consolidated UnDiersity £'ooo rooo t'ooo ConsofJd*ted £'ooo 16 Credltors: amounts fallirvJ due withlnone year Sec#Jred loan$ Unsecured loans Trade payables So¢ial security and other taxation payable A¢¢ruals and deferred income 504 1,322 6,015 1,383 19,674 28.898 504 1,322 003 1077 1B.912 28.118 475 1,353 2.581 1.37T 14.067 19.853 475 1.353 2.523 1.3TI 13,269 18,997 At 31 July 2021 At 31 ￿lY 2020 University Consolk4ated UnEverslty £￿00 eooo Consolidated £'ooo 17 Creditors: amounts fallin9 due after more than one year Secured loans Unsecurèd loans S44 2q080 21,024 1,448 21.402 22.850 21,402 22.850 21.024 Anatysis of secured and un5e¢ured loan&. Due within one year or on demand Qkje between one and two years Due between two and five years Due in five year5 or more Due after more than one year Total secured and unsecured loan$ 1026 1032 4,090 15,102 21.024 22.850 1026 1032 4,090 1,828 1.826 4,570 16,455 22,850 24.679 1,828 1,826 4.570 16,455 22.850 24.679 21850 40

Annual keport and FinonEiTI Statoments 2020- 2021 Carrf]ffMet Notes to the Financial Statements (continued) Year Ended 31 July 2021 18 Lender Secured and unsecured loans Amount As atJuly 2021 Amount Repayable by Interest Rate As atJuly 2020 £'ooo 714 1,210 10.800 11,700 19 63 38 135 Borrower E'ooo 612 836 10200 11.050 RBS RBS Sant￿der Barclays Salix Salix Salix Sallx Se¢ured loan Secured loan unsecur￿ loan Unsecured loan Unseeuied l¢)an Unsecured loan Unsecured loan Unsecured loan 2023 2027 2038 2038 2020 2022 2021 2024 7fi9 Variable 5.10 5.10 0.00 0.00 0.00 0.00 University University Ljniversity University University Uftiversity University University 38 13 101 The RBS loans a￿ secured aga4nst tha Univèrsity's Plas Gwyn Campus and a part of the Cyneoed Campus 19 Pension Provisions Detin8d Benefit Obligations (Note 241 Obllgatlon to fund deficlt on USS Pension £'ooo Pension enhancement on termination Total Pensions Provisions 000 £'ooo Consolrdated and University At 1 August 2020 Utili5ed in year IAdditionllrelease in year Actuarial gain in year At 31 July 2021 11,8131 (3.370) 290 1501 40 (3,090) 1121.4801 1126,6631 290 110,861) 17,470 1119 764) 110,8201 17,430 1114,870) 11,804 USS defi¢lt The obligation to fund the past service deficit of the University's St4)erannuation Scheme IUSSI arises Irom a contractual obligation to fund benefits arising from past performance. This obligation is reassessed every three years using the scheduled triennial valuation of the scheme. In reassessing the value of the required provisi>n during the current year management has used the March 2018 valuation of the $¢herne. The latest available actuarial valuation of the scheme al 31 July 2021 was the March 2018 valuation. A valuation ol thè scheme al 31 March 2020 is currently being undertaken. It is antiapated that this valuation will add circa £2.7m lo thè seheme deficit. At 1 August 2020 £'ooo Cash Flows At 31 July 2021 £'ooo £'ooo 20 Cash and ¢ash equivalents Consolidated Cash and c85h equNalents 16.003 16,003 7265 7265 23268 23.268 For the year gnded 31 July 2021 Consolidatgd University £'ooo £'ooo Fof thè yèar ended 31 July 2020 Consolidated Univèrsity £'ooo £'ooo 21 Capital commltments Comrnitments contracted for &600 3.600 00 3,600 1B50 1,850 1,850 1,850 41

AnryJ￿ Report and Financijl Statements 1020- 2021 Ca￿￿met Notes to the Financial Statements (continued) Year Ended 31 July 2021 22 Commllm8nts und8r op?rating lease At 31 July Cardiff Metropolitan University had future minimum lease payments undèr non-can¢elFable operating leases as follows.. 2021 £'ooo 217 372 589 2020 £'ooo 217 589 Not later than 1 year Later than 1 year and not Lqter than 5 Subsidlary undertaklngs Company Cardiff Metropolltan Compary Ltd Prlneipal Activity Undertakes nan primary purpose trading actmties which @re non-charitabl& status 100% owned Cardlff Metropditan Education Services (Beijingl Holding company for China Wholly Foreign-owned Ltd Enterprise. 100% owned Cardiff Metropolitsn Education Consulting Develop strategic partnership3 with Chinese Servlce IBeijlngl Ltd institutions. 100% owned Fovo Technology Ltd Developing a new technologythat improves the nature of visual experren¢¢. 55% owned 24 Pensk)n Obllgatlons The Universityparticipates In threèseparate pension s¢herne4 each ol which has its own membership èligibilitycriteri The three schemes are.. the Cardiff & Vale tsf Glamorgan Pension Fund ICVGPFI Iprincipally admlnistration and support $t8m; the TeacheTS' Penslon Scheme ITPSI (prineipally acaderni¢ stsfll., and the Universities &Jpeiannuation Scheme (USSI la mixture ol administrative and academic staff). Ati three schernes are defined-berEfit schemes. Thè ¢¢ntributions payable to the scheme were Year ond8d 31 July 2021 £￿00 Yèar ended 31 July 2020 £000 Contributlon for TPS Contributlon for CVGPF Contributlon lor USS 4168 4419 946 4,777 4.207 10A33 9.870 The costs recognlsed within the UnsveTsiVs Staff costs for the year were Year ended 31 July 2021 rooo Year ended 31 July 2020 rooo Cost foT TPS Cost for CVGPF Cost for USS 5,168 18￿81 924 4.777 8,730 15091 12,998 42

RÈport Jnd Fir￿n¢￿1 Statemefits 2020-2021 Notes to the Financial Statements (continued) Year Ended 31 July 2021 24 PenslonObfLgations Icontlnuedl Cardiff& Valeof Glamorgan Penslon Fund (CVGPF) CVGPF is a local government superannuatlon scheme. Thè most recènt lull aeluarlal valtsation was earried out as at 31 March 2019, and has been updated by independent actuaries to the Cardill & Vale of Glamorgan Pension Fund to take account of the requirernents of FRS 102 in order to assess the liabilities of the Fund as at 31 JU￿ 2020. The next triennial valuation of the fund will be reported during December 2022. The principaf assumptions used for the wrposes of FRS 102 are as foltows Yearended 31 July2021 Year ended 31 July 2020 Year ended 31 Juty 2019 Discount rate CPI inflation Rate of increase to penslons In payment Rale of revaluatlon of penslon 8c¢ounts Rate of ncrease in deferred pensions Rate of general I￿￿eaSe in sJaries 1.7% 2.6% zfj% 2.6% 2.6% 3.6% 1.4% 22% 22% 2.2Wo 2.2Vo 3.2% 2.2% 2.2% 2.2% 2.2% 2.2% &2% Mortallty assumption The mortality 45sumptlOll5 are based on the recent actual rnorlafity experience of mernbers within the Fund and a11owforfulure mortalityimprovemenls. Sample lifeexpectancies at age65 resulting fromthese mortaltty assumptlons arè shown below. Year ended 31 July2021 Year ended 31 July 2020 Year ended 31 July 2019 Assumed life expectancy at 65 years retiring today malellfemalel retiring in 20 years rnale/lfernalel 22312Q7) 2U126.1) 22.2124.61 J2126.0 221124.51 22.7125.61 AssttAllocation Value at 31 July 2021 Value at 31 July 2020 Equities Property Governrnent bonds Corporate bonds Cash Other Total 66.5% 6.6% 10.1% 15.2% 1.6% 0.0% 100.0% 61.1% 12.0% 17.1% 1.4% 100.0% 43

Annual Rthport an¥ Fin4rKlal Stat4m¢nt$ 2020- 2021 Carthffmer Notes to the Financial Statements (continued) Year Ended 31 July 2021 24 Pensitin Obligations {¢ontlnued) Anwunts recognlsed In Incomè statem&nt Yearended 31 July 2021 £'ooo Funded Unfunded Year èndÈd 31 July 2020 £'ooo Funded Unlunded Op•ratiny ¢0st current service c05t Curtailment cost 13.650 20 8,780 Flnanclng Cost interest on net defined benefit1SabNity 1,660 50 1.330 70 Penslon expènse recogro3ed in MKome statement 15,330 50 10,110 70 Aft￿urts recognised in other comprehens1￿ income Yearended 31 July 2021 e'ooo Funded Unfunded Year trnded 31 July 2020 £'ooo Funded UnfurKled Asset gains/l105ses1 arising during the year Liabifity Ilossesl arising during the year 20,800 (3A70) 13.400) 149,720) {40) Total le￿gnISed In othèr eompr8hènslvg in¢omellexpense) 17.430 140) 153,1201 12101 Chanyes to thè fair value of 0$8et$ Yearended31 July 2021 £'ooo Funded Urtfunded Year ended 31 July 2020 £'ooo Funded Unlunded Opening value Interest income on assets Remeasurement gains/llos$esl on assets Contributions by the employer Contribub'ons by participants Ntrt benefits paid out Closlng valug 117220 1.671 20.800 4510 1,770 (2 9501 143,020 114,590 2,560 13,4001 4.260 1.660 12,4501 117.220 290 290 1290) 12901 44

Annu41 Report Ind Financial Stat•ff*nrs 2020- 2021 Cgrfffhlei Notes to the Flnancial Statements (continued) Year Ended 31 July 2021 24 PènsTon Obfigations (continued) Changes to the present value of the deflned benefit obligalion Yearended 31 July2021 £'ooo Fund8d Unfundgd Year ended 31 July 2020 e'ooo Funded Unfunded Opening value Current Servi￿ cost Interest expense on defined benefil obligation Contributions by participants Actuarial lossesllgainsl on habilities Net benefits paKJ out Past service costlcurtailment Closing value 238,700 13,650 3,330 1.770 3,370 12,9501 20 257,890 3,370 177,100 8,780 3,890 1,660 49,720 12,4501 3￿80 so 70 (401 (2901 210 (2901 3.090 238.700 3,370 Reconcli iation of funded status to Consolidated Statement of Financial PosÉtion At 31 July 2021 £'ooo Funded Unfunded At 31 JLJIY 2020 £'ooo Funded Unfundèd Fwr value ot assets Present value of defined benefit obligat 143.020 (257.890) 117,220 1238,7001 (3.0901 13.3701 Liability 1114.870} 13,090) 1121,4801 13.3701 Teachers, Penslon Scheme ITPS) Introduction The Teach8rs' Pension Scherne ITPS or Scheme) is a slatutL)ry, unfunded, defined benefit occupational scherne. governed by the Teachers, Pensions Regulakn'ons 2010 las amended). ancl the Teachers. Pension Scheme Regulations 2014 las arnèndèd). These regulations apply tts teachers In schools and other educationat establishment4 includin9 academies, in En9land and Wths that are rn￿ntaned by lotral authorities. In addition, teachèrs in many independent 2nd voluntary-aided schools and teachers and cturèrs in some establishments of further and hlgher edU￿tIOn may be eligible for rnèmbershlp. Mernbership is automatic for full-time teachers and lecturers and. from 1 January 2007, autornatic too for teachers and lecturers in part-time Èmployment following appointment or a change of Contract. Teachers and lecturers are able to opt out of the TPS. The Tea¢hes' Penslon budgeting and valuallon account Atthough members may be employed by various bodies, their retirement and other pension benefits are sèt out in regulations Tvade under the Sup8rannuation Act119721 and Public Service Pensions Act120131 and are paid by public funds prOv￿ed by Parliament. The TPS is an unlunded scheme and members contribute on a'pay as you go'basis- eontributions from mèmbèrs. along with those made by employers. are credited to the Exchequer under arrangement5 governed by the above Acts The Teachers, Pensions Regulations 2010 require an Annual ACCo￿t, the Teachers. Pension Budgeting and Valuation Account, to be kept of receSpts and expenditure lincluding the cost of pension increasesl. From 1 April 2001. the Account has been credited with a real rate ol return, which is equivalent to assuming that the balance in the Account is invested in notional investments that produce that re￿ rate of return. 45

Annual RepLYt and Finènrial Statements 2020- 2021 CArthffMet Notes to the Financial Statements (continued) Year Ended 31 July 2021 24 Pen$lon Obli9atlons leontinued) Valuation of the Teaehers, Pension S¢heme The latest valuatlon of Ihe Teachers, Pension S¢herne took plac< In ￿ne with directions issued by klm Treasury arKI using membership data a5 at 31 March 2016. As a result of this valuation TPS employers have paid a contribution ratè of 23.68% from September 2019 (thi8 includes the adminislration ley of 0.8W. The contribution rate prior to this was 16.48%. Scheme Changes The arrangements lor a reformed Teachers, Pension Scheme, in line with the recommendations rnade by Lord Hutton, in parttcular the introductlon of a Career Average Revalued Earnings ICAREI schem< were implernented frorn 1 April 2015. In December 2018, the Courtof Appeal held that transitional protection provisions eontsned in the reformed judicial ancl lirefighter pension 5chernes, rntroduced as part of public service pension reforms In 2015. gave rise to direct age discrlmlnation 8nd were therefore unlawful. The Suprerne Court, in a decision made In￿ne 2019. have rejected the Govemments application for permission to appeal the Court ol Appeal's ruling. The case will now be referred to an Employment Tribunal for a decision règarding the remedy which need to be ollered to those members of the two schemes who were subject of the age discrimination. HM Treasury are clear that the rthing ha3 implicath)ns for thè 0th8T public service schemes. Inclu(SNJ the Teachers, Pension Schemè. Those irnplications are currently being consKlgred and any impact on scheme costs is expected to be lookèd atwi*hin the nextscheme valuation.whieh is Currently scheduled tobe based on April 2020 data and implemèntèd in April 2023. Universities SuperanNatlon Sch•mè The University participates in the Universitieg, Superannuafion Scherne. The Scheme Is a hybrld pension scheme which provides benefits based on final penstonable salary for Final Salary members until 2016 (closed to new entrants in 20111,. Career Revalued Benefits ICRBI up lo an indexed salary threshold for naw entrants Sin￿ 2011 and for Final Salary members since 2016- and d81ined contribution benefits above tha samesalary threshold and for mernbers wishing to make additlond contributions. The assets ofthe schemè are held in a separate trustee-administered fund. Because of the mutual natureot the scheme, theschema's a55ets are not hypothecated to individval institutions and a scheme-wide contribution r¥t8 is set. As aresult the University is exposed to actuarial risks associated with other institutions, èmployee5 and is vnable to identify its share of the underlying a55ets and liabilities of the scheme on a consistent and rea50nablebasis and therelore. as required by section 28 of FRS 102 Ernployee benefits", accounts for the scherne as il it were a wholly defined-contribution scherne. The amount charged to the Consolidated Staternent of Comprehensive Income and Expenditure represents the ￿ntributIOnS payable to the scheme for thè year. A liability Is also recorded within proM510nS tor any contractual commitment lo fund past dèf5CIt5 Wtlwn the scheme. Movements in thts PTovision can also give rise tg ¢harge5 to the Consoltdated stata￿￿rrt of Comprehensive Incorne and Expenditure as shown in note 19 above. The appolntment of directors to the board of trustees Is detem2ined by the Companls Articlès of Assooation. Four of the directors are appointed by Universltles UK. three are apry)inted by the Univètsity and College Union, of whom at least one must be a USS penslonw member; and a minimum of three and a rnaximum ol five 8re independent dwectors appointed by the board. Under thè scherne trust deed and￿￿¢￿, the employer contiibution rate is detern?ined by the trnstee. actlng on actuarial a(fvi¢e. The scheme Is valued trpnnially with the latest avalable cornplete actuarial valuation having been finafised during September 2019 as 8t 31 March 2018 Ithe valuation datel. The 2018 valuatlon was the lifth valuatvjn under the scheme-spethfic funding regime introduced by the Pensions Act 2004, which requires schemes to a(bpt a statutory funding objèctive, which is to have suflicient and approwiate assets to cover thqr 46

Ar￿jaI Report and Financi￿ 5rat•m+nts 2020- 202? C¥r(fiffMet Notes to the Financial Statements (continued) Year Ended 31 July 2021 24 Penslon Obll9ations leonlinuedl technical pri)visions At the 2018 valualion date. the value ol the assets of the scheme was £63.7 billiw and thevaluation ef the scherne's technical provisions was £67.3 billion indicating a shortfall of £3.6 billion, do Irorn £75 blllion at the 2017 valuatitsn date and £5.3 billion at the 2014 valuation date. The assets were therefore sufficient to cover 95% of the benefits which had accrued to members alter dlowing for expected lulure increases in earnings. as compared to 89% at the 2017 valLJalion date. A valuation as at 31 March 2020 is currently being undertaken. it is anticipated that this will result in a mater[81 in(yease in the value of the scheme deficit. Creditor Balance¥ Cardiff Metrr)politan Univei$ity$ balances as at 31 July for each scheme are as follows= 2021 E'ooo 2020 eDoo TPS CVGPF uss 646 540 113 1,299 Year-end penS￿n creditcKswere yaKt in full at 31 July2020 Higher Pald Staff Year Ended 31 July 2020 Universty No. Year Ended 31 July 2021 University No. £100,000 to ￿04,999 £105.000 to £109,999 £120.000 to £124,999 £125.000 10 £129,999 E130.000 to £134,999 35,000 to £139,999 Year Ended Year Ended Year Endèd 31 31 July2021 31 July July2021 University 2020 Unlverslty University Year Ended 31 July 2020 University Number of staff NuTrt*er of staff £YM)O £'ooo Hlgher patd staff: loss of offlce 126 Payment of compensation for loss of offlco to higher paid staff was as follow4 The Key Managèment Personnel are the University Vi¢e Chancelk)r's Executive Group. It comprised,. the Vice Chancellor. PVC (Research and Innovation), PVC Istvdent Engagernentl, PVC (Partnershlps & Externd Engagementl. Chief Officer (Resources), and the Secretary & Clerk to the Board of Govemors. 47

Annual k&port and Financial Statements 2020- 20 Notes to the Financial Statements (continued) Year Ended 31 July 2021 24 Pen$ion Obligations (¢ont5nued) Y4ar Endèd 31 July 2021 Univ8r51ty £'ooo Yèar Ended 31 July 2020 University £'ooo Key management personnel remuneralion (excludes pension costs) 896 876 Due to the nature of the University's operations and the composition ol the Board. It is in￿tabl¥ that transactions will lake pla with organisations in which a MeThber of the Board or a senior member of staff may havè an inter?st. All transactions in which they may have an interest are conducted at arrn's length and in accordance with thè Unniersily's financial regulation5 and normal pr￿Urement pr¢xedures. The financia regulations require an individual to deelarè an interest and lo withdraw l¥orn discussions should a conlliet of interest potentially arise. Written assurances are obtainad annually from all Governors and key personnel In respect ol themselves and their c105e larnily. For the financial year to 31 July 2021 thè rèlurns stste that there has been no undue influence between the University and relat8d parties las defined by FRS1021. In the 20201￿ rInancial year there were d￿laratIonS of interest from a related party under FRS102. In the 2019120 finana Ye￿ there was no declaration of int8re5t frorn a related party under FRS102. 48

Annual Rèport *ld Firnantibl 5trafernpnts ￿20- 2021 C?￿ffmeI Notes to the Financlal Statements (contlnued) Year Ended 31 July 2021 25 US Federal Loans- Supplementary Schedule Conversion lo US GAAP fomiat This schedule has been compiled Irom the Section 3 Example Financial Statements included in the Federal Re ister/Vol. 84, No. 184 1 Monda tember 23, 2019 1 Rules and Re ulations Llne Statement of Financial Positio Cash and cash equivalents Accounts receivable, net other debtors and Prepaid expenses Related party recelvables Contributions receivable. net Student loans receivablq net Investments Properly, plant and equipment, net lincludes Investment property & Heritage assets) Lease right-ol-use asset, net Goodwill other intanglble assets Inventories 47,123 3,518 6.332 162,765 10 1,346 33 11 12 Total assets 221,117 13 14 15 16 17 18 19 20 21 22 Line of credit- short term Line of credit- short term for CIP Accrued expenses/Ac¢ovnts payable Accruals and Deferred revenue Post-employment and pension liability Line ol credit - operating Other liabilities Notes payable Lease right-ol-use asset liability Ltng ol credit for long term purposes 7,398 19,674 119,764 22.850 23 Total liabilitie$ 169,686 24 Net assets without donor restrictions Net Assets with Donor Restrictions Annuities Term endowments fe income funds Other restricted by purpose and time Restricted in perpetuity Total Nel Assets with Donor Restrictions 51,431 25 26 27 28 29 30 31 32 Total Net Assets Total Liabilities and Net Assets 51,431 221,117 49

Amual R&pott Financijl Statements 2020- 2021 Notes to the Financial Statements (continued) Year Ended 31 July 2021 25 US Federal Loans- Supplementary Schedule (¢ontlnued) Line Statement of Activities Changes in Net Assets Without Donor Restrictions Operating Revenue and Other Additions Tuition and fees, net Funding body income Investment return apprc¢Ylated for spending Other income Research income Total Operating Revenue and Other Additions 33 34 35 36 37 38 90,242 14.772 117 14,729 2,429 122,289 Operating Expenses and Other Dedu¢tlon5 Education and research expenses Depreciation and Amortizalion Interest expense Auxiliary enterprises Total Operating Expenses Changes In Net Assets from Operations 39 40 41 42 112,140 4,339 2,950 119,429 2,860 Non-operating Changes Investments. net of annual spending, gain Ilossl Other components of net periodic pension costs Pension-relaled changes other than net periodic pension costs Change in value of splil-interest agreements Other gains (losses) Sale of fixed assets. galns {lo$$esl Taxation Total Non-operating Change5 45 46 47 48 49 50 17,470 17.470 51 Total Change in Net Assets Change in Net Assets Wjth Donor Restrictlons Conlributions Net assets released from restriction 20,330 52 53 54 Change In Net Assets With Donor Rastri¢tions 55 Change in Net Assets without restrictions 20,330 56 57 Net Assets, Beginning of Year Net Assets, End of Year 31,101 51,431 Note forLlne 9- Lease right-of-use assets Lease righl-of-use assets- pre-implemenlation Lease righl-of-use assets- post-implementation Total 50

Amual RÈp)rt FSnancl?I Statsmint$ 2020- 2021 Notes to the Financial Statements (continued) Year Ended 31 July 2021 25 US Federal Loans- Supplementary Schedule (continued) Note forknne 21- Leaseright-of-use asset liability Lease rlght-of-use asset liability- pre-implementation Lease rlght-of-use asset liability- post-implementation Total Note forLine 8- NetPropertyi PlantandEquipment Pre-lmplementation Property, Plant and Equipment Post-implementation Property, Plant and Equipment purchased wlth debt FH LH L&B LH improvements Equipment Investment property Heritage assets Consl'n in P'gress Post-implementation Property, Plant and Equipment- no debt Total 157.958 157,958 This is the ending balancè on the last financial statement submisslon prior to the implementation of the re ulalions - Less and de reciation or dis osals This is the balance of assets purchased after the implementation of the regulations that was purchased by obtainin debt Asset value ol the Construction work in progress Post-implementation Property, Plant and Equipment wth no outstanding debt Note lorLine 14,20and22- Long-term debt lorlong termpurpos¢s Pre-implementalion Long-tem Debt Allowable Post-lmplementation Long-term Debt: FH LH L&B LH improvements Equipment Investment property Heritage assets Construction in progress - debt Long-term debt not for the purchaso of Property, Plant and Equipment or liability greater than assets value Total 22,850 This is the ending balance on the last financial statement submission prior to the implementation of the re ulations- Less in repa rnents This is the lessor of actual outstanding debt or eaoh asset value or the value of the asset All debt associated with Construction in progres5 UP to the asset value for construction in process is included Long-term debt not for the purchase ol Pfoperty, Plant and Equipment 22,850 51

Annual Wort * Financi￿ sratements 2020-2021 Notes to the Financial Statements (continued) Year Ended 31 July 2021 US Federal Loans- Supplemgntary Schedule (continued) Supplementary schedule- Sterllng £ This schedule has been compiled from the Sectlon 2 Example Financlal Statements included in the Federal Register/Vol. 84, No. 184 1 Monda ,Se tember 23, 2019 1 Rules and Re ulations Lines 24 30 Expendable Net Assets Net assets without donor restrictions Net assets with donor restrictions Secured and Unsecured related party receivable Unsecured related party receivable Property, plant and equlpment. net lincludes ConstructiorF in progress) Property, plant and equipment- pre-implemenlation Property. plant and equipment - post-implementatlon with outstanding debt for original purchase Property. plant and equipment - post-implementation without outstanding debt for original purchase Construction In progress Lease right-of-use asset. net Lease right.of-use asset pre-implementation 51,431 162.765 157,958 FS Note line 8A FS Note line 8B FS Note line 8D FS Note line 8C Excluded Llne 9 Note Leases M9 Note Leases 10 10 17 14,20,22 M2420,22, Note Debt A M24,20,22. Note Debt B M24.2022, Note Debt C 21 Excluded Line 21 Note Leases Lease right-of-use asset post-implernentation Intangible assets Intangible assets Post-employment and pension liabilities Long-term debt- for long term purposes Long-term debt- for long term purposes pre-implementation Long-term debt- for long term purposes post-implemenlation Line of Credit for Construction in process Lease righl-of-use asset liabrlity Pre-implementation right-of-use leases 1,346 119,764 22,850 22,850 Llne 21 Note Leases Post-implementation right-of-use leases Annuities with donor restrictiolls Term endowments wllh donor restrlctlons Life income funds with donor restrictions Net assets with donor restrictions: restrscted in perpetuity Total Expenses atid Losses Total expenses without donor restri¢tions- taken directly from Stalernent of A¢tivlties Non-operating and Net Investment Ilossl Net investment losses Pension-related changes other than net periodic costs 26 27 29 43 119.429 1351,45,46,47.48,49 {351,45 47 -17,587 52

Annual Rlportand Finèncial 5t#ornenrs 1010- 2021 c￿rf￿Met Notes to the Financial Statements (continued) Year Ended 31 July 2021 US Federal Loans- Supplernentary Schedule {¢ontinued) Modified Net Assets Net a5se15 Wlthout donor restrictions Net asse15 with donor restrictions Intangible assets SeGured and Unsecured related party receivable UnseGured related party receivable Modified Assets Total Assets Lease right￿t-Use asset pre-implementation 24 30 10 51,431 12 Excluded Line 9 Note Leases 221,117 Excluded Line 21 Note Leases Pre-implementation right-of-use leases 10 Intangible assets Secured and Unsecured related party receivable Unsecured related party receivable Net Income Ratio Ghange in Nel Assets Without Donor Aestri¢tions Total Revenue and Gains 55 38,1351, 50 20,330 122,172 53

Prifysgol Metropolitan Caerdydd Metropolitan University