2023-12-31-accounts

Annual Report & Financial Statements

For the year ended 31 December 2023

For Independent Minds

Contents

Legal and Administrative Information The Chair’s Statement The Vice-Chancellor’s Statement Trustees’ Report Chancellor and Members of Council Statement of Responsibilities of the University’s Council in Relation to the Financial Statements Statement of Corporate Governance and Internal Control Independent Auditors’ Report to the Council of The University of Buckingham Consolidated and University Statement of Comprehensive Income for the Year Ended 31 December 2023	3 4 5 7 24 25 26 28 30	Consolidated and University Statement of Changes in Reserves for the Year Ended 31 December 2023 31 Consolidated and University Statement of Financial Position as at 31 December 2023 32 Consolidated Statement of Cashfows for the Year Ended 31 December 2023 33 Statement of Principal Accounting Policies 34 Notes to the Financial Statements 41

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Legal and Administrative Information

CORPORATE STATUS

The University of Buckingham (the “University”) is incorporated by Royal Charter, number RC000730. The University is a Registered Charity, number 1141691.

PRINCIPAL PLACE OF BUSINESS

The University of Buckingham Yeomanry House Hunter Street Buckingham MK18 1EG

INDEPENDENT AUDITORS

MHA 6th Floor 2 London Wall Place London EC2Y 5AU

BANKERS

National Westminster Bank plc Stony Stratford Branch 80 High Street Stony Stratford Milton Keynes MK11 1AJ

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The Chair’s Statement

As I reflect on my inaugural year as Chair of Council at The University of Buckingham, it is with a profound sense of accomplishment and optimism that I address our dedicated faculty, staff, students, alumni, and broader community in this year’s annual report.

The past year has been a transformative period for our University, marked by substantial progress against five key objectives. This journey, though demanding, has significantly fortified our institution’s foundation and now leaves us poised for sustainable growth and excellence.

1. Returning to Compliance : We achieved full compliance with our financial reporting and accounts, a milestone that underscores our commitment to transparency and responsible stewardship. Our team has been strengthened, and we are now investing in a state-of-the-art finance and accounting system, laying robust groundwork for effective future financial management.

2. External Governance Review : Following an extensive review conducted by Halpin, we have not only embraced their findings but have also actively started to implement changes. A dedicated task force is ensuring that these recommendations are woven into the fabric of our governance, enhancing our operational efficiency and institutional integrity. We are carrying out a similar process with our internal documents to ensure they are fit for purpose.

3. Strategic Vision and Execution : For the first time in many years, the University now operates with a clear and actionable strategy. We are

meticulously working through detailed execution plans, setting milestones, and employing SMART actions to bring our vision to fruition.

4. Sustainability and Infrastructure : Our Transformation and Enabling Programme marks a significant leap towards building an infrastructure that supports our ambitious goals. This holistic approach ensures we remain at the forefront of educational and research excellence and guarantees priorities are met.

5. Crewe - defining the strategic position : with a mutually acceptable outcome for the respective parties.

Looking ahead, I am immensely optimistic about our future. The strides we have made this year are not just achievements in their own right, they are the building blocks of a legacy that prioritises a brilliant student experience — the heart of our mission.

Our focus remains steadfast on providing an environment where students can thrive, supported by innovative teaching methods, leading-edge research, and an inclusive community.

As we continue to navigate the evolving landscape of higher education, The University of Buckingham stands resilient and ready. With a fantastic community, strong strategic direction, robust governance, and a commitment to sustainability and inclusivity, we are better equipped than ever to empower our students and contribute meaningfully to society.

Our journey this past year reaffirms my belief in the bright future that lies ahead. Together, as a united

Buckingham community, we will continue to nurture leaders, innovators, and independent thinkers, transforming lives through exceptional education and research.

Finally, I would like to pass on my sincere gratitude to colleagues across the University and on Council for the constructive and dedicated way they have approached the various challenges we faced over the past twelve months.

Mark St John Qualter Chair of Council 20 May 2024

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The Vice-Chancellor’s Statement

2023 marked a significant turning point for the University. It was a year in which we were able to put the historical difficulties behind us, and thus begin the process of looking to our exciting future.

First, focusing on 2023, compliance with our regulators was achieved by 31 March 2023, when we published our audited accounts for 2021. We remained compliant with the publication of our audited accounts for 2022 on 31 May 2023, as required. I am exceedingly grateful to our CFO and his team for this exceptional accomplishment.

2023 was also important for the development of our three-year Strategic Plan, which was approved by Council at the end of July. The Plan had been developed through extensive consultation across the University. I am thankful to the Dean of Academic Affairs and Registrar for all the hard work they put in to getting this document across the line.

The Strategic Plan outlines the University’s four Guiding Principles: Independence and Academic Freedom; Academic Excellence; Student Partnership; Innovation and Entrepreneurship. Regarding the first of these, in 2023 I was very pleased to welcome the new Professor of

Political Science, to create a new Centre for Heterodox Social Science. They join us as a powerful advocate for academic freedom, with an esteemed background in political demography, and as an acknowledged expert in the phenomenon of “progressive illiberalism”. Also related to the first of our guiding principles, in the National Student Survey we were ranked 1st for Freedom of Expression.

In general 2023 was good for the University’s league table positions. It was especially encouraging that in September we were shortlisted for the ‘University of the Year Award 2024’ in the Sunday Times Good University Guide. We were in very good company – the other universities shortlisted were UCL, LSE, York, Liverpool and Exeter. We were included because we had managed to put the difficulties of the past behind us, and are now ranking 8th in the South East, and 56th nationally. In the National Student Survey our Business School was ranked in the top 10 nationally on all measures, a huge achievement.

Another regulatory milestone achieved in 2023 was the award of Silver in the Teaching Excellence Framework (TEF), organised by the Office for Students. Universities that take part in the TEF receive an overall rating based on two

measures, student experience and student outcomes. Buckingham was rated Silver in both. For student experience the Office for Student’s (OfS) report noted ‘evidence of some features of outstanding teaching practices’. It also remarked on the way the University fosters a supportive learning environment.

Throughout 2023, we continued to punch above our weight in terms of national visibility. For instance, on a very hot Tuesday in September we were honoured to be invited to No.10 Downing Street to celebrate our Royal Charter 40th Anniversary and the launch of fund-raising for the Margaret Thatcher Chair for the Constitution of Liberty.

The afternoon was hosted by the Deputy Prime Minister, The Rt Hon Oliver Dowden MP, and attended by 150 invited guests including University Staff, associates, donors, and members of our alumni community. Our Chancellor, Dame Mary Archer, gave a compelling opening address.

Looking to the future, many developments look very positive. Very importantly, the University is putting considerable budget resources into our “digital transformation” strategy, to improve our IT systems in areas such as finance, HR and student management. The first part of this

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transformation will take place during 2024, and as the systems are improved, staff and students alike will see huge improvements in their ease of engagement with the University.

An area I am particularly excited about developing is in extending the reach of our collaborations. Our strategy at the University is twofold. First, to look at forming and maintaining partnerships with academically sound and profitable enterprises in the UK and overseas. Second, to locate and partner with projects that fit in closely with our values and guiding principles, to reach the parts other universities cannot or will not reach.

Concerning partnerships, we are also exploring potential links with new partners, which could dramatically help improve our offerings, both academically and in terms of our facilities and infrastructure. In 2024 I hope that we can make real progress in this regard.

Furthermore, in 2024, new areas of curriculum and research are being explored, guided by our newly agreed strategic direction, that will extend the University’s offer. I look forward to announcing further developments throughout the year.

To further strengthen my senior team, Professor Harriet Dunbar-Morris joined us as Pro ViceChancellor (Academic) at the end of 2023. Harriet’s PhD was completed via the universities of Sussex and Toulouse. Following a postdoc in Psycholinguistics, Harriet undertook research in Higher Education at the University of Oxford. Post-Oxford, Harriet held positions at UCAS, the 1994 Group, and the universities of Bath, Bradford and Portsmouth.

2024 has already given rise to serious problems

in the university sector in this country at large, which makes our achievement of posting a surplus in 2023 a particularly important achievement. Though the magnitude of our surplus was driven by one-time impacts of resolving some historic challenges, our operational performance generated a surplus. Several universities have been in the news recently announcing huge deficits and announcing mass redundancies and closures of courses; there is talk of closures and mergers in the sector. Of course, we may not be entirely immune from these sector-wide trends, particularly in terms of the continuing cost of living crisis and the potential for further global instability. Nevertheless, I am very pleased to be able to report in these comments the huge progress that has been made across the board in the University, allowing us to be comfortably poised to ride any storms that may come our way.

Professor James Tooley Vice-Chancellor 20 May 2024

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Trustees’ Report

The Trustees’ Report represents the strategic review for The University of Buckingham (the “University”) and its subsidiaries (together “the Group”).

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Trustees’ Report

CORPORATE STATUS, REFERENCE AND ADMINISTRATIVE DETAILS

The University of Buckingham was incorporated by Royal Charter on 11 February 1983. Prior to that, the University College at Buckingham was founded in 1973 and admitted its first students in 1976.

education. During 2023 the University continued to progress innovative funding arrangements targeted to help UK students bridge the gap between fees and student loan levels via Future Earnings Agreements (FEAs) underwritten by the University. Accessibility through financial support is further strengthened by bursary and scholarship programmes. In addition to the noted constraints on student funding, as an Approved provider, the University is unable to access any direct government funding for learning and teaching, research or capital activity. The University is committed to diversity and inclusion as embedded in its Royal Charter. Article 20 states:

The University is not-for-profit and is a Recognised Body under Statutory Instrument No.573 (The Education (Recognised Bodies) (England) Order 2020). It is authorised by its Royal Charter to award taught and research degrees in perpetuity.

The University is registered at the Charity Commission for England and Wales (Charity number: 1141691). The principal place of the University’s business, as well as the names and addresses of the University’s auditor and bankers, have been presented separately in the Legal and Administrative Information section of these accounts.

‘There shall be no discrimination on the grounds of any person’s origin, belief, gender or disability such as to prevent him or her being admitted as a Member, Professor, teacher, other employee or student of the University or to hold office therein or to graduate thereat or to hold any advantage or privilege thereof.’

The University is registered with the Office for Students (‘OfS’) in the Approved provider category. Approved higher education providers (‘HEPs’) differ from Approved (‘Fee Cap’) HEPs in being able to levy uncapped tuition fees for undergraduate degrees but with the caveat that students at Approved providers can only access student loan funding to the lower limit. Since 2018 this has been £6,165 per annum for three-year programmes and £7,400 per annum for two-year programmes.

In accordance with the Charter, the University is committed to creating and maintaining an environment within which inclusive learning, fair treatment and diversity are valued, and discrimination is challenged. The recent refurbishment of the Franciscan Building including new access ramps and a lift is a practical illustration of the University’s commitment.

Despite the University’s exemption from being required to have an Access and Participation Plan it remains committed to broadening opportunities for students from all backgrounds to access University

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Trustees’ Report

STRUCTURE, GOVERNANCE AND MANAGEMENT

The University’s governing instruments are published in the Governance Handbook, which include:

and a charity, being Medical Property Management Ltd (“MPML”) and The University of Buckingham Foundation, respectively. MPML is a wholly owned trading subsidiary whose purpose is to further the University’s charitable purposes. The University of Buckingham Foundation is a charitable trust whose purpose is to advance education, in particular supporting and promoting the education of students at the University, and to promote research into academic and scientific fields of learning. Financial statements for these entities can be obtained from the University’s principal place of business, which is noted on page 1 of these accounts.

• the University’s Royal Charter and Statutes;

• Ordinances and Scheme of Delegation;

• our academic, management and committee structures, and the terms of reference and membership of all committees.

In January 2023 the University commissioned a detailed Governance Effectiveness Review as part of our commitment to good policy practice and quality improvement. The Halpin Partnership (Halpin), an independent, specialist Higher Education consultancy, undertook the review and completed a thorough assessment of the effectiveness of Council and the University’s wider governance frameworks. This included conducting detailed interviews and discussions with representatives from the Students’ Union, members of staff and all members of Council, as well as undertaking observations of the University’s key governance bodies. Halpin produced a final report, and the recommendations therein have been fully endorsed by Council and the resultant and continuing action and implementation plan is being overseen by an appointed Steering Group of members. The University’s Ordinances and Scheme of Delegation have also undergone a regular periodic review with updated versions being implemented in early 2024.

The Trustees are required to ensure the University is carrying out its purposes for the public benefit, complies with the governing document and law, acts in the University’s best interests, manages its resources responsibly and is accountable. They do so through the organisation and conduct of regular meetings for both the Council and its sub-committees. The agreed decisions and actions from the meetings are then appropriately delegated to and implemented by the University’s senior management and functional departments.

With regards to the setting of remuneration, the University, through written commitment provided in the Ordinances, complies with the Higher Education Remuneration Code published by the Committee of University Chairs. In practice, the University’s Nominations, Performance and Remuneration Committee: considers the comparative information on the emoluments of the

The University’s consolidated financial statements include a subsidiary company

employees within its remit; ensures all arrangements are unambiguous and diligently recorded; determines annually the principles on which merit awards shall be made for all members of staff in the salary review for that year.

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Trustees’ Report

OBJECTIVES AND ACTIVITIES

As codified in the University’s Statutes, the University’s objectives are the advancement of learning and knowledge by teaching and research, and to enable students to obtain the advantages of a university education.

The Trustees have had due regard to the Charity Commission’s guidance on public benefit during their stewardship of the University’s activities. Details of activities to further public benefit are set out in these accounts.

In particular, the Trustees have taken care to:

• make strategic decisions that further the charitable objectives;

• maximise public benefit to significant numbers of beneficiaries who are local to Buckingham, as well as more widely;

• manage and mitigate risks to our beneficiaries and to the University itself;

• offer Scholarships and Bursaries to promote access and participation to the public benefit as further noted below;

• welcome the local community to attend academic and social events at its premises, as well as to our staff and students. These include lectures, fireside chats with renowned guest speakers, taster days, musical concerts and festivals, such as the History and Literature Festivals;

• extending outreach activities to local schools and community so as to broaden access to Higher Education;

• • allow public use of certain University facilities.

BUCKINGHAM’S DISTINCTIVE POSITION

The distinctive position of The University of Buckingham is that it is an early innovator, having pioneered the accelerated two-year honours degree some 40 years ago. This is a cost-effective route for students to spend less on tuition and living costs than if they were taking a three-year degree, and enter employment a year earlier if they wish, or leave after three years with both an honours and a master’s degree. Three-year honours degree options are also available. Our Medicine course is also unique, offering a GMC accredited four and a half year course with a January start date, the removal of long holidays allowing for shorter overall study time whilst still enabling graduated students to enter the NHS foundation programme commencing in August each year.

STAFF

As with any organisation, staff numbers fluctuate through the year, therefore average numbers are used in these financial statements. In 2023, there was an average of 487 full time equivalent members of staff (2022: 358), comprising 185 academic (2022: 128), 7 research (2022: 8), 255 support (2022: 188) and 40 manual staff (2022: 34).

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Trustees’ Report

ACHIEVEMENTS AND PERFORMANCE ON TEACHING & RESEARCH

The founders of the University were driven by a desire to cultivate an institution that was rigorously independent and innovative. This ethos has underpinned three striking features of the University’s provision:

NSS, 2023, by the students themselves and in the Top 10 for Student Satisfaction (CUG, 2023). The health and wellbeing of students is a constant and top priority.

Our student body is diverse and is actively engaged in decision-making at all levels due to our ethos of staff-student partnership. Students sit on academic committees, formal and informal, providing valuable feedback that shapes courses, the learning environment, and strategic decisions by the University’s Executive and Governance Groups.

• the pioneering of a two-year accelerated undergraduate degree and four-and-a-half year MB ChB Medicine degree;

• an early focus on the student experience; and

• a resourcing model in which academic staff teach and have time given over to research; external engagement and programme review ensures the availability of senior and permanent teaching staff throughout the full calendar year.

At The University of Buckingham, students learn from the best in a supportive environment; where they are always a name, and never a number. This approach is highly commended by our students and saw us shortlisted for University of the Year in the Sunday Times Good University Guide, 2024.

We pride ourselves in delivering more than just an education; we provide a launchpad for careers. Our commitment to careerfocused courses earned us the 2nd spot for Graduate Prospects (on track) in the Complete University Guide 2023. Students consistently praise our teaching quality and appreciate our small class sizes, ensuring they have all the tools for success.

Our support services were ranked 5th for Mental Health Wellbeing Services in the

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Trustees’ Report

3,286 students from around the world studying across 8 discipline areas

STUDENT NUMBERS

Total student numbers increased to 3,286 in Winter 2023, up 2% from 2022 (3,214).

In winter 2023 compared to Winter 2022: Undergraduate (UG) student numbers increased by 8%; Postgraduate taught (PGT) student numbers increased by 25%; PGCE (Post Graduate Certificate of Education) student numbers decreased by 20%; Postgraduate research student numbers decreased by 3%; Pre and nondegree course student numbers increased by 28%.

2,072 British (inc overseas territories) 442 Asia and Pacific

261 Sub Saharan Africa and Indian Ocean

97 European Union (other than UK)

176 Middle East and North Africa

203 Europe (other than EU) and Central Asia 35 Americas and Caribbean

Today there are more than 26,000 alumni of the University living in 185 countries. They are running companies, leading countries, and achieving extraordinary things all over the world.

The University has student of all ages, with 83% being 21.

13% of students declared a disability.

44% of students identified as white and 44% as BAME, with 12% preferring not to respond.

52% of students identify as female.

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Trustees’ Report

COLLABORATIVE PARTNERS

The University of Buckingham subscribes to the Quality Assurance Agency for Higher Education (QAA). The University has also developed several important partnerships which are geographically spread and culturally diverse and has collaborations with key academic institutions such as British University in Georgia, International Business School in Budapest, Sarajevo School of Science and Technology in Bosnia and Herzegovina, and the Anglo Mexican Foundation.

RESEARCH

Like other British universities, an important part of our intellectual mission is for our academics and graduate students to contribute to research and scholarship. We are committed to continuing to strive in this area with a strategy plan for 2023-2027 that sets out how we aim to educate and inspire our community of research students, scholars and support staff through an abiding commitment to our four core values, summarised in the acronym CARE: Community, Authenticity, Responsibility and Excellence. The University has 20 research areas across its research institutes and centres such as the Humanities Research Institute, Centre for Health and Relationships, Buckingham Centre for Astrobiology, Centre for Education and Employment Research, Centre for Research in Expertise Acquisition, Training and Excellence, Denning Law Journal, Dickens Journals Online, and the Max Beloff Institute.

SCHOLARSHIPS AND BURSARIES

The University’s Scholarships and Bursaries programme is an important part of assisting students to benefit from a university education, regardless of their financial circumstances. We have bursaries and scholarships available for both home and international students at undergraduate and postgraduate study levels. These are awarded based on location, merit or financial need.

The University of Buckingham Foundation holds funds as endowed investments and property, generating income to support scholarships, bursaries, grants and other projects available for the benefit of the University.

In 2023, the University awarded total scholarships, bursaries, and prizes of £1.3m (2022: £0.8m). These scholarships and bursaries include funded, named scholarships from the Foundation of £0.3m (2022: £0.4m). These are recorded within Curriculum costs, itself within Other operating expenses. The University, and students who have benefited are ever grateful to all donors who have supported funded scholarships and bursaries.

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Trustees’ Report

FINANCIAL REVIEW

Income

Total income for the Group at £53.6m in 2023 increased by 12% (2022: £47.9m).

Tuition fees remain the principal income source for the Group, and financially support much of our day-to-day teaching and research activities. Tuition fees represent 84% of total income in 2023 (2022: 86%). The decrease in our Home & EU fees income has been outweighed by an increase in the International fees income for both our UG & PG courses.

Residences and catering income on the Buckingham campus totalled £3.9m, (2022: £3.3m).

At the consolidated level, donation and endowment income in 2023 was £0.9m (2022: £0.1m).

Expenditure

Group expenditure decreased in 2023 by £3.0m to £47.3m. Particular reasons for these movements include:

Staff costs (excluding write back of USS pension provision costs £3.3m) increased by £3.4m being 18% higher than 2022. The USS pension provision was written back in 2023 as a result of the 2023 triennial actuarial valuation of the USS scheme. The valuation shows the scheme is back to a surplus and deficit recovery contributions have ceased from January 2024.

Other operating expenses decreased by £1.7m, largely driven by a decrease in the Crewe lease and other provision

movements of £2.6m, an impairment charge of £1.3m and higher medical placement fees of £1.7m.

The University continues to use scholarships and bursaries to improve student access, and to support those who would otherwise struggle financially to join the University. The Group spent £1.3m on this support, (2022: £0.8m).

During 2023 a review of the use of the Milton Keynes Academic Centre building was undertaken, concluding that the University’s School of Medicine had outgrown its ability to make effective use of the building. The Group sought the sale of the building and completed a review of impairment resulting in an impairment charge in the year of £1.3m, and the reclassification of resulting book value to fixed assets held for sale in these Group accounts as explained in note 11 of the financial statements. In March 2024 a sale of the building was completed realising £4.75m proceeds, marginally higher than the impaired book value.

The reported surplus of £6.2m (2022 deficit of £2.8m) includes the impact of several one-off events, including significant provision changes. Excluding these one-off events the “operational performance” of the group was a surplus of £0.3m as noted below:

		Group	University	Group		University
		2023	2023	2022		2022
		£000	£000	£000		£000
	Reported surplus (deficit)	6,231	7,171	(2,815)		(2,322)
	One-off Changes in provisions	(6,502)	(5,957)	(183)		(183)
	One-off Impairment charge	1,352	-	-		-
	One-off & non-operational income & expenditure	(740)	(862)	-		-
	Operational surplus (deficit)	341	352	(2,998)		(2,505 )

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Trustees’ Report

FINANCIAL REVIEW

Key performance indicators

	KPIs covering financial strength of The University of Buckingham group	2023	2022
	Cash and cash equivalents	£13.5m	£12.9m
	External borrowing as a percentage of total income	9%	10%
	Surplus/(deficit) for the year	£6.2m	(£2.8m)

University Investments

No market investments on behalf of the University can be made without the approval of the Finance, Estates and Resource Committee and no new market investments were made during 2023. The priorities for investment are identified by the Vice-Chancellor and University’s senior management, through business, social and environmental considerations.

Statement of Financial Position

Group net assets increased to £28.1m from £20.7m in 2023 as a result of the operational surplus.

Tangible fixed asset additions totalled £2.7m (2022 £1.2m), the increase principally resulting from the completion of the refurbishment of the Franciscan Building and associated teaching, student study and social areas.

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Trustees’ Report

Reserves

The Group aims to maintain an appropriate level of unrestricted reserves and cash resources for the following reasons:

• Market factors may impact the number of students attending University courses, and the mix of courses and students. The University gains most of its income from academic programmes and may rely on reserves if there is a reduction in student numbers, whether permanent or temporary.

• The University has substantial ongoing commitments relating to the welfare and education of the students and needs to maintain a level of reserves sufficient to continue to meet these commitments.

• The University has commitments to its lenders to repay capital and interest on its borrowings.

The trustees are committed to improving the long-term financial sustainability through effective use and deployment of resources. During 2023 a Reserves and Liquidity policy was established targeting improvements in these areas. Specifically, the number of days of unrestricted reserves (Unrestricted reserves divided by annual expenditure less depreciation, amortisation and changes to pension provisions, multiplied by 365) and liquidity days (Cash plus cash equivalents plus current asset investments less any overdrafts or loans repayable within 12 months, divided by annual expenditure less depreciation, amortisation and changes to pension provisions multiplied by 365).

reserves measure equates to 88 days, and net liquidity 92 days which are both within the targeted range such that the Trustees are satisfied with progress.

certain degree courses, which are sponsored by specific funds.

The Trustees consider the level of reserves at the balance sheet date to be adequate for the purposes outlined above and anticipate that over the course of the next five years unrestricted reserves will increase following pursuit of income growth and cost efficiency.

The Group’s unrestricted reserves increased to £12.9m as at 31 December 2023 (31 December 2022: £8m), driven by the financial performance in the year as discussed throughout these accounts.

A more detailed view of the University’s future is covered under the ‘going concern’ section of this report.

The consolidated restricted reserves increased to £7.2m as at 31 December 2023 (31 December 2022: £5.7m). The consolidated total endowment reserves increased to £8.0m (2022: £7.1m) due to an increase in market value of investments.

At the date of the signing of these accounts progress has been made on the review of Endowment, and Restricted funds, and the presentation of income and expenditure associated with endowment funds. This work is anticipated to conclude in 2024 after further verification work has been completed.

The timing of expenditure of restricted funds is based on when the costs required to complete the specific purposes of the funds arise, as well as the award of bursaries and scholarships to students in

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Cash Flow and Financing

The Group held liquid cash balances of £13.5m at the year-end (2022: £12.9m).

As at the balance sheet date, a loan drawn in 2021 with NatWest of £5m remained repayable within 5 years, with no capital repayment due within the next 12 months. The University also has a £5m revolving credit facility available to it from NatWest which was not used during 2023.

The University continues to consider ways of improving our cash position through investment of our own funds and philanthropic support to ensure we continue to provide the student experience to enable our students to flourish.

At the balance sheet date, the unrestricted

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Trustees’ Report

Principal risks

The University considers its principal risks (which include external factors outside of its control) to lie in the key areas below and has taken active steps to identify and mitigate these as well as other detailed operational risks.

1. Financial

In the HE sector as a whole financial stability in the current climate is key to the University’s success in delivering its objectives. In an environment where personal finances are stretched due to the cost-of-living crisis, the University’s commitment to providing degrees in a shorter timescale and through new means of funding via our FEA scheme, as well as multiple bursaries and scholarships, we strive to continue to be attractive to new students. The government changes to visa rules to exclude dependents has had a damaging impact on the sector with many universities including The University of Buckingham seeing reduced international student recruitment in recent months.

Overall, the Trustees are confident in the University’s ability to manage the provision of academic delivery and student outcomes and experience whilst maintaining a focus on income generation and cost control through the uncertainties that may arise through the operationalisation of the recently approved strategy.

2. Staffing

Like many organisations, there is a risk of not being able to recruit and retain proficient staff – with a resultant adverse impact on the student experience and the quality of administrative services. Management across the University ensure sufficient staff resources are available at crucial times. Among the mitigation measures, particular care is taken around staff engagement, well-being, and professional development. The Vice-Chancellor holds regular ‘town hall’ meetings to encourage engagement and debate with staff colleagues, and there are regular events to promote staff well - being. As a relatively small organisation there is recognition that the University is reliant on several key individuals, but our collegiate approach allows information and expertise to be shared so that absences can be covered where needed and, in some cases, interim staffing brought in.

3. Built Estate

With our Estates buildings being a mix of new builds and historic, the older buildings need our ongoing attention and investment to ensure they still meet the needs of our students and staff alike.

During 2023 and into January 2024, phase 2 of a significant refurbishment of the Franciscan building on our Verney Park site to further update facilities for the Computing, Law and Psychology faculty and associated student study and library facilities was completed. The building now boasts state-of-the-art seminar rooms, a renewed lecture theatre, a renovated library, a new moot court, collaborative study spaces, a soundproofed green screen room, a start-up space, café, and much more.

A lease was secured at the start of 2024 for a local hotel to secure further student accommodation on a twin room basis, now renamed Mount Pleasant. This will allow us to grow our on-campus student numbers and free some current accommodation facilities for refurbishment.

The move of electrical apparatus from a basement on the Hunter Street campus, which has been prone to flooding, was completed at the beginning of 2024, thus mitigating the risk of disruption to future operations. 2024 plans include refurbishment of the Chandos Road Building and other maintenance projects to ensure we continually improve the student environment on campus.

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Trustees’ Report

4. Information Systems and Data Security 5. Regulatory Compliance

The University of Buckingham is, like many universities, at risk of malicious cyber incursions and unforeseen infrastructure failures that can impact its staff and students; however, as was shown during the pandemic, the University is agile enough to respond to emerging threats quickly and pivot to new forms of delivery should this be necessary. As a small institution, Buckingham must remain cognisant of risks to its market share and seek to address these proactively through technology investment, consistent messaging, awareness and a personalised approach.

We are committed to ensure we maintain compliance in all areas of regulation and have revamped our approach to internal audits with a new outsourced provider to further support improvements in our control environment. The Group’s principal regulatory bodies are:

• The University of Buckingham; Office for Students & The Charity Commission. For more specific activities; Ofsted, Education and Skills Funding Agency (ESFA) & The General Medical Council

• The University of Buckingham Foundation; Charity Commission.

During 2023 a review of current IT infrastructure and systems was completed, and a resultant IT strategy created, which is now being systematically implemented.

• Medical Property Management Limited; Companies House

The University is also mindful of regulatory compliance relating to immigration, employment law and our academic activities generally (and particularly within healthcare and education).

To further strengthen our IT security and resilience, and improve the technology delivery to students and staff, the University launched a Digital Transformation programme at the end of 2023. This commences with replacing the Finance, HR and Payroll systems and evaluation of future student management solutions in 2024. 2025 and beyond are planned to bring improvements to the student management and end to end student journey.

6. Joint Venture

Progress continued during 2023 on systematically resolving the historic challenges around the Crewe joint venture. In December 2023 Heads of Terms were agreed and signed for new arrangements for the use of the campus until the end of 2026, and the satisfactory resolution of all other matters including the transfer of the University’s shares in the Joint venture. Associated agreements were completed after the balance sheet date as noted in the post balance sheet event section later in this report and note 26 of the financial statements.

7. Reputational Risk

The University is acutely aware of the need to maintain a positive reputation to attract future students, staff and other stakeholders. Maintaining a positive reputation around all governance and sector specific topics, such as free speech is proactively discussed and managed by the trustees and governance committees.

18

Trustees’ Report

Financial Risk Management Objectives and Policies

The Group’s main financial instruments are cash and quoted investments held by the University and the Foundation. In addition, items such as trade debtors and trade creditors arise directly from its operations. The main purpose of these financial instruments is to fund the Group’s operations. The existence of these financial instruments exposes the Group to several financial risks, namely market risk, liquidity risk and credit risk. The Trustees review and agree policies for managing each of these risks and they are summarised below.

a. Market Risk

• Currency risk: The Group is exposed to some translation and transaction foreign exchange risk in respect of cash, cash equivalents, and investments. This risk is not significant to the Group and accordingly there are no hedging provisions in place.

• Interest rate risk: At the balance sheet date the University had a £5m bank loan outstanding. Details of the loan are in Note 15. Since the loan interest rate is fixed, there is no current interest rate risk.

• Share price risk: The Group’s exposure to share price risk consists mainly of movements in the value of the Group’s investments in quoted shares.

b. Liquidity risk

The University has sufficient liquid cash resources partially arising from funds drawn down from the loan. The University

manages its liquidity risk through regular cash flow forecasts and other financial management information tools. Also, the University monitors cash resources as a proportion of operating costs through the year, considering peaks and troughs in cash flows and the projected impacts on banking covenants. Furthermore, the University has a £5m revolving credit facility with NatWest available which has been unused since it was established in 2021.

The University’s investments are guided by the University’s Financial Regulations, and the University’s Finance, Estates and Resource Committee and during 2023 approved a new Reserves and Liquidity policy setting out the strategy and policies for cash management, long term investments and borrowings.

c. Credit Risk

The Group’s principal financial assets are quoted investments held by the University (and via the Foundation), cash and trade debtors. Quoted investments are managed by independent professional advisers, working with a cautious risk appetite set by The University of Buckingham and The University of Buckingham Foundation. The credit risk associated with the investments and cash is limited, as the counterparties are well-established financial institutions. The principal credit risk arises therefore from the Group’s receivables. The nature of the Group’s client base, being mainly undergraduate and postgraduate students, is such that it is not significantly exposed to any single individual customer, although there are several commercial and institutional clients. For example, the University validates other providers’ programmes in the UK and internationally. The Trustees therefore concentrate their efforts on ensuring that the processes

around credit approval and debt collection are sufficiently robust and the new finance system being implemented in 2024 will further improve control of this inherent risk.

Fraud and error

As with any business, there are potential risks to the integrity of financial assets and financial information. The primary safeguards are the staffing & ongoing training of the finance office and its financial procedures, some of which have been reviewed during 2023 to ensure we are continuing to adhere to robust control mechanisms. Staff are regularly updated on fraud risks and there is a schedule of training for staff. Some processes and controls will be further automated through the new finance system implementation. The Risk, Audit and Compliance Committee undertakes rolling reviews of risk management. The Finance, Estates & Resources Committee and the Council receive financial reports and information which enable them to engage in significant financial decisions.

19

Trustees’ Report

Forward outlook and plans for the future

Positive 2023 performance and further actions to strengthen the financial position of the Group and University underpin the confidence that the University will maintain a satisfactory liquidity position, as defined by available cash resources for the foreseeable future.

Throughout 2023 the Group continued to comply with the debt service covenants and based on the forward forecasts and projections, the Group forecasts to be compliant with its debt service covenants for the foreseeable future and able to withstand plausible variations in those forecasts.

Climate change

The Trustees recognise climate change as an important matter for the University and the wider community. The University has already taken steps to reduce consumption of energy (such as by installing modern heating and lighting systems, and insulation). Furthermore, re-use and recycling materials is done where possible, and University vehicles are predominantly electric. The Trustees recognise there is more to do over the coming years to assess and respond to climate risks.

As already noted, the University has mitigated the risk of flooding of the River Great Ouse impacting electrical supplies by moving the connections from a basement on Hunter Street prone to flooding.

The University, like other organisations, needs to transition to more environmentally friendly means of delivering its objectives. There is desire for this from within the University and our

students and we will see increasing demands to make changes to our working practices and our built estate because of societal changes and legislation. In 2024 the Executive Group are creating a wider engagement across staff, students, and other stakeholders to drive awareness and activity around sustainability. Environmental considerations are required for all projects and significant decisions.

Risk of exposure to Ukraine, Russia, Israel & Palestine

Occasionally, a handful of students from these countries enrol, and the tragic conflicts that exists currently in Ukraine and Middle East are noted, though the University does not have business operations connected to these countries, so there is minimal and immaterial risk exposure.

Perspectives on future direction

As noted in the Vice Chancellor’s report, The University of Buckingham launched its Strategic Plan 2023-2028 during 2023. Setting out the University’s ambitions for the coming five years, the Strategic Plan emphasises the importance of sustainable growth in numbers, income and surplus alongside growth of the University’s academic provision and growth of the University’s employees personally and professionally. Underpinning these aims are four guiding principles that build on the University’s foundations while speaking to the future: independence and academic freedom, academic excellence, student partnership and innovation and entrepreneurship. The University has spent the intervening period crystallising this exciting vision into an ambitious

programme of strategic and

transformational work, the former targeting the Buckingham of the future and the latter providing a solid infrastructure upon which to build.

The following section sets out a summary of those Strategic plans.

20

One Strategic Aim Four Guiding Principles

We will grow our student numbers, income and operational surplus in a planned, measured and sustainable manner.

We will grow our academic provision in breadth, depth and rigour.

SECURING OUR FUTURE: GROWTH AND SUSTAINABILITY

We will grow our people by supporting them with professional development and state-of-the-art systems and processes.

We will underpin our growth and sustainability with four guiding principles: independence and academic freedom; academic excellence; student partnership; innovation and entrepreneurship.

----- Start of picture text -----
Independence
& Academic
Freedom
----- End of picture text -----

Academic Excellence

Student Partnership

Innovation & Entrepreneurship

21

Our Vision

A beacon of independence and academic freedom, we will be a university internationally recognised for fostering the leaders, thinkers and achievers of the future.

Our Mission

Inspiring and empowering individuals to achieve the extraordinary through excellence in learning, teaching, research and entrepreneurship.

Our Pitch

Discover the Buckingham difference: learn with the best in a university where you’re always a name, never a number.

Our Guiding Principles

Our Values

INDEPENDENCE AND ACADEMIC FREEDOM

ACADEMIC EXCELLENCE

COMMUNITY

We are a global community of students, scholars, professionals and alumni, sharing our passion for understanding.

AUTHENTICITY

We are true to who we are: an independent university, wholly committed to the pursuit of free enquiry.

RESPONSIBILITY

EXCELLENCE

STUDENT PARTNERSHIP

INNOVATION AND ENTREPRENEURSHIP

We take responsibility for our actions and our words, and how we maintain and utilise our physical, financial and natural resources and environment.

We are professional, collegiate and hardworking, and we strive for success in all that we do.

Our Motto

Alis Volans Propriis Flying on our own wings

22

Trustees’ Report

Post Balance Sheet Events

In January 2024 a lease was entered into for a local hotel for use as further student accommodation on a twin room basis, now renamed Mount Pleasant. This will allow us to grow our on-campus student numbers, refurbish some current accommodation, and extend meeting and conferencing facilities. The agreement extends for up to 20 years with an initial rental of £900k per annum and the University having break options at 5 yearly intervals.

In February 2024, the University completed mutually acceptable agreements with Apollo Education UK concerning our Crewe Campus. A connected series of agreements with Apollo Education UK Ltd, Apollo Buckingham Health Sciences Campus Ltd (ABHSC), and Manchester Metropolitan University (MMU) result in the University now having certainty on all matters in relation to Crewe. As a result:

• The University has a lease to utilise the Crewe campus until the end of 2026.

• The lease for Booth Hall between MMU & ABHSC has been extended until the end of 2026, resulting in the University’s rent deposit deed and terms around the joint mandate account being appropriately amended.

• The University’s shares in the joint venture company (ABHSC) have been transferred to Apollo Education UK, and the University has agreed to contribute to the cost of dilapidations works on Booth Hall to a maximum of £1.0m.

• All historic arrangements between the University and Apollo Education and ABHSC have been superseded.

It was announced in March 2024 to all stakeholders that the University has taken the strategic decision to relocate teaching activities and educational provision from the Crewe campus to the main campus in Buckingham. The relocation will be phased over the next 3 years with full completion anticipated by the end of 2026.

The University will continue to deliver a high-quality educational experience for all our students through this transition period with all current Crewe based students anticipated to complete their studies on the Crewe campus.

As noted above, during 2023 a review of the use of the Milton Keynes Academic Centre building was completed, concluding that the University’s School of Medicine had outgrown its ability to make effective use of the building. The Group sought a sale of the building and took an impairment charge in the 2023 of £1.3m and reclassified the asset to fixed assets held for sale in these Group accounts. In March 2024 a sale of the building was completed realising £4.75m proceeds, marginally above that the impaired book value.

Going concern

The Group and University’s financial statements are prepared on a going concern basis, based on Trustees’ assessment of the financial position, operating model, and forecast cash flows. This assumes the Group and University will continue in operation for the foreseeable future including meeting its future obligations as they fall due.

The University continues to take actions to further improve governance and financial sustainability and the new Strategic plan provides the focus and direction for the further growth and success of the University.

At the balance sheet date, the Group is reporting net current liabilities of £0.8m (University: £1.6m), which is an improvement of £2.0m (University improvement of £1.7m) due to an increase in fees received in advance and a decrease in trade creditors.

The University forecasts to meet all its banking covenant and debt servicing requirements for the foreseeable future.

After considering significant potential risks to plans and forecasts and the potential actions, which could include the sale of additional capital assets and a programme of cost restructuring, the Trustees are satisfied that it remains appropriate to prepare the Group and University financial statements on a going concern basis.

Approved by the Trustees and signed on their behalf on 20 May 2024 by:

Mount Pleasant Campus

David Cole Chief Financial Officer

Professor James Tooley Vice-Chancellor

Mark St John Qualter Chair of Council

23

20 May 2024

Chancellor and Members of Council

THE COMPOSITION OF THE COUNCIL

Pursuant to Statute 15, the Council shall comprise ex-officio members, independent members and elected members.

Membership of the sub-committees of Council for 2023 are listed below, with the Chair denoted in bold. Unless otherwise noted, Members were appointed in a prior year, or resigned from subcommittees upon ending their term on Council.

Finance, Estates & Risk, Audit & Nomination, Resources Compliance Performance & Committee Committee Remuneration Committe

Sir Francis Habgood

Mr Mark Rushton

Mr Mark St John

Qualter

Mr Nicholas Hillman Professor James Mr Chris Hollis Tooley Lord Peter Lilley Mrs Karen Mitchell Professor Goran Roos Sir Francis Habgood Mrs Camilla Soames

Dr Keith Bothongo Mr Chris Hollis Mr Alan Smithers Professor James Tooley

Professor Jaqueline O’Dowd (to September 2023)

Ms Josephine Mbuya (From October 2023)

	Chancellor Dame MaryArcher Independent Members of Council Mr Mark Qualter	(Chair of Council)
	Mrs Camilla Soames Professor Alan Smithers AndyDunkley	(Council Member) (Vice-Chair)	Re-appointed January 2023 Appointed February2023 Term ended July2023 Appointed May2024
	Mr Christopher Hollis Sir Francis Habgood Professor Goran Roos		Appointed October 2023
	Mrs Karen Mitchell		Resigned April 2023
	Katie Nykanen		Appointed May2024
	Dr Keith Bothongo		Resigned December 2023
	Kristina Church		Appointed May2024
	Mr Mark Rushton Nadia Strone		Resigned December 2023 Appointed May2024
	Mr Nicholas Hillman
	Lord Peter Lilley
	Phil Wolfenden		Term Ended July 2023
	Professor TimothyEvans
	Elected Members
	Professor Adolfo Paolini		Term ended October 2023
	Mrs Anthea Bailey		Appointed November 2023
	Mr Callum Roberts		Term ended November 2023
	Mr Graham Jones Professor Hongbo Du Professor Jacqueline O’Dowd Ms Josephine Mbuya	(Alumni Representative)	Appointed October 2023 Term ended October 2023 Re- Appointed October 2023
	Mrs Sarah Myhill Mr Toluwani Osamolu Ex-Officio Members Professor James Tooley	(Vice-Chancellor)	Appointed October 2023
	Professor Harriet Dunbar-Morris	(Pro-Vice Chancellor Academic)	Appointed December 2023
	Mr Toby Corbett	(President of the	Appointed January 2023
		Students’ Union)	Re-appointed January2024

24

Statement of responsibilities of the University Council in relation to the financial statements

RESPONSIBILITIES AND ACTIVITIES OF THE COUNCIL IN RELATION TO THE FINANCIAL STATEMENTS

The Council is responsible for preparing the Annual Report and financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law). In accordance with its regulatory responsibilities under section 18 of Schedule 7 of the Education Reform Act 1988, the University’s Council presents audited financial statements for each financial year.

Group and University and of the income and expenditure for that year; and comply with the Charities Act 2011 and the provisions of its Royal Charter. In causing the financial statements to be prepared, Council has ensured that:

• Nomination, Performance and Remuneration Committee (NPRC)

• Inclusion Committee*

• Honorary Appointments and Awards Committee*

• Judgements and estimates are made that are reasonable and prudent;

• (* Joint Committee of Council and Senate)

• Financial statements are prepared on the going concern basis unless it is inappropriate to presume that the Group and University will continue in operation for the foreseeable future.

Operations of Senate

Senate’s powers are exercised through a number of sub-committees, whose terms of reference were approved by Senate:

The financial statements have also been prepared in accordance with:

Council is responsible for safeguarding the assets of the Group and University and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

• University Research Committee

• The Statement of Recommended Practice “Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)”; and

• University Learning & Teaching Committee

Council is further responsible for the maintenance and integrity of the information, charity and financial, included on the University’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

• Inclusion Committee*

• Honorary Appointments and Awards Committee*

• The Charities Act 2011.

• (* Joint Committee of Council and Senate)

• The provisions of the Statement of Recommended Practice – Accounting for Further and Higher Education 2019 and meet the requirements of the Office for Students accounts direction dated 25 October 2019.

Operations of Council

Council’s powers are exercised through a number of sub-committees:

The Council is required to keep proper accounting records which: disclose with reasonable accuracy at any time the financial position of the Group and University; which enable it to ensure that the annual financial statements give a true and fair view of the state of affairs of the

• Finance, Estates and Resources Committee (FERC)

• Risk, Audit and Compliance Committee (RACC)

David Cole Chief Financial Officer

Professor James Tooley Vice-Chancellor

Mark St John Qualter Chair of Council

25

20 May 2024

Statement of Corporate Governance and Internal Control

This statement of corporate governance and internal control covers the period from 1 January 2023 to the date of approval of these financial statements.

meets all legal and regulatory requirements imposed on it as a corporate body.

Corporate governance structure

The University is incorporated by Royal Charter (number RC000730) and the conduct of the University’s affairs is governed by the Royal Charter and accompanying Schedule (Statutes), approved by the Privy Council.

The Senate of the University is its governing academic authority. Senate’s responsibilities include: the regulation and control of all academic awards as well as the programming and teaching that facilitates students’ admission to said academic awards, the management of the formalities associated with making academic awards and the regulation of University discipline. The Senate is responsible for overseeing the development of the University’s academic portfolio (including all associated research, learning and teaching and assessment activities), for the admission of students and for all areas pertaining to academic delivery and support.

The University is registered as an Approved Provider with the Office for Students (UKPRN: 10007787) and is a registered charity (number 1141691). It is authorised by its Royal Charter to award taught and research degrees in perpetuity. The University is a member of Universities UK.

The University has a bicameral constitution comprising the Council and the Senate. Whereas the Council is the governing body, and its members are Trustees of the University, the Senate is the governing academic authority, responsible for the setting and maintenance of threshold academic standards and for assuring and enhancing the quality of students’ learning opportunities.

The principal academic and administrative officer of the University is the ViceChancellor, who has a general responsibility to the Council for maintaining and promoting the efficiency and good order of the University and who is the Chair of the Senate. The Vice-Chancellor also chairs the Executive Group, comprising the members of the University’s senior management.

The Council of the University has responsibility for the stewardship of the University’s assets; its members focus on strategic decision making and ensuring adherence to its charitable objectives whilst delegating day-to-day operational responsibilities to the Vice-Chancellor, the Executive and senior management team. It receives assurances that the University

The University performed and concluded a detailed review of its governance structures, including the amendment of the charter and statutes, in 2021.

The University completed a detailed independent review of the effectiveness of its governance in 2023 which made a number of recommendations and suggestions, the implementation of which are currently being overseen by a Steering Group of Council members.

Oversight of Corporate Governance, Risk Management, Statutory and Regulatory Responsibilities

The Risk, Audit and Compliance Committee of the Council (RACC) provides much of the oversight of the University’s corporate governance and risk management. This is through reports to RACC from senior management, the University’s Internal and External auditors, and from the University’s risk management lead from whom a report is received at every meeting of RACC. The Council, in turn, considers the minutes of RACC as a standing item. The Council receives updates on matters relating to Corporate Governance from the ViceChancellor.

The Council and its Committees ensure that the University complies with its statutory and regulatory responsibilities. The RACC, together with Senate, provide much of the oversight of compliance with OfS’ ongoing conditions of registration. Additionally, the Finance, Estates and Resources Committee (FERC) oversees compliance with the University’s statutory obligations in relation to health and safety.

The University’s management accounts are considered by the Council, FERC and RACC on at least a quarterly basis.

Scope of responsibility

The Council has ultimate responsibility for the University’s system of internal control and or reviewing its effectiveness. The Council has delegated to the ViceChancellor the day-to-day responsibility for maintaining sound systems of internal control that support the policies, aims and objectives of the University whilst safeguarding all funds and assets in accordance with responsibilities set out in the Office for Students’ conditions of registration. The effectiveness of these controls is reviewed by the RACC. The ViceChancellor is also responsible for reporting to the Council any material weaknesses or breakdowns in internal control.

The purpose of the system of internal control

The system of internal control is an ongoing process designed to identify the principal risks to the achievement of the University’s plans, policies and objectives; to evaluate the extent of those risks; and to manage them efficiently, effectively, and economically. Such a system is designed to manage and mitigate rather than eliminate the risk of failure to achieve business objectives and can provide only reasonable and not absolute assurance against material misstatement or loss.

26

Statement of Corporate Governance and Internal Control

The risk and control framework

The Council has taken reasonable steps to ensure:

• There are appropriate financial and management controls in place to safeguard the assets of the Group and University and prevent and detect fraud, with any concerns investigated thoroughly before the financial statements are signed off.

• The economical, efficient, and effective management of the Group and University’s resources and expenditure.

• Funds from whatever sources and administered by the University for designated purposes have been applied properly for those purposes and managed in accordance with applicable legislation.

• It is in receipt of regular reports and additional meetings are scheduled, to discuss the issues arising from significant matters if and as required.

A process is in place for identifying, evaluating, and managing the significant risks facing the University, and ensuring the associated procedures have been in place and operational throughout the year, notably through the regular review and updating of the University’s Risk Register. The Risk Register details strategic and recurrent risks and covers governance, management, quality of service, reputational, operational, compliance as well as financial risks together with the range of mitigating controls in place and the early warning indicators for each risk.

The Risk Register is under continuous review by senior management and by the RACC at each of its meetings. This enables the University to ensure that it can monitor and manage risks in an ever-changing environment.

The key elements of the University’s system of risk assessment and internal control, which is designed to discharge the responsibilities set out above, include the following:

• Risk Management, which is led by the Registrar, supported by senior managers, and reports into RACC.

• A medium and short-term financial planning process, supplemented by detailed annual income, expenditure, capital, and cash flow budgets.

• Regular reviews of academic performance and monthly reviews of financial results involving variance reporting and updated of forecast outturns.

• Clearly defined requirements for approval and control of expenditure - with investment decisions involving capital or revenue expenditure being subject to review according to approval levels set by FERC; and

• An outsourced internal audit function. A new provider was appointed in 2023 which has created and implemented a new framework and program of internal audit across the University’s operations, reporting directly to RACC.

Review of effectiveness

The Council receives periodic reports from RACC (including copies of minutes of its meetings), and arrangements are in place to ensure regular reports are received from the University management on their actions to manage risks in their areas of responsibility. Reviews by Council of the effectiveness of the system of internal control are informed by the reports of Council, committees, and Officers of the University.

Nominations, Performance and Remuneration Committee

The Nominations, Performance and Remuneration Committee (‘NPRC’) normally meets bi-annually to monitor the performance of Officers of the University (including the Vice- Chancellor) and members of the University’s Executive Committee to determine their remuneration and conditions of service. The Vice-Chancellor attends all meetings other than those involving consideration of his own salary.

NPRC sets the salary of the Vice-Chancellor taking account of the nature of the role, the institution, performance, and in accordance with the Committee of University Chairs’ Higher Education Senior Staff Remuneration Code (2018). The Chair of Council undertakes an annual appraisal of the Vice-Chancellor’s performance in the previous year, agreeing objectives for the next 12-month period. This takes place at the end of each calendar year.

David Cole Chief Financial Officer

Professor James Tooley Vice-Chancellor

Mark St John Qualter Chair of Council

27

20 May 2024

Independent Auditors’ report to the Council of The University of Buckingham

Opinion

We have audited the financial statements of The University of Buckingham (the ‘University’) and its subsidiaries (‘the Group’) for the year ended 31 December 2023 which comprise the Group and University Statements of Comprehensive Income, Group and University Statements of Changes in Reserves, Group and University Statements of Financial Position, Group Statement of Cashflows and the related notes, including a Statement of Principal Accounting Policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

The financial statements have been prepared in accordance with Statement of Recommended Practice Accounting for Further and Higher Education 2019 in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations, The Charities (Accounts and Reports) Regulations 2008, but has been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015. In our opinion the financial statements:

• give a true and fair view of the state of the University’s affairs as at 31 December 2023 and of its incoming resources and application of resources for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements we have concluded that the Council’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, including consideration of financial forecasts and cashflows and compliance with bank covenants, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group’s and University’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors’ Report thereon. The Council are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially

inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Responsibilities of the Governing Body

As explained more fully in the Statement of Responsibilities of the University’s Council in Relation to the Financial Statements, the Council are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Council determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

28

Independent Auditors’ report to the Council of The University of Buckingham

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

• Enquiry of management and those charged with governance concerning actual and potential litigation, regulatory actions and claims;

• Enquiry of staff to identify any instances of non-compliance with laws and regulations;

• Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness;

• Evaluating the business rationale of significant transactions outside the normal course of business;

• Reviewing accounting estimates for bias;

• Reviewing minutes of meetings of those charged with governance;

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

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

A further description of our responsibilities

for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/ auditorsresponsibilities . This description forms part of our Auditor’s Report.

Report on other legal and regulatory

We are required to report on the following matters by the Accounts Direction dated 25 October 2019 issued by the Office for Students (‘the Accounts Direction’).

In our opinion, in all material respects:

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

• the financial statements meet the requirements of the Accounts Direction dated 25 October 2019 issued by the Office for Students.

We are also required by the Accounts Direction to report where the results of our audit work indicate that the University’s grant and fee income, as disclosed in the notes to the financial statements, has been materially misstated. We have nothing to report in these respects.

Use of our report

This report is made solely to the Council, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the

Governing Body those matters we are required to state to them in an Auditor’s Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Group and University and its Council, as a body, for our audit work, for this report, or for the opinions we have formed.

MHA, Statutory Auditor London, United Kingdom

Date: 27 May 2024

MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)

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

29

Group and University statements of comprehensive income for year ended 31 December 2023

Note Income 1 Tuition fees and education contracts 2 Research grants and contracts 3 Other income 4 Investment income	Group 2023 £000 University 2023 £000 Group 2022 £000 University 2022 £000
	45,066 45,066 41,128 41,128 374 374 1,049 1,049 7,044 6,819 5,498 4,971 246 162 145 18
Total income before donations and endowments 5 Donations and endowments	52,730 52,421 47,820 47,166 859 642 123 513
Total income	53,589 53,063 47,943 47,679
Expenditure 6 Staff costs 7 Other operating expenses 11 Depreciation 8 Interest and other finance costs	19,154 19,154 20,455 20,455 25,593 24,528 27,315 26,940 2,340 2,061 2,385 2,095 240 240 171 171
9 Total expenditure	47,327 45,983 50,326 49,661
Surplus/(deficit) before other gains/(losses) (Losses)/gains on disposal of fixed assets 12 Gains/(losses) on investments	6,262 7,080 (2,383) (1,982) (534) (534) 189 189 503 625 (621) (529)
Surplus/(deficit) for the year Total comprehensive income/(expenditure) for the year	6,231 7,171 (2,815) (2,322) 6,231 7,171 (2,815) (2,322)
Represented by: 17 Endowment income/(expenditure) for the year 18 Restricted income/(expenditure) for the year Unrestricted income/(expenditure) for the year	346 139 (712) (443) (465) (505) (107) 173 6,350 7,537 (1,996) (2,052)
Surplus/(deficit) for the year	6,231 7,171 (2,815) (2,322)

The consolidated income is attributable to the University and its subsidiaries. There is no non-controlling interest. All income and expenditure of the University and its subsidiaries relates wholly to continuing operations. The notes on pages 41 to 59 form part of these financial statements.

30

Group and University statements of changes in reserves for year ended 31 December 2023

Group Balance at 1 January 2022	Endowment £000 Restricted £000 Unrestricted £000 Total £000 7,763 5,760 10,041 23,564 (269) (280) (2,266) (2,815) - (258) (117) (375) (443) 80 363 - - 351 24 375 (712) (107) (1,996) (2,815) 7,051 5,653 8,045 20,749 346 (465) 6,350 6,231 - - (370) (370) 170 (9) (161) - - 305 65 370 516 (169) 5,884 6,231 7,567 5,484 13,929 26,980
(Deficit) for the year Release of restricted funds spent in the year Transfer of expenditure between reserves New donations and reclassifications
(Deficit) for the year ended 31 December 2022
Balance at 1 January 2023
Surplus/(deficit) for the year Release of funds spent in the year Transfers between reserves New donations and reclassifications
Surplus/(deficit) for the year ended 31 December 2023
Balance at 31 December 2023
University Balance at 1 January 2022	Endowment £000 Restricted £000 Unrestricted £000 Total £000 4,129 5,806 7,154 17,089
(Deficit) for the year Release of restricted funds spent in the year Transfer of expenditure between reserves New donations and reclassifications	- - (2,322) (2,322) - (258) (117) (375) (443) 80 363 - - 351 24 375
(Deficit) for the year ended 31 December 2022	(443) 173 (2,052) (2,322)
Balance at 1 January 2023	3,686 5,979 5,102 14,767
Surplus/(deficit) for the year Release of funds spent in the year Transfers between reserves New donations and reclassifications	139 (505) 7,537 7,171 - - (144) (144) (22) 185 (163) - - 144 - 144
Surplus/(deficit) for the year ended 31 December 2023	117 (176) 7,230 7,171
Balance at 31 December 2023	5,803 5,803 12,332 21,938

31

Group and University statements of financial position at 31 December 2023

Note Fixed assets 10 Intangible assets 11 Tangible assets 12 Investments		Group 2023 £000 University 2023 £000 Group 2022 £000 University 2022 £000
		- - - - 32,252 26,749 33,757 26,624 6,984 8,012 6,633 7,531
Total fixed assets		39,236 34,761 40,390 34,155
Current assets 12 Investments 13 Trade and other receivables Cash and cash equivalents		87 - 85 - 12,295 13,728 13,305 14,330 13,468 11,213 12,923 11,163
Total current assets		25,850 24,941 26,313 25,493
14 Less creditors amounts falling due within one year Net current liabilities		(27,756) (27,677) (29,102) (28,837) (1,906) (2,736) (2,789) (3,344)
15 Creditors: amounts falling due after more than one year 16 Pensions provisions 16 Other provisions		(5,000) (5,000) (5,000) (5,000) (134) (134) (3,450) (3,450) (5,216) (4,953) (8,402) (7,594)
Total net assets		26,980 21,938 20,749 14,767
Restricted reserves 17 Income and expenditure reserve – Endowment 18 Income and expenditure reserve - Restricted Unrestricted reserves Income and expenditure reserve - Unrestricted		7,567 3,803 7,051 3,686 5,484 5,803 5,653 5,979 13,929 12,332 8,045 5,102
19 Total reserves		26,980 21,938 20,749 14,767

The financial statements on pages 30 to 59 were approved by Council on 20 May 2024 and were signed on its behalf by:

David Cole

Professor James Tooley Vice-Chancellor

Mark St John Qualter Chair of Council

32

Chief Financial Officer

Group Cash Flow Statement

Cashflow from operating activities	Group 2023 £000	Group 2022 £000	Details of the analysis of changes in net debt can be found in Note 20.
Surplus/(deficit) for the year	6,231	(2,815)
Adjustments for non-cash items
Depreciation	2,340	2,385
Release of funds spent in the year	(370)	(375)
(Increase) in current investments	(2)	(1)
Increase in impairment of tangible assets	1,352	-
Decrease/(increase) in student receivables	1,630	(2,071)
(Increase)/decrease in other debtors, prepayments, and accrued income	(620)	543
(Decrease)/increase in creditors	(1,346)	5,819
(Decrease) in other provisions	(3,186)	(1,577)
(Decrease) / increase in pension provision	(3,316)	1,389
Adjustments for investing or financial activities
Interest payable	240	171
Investment income	(246)	(145)
Loss/(gain) on disposal of fixed assets	536	(189)
(Gain)/loss in investments	(503)	621
Net cash (outflow)/inflow from operating activities	2,740	3,755
Cashflows from investing activities
Investment income	246	145
Gain/(loss) of investments	503	(621)
(Purchase) of investments	(351)	(52)
(Payments) to acquire tangible assets	(2,723)	(1,171)
Proceeds of fixed asset disposals	-	369
Net inflow/(outflow) from investing activities	(2,325)	(1,330)
Cash flows from financing activities
Interest paid	(240)	(166)
New donations – restricted and endowment	370	375
Net cash inflow from financing activities	130	209
Increase in cash and cash equivalents in the year	545	2,634
Cash and cash equivalents at the beginning of the year	12,923	10,289
Cash and cash equivalents at the end of the year	13,468	12,923

33

Statement of Principal Accounting Policies

The consolidated and University financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP 2019): Accounting for Further and Higher Education, and in accordance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, “The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland’ (FRS 102)”, and the Charities Act 2011.

The University is a public benefit entity and therefore has applied the relevant public benefit requirement of FRS 102. The financial statements are prepared on a going concern basis, under the historical cost convention as modified by the recognition of certain financial assets and liabilities measured at fair value. The accounting policies have been applied consistently over the period.

The financial statements reflect the requirements of the Accounts Direction dated 25 October 2019 issued by the Office for Students.

The functional currency of the group is UK sterling and all financial statements have been prepared to the nearest thousand pounds.

The financial statements have been prepared and give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair’ view. This departure is required following Statement of Recommended Practice – Accounting for further and higher education issued on 1 October 2018, since this statement of recommended practice is most relevant to the University, rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 January 2019.

The University has taken advantage of exemptions in FRS 102 from:

• Preparing a statement of cash flows for the University, on the basis that it is a qualifying entity and the consolidated statement of cash flows included in these financial statements includes the University’s cash flows.

• The financial instrument disclosures, required under FRS 102 paragraphs 11.39 to 11.48A and paragraphs 12.26 to 12.29, as the information is provided in the consolidated financial statement disclosures.

1. BASIS OF PREPARATION - GOING CONCERN

The Consolidated and University financial statements are prepared on a going concern basis, based on Trustees’ assessment of the financial position, operating model, and forecast cash flows. This assumes the Group and University will continue in operation for the foreseeable future including meeting its future obligations as they fall due.

The University continues to take actions to further improve governance and financial sustainability and the new Strategic plan provides the focus and direction for the further growth and success of the University.

At the balance sheet date, the Group is reporting net current liabilities of £0.8m (University: £1.6m), which is an improvement of £2.0m (University improvement of £1.7m) due to an increase in fees received in advance and a decrease in trade creditors.

The University forecasts that it will meet all its banking covenant and debt servicing requirements for the foreseeable future.

After considering significant potential risks to future plans and forecasts and the potential actions, which could include the sale of additional capital assets and a programme of cost restructuring, the Trustees are satisfied that it remains appropriate to prepare the Group and University financial statements on a going concern basis.

2. BASIS OF CONSOLIDATION

The financial statements for the Group are the consolidation of the financial statements of The University of Buckingham (The “University”), the University of Buckingham Foundation (“the Foundation”) and Medical Property Management Ltd (“MPML”). The University has not consolidated its other subsidiaries, being:

• Buckingham Business Enterprises Ltd, whose net assets and financial performance are immaterial for the purpose of giving a true and fair view.

• University of Buckingham Medical Sciences North Ltd, a dormant company whose net assets and financial performance are immaterial for the purpose of giving a true and fair view.

The close relationship between the University and the Foundation is a determining factor in the University exercising effective control. The Trustee board, including the Chair of Trustees, agree that the primary intent of the Foundation is to support the University and are guided by the University in decisions relating to the distribution of funds.

The makeup of the Foundation board is an important, but not the only, factor. Trustees are appointed by the trustee board and the University has a specified minimum number set out in the Foundation trust deed. At the financial year end the Foundation Board comprises four Trustees appointed by the University and three independent of the University. Membership of the Board fluctuates over time, but the Trustees are clear that their intent is to manage and invest endowments and

34

Statement of Principal Accounting Policies

thereby provide funds for the University in support of its students and staff. They are strongly guided by the University in where funds should be directed, such guidance contributed to the decision to consolidate the results of the Foundation.

Associated companies are accounted for using the equity method. Investment in an associate is held at cost less accumulated impairment losses.

An investment in a subsidiary company is held at cost less accumulated impairment losses in the University’s financial statements.

3. INCOME RECOGNITION

This accounting policy covers: Tuition fees and education contracts, Research grants and contracts, other income, Investment income, and Donations and endowments.

Income arising from the sale of goods or provision of services (including student accommodation and catering) is recognised and credited to the Consolidated Statement of Comprehensive Income on exchange of such goods and services, or when the terms of the contracts have been satisfied fully. These accounts are shown net of VAT, returns, discounts, and rebates as appropriate. Where services are rendered but are not complete at the end of the period, income is recognised by stage of completion/degree of provision.

Tuition fee income is stated gross of any expenditure which is not a discount. Tuition fee income is credited to the Consolidated Statement of Comprehensive Income on a pro-rata basis across the length of the course, in line with the provision of courses to

students. For any portion of the income paid for via a Future Earnings Agreement (FEA) this is not recognised in the income statement until the FEA is repaid when the student leaves the University and starts paying it back via their earnings.

Bursaries and scholarships are accounted for as expenditure and not deducted from income. These are reflected as a cost to the University, as part of its delivery of student support.

Validation involves the University reviewing the educational offerings of third-party providers of being a suitable standard for those providers’ students to receive University of Buckingham degrees. Validation fee income is recognised when the University is satisfied that its contractual services including academic due diligence have been delivered/ satisfied and the collection of the fees will occur with reasonable certainty. Validation income is shown separately within Note 3.

Investment income is credited to the Consolidated Statement of Comprehensive Income on a receivable basis.

Grant Funding

All grant funding, including research grants and capital grants from government and other sources, is recognised in income when the University is entitled to the funding and any performance-related conditions have been met. Performance conditions are defined as ‘a condition that requires the performance of a particular level of service or units of output to be delivered, with payment of, or entitlement to, the resources conditional on that performance.’

Income received in advance of

performance related conditions being met is recognised as deferred income within Creditors on the Statement of Financial Position and released to income as or when any conditions are met.

Donations and Endowments

Non-exchangeable transactions without performance related conditions are donations and endowments. Donations and endowments with donor-imposed restrictions are recognised as income when the University is entitled to the funds. Income is retained within the restricted reserve until such time that it is utilised in line with such restrictions at which point the income is released to general reserves through a reserve transfer. Donations with no restrictions are recognised as income once the University is entitled to the funds.

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

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

There are five main types of donations and endowments identified within reserves:

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

ii. Unrestricted donations – the donor

has not specified the use of the donation and so it is to be used for the general benefit of the University.

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

iv. 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.

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

35

Statement of Principal Accounting Policies

4. PENSION SCHEMES

The Aviva Group Personal Pension Plan (GPP) is a defined contribution scheme, established by contract. The employer’s contributions payable for each accounting period are accounted for as expenditure in the period in which they are incurred.

The NEST Auto Enrolment Scheme (NESTAES) is a defined contribution scheme, established by contract. The employer’s contributions payable for each accounting period are accounted for as expenditure in the period in which they are incurred.

The Universities Superannuation Scheme (USS) is a defined benefit scheme, established by trust deed with assets held in a separate fund. The employer’s contributions payable for each accounting period are accounted for as expenditure in the period in which they are incurred. The debt recovery plan put in place by USS has resulted in the suitable recovery of the funds, so there is no longer a provision in place for this. This fund is closed to new members.

The University of Buckingham Employee Benefits Plan (EBP), established as a defined contribution scheme by trust deed was closed to further contributions on 31 December 2007. However, the scheme provides a Guaranteed Minimum Pension in respect of periods of membership prior to 6 April 1997. The University accounts for any funding deficit, based on the actuary’s reports to the scheme’s Trustees on the funding of the scheme at the schemes most recent valuation date, April 2020.

5. TAXATION AND CHARITABLE STATUS

The University is a Registered Charity within the meaning of Part 3 of the Charities Act 2011. It is also a charity within the meaning of Paragraph 1 of Schedule 6 to the Finance Act 2010. The University is potentially exempt from taxation in respect of income or capital gains received within categories covered by section 472 – 488 of the Corporation Tax Act 2010 or section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied to exclusively charitable purposes.

Charitable status provides no similar exemption from VAT, but the University is defined as an Eligible Body by Schedule 9 Group 6 of the VAT Act 1994. This means that the education provided is exempt from VAT but that VAT cannot be recovered on education related purchases. Irrecoverable VAT is therefore included in both revenue and capital expenditure.

6. TANGIBLE FIXED ASSETS AND DEPRECIATION

Tangible fixed assets are stated at historic purchase cost less accumulated depreciation. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use.

Equipment and property costing more than £3,000 per item or project is capitalised. Other equipment is written off in the year of purchase. Land is not depreciated. Depreciation is provided on a straight-line basis on other assets at the following annual rates so as to write off the cost/valuation:

Buildings	2%
Equipment	Furniture, furnishings, equipment 10%-20%
	Office equipment 10%-20%
	Science laboratory equipment 20%-25%
	Motor vehicles 20%
	Computing equipment and software 25%-33%
	Specialist laboratory equipment 33%

On the grounds of materiality, the above six categories have been aggregated as equipment.

The carrying amount of fixed assets is tested for impairment in accordance with the policy described in Note 9.

36

Statement of Principal Accounting Policies

7. INTANGIBLE ASSETS

Intangible assets are stated at cost less accumulated amortisation and any impairment losses. Cost includes the original purchase price of the asset and costs attributable to bringing the asset to its working condition for intended use.

Amortisation is provided on a straight-line basis over the estimated useful life of the asset. The carrying amount of intangible assets is tested for impairment in accordance with the policy described in Note 9.

8. INVESTMENTS AND JOINT VENTURES

Investments

Investments in listed shares are remeasured to fair value at each year-end date. Gains and losses on re-measurement are recognised in surplus or loss for the period. Gains or losses on disposal are recognised within Gains/(losses) on investments within the Statement of Comprehensive Income.

Investments in subsidiaries are carried as cost less impairment.

Joint ventures

Interests in joint ventures are accounted for using the equity method, after being recognised initially at cost in the consolidated Statement of Financial Position.

Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to recognise the Group’s share of the post-acquisition profits or losses of the investee in the Group Statement of Comprehensive Income.

Dividends received or receivable from associates and joint ventures are recognised as a reduction in the carrying amount of the investment.

Where the Group’s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the other entity.

Unrealised gains on transactions between the Group and its associates and joint ventures are eliminated to the extent of the Group’s interest in these entities. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of equity-accounted investees have been changed where necessary to ensure consistency with the policies adopted by the group.

The carrying amount of equity-accounted investments is tested for impairment in accordance with the policy described below.

9. IMPAIRMENT OF ASSETS

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount might not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or

groups of assets (cash generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

10. CASH AND CASH EQUIVALENTS

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

An investment qualifies as a cash equivalent only when it has a short-term maturity of three months or less from the acquisition date.

11. PROVISIONS

Provisions are recognised in the financial statements when:

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

ii. It is probable that an outflow of economic benefit will be required to settle the obligation; and

iii. A reliable estimate can be made of the amount of the obligation.

12. RESERVES

Reserves are classified as restricted or unrestricted. There are two types of restricted reserves:

i. The first type of restricted reserve, “Endowment reserves”, include balances which, through endowment to the University, are held as a permanently restricted fund which the University must hold in perpetuity.

ii. The second type of restricted reserve, called “Restricted reserves”, includes balances where the donor has designated a specific purpose and therefore the University is restricted in the use of these funds, and unspent balances of restricted donations are treated in line with the British Universities Finance Directors Group (BUFDG) Implementation Guidance to the SORP. Reserve transfers are made between Restricted and Unrestricted reserves for the depreciation on assets that were funded by grants or donations with restrictions on those underlying assets.

13. LEASES

The Group and the University are lessees of property and whether an arrangement is or contains a lease depends on the substance of that arrangement. Leases in which substantially all the risk and rewards incidental to the ownership of an asset are transferred to the lessee by the lessor are classed as finance leases. Leases which are not finance leases are classified as operating leases. Gross rental expenditure in respect of operating leases is recognised on a straight-line basis over the term of the leases, unless another systemic basis is representative of the time pattern of the lessee’s benefit from the use of the leased asset. Rent free periods are accounted for within the Statement of Financial Position as Accruals and deferred income.

37

Statement of Principal Accounting Policies

14. FINANCIAL INSTRUMENTS

The Group has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

i) Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances and investments in commercial paper, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the Consolidated Statement of Comprehensive Income.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in the Statement of Comprehensive Income, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets are derecognised when:

• the contractual rights to the cash flows from the asset expire or are settled; or

• substantially all the risks and rewards of the ownership of the asset are transferred to another party; or

• despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

ii) Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans, and loans from fellow Group entities are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled, or expires.

iii) Offsetting

Financial assets and liabilities are offset, and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

iv) Financial guarantee contracts

A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the original or modified terms of a debt instrument. These are accounted for under Section 21 of FRS 102. Where appropriate, a provision has been made and/or a contingent liability disclosed.

38

Statement of Principal Accounting Policies

15. CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES

The preparation of financial statements requires management to make judgements and adopt estimates that affect the financial statements during the reporting period. These estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

a) Critical judgements in applying the Group and University’s accounting policies

(i) Evaluation of the Universities Superannuation Scheme as a multiemployer scheme

The University has judged that the USS meets the definition of a multi-employer scheme for the reasons set out in Note 22.

The scheme is a hybrid pension scheme, providing defined benefits for all members as well as defined contribution benefits. The assets of the scheme are held in a separate trustee administered fund. Because of the mutual nature of the scheme, the assets are not attributed to individual institutions and a scheme-wide contribution rate is set. The University is therefore exposed to actuarial risks associated with other institutions’ employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. Therefore, as required by Section 28 of FRS 102 “Employee benefits”, the University accounts for the scheme as if it were a

defined contribution scheme. However, before year end USS confirmed the scheme was no longer in deficit resulting in a reversal of the provision and future contribution rates have been reduced accordingly.

(ii) Effective control of The University of Buckingham Foundation

The University has judged that it is in a position of effective control arising from several factors, notwithstanding that the Foundation is a distinct charitable trust, therefore the results of the Foundation have been consolidated in the consolidated financial statements.

The trust deed for the Foundation declares that its primary purpose is to advance the education of the public by, in particular, supporting and promoting the education of students attending the University and by benefiting the wider academic community and purposes of the University as a whole.

The close relationship between the University and the Foundation is a determining factor in the University exercising effective control. The Trustee board, a number of whom are officers of the University, agree that the primary intent of the Foundation is to support the University and are guided by the University in decisions relating the distribution of funds.

(iii) The extent of control over a joint venture, Apollo Buckingham Health Sciences Campus Ltd (ABHSC)

The University had a 48% shareholding in ABHSC at 31 December 2023 (2022: 48%). It has judged that this should be accounted for as a joint venture and as a jointly controlled entity. ABHSC does not currently have a venture nor shareholder agreement in place but has during 2023 been jointly managed by the University and Apollo Education who held the remaining shareholding, with no single party having majority control. Heads of Terms to transfer the University’s shareholding to Apollo Education were agreed in December 2023 and transfers completed post the balance sheet date. Therefore, the University has judged it appropriate to account for its shareholding and the results of ABHSC in accordance with the equity method, consistent with prior years.

(iv) Estimate of financial guarantee contract

The University has provided a commitment to make good up to 50% of any lease payment shortfall for the Booth Hall student residences in Crewe. The lease of Booth Hall was taken out by ABHSC Limited from Manchester Metropolitan University. The full value of the guarantee is maintained in a separate Escrow bank account in favour of Manchester Metropolitan University (MMU). The Trustees of The University of Buckingham consider that due to the level of uncertainty around the full recovery of the guarantee value and the possibility the guarantee may need to be invoked to pay for dilapidations, the provision remains at an appropriate level.

b) Critical estimates in applying the Group and University’s accounting policies

In the preparation of the consolidated financial statements, management has made estimates and assumptions that affect the amounts reported for assets and liabilities as at the Statement of Financial Position date and the amounts reported for income and expenses during the year. Actual results could differ from these estimates.

(i) Depreciation and impairment of fixed assets

Assets are depreciated as set out in Note 6, Principal Accounting Policies, which are judged to be an appropriate assessment of the useful life of assets, and assuming that the University is operating as a going concern on the Buckingham campus for the foreseeable future.

The University’s material fixed assets are reviewed annually to determine whether their book value should be reduced due to their value being impaired. Estimates are made of the extent of any impairment on individual assets or related groups of assets.

(ii) Onerous lease provisions

Leases are reviewed for potential impairment on an annual basis. Where there is an indicator of potential restriction of the continued value to the group, a discounted cashflow methodology is used to compare the costs of the lease to the value being

39

Statement of Principal Accounting Policies

15. CRITICAL ACCOUNTING 16. RELATED PARTY JUDGEMENTS AND ESTIMATES TRANSACTIONS (CONTINUED)

The Group and University discloses transactions with related parties which are not wholly owned within the same Group. Where appropriate, transactions of a similar nature, such as regular payments, are aggregated unless, in the opinion of the Council, separate disclosure is necessary to understand the effect of the transactions on the consolidated financial statements.

derived. Provisions for impaired leases are created based on this methodology and appropriately disclosed in provisions notes to these financial statements.

(iii) Impairment of receivables

Student and commercial/trade receivables are reviewed at least annually to determine the extent to which a provision is required against debts that have a reasonable risk of non- payment. The risk reflects the length of time for which the debt has been unpaid and the reason for non-payment.

17. TERMINATION BENEFITS

Termination benefits of any kind relating to staff are based upon the relevant employment contracts, length of service, discretionary awards, and any statutory requirements.

The University assesses such debts on an individual student or customer basis and does not include general provisions. The University continues to seek payment of such debts until all reasonable efforts have been exhausted.

(iv) USS provision

Management, aided by external thirdparty advisers, has made estimates, as set out in Note 22 , on economic and mortality assumptions, including pay awards, as well as estimates of changes to the future membership of the scheme as the scheme is closed to new entrants to the University.

Due to the announcement that the recovery plan has been successful, and following the 2023 tri-annual actuarial valuation, the provision has been reversed.

40

Notes to the Financial Statements

1. Tuition fees and education contract

Full-time undergraduates – Home & EU Full-time undergraduates - International	Group 2023 £000 University 2023 £000 Group 2022 £000 University 2022 £000
	13,888 13,888 15,296 15,296 20,144 20,144 17,323 17,323
Part-time undergraduates Postgraduates – Home & EU Postgraduates – International	158 158 170 170 5,958 5,958 5,776 5,776 3,384 3,384 2,328 2,328
Pre and non-degree courses	1,534 1,534 235 235
	45,066 45,066 41,128 41,128

The table above includes Apprenticeship Income in 2023 of £1,282 (2022: £390k).

2. Research grants and contracts

Research charities Industry and commerce	Group 2023 £000 University 2023 £000 Group 2022 £000 University 2022 £000
	223 223 257 257 151 151 792 792
	374 374 1,049 1,049

3. Other income

Residences Catering and Bar Validation and franchise fees Other income * Government (Coronavirus Job Retention Scheme)	Group 2023 £000 University 2023 £000 Group 2022 £000 University 2022 £000
	3,650 3,650 2,932 2,932 290 290 365 365 1,899 1,899 1,181 1,181 1,205 980 973 446 - - 47 47
	7,044 6,819 5,498 4,971

*Other income comprises, in particular: registration fees, VAT partial exemption recovery, credit card commissions earned, and rental income from parties outside The University of Buckingham.

4. Investment income

Investment income Interest income	Group 2023 £000 University 2023 £000 Group 2022 £000 University 2022 £000
	67 - 127 - 179 162 18 18
	246 162 145 18

41

Notes to the Financial Statements

5. Donations and endowments

Donations with restrictions University of Buckingham Foundation donations	Group 2023 £000 University 2023 £000 Group 2022 £000 University 2022 £000
	459 459 80 80 400 183 - 390
Unrestricted donations	- - 43 43
	859 642 123 513

6. Staff costs

Salaries* Social security costs	Group 2023 £000 University 2023 £000 Group 2022 £000 University 2022 £000
	18,318 18,318 15,762 15,762 2,334 2,334 1,626 1,626
Pensions costs, excluding USS USS exceptional provisions Apprenticeship levy	1,877 1,877 1,615 1,615 (3,449) (3,449) 1,390 1,390 74 74 62 62
	19,154 19,154 20,455 20,455

6. Staff costs (continued)

Average number of full- time equivalent members of staff	Group 2023 Number University 2023 Number Group 2022 Number University 2022 Number
Academic	185 185 128 128
Research Support Manual	7 7 8 8 255 255 188 188 40 40 34 34
	487 487 358 358

Average headcount of staff Academic Research Support Manual	Group 2023 Number University 2023 Number Group 2022 Number University 2022 Number
	208 208 152 152 8 8 10 10 287 287 223 223 45 45 40 40
	548 548 425 425

*Within salaries, compensation for loss of office (including voluntary severance) of £121,430 was paid in 2023 (2022: £66,385) which relates to 12 employees (2022: 3 employees). Within these figures, no payments were made in 2023 in respect of compensation for loss of office to members of the key management personnel (2022: £nil).

42

Notes to the Financial Statements

6. Staff costs (continued)

Remuneration of the Vice-Chancellor Basic salary Taxable benefits – living accommodation * Pension contribution to USS	2023 £ Restated 2022 £
	175,138 174,708 16,425 16,023 37,830 37,650
	229,393 228,381

As a requirement of the contract of employment, the Vice-Chancellor is required to reside at the University in order to discharge their duties fully. There is considerable value to the University in the Vice-Chancellor residing on the University campus. The living accommodation taxable benefit has been calculated based on HMRC benefit in kind rules.

• The 2022 restatement is due to the fact that it was previously treated as being a nontaxable benefit.

The Vice-Chancellor’s salary is 6.96 times the median salary of staff (2022: 7.16), where the median pay is calculated on a full-time equivalent basis for the salaries paid by the University to its staff. The Vice-Chancellor’s remuneration is 8.68 times (2022: 8.87) the median total remuneration of staff where the median total remuneration is calculated on a full-time equivalent basis for the total remuneration by the University of its staff.

The Vice-Chancellor has the overall responsibility for ensuring the effective and efficient management of the University. The Vice-Chancellor is the Accountable Officer as per OfS Regulatory Advice 10 and as such, bears the responsibility of effective governance and financial stewardship of the University.

The University undertakes collaborations with other institutions around the world and its undergraduate and postgraduate students come from various parts of the world. The ViceChancellor is responsible for promoting the University’s interests at home and overseas, developing good business relationships between the University and its Collaboration Partners and other stakeholders, including Government representatives, the Office for Students, and the Charity Commission.

The Vice-Chancellor works closely with both Council and Senate bodies and leads the Executive Board of the University in all matters relating to governing and running the

operations of the University. This ensures appropriate strategic development to deliver the University’s academic and financial sustainability.

Assessment of the Vice-Chancellor’s performance is conducted on an annual basis. This is conducted by the Chair of Council, in consultation with the Nomination Performance and Remuneration Committee, and is based on achievements against the set objectives and the overall performance of the University. These include student recruitment and completion, student satisfaction, staff satisfaction and the overall financial performance.

The Nomination Performance and Remuneration Committee is responsible for ensuring the right remuneration is set for the Vice-Chancellor to reflect the strategic workload, achievement of performance targets and the general remuneration for Higher Education Heads in the United Kingdom.

Below are the numbers of staff members throughout the University whose basic pay exceeded £100k. Following the guidance issued by the OfS, amounts reimbursed by another body (such as the National Health Service, or the research councils), bonus payments, employer pension contributions, compensation for loss of office and payments under early retirement schemes are not included in these figures.

£ 100,000-104,999 110,000-114,999 120,000-124,999 125,000-129,999 130,000-134,999 135,000-139,999 140,000-144,999 150,000-154,999 170,000-174,999 175,000-179,999	2023 Number 2022 Number
	- 1 1 - 1 1 - 1 1 - - 2 2 - 1 - - 1 1 -
	7 6

43

Notes to the Financial Statements

6. Staff costs (continued)

Key management personnel

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the University.

During 2023 the Key Management Personnel at the University were considered to be the Executive Committee, which comprised of the vice Chancellor, Pro Vice Chancellor, Registrar, Dean of Academic Affairs, Chief Financial Officer, Director of Human Resources, and the Deans of each of the four faculties.

Key management personnel – total remuneration Number of key management personnel	Group University 2023 Group/University 2023
	£1.27m £1.27m 10 10
Key management personnel – average remuneration	£127k £127k

Council members

Council members are the Trustees for charitable law purposes.

A list of Council members who served at any time during the financial year and until the date these financial statements were formally approved is contained in the “Chancellor and Members of Council” section on page 25.

Due to the nature of the University’s operations and the composition of the Council, drawn from local public and private sector organisations, it is inevitable that transactions may take place with organisations in which a member of Council may have an interest. All transactions involving organisations in which a member of Council have an interest, including those identified below, are conducted at arm’s length and in accordance with the University’s Financial Regulations and usual procurement procedures. Note 23 contains details of related party transactions in the year.

No members of Council received honoraria from the University during the year (2022: Nil). The total expenses paid to or on behalf of the Council members in the year was £2.5k (2022: £nil), representing travel and subsistence incurred in attending meetings and events in their official capacity.

44

Notes to the Financial Statements

7. Other operating expenses

Other operating expenses include: External auditors’ remuneration in respect of audit services Other costs (see page 61 for further analysis)	Group 2023 £000 University 2023 £000 Group 2022 £000 University 2022 £000
	113 107 126 120 25,480 24,421 27,189 26,820
	25,593 24,528 27,315 26,940

8. Interest and other finance costs

Other operating expenses include: Bank loans Pension finance interest	Group 2023 £000 University 2023 £000 Group 2022 £000 University 2022 £000
	107 107 166 166 133 133 5 5
	240 240 171 171

The Pension finance interest relates to interest charges, incurred by The University of Buckingham, relating to the USS pension scheme.

9. Total expenditure

Further analysis of other costs Curriculum costs Medical student placement fees Staff and student travel Premises costs Residence costs General administrative expenses* Catering and merchandising costs	Group 2023 £000 University 2023 £000 Group 2022 £000 University 2022 £000
	4,971 4,842 4,306 4,306 9,170 9,170 7,435 7,435 1,297 1,297 1,455 1,455 4,423 2,905 3,476 3,247 638 700 595 595 4,389 4,915 9,599 9,459 592 592 323 323
	25,480 24,421 27,189 26,820

9. Total expenditure
Other operating expenses include: Academic and related expenditure Administration and central services Premises Residences Catering and bar Research grants and contracts	Group 2023 £000 University 2023 £000 Group 2022 £000 University 2022 £000
	24,117 24,288 25,597 25,597 14,956 15,175 18,930 18,265 5,861 4,065 3,424 3,424 1,345 1,407 1,246 1,246 579 579 301 301 469 469 828 828
	47,327 45,983 50,326 49,661

2023 Academic & related expenditure includes the £3.4m adjustment for the USS provision.

*Includes the Impairment on the Medical Property Management Ltd fixed assets of £1.4m

**General administrative expenses include the movements in provisions disclosed in Note 16, plus an increase in the bad debt provision by £0.8m (2022: £1m) and other general accruals increases.

The University has two classes of business being the provision of education and the delivery of research. The provision of residences, catering, bar plus administration and central services are ancillary activities.

Group Academic and central services expenditure does not include (primarily) £300k (2022: £300k) of rent charged by Medical Property Management Ltd to the University, as this is eliminated upon consolidation.

45

Notes to the Financial Statements

10. Intangible assets

In 2023, the Group has written off the fully amortised intangible assets held at a cost of £246k (2022: £246k cost, £nil Net Book Value).

11. Tangible assets

11. Tangible assets
Group Cost: At 1 January 2023 Additions Disposals Transfer to assets held for sale *	Freehold land £000 Freehold Buildings £000 Equipment £000 Assets held for sale £000 Assets in course of construction £000 Total £000
	4,222 35,950 20,651 - 260 61,083 - - 685 - 2,038 2,723 (701 ) (1,388) (4,217) - (8) (6,314) - (5,925) (1,746) 7,671 - -
At 31 December 2023	3,521 28,637 15,373 7,671 2,290 57,492
Depreciation: At 1 January 2023 Charge for the year Disposals Impairment ** Transfer to assets held for sale *	403 12,336 14,587 - - 27,326 - 706 1,634 - - 2 ,340 (403) (1,175) (4,200) - - (5,778) - - - 1,352 - 1,352 - (670) (1,000) 1,670 - -
At 31 December 2023	- 11,197 11,021 3,022 - 25,240
Net book amount: At 31 December 2023	3,521 17,440 4,352 4,649 2,290 32,252
At 31 December 2022	3,819 23,614 6,064 - 260 33,757

• During 2023 a review of the use of the Milton Keynes Academic Centre building was performed, concluding that the University’s School of Medicine had outgrown its ability to make effective use of the building. The Group has therefore sought a sale of the building and completed an impairment review. As the recoverable amount is estimated to be below the carrying value, an impairment charge of £1.3m has been made in these Group accounts reducing the book value to the anticipated realisable value at the balance sheet date. Additionally, the building has been reclassified to fixed assets held for sale.

** The impairment charge has only been required at a group level in 2023 as the property, owned by the subsidiary Medical Properties Management Limited, had been impaired in 2019 in the subsidiary accounts. At the point the impairment was made in the subsidiary accounts, the carrying value at a group level was deemed higher and not requiring impairment due to the operational use of the building by the University and resultant positive contribution to group performance. As the realisable value in 2019 was less than the realisable value at the 2023 balance sheet date, there is now a difference on the impaired book value between the subsidiary and Group accounts which will be realised as a gain in the subsidiary when a sale is realised.

In March 2024 a sale of the building was completed realising £4.75m proceeds, marginally higher that the impaired Group book value.

46

Notes to the Financial Statements

11. Tangible assets (continued)

12. Investments

University Cost: At 1 January 2023 Additions Disposals	Freehold land £000 Freehold Buildings £000 Equipment £000 Assets in course of construction £000 Total £000 4,222 29,036 18,915 255 52,428 - - 685 2,038 2,723 (701) (1,364) (4,228) (3) (6,296) 3,521 27,672 15,372 2,290 48,855 403 11,628 13,773 - 25,804 - 614 1,447 - 2,061 (403) (1,157) (4,199) - (5,759) - 11,085 11,021 - 22,106 3,521 16,587 4,351 2,290 26,749 3,819 17,408 5,142 255 26,624	Investments in subsidiary undertaking Shares in ABHSC (a joint venture)* Shares in CVCP Properties Plc Other listed investments Cash investment deposits: Non-current Cash investment deposits: Current	Group 2023 £000 University 2023 £000 Group 2022 £000 University 2022 £000
			- 4,186 - 3,844 - - - - 23 23 23 23 6,844 3,686 6,462 3,516 117 117 148 148 87 - 85 -
At 31 December 2023
Depreciation: At 1 January 2023 Charge for the year Disposals
			7,071 8,012 6,718 7,531
At 31 December 2023
		*Further details of the joint venture can be found in Notes 24 and 26. The University owns 0.54% of the issued ordinary share capital in CVCP Properties plc, the company that owns the offices of Universities UK
Net book amount: At 31 December 2023
At 31 December 2022

The University owns 0.54% of the issued ordinary share capital in CVCP Properties plc, the company that owns the offices of Universities UK.

The University has an immaterial dormant subsidiary, University of Buckingham Medical Sciences North Ltd., as detailed in Note 24.

Other listed investments represent equity shares, principally UK equities, managed by external independent professional fund managers. These are recognised as non-current asset investments, as they are held with a long-term intention to earn recurring income that pays for expenditure connected with Restricted and Endowment Funds. The Endowment funds held in the Group and University have earned good returns in the year as shown in Note 17.

47

Notes to the Financial Statements

13. Trade and other receivables

Escrow funds Student receivables Other trade receivables Prepayments and accrued income Amounts due from subsidiary undertakings Other debtors	Group 2023 £000 University 2023 £000 Group 2022 £000 University 2022 £000
	2,547 2,547 2,512 2,512 7,597 7,597 9,295 9,295 117 50 76 9 2,010 2,006 962 958 - 1,504 - 1,096 24 24 460 460
	12,295 13,728 13,305 14,330

The amounts due from subsidiary undertakings are trading account balances and payable on demand.

14. Creditors: amounts falling due within one year

Student fees received in advance Trade payables Social security and other taxation payable Other payables Accruals and deferred income Amounts due to subsidiary undertakings	Group 2023 £000 University 2023 £000 Group 2022 £000 University 2022 £000
	8,439 8,439 14,618 14,618 2,398 2,277 5,077 5,033 519 519 378 378 857 857 1,568 1,568 15,543 15,510 7,461 7,240 - 75 - -
	27,756 27,677 29,102 28,837

15. Creditors: amounts falling due after more than one year

The Group holds £2,547k of funds in an escrow account relating to the financial guarantee supporting the lease of the Booth Hall student accommodation by Apollo Buckingham Health Sciences Campus Limited from Manchester Metropolitan University. The University has judged that this should be treated in the financial statements as a receivable rather than cash and cash equivalents. The restricted cash is contained in a bank account held jointly in escrow with Manchester Metropolitan University and, whilst this does represent cash funds, it is freely available only to the extent released by both parties following payment of rents and lease liabilities.

At 31 December 2023 the full recoverability of the escrow account is not certain due to future rent and dilapidations liabilities. A provision of £2,000k (2022: £1,623k) (see Note 16) has therefore been made in these financial statements being the current judgement of the uncertain amount.

Bank loans due between two and five years	Group 2023 £000 University 2023 £000 Group 2022 £000 University 2022 £000
	5,000 5,000 5,000 5,000
At 31 December 2023	5,000 5,000 5,000 5,000

The £5m term loan agreement that was set up in 2021 is repayable in 5 years and bears a fixed interest rate of 2.15%. As part of the agreement, a revolving credit facility is available to the University for the duration of the loan, initially at £7m for 2 years, reduced to £5m in 2023. The revolving credit facility has not been used since the start of the facility agreement. The terms of these facilities include financial covenants which have been complied with and reported since quarterly measurement commenced at 31st December 2022.

48

Notes to the Financial Statements

16. Provisions

Group At 1 January 2023 Changes in provisions Utilised in the year	Financial guarantee contract provision £000 Crewe lease £000 VAT provision £000 Pension: USS £000 Other Provisions £000 Total £000
	1,623 5,971 808 3,316 134 11,852 377 (3,804) - (3,316) 786 (5,957) - - (545) - - (545)
At 31 December 2023	2,000 2,167 263 - 920 5,350

Financial guarantee contract provision - See note 13 Trade & Other Receivables.

Crewe campus lease

This provision relates to the Crewe campus lease between ABHSC and the University. Amended arrangements were concluded in legal agreements per note 26. Based on the University’s operational plans for Crewe it is considered prudent to maintain the above provision. The movement in provision in the year is the result of the review and update of the discounted cashflow model assumptions assuming the new agreements and operational plans.

Adjustment for VAT repayable by the MPML subsidiary

The VAT provision was initially recognised in the financial statements for the year ended 31 December 2019 and relates to the Medical Property Management Ltd (MPML) subsidiary’s overclaims of VAT in previous years. This matter has now been resolved and appropriate amounts paid during 2023, the remaining provision representing the future liability under the Capital Goods Scheme.

Universities Superannuation Scheme (‘USS’)

Figures recorded in the table above for the USS pension represent the University’s share of the scheme’s future deficit recovery contribution requirements. Following the 2023 triennial actuarial valuation of the scheme and the return to a surplus position, deficit recovery contributions ceased at the end of 2023, so a provision is no longer required. See Note 22 for details of this scheme.

Other provisions

• The Employee Benefit Plan is an in-house pension scheme that is in the process of being wound up. Provisions relate to guaranteed minimum payment equalisation and legal and professional costs relating to the wind-up.

• Following internal reviews around various compliance areas the University has identified various one-off, individually immaterial matters which are in the process of being addressed.

University At 1 January 2023 Changes in provisions Utilised in the year	Financial guarantee contract provision £000 Crewe lease £000 Pension: USS £000 Other Provisions £000 Total £000
	1,623 5,971 3,316 134 11,044 377 (3,804) (3,316) 786 (5,957) - - - - -
At 31 December 2023	2,000 2,167 - 920 5,087

49

Notes to the Financial Statements

17. Endowment reserves

2023 Capital As at 1 January 2023 Increase in market value of investments Transfers between reserves Capital Expenditure	Group Restricted Permanent £000 Group Restricted Expendable £000 Group Total £000 University Restricted Permanent £000 University Restricted Expendable £000 University Total £000
	4,940 848 5,788 3,004 22 3,026 442 53 495 273 - 273 245 (53) 192 - - - (15) - (15) - - -
As at 31 December 2023	5,612 848 6,460 3,277 22 3,299
Accumulated income As at 1 January 2023 Transfers between reserves Expenditure	1,128 135 1,263 660 - 660 - (22) (22) - (22) (22) (134) - (134) (134) - (134)
As at 31 December 2023	994 113 1,107 526 (22) 504
Total funds As at 1 January 2023	6,068 983 7,051 3,664 22 3,686
As at 31 December 2023	6,606 961 7,567 3,803 - 3,803
Analysis by Fund Type Scholarships and bursaries Grants and prizes Development funds	2,689 961 3,650 - - - 114 - 114 - - - 3,803 - 3,803 3,803 - 3,803
As at 31 December 2023	6,606 961 7,567 3,803 - 3,803

Analysis by asset type 2023 Fixed assets Investments	Group total £000 University total £000
	869 - 6,698 3,803
As at 31 December 2023	7,567 3,803

50

Notes to the Financial Statements

17. Endowment reserves (continued)

2022 Capital As at 1 January 2022 New donations Decrease in market value of investments Capital Expenditure	Group Restricted Permanent £000 Group Restricted Expendable £000 Group Total £000 University Restricted Permanent £000 University Restricted Expendable £000 University Total £000
	5,590 910 6,500 3,447 22 3,469 - - - - - - (631) (62) (693) (443) - (443) (19) - (19) - - -
As at 31 December 2022	4,940 848 5,788 3,004 22 3,026
Accumulated income As at 1 January 2022 Investment income Expenditure	1,128 135 1,263 660 - 660 - - - - - - - - - - - -
As at 31 December 2022	1,128 135 1,263 660 - 660
Total funds As at 1 January 2022	6,718 1,045 7,763 4,107 22 4,129
As at 31 December 2022	6,068 983 7,051 3,664 22 3,686
Analysis by Fund Type Scholarships and bursaries Development funds	2,104 961 3,065 - - - 3,964 22 3,986 3,664 22 3,686
As at 31 December 2022	6,068 983 7,051 3,664 22 3,686

Analysis by asset type 2022 Fixed assets Investments Other current (liabilities)	Group total £000 University total £000
	888 - 6,611 4,095 (448) (409)
As at 31 December 2022	7,051 3,686

51

Notes to the Financial Statements

17. Endowment reserves (continued)

Fund Name		Type		Purpose	Restated As at 1 January 2023 £000	Income & New Donations £000		Expenditure £000		Revaluation Gains/ (losses) £000	As at 31 December 2023 £000
Vinson		Permanent		Economics &	3,664	-		(134)		273	3,803
				Entrepreneurship
Gregory		Permanent		Scholarships &	1,661	-		(15)		101	1,747
				Bursaries
Desborough		Expendable		Scholarships &	612	-		-		35	647
				Bursaries

In the table above, the balances as at 1 January 2023 for Gregory and Desborough funds have been restated to only reflect the Endowment elements of those funds. In the prior year Financial Statements both Endowment and Restricted elements of those funds were disclosed as Endowments.

Each of the individually material endowment funds detailed above are represented by listed investments and cash investment deposits only, and each are of sufficient value and liquidity to enable them to be applied in accordance with their associated restrictions.

52

Notes to the Financial Statements

18. Restricted reserves

19. Total reserves

Reserves with restrictions are as follows:	Group £000 University £000 5,653 5,979 (9) 185 305 144 (465) (505) (169) (176) 5,484 5,803 Group £000 University £000 5,760 5,806 127 - 375 351 (689) (258) 80 80 (107) 173 5,653 5,979	As at 1 January Surplus/(deficit) for the year Release of restricted funds spent in the year New donations and re- classifications	Group 2023 £000 University 2023 £000 Group 2022 £000 University 2022 £000	Group 2023 £000 University 2023 £000 Group 2022 £000 University 2022 £000
2023 As at 1 January 2023 Transfers between reserves New donations and reclassifications Income release to cover expenditure
			20,749 14,767 23,564 17,089 6,231 7,171 (2,815) (2,322) (370) (144) (375) (375) 370 144 375 375
		As at 31 December	26,980 21,938 20,749 14,767
Total restricted reserves comprehensive income for the year
As at 31 December 2023		Restricted donations Unrestricted donations	Group 2023 £000 University 2023 £000 Group 2022 £000 University 2022 £000
2022 As at 1 January 2022 Other restricted income New donations and re-classifications Income release to cover expenditure Transfer to unrestricted reserves
			859 642 80 470 - - 43 43
			859 642 123 513
		At the date of the signing of these accounts progress has been made on the review Endowment, Restricted and Unrestricted funds, and the presentation of income and expenditure associated with endowment funds. This work is anticipated to conclude in 2024 after further verification work has been completed. 20. Consolidated net debt
Total restricted reserves comprehensive (expenditure)/ income for the year
As at 31 December 2022
		Cash and cash equivalents Borrowings: amounts falling due after more than one year		2023 £000 2022 £000
				13,468 12,923
		Unsecured loans		(5,000) (5,000)
		Net debt		(8,468) (7,923)
		Change in net debt		(545) (2,634)

	2023	2022
	£000	£000
Cash and cash equivalents	13,468	12,923
Borrowings: amounts falling due after more than one
year
Unsecured loans	(5,000)	(5,000)
Net debt	(8,468)	(7,923)
Change in net debt	(545)	(2,634)

53

Notes to the Financial Statements

21. Capital commitments

At the year end the University had £0.1m in capital commitments (2022: £1.6m).

22. Pension commitments

The University participates in the following pension schemes:

• The Aviva Group Personal Pension Plan (GPP) and the NEST Auto Enrolment Scheme (NEST-AES) are defined contribution schemes, so no commitment exists beyond the employer’s contractual contributions for each accounting period. The NESTAES is a money purchase scheme contracted into the State Second Pension (S2P), which covers a small number of staff under auto enrolment.

• The Universities Superannuation Scheme (‘USS’) provides defined benefits, and the fund in 2023 has gone from a deficit to a surplus, thus our provision at the end of 2022 is no longer required, and the full provision has been released as at December 2023 (2022: £3.3 million). Membership of the fund is closed to new staff.

• The University of Buckingham Employee Benefits Plan (‘EBP’) has defined benefits for those members with Guaranteed Minimum Pension rights and the University accounts for the deficit of EBP’s liabilities over assets.

The Universities Superannuation Scheme (‘USS’)

Basis of the scheme

This scheme is a hybrid pension scheme, providing defined benefits for all members as well as defined contribution benefits. The assets of the scheme are held in a separate trustee-administered fund. Because of the mutual nature of the scheme, the assets are not attributed to individual institutions and a scheme-wide contribution rate is set. The University is therefore exposed to actuarial risks associated with other institutions’ employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis.

As required by Section 28 of FRS 102, “Employee benefits”, the University accounts for the scheme as if it were a defined contribution scheme. As a result, the amount charged to the Statement of Income represents the contributions payable to the scheme.

FRS 102 makes the distinction between a group plan and a multi-employer scheme. A group plan consists of a collection of entities

under common control typically with a sponsoring employer. A multi-employer scheme is a scheme for entities not under common control and typically represents an industry-wide scheme such as USS.

Financial impact of the scheme valuation

A schedule of contributions based on the 31 March 2023 valuation has been agreed as:

1 January 2019 to 31 March 2019 1 April 2019 to 30 September 2019 1 October 2019 to 30 September 2021 1 October 2021 to 31 March 2022 1 April 2022 to 31 December 2023 1 January 2024 onwards	Employer Employee 18.0% 8.0% 19.5% 8.8% 21.1% 9.6% 21.4% 9.8% 21.6% 9.8% 14.5% 6.1%

Actuarial information and assumptions

Since the University cannot identify its share of USS Retirement Income Builder assets and liabilities, the following disclosures reflect those relevant for the scheme’s assets and liabilities as a whole.

The University has 70 active members as at 31 December 2023 (2022: 113 active members).

Discount rate : 5.52% at 31 December 2023.

Pay increases : Future salaries increase rate 2%, no change in staff membership.

Mortality base table

The main demographic assumption relates to the mortality assumptions. These assumptions are based on analysis of the scheme’s experience carried out as part of the 31 March 2023 actuarial valuation.

The current life expectancies on retirement at age 65 are:

Males currently aged 65 years Females currently aged 65 years Males currently aged 45 years Females currently aged 45 years	2023 2022
	24.0 years 24.4 years 25.6 years 25.9 years 26.0 years 26.3 years 27.4 years 27.7 years

54

Notes to the Financial Statements

22. Pension commitments (continued)

Cost to the University Contributions to USS Contributions to GPP Contributions to AES (Decrease)/increase in provision for USS liabilities	Group/ University 2023 £000 Group/ University 2022 £000
	921 950 1,153 656 10 9 (3,448) 1,390
Total pension cost for the year (Note 6)	(1,364) 3,005
Contributions outstanding as at 31 December To USS To GPP To AES	Group/ University 2023 £000 Group/ University 2022 £000
	111 107 110 85 2 4
Total pension outstanding as at 31 December	223 196

As of 1 January 2024 the scheme no longer has a deficit contribution rate (Apr22-Dec23 this was set at 6.2%), contributions rates for employers and members having been updated on a going forward basis.

The University of Buckingham Employee Benefits Plan (EBP)

The EBP is a defined contribution (money purchase) scheme which includes guaranteed minimum pension (GMP) benefits. The scheme started to wind up on 31 January 2008 when it operated on a contracted in basis. The scheme was contracted out on a GMP basis prior to 6 April 1997.

Those members with GMP benefits in respect of contracted out service prior to April 1997 have pensions payable from the scheme which must not be less than the GMPs specified in legislation. The GMP rights mean the scheme provides a defined benefit. On retirement the full proceeds of each member’s individual account with Royal London are used to secure benefits in terms of the rules of the scheme, via the purchase of an annuity policy.

The net assets of the fund as at 5 April 2022 (the plan’s financial year-end) were £51,000 with the value of investments designated to members valued on this date as £51,000. The assets of the plan are invested in units of various funds with Royal London.

The latest actuarial valuation of the scheme in place at the year-end was prepared as at 6 April 2020. The valuation results indicated the scheme was 75% funded with a calculated shortfall of £152,000. It was agreed that no further contributions will be made but UOB will continue to pay the cost of Pensions Protection Fund levies and the cost of any expenses other than those paid by Royal London. The next valuation for the period to April 2023 is due after the signing of these accounts and therefore will be reflected in the next Financial Statements.

Most recent actuarial valuations

A triennial actuarial valuation of the USS Retirement Income Builder was carried out at 31 March 2023 (the valuation date), using the projected unit method. This was performed for USS under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to adopt a statutory funding objective, which is to have sufficient and appropriate assets to cover their technical provisions.

At the valuation date of 31 March 2023 (the latest received to date), the value of the assets of the scheme was £73.1 billion and the value of the scheme’s technical provisions was £65.7 billion indicating a surplus of £7.4 billion and a funding ratio of 111%.

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Notes to the Financial Statements

22. Pension commitments (continued)

Most recent actuarial valuations

There are 19 members of the scheme (2022 restated – 19 members)

Funding Position Total GMP member liabilities Assets GMP accounts Contingency account Net current assets	6 April 2020 Valuation £’000 6 April 2017 Valuation £’000 6 April 2014 Valuation £’000
	153 201 164 0 113 113 7 43 39 (6) (6) (1)
Total assets	1 150 151
(Deficit) Funding ratio	(152) (51) (13) 1% 75% 92%
Discount rate: Before retirement -0.6% p.a. (10 year gilts -0.95%) After retirement -0.2% p.a. (10 year gilts -0.55%)
2023 2022 RPI inflation: 3.1% p.a. 3.1% p.a. CPI inflation: 2.3% p.a. 2.3% p.a. GMP increases in deferment: Fixed rates Fixed rates
Increases in payment GMP earned before 6/4/88 Ievel 0.0% p.a. 0.0% p.a. GMP earned on or after 6/4/88 (CPI max 3% p.a.) 2.3% p.a. 2.3% p.a.

Mortality base table

The main demographic assumption relates to the mortality assumptions. These assumptions are based on analysis of the scheme’s experience carried out as part of the 6 April 2017 actuarial valuation. The mortality assumptions used in these figures are as follows:

Current pensioner aged 65 – cohort Current pensioner aged 65 – period Future pensioner aged 65 – 20 year in future Future improvement rate	Male Female
	87.5 89.1 86.1 87.8 89.2 90.7 1.50% 1.25%

The EBP pension provision of £134k in the University relates to potential payments to encourage a reduction in Scheme membership by way of transfer values or the purchase of annuities, where possible. The provisions are required for GMP equalisation costs and legal advice, together with wind up costs. If a member, after taking financial advice, decides that he/she wishes to transfer his/her benefits to a new provider, then the employer will need to provide this enhancement. The aim has been for the benefits of the GMP members to be bought and replaced with a deferred annuity. The intention is to wind up the scheme and distribute assets to remaining members.

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Notes to the Financial Statements

23. Related party transactions

The table below shows any financial transactions not related to their employment between key staff and the University itself or anyone that the University has a relationship with :-

Individual Trustee or senior management Related party and relationship Transaction	2023
	Receipts £ Payments £ Debtors £ Creditors £
Mr Nicholas Hillman Director of HEPI The University pays an annual membership to HEPI Christopher Payne (Registrar) Student & Registrar Course fees	- 2,640 - - 1,411 - - 243

Adolfo Paolini and Debapita Bardhan-Correia, a member of Council and of senior management respectively, had family members employed by the University during 2023 and 2022. Their employment was on an arm’s length basis.

Individual Trustee or senior management Related party and relationship Transaction	2022
	Receipts £ Payments £ Debtors £ Creditors £
Professor Joe Harrison Chief Executive Officer of Milton Keynes University Hospital NHS Foundation Trust Operating costs of the University – payments made to the NHS Trust not to Prof. Harrison personally Caitlin Botha Member of the University Council Accommodation provided Mr Nicholas Hillman Director of HEPI The University pays an annual membership to HEPI and sponsored a specific report Rachael Shimmin Chief Executive Officer of Buckinghamshire Council Operating costs of the University – payments made to the Council and not to Ms Shimmin personally Mr Keith Bothongo Daughter was a student Course fees	- 1,256,199 - 2,160,411 1,435 - 1,515 - - 2,400 - 4,200 - 66,773 - - 19,000 - - -

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Notes to the Financial Statements

23. Related party transactions (continued)

Related party transactions for the year ended 31 December 2023 between Medical Property Management Ltd (MPML) and The University of Buckingham.

Transaction	2023 2022
	Receipts £ Payments £ Debtors £ Creditors £ Receipts £ Payments £ Debtors £ Creditors £
Rental payments made by the University to MPML for the former’s use of the Milton Keynes Academic Centre Settlement of inter-company balance Amounts owed by MPML for payments made by the University on behalf of MPML Amounts owed to University for Management Charges	- 225,000 75,000 - - 450,000 - - - - - - - 630,695 - - - - 356,111 - - - 93,979 - - - 64,332 - - - - -

Related party transactions for the year ended 31 December 2023 between University of Buckingham Foundation and The University of Buckingham.

Transaction	2023 2022
	Receipts £ Payments £ Debtors £ Creditors £ Receipts £ Payments £ Debtors £ Creditors £
Grants awarded by the Foundation to the University during 2023 Grants awarded by the Foundation to the University for prior years Rent payment by the University regarding student accommodation properties owned by the Foundation Balances owed by the University to the Foundation at year end for Swain’s donation	- - 312,453 - - - 414,840 - - - 1,016,286 - - - 801,572 - - 61,200 - - - 61,200 - - - - - 244,975 - - 200,823 -

Other related party transactions and disclosures are as follows:

• Apollo Buckingham Health Sciences Campus Ltd (ABHSC) was a related party of The University of Buckingham. At 31st December 2023, two of the four Board of Directors of ABHSC were University employees though the University was not considered to be the controlling entity. Since the balance sheet date, the University has transferred its share of the company (see note 26) and the two representatives of the University have resigned as Directors.

• The University provides a financial guarantee contract for 50% of the lease payments between ABHSC and Manchester Metropolitan University.

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Notes to the Financial Statements

24. Subsidiary, joint venture, and associated undertakings

Company Medical Property Management Ltd Buckingham Business Enterprise Ltd The University of Buckingham Foundation Apollo Buckingham Health Sciences Campus Ltd University of Buckingham Press Ltd University of Buckingham Medical Sciences North Ltd

Principal Activity Status Holding of ordinary shares Registered office

Property holding and management, acquisition of academic curriculum Subsidiary 100% Yeomanry House Hunter Street Buckingham MK18 1EG Used as academic support for business, enterprise, and innovation students Subsidiary 100% Yeomanry House Hunter Street Buckingham MK18 1EG Receives, holds, and distributes donations, primarily in support of the University A separately constituted unincorporated charity, under the effective control of the University Not Applicable Yeomanry House Hunter Street Buckingham MK18 1EG Provides facilities management and student support services for medical and other Allied Health students on the Crewe campus Joint Venture 48% College House The Campus Crewe Green Road Crewe Cheshire CW1 5DU Publishers Associate 25% 9 The Fairway Northwood HA6 3DZ Dormant Company Subsidiary N/A Company limited by guarantee Yeomanry House Hunter Street Buckingham MK18 1EG

Medical Property Management Ltd

This wholly owned subsidiary has been consolidated in the University financial statements.

Buckingham Business Enterprise Ltd

The results of this wholly owned subsidiary are deemed to be immaterial to the results of the University so have not been consolidated.

The University of Buckingham Foundation (the Foundation)

The University is in a position of effective control arising from several factors, notwithstanding that the Foundation is a distinct charitable trust and therefore the results of the Foundation have been consolidated in the consolidated financial statements.

The trust deed for the Foundation declares that its purpose is to advance education, in particular supporting and promoting the education of students at the University, and to promote research into academic and scientific fields of learning.

The close relationship between the University and the Foundation is a determining factor in the University exercising effective control. The Foundation’s Board of Trustees agrees that the primary intent of the Foundation is to support the University and the Trustees are guided by the University in decisions relating to the distribution of funds.

Apollo Buckingham Health Sciences Campus Ltd (ABHSC)

The University held a 48% shareholding in the company, ABHSC at the balance sheet date.

As per note 26, through the course of 2023 discussions with Apollo Education UK progressed and agreements reached on the future participation and commercial arrangements between the entities for which Heads of Terms agreements were completed in December 2023; full contracts and agreements then being completed and executed in February 2024 when the University ceased to be a shareholder in this company.

The University has no contractual commitment to cover any losses of ABHSC but continued to make its occupational damages payments reflecting an economic rental for the utilised campus during 2023.

The unaudited ABHSC financial statements for the year ended 31 March 2023 report retained losses of £3,325k from incorporation. Accordingly, the University’s shares in ABHSC at 31 December 2023 were held at a value of £nil (2022: £nil).

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Notes to the Financial Statements

24. Subsidiary, joint venture, and associated undertakings (continued)

University of Buckingham Press Ltd

The results of the University’s minority investment in this company are immaterial to the results of the University and have not been consolidated.

University of Buckingham Medical Sciences North Ltd

This subsidiary was registered on 29 January 2020. This company has remained dormant since its incorporation.

26. Post balance sheet events

1. In January 2024 a lease was entered into for a local hotel to secure further student accommodation on a twin room basis, now renamed Mount Pleasant. This will allow us to grow our on-campus student numbers and refurbish some current accommodation. The agreement extends for up to 20 years with an initial rental of £900k per annum and the University having break options at 5 yearly intervals.

2. In February 2024, the University completed mutually acceptable agreements with Apollo Education UK concerning our Crewe Campus. A connected series of agreements with Apollo Education UK Ltd, Apollo Buckingham Health Sciences Campus Ltd (ABHSC), and Manchester Metropolitan University (MMU) result in the University now having certainty on all matters in relation to Crewe. As a result:

25. Lease Commitments

• The University has a lease to utilise the Crewe campus until the end of 2026.

The original lease between ABHSC Limited and the University and for the Crewe campus has been subject to various agreements and discussions over recent years surrounding its recission or termination. Considering those agreements, the new heads of terms signed in December 2023, and the operational practices of both ABHSC and the University throughout 2023, the lease commitment reflected here at 31 December 2023 represent the current practice and the new lease arrangements. Final legal Agreements were completed in February 2024 and formalise the arrangement.

			Land and other	Other Leases		Total 2023	Land and other		Other Leases	Total 2022
			buildings	2023			buildings		2022
			2023				2022
			£000	£000		£000	£000		£000	£000
	Not later than one year		1,474	42		1,516	4,424		43	4,467
	Later than one year and		3,082		14	3,096	19,548		52	19,600
	not later than five years
	Later than five years		-		-	-	10,347		-	10,347
			4,556	56		4,612	34,319		95	34,414

Onerous lease provisions have been disclosed in Note 16.

Lease payments in the year amounted to £1,459k (2022:£1,400k) for land and buildings leases and £45k (2022:£64k) for other leases.

• The lease for Booth Hall between MMU & ABHSC has been extended until the end of 2026, resulting in the University’s rent deposit deed and terms around the joint mandate account being appropriately amended.

• The University’s shares in the joint venture company (ABHSC) have been transferred to Apollo Education UK, and the University has agreed to contribute to the cost of dilapidations works on Booth Hall to a maximum of £1.0m.

• All historic arrangements between the University and Apollo Education and ABHSC have been superseded.

It was announced in March 2024 to all stakeholders that the University has taken the strategic decision to relocate teaching activities and educational provision from the Crewe campus back to the main campus in Buckingham. The relocation will be phased over the next 3 years with full completion anticipated by the end of 2026.

The University will continue to deliver a high-quality educational experience for all our students through this transition period with all current Crewe based students.

1. As noted previously above, during 2023 a review of the use of the Milton Keynes Academic Centre building was completed, concluding that the University’s School of Medicine had outgrown its ability to make effective use of the building. The Group sought a sale of the building and took an impairment charge in the 2023 of £1.3m and reclassified the asset to fixed assets held for sale in these Group accounts. In March 2024 a sale of the building was completed realising £4.75m proceeds, marginally higher that the impaired book value. This will also crystallize the provided VAT liability.

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THE UNIVERSITY OF BUCKINGHAM For Independent Minds