Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
**Annual Report and Financial Statements Year ended 31 July 2025**
Registered Charity No. 525938
Page 1 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Contents Year ended 31 July 2025**
|**CONTENTS**|**PAGES**|
|---|---|
|Introduction from the Vice Chancellor and President of the University|3|
|Council||
|Financial Highlights|4|
|Members of the University Council|5|
|University Senior Staff|6|
|University Advisors|7|
|Report of the University Council|8|
|Corporate Governance Statement|17|
|Statement of University Council Responsibilities in Respect of the Annual Report|22|
|and the Financial Statements||
|Independent Auditor's Report to the University Council of the University|24|
|of Chester||
|Consolidated and University Statement of Comprehensive Income and|28|
|Expenditure||
|Consolidated and University Statements of Changes in Reserves|30|
|Consolidated and University Balance Sheets|32|
|Consolidated Cash Flow Statement|33|
|Statement of Accounting Policies|34|
|Notes to the Financial Statements|39|
Page 2 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Introduction by the Vice-Chancellor and the President of the University Council Year ended 31 July 2025**
## **Introduction from our Vice-Chancellor**
This year, the University significantly improved its financial performance through a rigorous Savings and Investment Programme. All Faculties and Professional Services conducted thorough reviews of their operations and implemented changes that enhanced efficiency across the institution.
In addition to cost savings, we experienced growth in tuition fee income and expanded our UK and international partnerships. Our continued investment in teaching facilities and student accommodation reflects our commitment to delivering a high-quality educational experience at Chester—an effort recognised by multiple external awards, including the Times Higher Business School of the Year.
We also prioritised upgrades to key systems in Human Resources, Registry, and the Research & Innovation Office, reducing administrative workload and embracing new technologies. Thanks to the dedication and collaboration of staff across the University, we conclude the year well-positioned to navigate future economic challenges and adapt to shifting policy landscapes.
## **Professor Eunice Simmons DL, BSc, MSc, PGCE, PhD, FRSB, FRSA, PFHEA**
## **Introduction from President of University Council**
As the new President of Council, it is good to see the 24/25 out-turn provides a stable foundation on which to build. Cost management programmes have been effective while important investment to support growth and an improved student experience have been protected.
Challenges remain and Council has strengthened its skills and experience in technology, finance, human resources, estates and brand and communications. Council is well placed to meet its evolving governance obligations and support the strong executive team as they take the University forward.
Page 3 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
**Financial Highlights Year ended 31 July 2025**
## **Result**
During the year to 31 July 2025 (year to 31 July 2024 figures in brackets) the consolidated University and subsidiary companies:
- Generated income of £154.2 million (£147.5 million)
- Generated a surplus before other gains and losses of £12.5 million (£0.1 million surplus)
- Generated a net cash inflow from operating activities of £4.2 million (£7.6 million)
- Decreased expenditure by £5.8 million (£0.9 million)
## **Financial Strength**
At 31 July 2025 the University had:
- Cash and cash equivalents of £37.7 million (£41.8 million)
- Total net assets of £91.0 million (£80.7 million)
- A net defined benefit pension liability of £ zero (£ zero)
## **Financial Investments**
During the year to 31 July 2025 the University invested £2.5 million (£5.2 million) in tangible fixed assets.
## **Staff and students**
During the academic year the University:
- Employed an average of 1,430 members of staff (1,498)
- Taught, directly or through collaborative provision and distance learning, higher education students as follows:
## **Student Headcounts - based on HESA Student Return Standard Registration Population**
|||||**2024/25**|
**2023/24**|
**Increase/**|
|---|---|---|---|---|---|---|
|||**Full-Time**|
**Other**|**Total**|
**Total**|**(Decrease)**
|
|**Home/EU**|Undergraduate|5,731|
281|**6,012**|
**6,234**|
(4%)|
||Postgraduate|450|
1,644|**2,094**|
**2,650**|
(21%)|
||Nursing and Midwifery|1,425|
97|**1,522**|
**1,745**|
(13)%|
|**International**|Undergraduate|894|
21|**915**|
**659**|
39%|
||Postgraduate|2,851|
33|**2,884**|
**2,917**|
(1%)|
||Nursing and Midwifery|91|
-|**91**|
**8**|
1,038%|
|**2024/25 Total**||11,442|
2,076|**13,518**|
**14,213**|
(5%)|
|**2023/24 Total**||11,501|
2,712|**14,213**|||
|**Increase/ (Decrease)**||(1)%|
(23)%|(5)%|||
The 2024/25 figures are for students studying between August 2024 and July 2025. The 2023/24 figures are for students studying between August 2023 and July 2024.
Page 4 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
**Members of the University Council Year ended 31 July 2025**
The members of the University Council are the University’s charity trustees under charity law. The members of the University Council who served as trustees during the year or subsequently are detailed below:
|**Members of the University Council 2024-25**|**Members of the University Council 2024-25**|(1)|(2)|
|---|---|---|---|
|**Foundation Members:**||||
|Dr Meredydd David_(President)_||•||
|The Right Reverend the Lord Bishop of Chester, Mark Tanner||||
|The VeryReverend Dr Tim Stratford||||
|Professor Eunice Simmons_(Vice-Chancellor)_||•||
|Dr David Briggs||•||
|Professor Steven Broomhead|Left 28-05-2025||•|
|Professor Charles Forsdick||||
|Mrs Jeannie France-Hayhurst||||
|Professor John French|Appointed 02-10-2024
Left 24-06-2025|||
|Professor Helen O’Sullivan||•||
|Dr Angela Seeney|||•|
|Mrs Lynette Siemers|||•|
|Mr Peter Wallach|||•|
|**Non-Foundation Members:**||||
|Mr Richard Mendez|Appointed 11-02-2025|||
|Mrs Cathy Bond_(Deputy President)_||•||
|Mr Marcus Clinton||||
|Councillor Mrs Razia Daniels||||
|Ms Karen Howell|Left 31-01-2025|||
|Mrs Sara Popplewell||•||
|Mr Stephen Dobson||•||
|Professor Angela Simpson||||
|Jane Tomkinson|Appointed 02-10-2024||•|
|Mrs Kate Nwosu-Aaron Efe|Left 31-12-2024|||
|Miss Lillian Watson_(Students’ Union President)_||•||
|**University Secretary**||||
|Ms Laura Gittins||||
During the year the main operational activities of the University Council were carried out through two committees. The current membership of these committees is shown above for each Council member
- (1) Planning & Resources Committee
- (2) Audit & Risk Management Committee
The University is also guided and governed by four further committees, namely, Mission; Nominations & Governance Review; Academic Governance & Student Outcomes and Senior Salaries.
Page 5 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
**University Senior Staff Year ended 31 July 2025**
## **University Senior Staff**
The senior staff of the University to whom day to day management is delegated are as follows:
Professor Eunice Simmons Vice-Chancellor Professor Helen O’Sullivan Provost and Deputy Vice-Chancellor Professor Paul Bissell Pro Vice-Chancellor Research and Innovation Dr Helen Galbraith Senior Pro Vice-Chancellor and Chief Operating Officer Mr Richard Waddington Chief Financial Officer Ms Laura Gittins Director of Legal Services and University Secretary Mrs Rashmi Patel Director of Human Resources Executive Director of Estates & Commercial Operations Mrs Lucy FitzHugh _– started 6[th] January 2025_ Professor Kurt Allman Executive Dean/PVC (Faculty of Science, Business & Enterprise) Professor David McGravie Executive Dean/PVC (Faculty of Arts, Humanities & Social Sciences) Professor Angela Simpson Executive Dean/PVC (Faculty of Health, Medicine & Society)
Page 6 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
**University Advisors Year ended 31 July 2025**
## **University Advisors**
The University retains a number of professional advisers. The advisors during the year were as follows:
|**University Advisor**|**Address**|
|---|---|
||NatWest Bank plc|
||2-8 Church Street|
|**Bankers**|1stFloor|
||Liverpool|
||L1 3BG|
||Grant Thornton|
|**Auditors - External**|No 1 Whitehall Riverside
Leeds|
||LS1 4BN|
||RSM|
||Landmark|
|**Auditors - Internal**|1 St Peter’s Square
Oxford Street|
||Manchester|
||M1 4PB|
||U M Association Ltd|
|**Insurance Brokers**|5 St Helen’s Place|
||London|
||EC3A 6AB|
Page 7 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
**Report of the University Council Year ended 31 July 2025**
The Members of the University Council present their Annual Report for the year ended 31 July 2025 under the Charities Act 2011 together with the audited financial statements for the year.
## **Structure, Governance and Management**
_**Type of organisation** :_
Registered Charity
_**Nature of Governing Document:**_ Trust Deed
_**How the Charity is constituted** :_ The University Council set the mission and approve the strategy and policies. Members of the University Council (Governors) are the management trustees and the day-today management is with the Senior Management. Chester Diocesan Board of Finance is the custodian trustee of the charity’s real estate property, acting as bare trustee of land.
_**Method of Appointment of Trustees** :_ Trustees are appointed in accordance with the Instrument of Government. The Charity has a Nominations and Governance Review Committee. The Charity is responsible for ensuring that appropriate training is provided. Trustees are appointed for an initial term of office not exceeding three years.
_**Governors Induction and Training** :_ The University Council have available a range of training opportunities delivered through a variety of formats. The main source of external training is through attendance on various courses organised by Advance HE. In addition, the University Council attends an “Away Day” where contributions on relevant topics are made by external and internal speakers. New members of Council are provided with an induction briefing by the Charity Secretary and an induction meeting with the President of the Council.
_**Organisation:**_ The Composition of the Council is set out on page 5. It is the Council’s responsibility to bring independent judgement to bear on issues of strategy, performance, resources and standards of conduct.
The Chief Executive (Vice-Chancellor Professor E.A. Simmons) is appointed by the Council to manage the day to day operations of the Charity and is supported by a Strategic Executive Team.
## **Scope and period of financial statements**
The financial statements have been presented for the year ended 31 July 2025.
## **Principal activities of the University**
The principal activity of the University is the provision of higher education. The University has a series of well-established programmes leading to the award of BA, BSc, BEd, BTh, BPhil, MA, MEd, MSc, MBA and PhD degrees.
The University is committed to the promotion of academic, vocational and personal development and professional training, preparing its students, in collaboration with employers and professional partners in the region and beyond, to make a positive contribution to the social and economic context in which they hope to work.
The University owns a substantial amount of property including a large number of residential properties which are maintained for the sole use of its students.
The Charity has two trading wholly owned subsidiaries, which have ceased trading from 1[st] August 2025:
- Chester Conferences Limited – provision of conference and short-course facilities
- Thornton Research Properties Limited – rental of office and industrial space at Thornton Science Park
Page 8 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Report of the University Council (continued) Year ended 31 July 2025**
## **Strategic Report**
Over the last two years the University has made significant strides in strengthening its financial position. This progress has been driven by disciplined cost control and strong international student recruitment. These efforts have helped us meet income targets and stabilise our short-term financial outlook.
We recognise that this success is the foundation for the University’s sustainable growth. Financial resilience is not only a measure of fiscal health, but also the cornerstone of our long-term strategic plan. It enables us to make confident decisions, invest in our future, and avoid the pitfalls of reactive costcutting.
The financial environment for Higher Education remains volatile with many institutions facing deficits. Against this backdrop we are pleased to confirm that our financial results for 2024–25 show an operating surplus - the first since 2018–19. This achievement is a testament to the strategic foresight, collective effort, and financial discipline demonstrated across the University.
Key contributors to this outcome include:
- a comprehensive savings and investment programme that has delivered substantial efficiencies and laid the groundwork for efficient ways of working in the years ahead,
- growth in international enrolments
- Disposal of Thornton Science Park in July 2025 which resulted in the release of £7.2m of deferred capital grants held to be released over the useful life of the site being released in year.
- provision of more enhanced data and management information across Faculties and Directorates to assist with decision making,
- enhanced tuition fee collection systems,
- strategic procurement practices that have optimised non-pay expenditure.
We are focussed on achieving a recurrent surpluses, maintaining a staff cost-to-income ratio below 60%, and developing a long-term investment plan, supported by estate rationalisation. We will also continue to comply with bank covenants and maintain a 50% contribution from academic areas where feasible.
We continue to right-size the built estate, improving asset utilisation and reduce running costs. After winning a Salix Public Sector Decarbonisation grant, implementation of this environmental cost-saving project has begun in our Wheeler Building and at Queen’s Park. With the arrival of our new Executive Director of Estates the year-round use of the estate is being reviewed and commercial opportunities sought for under-utilised areas.
We are acutely aware of the financial challenges facing many of our students and the hope is that the roll out of a new academic framework, which launches in 2025/26, will enable students to more easily “earn while they learn”.
Constraints in the budget have led to innovation in the use of digital tools. A small multidisciplinary team has focused on making more of what we currently have – using existing Microsoft technology to eliminate tens of thousands of emails, hugely improve the student experience and enable tracking of customer service. Enquiries that previously had response rates of weeks can in some cases automatically be resolved in moments.
Page 9 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
**Report of the University Council (continued) Year ended 31 July 2025**
Whilst cost-saving measures are important, revenue growth is essential to achieving financial health. There cannot be a reliance on reducing expenditure, we must also continue to grow and diversify our income streams. Students now join us from over 120 countries, studying a wide range of subjects and we look forward to developing strong alumni groups in their home countries and regions to strengthen recruitment. Further investment will be expressly focused on courses with high growth potential. We will continue to review and potentially divest from underperforming areas.
From a lower base our performance in the Graduate Outcome Survey is improving with some cohorts outperforming the national benchmarks. Employability and skills development are a shared commitment: from the expertise of academics who embed skills into the curriculum, to work placements and experiential learning, to the encouragement of professional services teams - preparing students to be Citizen Students, ready to launch their careers with purpose. We are very proud to be developing the nurses, social workers and police officers of the future for the communities we serve across the North-West region. The hard work of colleagues was apparent in the improving achievement rates of the university’s higher and degree apprenticeships, receiving a ‘Good’ rating from Ofsted. Volunteering continues to play a part, and students from the School of Law and Social Justice were finalists in the LexisNexis Legal Awards for their ‘Reach out to Survivors: Domestic Abuse’ project, one of several ‘Reach Out’ projects led by a student project manager and operated by student volunteers from the undergraduate Law Degree.
The results of the fifth Knowledge Exchange Framework (KEF) confirmed that the University is in the top 20 per cent of its peers for its work with Research Partnerships and Working with Businesses. We were in the top 40 per cent in the categories for Working with the Public and Third Sector, and CPD (Continuing Professional Development) and Graduate Start-Ups, with High Engagement, as compared against its peers. This shows that, for KEF5, the institution is performing at or above average for all seven perspectives and above average in three of the seven perspectives.
We have been awarded University of Sanctuary status for dedicated efforts to foster a welcoming culture of inclusivity and awareness. The application was a team effort, led by the Student Experience team in Student Services with support from academic and professional staff.
Encouraged by its inaugural success, the University’s second Festival of Ideas took place in July 2025. Alongside nationally renowned speakers it showcased staff and student achievements, and fruitful partnerships across the city and the region, receiving a Chester Civic Trust Award.
Autumn saw us crowned Business School of the Year at the Times Higher Education Awards and reaching the final for Outstanding Library Team of the Year. A Chester Business School student won the Tourism Management Institute Undergraduate Student Award, while the Faculty of Health, Medicine and Society reached the final of the Nursing Times Workforce Summit and Awards. A Faculty of Arts, Humanities and Social Sciences student was an award finalist in the Global Creative Graduate Showcase, the biggest annual online show of graduate creatives across the globe, shortlisted in the Product, Architecture and Interiors category by industry experts from more than 5,000 entrants.
At the 2025 Whatuni Student Choice Awards (WUSCAs) Chester retained its gold titles for best University in the UK for International and Postgraduate students, and a bronze award for Student Support. Additionally, we topped their regional rankings for best University in the North-West, Facilities, Lecturers and Teaching Quality and Student Support categories, and runner-up for Career Prospects, Students’ Union and University Halls. The StudentCrowd University Awards 2025, which are based entirely on student reviews, placed us third in the UK in the category of Personal Tutors and tenth for Job Prospects.
Page 10 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
**Report of the University Council (continued) Year ended 31 July 2025**
A capital grant from the Office for Students enabled us to improve Chester Medical School teaching resources and refurbish a 1980s building for the start of the 24/25 academic year to accommodate the School of Education. The improved School facilities have attracted not only more student enrolments but also a win with the Cheshire West Design Awards for our in-house design. The Grounds & Gardens team are adapting tree and border planting to become more drought resistant, more diverse and lower maintenance. The student-led community garden has been awarded ‘Level 5 – Outstanding' by the RHS Britain in Bloom (North-West) - one of only four in the region to receive the rating, and the only one given to a university garden. This collaborative project was a partnership between the Chaplaincy team, students, staff and regional environmental charity Faiths 4 Change. Collaboration on sustainability is embedded across Academics and Professional Services, with all members of the Senior Leadership Team on track to complete training in Carbon Literacy this year.
In August 2025, the university welcomed a new President and Chair of the University Council, John Mills. John is a former partner at PricewaterhouseCoopers and brings significant expertise from his background in accounting and as a long-standing member and Chair of Council at the University of Nottingham. His belief that everyone, regardless of background or life stage, should have the opportunity to better their lives through education, and that those who can benefit from university should have the opportunity to do so, resonates well with the University’s Foundational Values.
The Vice Chancellor would like to thank colleagues, Governors and the student body for their continued commitment and contributions. The progress made this year is evidence of the strength of our community and shared determination to thrive in these challenging times.
Page 11 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Report of the University Council (continued) Year ended 31 July 2025**
## **Financial Review**
|**inancial Review**|||
|---|---|---|
||**Year ended**|**Year ended**|
||**31 July 2025**|**31 July 2024**|
|**Financial Performance Indicator**|||
|Surplus before other gains and losses for the year|£12.5m|£0.1m|
|Margin %|(8.1%)|(0.1%)|
|Surplus for the year|£11.9m|0.4m|
|Margin %|(7.7%)|(0.3%)|
|Staff costs as % of income|54.0%|56.3%|
|Cash inflow from operating activities|£4.2m|£7.6m|
|Current assets ratio|1.4|1.3|
|Net liquidity (days)*|90|108|
*(Number of days expenditure held as cash, based on total expenditure less depreciation) Net liquidity reduction was due to £8.8m of loan repayments made in the year from cash
## **Financial Performance in 2024/25 compared to previous year:**
||**Year ended**|**Year ended**|
|---|---|---|
||**31 July 2025**|**31 July 2024**|
||**£’000**|**£’000**|
|Income|154,159|147,503|
|Expenditure|141,651|(147,406)|
|(Loss)/Gain on disposal of fixed assets|(587)|342|
||----------------------------|-----------------------------|
|Surplus|11,922|439|
- Group income has increased by £6.7m (4.5%).
- Funding body grants increased by £5.9m (45.7%). This was primarily due to the release of capital grants received for Thornton Science Park of £7.2m, which were released on disposal of the site and some reductions in other specific grants.
- Investment income decreased by £0.7m (33.3%). This is due to lower cash balances as loans of £8.4m were repaid during the year.
- Expenditure decreased by £5.8m (3.9%).
- Other Operating Expenses reduced by £3.7m (6.6%). This was due to reductions in bad debt charges and premises running costs.
- Depreciation decreased by £1.8m (25.7%). The previous financial year (2023-24) included additional depreciation on assets held at University Centre Shrewsbury which was exited during that year.
Page 12 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Report of the University Council (continued) Year ended 31 July 2025**
- The University invested £2.5m in fixed assets, the largest items of capital expenditure included:
- Renovation of existing building to create a new School of Education building
- Renovation of student residences at John Milton Hall
**Trade Union Facilities Time data for the period 1 April 2024 – 31 March 2025**
|**TABLE 1**|**Total Number of Union Officials**||**12**|
|---|---|---|---|
||**Full time equivalent employee number**||**10.79**|
|**TABLE 2**|**Percentage of time Spent on facility time**|||
|||0%|1|
|||1-50%|11|
|||51-99%|0|
|||100%|0|
|**TABLE 3**|**Percentage of pay bill spent on facility time**|||
||Total cost of facility time||£101,326.42|
||Total Pay Bill||£83,994,475.72|
||% of the total pay bill spent on facility time||0.12|
|**TABLE 4**|**Paid trade union activities**|||
||% of total paid facility time hours||0.00|
## **Risks and uncertainties**
There are several key financial risks associated with income and expenditure that the University is managing to ensure financial sustainability.
The growth in international recruitment has continued, and despite a reduction in postgraduate international students enrolling in September 2024, recruitment in the further intakes (February and May 2025) were strong. International undergraduate student numbers also continue to increase. This means that the number of international students studying at Chester rose 9% versus 2023-24. A key risk in this area is the proposed international student fee levy of 6% and its impact on the cost base of the University and on the UK as an international market for Higher Education. The University also has reliance on several key markets, and geopolitical changes in these countries is a key risk The recruitment of home undergraduate students remains a challenge, due to changes in recruitment patterns and competitor behaviour, but improved student retention has mitigated some of this risk.
The key risk on expenditure remains the continued upward pressure on staffing costs. In April 2024 there was a significant increase of 5% in employers’ contributions under the Teachers’ Pension Scheme to 28%, the full year impact included in expenditure in 2024-25. In November 2024, the Chancellor announced an increase in employers’ national insurance from April 2024 to further increase payroll costs. To mitigate these cost increases, the University embarked on a savings programme which has reduced staffing levels by 68 fte for the year. The University’s ageing estate is another growing risk, particularly with regards to maintenance expenditure and increased running costs.
The increased expenditure on running costs also reduces cash that is able to be retained in order to invest in estates and digital infrastructure. There have been several actions undertaken this year to mitigate this risk. In July 2025, Thornton Science Park was sold, and this will reduce estates running costs significantly. In addition, the University was successful in application to Salix under the Public Sector Decarbonisation Scheme to help decarbonise two sites - the Wheeler Building and Queens Park. In summer 2025, an application for planning permission was submitted to Warrington Borough Council alongside a major housebuilding company which if successful will facilitate the sale of the Padgate site. The proceeds from the sale will help support infrastructure investment.
Page 13 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Report of the University Council (continued) Year ended 31 July 2025**
Compliance with the Office for Students Condition B3 means that there remains a risk of student number controls on those subjects deemed poor quality, however work to improve these metrics is ongoing and performance against thresholds is improved.
The wider economic situation and pressure on public finances also give rise to a broader set of uncertainties including grant funding and interest rates. There have been cuts to the Strategic Priorities Fund grants in 2025-26 and although the standard home undergraduate tuition fee will rise to £9,535 in 2025 and then in line with inflation for at least two years, this has not been enough to offset rising costs.
Although a surplus position has been recorded in 2024-25 the University is expected to remain at around a break even position in 2025-26, due to rising costs. There is a lot of unpredictability in the higher education sector, and the University is in the process of adopting a new approach to risk for greater transparency and decision making. Additional members of University Council have been appointed to provide a breadth of expertise to governance to help the University address these challenges.
## **Public benefits and inclusivity**
Delivering public benefit is at the heart of what we do as a University and as a provider of higher education. Since 1839 our institutional mission has committed us to provide our students with the education, skills and support to enable them to develop as confident world citizens, and to serve and improve the global communities within which they live and work. As an institution founded by the Church of England, we have always been guided by Christian values and are justifiably proud of the open, inclusive and supportive environment that characterises our institution. We warmly welcome staff, students and visitors of all faiths and none. Our institutional strategy since 2020 has focussed on enhancing this mission-led culture of social mobility and inclusivity – not just for our students as our primary beneficiaries, but also for our staff and communities.
As a local ‘anchor’ institution, we recognise that we have a responsibility to engage proactively and meaningfully in placemaking. Our University doesn’t only serve the communities surrounding Chester; our University Centres in Birkenhead, Warrington and Reaseheath serve wider communities in both rural and urban areas. Our continuing work with regional place makers has highlighted shared commitments to achieving sustainable and inclusive growth that addresses the inequalities facing marginalised and underrepresented communities, without negatively impacting our natural environment. Our Strategic Executive Team provides intentional leadership in support of these priorities, through board membership and key partnership with our local authorities, NHS partners, charities, creative organisations and business representatives.
Further information regarding the University’s social impact on our communities, staff and students is set out in our recent Levelling Up Impact Report
The University’s Citizen Student Strategy furthers our commitment to delivering public benefit through three overarching themes:
- Enhancing social capital – opening doors for students whilst studying and beyond;
- A holistic student experience – creating a culture of opportunity and self-development;
- Focussing on lifelong learning – developing an inclusive offer for students of all ages and backgrounds.
The University’s Access & Participation Plan sets out in more detail our commitment to work with our students to build a strong sense of agency and belonging; to identify and remove barriers so that students from all backgrounds are supported to succeed; and to provide our students with the skills, experience and connections to contribute to a dynamic University community. We deliver against this commitment through a programme of financial support for students from specific underrepresented groups; through partnership working with schools and colleges to raise student aspirations and enable students to progress to higher education; and through an extensive offer of academic and pastoral support to allow students to reach their full potential whilst studying at University and beyond.
Page 14 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Report of the University Council (continued) Year ended 31 July 2025**
The University’s Research & Knowledge Exchange Strategy furthers our aim to play a fundamental role in regional placemaking and to contribute to advances in knowledge that benefit wider society and help to tackle the ‘grand challenges’ of the 21[st] century. Our strategy is intended to align with the priorities of our local authorities, NHS partners, business and the third sector. The University has established a number of Research and Knowledge Exchange Institutes (RKEIs) as part of our wider strategy, across core themes strongly aligned to public benefit including health and wellbeing; culture and society; sustainability and environment, and regional economy.
In setting our strategic objectives and planning our activities the University Executive and University Council have given careful consideration to the Charity Commission’s general guidance on public benefit. The balance of the benefits against any detriment or harm are considered during the decisionmaking processes of the University and during the activities performed. With regard to our estate strategy, property purchases and developments always comply with building regulation guidelines and restrictive covenants and there is regard for the wider environmental impacts. Our charitable aim is the provision of higher education, and the infrastructure required for this should be balanced against the environmental impact this can have.
## **Investment powers and policy**
The Charity invests funds on short-term deposit to ensure a safe and reasonable level of interest is earned and assists the Charity in achieving its objectives. The interest earned within the year amounted to £1,354k (2023: £2,050k).
The use of short-term deposits is deemed appropriate as this provides a low-risk investment with an acceptable rate of return. Short-term deposits also provide the required flexibility to access cash quickly as and when it is required.
The University’s Treasury Management Policy incorporates the Socially Responsible Investment Policy.
## **Reserves policy**
The Charity’s Trust Deed places no specific restrictions on the application of the Charity’s funds, provided that they are applied solely towards the objectives of the Charity as set forth in the Deed.
The Charity aims to provide facilities of a high standard, and this is achieved through a programme of substantial capital investment, which is financed from general reserves, the subsidiary covenant payments and from bank borrowings. It is the University Council’s policy to keep free reserves at a reasonable level in light of the organisation’s requirements.
Reserves are mainly needed to fund growth and asset acquisition and refurbish the existing property stock. In addition, short-term reserves will also be needed to fund the development of new courses as well as other initiatives. The Trustees therefore consider the ideal level of reserves at 31 July 2025 to be at least 150% of short-term creditors before taking into consideration the pension liability. This level of reserves would allow all external short-term creditors at this date to be paid in full and leave sufficient funds to invest.
The actual Consolidated Reserves for year ended 31 July 2025:
Unrestricted: £90,635k (2024: £80,279k)
Endowments: £398k (2024: £421k)
At 31 July 2025 consolidated reserves are therefore 286% of short-term creditors and deemed to be sufficient.
## **Employee consultation**
The average number of lecturing and support staff employed by the University during the year was 1,430 (2024: 1,498). An active policy of information dissemination encourages employee involvement and participation in the University development process. Employee representatives are regularly consulted on a variety of issues affecting their own and the University’s interests.
Page 15 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Report of the University Council (continued) Year ended 31 July 2025**
## **Auditor**
The members of the University Council who held office at the date of approval of this report confirm that;
- so far as they are each aware, there is no relevant audit information of which the University’s auditor is unaware; and
- each member has taken all the steps that he or she ought to have taken to be aware of any relevant audit information and to establish that the University’s auditor is aware of that information.
## **Going concern**
The University recorded a surplus before other gains of losses of £12.5m, and although £7.2m related to the accelerated release of capital grants on the disposal of Thornton Science Park, this was a muchimproved financial result compared to the previous financial year (£0.1m surplus before other gains and losses). The opportunity was taken during the year to repay £8.8m of debt, reducing borrowing from £20.5m to £11.7m. This simplified debt administration by moving to a single lender, and reduced risks around covenant compliance. The University reported operating cash inflow of £4.2m for the year ended 31 July 2025 (2024: £7.6m inflow) and in assessing the going concern of the University, detailed cash flow forecasts were prepared covering a period of over 12 months from date of signing. These cash flows were prepared on the basis of severe but plausible downsides impacting the University’s operations over that period. These indicate that the University remains a going concern, and the Revolving Credit Facility agreed during the year with Santander giving the University access to an additional £13.3m facility with the lender.
However, the University remains under financial pressure due to cost increases (particularly staff costs), and as such, continues to develop and implement cost reduction plans, including reduction and rationalisation of the estate including the sale of the Padgate site to a major housebuilder.
On this basis, the University Council is satisfied that, despite the current economic and political uncertainty, the University has adequate resources to continue in operational existence for the foreseeable future and for at least 12 months from the date of signature of these financial statements. Further details regarding the basis of preparation are given in the Statement of Accounting Policies.
## **Conclusion**
The University has had a much better year than previously. However, reductions in public funding and upward pressure on costs, means that we continue to operate in a challenging environment. The University Council believe that the University is well placed to manage these challenges due to careful cost management and the strategic refocusing of the University’s portfolio across all its faculties and sites which should ensure the University can continue to recruit well in the future.
**President of the Council** : Mr John Mills
**Deputy President of the Council** : Mrs Cathy Bond
**Date:** 11/12/2025
Page 16 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Corporate Governance Statement Year ended 31 July 2025**
## **Corporate Governance Statement**
The University is committed to exhibiting best practice in all aspects of governance. This summary describes the manner in which the University complies with Committee of University Chairs (CUC) Higher Education Code of Governance (2020). The purpose of this summary is to help the reader of the financial statements understand how the principles have been applied.
In the opinion of the Members of the University Council, the University has applied the principles of the Higher Education Code of Governance (2020) in so far as they apply to the Higher Education Sector, and it has applied these throughout the year ended 31 July 2025 and up to the date of these accounts.
## **The University Council**
The composition of the University Council is set out on page 5. It is the University Council’s responsibility to bring independent judgement to bear on issues of strategy, performance, resources and standards of conduct.
The University Council usually meets four times a year and has several committees, including the Academic Governance and Student Outcomes Committee, Audit and Risk Management Committee, Mission Committee, Nominations and Governance Review Committee, Planning and Resources Committee, and the Senior Salaries (Remuneration) Committee.
The University governance structure facilitates a transparent and effective system of governance, and information on structure and responsibilities of University Council, together with minutes of meetings can be found at https://www1.chester.ac.uk/about-university/university-council
## **Planning and Resources Committee**
The Planning and Resources Committee meet six times a year and advises the Council on the University’s corporate strategy. The Committee scrutinises proposed major developments, policy initiatives and all strategic academic and non-academic plans, including financial, physical and human resources, risk and value for money. The Committee also considers in detail the annual budget and financial forecasts and monitors performance, together with reviewing the implementation of policies relating to employment and the conduct and performance of staff. It makes recommendations, as appropriate, to the Council.
A University Health and Safety Committee reports to the Planning & Resources Committee. It meets at least three times a year, reviews existing safety policies, considers the need for new safety procedures, reviews the implementation of approved safety procedures, provides advice on health and safety to staff and students, receives notification of all accidents, reviews incidents and related statistics, receives reports from the health and safety manager, and promotes co-operation across the University to secure sound health, and safety. The Health and Safety Committee’s annual report is presented to the Planning & Resources Committee.
## **Nominations and Governance Review Committee**
Any new appointments to the University Council are made in accordance with the Instrument of Government. The University Council has a Nominations and Governance Review Committee which considers the skills mix and general requirements for membership of the University Council, having due regard to equality and diversity considerations. The Committee also oversees a full and robust review of the effectiveness of governance at least every three years and monitors the implementation of actions arising from such governance reviews. University Council is responsible for ensuring that appropriate training is provided. Members of the Council are appointed for an initial term of office not exceeding three years and are eligible for re-appointment for one further term of three years.
Page 17 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
**Corporate Governance Statement (continued) Year ended 31 July 2025**
## **Senior Salaries Remuneration Committee**
The Senior Salaries Committee considers and makes recommendations to the University Council on the remuneration and conditions of service of:
- the Vice-Chancellor
- the Deputy Vice-Chancellor; and (following recommendations from the Vice-Chancellor) on other senior post holders as determined from time to time by the University Council.
The University Council shall take the Senior Salaries Committee’s recommendations into account in considering and determining the remuneration and conditions of service of the holders of the senior posts.
The Committee also determines grievances against the Vice-Chancellor and similar matters which relate to remuneration and conditions of service.
In discharging its terms of reference, the Senior Salaries Committee will:
1. consider comparative information on the emoluments of employees within its remit when determining salaries, benefits and terms and conditions;
2. ensure that all arrangements are clearly recorded;
3. report on its decisions and operation at least annually to the University Council. Such a report should not normally be withheld from any members of the University Council and will record, inter alia:
- a) the resulting overall levels of increase in the aggregate salary costs of the Vice-Chancellor, the Deputy Vice-Chancellor and the holders of other posts the remuneration of which is determined by the Committee; and
- b) the agreed base salary for the Vice-Chancellor
4. The committee will also review for information details of “other senior staff pay” in accordance with the OfS accounts direction.
Basis for the remuneration package of the Vice-Chancellor
In considering the Vice-Chancellor’s pay the committee reviews progress in respect of the ViceChancellor’s objectives reviewing performance in 2023/24 and projecting forward to 2024/25. Progress against objectives had been reviewed with input from all Chairs of Council Committees. The Committee also paid due regard to selected data extracts from the CUC Survey of Remuneration of ViceChancellors and Principals 2023 and from the Universities and Colleges Employers Association (UCEA) Survey of Senior Staff Remuneration 2023 in respect of Heads of Institutions.
Page 18 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Corporate Governance Statement (continued) Year ended 31 July 2025**
## **Mission Committee**
The Mission Committee meets at least three times a year and its role is to consider and advise the Council on arrangements at the University relating to the following:
- a) To support the Christian ethos of the University, promote religion and belief understanding and interfaith relationships, and uphold the community values of the University as defined by the University Council and monitoring its impact on University life
- b) To promote compassion and respect
- c) Equality, diversity and inclusion
- d) Wellbeing of staff and students
- e) Ethics and ethical standards
- f) Sustainability
- g) Other elements of corporate social responsibility
The Committee also considers the civic value benefits delivered to wider society, regionally, nationally and globally.
## **Academic Governance and Student Outcomes Committee**
The Academic Governance and Student Outcomes Committee considers and monitors the fitness for purpose of the curriculum, the academic portfolio and University policies and practices for their delivery, including the following:
- a) Learning and teaching
- b) Defining and maintaining academic standards
- c) Programme development and review
- d) Student support
- e) Student experience
- f) Quality management and enhancement
- g) Internationalisation and Global Impact
- h) Apprenticeships
- i) Placements
The Committee also monitors the University’s research, innovation and knowledge exchange strategies and performance, including reviewing outcomes of the Research Excellence Framework, Knowledge Excellence Framework or similar national or international assessment and ranking exercises and other key performance indicators relating to research, innovation and knowledge exchange.
## **Audit and Risk Management Committee**
The Audit and Risk Management Committee meet at least four times a year. The Audit and Risk Management Committee considers both internal and external audit reports and recommendations together with management’s response and it reviews the annual financial statements. In order to allow sufficient independence, members of the Audit and Risk Management Committee do not sit on Council Committees where staffing or financial matters are decided. For further independence there are external professional members who are not Members of the University Council. The Independent Auditor responsible for Internal Audit attends each meeting of the Audit and Risk Management Committee. The Audit and Risk Management Committee meet annually with the Internal and External Auditors without Officers of the University being present.
Page 19 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Corporate Governance Statement (continued) Year ended 31 July 2025**
The Committee prepares an Annual Report for each financial year, addressed to the University Council and the Vice-Chancellor. The Annual Report includes the Committee’s opinion on the extent to which the University Council may rely on the internal control system and the arrangements for the following:
- a) risk management, control and governance (the risk management element includes the accuracy of the statements of internal control included with the annual statement of accounts);
- b) sustainability, economy, efficiency and effectiveness (value for money);
- c) management and quality assurance of data submitted to HESA, the SLC, to Office for Students and other funding and regulatory bodies.
The Annual Report also refers to the work of the Audit & Risk Management Committee undertaken during the year, the work of the Internal Auditors, the work of the External Auditors, and any other audit work undertaken. The Annual Report will also express the Committee’s overall opinion on the effectiveness of the University in relation to those areas highlighted in the bullet points above. The Committee continues to adopt the CUC HE Audit Code of Practice 2020
## **Statement of Internal Control**
The University Council is responsible for the University’s system of internal control and for reviewing its effectiveness. Such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss.
During the course of the year, internal audit work was undertaken by RSM. RSM’s annual report for the year 2024/25 concluded a positive overall opinion and confirmed that the University had “an adequate and effective framework for risk management, governance, internal control and economy, efficiency and effectiveness. However, our work has identified further enhancements to the framework for risk management, governance, internal control and economy, efficiency and effectiveness to ensure that it remains adequate and effective”.
The University Council has reviewed the key risks to which the University is exposed, together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The University Council is of the view that there is an ongoing process for identifying, evaluating and managing the University’s significant risks, that has been in place for the year ended 31 July 2025 and up to the date of approval of the annual report and financial statements, that it is regularly reviewed by the University Council and that it accords with Higher Education Code of Governance.
The Strategic Executive Team receives reports setting out key performance and risk indicators and considers possible control issues brought to their attention by early warning mechanisms which are embedded within the operational units and reinforced by risk awareness training. The Strategic Executive Team also receive regular reports from the internal auditor and from the Health and Safety Committee which include recommendations for improvement. The Audit and Risk Management Committee’s role in this area is confined to a high-level review of the arrangements for internal financial control. The Council’s agenda includes a regular item for consideration of risk and control and receives reports thereon from the Vice-Chancellor and the Audit and Risk Management Committee. The emphasis is on obtaining the relevant degree of assurance and not merely reporting by exception. At its Michaelmas meeting, the Council carried out the annual assessment for the year ended 31 July 2025 by considering documentation from the Vice-Chancellor and the Audit and Risk Management Committee and took account of events since 31 July 2025.
Page 20 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
**Corporate Governance Statement (continued)**
## **Year ended 31 July 2025**
## **Regularity and propriety in the use of public funding**
It is the view of University Council that the internal control environment described above, together with all the corporate governance arrangements ensure regularity and propriety in the use of public funding.
**President of the Council**
Mr John Mills
Parkgate Road, CHESTER, CH1 4BJ
11[th] December 2025
**Deputy President of the Council** Mrs Cathy Bond
Page 21 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Statement of University Council Responsibilities in Respect of the Annual Report and the Financial Statements Year ended 31 July 2025**
The University Council is responsible for preparing the Annual Report and the financial statements in accordance with the requirements of the Office for Students’ Terms and Conditions of Funding for Higher Education Institutions and Research England’s Terms and Conditions of Research England Grant and applicable law and regulations.
It is required to prepare the Group and parent University financial statements in accordance with UK accounting standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. The Terms and Conditions of Funding further require the financial statements to be prepared in accordance with the requirements of the Accounts Direction dated 25 October 2019 issued by the Office for Students (‘the Accounts Direction’) and the 2019 Statement of Recommended Practice – Accounting for Further and Higher Education.
The University Council is required to prepare financial statements which give a true and fair view of the state of affairs of the Group and of the parent University and of their income and expenditure, gains and losses and changes in reserves, and of the Group’s cash flows for that period. In preparing each of the Group and parent University financial statements, the University Council is required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK accounting standards and the 2019 Statement of Recommended Practice– Accounting for Further and Higher Education have been followed, subject to any material departures disclosed and explained in the financial statements;
- state whether the group and the university financial statements comply with the trust deed and rules, subject to any material departures disclosed and explained in the financial statements;
- assess the Group and parent University’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
- use the going concern basis of accounting unless it either intends to liquidate the Group or the parent University or to cease operations, or has no realistic alternative but to do so.
The University Council, the members of which are the Trustees of the University for the purposes of charity law, are required to act in accordance with the trust deed and the rules of the charity, within the framework of trust law.
The University Council is responsible for keeping adequate accounting records that are sufficient to show and explain the parent University’s transactions and disclose with reasonable accuracy at any time the financial position of the parent University and to enable the University Council to ensure that, where any statements of accounts are prepared by it under section 132(1) of the Charities Act 2011, those statements of accounts comply with the requirements of regulations under that provision. It is responsible for such internal control as it determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and has general responsibility for taking such steps as are reasonably open to it to safeguard the assets of the group and to prevent and detect fraud and other irregularities.
Page 22 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Statement of University Council Responsibilities in Respect of the Annual Report and the Financial Statements (continued) Year ended 31 July 2025**
The University Council is also responsible for ensuring that:
- funds from whatever source administered by the Group or the University for specific purposes have been properly applied to those purposes and managed in accordance with relevant legislation;
- income has been applied in accordance with the University's Articles of Government and funds provided by the Office for Students, UK Research and Innovation (including Research England), the Education and Skills Funding Agency and the Department for Education have been applied in accordance with the relevant terms and conditions attached to them;
- ensuring that there are appropriate financial and management controls in place to safeguard public funds and funds from other sources; and
- securing the economical, efficient and effective management of the University’s resources and expenditure.
The University Council is responsible for the maintenance and integrity of the corporate and financial information included on the University’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Page 23 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
**Independent Auditor’s Report to the University Council of the University of Chester (continued) Year ended 31 July 2025**
## **Opinion**
We have audited the financial statements of the University of Chester (the ‘parent University’) and its subsidiaries (the ‘group’) for the year ended 31 July 2025, which comprise Consolidated and University Statement of Comprehensive Income and Expenditure, Consolidated and University Statements of Changes in Reserves, Consolidated and University Balance Sheets, Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the group's and the parent University’s affairs as at 31 July 2025 and of the group's and the parent University's income and expenditure, gains and losses, changes in reserves and of the group's cash flows for the year then ended; and
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice.
## **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 and the parent University in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
We are responsible for concluding on the appropriateness of the Council’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group’s and the parent University’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the group or the parent University to cease to continue as a going concern.
In our evaluation of the Council’s conclusions, we considered the inherent risks associated with the group’s and the parent University’s business model including effects arising from macro-economic uncertainties such as inflation, and pay increases through national minimum wage and employer NIC’s increases, as well as sector difficulties such as historic stagnant tuition fee’s for home undergraduate students, we assessed and challenged the reasonableness of estimates made by the Council and the related disclosures and analysed how those risks might affect the group’s and the parent University’s financial resources or ability to continue operations over the going concern period.
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.
Page 24 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
**Independent Auditor’s Report to the University Council of the University of Chester (continued) Year ended 31 July 2025**
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s and the parent 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 auditor’s report thereon. The Council is 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements 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.
**Opinion on other matters prescribed by the Office for Students (‘OfS’) Accounts direction (issued October 2019) (the ‘OfS Accounts direction’)**
In our opinion, in all material respects:
- funds from whatever source administered by the parent University for specific purposes have been properly applied to those purposes and managed in accordance with the relevant legislation;
- funds provided by the OfS, UK Research and Innovation (including Research England) and the Department for Education have been applied in accordance with the OfS Terms and Conditions of funding for higher education institutions (issued July 2024), the funding agreement with UK Research and Innovation (including Research England) and the Department for Education, and any other terms and conditions attached to them; and
- the requirements of the OfS Accounts direction have been met.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters where the OfS Accounts direction requires us to report to you where:
- the parent University’s grant and fee income, as disclosed in the note to the accounts, has been materially misstated; or
- the parent University’s expenditure on access and participation activities for the financial year has been materially misstated.
Page 25 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Independent Auditor’s Report to the University Council of the University of Chester (continued) Year ended 31 July 2025**
## **Responsibilities of Council**
As explained more fully in the Statement of responsibilities of the Council set out on page 22, the Council is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the 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’s and the parent University’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Council either intends to liquidate the group or the parent University or to cease operations, or has no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
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 auditor’s 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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
- We obtained an understanding of the legal and regulatory frameworks that are applicable to the University and the sector in which it operates. We determined that the following laws and regulations were most significant: The Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102), FEHE SORP 2019, OfS Accounts Direction (October 2019), Relevant OfS regulatory notices and advices and the Charities Act 2011;
- We understood how the University is complying with these legal and regulatory frameworks by making inquiries of management, internal audit, and those charged with governance. We enquired of management and those charged with governance whether there were any instances of noncompliance with laws and regulations, or whether they had any knowledge of actual or suspected fraud. We corroborated the results of our enquiries through our review of board minutes and papers provided to the Audit Committee, and through our legal and professional expenses review;
- To assess the potential risks of material misstatement, including how a fraud might occur, we obtained an understanding of the university's operations, including its sources of income, expenditure, expected financial statement disclosures and risks that may result in a risk of material misstatement, and obtained an understanding of the university’s control environment, including adequacy of procedures for authorising transactions.
- We assessed the susceptibility of the University’s financial statements to material misstatement, including how fraud might occur. Audit procedures performed include:
- Evaluating the processes and controls established to address the risks related to fraud and irregularities
- Testing journal entries posted by senior management personnel, or journals around large or unusual transactions
- Challenging assumptions and judgements made by management in relation to the calculation of the defined benefit pension liability, and the restriction of the gross asset to nil.
- Completion of audit procedures to conclude on the compliance of financial statement disclosures with applicable financial reporting requirements.
Page 26 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Independent Auditor’s Report to the University Council of the University of Chester (continued) Year ended 31 July 2025**
- These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it;
- The engagement leader’s assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team’s knowledge of the industry in which the client operates in and understanding of, and practical experience through training and participation with audit engagements of a similar nature;
- We communicated relevant laws and regulations and potential fraud risks to all engagement team members, and remained alert to an indications of fraud or noncompliance with laws and regulations throughout the audit.
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.
## **Use of our report**
This report is made solely to the University's Council, as a body, in accordance with paragraph 11.2 of the University's articles of government. Our audit work has been undertaken so that we might state to the University's Council those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the University and the University's Council as a body, for our audit work, for this report, or for the opinions we have formed.
## **Grant Thornton LLP, Statutory Auditor, Chartered Accountants**
Leeds
11[th] December 2025
Page 27 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Consolidated and University Statement of Comprehensive Income and Expenditure Year ended 31 July 2025**
|**Notes**
**Income**
Tuition fees and education contracts
1
Funding body grants
2
Research grants and contracts
4
Other income
5
Investment income
6
**Total income before endowments**
**and donations**
Donations and endowments
7
**Total Income**
**Expenditure**
Staff costs
8
Other operating expenses
11
Depreciation
12
Interest and other finance costs
10
**Total Expenditure**
Surplus/(deficit) before other gains
or losses|**Year ended 31 July 2025**
Year ended 31 July 2024
**Consolidated**
**University**
Consolidated
University
**£’000**
**£’000**
£’000
£’000
**115,699**
**115,699**
115,207
115,207
**18,969**
**18,969**
13,020
13,020
**2,469**
**2,469**
2,204
2,204
**15,630**
**15,415**
14,968
14,691
**1,392**
**1,391**
2,085
2,081|
|---|---|
||**154,159**
**153,944**
147,484
147,203
**1**
**1**
19
19|
||**154,160**
**153,944**
147,503
147,222|
||**83,194**
**83,194**
83,080
83,080
**52,095**
**51,840**
55,764
55,652
**5,236**
**5,236**
7,049
7,049
**1,126**
**1,126**
1,513
1,513|
||**141,651**
**141,396**
147,406
147,294|
||**12,509**
**12,548**
97
(72)|
Page 28 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Consolidated and University Statement of Comprehensive Income and Expenditure (continued) Year ended 31 July 2025**
|**Notes**
(Loss)/gains on disposal of fixed
assets
12
**Surplus for the year**
Actuarial gain in respect of pension
schemes
22
Restriction of Pension Surplus
22
**Total comprehensive income for**
**the year**
Represented by
Endowment comprehensive income
for the year
Unrestricted comprehensive income
for the year
Attributable to the University
**Surplus for the year attributable**
**to:**
University|**Year ended 31 July 2025**
Year ended 31 July 2024
**Consolidated**
**University**
Consolidated
University
**£’000**
**£’000**
£’000
£’000
**(587)**
**(587)**
342
342
**11,922**
**11,961**
439
270|
|---|---|
||**56,758**
**56,758**
32,075
32,075
**(58,347)**
**(58,347)**
(33,336)
(33,336)|
||**10,333**
**10,372**
(822)
(991)|
||**(23)**
**(23)**
(14)
(14)
**10,356**
**10,385**
(808)
(977)|
||**10,333**
**10,372**
(822)
(991)|
||**11,922**
**11,961 **
439
270|
All items of income and expenditure relate to continuing activities
Page 29 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Consolidated and University Statement of changes in Reserves Year ended 31 July 2025**
|**Consolidated**
**Balance at 1 August 2023**
Surplus from the statement of comprehensive
income and expenditure
Other comprehensive income
Release of restricted funds spent in year
**Total comprehensive income for the year**
**Balance at 31 July 2024**
Surplus from the statement of comprehensive
income and expenditure
Other comprehensive income
Release of restricted funds spent in year
**Total comprehensive income for the year**
**Balance at 31 July 2025**|**Income and Expenditure**
**Account**
Endowment
Unrestricted
£’000
£’000
**435**
**81,087**
19
420
(1,261)
(33)
33
**(14)**
**(808)**
**421**
**80,279**
1
11,921
(1,589)
(24)
24
(23)
10,356
**398**
**90,635**|**Total**
£’000
**81,522**
439
(1,261)
-|
|---|---|---|
|||**(822)**|
|||**80,700**
11,922
(1,589)
-|
|||10,333|
|||**91,033**|
Page 30 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Consolidated and University Statement of changes in Reserves (continued) Year ended 31 July 2025**
|**University**
**Balance at 1 August 2023**
Surplus from the statement of comprehensive
income and expenditure
Other comprehensive income
Release of restricted funds spent in year
**Total comprehensive income for the year**
**Balance at 1 August 2024**
Surplus from the statement of comprehensive
income and expenditure
Other comprehensive income
Release of restricted funds spent in year
**Total comprehensive income for the year**
**Balance at 31 July 2025**|**Income and Expenditure**
**Account**
Endowment
Unrestricted
£’000
£’000
**435**
**80,570**
19
251
-
(1,261)
(33)
33
(14)
(977)
**421**
**79,593**
1
11,960
(1,589)
(24)
24
(23)
10,935
**398**
**89,988**|**Total**
£’000
**81,005**
270
(1,261)
-|
|---|---|---|
|||(991)|
|||**80,014**
11,961
(1,589)
-|
|||10,372|
|||**90,386**|
Page 31 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Consolidated and University Balance Sheets Year ended 31 July 2025**
|**Notes**
**Non-Current assets**
Fixed assets
12
**Current assets**
Stock
13
Trade and other receivables
14
Cash and cash equivalents
19
Less: Creditors: amounts
falling due within one year
15
**Net current assets**
**Total assets less current**
**liabilities**
Creditors: amounts falling due
after more than one year
16
**Provisions**
Provisions for liabilities
17
**Net assets**
**Restricted Reserves**
Income and expenditure
reserve - endowment reserve
18
**Unrestricted Reserves**
Income and expenditure
reserve – unrestricted
**Total Reserves**|**As at 31 July 2025**
**Consolidated**
**University**
**£’000**
**£’000**
**106,190**
**106,190**
**46**
**46**
**7,041**
**7,101**
**37,695**
**37,208**
**44,782**
**44,355**
**(31,820)**
**(32,040)**
**12,962**
**12,315**
**119,152**
**118,505**
**(27,845)**
**(27,845)**
**(274)**
**(274)**
**91,033**
**90,386**
**398**
**398**
**90,635**
**89,988**
**91,033**
**90,386**|As at 31 July 2024
Consolidated
University
£’000
£’000
111,644
111,644
51
51
11,741
11,391
41,758
41,238
53,550
52,680
(41,746)
(41,562)
11,804
11,118
123,448
122,762
(42,435)
(42,435)
(313)
(313)
80,700
80,014
421
421
80,279
79,593
80,700
80,014|As at 31 July 2024
Consolidated
University
£’000
£’000
111,644
111,644
51
51
11,741
11,391
41,758
41,238
53,550
52,680
(41,746)
(41,562)
11,804
11,118
123,448
122,762
(42,435)
(42,435)
(313)
(313)
80,700
80,014
421
421
80,279
79,593
80,700
80,014|
|---|---|---|---|
||||52,680
(41,562)|
||||11,118|
||||122,762
(42,435)
(313)|
||||80,014|
||||421
79,593|
||||80,014|
The financial statements were approved by the University Council on 9[th] December 2025 and were signed on its behalf on 11[th] December 2025 by:
## **Professor E.A. Simmons, Vice-Chancellor**
## **Mr J. Mills, President of the Council**
Page 32 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Consolidated Cash Flow Statement**
## **Year ended 31 July 2025**
|**Notes**
**Cash flow from operating activities**
Surplus for the year
**Adjustment for non-cash items**
Depreciation
12
Decrease in stock
13
Decrease in debtors
14
(Decrease)/Increase in creditors
16
Decrease in pension provision
22
**Adjustment for investing or financing activities**
Investment income
6
Interest payable
10
Endowment income
18
Loss/(Gain) on sale of fixed assets
12
Capital grant income
2
**Net cash inflow from operating activities**
**Cash flows from investing activities**
Proceeds from sale of fixed assets
12
Capital grants receipts
Withdrawal of deposits
Investment income
6
Payments made to acquire fixed assets
12
**Cash flows from financing activities**
Interest paid
10
Endowment cash received
18
Repayments of amounts borrowed
16
**(Decrease)/Increase in cash and cash equivalents in the**
**year**
Cash and cash equivalents at beginning of the year
19
Cash and cash equivalents at end of the year
19|**Year ended**
**31 July 2025**
**£’000**
**11,922**
**5,236**
**5**
**4,700**
**(7,981)**
**(1,628)**
**(1,354)**
**1,111**
**(1)**
**587**
**(8,367)**
**4,230**
**2,130**
**643**
**-**
**1,354**
**(2,499)**
**1,628**
**(1,111)**
**1**
**(8,811)**
**(9,921)**
**(4,063)**
**41,758**
**37,695**|Year ended
31 July 2024
£’000
439
7,049
17
858
2,756
(1,288)
(2,054)
1,513
(19)
(342)
(1,325)|
|---|---|---|
|||7,604|
|||1,033
2,491
10,000
2,054
(5,218)|
|||10,360|
|||(1,513)
19
(2,099)|
|||(3,593)|
|||14,371|
|||27,387
41,758|
Page 33 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
**Statement of Accounting Policies Year ended 31 July 2025**
The following accounting policies have been applied consistently in the current and preceding years dealing with items which are considered material in relation to the University’s financial statements.
## **Basis of preparation**
The financial statements have been prepared in accordance with the Statement of Recommended Practice Accounting for Further and Higher Education 2019 (SORP) and in accordance with Financial Reporting Standards (FRS 102). These financial statements are prepared in accordance with the historical cost convention. They have also been prepared in accordance with the ‘carried forward’ powers and duties of previous legislation (Further and Higher Education Act 1992 and the Higher Education Act 2004) and the new powers of the Higher Education and Research Act 2017 during the transition period to 31 July 2019, the Accounts Direction issued by the Office for Students (OfS), the Terms and conditions of funding for higher education institutions issued by the Office for Students and the Terms and conditions of Research England Grant.
The University is a public benefit entity and therefore has applied the relevant public benefit requirement of the applicable UK laws and accounting standards.
## **Going concern**
The Group and parent University’s activities, together with the factors likely to affect its future development, performance and position, are set out in the Strategic Report which forms part of the Report of the University Council. The Report of the University Council also describes the financial position of the Institution, its cash flows, liquidity position and borrowing facilities.
The financial statements have been prepared on a going concern basis which the Council consider to be appropriate for the following reasons.
The University recorded a surplus before other gains and losses of £12.5m, and together with positive operating cash flow, this helped ensure that cash and cash equivalents at the end of the year were £37.7m, whilst repaying £8.8m of debt from cash. A position around breakeven is forecast in 2025-26, and these forecasts have been sensitised with severe but plausible downsides, and these indicate adequate availability of financial resources to meet liabilities as they fall due over the period of 12 months from the date of approval of the financial statements (the going concern assessment period).
During the year, a new Revolving Credit Facility was agreed with Santander. This will give an additional £13.3m facility to support the going concern position and the new facility includes covenants that the University is able to comply with over the going concern assessment period.
Consequently, the Council is confident that the Group and parent University will have sufficient funds to continue to meet their liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.
## **Basis of consolidation**
The consolidated financial statements include the University and all of its subsidiaries for the financial year to 31 July 2025. Intra group sales and profits are eliminated on consolidation.
The consolidated financial statements do not include those of the Students’ Union because the University does not control these activities.
## **Cash flow statement**
As permitted by Section 7, paragraphs 1.11 and 1.12 of FRS 102 ‘Statements of Cash Flows’, the University’s cash flow statement has not been included in these financial statements.
Page 34 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Statement of Accounting Policies (continued) Year ended 31 July 2025**
## **Recognition of income**
Funding council block grants are accounted for in the year to which they relate.
Fee income is stated gross and credited to the Statement of Comprehensive Income and Expenditure account over the period in which the students are studying. Where the amount of the tuition fee is reduced, income receivable is shown net of the discount. Bursaries and scholarships are accounted for gross as expenditure and included within operating income.
Recurrent income from government grants, contracts and other services rendered are accounted for on an accruals basis and included to the extent of the completion of the contract or service concerned; any payments received in advance of such performance are recognised on the balance sheet as liabilities.
Recurrent income from non-government grants are accounted for under the performance model, and the grant is recognised as and when performance conditions are met.
Government grants received in respect of the acquisition or construction of fixed assets are treated as deferred capital grants under the accruals model. The grants are credited to deferred capital grants and an annual transfer made to the Statement of Comprehensive Income and Expenditure account over the useful economic life of the asset at the same rate as the depreciation charge on the asset for which the grant was awarded. In the event of accelerated depreciation or disposal of an asset before the deferred capital grant has been transferred, then the remaining balance of the grant is transferred to the Statement of Comprehensive Income and Expenditure account. During 2024-25, the University disposed of Thornton Science Park and deferred capital grants of £7.2m were transferred in respect of this asset.
Income from the sale of goods or services is credited to the Statement of Comprehensive Income and Expenditure account when the goods or services are supplied to the external customers against the order received or the terms of the contract have been satisfied.
## **Fixed assets and depreciation**
A fixed asset is capitalised at cost where the expenditure exceeds £10,000. Assets are depreciated over their useful lives on a straight line basis as follows:
|Freehold buildings|-|2% pa on cost|
|---|---|---|
|Plant and machinery|-|25% pa on cost|
|Computer equipment|-|33% pa on cost|
Land is capitalised at cost and is not depreciated.
## **Intangible assets – research and development**
Research expenditure is written off as incurred. Development expenditure is also written off, except where the directors are satisfied as to the technical, commercial and financial viability of individual projects. In such cases, the identifiable expenditure is capitalised as an intangible asset and amortised over the period during which the Group is expected to benefit. This period is between three and five years. Provision is made for any impairment.
## **Maintenance**
The University has a five-year planned maintenance programme which is reviewed on an annual basis. Actual expenditure on routine and planned maintenance is charged to the Statement of Comprehensive Income and Expenditure in the year it is incurred.
Page 35 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
**Statement of Accounting Policies (continued) Year ended 31 July 2025**
## **Stocks**
Stocks are stated at the lower of cost and net realisable value.
## **Provisions**
Provisions are recognised when the University has a legal or constructive obligation as a result of a past event, it is probable that a transfer of economic benefit will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
## **Pension schemes**
The two principal pension schemes for the University’s staff are the Cheshire Pension Fund and the Teachers’ Pension Scheme. Pension costs are assessed on the latest actuarial valuations of the schemes and are accounted for on the basis of FRS 102 Section 28. The Cheshire Pension Fund has a full valuation every three years (last valued at March 2022) carried out by professionally qualified independent actuaries and the Teachers’ Pension Scheme is assessed every five years (last valued at March 2023).
The Cheshire Pension Fund is a funded, defined benefit scheme with the assets of the scheme held separately from those of the Group in separate trustee administered funds. Assets are included in the valuation at fair value, and scheme liabilities are measured on an actuarial basis using the projected unit method; these liabilities are discounted at the current rate of return on AA rated corporate bonds. The post-retirement benefit surplus or deficit is included on the University’s balance sheet. Surpluses are included only to the extent that they are recoverable through reduced contributions in the future or through refunds from the schemes. The current service cost and any past service costs are included in the Statement of Comprehensive Income and Expenditure account within operating expenses and the expected return on the scheme’s assets, net of the impact of the unwinding of the discount on scheme liabilities, is included within other finance income. Actuarial gains and losses, including differences between the expected and actual return on scheme assets, are recognised in the statement of total recognised gains and losses.
The Teachers’ Pension Scheme is an unfunded, defined benefit multi-employer scheme. Because of the mutual nature of the scheme, the scheme’s assets are not hypothecated to individual institutions and scheme-wide contribution rates are 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 FRS 102 Section 28 this scheme is accounted for as if it is a defined contribution scheme. As a result, the amount charged to the Statement of Comprehensive Income and Expenditure account represents the contributions payable to the scheme in respect of the accounting year.
## **Employment benefits**
Short term employment benefits such as salaries and compensated absences are recognised as an expense in the year in which the employees render service to the University. Any unused benefits are accrued and measured as the additional amount the University expects to pay as a result of the unused entitlement.
## **Leases**
All leases held by the University are accounted for as ‘operating leases’ and the rental charges are charged to the Statement of Comprehensive Income and Expenditure on a straight line basis over the life of the lease.
Page 36 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Statement of Accounting Policies (continued)**
## **Year ended 31 July 2025**
## **Cash flows and liquid resources**
Cash flows comprise increases or decrease in cash. 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. No investments, however liquid, are included in cash.
Liquid resources represent assets held that are readily disposable. They comprise term deposits held as part of the University’s treasury management activities.
## **Taxation**
The University is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the University is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 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 exclusively to charitable purposes. Subsidiary companies are liable to corporation tax.
The University is partially exempt in respect of Value Added Tax, so that it can only recover a minor element of VAT charged on its inputs. Irrecoverable VAT on inputs is included in the costs of such inputs and added to the cost of tangible fixed assets as appropriate, where the inputs themselves are tangible fixed assets by nature.
## **Endowment assets**
Endowment assets are carried at market value. Appreciation/depreciation in the market value of endowment assets and any gain or loss on disposal is added to or subtracted from the endowment funds concerned and is not brought into the Statement of Comprehensive Income and Expenditure account but reported through the statement of total recognised gains and losses.
## **Financial instruments**
Financial assets and financial liabilities are recognised when the University becomes a party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the University after deducting all of its liabilities.
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction.
If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets and liabilities are only offset in the balance sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the University intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Page 37 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Statement of Accounting Policies (continued) Year ended 31 July 2025**
## **Significant estimates and judgements**
Preparation of financial statements require significant estimates and judgements for which management relies of appropriate professional advice. The estimates and judgements that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities are:
## a. Pension liabilities
The University participates in the Cheshire Pension Fund which is a defined benefit scheme. The present value of the University obligations depends on a number of factors including life expectancy, salary increases, asset valuations, liability periods and discount rates on corporate bonds. A qualified actuary estimates these values so management can determine net pension obligations in the balance sheet.
Asset values are reported using estimated asset allocations prepared by the scheme Actuary. This asset value is calculated at each triennial valuation. Thereafter it is rolled forward for accounting valuation purposes using investment returns, contributions received, and benefits paid out. During each annual reporting period between triennial valuations asset returns are estimated using 11 months of market experience and one month of extrapolation being assumed. However, for the year ended 31 July 2025 the pension valuation was calculated using asset returns as at that date.
Details of the assumptions used, and associated sensitivities, are included in note 22.
Page 38 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Notes to the Financial Statements**
## **Year ended 31 July 2025**
|**1**
**Tuition Fees and Education Contracts**
Full-time home and EU students
Full-time international students
Part-time students
Education Contracts
Other Fees and Support Grants
**2**
**Funding Body Grants**
**Recurrent Grant**
Office for Students
UKRI
DfE
Capital grant
**Specific Grants**
OfS
Higher Education Innovation Fund
Research Innovation Fund
Uni Connect (formerly NCOP/Higher
Horizons)
Other
**3Details of Grant and Fee Income**
Grant income from Office for Students
Grant income from other bodies
Fee income for taught awards
Fee income for research awards
Fee income for non-qualifying courses
Total grant and fee income|**Year Ended 31 July 2025**
Year Ended 31 July 2024
**Consolidated**
**University**
Consolidated
University
**£’000**
**£’000**
£’000
£’000
**65,849**
**65,849**
68,898
68,898
**44,575**
**44,575**
40,645
40,645
**3,299**
**3,299**
3,110
3,110
**581**
**581**
616
616
**1,395**
**1,395**
1,938
1,938|
|---|---|
||**115,699**
**115,699**
115,207
115,207|
||**5,369**
**5,369**
5,395
5,395
**3,438**
**3,438**
3,459
3,459
**74**
**74**
124
124
**8,367**
**8,367**
1,325
1,325
**65**
**65**
703
703
**1,581**
**1,581**
1,603
1,603
**-**
**-**
147
147
**25**
**25**
185
185
**50**
**50**
79
79|
||**18,969**
**18,969**
13,020
13,020|
||**5,433**
**5,433**
6,098
6,098
**13,535**
**13,535**
6,922
6,922
**112,645**
**112,645**
111,528
111,528
**1,660**
**1,660**
1,741
1,741
**1,395**
**1,395**
1,938
1,938|
||**134,668**
**134,668**
128,227
128,227|
Page 39 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Notes to the Financial Statements (continued) Year ended 31 July 2025**
|**Notes**
**Research Grants and Contracts**
Research Councils
Research Charities
Government (UK and overseas)
Industry and Commerce
Other
**Other income**
Residences, Catering and
Conferences
Other income|**Year Ended 31 July 2025**
Year Ended 31 July 2024
**Consolidated**
**University**
Consolidated
University
**£’000**
**£’000**
£’000
£’000
**642**
**642**
219
219
**570**
**570**
311
311
**774**
**774**
722
722
**-**
**-**
24
24
**483**
**483**
928
928|
|---|---|
||**2,469**
**2,469**
2,204
2,204|
||**7,419**
**7,420**
7,332
7,260
**8,211**
**7,995**
7,636
7,431|
||**15,630**
**15,415**
14,968
14,691|
## **4 Research Grants and Contracts**
## **5 Other income**
Other income relates to European grants, rental income and other income (e.g. nursery, fitness centre).
## **6 Investment income**
|Investment income on
endowments
18
Other investment income
Net income on pension scheme
**Donations and endowments**
New endowments
18|**4**
**4**
4
4
**1,350**
**1,349**
2,050
2,046
**38**
**38**
31
31|
|---|---|
||**1,392 **
**1,391 **
2,085
2,081|
||**1**
**1**
19
19|
## **7 Donations and endowments**
Page 40 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Notes to the Financial Statements (continued)**
## **Year ended 31 July 2025**
|**Notes**
**8 Staff costs**
Salaries
Social security costs
Other pension costs
Total|**Year Ended 31 July 2025**
Year Ended 31 July 2024
**Consolidated**
**University**
Consolidated
University
**£’000**
**£’000**
£’000
£’000
**63,015**
**63,015**
64,219
64,219
**7,254**
**7,254**
6,727
6,727
**12,925**
**12,925**
12,134
12,134|
|---|---|
||**83,194**
**83,194**
83,080
83,080|
## **Emoluments of the Head of Institution**
|Professor E.A. Simmons 1 August 2024 to 31 July 2025:
Salary
Taxable Benefits - Car
Other Remuneration – Pension & Expenses
Other Remuneration - Expenses
Professor E.A. Simmons 1 August 2024 to 31 July 2025:
Basic Salary Ratio
Median Total Remuneration all staff|**2025**
2024
**£’000**
£’000
**277**
270
**8**
3
**79**
68
**3**
6|
|---|---|
||**367**
347|
||**2025**
2024
**£’000**
£’000
**7.1**
7.5
**9.3**
8.1|
The justification for the Head of Institution pay can be found on page 18.
Page 41 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Notes to the Financial Statements (continued) Year ended 31 July 2025**
## **8 Staff Costs (continued)**
Remuneration of other higher paid staff, excluding employer's pension contributions:
|£100,000 to £104,999
£105,000 to £109,999
£110,000 to £114,999
£115,000 to £119,999
£120,000 to £124,999
£125,000 to £129,999
£130,000 to £134,999
£135,000 to £139,999
£140,000 to £144,999
£145,000 to £149,999
£150,000 to £154,999
£155,000 to £159,999
£160,000 to £164,999
£165,000 to £170,000
Over £170,000
Total compensation paid to key management personnel|**2025**
2024
**1**
-
**-**
-
**1**
1
**-**
-
**3**
2
**-**
-
**-**
-
**1**
2
**1**
2
**2**
1
**-**
-
**1**
1
**-**
1
**1**
-
**1**
1|
|---|---|
||**12**
11|
||**2,310**
2,075|
Key management personnel consist of 12 individuals that made up the Strategic Executive Team. Compensation consists of salary, bonus, employer’s national insurance and employer’s pension contribution.
|Average staff numbers by major category:
Academic Departments
Academic Services
Administration/Central Services
Premises
Catering and Residence|**2025**
2024
**787**
830
**132**
131
**341**
368
**12**
118
**45**
51|
|---|---|
||**1,430**
1,498|
## **Compensation for loss of office**
54 payments were made in respect of compensation for loss of office during the year totalling £815k (2024: £1,021k)
## **Council Members**
Reimbursements to members of University Council for expenditure incurred in attending Council and meetings of its committees amounted to £3,910 (2024: £1,718). Council members did not receive any remuneration from the University.
Page 42 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Notes to the Financial Statements (continued)**
## **Year ended 31 July 2025**
|**Notes**
**Access & Participation**
Access Investment
Financial Support
1
Disability Support
Research and evaluation|**Year Ended 31 July 2025**
**Consolidated**
**University**
**£’000**
**£’000**
**597**
**597**
**1,377**
**1,377**
**719**
**719**
**877**
**877**
**3,571**
**3,571**|Year Ended 31 July 2024
Consolidated
University
£’000
£’000
618
618
1,826
1,826
792
792
623
623|
|---|---|---|
|||3,859
3,859|
## **9 Access & Participation**
£1,891k of these costs are already included in the overall staff costs figures included in the financial statements, see note 8
The University of Chester’s Access and Participation plan can be found here: University of Chester Access and Participation Plan 2024-25 to 2027-28
## **10 Interest and other finance costs**
|Loan interest
**1,111**
**1,111**
Net charge on pension
scheme
22
**15**
**15**
**1,126**
**1,126**
**Analysis of other operating expenses by activity**
Academic and related
expenditure
**12,679**
**12,679**
Administration and central
services
**17,943**
**17,943**
Premises (including service
concession cost)
**18,624**
**18,426**
Residences, catering and
conferences
**1,747**
**1,747**
Research grants and
contracts
**793**
**793**
Other expenses
**309**
**252**
**52,095**
**51,840**
Other operating expenses
include:
External auditor’s
remuneration in respect of
audit services
**113**
**101**
External auditor’s
remuneration in respect of
non-audit services
**32**
**32**
Operating lease rentals:
Vehicles
**165**
**165**|1,513
1,513
-
-|
|---|---|
||1,513
1,513|
||12,951
12,954
16,727
16,736
22,172
22,063
2,351
2,287
989
989
574
623|
||55,764
55,652|
||116
96
56
56
185
185|
## **11 Analysis of other operating expenses by activity**
Page 43 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Notes to the Financial Statements (continued) Year ended 31 July 2025**
|**12**
**Fixed Assets**
**Consolidated and University**
**Cost**
At 1 August 2024
Additions
Disposals
**At 31 July 2025**
**Depreciation**
At 1 August 2024
Charge for year
Disposals
**At 31 July 2025**
**Net book value**
**At 31 July 2025**
At 31 July 2024|Freehold
Land and
Buildings
£’000
153,041
1,753
(7,681)
**147,114**
45,091
2,777
(4,985)
**42,883**
**104,230**
107,950|Plant and
Machinery
£’000
33,748
409
(57)
**34,101**
31,090
1,757
(36)
**32,811**
**1,290**
2,658|Computer
Equipment
£’000
13,175
336
-
**13,511**
12,139
703
-
**12,842**
**669**
1,036|Total
£’000
199,964
2,499
(7,738)|
|---|---|---|---|---|
|||||**194,725**|
|||||88,320
5,236
(5,021)|
|||||**88,536**|
|||||**106,190**|
|||||111,644|
At 31 July 2025, freehold land and buildings included £7.8m (2024 - £7.8m) in respect of freehold land and is not depreciated.
|**13**
**Stock**
General consumables
**14**
**Trade and other receivables**
Amounts falling due within one year:
Trade receivables
Prepayments and accrued income
Amounts due from subsidiary
companies|**Year ended 31 July 2025**
**Consolidated**
**University**
**£'000**
**£'000**
**46**
**46**
**Year ended 31 July 2025**
**Consolidated**
**University**
**£'000**
**£'000**
**2,401**
**2,388**
**4,640**
**4,637**
**-**
**76**
**7,041**
**7,101 **|Year ended 31 July 2024
Consolidated
University
£'000
£'000
51
51|
|---|---|---|
|||Year ended 31 July 2024
Consolidated
University
£'000
£'000
7,342
6,811
4,399
4,393
-
187|
|||11,741
11,391|
Page 44 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Notes to the Financial Statements (continued) Year ended 31 July 2025**
## **15 Creditors: amounts falling due within one year**
|Secured loans
Unsecured loans
Trade payables
Social security and other
taxation payable
Accruals and deferred income
Amounts due to subsidiary
companies|**Year ended 31 July 2025**
**Consolidate**
**d**
**Universit**
**y**
**£'000**
**£'000**
**-**
**-**
**-**
**-**
**4,907**
**4,784**
**2,275**
**2,262**
**24,638**
**24,638**
**-**
**356**
**31,820**
**32,040**|Year ended 31 July 2024
Consolidated
University
£'000
£'000
1,485
1,485
200
200
9,001
9,321
2,151
1,987
28,909
28,556
-
13
41,746
41,562|Year ended 31 July 2024
Consolidated
University
£'000
£'000
1,485
1,485
200
200
9,001
9,321
2,151
1,987
28,909
28,556
-
13
41,746
41,562|
|---|---|---|---|
||||41,562|
## **16 Creditors: amounts falling due after more than one year**
|Deferred income
Secured loans
Unsecured loans
Analysis of unsecured loans:
Due within one year or on
demand (Note 15)
Due between one and two
years
Due between two and five
years
Due in five years or more
**Due after more than one year**
**Total secured and**
**unsecured loans**
Secured loans repayable by
2026
Unsecured loans repayable by
2027|**Year ended 31**
**Consolidate**
**d**
**£'000**
**16,145**
**-**
**11,700**
**27,845**
**-**
**11,700**
**-**
**-**
**11,700**
**11,700**
**-**
**11,700**
**11,700**|**July 2025**
**Universit**
**y**
**£'000**
**16,145**
**-**
**11,700**
**27,845**
**-**
**11,700**
**-**
**-**||Year ended 31 July 2024
Consolidated
University
£'000
£'000
23,609
23,609
1,976
1,976
16,850
16,850
42,435
42,435
1,685
1,685
7,126
7,126
11,700
11,700
-
-
18,826
18,826
20,511
20,511
3,461
3,461
17,050
17,050
20,511
20,511|Year ended 31 July 2024
Consolidated
University
£'000
£'000
23,609
23,609
1,976
1,976
16,850
16,850
42,435
42,435
1,685
1,685
7,126
7,126
11,700
11,700
-
-
18,826
18,826
20,511
20,511
3,461
3,461
17,050
17,050
20,511
20,511|
|---|---|---|---|---|---|
||||||42,435|
||||||1,685
7,126
11,700
-|
|||**11,700**|||18,826|
|||**11,700**|||20,511|
|||**-**
**11,700**|||3,461
17,050|
|||**11,700**|||20,511|
Page 45 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Notes to the Financial Statements (continued) Year ended 31 July 2025**
## **16 Creditors: amounts falling due after more than one year (continued)**
Included in loans are the following:
|**Lender**
Santander
**TOTAL**|**Amount**
**Term**
**Interest**
**rate**
**Borrower**
**£'000**
%
11,700
2027
6.74
University
**11,700**|
|---|---|
## **17 Provisions for Liabilities**
|**Consolidated**
At 1 August 2024
Utilised in year
Additions in year
**At 31 July 2025**
**University**
At 1 August 2024
Utilised in year
Additions in year
**At 31 July 2025**|**Pension**
**enhancement on**
**termination**
**£'000**
313
(39)
-
**274**
**Pension**
**enhancement on**
**termination**
**£'000**
313
(39)
-
**274**|**Pension scheme**
**provision under**
**FRS 102 (Note 23)**
**£'000**
-
-
-
**-**
**Pension scheme**
**provision under**
**FRS 102 (Note 24)**
**£'000**
-
-
-
**-**|**Total Provisions**
**£'000**
**313**
**(39)**
**-**|
|---|---|---|---|
||||**274**|
||||**Total Provisions**
**£'000**
**313**
**(39)**
**-**|
||||**274**|
The Pension enhancement on termination provision relates to enhancements given to staff taking early retirement under a reorganisation programme. It is expected that this provision will be fully utilised over the next 10-20 years.
The pension scheme provision relates to the Cheshire Pension Fund, a funded defined benefit scheme with the assets of the scheme held separately from those of the Group in separate trustee administered funds. The provision is the deficit on the post-retirement benefits in excess of those assets.
## **Pension enhancement**
The assumptions for calculating the provision for Pension enhancements on termination under FRS 102 are as follows:
|are as follows:|||
|---|---|---|
||**Consolidated**||
||**2025**|2024|
|Discount rate|**5.5%**|4.8%|
|Inflation|**2.7%**|2.8%|
Page 46 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Notes to the Financial Statements (continued) Year ended 31 July 2025**
## **18 Endowment Reserves**
Restricted net assets relating to endowments are as follows:
|**Balances at 1 August 2024**
Capital
Accumulated income
New Endowments
Investment Income
Expenditure
(Decrease) / increase in market
value of investments
**Total endowment**
**Comprehensive income for the**
**year**
**At 31 July 2025**
**Represented by:**
Capital
Accumulated income
**Analysis by type of purpose:**
Prize funds
General
**Analysis by asset**
Cash & cash equivalents|**Restricted**
**permanent**
**endowments**
**£'000**
130
-
130
-
-
-
-
**-**
130
130
-
130
-|**Expendable**
**endowment**
**s**
**£'000**
297
(6)
291
1
4
(28)
-
(23)
268
298
(30)
268
-|**2025**
**Total**
2024
Total
**£'000**
£'000
**427**
408
**(6)**
27|
|---|---|---|---|
||||**421**
435|
||||**1**
19
**4**
4
**(28)**
(37)
**-**
-
**(23)**
(14)|
||||**398**
421|
||||**428**
427
**(30)**
(6)|
||||**398**
421|
||||**79**
79
**319**
342|
||||**398**
421|
||||**398**
421|
Page 47 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Notes to the Financial Statements (continued) Year ended 31 July 2025**
## **19 Cash and Cash Equivalents**
|**Cash and Cash Equivalents**|||||
|---|---|---|---|---|
|**Notes**
**Consolidated**
Cash and cash equivalents
**Lease Obligations**
Total rentals payable under operating leases:
**Payable during the year**
**Future minimum lease payments due:**
Not later than 1 year
Later than 1 year and not later than 5 years
**Total lease payments due**
Lease obligations relate to vehicle leases.|**At 1 August**
**2024**
**£'000**
41,758
**31**||**Cash**
**Flows**
**£'000**
(4,063)
**July 2025**
**Total**
**£'000**
**77**
**115**
**192**|**At 31 July**
**2025**
**£'000**
**37,695**|
|||||31 July 2024
Total
£'000
74
127|
|||||201|
||||||
## **20 Lease Obligations**
## **21 Subsidiary Undertakings**
The subsidiary companies (all of which are registered in England & Wales), wholly-owned or effectively controlled by the University, are as follows:
|**Company**|**Principal Activity**|**Status**|
|---|---|---|
|Chester Conferences Ltd|Management of conference and
related commercial facilities|100% owned|
|Thornton Research Properties|Management of Thornton Science
Park|100% owned|
|The registered office for the University|and its subsidiary companies is:||
|C/O Vice-Chancellor|||
|University of Chester|||
|Parkgate Road|||
|Chester|||
|CH1 4BJ|||
Page 48 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Notes to the Financial Statements (continued) Year ended 31 July 2025**
## **22 Pension Schemes**
Contributions to the schemes are charged to the Income and Expenditure account so as to spread the cost of the pensions over the employees’ working lives with the University of Chester. The pension charge for the year was £12,925,018 (2024: £12,133,960) which includes £45,027 (2024: £18,023) in respect of enhanced pension entitlements of staff taking early retirement under the reorganisation programme. The calculation of the cost of early retirement provisions charged to the Statement of Comprehensive Income and Expenditure account in the year of retirement is based on the total capital cost of providing enhanced pensions with allowance for future investment returns at 4% in excess of price inflation.
An amount of £274,436 (2024: £312,540) is included in provisions for liabilities and charges representing the extent to which the capital cost charged exceeds actual payments made. The provision will be released against the cost to the University of enhanced pension entitlements over the estimated life expectancy of each relevant employee. Were the institution to close and there be no successor established, the Secretary of State would become the compensating authority.
## **Teachers’ Pension Scheme**
The Teachers' Pension Scheme (TPS or scheme) is a statutory, unfunded, defined benefit occupational scheme, governed by the Teachers' Pensions Regulations 2010 (as amended), and the Teachers’ Pension Scheme Regulations 2014 (as amended). These regulations apply to teachers in schools and other educational establishments in England and Wales that are maintained by local authorities, and in academies. In addition, teachers in many independent schools, and teachers and lecturers in some establishments of further and higher education may be eligible for membership.
Membership is automatic for full-time teachers and lecturers and, from 1 January 2007, automatic too for teachers and lecturers in part-time employment following appointment or a change of contract. Teachers and lecturers are able to opt out of the TPS.
The total contribution for the year ended 31 July 2024 was £12,477,379 (2024: £11,509,635) of which the employers’ contributions totalled £9,323,651 (2024: £8,306,562) and the employees’ contributions totalled £3,153,729 (2024: £3,203,073).
## **Teachers’ Pension Budgeting and Valuation Account**
Although members may be employed by various bodies, their retirement and other pension benefits are set out in the abovementioned regulations, made under the Superannuation Act (1972) and Public Service Pensions Act (2013), and are paid by public funds provided by Parliament. The TPS is an unfunded scheme, and members contribute on a ’pay as you go ‘basis – contributions from members, along with those made by employers, are credited to the Exchequer under arrangements governed by the above Acts.
The Teachers' Pensions Regulations 2010 require an annual account - the Teachers' Pension Budgeting and Valuation Account - to be kept of receipts and expenditure (including the cost of pension increases). From 1 April 2001, the Account has been credited with a real rate of return, which is equivalent to assuming that the balance in the Account is invested in notional investments that produce that real rate of return
## **Valuation of Teachers’ Pension Scheme**
As a result of the latest scheme valuation, employer contributions were increased in April 2024 from a rate of 23.6% to 28.6%. Employers also pay a charge equivalent to 0.08% of pensionable salary costs to cover administration expenses.
A copy of the latest valuation report can be found by following this link valuation-result (www.teacherspensions.co.uk). The next valuation is expected to take effect in 2027.
## **Scheme Changes**
In line with the requirements of the Public Service Pensions and Judicial Offices Act 2022, the Department for Education laid regulations which came into force on 1 April 2022, closing the legacy scheme to any further accrual which prevented any further discrimination.
The regulatory changes, along with the ongoing Transitional Protection remedy, are being implemented in response to the McCloud-Sargeant discrimination ruling. The retrospective remedy offers members in scope a deferred choice of benefits, legacy or reformed, in respect of pensionable service during the remedy period (1 April 2015 to 31 March 2022).
Page 49 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Notes to the Financial Statements (continued) Year ended 31 July 2025**
## **22 Pension Schemes (continued)**
## **Cheshire Pension Fund**
The University participates in the Cheshire Pension Fund, which is a funded defined benefit pension scheme where contributions payable are held in a trust separately from the University. The total contribution made for the 12 months ended 31 July 2025 was £6,402,012 (2024: £6,272,000) of which the employers’ contributions totalled £5,102,026 (2024: £4,989,000) and employees contributions totalled £1,299,987 (2024: £1,283,172). The agreed contribution rates for future years are 24.7% for employers and in bandings 5.5%-12.5% for employees depending on the level of their salary.
|Valuation date|31 March 2022|
|---|---|
|Valuation Method|Projected Unit Method|
|Value of notional needs|£6,146 Million|
|Funding level of accrued benefits|113%|
|Investment return per annum|3.70%|
|Salary scale increases per annum|3.40%|
The following information is based upon a full actuarial valuation of the fund as at 31 March 2022 updated to July 2024 by a qualified independent actuary.
||**31 July**|**31 July**|**31 July**|
|---|---|---|---|
||**2025**|**2024**|**2023**|
||**%**|**%**|**%**|
|Rate of increases in salaries|3.45|3.45|3.70|
|Rate of increase in pensions|2.75|2.75|3.00|
|Discount rate for liabilities|5.80|5.00|5.05|
Life expectancy is based on the Fund’s Vita Curves with improvements in line with the CMI 2024 model, with core parameterisation, initial adjustment of 0.25% and a long-term rate of improvement of 1.5% p.a. for both males and females. Based on these assumptions, the average future life expectancies at age 65 for the Employer are summarised below:
||**31 July**|31 July|
|---|---|---|
||**2025**|2024|
|**Retiring today**|||
|Males|**21.2**|21.0|
|Females|**24.0**|23.9|
|**Retiring in 20 years**|||
|Males|**21.9**|21.7|
|Females|**25.4**|25.3|
The life expectancies quoted above are based on lives aged between 45 and 65 at the latest fund valuation.
Page 50 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Notes to the Financial Statements (continued) Year ended 31 July 2025**
## **22 Pension Schemes (continued)**
LGPS assets do not include any of the University’s own financial instruments or any property occupied by the University. The asset values are reported using estimated asset allocations prepared by the scheme Actuary. This asset value is calculated at each triennial valuation. Thereafter it is rolled forward to accounting dates using investment returns, contributions received, and benefits paid out.
The expected return on assets is based on the long-term future expected investment return for each asset class at the beginning of the year. The University’s share of assets in the scheme were:
||**31 July**|**31 July**|31 July|
|---|---|---|---|
||**2025**|**2025**|2024|
|||**£’000**|£’000|
|Equities|**49%**|**84,078**|79,699|
|Bonds|**38%**|**65,203**|57,384|
|Property|**12%**|**20,591**|19,128|
|Cash|**1%**|**1,716**|3,188|
|Total market value of assets||**171,588**|159,399|
|The above asset values as at 31 July 2025 are at|bid value as required under|FRS 102 Section|28:|
|||**2025**|2024|
|||**£’000**|£’000|
|University's estimated asset share||**171,588**|159,399|
|Present value of scheme liabilities||**(113,241)**|(126,063)|
|Asset ceiling adjustment||**(58,347)**|(33,336)|
|Deficit in the scheme||**-**|-|
The University has applied asset ceiling to restrict the surplus at nil. The ceiling has been calculated by the pension scheme actuaries Hymans Robertsons LLP applying the IAS 19 / IFRIC 14 approach as it is considered there to be no economic value through a reduction in future contributions. The asset ceiling calculation is as follows:
The prevailing view held by LGPS practitioners at the time of writing this report is that a minimum funding requirement for future service exists in the LGPS.
The asset ceiling step by step is:
A - The present value of (employer) future service costs over the future period
less
B – The present value (employer) future contributions (in relation to future service) over the future period
A – Annuity (in perpetuity) x 2025/26 future service cost
less
B – Annuity (in perpetuity) x 2024/25 projected employer cash contributions (future service element) – annuity (overfunding time horizon) x future service element adjustment
A – 44 x £2,561,000 = £112,684,000 less B – 44 x £5,498,000 – 11 x £578,000= £235,554,000 equals -£122,870,000
As B is greater than A, the economic benefit available as a reduction in future contributions is floored at £0
Page 51 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Notes to the Financial Statements (continued)**
## **Year ended 31 July 2025**
## **22 Pension Schemes (continued)**
## **Analysis of amount (charged)/credited to the Statement of Comprehensive Income and Expenditure account**
The University’s pension charge for the year in accordance with FRS 102 Section 28 is made up of the following:
|Current Service cost
Past Service Cost (including curtailments)
**Analysis of net return on pension scheme**
Expected return on pension scheme assets
Impact on pension scheme liabilities
Interest on the effect of the asset ceiling
**Net charge**
**Amounts recognised in Other Comprehensive Income**
Changes in financial assumptions
Changes in demographic assumptions
Other experience
Return on assets excluding amounts included in net interest
Changes in the effect of the asset ceiling
Actuarial Gain|**2025**
**£’000**
**3,366**
**45**
**3,411**
**2025**
**£’000**
**8,052**
**(6,348)**
**(1,666)**
**38**
**2025**
**£’000**
**20,569**
**(508)**
**1,104**
**591**
**(23,345)**
**(1,589)**|2024
£’000
3,581
178|
|---|---|---|
|||3,759|
|||2024
£’000
7,368
(6,114)
(1,223)|
|||31|
|||2024
£’000
5,657
253
(3,645)
4,367
(7,893)|
|||(1,261)|
Page 52 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Notes to the Financial Statements (continued) Year ended 31 July 2025**
## **22 Pension Schemes (continued)**
## **Reconciliation of opening and closing balances of (Deficit)/Surplus**
|Deficit in scheme at beginning of year
**Movement in year:**
Current service charge
Employer contributions
Net interest on assets
Actuarial gain
Asset ceiling adjustment
**Net deficit**
**Reconciliation of opening and closing balances of the present**
**obligation**
**Liabilities at start of year**
Service cost
Interest cost
Employee contributions
Actuarial gain – Changes in financial assumptions
Actuarial (loss)/gain – Changes in demographic assumptions
Actuarial gain/(loss) – Other experience
Benefits paid
**Liabilities at end of year**|**2025**
2024
**£’000**
£’000
**-**
-
**(3,411)**
(3,759)
**4,962**
4,989
**38**
31
**56,758**
32,075
**(58,347)**
(33,336)
**-**
-
**value of the defined benefit**
**2025**
2024
**£’000**
£’000
**126,063**
119,945
**3,411**
3,759
**6,348**
6,114
**1,299**
1,283
**(20,569)**
(5,657)
**508**
(253)
**(1,104)**
3,645
**(2,715)**
(2,773)
**113,241**
126,063|2024
£’000
-
(3,759)
4,989
31
32,075
(33,336)|
|---|---|---|
|||-|
|||126,063|
Page 53 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Notes to the Financial Statements (continued) Year ended 31 July 2025**
## **22 Pension Schemes (continued)**
## **Reconciliation of opening and closing balances of the fair value of the defied benefit assets**
|**Assets at start of year**
Interest income on plan assets
Return on assets excluding amounts included in net interest
Employer contributions
Employee contributions
Benefits paid
**Assets at end of year**|**2025**
**£’000**
**159,399**
**8,052**
**591**
**4,962**
**1,299**
**(2,715)**
**171,588**|2024
£’000
144,165
7,368
4,367
4,989
1,283
(2,773)|
|---|---|---|
|||159,399|
In June 2023, the High Court handed down a decision in the case of Virgin Media Limited v NTL Pension Trustees II Limited and others relating to the validity of certain historical pension changes due to the lack of actuarial confirmation required by law. In July 2024, the Court of Appeal dismissed the appeal brought by Virgin Media Ltd against aspects of the June 2023 decision. The conclusions reached by the court in this case may have implications for other UK defined benefit plans. The University is monitoring developments in terms of whether there is expected to be any impact on LGPS Funds and will consider if there are any implications for the Cheshire Pension Fund. As a result, the University does not consider it necessary to make any allowance for the potential impact of the Virgin Media case in its financial statements.
Page 54 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Notes to the Financial Statements (continued) Year ended 31 July 2025**
## **23 Related Party Transactions**
Members of the Council are required to declare any outside interests. When an item arises in which a member has a pecuniary, business, family or other personal interest, it must be declared, and the member concerned may not take part in the consideration of the matter nor vote on it. The Council has considered the financial effect of all transactions involving organisations in which a member of the Council may have an interest. It is confirmed that these are conducted at arm’s length and in accordance with the University’s Financial Regulations.
The Vice-Chancellor Professor E.A. Simmons and Mr M. Clinton were on the Governing Body of Reaseheath College. The University receives fee income from Reaseheath students and subsequently passes 100% of this income to Reaseheath College. For the 24/25 year this was a total of £210,168 (23/24 £219,620). The University also received £141 of income from the College (23/24 £700).
Professor Simmons was also a member, director or trustee of the following organisations:
- Cheshire and Warrington Local Enterprise Partnership (LEP) – income received £0 (23/24 £1,480).
- North West Business Leadership Team (NWBLT) – payments were made of £17,083 (23/24 £10,417).
- The Alliance for Sustainability Leadership in Education (EAUC) – payments were made of £461 (23/24 £3,094).
- National Trust – payments were made of £0 (23/24 £79).
- Royal Society of Biology – payments were made of £3,333 (23/24 £5,000).
- The Colleges and Universities of the Anglican Communion (CUAC) – payments were made of £2,095 (23/24 £180).
The Vice-Chancellor and Steven Broomhead were members of Warrington Chamber of Commerce & Industry – payments were made of £792 (23/24 £792).
Deputy Vice-Chancellor Professor Helen O’Sullivan was the chair of the board of trustees for the Association for Learning Technology (ALT) – payments were made of £621 (23/24 £1,507).
Pro Vice-Chancellor Dr Helen Galbraith was an executive member of Association of Heads of University Administration (AHUA) – payments were made of £1,830 (23/24 £3,706).
Professor Angela Simpson was a Governor at Countess of Cheshire NHS Trust – payments were made of £117,988 (23/24 £71,299) and income received £18,360 (23/24 £800).
Lillian Watson was employed by Chester Students’ Union – payments were made of £568,101 (23/24 £488,608). Income received £21,367 (23/24 £26,540).
- Dr D. Briggs was Trustee or member of the following organisations:
- Warrington Youth Zone – payments were made of £0 (23/24 £216).
- Cheshire Agricultural Society – payments were made of £300 (23/24 £1,487).
- Chester Cathedral – payments were made of £69,545 (23/24 £96,091).
- Platform for Life – income received £3,000 (23/24 £0).
- Citizens Advice Cheshire West – income received £1,069 (23/24 £1,023).
Councillor Razia Daniels was employed by Cheshire West & Chester Council – payments (excluding rates) were made of £61,792 (23/24 £40,643) and income received £356,675 (23/24 £271,266).
Councillor Razia Daniels was also a Director at the Queen’s School – income was received of £1,300 (23/24 £1,670).
Steven Broomhead was the Chief Executive Officer of Warrington Borough Council – payments (excluding rates) were made of £17,220 (23/24 £1,000) and £24,187 income received (23/24 £37,377).
Page 55 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Notes to the Financial Statements (continued) Year ended 31 July 2025**
## **23 Related Party Transactions (continued)**
Steven Broomhead was also a director or member of the following organisations:
- Warrington Wolves – income received £560 (23/24 £2,723).
- Marketing Cheshire – income received £8,171 (23/24 £9,656). Payments were made of £2,220 (23/24 £2,550).
- Wire Regeneration – payments were made of £40,257 (23/24 £40,144).
- NHS Cheshire and Merseyside ICB – income received £69,912 (23/24 £361,923).
Steven Broomhead’s Spouse works at the University of Central Lancashire (UCLan) – payments were made of £32,733 (23/24 £0).
The Right Reverend The Lord Bishop of Chester, Mark Tanner and The Very Reverend Dr Tim Stratford were both members of Diocese of Chester – income received £4,238 (23/24 £7,121).
The Very Reverend Dr Tim Stratford and Dr D. Briggs were Directors of Chester Cathedral Enterprises – income received £351 (23/24 £133). Payments were made of £245 (23/24 £0).
Karen Howell was the Chief Executive Officer of Greater Manchester NHS Mental Health Foundation Trust – income received £3,178 (23/24 £1,584).
Professor Charles Forsdick was employed by the University of Cambridge – payments were made of £3,473 (23/24 £0).
Professor Charles Forsdick was Chair of the Advisory Council at University of London – payments were made of £3,024 (23/24 £45).
Professor Charles Forsdick was Honorary Professor at University of Liverpool – payments were made of £83 (23/24 £22,254).
Kate Nwosu Aaron-Efe was a governor at St Werburgh’s & St Columba’s Catholic Primary School – payments were made of £750 (23/24 £200).
Professor David McGravie was a Director at AA2A Access to Arts Schools – payments were made of £1,860 (23/24 £1,720).
Professor David McGravie was a Trustee for Council for Higher Education in Art and Design (CHEAD) – payments were made of £1,546 (23/24 £1,546).
Stephen Dobson was a member of the Institute of Chemical Engineers (IChemE) – payments were made of £4,100 (23/24 £4,800).
Cathy Bond was a member of North-West Cancer Research – income received £0 (23/24 £38,357).
Richard Waddington was a member of the Audit & Governance Committee for Cheshire West & Chester – payments (excluding rates) were made of £61,792 (23/24 £40,643) and income received £356,675 (23/24 £271,266).
Rashmi Patel was a consultant at the University of Lancaster – payments were made of £32,733 (23/24 £0).
Jane Tomkinson was CEO at the Countess of Chester, Cheshire West NHS Trust – payments were made of £117,988 (23/24 £71,299) and income received £18,360 (23/24 £800).
Peter Wallach was employed by Wirral Council – payments (excluding rates) were made of £500 (23/24 £0).
Professor John French was self-employed and a Director/Shareholder at Orka Consulting Ltd – no payments were made (23/24 £78,000).
Page 56 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Notes to the Financial Statements (continued)**
## **Year ended 31 July 2025**
## **23 Related Party Transactions (continued)**
Professor John French was also a Fellow or member of the following organisations:
- University of Cambridge, Institute of Sustainability Leadership – payments were made of £3,473 (23/24 £0).
- University of East Anglia, Norwich – income received £31,500 (23/24 £2,438).
- University of Durham – income received £14,129 (23/24 £65,231).
Page 57 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Notes to the Financial Statements (continued) Year ended 31 July 2025**
## **24 US Department of Education Financial Responsibility Supplemental Schedule**
In satisfaction of its obligations to facilitate students’ access to US federal financial aid, the University is required, by the US Department of Education, to present the following Supplemental Schedule in a prescribed format.
The amounts presented within the schedules have been:
- prepared under the historical cost convention, subject to the revaluation of certain fixed assets;
- prepared using United Kingdom generally accepted accounting practice, in accordance with Financial Reporting Standard 102 (FRS 102) and the Statement of Recommended Practice: Accounting for Further and Higher Education (2019 edition);
- presented in pounds sterling.
The schedules set out how each amount disclosed has been extracted from the financial statements. As set out above, the accounting policies used in determining the amounts disclosed are not intended to and do not comply with the requirements of accounting principles generally accepted in the United States of America
|**Note Ref:**
Line 13
Balance
Sheet
Net assets without donor
restrictions
Note 18
Net Assets with Donor
restrictions
Note 23
**Secured and unsecured related**
**party receivable**
Note 23
unsecured related party
receivable
Note 12
**Property plant and Equipment**
**post implementation**
Note 12
Property plant and Equipment
pre-implementation
Note 12
Property plant and Equipment
post implementation WITH debt
Note 12
Property plant and Equipment
post implementation WITHOUT
debt
Note 12
Construction in progress
N/A
**Lease Right of use assets, net**
N/A
Lease Right of use assets, pre-
implementation
N/A
Lease Right of use assets, post
implementation
N/A
**Goodwill /Intangible assets**
Note 17
**Post-employment and pension**
**liabilities**
Note 16
**Long term debt for long term**
**purposes**
Note 16
Long term debt for long term
purposes
Note 16
Long term debt for long term
purposes
Note 16
Line of credit
N/A
**Lease Right of use assets -**
**Liabilities**
N/A
Lease right of use assets -
liabilities
N/A
Lease right of use assets -
liabilities|**Primary**
**Reserve**
**Ratio:**
**2025**
2024
Expendable net
assets:
**£’000**
**£’000**
£’000
£’000
90,635
80,279
398
421
97
73
97
73
106,190
111,644
(113,108)
(113,108)
6,918
1,464
-
-
-
-
274
313
11,700
20,511
Pre-
implementation
32,784
32,784
Post implementation
(21,084)
(12,273)
Construction in progress
-
-
-
Pre-
implementation
-
-
Post implementation
-
-|
|---|---|
Page 58 of 59
Docusign Envelope ID: E67B9E5B-C274-4922-A5A8-3CC0CD04E4BF
## **Notes to the Financial Statements (continued) Year ended 31 July 2025**
|**24**|**US Department of Education Financial Responsibility Supplemental Schedule (continued)**|**US Department of Education Financial Responsibility Supplemental Schedule (continued)**|**US Department of Education Financial Responsibility Supplemental Schedule (continued)**|**US Department of Education Financial Responsibility Supplemental Schedule (continued)**||
|---|---|---|---|---|---|
|N/A|**Annuities with Donor restrictions**|-||-||
||Term endowments with Donor|||||
|N/A|restrictions||||-|
||Life income funds with Donor|||||
|N/A|restrictions||||-|
||**Net Assets with Donor**|||||
|Note 18|**restrictions in Perpetuity**||130||130|
|||Total Expenses and Losses:||||
|||**2025**||2024||
|||**£’000**|**£’000**|£’000|£’000|
|Note 8, 10,|**Total operating expenses without**|||||
|11, 18, 22|**Donor restrictions**||137,938||141,550|
|Note 6,12,10|Non-operating and net investment||3,882||4,995|
|Note 12|net investment losses||-||-|
|Note 24,||||||
|Cash Flow||||||
|Line 7|Pension related changes||-||-|
|||**Equity Ratio:**||||
|||Modified net assets:||||
|Line 13||||||
|Balance||||||
|Sheet|Net assets without donor restrictions||90,635||80,279|
|Note 18|Net Assets with Donor restrictions||398||421|
|N/A|Goodwill - Intangible assets|||||
||**Secured and unsecured related**|||||
|Note 23|**party receivable**|97||73||
|Note 23|unsecured related party receivable||97||73|
|||Modified assets:||||
|Balance||||||
|Sheet Lines||||||
|1, 2 & 7|Total assets||150,972||165,194|
||Lease right of use asset pre|||||
|N/A|implementation|||||
||pre implementation right of use|||||
|N/A|leases|||||
|N/A|Goodwill - Intangible assets|||||
||**Secured and unsecured related**|||||
|Note 23|**party receivable**|97||73||
|Note 23|unsecured related party receivable||97||73|
|||**Net income Ratio:**||||
|Line 13||||||
|Balance|Change in net assets without Donor|||||
|Sheet|restrictions||(10,356)||808|
|Notes||||||
|1,2,4,5|Total Revenues and Gains||153,572||147,826|
Page 59 of 59