This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

Financial Statements

FOR THE YEAR TO 31 JULY 2024

Registered with The Charity Commission for Northern Ireland NIC 100166 ISSN 0307-496X

ulster.ac.uk

Financial Statements for the Year Ended 31 July 2024

Operating and Financial Review Managing Risk Corporate Governance Statement Statement of Internal Control Statement of the Council’s Responsibilities Statement Primary Responsibilities Independent Auditors’ Report to the Council of Ulster University Statement of Principal Accounting Policies Group and University Statement of Comprehensive Income Group and University Statement of Changes in Reserves Balance Sheets Group Cash Flow Statement Notes to the Financial Statements	04 - 13
	14 - 15
	16 - 19
	20 - 21
	22 - 23
	24 - 25
	26 - 29
	30 - 37
	38
	39 - 40
	41
	42
	43 - 61

Financial Statements for the Year Ended 31 July 2024

Financial performance during the year shows a surplus of £83.3m (2022/23: surplus £38.3m). This includes a net credit of £85.8m (2022/23: credit £25.2m) due to pension funds activity in the USS and NILGOSC pension schemes. The balance sheet has strengthened with total net assets increasing to £445m (2022/23: £362m) reflecting cash surpluses generated during the year and the release of the USS pension liability.

Scope of Financial Statements

The financial statements presented to the University’s Council have been prepared on a consolidated basis and include the results of Ulster University and its subsidiary companies Innovation Ulster Limited and Studio Ulster Limited. This report should be read with the Annual Review 2024 which provides a detailed summary of activities undertaken by the University in delivering its corporate objectives.

Public Benefit

The University is an independent educational charity whose legal status is derived from a Royal Charter granted in 1984.

Ulster University’s charitable purpose is the advancement of education. In setting and reviewing the University’s objectives and activities, Council has given due regard to relevant guidance on the reporting of public benefit, in particular, the Charity Commission’s supplementary public benefit guidance on the advancement of education. We deliver our charitable purpose for the public benefit, by implementing our corporate plan and delivering on those strategic aims and objectives approved by Council to shape our academic portfolio in response to the demands of students and employers, and to deliver research and innovation that achieves economic and social transformation.

The distinctiveness of the University within the Higher Education (HE) sector places it within a small group of HE Institutions (HEI’s) that are researchengaged and business-focused with significant commercialisation of research and major knowledge transfer relationships.

Financial Performance

The University’s underlying financial performance continues to remain strong as shown below.

Staff costs excluding pension adjustment: Income ratio	2023/24	2022/23
	55.1% 53.7%
Cash spend on fixed assets	£15.0m £18.2m
Earnings before interest, tax, depreciation and amortisation (EBITDA)	£17.3m £27.8m
% Income from non-government sources	35% 33%

The University’s consolidated comprehensive surplus for the year was £83.3m (2022/23: surplus £38.3m). This reflects the impact of pension adjustments attributable to the University relating to both USS and NILGOSC pension schemes with a credit to the Statement of Comprehensive Income of £85.8m (2022/23: credit £25.2m). The underlying financial performance excluding the pension adjustment is a deficit of £2.5m (2022/23: surplus £13.1m). Non-government income grew from £91.6m to £102.6m, an increase of 12%. This is a result of the increase in both international and educational partnership tuition fee income.

Ulster University is operating in an environment where we receive less funding per student per year than comparable institutions in England. The Department for the Economy (DFE) has announced that they are going to undertake a review of HE funding in NI. Differential funding is shown in the table below:

----- Start of picture text -----
Real Terms Value of Funding per FTE
£13,000
£12,500
Gap £448
£12,000
Differential shortfall £6m
£11,500
£11,000
£10,500
£10,000
£9,500
£9,000
£8,500
2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24
England (previous method) NI England
----- End of picture text -----

Financial Statements for the Year Ended 31 July 2024

Sources of Income 2023/24

----- Start of picture text -----
45.0% 32.0% 6.7%
£93.9m £19.7m
Funding Other
Body Grants Income
13.2% 3.1%
£38.8m £8.9m
£131.8m Research Grants Investment Income,
Tuition Fees and and Other Donations
Education Contracts Contracts and Endowments
----- End of picture text -----

Income

Total income of £293.1m in 2023/24 increased by 4.1% on prior year primarily due to an increase in tuition fees, research grants and contracts income and improved investment returns (£6.4m versus £3.4m in 2022/23), with a slight offset arising from decreased Funding Body Grants.

Tuition Fee growth of 8% to £131.8m is due to an increase in both student numbers and educational partnership contracts activity.

Funding Body Grants fell 5.2% from 2022/23 primarily due to a decrease in grants for special initiatives following one offs received in 2022/23 not repeated this year. The recurrent grant for teaching and research activities from the Department for the Economy (DfE) also decreased slightly.

Research Income growth of 9% to £38.8m, reflects the increased level of awards particularly from the UK Research Councils over the past few years.

Other income of £19.7m (2022/23: £19.9m) remained relatively stable year on year. There was a fall in income received from the Competency Test Centre due to the change in Government visa regulations, mostly offset by higher income levels from residences, catering, conference and other income.

Expenditure

Total expenditure in 2023/24 was £220m (2022/23: £269m), including a pension credit movement of £78m in 2024 (2022/23: credit of £7.8m). Excluding pension adjustments staff costs of £162m represents 54 % of the total expenditure (2022/23: £151m equating to 55% of total expenditure).

Other operating expenses (excluding depreciation) total £105.5m (2022/23: £96.6m). This includes expenditure on utilities, maintenance of premises, administration, equipment, student accommodation, scholarships, bursaries and, library services. The year on year increase is mainly attributable to an increase in the University rates of £6.6m (2022/23 £3.7m) due to additional buildings now in use, significant increased software license costs and continued cost pressures due to inflation.

Impact of Pension Deficit

The Statement of Total Comprehensive Income (SOCI) for the year includes a net credit of £85.8m from the University’s pension liability movement (2022/23 credit £25.2m), which is in relation to a number of factors as follows:

The 2023 valuation of the USS pension scheme resulted in a surplus resulting in the release of £78m liability to the Statement of Comprehensive Income during the 2023/24 financial year (see note 18)
A £6.8m actuarial gain in the NILGOSC pension scheme; and
£1m interest receivable in relation to NILGOSC pension scheme.

The pension provisions credit is a non-cash movement and is not a measure of the University’s operational financial performance or surplus generated. It is simply the difference, year on year, of the estimated value of the assets and liabilities of the University’s defined benefit pension schemes.

Certain assumptions are used to value future liabilities of the pension scheme and the assets belonging to the pension scheme. These estimates reflect changes to the actuarial assumptions as a consequence of developments in the year.

The FRS 102 valuation of the NILGOSC pension scheme at 31 July 2024 resulted in an estimated net pension asset of £26.7m (2022/23 £18.9m).

Estates Capital Plan

The Estates capital work for 2023/24 has continued to focus on enhancing the experience for students, staff and the wider community.

The masterplan (focusing on long, medium and short term plans) is central to informing the development of the new Estate Strategy to be completed in 2024/25. In developing this Strategy, the Estates Services team continues to work closely with academic colleagues and external stakeholders on the development of City Deals for both Belfast Region and Derry City & Strabane Region (and Inclusive Futures Fund for Derry Region) and the Growth Deal for Causeway Coast and Glens Borough Council as well as the Taskforce set up by the Minister in relation to growth of the Derry~Londonderry campus.

Coleraine Campus

The following works have been progressed in 2024:

Refresh of Students Union (including new furniture)
Remedial works to address fire damage in a teaching laboratory in Block G4, with the final reinstatement to be commenced in Autumn 2024
Further site surveys to identify Reinforced Autoclaved Aerated Concrete (RAAC) resulting in a small element of immediate remedial works initiated in the Summer of 2024. Additional non-urgent remedial work is scheduled for 2024/25.

Design proposals have been progressed for the demolition of the end-of-life Tower building, and associated replacement landscaping, and a major internal remodelling of the main campus’s pedestrian area to enhance the campus experience for all users. Furthermore, the University will continue to complete essential longterm maintenance to the building fabric. An impairment charge relating to the Tower building of £1.1m has been made in the Statement of Comprehensive Income.

Derry/Londonderry Campus

The University purchased one building and one site in 2023/24, both located adjacent to the Derry/ Londonderry campus. The University Competence Test Centre (CTC) was relocated to the newly purchased building following a partial refurbishment.

A key element of the City’s Inclusive Futures Fund is the School of Medicine and Teaching Block, and the Strand Road site was purchased to facilitate this. A space brief for the new build has been developed and the outline business case has been submitted for review and approval to DfE.

To facilitate the development of a new teaching block, funded under the Republic of Ireland’s Shared Island initiative, the University has appointed an architect and town planning team to commence engagement with the local authority on the chosen site. In tandem, a process for the procurement of an integrated design team has been launched.

Construction of a new car park extension on the Duncreggan site, to facilitate the growth in campus numbers, was completed over summer 2024.

To assist with the campus legibility, further wayfinding signage has been installed.

Belfast Campus

The design team has been appointed for the Centre of Digital Health Technology, a City Deals funded project.

The University has completed the refurbishment of The Academy restaurant to align it more closely with a commercial training environment.

Jordanstown Campus

The new sports centre projects planning submission has been received with the project now returned from tender and being assessed.

The decluttering and clearance of the vacated campus is effectively complete with remaining elements being disposed of via public auction.

Other Jordanstown elements include the services rationalisation detailed design which is being completed to facilitate the disposal of large areas of the campus.

Financial Statements for the Year Ended 31 July 2024

Sustainability

At Ulster University, as leaders and change-makers we live in a world of ever-increasing complexity. Climate change is intensifying social and ecological crises across the world, making urgent action to address a range of sustainability issues more critical than ever. By adopting a people-centred approach we develop and deliver real-world sustainability outcomes across our campuses, in our curriculum and through our community and research impact.

In 2023/24 as part of putting people at the centre of our sustainability outcomes we completed a double materiality assessment to better understand what sustainability means to the University and its stakeholders. Key groups of stakeholders were consulted for the materiality assessment: the Leadership Team, Sustainability Steering Group, staff, students and external stakeholders using a range of engagement approaches including exploratory workshops, focus groups, surveys, and interviews. The materiality assessment identified key sustainability topics and classified these into a priority matrix indicating high or low materiality to the University along with recommendations for those topics of highest priority.

Campus

Like many organisations we acknowledge our operations need to go low carbon and high nature to tackle the twin crises of climate change and biodiversity loss together. We do this through our campus and nature positive outcomes.

In 2023/24 we commenced a campus Net Zero Buildings Project to outline options, costs, and carbon reductions for a representative sample of University building types. This project aimed to inform the wider campus decarbonisation masterplan. In conjunction with this project, we implemented a Capital Development and Retrofit Sustainable Design Procedure to provide a consistent approach for ensuring our capital development and retrofit building projects are aligned with the institutional drive for net zero, delivering buildings free of direct emissions and fossil fuel heating/cooling.

A Natural Capital Assessment and Account for our Coleraine campus was completed during the year which included an ecological footprint baseline and valuation of the ecosystem services provided by our campus grounds, woodlands, and wildflower meadows. The project outcome included the creation of a natural

capital account and balance sheet and a proposed enhancement plan to increase campus biodiversity.

Other nature positive outcomes in 2023/24 included:

Staff and students planted sunflower seeds on the Derry~Londonderry campus to create a ‘Campus of Hope’ supporting Derry City & Strabane District Council’s, district of HOPE initiative to foster a culture of optimism, resilience, and progress within the district;
Celebration of Earth Day with the official opening of the Students’ Union ‘Wellbeing Garden’ at Coleraine campus to foster a deeper connection with nature.
Ambassadors from the One Young World Summit planted wildflower seeds on the Belfast campus creating a rooftop ‘One Young World Garden’ to commemorate the Summit’s visit to Belfast.

Curriculum

Ulster University has an ongoing commitment to embed Education for Sustainable Development across the academy in curriculum design, graduate attributes and through a broad range of sustainability learning outcomes including:

Ulster University Business School made an official commitment to integrating sustainability into its business curriculum and research endeavours, by joining a global network of likeminded business schools around the world, marking a milestone in the University’s Principles for Responsible Management Education (PRME) journey;
Action Renewables, Northern Ireland’s leading renewable energy charity, committed funding for a new scholarship for students starting an MSc in Energy Storage at the Belfast campus exploring thermal and electrical storage technologies and how intermittent renewable energy sources can be mixed into the existing energy system; and
Participation in the SDG Teach In. At Ulster we worked on reaching more students and educators during the 2024 campaign with Ulster placed 3rd in the UK for the number of educators taking part in the campaign and placed 8th in the UK for the number of students reached.

Community and Research Impact

In 2023/24 we launched our new Research Strategy 2023-2028. The strategy commits to a research-led approach to inform colleagues, communities, policy makers and businesses on ways we can make the best use of our resources and tackle major societal challenges such as climate change, energy, food and water security and social inclusion and deprivation along with new technologies and solutions to build the sustainable world. Other community and research impact outcomes included:

A consortium led by Ulster University secured £4.625m in funding from the Arts and Humanities Research Council for one of four new ‘Green Transition Ecosystems’ across the UK. On Rathlin Island the ‘Future Island-Island’ project will work closely with the local community to advance its current Net Zero 2030 strategy. The focus will be on managing their specific waste types alongside the development of digital heritage and sustainable tourism applications.

The year ahead

For academic year 2024/25 our campus, curriculum and community and research commitments will focus on:

Integrating results from the materiality assessment into sustainability strategy, planning and reporting;
Developing a mix of net zero building projects to include increasing campus based renewable energy provision through ground and roof mounted PV schemes and geothermal feasibility investigations for ground source heating;
Seeking accreditation to the Students Organising for Sustainability Responsible Futures Framework, the only framework of its kind that maps out the organisation enhancement required to achieve whole institution engagement with sustainability learning; and
Further developing our community outreach activities and delivering our Research strategy.
Ulster University was the highest-ranking UK University and joint fifth in the world for University outreach activities in the Times Higher Education Impact Rankings 2024 in recognition of Ulster’s extensive, ongoing outreach activities. Additionally, in the category related to Sustainable Development Goal 17: Partnership for the Goals, Ulster was ranked joint 20th, with a relative position in the Top 1%.
All research outputs published on the University’s research portal PURE, are assigned UN Sustainable Development Goal signifiers relevant to the kind of outputs generated representing substantial and sustained outputs across all 17 SDG’s.
The University’s Dean of Sustainability and Corporate Social Responsibility was invited to take the role of Chair of the Derry and Strabane Climate Commission, which aims to achieve a sustainable, net zero and climate resilient City & District.

Financial Statements for the Year Ended 31 July 2024

How We Allocate Our Resources 2023/24

Cashflow and Financing

Net cash increased by £9.7m during the year. The movement in funds is summarised below:

Investments and short term deposits	2023/24 £m	2022/23 £m	Change £m
	127.2 102.2 25.0
Cash at bank and in hand	12.1 27.7 (15.6)
Bank and other loans	(160.4) (160.7) 0.3
Net cash	(21.1) (30.8) 9.7

The net cash inflow from operating activities for the year was £7.7m (2022/23: £29.1m), outflow of £22.6m (2022/23 £30.1m) for investing activites and outflow of £0.7m (2022/23 £0.7m) for financing. Throughout the year the Group operated with a cash surplus and in line with its banking covenants. All treasury decisions were undertaken within the framework of the University’s treasury policy. The underlying principle of this policy is that the University operates a low-risk approach in managing its investments and liquidity. All funds are placed with counter parties whose underlying credit rating is monitored against minimum criteria. Furthermore, an upper limit of investment in any one financial institution of £35m applies. The University’s Treasury Management policy was approved by General Purposes and Finance Committee in April 2015.

Endowment assets at the year-end were valued at £16m, an increase of £1m due to improving market values. The endowment funds are managed by Rathbones Investment Management.

During the year £15.0m cash was spent on acquiring fixed assets against which £8.3m of capital grants were received.

----- Start of picture text -----
£107.0m Total Staff Costs
Academic £81.7m
Departments
Total Other
£138.5m
Staff Costs: £91.2m
Other: £15.8m
£31.4m Total
Research Grants and £220.2m
Contracts
Staff Costs: £12.9m
Other: £18.5m
£51.2m
Premises
Staff Costs: £4.6m
Other: £46.6m
£45.3m
Administrative and
Central Services
Staff Costs: £22.4m
Other: £22.9m
£6.1m
Residences, Catering
and Conferences
Staff Costs: £1.4m
Other: £4.7m
£52.6m
Academic Services
Staff Costs: £26.4m
Other: £26.2m
(£78.0m)
Pension Adjustment
Staff Costs: (£79.8m)
Other: £1.8m
£4.6m
Other Spend
Staff Costs: £2.6m
Other: £2.0m
including income-generating operations
----- End of picture text -----

Cashflow Statement 2023/24

----- Start of picture text -----
£m
40
30
20
£7.7m
Cash Inflow from
10
£27.7m Operating Activity £12.1m
Opening Cash Closing Cash
1 Aug 2023 31 July 2024
0
£-22.6m £-0.7m
Other Investing Financing Activities
-10 Activities
-20
-30
----- End of picture text -----

EBITDA

One of the key targets which is being monitored as part of the financial strategy is the accumulation of cash to support our corporate ambitions. Two figures are being monitored. Firstly, Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA). EBITDA is a measure of operating surplus excluding major accounting adjustments and finance charges. It provides a good indicator of financial capability to service debt and/or fund capital from internally generated cash. The second figure is net cash from operating activity. This figure takes into account movement in working capital requirements. The following table shows the movement of these two cash indicators over the last five years.

----- Start of picture text -----
EBITDA to Cash Generated from Operating Activities 2019/20 to 2023/24
50,000
45,000
Operating Cash
40,000 Generation
35,000
30,000 EBITDA
25,000
20,000
15,000
10,000
5,000
2019/20 2020/21 2021/22 2022/23 2023/24
----- End of picture text -----

From the above it can be seen that the University continues to operate in a financially sustainable manner and can support investment in its infrastructure with EBITDA at £17.3m.

Financial Statements for the Year Ended 31 July 2024

Net Assets

Endowments

Total net assets £445m (2022/23: £361.8m) have increased by 23%. The net book value of fixed assets decreased by £15.8m to £541.0m (2022/23: £556.9m) which includes a full year of deprecation for the Greater Belfast Development. The net current assets position is strong at £98.5m (2022/23 £92.6m) with an increase of £9.7m in cash funds. The balance sheet reflects the University’s investments in the Greater Belfast Development and the subsidiary companies Innovation Ulster Limited and Studio Ulster Limited as well as maintaining investment in other campuses and the recovery of the pension fund.

In the year to 31 July 2024 the Endowment fund value grew to £16m, (2022/23: £15m) representing an increase of 6.7%.

The University holds the ethical policy of ensuring investments are made in a responsible manner. In support of this, the University in collaboration with the Students’ Union, made the decision to divest from fossil fuel companies and instead invest our endowment fund into more sustainable alternatives. Fossil fuel divestment is the removal of investment assets including stocks, bonds, and investment funds from companies involved in extracting fossil fuels, to reduce climate change by tackling its ultimate causes. The University has fully divested from these investment assets.

Future Financial Health

Key performance indicators are set out below with an assessment on progress against the financial strategy target with red meaning immediate action required, amber more work required and green on track.

When taken together these measures reflect the strong governance and effective management of the University’s resources in sustaining financial health in the short, medium and long term.

----- Start of picture text -----
Financial Sustainability 2024 2023
Comments
Indicators Actual Actual
(Deficit)/ Surplus after deducting
This indicates the level of return necessary for
pension provision movement as a % (0.9%) 4.7%
investment in capital.
of income
This is a measure of operating surplus excluding
accounting adjustments and finance charges. It is
Earnings before Interest, Tax,
a good indicator of financial capability to service
Depreciation and Amortisation £17.3m £27.8m
debt and/or capital expenditure from internally
(EBITDA)
generated cash.
Financial Strategy target sets EBITDA at £18m.
This measures our ability to fund short term cash
requirements.
Liquidity ratio 231 days 176 days
Financial Strategy target sets a minimium level at
42 days.
An indicator of financial strength to meet short term
Current assets to current liabilities 2.3:1 2.3:1
liabilities.
----- End of picture text -----

Financial Outlook

The financial results for 2023/24 were positive despite a number of challenges facing the HE sector across the UK – which saw a significant downturn in international student recruitment due to changes in visa regulations by Government.

These changes did impact the University but to a lesser extent than other universities across the UK due to the reliance of University financials on international students and the success of our partnership with QAHE.

Overall financial margin continued to be impacted as funding levels from Government do not keep pace with inflation while cost pressures continue due to inflationary increases and estate expansion continues to facilitate growth in Derry~Londonderry. Diversification of income remains a priority in order to reduce reliance on government funding, a strategy that has been successful to date. Plans are in place for the coming year to further build out capacity in this area with Studio Ulster Limited becoming operational and the expansion of the team working on partnership activity in the University.

Over the last five years the University cash flow from operating activities has averaged over £25m showing the University has a good track record of generating cash to invest in staff and the estate. This reflects the strong governance and effective management of the University’s resources in sustaining financial health.

The University continues to deliver against strategy ‘People, Place and Partnership’. The strategic commitment to our multi-campus University model is evident in the planned scale of investment across all campuses with funding and investment being committed through a range of Growth and City Deals, and the Irish Government commitment to the provision of capital funding for a new teaching block on the Derry~Londonderry campus. Growth continues at the Derry~Londonderry campus, demonstrating the University’s commitment to supporting delivery of the NI Executive’s commitment to expand provision.

The outlook for the 2024/25 financial year and beyond remains challenging as the University operates in an increasingly complex changing operating environment. Ongoing activity will seek to work in partnership with key stakeholders and funders to develop a financially sustainable pathway for the University to deliver against the ambitions of the University and the Northern Ireland executive.

David Clements Honorary Treasurer

Financial Statements for the Year Ended 31 July 2024

When managing risk, the University adheres to its Risk Management Policy which aims to protect the institution and its stakeholders from unforeseen or unacceptable exposure to risks. This policy forms part of the University’s internal control and corporate governance arrangements. It applies to strategic, departmental, faculty and project risk management.

Risk Management

The University’s approach to risk management provides assurance to the Senior Leadership Team, Audit and Risk Committee, Council and the Department for the Economy that those risks that threaten the achievement of the University’s strategic objectives are being actively identified, monitored and mitigated against. This systemic risk management process aims to provide:

Enhanced decision-making by forecasting important threats and opportunities;
A more effective use and allocation of resources;
A recognition of responsibility and accountability;
A more targeted, risk-based internal audit plan;
An enhanced communication and escalation of significant risks from within operational and tactical areas.

Process

Our Senior Leadership Team, (SLT), is, collectively and individually, responsible for effective risk management in their areas of responsibility, in accordance with the risk management policy and procedures. Key roles of the SLT are to:

Regularly review the institutional risk appetite statement and appetites assigned to the strategic priorities, for consideration and approval by the Audit and Risk Committee;
Regularly review all significant strategic risks faced by the University for consideration by Audit and Risk Committee and keep these risks under scrutiny;
Undertake training and development activities associated with risk management;
Ensure the adoption of risk management amongst their staff.

In addition;

All senior officers are required to undertake regular reviews and assessment of key risks within their areas of operation as part of routine management arrangements.
The SLT are responsible, as project leaders, for the risk management of major institutional projects.
The Chief Strategy and Finance Officer is responsible for ensuring that the University operates effective procedures relating to risk management and for undertaking formal reviews on behalf of Council of the risk management policy.
The Risk Management Committee supports the SLT by working to ensure that agreed risk management practices and procedures are embedded within the University providing a consistent approach to risk management and ensuring that University risks are monitored and reported on an on-going basis taking cognisance of emerging opportunities.
Staff within Audit, Risk and Business Continuity provide on-going training to risk owners in order to facilitate the effective operation of risk management across the University.
SLT undertakes periodical reviews of the Strategic Risk Register to ensure that it is operating within agreed risk tolerances and significant risks are being escalated and de-escalated on a timely basis.
Audit, Risk and Business Continuity regularly produce reports for all risk owners highlighting any significant risks across the University that relate to their area of responsibility.

Risk registers

Risk registers exist at three different levels across the University: strategic; tactical (portfolio level); and operational (faculty and departmental). There are also project risk registers in place for major projects, e.g. City Deals.

Integration with Internal Audit

Our internal audit strategy is developed around the University’s strategic risks which are listed below, as well as those risks facing the sector. The annual audit plan of reviews across key areas further supports our risk management processes.

An overview of key strategic risks, by category, is provided below:

Regional balance – the risk that the University’s ability to achieve campus balance as set out in the University strategy is negatively impacted due to the pace, scale and complexity of change required.

Financial sustainability – this risk is largely focused on the University’s ability to deliver on planned income diversification activities at the required scale and/or margin. These activities are necessary to mitigate against the impacts of level and scale of government funding for HE, policy changes impacting international student recruitment, and wider geo-political events impacting University income opportunities and cost base.

Cyber – the ever present risk of a cyber-attack requires ongoing vigilance and investment in Digital infrastructure.

People – linked to staff wellbeing and our ability to fill vacancies on a timely basis.

Compliance – taking into account the significant compliance obligations for the University including Health and Safety, Data/ Information Governance, statutory returns to HESA (including Data Futures), CMA compliance and governance obligations in relation to research.

Sustainability – based on the risk that the University has failed to plan sufficiently to meet environmental sustainability obligations.

Financial Statements for the Year Ended 31 July 2024

The University is committed to promoting best practice in all aspects of corporate governance. The following statement aims to provide readers of the Financial Statements with an understanding of the governance arrangements applied by Council, the governing body of the University.

The University endeavours to structure its governance arrangements and conduct its business in accordance with the seven principles identified by the Committee on Standards in Public Life (selflessness, integrity, objectivity, accountability, openness, honesty and leadership) and in line with the Committee of University Chairs (CUC) Higher Education Code of Governance (September 2020) and its own Statement of Primary Responsibilities (see pages 24 to 25).

The University is an autonomous body, whose legal status derives from a Royal Charter granted in 1984. The University’s objects, powers and framework of governance are set out in the Charter and supporting Statutes, which are currently under review. Council also seeks to comply with the Charity Commission’s guidance on the reporting of public benefit and the supplementary public benefit guidance on the advancement of education.

Council meets formally at least five times each year. It is responsible for the ongoing strategic direction of the University, the stewardship of its revenue and property, and the general conduct of its affairs. Council works closely with the Vice-Chancellor and his Senior Leadership Team (SLT) to set the institutional strategy and purpose, and the SLT ensures that steps are taken to deliver the institutional goals, supported by elective systems of control and risk management.

Under its Delegated Authority Framework, Council delegates some of its powers and responsibilities to its core Committees. The Framework provides clarity on those matters reserved to Council for collective decision to include, for example, approval of the University’s Strategic Plan, and those which it delegates to its Committees and to the Vice-Chancellor. Each Committee is provided with a clear remit and written Terms of Reference stating the extent and limits of its responsibilities and authority. The key governance Committees are Senate; the Audit & Risk Committee; the Resources Committee; the People Committee (formerly the Governance, Nominations and Remuneration Committee); the Belfast Campus Development Committee; and the City Deals and Special Projects Committee).

Further detail on Council and its core Committees is set out overleaf.

Council

The Council, which met seven times during the year, has a membership of eighteen, the majority of whom (thirteen) are appointed from outside the University. With the exception of the Students’ Union President, Council members serve for a maximum of two terms of four years. Council has two Pro-Chancellors, who act as Chair and Deputy Chair of Council. The Pro-Chancellors are supported in this role by the Honorary Treasurer, who is also appointed from among the external members of Council. Both the Vice-Chancellor and the Students’ Union President are ex-officio members of Council and the membership also includes three elected members of University staff. With the exception of the Vice-Chancellor, whose emoluments are disclosed in Note 7, none of the members receive any payment, other than the reimbursement of reasonable expenses, for the work that they do in their capacity as members of Council.

The membership of Council, during the 2023/24 academic year is as follows:

Ex Officio Members:
Dr J Pyper	Pro-Chancellor and Chair of Council (from 01 July 2019)
Dr E Way	Second Pro-Chancellor (from 20 June 2020)
Mr D Clements	Honorary Treasurer (from 01 August 2016)
Professor P Bartholomew	Vice-Chancellor (from 17 August 2020)
Ms R Allen	President of the Students’ Union (from 01 June 2023 - 30 June 2024)
External Members:
Mr P Lobban	Appointed 01 October 2016
Dr P McNaney	Appointed 01 October 2016
Dr J Stuart	Appointed 01 October 2016 (until 15 September 2023)
Mr P Sheridan	Appointed 09 November 2018
Mrs M Lindsay	Appointed 09 November 2018
Mr R Sloan	Appointed 15 February 2019
Mr A Moore	Appointed 09 December 2020
Ms J Taggart	Appointed 01 January 2021 (until 18 July 2024)
Mr C Conway	Appointed 01 March 2023
Mr J Healy	Appointed 01 March 2023
Elected Staff Members:
Ms G Horgan	Appointed 15 February 2019
Mr E Friel	Appointed 01 October 2020 (until 23 October 2023)
Professor A Gallagher	Appointed 01 October 2020

Financial Statements for the Year Ended 31 July 2024

The Audit and Risk Committee

The Audit & Risk Committee, chaired by Pro-Chancellor Dr Elaine Way, met five times during the year, with the University’s Internal and External Auditors in attendance at all meetings. The Committee considered detailed reports together with recommendations for the improvement of the University’s systems of internal control and management’s responses and implementation timescales. While Senior Management attend meetings of the Audit & Risk Committee as necessary, they are not members of the Committee, and the Committee meets both the External and Internal Auditors in private session at least once each year.

The Resources Committee

The Resources Committee, chaired by the Honorary Treasurer David Clements, met seven times during the academic year. The Committee recommends to the Council the University’s annual revenue and capital budgets for the University group and monitors performance in relation to the approved budget. The Committee also has, inter alia , oversight of matters pertaining to the estate, information technology and people and culture.

The People Committee

The People Committee, chaired by Dr Jenny Pyper, Chair of Council, met five times during the academic year. The Committee brings together the responsibilities of remuneration, nominations and people and culture. In this context, it reviews annually the salaries of the senior staff of the University including that of the Vice-Chancellor. The review takes account of any external earnings, including consultancy, by senior staff as well as the salary norms within the higher education sector for a wide variety of senior posts. The Committee is also responsible for recommending the appointment and re-appointment of members to Council and its Committees, together with University appointments on subsidiary companies.

The Belfast Campus Development Committee

The Belfast Campus Development Committee, chaired by Dr Peter McNaney, met six times during the academic year. The Committee is responsible to Council for oversight of all aspects of the Belfast Campus building development and the relocation of staff and students to the new Campus.

The City Deals and Special Projects Committee

The City Deals and Special Projects Committee chaired by Mr Peter Sheridan, met five times during the academic year. The Committee is responsible to the Council for oversight in relation to the governance and assurance frameworks underpinning City Deal and Special Projects, with the special projects falling within the scope of the Committee to be determined, from time to time, by Council.

The Vice-Chancellor

The Vice-Chancellor, as principal academic and administrative officer of the University, has responsibility to the Council for maintaining and promoting the efficiency and good order of the University. Under the terms of the formal Financial Memorandum between the University and the Department for the Economy (DfE) (currently under review), the Vice-Chancellor is the designated Chief Accounting Officer of the University and, in that capacity, can be summoned to appear before the Public Accounts Committee of the Northern Ireland Assembly.

The Senate

The Senate, chaired by the Vice-Chancellor, is the academic authority of the University. It is composed mainly of academic staff but provision is also made for membership of non-academic staff and students. Its role is to direct and regulate the teaching and research work of the University.

As de facto Chief Executive of the University, the ViceChancellor exercises considerable influence upon the development of institutional strategy, the identification and planning of new developments and the shaping of the institutional ethos. The Deputy Vice-Chancellor, University Provost, Chief Strategy and Finance Officer, Chief People Officer, Pro-Vice-Chancellors, Executive Deans of Faculties, Professional Service Directors and the University Secretary all contribute in various ways to these aspects of the work, but the ultimate responsibility for what is done rests with the Vice-Chancellor. The executive structure of the University is represented by the Senior Leadership Team (SLT), which comprises of the Vice-Chancellor (Chair), the Deputy ViceChancellor, the University Provost, the Pro-Vice-Chancellors, the Chief People Officer, the Chief Strategy and Finance Officer and the Pro-Vice Chancellors & Executive Deans.

The University maintains a Register of Interests of Members of the Council and Senior Officers, which may be consulted by arrangement with the University Secretary. The Register of Members Interests of the Council is available online on the University’s governance webpages.

The Office of the University Secretary provides the secretariat to the Council. Any enquiries about the constitution and governance of the University should be addressed to the University Secretary universitysecretary@ulster.ac.uk.

Financial Statements for the Year Ended 31 July 2024

As the governing body of Ulster University, we, the Council, have responsibility for maintaining a sound system of internal control that supports the achievement of policies, aims and objectives, while safeguarding the public and other funds and assets for which we are responsible in accordance with the responsibilities assigned to the governing body in in the Charter and Statutes and the Financial Memorandum with the Department for the Economy (DfE).

The Council is of the view that there is an ongoing process for identifying the principal risks to the achievement of policies, aims and objectives; to evaluate the nature and extent of those risks; and to manage these efficiently, effectively and economically. Those procedures have been in place for the year ended 31 July 2024.

The following actions have taken place in relation to the risk management policy and for reviewing the effectiveness of the systems of internal control:

The Council met seven times in the year to consider the strategic direction and plans of the University and to monitor performance against those plans;
There is clear definition of the responsibilities of and authority delegated to, committees of the Council and the Executive;
The University’s current strategic plan sets the framework of strategic aims and objectives against which risks are assessed and performance is monitored and reported;
A Strategic Risk Register, which incorporates the key risks at institutional level, is maintained;
The Senior Leadership Team formally reviews and assesses high risks bi-monthly;
All faculties and departments, as part of their planning, maintain and review their risk registers;
The Audit and Risk Committee receives reports from the independent Internal Auditors on the adequacy and effectiveness of the University’s systems of internal control with recommendations for improvement, as appropriate.

In addition to these, other actions were taken in-year to enhance internal control. The work of the Internal Audit service has been informed by analysis of the operational, business and financial risks to which the University is exposed and upon which Internal Audit activity for 2023/24 was based. The Internal Audit service operates to agreed standards and submits regular reports, which include the Head of Internal Audit’s independent opinion on the adequacy and effectiveness of the system of internal controls, together with recommendations for improvement. Deloitte (NI) Ltd were appointed as the University’s internal auditors in June 2022 on a three-year contract.

Our reviews of the effectiveness of the system of internal control are informed by the work of the Internal Auditors and the SLT within the institution who have responsibility for the development and maintenance of the internal control framework and by comments made by the External Auditors in their year-end management letter and other reports. The Audit and Risk Committee monitors the effectiveness of the systems of internal control on Council’s behalf. Any system of internal control can, however, only provide reasonable, but no absolute assurance against material loss or misstatement.

In accordance with the Statutes, the Council, as a governing body, is responsible for the administration and management of the affairs of the University, including ensuring an effective system of internal control, and is required to present audited Financial Statements for each financial year.

Financial Statements for the Year Ended 31 July 2024

The Council is responsible for ensuring the maintenance of proper accounting records which disclose with reasonable accuracy at any time the financial position of the University and which enable it to ensure that Financial Statements are prepared in accordance with the Statutes, the Statement of Recommended Practice on Accounting in Higher Education Institutions and other relevant accounting standards.

In addition, within the terms and conditions of a Financial Memorandum agreed between the Department for the Economy and the Council of the University, the Council, through its designated office holder, is required to prepare Financial Statements for each financial year which give a true and fair view of the state of affairs of the University and of the surplus or deficit and cash flows for that year.

In causing the Financial Statements to be prepared, the Council has ensured that:

Suitable accounting policies are selected and applied consistently;
Judgements and estimates are made that are reasonable and prudent;
Applicable accounting standards have been followed, subject to any material departures disclosed and explained in the Financial Statements;
Financial Statements are prepared on the going concern basis unless it is inappropriate to presume that the University will continue in operation. The Council is satisfied that the University has adequate resources to continue in operation for the foreseeable future; for this reason the going concern basis continues to be adopted in the preparation of the Financial Statements.

The Council has taken reasonable steps to:

Ensure that funds from DfE are used only for the purposes for which they have been given and in accordance with the Financial Memorandum with the Department and any other conditions which the Department may from time to time prescribe;
Ensure that there are appropriate financial and management controls in place to safeguard public funds and funds from other sources;
Safeguard the assets of the University and prevent and detect fraud;
Secure the economical, efficient and effective management of the University’s resources and expenditure.

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

A comprehensive medium and short-term planning process, supplemented by detailed annual income, expenditure, and cash flow budgets;
Regular reviews of financial results involving variance reporting and updates of forecast outturns;
Clearly defined and formalised requirements for approval and control of expenditure, with investment decisions involving capital or revenue expenditure being subject to formal detailed appraisal and review by the Resources Committee on behalf of the Council;
A Financial Procedures Manual, detailing financial controls and procedures;
A professional Internal Audit team whose annual programme is approved by the Audit and Risk Committee.

The Audit and Risk Committee, on behalf of Council, has reviewed the effectiveness of the University’s system of internal financial control. Any system of internal financial control can, however, only provide reasonable, but not absolute, assurance against material misstatement or loss.

Financial Statements for the Year Ended 31 July 2024

The Council is the governing body of the University and its members are the trustees in relation to the University’s status as an exempt charity. The Council is responsible for overseeing the University’s activities, determining its future direction, and fostering an environment in which institutional objectives are achieved.

This Statement is based on the model statement contained in the Higher Education Code of Governance, published by the Committee of University Chairs in September 2020, adapted to reflect the powers and responsibilities that the Council derives from its approved Charter and Statutes.

Consistent with the University’s constitution, the primary responsibilities of the University Council are as follows:

1. To set and agree the mission, strategic vision and values of the University with the Executive, in accordance with its primary objectives of learning, teaching and research.

2. To provide oversight and accountability for the University’s arrangements for governance and risk management.

3. To approve and keep under review the University’s long-term academic and strategic plans, including key performance indicators, ensuring that these meet the interests of stakeholders, especially staff, students, alumni and other beneficiaries.

4. To ensure that processes are in place to monitor and evaluate the performance and effectiveness of the University against the strategy, plans and approved key performance indicators, which should be, where possible and appropriate, benchmarked against other comparable institutions.

5. To delegate authority to the Vice-Chancellor, as Head of the Institution, for the academic, corporate, financial, estate and human resource management of the University.

6. Through an effective Scheme of Delegated Authority, regularly reviewed by Council, to establish and keep under review the policies, procedures and limits within such management functions as shall be undertaken by, and under the authority of, the ViceChancellor.

7. To ensure the establishment and monitoring of systems of control and accountability, including financial and operational controls, risk assessment, value for money arrangements and robust procedures for handling internal grievances and managing conflicts of interest.

8. To establish processes to monitor and evaluate the performance and effectiveness of Council itself.

9. To conduct its business in accordance with best practice in Higher Education corporate governance, the University’s agreed values, and with the principles of public life drawn up by the Committee on Standards in Public Life.

10. To safeguard the good name and values of the University.

11. To appoint the Vice-Chancellor as Chief Academic and Administrative Officer of the University, and as its Accounting Officer, and to put in place suitable arrangements for monitoring their performance.

12. To appoint a Secretary to Council and to ensure that, if the person appointed has managerial responsibilities in the institution, there is an appropriate separation in the lines of accountability.

13. To be the employing authority for all staff in the University and to be accountable for ensuring that an appropriate people and culture strategy is established.

14. To seek assurance that the University is meeting the conditions of funding as set by regulatory and funding bodies and other major University funders, and that the use of funds is in line with the principles of regularity, propriety and value for money.

15. To be the principal financial and business authority of the University, to ensure that proper books of account are kept, to approve the annual budget and financial statements, and to have overall accountability for the University’s assets, property and estate.

16. To be the University’s legal authority and, as such, to ensure systems are in place for meeting all its legal obligations, including those arising from contracts and other legal commitments made in the University’s name. This includes accountability for health, safety, wellbeing and security and for equality, diversity and inclusion.

17. In consultation with Senate, to receive assurance that adequate provision has been made for the general welfare of students.

18. To ensure that the procedures in place for managing students, including disciplinary procedures, are fair and equitable.

19. To act as trustee for any property, legacy, endowment, bequest or gift in support of the work and welfare of the University.

20. To determine regulations for the custody and use of the common seal of the University.

21. To approve, for consideration by Privy Council, changes to the Charter and Statutes and to ensure that the institution’s constitution is always followed, and that appropriate advice is available to enable this to happen.

22. To promote a positive culture which supports inclusivity and diversity across the institution, including within Council’s own composition.

23. In partnership with Senate, to maintain and protect the principles of academic freedom and freedom of speech legislation.

24. To ensure that all students and staff have appropriate opportunities to engage with the governance and management of the institution by operating in an open, honest and accountable manner.

25. To ensure the University is appropriately accessible and relevant to its local communities and is open to engagement with local communities in identifying its role in delivering public/community benefit and economic civic duties.

Financial Statements for the Year Ended 31 July 2024

Opinion

We have audited the financial statements of Ulster University (‘the parent institution’) and its subsidiaries (the ‘group’) for the year ended 31 July 2024 which comprise the Group and University Statement of Comprehensive Income, the Group and University Statement of Changes in Reserves, the Group and University Balance Sheets, the Group Cash Flow Statement and the related notes 1 to 28, 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 FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, Ulster University’s group financial statements and parent institution financial statements (the “financial statements”):

Give a true and fair view of the state of the group’s and of the parent institution’s affairs as at 31 July 2024 and of the group’s and of the parent institution’s income and expenditure, gains and losses and changes in reserves, and of the group’s cash flows for the year then ended;
Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law); and
Have been properly prepared in accordance with the Department for the Economy’s Accounts Direction to Higher Education Institutions for 2023-24 Financial Statements.

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 parent institution 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

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and parent institution’s ability to continue as a going concern for the period to 31 July 2026.

Our responsibilities and the responsibilities of the University Council’s with respect to going concern are described in the relevant sections of this report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the group’s ability to continue as a going concern.

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 University Council are responsible for the other information contained within the annual report.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in this report, we do not express any form of assurance conclusion thereon.

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

Opinion on other matters prescribed by the Financial Memorandum (Part 1) between the Department for Employment and Learning (now the

Department for the Economy) and the University of Ulster (“Financial Memorandum”)

In our opinion, based on the work undertaken in the course of the audit, in all material respects:

Funds from whatever source administered by Ulster University have been applied properly to those purposes and managed in accordance with relevant legislation; and
Funds provided by Department for the Economy have been applied in accordance with the Financial Memorandum and any applicable terms and conditions attached to them.

Matters on which we are required to report by exception

Under the Funding Council’s Financial Memorandum, the University is required to include a Statement of Internal Control within the annual financial statements. We are not required to audit this statement, or to form an opinion on the effectiveness of risk management and control procedures but have a duty to report by exception whether this statement is inconsistent with our knowledge of the University.

We have nothing to report in this regard.

Financial Statements for the Year Ended 31 July 2024

Responsibilities of the Council

As explained more fully in the Statement of the Council’s Responsibilities set out on page 22, the University 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 University 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 University Council is responsible for assessing the group’s and the parent institution’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the University Council either intend to liquidate the group or the parent institution or to cease operations, or have 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.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of noncompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

Our approach was as follows:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and determined that the most significant are FRS 102, the Statement of Recommended Practice for Further and Higher Education and the Financial Memorandum between the Department for Employment and Learning (now the Department for the Economy) and the University of Ulster and the Accounts Direction to Higher Education Institution requirements.
We understood how Ulster University is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquires through reading the University Council minutes and papers provided to the Audit and Risk Committee.
We assessed the susceptibility of the group and parent institution financial statements to material misstatement, including how fraud might occur by considering the risk of management override and identified the recognition of tuition fee, research grants and other income as fraud risks.
Based on this understanding we designed our audit procedures to identify noncompliance with such laws and regulations. Our procedures involved inquiring of management, internal audit and those charged with governance, including obtaining and reviewing supporting documentation relating to the group and parent institution’s policies and procedures relating to:

Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
Our procedures also included discussions amongst the engagement team regarding how and where fraud might occur in the Financial Statements and any potential indicators of fraud. As part of this discussion, we identified the potential for fraud in the following areas: revenue recognition and management override of controls.

In addition to the above, our procedures to respond to the identified risks included the following:

Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations discussed above;
year end to confirm that they had been recorded in the correct financial year. Our testing also included agreeing a sample of these income streams to supporting agreements or letters, remittances and the receipt of payment in bank statements, and the testing of certain revenue journals to assess recognition in the current year.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at https://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 Council of Ulster University, as a body, in accordance with the Charters and Statutes of the University. Our audit work has been undertaken so that we might state to the Council those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Ulster University and the Council as a body, for our audit work, for this report, or for the opinions we have formed.

Reading minutes of meetings of those charged with governance and the University Council;
In addressing the risk of management override of controls we tested specific journal entries identified by applying risk criteria to the entire population of journals. For each journal selected, we tested specific transactions back to source documentation to confirm that the journals were authorised and accounted for appropriately. We reviewed significant accounting estimates for management bias and noted that we did not identify any significant unusual transactions in the financial statements;

Michael Christie (Senior statutory auditor) for and on behalf of Ernst & Young LLP, Statutory Auditor Belfast 27 November 2024

In addressing the risk of improper recognition of revenue we performed a substantive analytical review over tuition fee income and focused our testing on those items of income that fell outside of our expectations. We tested a sample of research income and education contracts (including any associated deferred income) to assess performance related conditions and recognition in the correct year. For a sample of deferred income items (also covering additions and releases), we confirmed that income had been recognised in the correct financial year and that conditions had been met. We also tested a sample of income transactions before and after the

Financial Statements for the Year Ended 31 July 2024

1. Basis of Preparation

Ulster University (“the University”) is an independent educational charity, registered with the Charity Commission for Northern Ireland, whose legal status derives from a Royal Charter granted in 1984. The address of the University’s registered office is Cromore Road, Coleraine, BT52 1SA.

The Financial Statements have been prepared in accordance with the Statement of Recommended Practice “Accounting for Further and Higher Education 2019” and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (“FRS 102”). The financial statements are prepared under the historical cost convention, as modified by the revaluation of certain land and buildings. The University is a public benefit entity and therefore has applied the relevant public benefit requirement of FRS 102.

The financial statements are presented in Sterling (£) with all values rounded to the nearest £1,000 except when otherwise indicated.

Going Concern

The University and Group’s financial statements have been prepared on a going concern basis.

The University has prepared a 5 year strategic plan and financial forecasts. The new Belfast campus opened in September 2022 and the long-term loan agreement with the Strategic Investment Board to assist the funding of the Greater Belfast Development is fully drawn down.

The University has prepared detailed monthly cashflow forecasts to 31 July 2026, based on conservative estimates of student numbers and in line with its Strategic Plan, which show the University operating within the terms of its funding facilities and sufficient cash resources throughout this period. The cashflow demonstrates the University will continue to maintain cash reserves over the period to 31 July 2026 and meet all its obligations.

On this basis, Council has a reasonable expectation that the University and its subsidiary undertakings have adequate resources to continue in operational existence for the period to 31 July 2026. Accordingly, it continues to adopt the going concern basis in preparing the financial statements.

2. Consolidation

The consolidated Financial Statements include the University and its subsidiary undertakings Innovation Ulster Limited and Studio Ulster Limited. The results of the subsidiary companies are included in the consolidated Statement of Comprehensive Income from the date of incorporation or acquisition or up to the date of disposal. Intra-Group sales and profits are eliminated fully on consolidation.

The Ulster University’s Students’ Union is constituted as an independent body and therefore in accordance with FRS 102, its financial statements are not consolidated with the Financial Statements of the University because the University does not control those activities.

The joint venture results of Branch Campus (London & Birmingham) Limited, C-TRIC Limited (formerly ABC Research & Innovation Limited) and NI Composites O&M LLP (NICOM) and the investment in NIACE Limited are not consolidated in the Financial Statements on the grounds of materiality.

3. Recognition of Income

Income from the sale of goods and services is credited to the Statement of Comprehensive Income in line with the provision of the associated goods and services.

Academic Fee income is stated gross of any expenditure and credited to the Statement of Comprehensive Income over the period of students’ study. Where the amount of tuition fee is reduced, income receivable is shown net of the discount. Bursaries and Scholarships are accounted for gross of expenditure and are not deducted from income.

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

Funds the University receives and disburses as paying agent on behalf of a funding body are excluded from the Statement of Comprehensive Income where the University is exposed to minimal risk or enjoys minimal economic benefit related to the transaction.

Grant Funding – Revenue Grants

Revenue grants are recognised as income when the University is entitled to the income and performance related conditions have been met. Income received in advance of performance related conditions being met is recognised as deferred income within creditors on the balance sheet and released to income in line with such conditions being met.

Grant Funding – Capital Grants

Where tangible fixed assets are acquired with the aid of Government capital grants, these grants are recognised as deferred income within creditors and released to income over the expected useful economic life of the asset. All other capital grants are recognised in income when the University is entitled to the funds subject to any performance conditions being met.

Other Income

Income from specific endowments and donations, research grants and contracts and other services rendered is included to the extent of the expenditure incurred during the year, together with any related contributions towards overhead costs. All income from short-term deposits and general endowment asset investments is credited to the Statement of Comprehensive Income on a receivable basis. All income from other sources is credited to the Statement of Comprehensive Income on an accruals basis.

Financial Statements for the Year Ended 31 July 2024

Donations and Endowments

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

Donations with no restrictions are recognised in income when the University is entitled to the funds. Investment income and appreciation/depreciation of endowments are recorded in income in the year in which they arise.

There are four types of donations and endowments identified within reserves:

Restricted donations – the donor has specified that the donations must be used for a specific objective.
Unrestricted permanent endowments – the donor has specified that the fund is to be permanently invested to generate an income stream for the general benefit of the University.
Restricted expendable endowments – the donor has specified a particular objective for the use of the funds and the University can convert the endowed capital into income.
Restricted permanent endowments – the donor has specified that the fund is to be permanently invested to generate an income stream to be applied to a particular objective.

4. Pension Schemes

The two principal pension schemes for the University’s staff are the University’s Superannuation Scheme (USS) and the Northern Ireland Local Government Officers Superannuation Committee.

Pension Fund (NILGOSC). The funds are valued every three years by actuaries using the aggregate method, the rates of contribution payable being determined by the trustees on the advice of the actuaries.

The USS scheme is a defined benefit scheme but it is not possible to identify the University’s share of underlying assets and liabilities in the USS scheme. As such, contributions made to the scheme are treated as if it were a defined contribution scheme and charged to the Statement of Comprehensive Income. A liability is recorded within the provisions for any contractual commitment to fund past deficits within the USS scheme.

The NILGOSC scheme is a multi-employer scheme and the underlying assets and liabilities are disclosed in the Balance Sheet. The difference between the market value of the scheme’s assets and the actuarially assessed present value of the scheme’s liabilities, calculated using the projected unit credit method, is disclosed as an asset or liability on the balance sheets.

The amount charged to the Statement of Comprehensive Income is the actuarially determined cost of pension benefits promised to employees earned during the year plus any benefit improvements granted to members during the year.

The expected return on the pension scheme’s assets during the year and the increase in the scheme’s liabilities due to the unwinding of the discount during the year are shown as financing costs in the Statement of Comprehensive Income.

Any difference between the expected return on assets and that actually achieved and any changes in the liabilities due to changes in assumptions or because actual experience during the year was different to that assumed, are recognised as actuarial gains and losses in the Statement of Comprehensive Income.

5. Employment Benefits

Any unused employment benefits for staff with contractual benefits are accrued and measured as the additional amount the University expects to pay as a result of unused entitlement.

6. Foreign Currencies

Transactions denominated in foreign currencies are recorded at the rate of exchange ruling at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at year end rates. The resulting exchange differences are dealt with in the determination of Statement of Comprehensive Income for the financial year.

7. Freehold Land and Buildings

The University has adopted the transitional arrangements on conversion to FRS 102 and has revalued land and buildings as at 31 July 2014 on three campuses, namely Coleraine, Derry/Londonderry and Belfast. Land and buildings that have been revalued to fair value prior to the date of transition to FRS 102, are measured on the basis of deemed cost, being the revalued amount at the date of the revaluation.

Following the transfer of the Jordanstown campus to Belfast, the value of the land and buildings at Jordanstown is reviewed annually.

8. Assets Under Construction

Assets under construction are accounted for at cost, based on the value of architects’ certificates and other direct costs, incurred to 31 July. They are not depreciated until they are brought into use.

9. Equipment

Equipment, including software and related software development costs, costing less than £25,000 per individual item or group of related items, is written off in the year of acquisition.

All other equipment including software and related development costs are capitalised. Capitalised equipment (other than research grant equipment) is stated at cost and depreciated on a straight line basis over its expected useful life, assumed to be four years. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for intended use.

Where equipment is acquired with the aid of a specific research grant it is capitalised and depreciated over the shorter of its estimated useful life or the remaining life of the research grant, with the related grant being credited to a deferred capital grant account and released to the Statement of Comprehensive Income over the remaining life of the related grant.

Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for intended use.

Land is held freehold and is not depreciated as it is considered to have an indefinite useful life. Buildings are depreciated on a straight line basis over their expected useful lives, up to a maximum of 60 years.

Financial Statements for the Year Ended 31 July 2024

10. Fixed Asset Investments

(a) The University’s Endowment Fund is included in the Balance Sheet at market value and is administered by an external fund manager. Investments in subsidiary companies are shown at the lower of cost and net realisable value. Impairment reviews are performed by the directors when there has been an indication of potential impairment. Any changes in fair value are taken directly to the Statement of Comprehensive Income.
(b) Fixed Asset Investments through Innovation Ulster Limited and Ulster Equity Partnership.

From the menu of valuation methodologies cited by the International Private Equity and Venture Capital Valuation Guidelines (2022 edition) the company values its fixed asset investments (which comprise trade investments) as follows:

12. Stocks

Stocks, which are generally consumable in nature, are expensed to the Statement of Comprehensive Income in the year of purchase.

13. Cash and Cash Equivalents

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

Cash equivalents comprise of short term assets readily disposable but not within 24 hours without penalty. They include short term deposits and other instruments held as part of the University’s treasury management activities. They exclude any such assets held as Endowment Asset Investments.

Price of Most Recent Investment (PMRI); or
Multiple of earnings or revenues; or
Net asset basis

If valuers consider that the passage of time since the date of the last investment diminishes the appropriateness of that methodology, then a modified version of that valuation may be used which refers to industry benchmark valuations or a company based milestone analysis, i.e. performance against technical or financial targets of milestones.

It is expected that the company will use the PMRI basis where the investment has been made within 12 months, otherwise the Net Assets basis will be used.

Any changes in fair value are taken directly to the Statement of Comprehensive Income.

11. Current Asset Investments

Current asset investments are included at the lower of cost and net realisable value.

14. Provision for Bad Debts

Bad debts are written off when recognised as irrecoverable. Debts which are considered doubtful are provided for in the accounts.

15. Leases

Leases in which the University assumes substantially all the risks and rewards of ownership of the leased asset are classified as finance leases. Leased assets acquired by way of finance lease are stated at an amount equal to the lower of their fair value and the present value of the minimum lease payments at inception of the lease, less accumulated depreciation and less accumulated impairment losses.

Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.

The cost of operating leases is charged to the Statement of Comprehensive Income on a straight line basis over the lease term.

16. Provisions

Provisions are recognised when the University has a present, legal or constructive obligation as a result of a past event and 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 obligations.

17. Maintenance of Premises

The University has a 5 year planned maintenance programme which is reviewed on an annual basis. Actual expenditure on maintenance is charged to the Statement of Comprehensive Income in the period it is incurred.

18. Taxation Status

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 Section 287 CTA 2009 and sections 471, 478, 488 CTA 2010 (formerly S505 of ICTA 1988) or section 256 of the taxation of Chargeable gains Act 1992 to the extent that such income or gains are applied to exclusively charitable purposes. The University is registered as a charity with HM Revenue and Customs and with the Northern Ireland Charity Commission. The University receives no similar exemption in respect of Value Added Tax. Innovation Ulster Limited and Studio Ulster Limited, subsidiaries of the University, have no charitable status and can therefore be liable to Corporation Tax on chargeable profits.

19. Reserves

Income and expenditure reserves are classified as restricted or unrestricted. Restricted endowment reserves include balances which through endowment to the University are held in a permanently restricted fund which the University must hold in perpetuity.

The University holds a revaluation reserve resulting from revaluation of fixed assets on conversion to FRS102 as at 31 July 2014.

20. Subsidiary Accounting Policies

The subsidiaries of the University adopts the same accounting policies of the University.

21. Judgements and Key Sources of Estimation Uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Financial Statements for the Year Ended 31 July 2024

Carrying Value of Investments

The Group has investments, as disclosed in Note 12, valued using the menu of valuation methodologies cited by the International Private Equity and Venture Capital Valuation Guidelines. These methodologies require the use of judgement, including assessing the most appropriate methodologies to be used, whether changes in methodologies are required due to the passage of time since the date of the last investment and in certain methodologies the assumptions to be used. Due to the complexity of these methodologies, and the underlying assumptions used, such estimates are subject to significant uncertainty. Any diminution in value is recognised in profit or loss.

NILGOSC Pension Benefits

The cost of the NILGOSC defined benefit pension plans is determined using actuarial valuations, as disclosed in Note 22. The actuarial valuation involves making assumptions about discount rates, future salary increases, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and the long term nature of these plans, such estimates are subject to significant uncertainty. In determining the appropriate discount rate, management considers the yield of high quality bonds of the same term and currency as the future cashflows.

Judgement is also required in respect of the amount of the NILGOSC pension asset recognised at 31 July 2024 of £26.7m (see Note 22). In the absence of specific guidance in FRS 102 the assessment of the recognition of this asset been determined using the applicable requirements of International Accounting Standards Board’s IFRIC 14 “IAS19—The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction”. Details of the assessment made in determining the amount of the recoverable surplus and hence net asset recognised at 31 July 2024, together with a related sensitivity analysis, are set out in Note 22.”

USS Pension Scheme

As the institution is contractually bound to make deficit recovery payments to USS, this is recognised as a liability on the balance sheet. At 31 July 2023 the University’s balance sheet included a liability of £78m for future contributions payable under the deficit recovery agreement which was concluded on 30 September 2021, following the 2020 valuation when the scheme was in deficit. No deficit recovery plan was required for the 2023 valuation, because the scheme was in surplus. Changes to contribution rates were implemented from 1 January 2024 and from that date the University was no longer required to make deficit recovery contributions. The remaining liability of £78m was released to the Statement of Comprehensive Income. Further disclosures relating the deficit recovery liability can be found in Note 22.

QAHE Tuition Income

As disclosed in Note 25 the University has entered into a joint venture with QA Higher Education (QAHE) to provide services in support of the provision of Ulster University degree courses to domestic and international students at campuses in London and Birmingham. The University receives a share of the tuition fees paid by these students which in the year ended 31 July 2024 was £10.4m (2023 £5.2m). Council have assessed that given the nature of the services provided by the University, and that successful students are awarded an Ulster University degree, that this income represents tuition fee income and accordingly this is presented as such in the Statement of Comprehensive Income.

Carrying Value of Jordanstown Campus Land and Buildings

The Jordanstown campus activity fully transferred to the new Belfast campus in September 2023. The carrying value of the Jordanstown campus estate included in fixed assets (see Note 11) has been written down to its estimated recoverable amount based on an independent valuation completed in April 2022 by Lambert Smith Hampton, with the fair value of the estate based on market value in accordance with the Royal Institution of Chartered Surveyors Valuation Guidance Standards – Red Book Global. The members of the Council have assessed that this fair value continues to be appropriate as at 31 July 2024. However, such valuations are inherently judgemental with the value attributed sensitive to changes arising from market factors and how the value of the estate is ultimately realised.

Financial Statements for the Year Ended 31 July 2024

Statement of Comprehensive Income

Group and University Statement of Comprehensive Income for the Year Ended 31 July 2024

----- Start of picture text -----
Note Group University Group University
2024 2024 2023 2023
£000 £000 £000 £000
Income
Tuition Fees and Education Contracts 1 131,777 131,777 121,964 121,964
Funding Body Grants 2 93,896 93,896 99,065 99,065
Research Grants and Contracts 3 38,766 38,766 35,442 35,442
Other Income 4 19,702 19,702 19,905 20,907
Investment Income 5 7,852 7,950 4,114 4,141
Donations and Endowments 6 1,113 1,113 961 961
Total Income 293,106 293,204 281,451 282,480
Expenditure
Staff Costs 7 161,554 161,474 151,075 151,075
Movement in USS Pension Provision 7 (79,836) (79,836) (12,878) (12,878)
Movement in NILGOSC Pension Provision 7 18 18 2,139 2,139
81,736 81,656 140,336 140,336
Other Operating Expenses 8 105,545 105,003 96,600 96,591
Depreciation 11 29,242 29,242 28,857 28,857
Impairment 11 1,118 1,118 - -
Interest and Other Finance Costs 9 2,557 2,557 3,176 3,176
Total Expenditure 220,198 219,576 268,969 268,960
Surplus Before Other Gains and Losses 72,908 73,628 12,482 13,520
Gain on Disposal of Fixed Assets 2,488 2,488 1,357 1,357
Gain on Investments 12 1,160 516 7,282 1,906
Surplus Before Taxation 76,556 76,632 21,121 16,783
Taxation - - (4) -
Surplus After Taxation 76,556 76,632 21,117 16,783
Actuarial Gain in Respect of Pension Schemes 22 6,774 6,774 17,187 17,187
Total Comprehensive Income for the Year 83,330 83,406 38,304 33,970
Represented by:
1,008 1,008 (328) (328)
Endowment Comprehensive Income/(Deficit) for the Year
Unrestricted Comprehensive Income for the Year 87,773 87,849 43,047 38,713
Revaluation Reserve Comprehensive (Deficit) for the Year (5,451) (5,451) (4,415) (4,415)
Total 83,330 83,406 38,304 33,970
----- End of picture text -----

Statement of Changes in Reserves

Group and University Statement of Changes in Reserves Year Ended 31 July 2024

	Income and	Expenditure
	Reserve
Group	Endowment	Unrestricted	Revaluation Reserve	Total
	£000	£000	£000	£000
Balance at 1 August 2022	15,363	213,713	94,370	323,446

(Deficit)/Income from the Statement of Comprehensive Income	(328)	21,445	-	21,117
Other Comprehensive Income	-	17,187	-	17,187
Transfers Between Revaluation and Income and Expenditure Reserve	-	4,415	(4,415)	-
Total Comprehensive(Deficit)/Income for the Year	(328)	43,047	(4,415)	38,304
Balance at 1 August 2023	15,035	256,760	89,955	361,750

Income from the Statement of Comprehensive Income	1,008	75,548	-	76,556
Other Comprehensive Income	-	6,774	-	6,774
Transfers Between Revaluation and Income and Expenditure Reserve	-	5,451	(5,451)	-
Total Comprehensive Income/(Deficit) for the Year	1,008	87,773	(5,451)	83,330
Balance at 31 July2024	16,043	344,533	84,504	445,080

Financial Statements for the Year Ended 31 July 2024

Statement of Changes in Reserves (continued)

Group and University Statement of Changes in Reserves Year Ended 31 July 2024

----- Start of picture text -----
Income and Expenditure
Reserve
Revaluation
University Endowment Unrestricted Total
Reserve
£000 £000 £000 £000
Balance at 1 August 2022 15,363 206,067 94,370 315,800
(Deficit)/income from the Statement -
(328) 17,111 16,783
of Comprehensive Income
Other comprehensive Income - 17,187 - 17,187
Transfers Between Revaluation and Income
- 4,415 (4,415) -
and Expenditure Reserve
Total Comprehensive (Deficit)/Income for the Year (328) 38,713 (4,415) 33,970
Balance at 1 August 2023 15,035 244,780 89,955 349,770
Income from the Statement
-
1,008 75,624 76,632
of Comprehensive Income
Other Comprehensive Income - 6,774 - 6,774
Transfers Between Revaluation and Income - 5,451 (5,451) -
and Expenditure Reserve
Total Comprehensive Income/(Deficit)
1,008 87,849 (5,451) 83,406
for the Year
Balance at 31 July 2024 16,043 332,629 84,504 433,176
----- End of picture text -----

Balance Sheets

Balance Sheets as at 31 July 2024

----- Start of picture text -----
Note Group University Group University
2024 2024 2023 2023
£000 £000 £000 £000
Fixed Assets
Tangible Assets 11 541,053 532,928 556,879 556,879
Investments 12 34,357 20,173 31,496 18,842
Total Fixed Assets 575,410 553,101 588,375 575,721
Current Assets
Debtors 13 34,924 37,422 35,604 36,604
Investments and Short Term Deposits 14 127,205 127,205 102,264 102,264
Cash at Bank and In Hand 15 12,060 10,622 27,650 27,331
Total Current Assets 174,189 175,249 165,518 166,199
Creditors: Amounts Falling Due Within One Year 16 (75,665) (74,125) (72,908) (72,915)
Net Current Assets 98,524 101,124 92,610 93,284
Total Assets Less Current Liabilities 673,934 654,225 680,985 669,005
Creditors: Amounts Falling Due After More Than One Year 17 (255,542) (247,737) (260,074) (260,074)
Pension Liability - - (78,042) (78,042)
Pension Asset 26,688 26,688 18,881 18,881
Provision for Liabilities 18 26,688 26,688 (59,161) (59,161)
Net Assets Including Pension Assets and Liabilities 445,080 433,176 361,750 349,770
Reserves
Restricted Reserves
Endowment Reserve 19 16,043 16,043 15,035 15,035
Unrestricted Reserves
Income and Expenditure Account – Unrestricted 344,533 332,629 256,760 244,780
Revaluation Reserve 84,504 84,504 89,955 89,955
Total Reserves 445,080 433,176 361,750 349,770
----- End of picture text -----

The Financial Statements on pages 30 to 61 were approved by the Council on 25 November 2024 and signed on its behalf by:

Mr David Clements Honorary Treasurer

Ms Elaine Hartin Chief Strategy and Finance Officer

Professor Paul Bartholomew Vice-Chancellor and Chief Accounting Officer

Financial Statements for the Year Ended 31 July 2024

Group Cash Flow Statement

Group Cash Flow Year Ended 31 July 2024

----- Start of picture text -----
Year ended Year ended
Note
31 July 2024 31 July 2023
£000 £000
Cash Flow from Operating Activities
Surplus for the Year before Taxation 76,556 21,121
Taxation - (4)
Surplus for the Year after Taxation 76,556 21,117
Adjustment for Non-Cash Items
Depreciation 11 29,242 28,857
Impairment 11 1,118
Gain on investments 12 (1,134) (7,282)
Decrease/(Increase) in Debtors 13 680 (8,359)
(Decrease)/Increase in Creditors 16 (2,291) 14,049
(Decrease) in Pension Provision 18 (79,075) (8,008)
Deferred capital grants released income (7,402) (6,210)
Adjustment for Investing or Financing Activities
Investment Income 5 (7,852) (4,114)
Interest Payable 9 509 525
New Endowment Received 6 (123) (128)
Profit on Disposal of fixed assets (2,488) (1,357)
Net Cash Inflow from Operating Activities 7,740 29,090
Cash Flows from Investing Activities
Capital Grant Receipts 8,266 2,520
Disposal of Non-Current Asset Investments 12 454 728
Investment Income 5 7,852 4,114
Payments made to Acquire Fixed Assets 11 (14,988) (18,233)
Fixed Asset Disposal Proceeds 2,925 1,650
New Non-Current Asset Investment 12 (2,181) (851)
New Fixed Deposits (24,941) (20,040)
(22,613) (30,112)
Cash Flows from Financing Activities
Interest Paid 9 (509) (525)
New Endowments Received 6 123 128
Repayments of Amounts Borrowed 17 (331) (313)
(717) (710)
(Decrease) in Cash and Cash Equivalents in the Year (15,590) (1,732)
Cash and Cash Equivalents at Beginning of the Year 27,650 29,382
Cash and Cash Equivalents at End of the Year 12,060 27,650
----- End of picture text -----

Notes to the Financial Statements

----- Start of picture text -----
Group University Group University
1. Tuition Fees and Education Contracts
2024 2024 2023 2023
£000 £000 £000 £000
Full-time Student Fees 67,090 67,090 62,987 62,987
Overseas Student Fees 31,651 31,651 24,061 24,061
Part-time Fees 11,247 11,247 12,950 12,950
DOH Education Contract 21,361 21,361 20,714 20,714
Short Course Fees 428 428 1,252 1,252
131,777 131,777 121,964 121,964
Group University Group University
2. Funding Body Grants 2024 2024 2023 2023
£000 £000 £000 £000
Recurrent Grant 84,507 84,507 84,704 84,704
Special Initiatives 3,454 3,454 8,579 8,579
Deferred Capital Grants Released in Year
– Buildings 3,739 3,739 3,926 3,926
– Equipment 2,196 2,196 1,856 1,856
93,896 93,896 99,065 99,065
Group University Group University
3. Research Grants and Contracts
2024 2024 2023 2023
£000 £000 £000 £000
Research Councils 16,756 16,756 13,802 13,802
UK Charities 1,803 1,803 1,708 1,708
EU Government 2,225 2,225 2,785 2,785
UK Central Government 12,799 12,799 12,397 12,397
Overseas (Non-EU) 898 898 876 876
Health and Hospital Authorities 187 187 217 217
Other Sources 4,098 4,098 3,657 3,657
38,766 38,766 35,442 35,442
Included in Research Grants and Contracts Income is £1,283k (2023: £243k) in relation to deferred capital grant release
Group University Group University
4. Other Income
2024 2024 2023 2023
£000 £000 £000 £000
Residences, Catering and Conferences 2,996 2,996 2,425 2,425
Other Services Rendered 7,303 7,303 9,319 9,325
Other Income 9,219 9,219 7,977 8,973
Deferred Grant Release 184 184 184 184
19,702 19,702 19,905 20,907
----- End of picture text -----

Financial Statements for the Year Ended 31 July 2024

Notes to the Financial Statements (continued)

----- Start of picture text -----
Group University Group University
5. Investment Income
2024 2024 2023 2023
£000 £000 £000 £000
Investment Income on Expendable Endowments 53 53 57 57
Investment Income on Permanent Endowments 420 420 414 414
Income from Short Term Investments 6,328 6,426 3,461 3,488
Net Receivable Interest on Pension Scheme 1,051 1,051 182 182
7,852 7,950 4,114 4,141
Group University Group University
6. Donation and Endowments
2024 2024 2023 2023
£000 £000 £000 £000
New Endowments 123 123 128 128
Donations 990 990 833 833
1,113 1,113 961 961
Group University Group University
7. Staff Costs
2024 2024 2023 2023
£000 £000 £000 £000
Wages and Salaries 128,785 128,713 116,611 116,611
Social Security Costs 12,452 12,444 11,253 11,253
Other Pension Costs (Note 22) 20,317 20,317 23,211 23,211
Movement on USS Pension Provision (Note 18) (79,836) (79,836) (12,878) (12,878)
Movement on NILGOSC Pension Provision (Note 18) 18 18 2,139 2,139
81,736 81,656 140,336 140,336
Group University Group University
Emolument of the Vice-Chancellor
2024 2024 2023 2023
£000 £000 £000 £000
Salary 273 273 263 263
Benefits - - - -
273 273 263 263
Employers Pension Contributions 47 47 57 57
320 320 320 320
----- End of picture text -----

	2024 2023 Ratio of Vice-Chancellor's Basic Salary to Median Basic Salary of Member of UniversityStaff 6.17:1 6.15:1 Ratio of Vice-Chancellor's Total Remuneration to Median Total Remuneration of Member of UniversityStaff 6.17:1 6.11:1

The Vice-Chancellor leads Ulster University to make a significant social, economic and cultural contribution helping our community to thrive and confidently supporting Northern Ireland on the global stage. In an increasingly competitive sector, University leadership reflects the scale, complexity and impact of higher education across research and teaching. The current Vice-Chancellor is employed on a fixed salary contract which is subjected to an annual uplift in line with the outcome of the national collective pay bargaining. The Vice-Chancellor’s salary was determined by the University’s committee responsible for remuneration and governance and was set in line with the benchmarked salaries of other Vice-Chancellors who lead similar sized and income earning Higher Education institutions in the sector in the UK.

Excluding the Vice-Chancellor, Remuneration of	Group	University	Group	University
other Higher Paid Staff was in the Following Bands:	2024	2024	2023	2023
	No.	No.	No.	No.
£100,000 - £104,999	24	24	12	12
£105,000 - £109,999	16	16	9	9
£110,000 - £114,999	7	7	1	1
£115,000 - £119,999	5	5	1	1
£120,000 - £124,999	0	0	1	1
£125,000 - £129,999	3	3	1	1
£130,000 - £134,999	1	1	3	3
£135,000 - £139,999	0	0	1	1
£140,000 - £144,999	4	4	2	2
£145,000 - £149,999	1	1	-	-
£155,000 - £159,999	0	0	2	2
£160,000 - £164,999	2	2	-	-
£170,000 - £174,999	0	0	1	1
£175,000 - £179,999	2	2	-	-
Key Management Personnel	Group 2024	University 2024	Group 2023	University 2023
	£000	£000	£000	£000
KeyManagement Personnel Remuneration	2,268	2,219	2,501	2,501
Compensation for Loss of Office
Compensation Payable Recorded Within Staff Costs	675	675	1,130	1,130
Number of Staff Who Received Compensation	58	58	70	70

During the year the University paid £675K for compensation for loss of office to 58 members of staff. These payments to staff in 2023/24 were mainly as a result of the relocation of the School of Health Sciences from Jordanstown campus to the Derry~Londonderry campus and the termination of research related fixed-term contracts, which attract a redundancy position by virtue of the nature of the funding arrangements.

The Average Weekly Number of Persons (Including Senior Post Holders) Employed by the University During the Year, Expressed as Full-time Equivalents, was:	Group 2024	University 2024	Group 2023	University 2023
	No.	No.	No.	No.
Academic	1,196	1,196	1,149	1,149
Technical	171	171	165	165
Administrative	690	688	633	633
Other IncludingClerical and Manual	584	584	545	545
	2,641	2,639	2,492	2,492

Financial Statements for the Year Ended 31 July 2024

Notes to the Financial Statements (continued)

----- Start of picture text -----
Group University Group University
8. Other Operating Expenses 2024 2024 2023 2023
£000 £000 £000 £000
Residences and Conferences 2,582 2,582 3,204 3,204
Consumables and Laboratory equipment 3,118 3,118 3,206 3,206
Equipment not Capitalised 3,850 3,522 4,948 4,948
Books and Periodicals 4,372 4,372 4,182 4,182
Fellowships, Scholarships and Prizes 787 787 562 562
Rates 6,619 6,619 3,727 3,727
Heat, Light, Water and Power 6,695 6,695 7,666 7,666
Long Term Maintenance 9,985 9,985 8,994 8,994
Contracted Out Services 8,042 8,042 7,366 7,366
Grants to Ulster University Students’ Union 2,039 2,039 1,942 1,942
External Auditors’ Remuneration 104 83 87 81
External Auditors’ Remuneration in Respect of Non-Audit Services 20 18 36 34
Internal Auditors’ Remuneration 157 157 143 143
Internal Auditors’ Remuneration in Respect of Non-Audit Services 159 159 191 191
Printing and Stationery 1,340 1,340 1,144 1,144
Travel, Subsistence and Hospitality 6,890 6,888 5,292 5,292
Miscellaneous Academic Support 1,754 1,754 1,716 1,716
Telephone and Postage 263 263 310 310
Research Sub-contracting 7,936 7,936 7,032 7,032
Legal and Professional Services 17,837 17,649 14,931 14,931
IT Services 7,679 7,679 5,813 5,813
Advertising and Publicity 1,637 1,636 1,787 1,787
Student Support 9,767 9,767 9,304 9,304
Other Expenses 1,913 1,913 3,017 3,016
105,545 105,003 96,600 96,591
----- End of picture text -----

----- Start of picture text -----
Group University Group University
9. Interest and Other Finance Costs
2024 2024 2023 2023
£000 £000 £000 £000
Bank Loans 112 112 128 128
Other Loans 397 397 397 397
Net Charge on Pension Schemes 1,794 1,794 2,913 2,913
Exchange Differences 254 254 (262) (262)
2,557 2,557 3,176 3,176
Interest
10. Analysis of 2024 Expenditure by Activity CostsStaff Depreciation and Operating Other and Other Finance Total
impairment Expenses Costs
£000 £000 £000 £000 £000
Academic Departments 91,219 2,071 13,732 - 107,022
Academic Services 26,427 4,234 21,852 - 52,513
Research Grants and Contracts 12,866 1,175 17,350 - 31,391
Residences, Catering and Conferences 1,419 670 4,025 - 6,114
Premises 4,603 20,216 25,881 509 51,209
Administration 22,427 1,994 20,666 254 45,341
Other Expenses (77,225) - 2,039 1,794 (73,392)
81,736 30,360 105,545 2,557 220,198
----- End of picture text -----

	£000
The depreciation and impairment charged has been funded by:
Release from Deferred Capital Grants	6,119
Release from Research Grants and Contracts	1,283
Transfer from Revaluation Reserve	4,415
General Income	18,543
	30,360

Financial Statements for the Year Ended 31 July 2024

Notes to the Financial Statements (continued)

----- Start of picture text -----
Freehold Land Assets Under
11. Tangible Assets – Group Equipment Total
and Buildings Construction
£000 £000 £000 £000
Valuation or Cost
At 1 August 2023
Revaluation 173,696 - - 173,696
Cost 510,935 19,892 83,637 614,464
Total 684,631 19,892 83,637 788,160
Additions at Cost 3,359 8,632 2,958 14,949
Transfer CIP 19,506 (19,666) 160 -
Disposals (547) - (3,618) (4,165)
At 31 July 2024
Revaluation 173,696 - - 173,696
Cost 533,253 8,858 83,137 625,248
Total 706,949 8,858 83,137 798,944
Accumulated Depreciation
At 1 August 2023 172,023 - 59,258 231,281
Depreciation 19,801 - 9,441 29,242
Impairment 1,118 - - 1,118
Disposals (132) - (3,618) (3,750)
At 31 July 2024 192,810 - 65,081 257,891
Net Book Value
At 31 July 2024 514,139 8,858 18,056 541,053
At 31 July 2023 512,608 19,892 24,379 556,879
----- End of picture text -----

The impairment charge relates to the tower building on the Coleraine campus which is due to be demolished in 2024/25.

----- Start of picture text -----
Freehold Land Assets Under
11. Tangible Assets – Ulster University Equipment Total
and Buildings Construction
£000 £000 £000 £000
Valuation or Cost
At 1 August 2023
Revaluation 173,696 - - 173,696
Cost 510,935 19,892 83,637 614,464
Total 684,631 19,892 83,637 788,160
Additions at Cost 3,359 974 2,958 7,291
Transfer CIP 19,506 (19,666) 160 -
Disposals (547) - (4,085) (4,632)
At 31 July 2024
Revaluation 173,696 - - 173,696
Cost 533,253 1,200 82,670 617,123
Total 706,949 1,200 82,670 790,819
Accumulated Depreciation
At 1 August 2023 172,023 - 59,258 231,281
Depreciation 19,801 - 9,441 29,242
Impairment 1,118 - - 1,118
Disposals (132) - (3,618) (3,750)
At 31 July 2024 192,810 - 65,081 257,891
Net Book Value
At 31 July 2024 514,139 1,200 17,589 532,928
At 31 July 2023 512,608 19,892 24,379 556,879
----- End of picture text -----

The impairment charge relates to the tower building on the Coleraine campus which is due to be demolished in 2024/25.

Financial Statements for the Year Ended 31 July 2024

Notes to the Financial Statements (continued)

12. Fixed Asset Investments	Subsidiary Companies	Other Fixed Asset Investments	Subsidiary Investment in Spinouts	Endowment Fund Investments	Total
Group	£000	£000	£000	£000	£000
At 1 August 2023	-	2,305	14,156	15,035	31,496
Additions	-	-	1,585	596	2,181
Disposals	-	-	-	(454)	(454)
Fair Value Adjustments	-	(350)	618	866	1,134
At 31 July2024	-	1,955	16,359	16,043	34,357
University
At 1 August 2023	1,502	2,305	-	15,035	18,842
Additions	673	-	-	596	1,269
Disposals	-	-	-	(454)	(454)
Fair Value Adjustments	-	(350)	-	866	516
At 31 July2024	2,175	1,955	-	16,043	20,173

Other fixed asset investments relates to the University’s interest in Ulster Equity Limited Partnership.

13. Debtors	Group 2024	University 2024	Group 2023	University 2023
	£000	£000	£000	£000
Trade Debtors	21,455	21,439	23,999	23,976
Amounts Due from GroupUndertakings	-	4,504	-	1,023
Prepayments and Accrued Income	13,469	11,479	11,605	11,605
	34,924	37,422	35,604	36,604

Amounts due from Group Undertakings includes loan balances of £2.59m (2023; £1.0m) due after one year.

14. Investments and Short Term Deposits	Group 2024	University 2024	Group 2023	University 2023
	£000	£000	£000	£000
Investments and Short Term Deposits	127,205	127,205	102,264	102,264
	127,205	127,205	102,264	102,264

Under the terms of the loan agreement with the Strategic Investment Board (see note 17) the University holds a Cash Reserve account. The investments balance in 2024 includes funds of £28.8m in the Cash Reserve account (2023: £19.3m). There are restrictions over the use of these funds that require prior consent from the Strategic Investment Board.

----- Start of picture text -----
Group University Group University
15. Cash at Bank and In Hand
2024 2024 2023 2023
£000 £000 £000 £000
Cash at Bank and In Hand 12,060 10,622 27,650 27,331
12,060 10,622 27,650 27,331
Group University Group University
16. Creditors:
2024 2024 2023 2023
£000 £000 £000 £000
Amounts Falling Due Within One Year
Bank Loans 348 348 331 331
Other Loans 6,344 6,344 - -
Trade Creditors 27,603 26,800 29,694 29,694
Amounts owed by Group undertakings - 17 - 15
Taxation and Social Security 6,629 6,629 7,076 7,076
Accruals 28,395 27,755 28,165 28,157
Deferred Capital Grants 6,346 6,232 7,642 7,642
75,665 74,125 72,908 72,915
Group University Group University
17. Creditors:
2024 2024 2023 2023
£000 £000 £000 £000
Amounts Falling Due After More Than One Year
Bank Loans 1,491 1,491 1,839 1,839
Other Loans 152,256 152,256 158,600 158,600
Deferred Capital Grants 101,795 93,990 99,635 99,635
255,542 247,737 260,074 260,074
Bank Loans
Amounts Falling Due:
Less Than One Year (Note 16) 348 348 331 331
Between One and Two Years 368 368 348 348
Between Two and Five Years 1,123 1,123 1,168 1,168
Greater Than Five Years - - 323 323
1,839 1,839 2,170 2,170
Other Loans
Amounts Falling Due:
Less Than One Year (Note 16) 6,344 6,344 - -
Between One and Two Years 6,344 6,344 6,344 6,344
Between Two and Five Years 19,032 19,032 19,032 19,032
Greater Than Five Years 126,880 126,880 133,224 133,224
158,600 158,600 158,600 158,600
----- End of picture text -----

Financial Statements for the Year Ended 31 July 2024

Notes to the Financial Statements (continued)

Included in the loans are the following:

	Lender	Amount £000	Repayable	Interest Rate
	First Trust Bank Loan	1,839	2004-2029	5.475 %
	Strategic Investment Board Loan	158,600	2025-2049	0.25 %

The First Trust bank loan is secured by a negative pledge on a portion of land on the Jordanstown campus. The Strategic Investment Board loan is secured by a fixed charge on the property of the University’s four campuses.

----- Start of picture text -----
Group University Group University
Net Debt Movement
2024 2024 2023 2023
£000 £000 £000 £000
Balance at 1 August 2023 160,770 160,770 161,083 161,083
Capital repayments (331) (331) (313) (313)
Balance at 31 July 2024 160,439 160,439 160,770 160,770
Obligation to Fund Defined Benefit
Total
18. Provisions for Liabilities Deficit on USS Obligations
Provision
Pension (Note 22) (Note 22)
Group and University £000 £000 £000
At 1 August 2023 78,042 (18,881) 59,161
(Credited)/Charged During the Year:
Staff Costs (79,836) 18 (79,818)
Interest Payable/(receivable) 1,794 (1,051) 743
Actuarial Gain - (6,774) (6,774)
At 31 July 2024 - (26,688) (26,688)
----- End of picture text -----

USS Deficit

The obligation to fund the past deficit on the Universities Superannuation Scheme (USS) arose from the contractual obligation with the USS to deficit payments in accordance with the deficit recovery plan.

A deficit recovery plan was put in place as part of the 2020 valuation, which required payment of 6.2% of salaries over the period 1 April 2022 until 31 March 2024, at which point the rate would increase to 6.3%.

As set out in Note 22 no deficit recovery plan was required under the 2023 valuation because the scheme was in surplus on a technical provisions basis. The University was no longer required to make deficit recovery contributions from 1 January 2024 and accordingly released the outstanding provision to the Statement of Comprehensive Income.

The major assumptions used to calculate the obligation in 2023 were:

	2023
	Discount Rate 5.52%
	SalaryGrowth 3.0%

----- Start of picture text -----
Unrestricted Restricted Total Restricted 2024 2023
19. Endowment Reserves
Permanent Permanent Permanent Expendable Total Total
£000 £000 £000 £000 £000 £000
Group and University
Balances at 1 August 2023
Capital 362 11,213 11,575 3,786 15,361 15,631
Accumulated Income and (Expenditure) 111 1,693 1,804 (2,130) (326) (268)
473 12,906 13,379 1,656 15,035 15,363
New Endowments - 2 2 121 123 128
Investment Income 15 405 420 53 473 471
Expenditure - (175) (175) (279) (454) (528)
15 230 245 (226) 19 (57)
Increase/(Decrease) in Market Value of Investments 26 740 766 100 866 (399)
At 31 July 2024 514 13,878 14,392 1,651 16,043 15,035
Represented By
Capital 388 11,955 12,343 4,007 16,350 15,361
Accumulated Income and (Expenditure) 126 1,923 2,049 (2,356) ( 307) (326)
514 13,878 14,392 1,651 16,043 15,035
----- End of picture text -----

Analysis by Type of Purpose:

----- Start of picture text -----
Unrestricted Restricted Total Restricted 2024 2023
Permanent Permanent Permanent Expendable Total Total
£000 £000 £000 £000 £000 £000
Lectureships - 4,564 4,564 257 4,821 4,558
Scholarships and Bursaries - 759 759 490 1,249 1,162
Research Support - 6,305 6,305 904 7,209 6,766
Prize Funds - 2,250 2,250 - 2,250 2,076
General 514 - 514 - 514 473
514 13,878 14,392 1,651 16,043 15,035
----- End of picture text -----

Analysis by Asset:

----- Start of picture text -----
Unrestricted Restricted Total Restricted 2024 2023
Permanent Permanent Permanent Expendable Total Total
£000 £000 £000 £000 £000 £000
Current and Non Current Asset Investments 514 13,878 14,392 1,651 16,043 15,035
----- End of picture text -----

Financial Statements for the Year Ended 31 July 2024

Notes to the Financial Statements (continued)

----- Start of picture text -----
20. Capital Commitments 2024 2023
Group and University £000 £000
Commitments Contracted at 31 July 2024 1,330 5,244
Authorised but not Contracted at 31 July 2024 23,808 10,962
25,138 16,206
----- End of picture text -----

USS Pension Scheme

21. Contingent Liabilities

At the year end there were no legal proceedings that are expected to result in a settlement of a material amount by the University.

On 5 July 2022 the University entered into an agreement for lease with the Belfast Harbour Commissioners in respect of the studio facility to be constructed by the Belfast Harbour Commissioners, and which Studio Ulster Limited would operate from. This agreement for lease was subsequently novated to the Studio Ulster Limited on 29 August 2024. Further, and to enable installation of studio equipment purchased by Studio Ulster Limited before finalisation of the lease agreement (see below), on 30 August 2024 an early access agreement was entered into between the Belfast Harbour Commissioners and Studio Ulster Limited for nil consideration.

The University participates in the Universities Superannuation Scheme (USS). The scheme is a hybrid scheme, providing defined benefits (for all members), as well as defined contribution benefits. The assets of the scheme are held in a separate trustee administered fund.

Due to the mutual nature of the scheme, the scheme’s assets are not hypothecated to individual institutions and a scheme wide contribution rate is set. The institution is therefore exposed to actuarial risks associated with other institutions’ employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. As required by Section 28 of FRS 102 ‘Employee benefits’, the University therefore accounts for the scheme as if it were a wholly defined contribution scheme.

At this time the lease agreement related to the studio facility remains to be agreed. However, based on current negotiations with the Belfast Harbour Commissioners this lease is expected to result in an initial lease term of 15 years.

22. Net Pension Liability

The University participates in three pension schemes. The schemes are the Universities Superannuation Scheme (USS), the Northern Ireland Local Government Officers Superannuation Committee Pension Fund (NILGOSC) and the Health & Social Care Service Pension Scheme (HSCPS). The schemes are defined benefit schemes, which are externally funded. The assets of each scheme are held in a separate trustee-administered fund. The University has a small number of staff in the new School of Medicine who are members of the Health & Social Care Service Pension Scheme, a defined benefit pension scheme for health and social care workers in Northern Ireland. Disclosures are not included for this pension scheme on grounds of materiality.

Where a scheme valuation determines that the scheme is in deficit on a technical provision basis (as was the case following the 2020 valuation), the trustees of the scheme must agree a Recovery Plan that determines how each employer within the scheme will fund an overall deficit. The University recognises a liability for the contributions payable that arose from such an agreement (to the extent that they related to a deficit) with related expenses being recognised through the Statement of Comprehensive Income. Following the 2023 valuation a deficit recovery plan was no longer required because the scheme was in surplus on a technical provisions basis. Further disclosures relating to the deficit recovery liability can be found in note 18.

As a result, the amount charged or credited to the Consolidated Statement of Comprehensive Income represents the contributions payable to the scheme, and until 31 December 2023 the movements in liability for the deficit recovery contributions payable under the Scheme’s Recovery Plan.

The total cost credited to the Comprehensive Income account is £78m (2022/23: charge £10.0m).

Deficit recovery contributions due within one year for the institution are £nil (2022/23: £5.7m).

Since the institution cannot identify its share of USS Retirement Income Builder (defined benefit) assets and liabilities, the following disclosures reflect those relevant for those assets and liabilities as a whole.

The latest available complete actuarial valuation of the Retirement Income Builder is as at 31 March 2023 (the valuation date), and was carried out using the projected unit method.

The 2023 valuation was the seventh valuation for the scheme under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to have sufficient and appropriate assets to cover their technical provisions. At the valuation date, the value of the assets of the scheme was £73.1 billion and the value of the scheme’s technical provisions was £65.7 billion indicating a surplus of £7.4 billion and a funding ratio of 111%.

The key financial assumptions used in the 2023 valuation are described below. More detail is set out in the Statement of Funding Principles.

uss.co.uk/about-us/valuation-and-funding/statement-of-funding-principles

	• Term dependent rates in line with the difference between the Fixed Interest and
CPI assumption	Index Linked yield curves less:
	o 1.0% p.a. to 2030, reducing linearly by 0.1% p.a. from 2030
	• Benefits with no cap: CPI assumption plus 3bps
Pension increases (subject to a floor of 0%)	• Benefits subject to a “soft cap” of 5% (providing inflationary increases up to 5%, and half of any excesses inflation over 5% up to a maximum of 10%): CPI
	assumptions minus 3bps
	• Fixed interest gilt yield curve plus:
Discount rate (forward rates)	o Pre-retirement: 2.5% p.a.
	o Post retirement: 0.9% p.a.

The main demographic assumptions used relate to the mortality assumptions. These assumptions are based on analysis of the scheme’s experience carried out as part of the 2023 actuarial valuation. The mortality assumptions used in these figures are as follows:

2023 Valuation

----- Start of picture text -----
Mortality Base Table 101% of S2PMA “light” for males and 95% of S3PFA for females
CMI 2021 with a smoothing parameter of 7.5, an initial addition of 0.4% p.a., 10% w2020
Future Improvements to Mortality and w2021 parameters, and a long-term improvement rate of 1.8% p.a. for males and 1.6%
p.a. for females
----- End of picture text -----

The current life expectancies on retirement at age 65 are:

----- Start of picture text -----
2024 2023
Males currently aged 65 (years) 23.7 24.0
Females currently aged 65 (years) 25.6 25.6
Males currently aged 45 (years) 25.4 26.0
Females currently aged 45 (years) 27.2 27.4
----- End of picture text -----

Financial Statements for the Year Ended 31 July 2024

Notes to the Financial Statements (continued)

NILGOSC Pension Scheme

The University is able to identify its share of the underlying assets and liabilities of the NILGOSC scheme and accordingly present the following information required by FRS 102.

A valuation of the fund was carried out at 31 March 2022 and updated to 31 July 2024 by a qualified independent actuary.

	Balance Sheet At 31 July 2024 At 31 July 2023 £000 £000 Present Value of Scheme Liabilities (184,196) (177,945) Fair Value of Scheme Assets 210,884 196,826 Net Pension Asset 26,688 18,881

The FRS 102 valuation of the NILGOSC scheme as at 31 July 2024 resulted in an estimated net pension plan asset of £26,688,000. FRS 102 requires that an entity shall recognise a plan surplus as a defined benefit plan asset only to the extent that it is able to recover the surplus either through reduced contributions in the future or through refunds from the plan. Since FRS 102 provides no further guidance in this respect, as allowed under FRS 102 the University Council have considered the relevant requirements of International Financial Reporting Standards, in particular IFRIC Interpretation 14 IAS 19—”The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction” (IFRIC 14).

The University Council have considered the ability of the University to recover a surplus through reduced contributions in the future. This has included obtaining an assessment from an independent actuary based on the requirements of IFRIC 14. This assessment estimates that using both a perpetuity approach (i.e. assuming the University would never exit the NILGOSC scheme) and using the remaining service life of the current member employees used in the latest triennial funding valuation, that the present value of the estimated future service cost in each period less the estimated minimum funding requirement contributions that would be required for future service in those periods would be negative. Consequently, no economic benefit is available as a reduction in future contributions.

IFRIC 14 requires that the right to recovery through a refund must be unconditional. While the NILGOSC “Admission and Exit Policy” and The Local Government Pension Scheme Regulations (Northern Ireland) 2014 require the calculation of an exit refund and provide NILGOSC with the ability to defer the timing of any resultant refund payment, neither of these conditions are considered as conditional events over the right of the University to a refund on exit from the NILGOSC scheme. The University Council have therefore concluded that the University does have an unconditional right to a refund of a surplus in the NILGOSC scheme.

The University Council are aware of the June 2023 UK High Court ruling in the case of NTL v Virgin Media, and related July 2024 Court of Appeal decision, which has rendered relevant amendments made between 6 April 1997 and 5 April 2016 to affected contracted-out UK defined benefit pension scheme rules invalid and void in certain circumstances. In particular, section 37 of the Pension Schemes Act 1993 only allowed the rules of contracted-out schemes to be altered in certain circumstances, with the judgment in the Virgin Media case making it clear that where an amendment was made which affected section 9(2B) rights without the necessary section 37 confirmation having been obtained, that amendment would be void (even if the change resulted in a benefit improvement).

The NILGOSC scheme was contracted-out during this period and the University Council and the NILGOSC Scheme Committee are aware that a number of rule changes were made during this time, including some which affected the level of member benefits. Therefore, it is possible that, if any of the rule changes are deemed invalid due to the absence of the necessary section 37 confirmation, this may lead to additional liabilities for the NILGOSC scheme and the University.

In line with the majority of UK pension schemes, the University Council and the NILGOSC Scheme Committee have not taken any action pending the outcome of the Appeal. Following the recent Appeal decision, the University will seek to work with the Committee to understand if there are any implications for the NILGOSC scheme and the University, including assessing all amendments to member benefits, whether the required section 37 confirmations were obtained and the extent of any additional liabilities arising, which will need to be recognised.

Based on their assessment as set out above, University Council have concluded that it is appropriate to recognise the estimated net pension plan asset of £26.688m at 31 July 2024.

----- Start of picture text -----
Movements in Present Value of Defined At 31 July At 31 July
Benefit Obligation 2024 2023
£000 £000
At Beginning of the Year (177,945) (207,067)
Current Service Cost (3,458) (5,271)
Member Contributions (1,094) (994)
Interest Cost (8,893) (7,132)
Benefits Paid 8,424 7,733
Past service Cost (45) -
Actuarial Gains (1,185) 34,786
At End of Year (184,196) (177,945)
At 31 July At 31 July
Movement in Fair Value of Plan Assets
2024 2023
£000 £000
At Beginning of the Year 196,826 210,718
Expected Return on Assets 9,944 7,314
Employer Contributions 3,485 3,132
Member Contributions 1,094 994
Benefits Paid (8,424) (7,733)
Actuarial (Losses)/Gains 7,959 (17,599)
At End of Year 210,884 196,826
Expense Recognised in the Income and At 31 July At 31 July
Expenditure Accounts 2024 2023
£000 £000
Current Service Cost 3,458 5,271
Interest on Defined Benefit Pension Plan Obligation 8,893 7,132
Expected Return on Defined Benefit Pension Plan Assets (9,944) (7,314)
Past Service Cost 45 -
Total 2,452 5,089
The (Income)/Expense is Recognised in the At 31 July At 31 July
Following Line Items in the Income Statement: 2024 2023
£000 £000
Staff Costs 3,503 5,271
Interest (Receivable)/Payable (1,051) (182)
2,452 5,089
Amounts Recognised in Other At 31 July At 31 July
Comprehensive Income 2024 2023
£000 £000
Asset Gains/(Losses) Arising During the Period 7,959 (17,599)
Liability Gains/(Losses) Arising During the Period (1,185) 34,786
Total Amount Recognised in Other Comprehensive Income 6,774 17,187
----- End of picture text -----

Cumulative actuarial gains recognised as Other Comprehensive Income are £81.5m (2022/23: £74.7m).

Financial Statements for the Year Ended 31 July 2024

Notes to the Financial Statements (continued)

----- Start of picture text -----
At 31 July 2024 At 31 July 2023
The Fair Value of the Plan Assets were as follows:
Fair Value Fair Value
£000 £000
Equities 84,354 84,439
Bonds 71,279 68,101
Property 19,190 20,470
Cash 23,408 12,203
Other 12,653 11,613
210,884 196,826
Principal Actuarial Assumptions (Expressed as At 31 July At 31 July
Weighted Averages) at the Year End were as follows: 2024 2023
Discount Rate 5.0% 5.1%
CPI Inflation 2.6% 2.6%
Pension Increases 2.6% 2.6%
Pension Accounts Revaluation Rate 2.6% 2.6%
Salary Increases 4.1% 4.1%
Mortality Males Females
Current Pensioners 2024 21.5 years 24.4 years
2023 21.7 years 24.5 years
Future Pensioners 2024 22.1 years 25.2 years
2023 22.6 years 25.5 years
----- End of picture text -----

The University expects to contribute approximately £3.578m to NILGOSC pensions scheme in the next financial year. The sensitivity analysis outlines the potential impact on the provision under different scenarios:

----- Start of picture text -----
Change in Assumptions at 31 July 2024
0.1% decrease in discount rate £2.7m increase
0.1% increase in salaries £0.2m increase
0.1% increase to pensions and rate of revaluation of pension accounts £2.4m increase
1 year increase in post-retirement mortality £4.8m decrease
Group Group
The Total Pension Cost for the University was:
2024 2023
£000 £000
Charge to Staff Costs – USS (62,206) 7,126
Charge to Staff Costs – NILGOSC 2,633 5,289
Charge to Staff Costs – HSCPS 72 57
Total Pension Cost (see Note 7) (59,501) 12,472
----- End of picture text -----

23. Student Support Funds	Group and University 2024	Group and University 2023
	£000	£000
Balance Carried Forward	411	292
FundingCouncil Grants	1,420	2,684
Interest	3	7
Disbursed to Students	(1,497)	(2,572)
Balance Underspent at 31 July2024	337	411

Department for the Economy (“DfE”) Student Support grants are available solely for students. The University acts only as a paying agent. The grants and related disbursements are therefore excluded from the Income and Expenditure Account. The support funds are used to provide financial help to students whose access to higher education might be inhibited by financial considerations or who for whatever reasons, including physical or other disabilities, face financial difficulties in meeting their living costs.

24. Subsidiary Company Information

There are two companies which are wholly owned subsidiary companies of the University:

Innovation Ulster Limited

This company has been fully consolidated in the Financial Statements.

The company is controlled by the University. The company is registered and operates in Northern Ireland and has a registered address of Ulster University, BD-004-09 York Street, Belfast, Northern Ireland BT15 1ED.

Innovation Ulster Limited is a company established to develop intellectual property rights by patenting and licensing, and to arrange consultancy activities.

Studio Ulster Limited

Studio Ulster Limited was incorporated in March 2023. The company has a registered address of Murray House, Murray Street, Belfast, Northern Ireland, BT1 6DN.

This company has been fully consolidated in the Financial Statements.

25. Joint Venture Information

The University has two joint ventures. Branch Campus (London and Birmingham) Limited is a joint venture between Ulster University and QAHE (Ulst) Limited for the principal purpose of providing services in support of the provision of degree courses to domestic and international students at campuses in London and Birmingham.

C-TRIC Limited (previously named ABC Research & Innovation Limited) is a company limited by guarantee with Ulster University, Derry City and Strabane District Council and the Western Trust as equal partners. The principal activity of the company is to develop an Academia Business Clinical Research Innovation facility.

The results of Branch Campus (London & Birmingham) Limited and C-TRIC Limited are not consolidated in the Group Financial Statements on the grounds of materiality.

Through Innovation Ulster Limited (IUL), a wholly owned subsidiary, the University has a joint venture with NI Composites O & M LLP (NICOM). NICOM was incorporated in 2011 to promote collaborative research in advanced composites. It is a joint venture between IUL and Queens Composites Limited, a wholly owned subsidiary of Queen’s University Belfast. The results of NICOM are not consolidated in the Group Financial Statements on the grounds of materiality.

Studio Ulster Limited is a company established to provide virtual production centric services in production and postproduction to stakeholders operating in the motion picture, video and television programme industry sectors.

Financial Statements for the Year Ended 31 July 2024

Notes to the Financial Statements (continued)

26. Other Investments

Ulster Equity Limited Partnership

Ulster Equity Partnership is a limited partnership with Ulster University, Invest NI and TechStart NI for the principal purpose of carrying on the business of an investor and in particular to identify, research, negotiate, make or monitor the progress of and sell, realise, exchange or distribute equity or equity-related investments in connection with providing seed capital for the development of post – research post – proof of concept spin-out/in companies from Ulster University including from the technology sectors related to the Ulster University research base.

Through Ulster Equity Partnership the University has the following holdings:

7.49% of Axial Medical Printing Limited

0.86% of Responsible Clothing Limited (previously HARU)

14.92% of Humain Limited

3.69% of Locate Match Limited

6.71% of Neuroconcise Limited

2.82% of Neurovalens Limited

4.23% of CDS New Ventures Limited

Innovation Ulster Limited

Through Innovation Ulster Limited, a wholly owned subsidiary, the University has the following holdings:

Included in fixed asset investments above, the Company holds investment of under 25% in:

3% of Pulse AI Ltd

1.35% of Vesalic Ltd

21% of Klas Therapeutics

7.94% of Performa Sports Limited

2.40% of Datactics Limited

3.04% of Axial 3D Limited

6.48% of SISAF Limited

14.31% of Neuroconcise Limited

6.00% of Humain Limited

1.25% of Responsible (Haru)

7.50% of Modern Nature 20% of StimOxyGen Limited

20% of Exrt Intelligent Healthcare Limited

20% of Pneuma Healthcare Limited

16.29% of SonoTarg Limited

5.30% of Respiratory Analytics Limited 3% of Surecert 8.54% SWIPS CLN Neurovalens

The Company has holdings of greater than 25% in the following companies:

----- Start of picture text -----
Status Active Active Active Active Active Active Active
Axis Jenarron
Dia Beta Actionsense Solaform Efectis UK/
Name Labs Ltd Galvani Ltd Ltd Composites Therapeutics Ltd Ireland Ltd
Ltd Ltd
Country of Northern United Northern Northern Northern Northern Northern
Incorporation Ireland Kingdom Ireland Ireland Ireland Ireland Ireland
Development of treatment Development Secure manufacture Design and Putty like material
Principal Activity for metabolic disease of treatment for chronic digital water marking of 3D woven carbon fibre applied and removed to Solar water heater Fire testing
progression disease technology preforms wounds
% Shares
35% 25% 26% 28.02% 33.62% 45.63% 33.00%
Held and Type
Convertible
£150,000 £100,000 N/A N/A N/A N/A N/A
Loan Stock
Turnover N/A N/A N/A N/A N/A N/A N/A
Profit or Loss
N/A (17,178) N/A N/A N/A N/A N/A
Before Tax
Net Assets/ £51.5k £93.4k (£137.8k) (£1.5k) £14k £39.4k £3.5m
(Liabilities)
Financial Year End 30 April 2023 31 Dec 2023 31 May 2023 28 Feb 2023 30 Sept 2023 31 July 2023 31 Dec 2023
----- End of picture text -----

In the year ended 31st July 2019 the company invested €500,000 in Enbarr Limited, an investment fund managed by Imprimatur Capital. The market value at 31 July 2024 is £856,000.

27. Related Party Transactions

Due to the nature of the University’s operations and the composition of the University’s Council (being drawn from local public and private sector organisations), it is inevitable that transactions will take place with organisations in which a member of the Council may have an interest.

28. Ultimate Controlling Party

There is no one ultimate controlling party.

All transactions involving organisations in which a member of the Council may have an interest are conducted at arm’s length and in accordance with the University’s financial regulations and normal procurement procedures. The University has taken advantage of the exemptions contained in section 33, FRS 102 ‘Related Party Transactions’ not to disclose transactions with subsidiaries as all of the voting rights are controlled within the Group.

Financial Statements for the Year Ended 31 July 2024

Notes

Registered with The Charity Commission for Northern Ireland NIC 100166 ISSN 0307-496X

2024-07-31-accounts

Financial Statements

Contents

Scope of Financial Statements

Public Benefit

Financial Performance

Sources of Income 2023/24

Income

Expenditure

Impact of Pension Deficit

Estates Capital Plan

Coleraine Campus

Derry/Londonderry Campus

Belfast Campus

Jordanstown Campus

Sustainability

Campus

Curriculum

Community and Research Impact

The year ahead

Cashflow and Financing

EBITDA

Net Assets

Endowments

Future Financial Health

Financial Outlook

Risk Management

Process

In addition;

Risk registers

Integration with Internal Audit

Council

The membership of Council, during the 2023/24 academic year is as follows:

The Audit and Risk Committee

The Resources Committee

The People Committee

The Belfast Campus Development Committee

The City Deals and Special Projects Committee

The Vice-Chancellor

The Senate

Opinion

Basis for opinion

Conclusions relating to going

concern

Other information

Opinion on other matters prescribed by the Financial Memorandum (Part 1) between the Department for Employment and Learning (now the

Department for the Economy) and the University of Ulster (“Financial Memorandum”)

Matters on which we are required to report by exception

Responsibilities of the Council

Auditor’s responsibilities for the audit of the financial statements

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Use of our report

1. Basis of Preparation

Going Concern

2. Consolidation

3. Recognition of Income

Grant Funding – Revenue Grants

Grant Funding – Capital Grants

Other Income

Donations and Endowments

4. Pension Schemes

5. Employment Benefits

6. Foreign Currencies

7. Freehold Land and Buildings

8. Assets Under Construction

9. Equipment

10. Fixed Asset Investments

12. Stocks

13. Cash and Cash Equivalents

11. Current Asset Investments

14. Provision for Bad Debts

15. Leases

16. Provisions

17. Maintenance of Premises

18. Taxation Status

19. Reserves

20. Subsidiary Accounting Policies

21. Judgements and Key Sources of Estimation Uncertainty

Carrying Value of Investments

NILGOSC Pension Benefits