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Annual Report 2019/20

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Annual Report 2019/20 ANNUAL REPORT 2019/20 AND FINANCIAL STATEMENTS TO 31 JULY 2020 1 Annual Report 2019/20 and Financial Statements to 31 July 2020 Annual Report 2019/20 and Financial Statements to 31 July 2020 2 Contents Chair’s Foreword This has been an extraordinary year for us all, met by an extraordinary institutional performance. I refer to the emergence of the COVID-19 global pandemic and the response of the University’s leadership, our staff and our students. 2 Chair’s Foreword On the 23 March 2020 the UK Government announced impact resulting from the waiver of student rents in a national lockdown in an attempt to control the the final term, along with reduced commercial income 3 Our Vision, Mission, Strategy and Values spread of COVID-19. But as early as January 2020 the as a result of operating restrictions. University had implemented significant measures to 5 Our Stakeholders manage the risk that the virus, then reported to be We report a record surplus for the year, following the spreading uncontrollably in Italy and Spain, posed on record deficit for the year in 2018/19 due to accounting 5 How we create value our campuses and to our communities. The safety of for different USS pension deficit recovery plans. our staff, students and our region has been paramount This topsy-turvy reporting is the result of the valuation 6 Value for money in our planning and response throughout. of changing liabilities rather than a reflection of real 7 Vice-Chancellor’s Introduction underlying performance. Pensions remain a current When the lockdown was introduced, and following issue as USS is in the middle of yet another valuation 9 How we performed: Government advice, we enabled students to return and is presenting us, and much of the sector, with home where possible and ensured that staff could work considerable challenges. – Knowledge: teaching and learning remotely. With most of the academic year’s teaching – Knowledge: research and impact completed we faced the enormous and vital task of In August 2020, Professor Sir Steve Smith stepped – People delivering our assessments and final examinations down as Vice-Chancellor after 18 years of leading the – Relationships on-line. By building our technical capacity and capabilities University’s performance. His contribution has been rapidly, we did it and our examinations were delivered immense, and has touched upon every aspect of – Physical resources successfully, enabling students to progress with their Exeter’s astonishing and stellar rise over his tenure. – Finances academic studies within the University or to graduate His expertise will continue to benefit UK higher with an Exeter award. The highest quality and education following his appointment by the UK 27 What do our students think? standards were maintained throughout. Government as its International Education Champion. 29 Environment and Climate Emergency The creation of this role is a strong indicator of the I am in awe of the way staff and students transitioned Government’s belief of the importance of international 31 Risk to remote working so quickly and with such adaptability. students to the future of UK higher education. We scaled up our IT infrastructure and developed This, along with universities’ role in delivering the 34 Financial Statements to 31 July 2020 rigorous policies to protect the quality of Exeter awards UK’s Industrial Strategy, especially in a post-Brexit whilst putting our students and fairness at the heart of world, gives me confidence in our long-term future. 99 Five Year Summary Accounts our approach. Our ‘no detriment’ policy for student assessments was developed in partnership with our The 2019/20 year we are reporting on here shows some students and led the way for the sector, maintaining of the impacts of COVID-19 but it will be in 2020/21 rigorous standards whilst recognising and addressing and beyond that our financial challenges will be the the very real anxiety that the crisis was causing. greatest. We have responded exceptionally well so far. We know our international student recruitment is lower Glancing through the Financial Statements included in in 2020/21 and that our COVID-19-related operating this report may give the reader a sense that COVID-19 costs are higher. We have implemented a range of has had only a marginal impact on the University. financial mitigations to cover this while protecting our This is emphatically not the case. Our staff, students strategic capability so that when the UK and the rest and communities have been, and continue to be, of the world emerge from this crisis we will be ready impacted by the pandemic in a multitude of ways. to respond to future opportunities. However, because the first national lockdown occurred towards the end of the academic year, and was met COVID-19, Brexit and pensions will make 2020/21 one by the outstanding response of staff and students of our most difficult years. The University’s leadership is transitioning to a largely on-line operation, and through now in the capable hands of our new Vice-Chancellor, the implementation of a thorough budget mitigation Professor Lisa Roberts, whom I welcome to the plan and an exceptional student recruitment University. She is supported by an outstanding leadership performance in an incredibly challenging context, team and I have every confidence that the University will we have been able to safeguard our financial position. successfully navigate the challenges ahead and emerge into a post-COVID-19 world ready for the decade that The growth of our teaching and research income shown lies ahead and the crucial role that universities will play. in the Financial Statements was earned at the start of the academic year, through record international student Sarah Turvill recruitment and our continued high level of research Chair of Council and Pro-Chancellor performance. COVID-19 has impacted our growth in research income, but only a little, its main financial 3 Annual Report 2019/20 and Financial Statements to 31 July 2020 Annual Report 2019/20 and Financial Statements to 31 July 2020 4 Our Vision, Mission, Strategy and Values Our Vision Our Values Our driving ambition is to be a Global 100 research leader We have a core set of values, which are central and create graduates of distinction, within a community to everything we do. These describe our defining of the most talented and creative minds. We are working characteristics and what makes Exeter different. towards this vision over the coming years. They are shared by our students, colleagues, graduates, stakeholders and supporters, and guide Our Mission us in our day-to-day decisions: Our Mission is to make the exceptional happen by Ambition: Ambition has driven us to where we are challenging traditional thinking and defying conventional today, and will help sustain a Global 100 position boundaries. Our Strategy establishes how we will work towards achieving this, laying the foundations for our Challenge: We relish challenge and reach for future success as a Global 100 research leader. the previously unachievable Collaboration: We work at our best when Our Strategy collaborating with students, colleagues and partners Making the Exceptional Happen Our strategy, Making the Exceptional Happen, sets out Community: We support and inspire each other how we will achieve our vision and mission and is built to be the best that we can be around five goals: Impact: Our vision requires disruptive thinking, Building research power to tackle fresh ways of working and solutions with impact 1 global challenges: We will generate research power and build on our already Rigour: We strive to reach the highest standards strong teams so that they can meet the of scholarships and service challenges facing our world. Delivering an internationally excellent 2 education: We will provide an education that makes our talented students stand out, giving them the ability to make a difference in the world. Creating an impact regionally, national 3 and globally: We will play an important role locally, nationally and globally. We realise that engaging with communities strengthens us and increases the benefits to society. Supporting our people to make the exceptional happen: We must attract, 4 develop and retain outstanding individuals, fostering a diverse community which is unified by our values. Making the most of our resources: 5 We must manage our resources properly, investing so that our infrastructure is ready for the next generation, whilst ensuring we are environmentally responsible. 5 Annual Report 2019/20 and Financial Statements to 31 July 2020 Annual Report 2019/20 and Financial Statements to 31 July 2020 6 Our members Our Stakeholders Value for money Employers The University serves a multitude of stakeholders. Students We recognise that our students invest a great deal of the best academic staff who use their research to inform NHS Partners money, time and emotional energy into the University their teaching. Research also builds the University’s Our members – students, staff, alumni and trustees Student Unions Staff which we expect to be a lifelong relationship. Value for reputation which in turns fuels the value of an Exeter - are what make the University. Our activity reaches Research sponsors Office for students money is rightly a significant concern to our students, as degree. For these reasons we believe that teaching out locally, regionally, nationally and globally. We Education partners Alumni it is to us; this is even more so as a result of the Covid and research are inseparable activities. are an important part of our local community in Local Government Trustees pandemic. The University strives to deliver the best Devon and Cornwall, making a significant economic Investors contribution, working with local partners such as possible outcomes by optimising the effectiveness of As a charity we reinvest our surpluses to support the Royal Devon and Exeter NHS Foundation Trust, expenditure in support of the student experience.
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