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FINANCIAL STATEMENTS for the Year Ended 31 July 2020 the UNIVERSITY of MANCHESTER

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FINANCIAL STATEMENTS for the Year Ended 31 July 2020 the UNIVERSITY of MANCHESTER FINANCIAL STATEMENTS For the year ended 31 July 2020 THE UNIVERSITY OF MANCHESTER OFFICERS VICE-PRESIDENTS AND Mr Michael Crick, BA (2021) OFFICERS DEANS OF FACULTIES Chancellor Mr Colin Gillespie, BSc (Hons), AND Mr Lemn Sissay, MBE Science and Engineering FCA (2022) Professor Martin Schröder, Mr Nick Hillman, MA (2022) ADVISERS Pro-Chancellor BSc, CChem, PhD, DIC, FRSE, Mrs Gillian Easson, MA,FRSA FRSC, MAE Mrs Caroline Johnstone, BA, CA (2023) Humanities President and Vice-Chancellor Professor Keith Brown, MA, Mrs Bridget Lea, BA Hons (2023) Professor Dame Nancy J CONTENTS PhD, FRHS, FRSE Dr Neil McArthur, MBE, CEng, Rothwell, DBE, DL, BSc, PhD, Biology, Medicine and Health FIMechE, FIET (2022) 1 Chair’s foreword DSc, FRS, FMedSci, FRSB, Professor Graham M Lord, FRCP(Hon), FRSA Mr Robin Phillips, BA (Hons)(2022) 2 Review of the year BA, MA, MB, BChir, PhD, FRSB, FRCP, FMedSci Mr Andrew Spinoza, BA, MCIPR by Professor Dame Deputy President Nancy Rothwell, (2021) and Deputy Vice-Chancellor President and Mr Richard Solomons, BA (Econ) Professor Luke Georghiou, BSc, CHAIRS OF COMMITTEES Vice-Chancellor PhD, MAE, FRSA OF THE BOARD OF (Hons) (2021) 5 Key performance indicators GOVERNORS Mrs Alice Webb M.Eng, Hon DA Chair of the Board of (2021) 6 The year in pictures Chair of Audit Committee Governors and Pro-Chancellor Mr Colin Gillespie, BSc (Hons), 12 Financial review by Mr Edward M Astle, MA, MBA Category 3, members FCA Robert Fraser of the Senate (6) Chair of Finance Committee Chief Financial Officer Deputy Chair of Professor Claire Alexander, the Board of Governors Dr John Stageman, OBE, PhD, 23 Corporate BA Hons, D Phi, FAcSS l (2022) Dr John Stageman, OBE, PhD, FRSB, MRSC CChem (until 31 governance statement Professor Danielle George, MBE, FRSB, MRSC, CChem August 2020) 27 Remuneration (until 31 August 2020) Mrs Caroline Johnstone, BA, CA BSc, PhD , FIET, FCGI (2022) Committee report (from 1 September 2020) Dr Reinmar Hager, MSc, PhD Mrs Ann Barnes, BA (Hons), Chair of Remuneration (2023) 32 Modern slavery and human Diploma IHM Committee trafficking statement (from 1 September 2020) Professor Steven Jones, PhD, Mr Gary Buxton, MBE, PFHEA (2021) 39 Statement of the Board of BA (Hons.) ACC Governors’ responsibilities for Registrar, Secretary Dr Delia Vazquez, BA Hons, MPhil, the year ended 31 July 2020 and Chief Operating Officer Chair of Nominations PhD, CText FTI, SFHEA (2021) Mr Patrick Hackett, BArch Committee 40 Independent auditor’s report Mr Edward M Astle, MA, MBA Dr Jim Warwicker, BSc, PhD to the Board of Governors of (2023) Director of Finance Chair of Staffing Committee The University of Manchester Mr Stephen Dauncey, BSc, FCCA Mrs Ann Barnes, BA Hons, Category 4, members of 50 Financial Statements for the (until 18 October 2019) Diploma IHM staff other than academic year ended 31 July 2020 Mr David Soutter, BA MA FCA or research staff (1) 52 Statement of principal (12 August 19 – 30 June 2020) MEMBERSHIP OF THE Ms Rosalyn Webster, BA MA accounting policies Mr John Cunningham, BA Hons, BOARD OF GOVERNORS (2022) 59 Consolidated statement FCCA (1st April – 31st July 2020) 1 September 2020 Category 5, student member (1) of comprehensive income Chief Financial Officer (to 31 August in the year indicated) Nana Agyeman (2021) 60 Consolidated statement Mr Robert Fraser BSc, MBA, CA Category 1, ex officio of changes in reserves The following were members of (from 1 July 2020) members (2) the Board of Governors in the 61 Consolidated statement Professor Dame Nancy Rothwell, previous academic year, to the of financial position DBE, DL, BSc, PhD, DSc, FRS, FMedSci, FRSB, FRCP(Hon), dates shown: 62 Consolidated statement VICE-PRESIDENTS FRSA Dr John Stageman, OBE, PhD, of cash flows (POLICY) President and Vice-Chancellor FRSB, MRSC CChem Deputy 63 Notes to the Teaching, Mr Kwame Asamoah Kwarteng, Chair (31 August 2020) financial statements Learning and Students Professor April McMahon, HND, BSc,MSc General Secretary Professor Nalin Thakkar, MA, PhD, FBA, FRSE, FLSW of the Students’ Union BDS, MSc, PhD, FRCPath The University of Manchester is (31 August 2020) Category 2, lay members (13) registered in the United Kingdom Research Mr Edward M Astle, MA, MBA, Ms Sara Khan, BA (Hons) and its business address is: Professor Colette Fagan, Chair (2021) Liberation and Access Officer - The University of Manchester BA, MSc, PhD, FAcSS Students’ Union (30 June 2020) Oxford Road Mrs Ann Barnes, BA Hons, Manchester Social Responsibility Diploma IHM (2023) Professor Aneez Esmail, M13 9PL Professor Nalin Thakkar, Mr Gary Buxton, MBE, BA Hons, PhD, MRCGP, MFPHM, FRCP BDS, MSc, PhD, FRCPath ACC (2021) (November 2019) FINANCIAL STATEMENTS 1 CHAIR’S FOREWORD Edward M Astle Chair of the Board of Governors and Pro-Chancellor These financial statements cover a year in which every aspect of life has been marked by the impacts of COVID-19. Our University community has shown incredible resolve as we navigate these difficult times. Like every organisation across the world, we cash adjustments, mainly relating to the USS would have wanted for our students, and the have faced unprecedented challenges as a result pension scheme which, as the Chief Financial University has been working closely with student of the COVID-19 pandemic. I and the Board Officer explains on page 12, continues to be representatives on resolutions to some of the are hugely proud of the way in which the whole volatile. difficulties faced. University community has responded: the rapid The longer-term financial impacts of the We have also been determined to retain a focus move to online learning and remote working pandemic are still uncertain for a sector already on our longer-term objectives. Equipping our in the spring, the acceleration of research in facing significant external pressures. students with skills for life and work, extending COVID-19-related areas, the selfless help that the frontiers of knowledge and finding solutions staff, students and alumni provided to the NHS We, like all research-intensive universities, are that benefit the whole of humanity through our and those in need in Greater Manchester and critically dependent on international students research, and further extending our social and beyond, and the generous donations exceeding for our financial sustainability. While our final civic responsibility initiatives have never been more than £1 million for a student hardship numbers were strong overall, there will continue more important. fund. to be ongoing uncertainties for the international market. And we face other longer-term financial In these exceptional circumstances I would like The pandemic created significant financial risks, not least in putting the USS pension to finish by offering thanks – to board members uncertainty, to which the University’s leadership scheme on a sustainable and affordable footing. who have gone the extra mile since the crisis were quick to respond with a wide range of struck, not just with the additional meetings cost-saving measures – including a voluntary Notwithstanding the impact of COVID-19, as and enhanced governance which we have put reduction in their salaries – that contributed to the Vice-Chancellor’s report makes clear, the into place, but by drawing on their deep and the improved cash position. The key measure University continued to make good progress diverse experience to help management navigate of the University’s financial performance is our over the year against the ambitions set out in the crisis; to the Vice-Chancellor and her underlying financial surplus which we now our new vision and strategic plan. At the same whole leadership team for their tireless efforts calculate after depreciation and capital income time, an incredible amount of work took place overseeing the response to such extraordinary to give a more accurate picture. This was 0.5% of to ensure a safe return to campus for students, challenges; to the alumni and donors who have income, down from 4.6% as recalculated for the and subsequently in response to changing been so generous; and most of all to our staff prior year. Overall total comprehensive income national and regional restrictions and guidance. and students whose resilience, adaptability and increased to £135.2 million from a deficit of The first months of the new academic year collective endeavour are helping us through (£111.6 million) as a result of significant non- have unquestionably not been what any of us these uncharted waters. 2 FINANCIAL STATEMENTS PRESIDENT AND VICE-CHANCELLOR’S REVIEW OF THE YEAR Professor Dame Nancy Rothwell President and Vice-Chancellor The year covered by these Financial Statements was unlike any other in our lifetime. When the COVID-19 pandemic took hold in the spring we moved quickly to ensure the safety of our staff and students, while many of our people worked selflessly to help the local, national and global recovery. Throughout 2019/20, our staff and students By any normal standards, the first half of discovery, teaching and learning, and social have been remarkably resilient, flexible and the financial year was highly significant for responsibility, and introduced four new themes: innovative in response to the pandemic, the higher education sector. There was a our people, our values; innovation; civic general election and we saw responsibility and have demonstrated the humanity that is engagement; and global influence. for universities subsequently split across two such an important value to our University. In ministerial portfolios. We also entered the If the first half of the academic year was such testing circumstances for the sector and transition period during which the UK’s future eventful, the second was unprecedented, as indeed the world, we took immediate action relationship with the EU would be negotiated. COVID-19 grew into a global pandemic. In to forecast and mitigate financial impacts.
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