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Annual Review and Accounts 2014–15

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Annual Review and Accounts 2014–15 Prof ile Annual Review and Accounts 2014–15 x157029_NUI_Hi-Res.pdf 1 26/11/2015 13:13 CONTENTS Page 02 Introduction from the Chair of Council 04–05 Introduction from the Vice-Chancellor 06–07 Strategic Report 08–29 Charity Status and Public Benefit Statement 30–31 Operational Review 32–37 Financial Review 38–42 Corporate Governance 43–47 Independent Auditor’s Report to Council 48 Statement of Principal Accounting Policies 49–51 Consolidated Income and Expenditure Account 52–53 Balance Sheets 54 Consolidated Cash Flow Statement 55 Notes to the Accounts 56–72 Five-year Summary 73 x157029_NUI_Hi-Res.pdf 2 26/11/2015 13:13 03 x157029_NUI_Hi-Res.pdf 3 26/11/2015 13:13 INTRODUCTION FROM THE CHAIR Mark I’Anson OF COUNCIL Chair of Council and Pro-Chancellor 04 I am pleased to introduce Newcastle University’s financial statements for 2014–15. These outline our strong financial position and the excellent progress we have made against our strategic objectives. Many of the highlights are explained in the Vice-Chancellor’s report and in the pages that follow. We can be proud of achieving most of can relax. We live in a competitive world our goals. Newcastle University scored and have already set challenging new among the very best in the country in targets to further improve the quality of the National Student Survey, the quality Newcastle’s research and extend our of our leadership has been recognised global reputation. at the Times Higher Education Awards, Z[HќZH[PZMHJ[PVUPZHTVUNZ[[OLOPNOLZ[ Our plans for both teaching and research in the sector, our research has been require ongoing investment in people, recognised as internationally excellent, Z`Z[LTZHUKI\PSKPUNZ6]LY[OLUL_[Ä]L V\YÄUHUJLZHYLPUNVVKZOHWLHUK years we will undertake developments student recruitment, including those on our main campus, at the Centre for from less privileged backgrounds, shows Ageing and Vitality, and at Science strong growth despite the increasing Central. We will also invest in a major competition among universities. redevelopment of our student accommodation. All this has been achieved while sticking to our core principles. We are a civic All these achievements in 2014–15 university, perhaps best articulated by our are testament to the committed hard strapline – Excellence with a Purpose. work of our people. I am grateful for the Our research and our teaching are consistent and enthusiastic support of directed to areas where we can make a my fellow members of Council, and wish YLHSKPќLYLUJLPUZVJPL[`HUK[OH[JSLHYS` to thank the Vice-Chancellor and his strikes a chord with the talented young ,_LJ\[P]L)VHYKV\YZRPSSLKZ[HќHUKVM people who choose to study with us. course our excellent students for their contribution to the University’s success We have experienced strong recruitment over the past year. of overseas students to Newcastle and the success of our international But we are not complacent. It remains the campuses in Malaysia and Singapore case that this University, along with the LUOHUJLZIV[OV\YHJHKLTPJWYVÄSL rest of the sector and the wider economy, and the diversity of our community. We faces many challenges. The uncertainty strongly believe in the academic and of the general election is now behind ZVJPHSILULÄ[ZV\YZ[HќHUKZ[\KLU[Z us, but with capped undergraduate fees derive from this diversity and we continue until at least 2017–18, pressures on both to assess opportunities for further pay and pensions, and an increasingly overseas investment where this supports competitive funding environment for our academic vision. research, we need to maintain the balance between strategic investment, In a year that saw further growth in JSVZLÄUHUJPHSTHUHNLTLU[HUKKLSP]LY` our research income, the results of the of value for money. The results described 2014 Research Excellence Framework PU[OLMVSSV^PUNWHNLZJVUÄYT[OL JVUÄYTLK[OLX\HSP[`VMV\Y^VYR^P[O ÄUHUJPHSZ[YLUN[OVM[OL<UP]LYZP[`HUK clear demonstrations of international the sound base from which we intend to excellence and global leadership in KLSP]LYM\Y[OLYNYV^[OHUK[OLM\SÄSTLU[ many areas. This does not mean we of our strategic aims. x157029_NUI_Hi-Res.pdf 4 26/11/2015 13:13 TO CELEBRATE HIS 60TH BIRTHDAY, MARK I’ANSON CYCLED 700KM ACROSS THE ROUTE DES GRANDES ALPES, RAISING MONEY FOR RESEARCH INTO AGEING. 05 x157029_NUI_Hi-Res.pdf 5 26/11/2015 13:13 INTRODUCTION FROM THE Professor Chris Brink VICE-CHANCELLOR Vice-Chancellor 06 The big event of the past year, not just for us at Newcastle University but for the whole higher education sector, was the announcement in December 2014 of the results of the national Research Excellence Framework (REF). x157029_NUI_Hi-Res.pdf 6 26/11/2015 13:13 07 The REF is conducted by the Higher We were also awarded £10m to advance Plans are well advanced for a major Education Funding Council for England our research on urban sustainability extension to the Sports Centre. /,-*,HUKP[`PLSKZHWYVÄSLVM[OL at Science Central. That development Newcastle University does very well quality of research at each university in is powering ahead, as you can see in the annual British Universities and [OL<2/,-*,[OLU\ZLZ[OH[WYVÄSL[V for yourself if you go to the site or just Colleges Sport league, coming 11th determine the formula-based research pass by. The Core building at the front nationally this year – an outstanding grant for each university in England, and (put up by our partners Newcastle achievement for a university that does this grant remains in place until the next City Council) is nearing full occupation, UV[VќLYHZWVY[ZJPLUJLKLNYLL6\Y REF exercise in 2020. The REF is also landscaping is well advanced, and we students are also very entrepreneurial. important from a reputational point of have received planning permission for Last year we spun out more than 30 view, because inevitably it gets turned the £57m Urban Sciences Building. student companies, and our running total into a league table. I am pleased to Our Institute for Sustainability will be over the past decade is more than 200 report that at Newcastle we improved physically present on Science Central in graduate start-up companies currently our ranking, and are listed as 16th in the January 2016, in a revolutionary fabric in operation, supporting over 500 jobs UK (and also 16th in the Russell Group) structure – called The Key – which uses in the region. This past year, students on the ‘research power’ calculation. similar technology to that developed by from Newcastle University won both the the Newcastle University team for the National Union of Students Enterprise Our research has advanced on a 2012 Olympic Stadium. In addition to Award and the Santander Universities number of fronts. Perhaps the best- research and teaching, The Key will be Entrepreneurship Award. known example was the national and used to showcase the Science Central international attention paid to Professor vision to business and industry leaders, The University remains active outside Doug Turnbull and his team’s work on policymakers and local communities. Newcastle as well. Beside our activities mitochondrial donation, a technique that in Malaysia and Singapore, our new enables women subject to mitochondrial The latest National Student Survey London campus opened its doors in disease to have healthy children – a shows that 91% of our students :LW[LTILY6\YÄYZ[VќLYPUNZ ^VYSKÄYZ[:VPTWVY[HU[^HZ[OPZ^VYR HYLZH[PZÄLK^P[O[OLX\HSP[`VM[OLPY in London will be from the Business that Parliament amended legislation education, placing us joint 6th in the UK School – which gained the coveted in order to make its implementation amongst comparator institutions, and ‘triple accreditation’ from three separate WVZZPISL6UHKPќLYLU[MYVU[[OL joint 1st with Oxford in the Russell Group. international bodies (EQUIS, AMBA and Chancellor of the Exchequer, George It is good to have the hard work and AACSB) this past year. Osborne, as part of his Northern KLKPJH[PVUVMV\YZ[HќHJRUV^SLKNLKPU Powerhouse initiative, awarded us a this way. We are also ranked 4th in the Finally, it is a pleasure to report that £20m grant (which we will match) to country for quality of student life by The Newcastle University has again scooped set up the National Centre for Ageing Complete University Guide, and 10th the Times Higher Education Leadership Science and Innovation, to pursue by the Times Higher Education Student and Management Award – the only innovation of products and processes Experience Survey. university to have won it twice. aimed at an ageing population. This will Overall, then, we have had a good year, JVTWSLTLU[[OLZJPLU[PÄJHUKJSPUPJHS A number of developments will further research on ageing for which Newcastle enhance the student experience. The and I would once again like to say a big University is already widely known. As Coherent Campus initiative continues to [OHUR`V\[VHSSV\YZ[HќHUKZ[\KLU[Z a third example, following an initiative improve the University’s appearance. Our Senate, Council and Court, as well as our from the Department of Food and Rural iconic redbrick Armstrong Building is still alumni, donors, benefactors and friends. (ќHPYZ[VWYP]H[PZLP[ZYLZLHYJOHYT-,9( undergoing sensitive restoration work. (the Food and Environment Research The Library is expanding into a newly Agency), Newcastle University was purchased building on Sandyford Road. selected to partner FERA to become Council has agreed that our student responsible for a new national Institute for accommodation on Richardson Road Agri-Food Research and Innovation. is reaching the end of its life, and so (despite the fond memories many alumni have of its somewhat spartan facilities) it is to be replaced, on the same site, in a £78m project. x157029_NUI_Hi-Res.pdf 7 26/11/2015 13:13 STRATEGIC REPORT Professor Chris Brink 08 FOR THE YEAR ENDED 31 JULY 2015 Vice-Chancellor The Strategic Report (pages 8–29) provides an overview of the University and our strategy.
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