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
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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 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[LTILY 6\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. Each of our five main strategic objectives is described in detail to show the highlights of the past year, key priorities for the coming year, the key performance indicators we use to measure success and the key risks which we have to manage. An overall assessment is given for each objective: Good, Satisfactory, Medium Risk or High Risk. As the University’s Chief Executive Officer, I am responsible to Senate and Council for delivery of the University’s agreed strategy. >LVќLY\UKLYNYHK\H[LKLNYLLZHUK University postgraduate taught and research overview degrees in over 50 subject areas. Our 50-acre site at the heart of Newcastle Newcastle University can trace its origins city centre has some of the best to a school of medicine and surgery, teaching and learning facilities in the established in Newcastle in 1834, and JV\U[Y`>LOH]LPU]LZ[LKZPNUPÄJHU[S` to the College of Physical Science, later in the University’s estate over the last Armstrong College, founded in the city few years to improve the quality of in 1871. These two colleges formed [OLLU]PYVUTLU[MVYZ[\KLU[ZZ[Hќ one division of the federal University of and visitors. We are one of the largest Durham, the Durham Colleges forming employers in the North East of England, the other division. The Newcastle ^P[OHWWYV_PTH[LS` Z[Hќ Colleges merged to form King’s College in 1937 and, in 1963, when the federal We play a leading role in the economic, University was dissolved, King’s College social and cultural development of became the University of Newcastle the North East of England and we upon Tyne, latterly trading as Newcastle collaborate with a range of partners and University. strategic initiatives, helping to extend [OL x157029_NUI_Hi-Res.pdf 8 26/11/2015 13:13 The organisation We have three core academic functions: • research and innovation • learning, teaching and the student experience • engagement Strategic leadership of each of these is provided, on a University-wide basis, 09 by three Pro-Vice-Chancellors (PVCs). Delivery of the core academic functions occurs in our three faculties, each led and managed by a PVC: • Faculty of Humanities and Social Sciences • Faculty of Medical Sciences • Faculty of Science, Agriculture and Engineering Each faculty consists of a number of academic units, typically schools or research institutes, each led and managed by a head. The core academic functions and line-management structures combine to form the academic map of the University in which we envisage the faculties as vertical columns, with the core functions as cross-cutting institutional activities. Interdisciplinary and cross-disciplinary activities are co-ordinated and supported by the functional PVCs. The academic enterprise is supported by a number of corporate activities within the professional support services, led and managed by the Registrar. University strategy The University’s key strategic planning document is Vision 2021: A World-class Civic University. The University’s mission is: • to be a world-class research-intensive university • to deliver teaching and facilitate learning of the highest quality • to play a leading role in the economic, social and cultural development of the North East of England ;OLÄ]LRL`Z[YH[LNPJVIQLJ[P]LZHYL[V achieve and maintain the following: • top 20 in the UK for research • top 20 in the UK for student satisfaction • focus on three societal challenge themes: ageing; social renewal; sustainability HZPNUPÄJHU[PU[LYUH[PVUHSUH[PVUHSHUK YLNPVUHSWYVÄSLHUKYLW\[H[PVU ÄUHUJPHSHUKLU]PYVUTLU[HSZ\Z[HPUHIPSP[` x157029_NUI_Hi-Res.pdf 9 26/11/2015 13:13 TOP 20 IN THE UK FOR RESEARCH 10 Priorities Measuring success • Perform high-quality research that is internationally recognised Research income per academic FTE (£k): • Provide a high-quality environment for target Russell Group Median Z[\KLU[ZHUKZ[Hќ • Develop an innovation culture Newcastle Russell Group Median embedded throughout the University 45 • Further develop our activities in relation to corporate engagement 43 • Maximise/diversify research funding including opportunities via the N8 41 Research Partnership and international sources 39 • 9HPZL[OLWYVÄSLVMV\YYLZLHYJOV\[W\[Z 37 research income per academic FTE (£k) per academic income research 35 10-11 11-12 12-13 13-14 14-15 x157029_NUI_Hi-Res.pdf 10 26/11/2015 13:13 OVERALL ASSESSMENT SATISFACTORY 11 World citation impact Number of PhDs graduated per academic FTE: (using a normalised measure) target Russell Group Median Newcastle Newcastle 1.70 Russell Group Median 0.25 Russell Group Median 1.65 0.20 1.60 1.55 0.15 1.50 0.10 1.45 0.05 normalised citation impact normalised citation 1.40 PhDs graduated per academic FTE per academic PhDs graduated 1.35 2010 2011 2012 2013 2014 0.00 9-10 10-11 11-12 12-13 13-14 x157029_NUI_Hi-Res.pdf 11 26/11/2015 13:13 Research Council income increased for The work of Professor Doug Turnbull and Risks the third successive year from £30.9m OPZ[LHT^PSSTHRLHTHQVYKPќLYLUJL[V • We need to continue to publish in 2013–14 to £32.3m in 2014–15. UK [OLSP]LZVMWH[PLU[ZHUKMHTPSPLZHќLJ[LK high-quality research outputs government and health authority income by mitochondrial disease. Legislative • We need to continue to obtain new increased from £20.1m to £21.3m and change has taken place to enable this research grants and contracts research income from EU government pioneering work, and most importantly, sources increased from £12.2m to families can now protect their future >LULLK[VYLJV]LYZ\ѝJPLU[THYNPU £13.0m. generations from this disease. on our research income to cover our research support costs However, new research awards, a lead The international research agenda, • We need to secure and exploit indicator for future research income, HUKYHPZPUN[OL x157029_NUI_Hi-Res.pdf 12 26/11/2015 13:13 13 2014–15 SAW RESEARCH INCOME INCREASE BY 16th 3% IN THE UK RANKINGS FOR RESEARCH POWER (REF 2014) MEDICAL SCHOOL RANKED IN THE50 WORLD’S TOP x157029_NUI_Hi-Res.pdf 13 26/11/2015 13:13 TOP 20 IN THE UK FOR STUDENT SATISFACTION 14 Priorities Measuring success We aim to deliver research-informed teaching and facilitate applied learning National Student Survey - overall satisfaction of the highest standard and deliver a fully rounded, enjoyable and formative 92% Newcastle student experience. Our key priorities 90% Sector are to: 88% • continue to recruit high-quality undergraduate students within a 86% competitive market following the 84% removal of student numbers controls 82% • further develop our postgraduate % satisfied overall 80% [H\NO[Z[\KLU[VќLYHUKYLJY\P[TLU[ drawing on our involvement in 78% HEFCE’s Postgraduate Support 76% 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 Scheme in 2015 • continue to prioritise the recruitment of high-quality postgraduate research students International Student Barometer - overall satisfaction • achieve managed growth in our student numbers, whilst addressing 92% Newcastle the associated capacity and student UKISB support implications 91% • continue to manage the impact 90% VM/VTL6ѝJLJVU[YVSZVURL` international recruitment markets 89% and the student experience • manage the impact of changes to the 88% ÄUHUJPHSZ\WWVY[MVYKPZHISLKZ[\KLU[Z % satisfied overall • continue our work to ensure the full 87% integration of our UK and international students as a cohesive learning 86% 2010 2011 2012 2013 2014 community • ensure delivery of an equivalent ‘Newcastle University Student Experience’ in transnational, PRES and PTES Surveys VќJHTW\ZKPZ[HUJLVYVUSPUL programmes 87% PRES PTES • ensure a successful Quality Assurance 86% Agency Higher Education Review in Spring 2016 85% 84% 83% % satisfied overall 82% 81% 2013 2014 2015 x157029_NUI_Hi-Res.pdf 14 26/11/2015 13:13 OVERALL ASSESSMENT GOOD 15 x157029_NUI_Hi-Res.pdf 15 26/11/2015 13:13 Risks • We need to continue to deliver an excellent student experience that meets student expectations • We need to maintain teaching quality and standards in the context of managed growth • We need to achieve widening participation benchmarks and Access Agreement milestones 16 Progress during the past year The University maintained its strong institutional performance in the National Student Survey (NSS) of undergraduate students, with 91% of YLZWVUKLU[ZZH[PZÄLK^P[O[OL overall quality of their course (the same as in 2014 but showing sustained improvement from 81% in 2006). This result placed Newcastle University joint 6th among comparable ‘full service’ (ie non-specialist) universities and 1st equal, with Oxford, in the Russell Group. Percentage of students who agree or strongly agree to satisfaction in: Newcastle Sector 2014 2015 2015 Overall satisfaction 91% 91% 86% The teaching on my course 90% 89% 87% Assessment and feedback 71% 71% 73% Academic support 86% 86% 82% Organisation and management 86% 86% 79% Learning resources 90% 91% 87% Personal development 84% 86% 83% Satisfaction with the students’ union 82% 81% 69% ;OLZLYLZ\S[ZYLÅLJ[[OLZPNUPÄJHU[ learning technology (PCs/networking ,_JLSSLU[LTWSV`HIPSP[`V\[JVTLZYLÅLJ[ impact of the University’s commitment etc), laboratories, campus buildings, our continued focus on the development to articulating and delivering the ÄUHUJPHSZ\WWVY[HUKZ\WWVY[[OYV\NO of our students’ employability skills. The \UKLYNYHK\H[LZ[\KLU[VќLYHZ^LSS [OL*HYLLYZ:LY]PJL(YLHZPKLU[PÄLKMVY 2014 Destination of Leavers of Higher as our investment in upgrading IT improvement, including opportunities Education survey employment indicator of facilities, improving library resources, for the social integration of international 94.1% (2013: 93.7%) placed Newcastle and developing innovative, user-friendly, students, are being addressed. 10th equal in the Russell Group and learning spaces. Whilst improvements in 1st in the North East. The proportion previous years in the area of assessment The 2015 Postgraduate Taught of graduates employed full time in and feedback have been sustained, this Experience Survey (PTES) results professional and managerial work is is the only area of the NSS where our indicated that 85% of respondents were 85.4% (84.7% in 2013). Figures compare score continues to be below the sector ZH[PZÄLKV]LYHSS;LHJOPUNZJVYLKHU favourably with the national picture. average. Actions to address this and average satisfaction rate of 84% and to share good practice remain a high the score for resources was 88%. In Our continued focus on delivering our priority. At subject area level, 30 out of common with the sector-wide results, \UKLYNYHK\H[LZ[\KLU[VќLYKLÄUPUN 46 met or exceeded our 90% target for assessment and feedback remain the common principles, elements and overall student satisfaction (33 out of 46 more challenging, with 74% of 2015 opportunities at the core of the learning in 2014). respondents expressing satisfaction. experience of all undergraduate students, is complemented by further development In the Autumn 2014 International The 2015 Postgraduate Research of our commitments to the postgraduate Student Barometer (ISB) results, 90% of Experience Survey (PRES) results experience. For all of our students, 5L^JHZ[SLYLZWVUKLU[Z^LYLZH[PZÄLK indicated that 83% of postgraduate we are committed to investment overall (92% in 2013). Newcastle YLZLHYJOZ[\KLU[Z^LYLZH[PZÄLKV]LYHSS that enhances both their academic University was ranked 1st out of 14 ^P[O ZH[PZÄLK^P[OZ\WLY]PZPVU" experience and all other aspects of participating Russell Group universities in ZH[PZÄLK^P[OYLZV\YJLZ" ZH[PZÄLK their time at Newcastle: social, cultural, the categories of registration, support in ^P[OWYVNYLZZPVU"HUK ZH[PZÄLK^P[O sporting, residential and work experience. opening bank accounts, physical library, their research skills development. x157029_NUI_Hi-Res.pdf 16 26/11/2015 13:14 17 The development of students’ skills In response to a growing student We are making major capital investment for learning, life, work and professional population and changes in student in our sporting infrastructure, with plans WYHJ[PJLPZHOPNOWYPVYP[`HUK^LVќLY learning and study preferences, MVYHZPNUPÄJHU[L_[LUZPVUVMV\YMHJPSP[PLZ thousands of opportunities through we continue our investment in the alongside ongoing refurbishment and our ncl+ scheme. In 2014–15, for refurbishment and development of development of existing sites. example, well over 5,000 volunteering learning, teaching and social learning opportunities were provided through space. Our innovative ‘Pop-up Library’ in We continue to enhance promotion SCAN (Student Community Action the heart of campus provided additional VMV\YM\SSZ[\KLU[VќLY[VWYVZWLJ[P]L Newcastle), representing almost 50,000 study spaces during the peak revision students in ways that inform, engage OV\YZVMZLY]PJL:[\KLU[ZHSZVILULÄ[ and examination period. Anticipating and support them in their aspiration to from accredited and paid placements, further growth and demand, we are study at Newcastle University. an entrepreneurship module, the improving library resources with the Newcastle Work Experience scheme acquisition of an additional library Ongoing development of our digital and and the JobsOC (Jobs On Campus) building, which will open in January social media outreach is enabling us to amplify the impact of our successful initiative, which employs students in [VWYV]PKLHZPNUPÄJHU[PUJYLHZL temporary and casual work on campus. in library study space and facilities. student recruitment and widening This year, 233 students completed our participation activities with schools and new ncl+ Award, which gives students >LHYLJVU[PU\PUN[VPU]LZ[ZPNUPÄJHU[S` colleges across the UK. the opportunity to record formally their in refurbishing and replacing our student As part of our Access Agreement activity and achievements on their accommodation stock. Students commitments, we now deliver our academic record. ILULÄ[[LKMYVTHM\Y[OLY en suite rooms as a result of the development ÅHNZOPW7(9;5,9:7YVNYHTTL[V The Students’ Union-organised Teaching of accommodation at Kensington more than 900 schools nationally, Excellence Awards celebrate outstanding and Park Terraces, which opened in making it one of the largest access performance by the University’s September 2014. Plans to replace the schemes in the UK. Our wide-ranging activities for schools and colleges HJHKLTPJHUKZ\WWVY[Z[Hќ:[\KLU[Z current Richardson Road self-catering across the UK, delivered by a team of UVTPUH[LO\UKYLKZVMZ[HќHJYVZZH accommodation are under way, to create number of categories each year, and 1,300 en suite rooms. trained and highly professional Graduate the judging process culminates in a Ambassadors, and promoted through our unique Teachers’ Toolkit, are key OPNOWYVÄSLJLSLIYH[PVUL]LU[PU^OPJO Sport is a vital element of the student the shortlisted candidates are presented experience at Newcastle with more elements of our success in student and the winners announced. The event than 11,000 students taking out Sports recruitment. Centre membership in 2014–15. In PZHWVW\SHYHUKPUÅ\LU[PHSL_HTWSLVM Our ongoing popularity in 2014–15 the University and its students working performance sport Team Newcastle ^HZHNHPUYLÅLJ[LKPUL_JLSSLU[6WLU in partnership as members of a thriving was ranked 11th out of 151 institutions Day attendances, culminating in record academic community. competing in the British Universities and Colleges Sport (BUCS) programme. numbers of applications for 2015 entry. x157029_NUI_Hi-Res.pdf 17 26/11/2015 13:14 FOCUS ON THREE SOCIETAL CHALLENGE THEMES 18 Priorities Risks • Develop plans for the National • Continue research activity on Smart • We need to realise the full potential Centre for Ageing Science and Cities, working with key external of the proposed National Centre for Innovation (NASI) partners Ageing Science and Innovation (NASI) • Exploit opportunities to bid for • Continue to deliver engagement and • We need to develop Newcastle European funding for research and impact in the region, nationally and Science City in a manner consistent innovation projects through our internationally with the Strategic Overview membership of the European Institute • Contribute to the University’s • We need to generate new and of Innovation and Technology preparations (as part of its Raising high-quality impact case studies for • Develop the Future Cities initiative the Bar programme) for REF 2020 all three themes working with Newcastle City Council • Develop the Urban Sciences Building Progress during and the proposed Conference and Learning Centre at Science Central the past year Societal challenge themes are a key part Measuring success of the University’s strategic development and are a clear demonstration of our Number of modules offered in each year vision as a world-class civic university related to societal challenge themes with a global reputation for excellence. Each of our three chosen societal 900 challenge themes: ageing, social 800 renewal, and sustainability is led by a Faculty Pro-Vice-Chancellor on behalf of 700 the University supported by a Director 600 and a small cross-faculty institute. Each 500 theme is described in more detail here, 400 together with some of the key highlights from the past year. 300 200 Two initiatives common to all three 100 themes were the award of Honorary degrees to exemplars in these chosen 0 12-13 13-14 14-15 themes and the visibility of our activity at the 2014 political party conferences. We were pleased to award Honorary degrees to Angela Rippon (ageing), Paul Marshall (social renewal) and In the submission to the 2014 Research Bruce Babbit (sustainability). We gave Excellence Framework (REF) 68 of the 117 presentations on ageing at the Liberal case studies addressed the University’s Democrat conference, social renewal societal challenge themes (SCTs) at the Conservative conference, and sustainability at the Labour conference – all were well received. REF case studies – 42% SCT case studies – 58% x157029_NUI_Hi-Res.pdf 18 26/11/2015 13:14 OVERALL ASSESSMENT GOOD 19 Ageing Highlights during the past year included: • the Chancellor of the Exchequer The Newcastle University Institute for announced the successful Newcastle Ageing brings together expertise from University bid to create the National across the University as a hub for Centre for Ageing Science and research and innovation activity focused Innovation (NASI) in his Autumn on how we can live better for longer in statement in December 2014. This our communities and maintain our quality centre will support 1,300 jobs across of life. Living longer is now ‘inevitable’: the city and provide a £22m boost average life expectancy in the UK and to the region. Newcastle University elsewhere continued to increase at the is matching the government’s £20m rate of more than two years per decade. pledge, bringing the total investment in The new ageing challenge for the NASI to £40m [^LU[`ÄYZ[JLU[\Y`PZOV^KV^LLUZ\YL • we became founder members of the our extra years are spent in good health European Institute of Innovation and for as long as possible? Technology (EIT): Knowledge and The Institute has three primary aims: Innovation Community in Lifelong Health and Active Ageing. EIT Health • to advance understanding of healthy is a consortium of partners from ageing by conducting world-class leading businesses, research centres research in the biological, medical and and universities from across 14 EU psychosocial aspects of ageing across countries. Its goal is to contribute the life course to increasing the competitiveness • to generate impact by translating of European industry, whilst also research into real-world outcomes to improving the quality of life of Europe’s ILULÄ[[OLW\ISPJWH[PLU[Z[OL5/: citizens and the sustainability of and industry healthcare systems • to contribute to Newcastle University’s • scientists at the Newcastle University vision to be a world-class civic Institute for Ageing and Health and Keio university through local, national and University School of Medicine, Tokyo international engagement with key have been investigating the secret of stakeholders why some people live a healthy and physically independent life over the age of 100. They explored which biological and pathological processes may be the most important for successful ageing after 100 years of age x157029_NUI_Hi-Res.pdf 19 26/11/2015 13:14 20 Social renewal Highlights during the past year included: • Newcastle University representatives • the Centre for Doctoral Training in visited 10 Downing Street Policy Unit The Newcastle University Institute for Digital Civics is training doctoral to discuss their report ‘Reimagining Social Renewal, established in 2012, students (minimum of 55 over the next the Rural: What’s Missing in Rural is helping us to achieve our vision of Ä]L`LHYZ[VYLKLZPNUSVJHSZLY]PJLZ Policy?’ a world-class civic university while with communities, and to rethink how • Professor Sugata Mitra launched maintaining excellence with a purpose, citizens interact with local government. SOLE Central (for self-organised ensuring we understand not just what The multidisciplinary centre has learning environments) we are good at, but also good for. Our received an £8m EPSRC award, and HJ[P]P[`PZMVJ\ZLKPU[OYLLHYLHZ!ÄYZ[HZ has expertise in digital interaction, a thought leader; secondly, through the planning, public health, security, public production and dissemination of involvement in land use, and education high-quality research and scholarship • +Y:\aHUUL4VќH[[^VYRLK^P[O that then informs policy; and thirdly, a team to examine the impact of working on selected projects with the April 2013 government Welfare partners. We want to explore the ways 9LMVYTZWLJPÄJHSS`[OLºILKYVVT in which a research-intensive university tax’, on the North East. The research can connect with society and make a ÄUKPUNZ^LYLWV^LYM\S"YLK\JLK KPќLYLUJL PUJVTLHќLJ[LKW\YJOHZPUNWV^LY Our key challenge is ‘how can people, of essentials like food and utilities communities and societies thrive when • building on the Newcastle City faced with rapid, transformational Futures Exhibition and the Foresight change?’ Ten themes have been Future of Cities research, Newcastle PKLU[PÄLK[VZ\WWVY[V\Y^VYR!HY[ZHUK University and Newcastle City Council culture in social renewal; citizenship; have established three key research digital innovation; enterprise in society; PTWHJ[MVY\TZ[VSPURÄUKPUNZ[V health and inequality; learning for change; policy choices and ensure continued the past in the present; people, place dialogue. The government’s Chief and community; social justice and :JPLU[PÄJ(K]PZLYJVTTPZZPVULK[OL injustice; and wellbeing and resilience. team to lead research focusing on trends facing the greater Newcastle City region entitled ‘Foresight Future of Cities’ x157029_NUI_Hi-Res.pdf 20 26/11/2015 13:14 21 Sustainability Highlights during the past year included: • Frontiers in Engineering Biology is • Customer-Led Network Revolution a £5.6m interdisciplinary research The Newcastle University Institute for (CLNR), which enables energy platform funded by the Engineering Sustainability provides leadership and customers to have more choice in and Physical Sciences Research innovation in sustainability research how they use and generate electricity Council. The aim is for a world where under the banner ‘Enough, for all, with the aim of speeding up adoption biological systems are used to create forever’. Activities bridge boundaries of low-carbon technologies. 11,000 more sustainable technologies to and are highly collaborative, working domestic and 2,000 small- to improve the environment, energy, with academia, industry, policymakers medium-sized enterprises were trialled. materials, and health. The project and communities nationally and 9LZLHYJOÄUKPUNZOH]LILLU^PKLS` bridges the gap between ideas and internationally. Work is underpinned published and policymakers briefed reality by undertaking research in real-world environments I`Ä]LHYLHZVMLZ[HISPZOLKYLZLHYJO • development of the Science Central excellence: site is progressing well. The site • the Iwokrama International Centre • Energy: leading research into energy went live in November 2014 with for Rainforest Conservation and infrastructure such as smart grids and the opening of The Core, providing Development is using rainforest storage JVU[LTWVYHY`VѝJLZWHJLMVYÄYTZ resources to generate economic • Earth Systems Engineering: working on future city challenges. ILULÄ[ZZ\Z[HPUHIS`;OLWYVQLJ[OHZ improving predictions of drought and The Core also hosts big data research integrated research in areas of climate, water, soil, biodiversity and cultural ÅVVKHUKILJVTPUNIL[[LYWYLWHYLK projects through the Cloud Innovation when they occur Centre heritage • Transport (road, rail and marine): • plans have been approved for the making vehicles greener and £57m Urban Sciences Building, implementing infrastructure to scheduled to open in 2017. This new support low-carbon transport centre will combine an energy storage • Water: improving waste treatment test bed, an urban observatory, and a and access to clean water, as well as ‘decision theatre’ designed to facilitate predicting future climate change public and stakeholder engagement • Food: how to ensure there is enough for all, cut waste and develop sustainable food manufacturing x157029_NUI_Hi-Res.pdf 21 26/11/2015 13:14 A SIGNIFICANT INTERNATIONAL, NATIONAL AND 22 REGIONAL PROFILE AND REPUTATION Priorities • Develop the public understanding of Newcastle as a world-class civic university • Position Newcastle as a recognised leader in the social, cultural and economic development of the North East of England • Attain national and international recognition for the University as a leading institution in respect of the three societal challenge themes +L]LSVW[OLW\ISPJWYVÄSLVM5L^JHZ[SL as a City of Science • Develop and maintain good relations with stakeholders, alumni and the wider public Measuring success Media mentions 2014-15 Main UK League Tables 2013 2014 2015 12,000 Newcastle Guardian University Guide 27 28 29 Comparator Group 10,000 Average Complete University Guide 27 20 26 8,000 Good University Guide 18 22 23 6,000 4,000 World University Ranking Tables 2013 2014 2015 Leiden Ranking 133 121 104 2,000 Quarterly media mentions Quarterly QS World University Rankings 129 127 162 0 Aug-Oct Nov-Jan Feb-Apr May-Jul Times Higher Education 198 202 196 x157029_NUI_Hi-Res.pdf 22 26/11/2015 13:14 OVERALL ASSESSMENT MEDIUM RISK 23 Research into muscular dystrophy, (JHKLTPJJVUMLYLUJLZHYLHULќLJ[P]L Risks O\THU[YHѝJRPUNHUK[OLLќLJ[ZVM ^H`[VYHPZL[OLWYVÄSLVM5L^JHZ[SL >LULLK[VKL]LSVWHZPNUPÄJHU[ climate change in Antarctica were among University’s research. In the year we PU[LYUH[PVUHSWYVÄSL the stories promoted across the globe launched an academic conference • We need to maintain the academic to increase awareness of Newcastle Z\WWVY[ZJOLTL[VWYV]PKLZWLJPÄJ University among academics, students HUKÄUHUJPHS]PHIPSP[`VMV\YV]LYZLHZ M\UKPUNHUKWYHJ[PJHSOLSW[VZ[Hќ campuses in Malaysia and Singapore and alumni. wanting to stage a conference at our campuses in Newcastle, Malaysia or >LULLK[VTHPU[HPULќLJ[P]L We attracted global media attention :PUNHWVYL0U[OLÄYZ[`LHY[OLZJOLTL relationships with key external when the UK government became has been able to support 11 academic stakeholders [OLÄYZ[PU[OL^VYSK[VJOHUNL[OL conferences which have attracted almost >LULLK[VLZ[HISPZOLќLJ[P]L law to allow an IVF technique, to 1,000 delegates to Newcastle. engagement with our alumni help prevent babies being born with mitochondrial disease, developed by Newcastle University’s impact in the Newcastle University academics to go YLNPVUPZZPNUPÄJHU[6\YLJVUVTPJ Progress during ahead. Professor Sugata Mitra’s work impact measured by our income and the the past year in developing his vision for ‘Schools JVU[YPI\[PVU[OH[V\YZ[\KLU[ZHUKZ[Hќ in the Cloud’ where children learn make to the North East now exceeds We want our research and teaching independently using the internet has IU:PNUPÄJHU[PU]LZ[TLU[ZPU[OL [VTHRLHKPќLYLUJL[VWLVWSL»ZSP]LZ also made headlines across the world. National Centre for Ageing Science and locally, nationally and internationally; Professor Mitra’s TED prize-winning Innovation and the Neptune National this is what we mean by a ‘civic’ research has resulted in seven physical *LU[YLMVY6ќZOVYLHUK:\IZLH university and is captured in our strapline learning labs being built in India and Engineering position us well to play Excellence with a Purpose. the UK. We launched SOLE Central an important role in the government’s as a global hub for research into Northern Powerhouse agenda. In the year we were able to show self-organised learning environments, the impact of our research through a bringing together researchers, multimedia campaign that featured case practitioners, policymakers and studies of our strongest disciplines as entrepreneurs. measured by the REF. x157029_NUI_Hi-Res.pdf 23 26/11/2015 13:14 ;OLVWLUPUNVM[OLÄYZ[I\PSKPUNVU Science Central (The Core) and progress on the University’s £57m Urban Sciences Building is turning our vision to be recognised as a City of Science into a reality. The development has attracted ZPNUPÄJHU[Z\WWVY[MYVTNV]LYUTLU[HUK interest from commentators who see it as an exemplar of digitally enabled urban sustainability. The museums, galleries, public lectures and concerts that we run attracted almost one million visitors during the year. 24 These include the Great North Museum, which welcomed its three-millionth visitor in 2014 since opening in 2009. Our ambitious plans to refurbish the Hatton Gallery will also now be realised as we have secured £2.1m from the Heritage Lottery Fund. On 13 November 1967, Newcastle University awarded Dr Martin Luther King an Honorary degree of Civil Law – the only UK university to honour him during his lifetime. The BBC recognised this ZPNUPÄJHU[L]LU[K\YPUNI`ÄSTPUN an award-winning documentary that captured powerful recollections from the likes of singer and civil rights activist Harry Belafonte, US Senator Andrew Young, and former Supremes vocalist Mary Wilson. All spoke of their admiration for the University to confer such an honour on Dr King. The University is now planning a 50th Anniversary Celebration in 2017 to mark this important milestone in our history, which will include a mass participation open-air event, public art commissions, exhibitions in local museums and galleries, and a schools programme and legacy cloud learning package. x157029_NUI_Hi-Res.pdf 24 26/11/2015 13:14 FINANCIAL AND OVERALL ASSESSMENT ENVIRONMENTAL GOOD SUSTAINABILITY 25 • Improve our market share of income Priorities within the Russell Group • Create capacity for strategic • Provide enterprise resource planning development by achieving an services which are top quartile in average earnings before interest, higher education and which meet our tax, depreciation and amortisation legal and ethical obligations (EBITDA) margin of at least 6% of • Reduce environmental impacts and income, with a 4% minimum in any achieve energy savings through ÄUHUJPHS`LHY delivery of Environmental and Energy • Maintain a robust balance sheet with Management Systems Z\ѝJPLU[JHZOYLZLY]LZ[VTLL[V\Y • 0TWYV]L[OLLUNHNLTLU[VMZ[HќHUK ÄUHUJPHSVISPNH[PVUZ students with sustainability across the • Deliver value for money in all our academic and residential estates activities • Use the University’s cash reserves and, if necessary, borrowing capacity, to invest in academic and student experience to enhance research quality and reputation, teaching quality and student satisfaction x157029_NUI_Hi-Res.pdf 25 26/11/2015 13:14 26 Measuring success Earnings before interest, taxes, depreciation and Net cash balances (£m): amortisation, as a percentage of income target - £50m 10% 140 120 8% 100 6% 80 4% 60 40 2% (£m) balance net cash EBITDA as % of income EBITDA 20 0% 0 10-11 11-12 12-13 13-14 14-15 10-11 11-12 12-13 13-14 14-15 Functional suitability of the estate - C02 emissions: target - 52kg (scope 1 and 2) 2 recorded as class 1 or 2 in C02 per m gross internal area by 2020 Estates Management Statistics Newcastle Newcastle 92% Russell Group Median 115 Russell Group Median 90% ) 2 110 88% 86% 105 84% 100 82% 80% 95 emissions (kg per m (kg emissions 78% 2 90 CO % recorded as class 1 or 2 as class % recorded 76% 85 09-10 10-11 11-12 12-13 13-14 74% 10-11 11-12 12-13 13-14 14-15 x157029_NUI_Hi-Res.pdf 26 26/11/2015 13:14 27 Staff costs as a percentage of income: Infrastructure investment: target - 55% of income target - > 3% of insurance replacement value Newcastle 58% Russell Group Median 5% 56% 54% 4% 52% 3% 50% 48% 2% 46% 44% 1% staff costs as a % of income costs staff 42% 40% 10-11 11-12 12-13 13-14 14-15 0% 10-11 11-12 12-13 13-14 14-15 Percentage of waste recycled: target - 92% 98% 97% 96% 95% 94% 93% % waste recycled % waste 92% 91% 90% 10-11 11-12 12-13 13-14 14-15 x157029_NUI_Hi-Res.pdf 27 26/11/2015 13:14 Climate change is a business continuity Risks Progress during threat; the University has actively >LULLK[VTHPU[HPUÄUHUJPHS]PHIPSP[` the past year TP[PNH[LK[OPZYPZR[OYV\NOÅVVK HUKPUWHY[PJ\SHYHÄUHUJPHSS`YVI\Z[ prevention works on campus and future pensions provision Financial sustainability is discussed planning for Sustainable Urban Drainage in more detail in the Financial Review • We need to meet home and at Science Central. (pages 38 to 42). In summary, 2014–15 international student recruitment was another very good year with a Maintaining our exemplary performance targets total surplus of £45.8m compared to of recycling 96% of general waste, • We need to recruit, develop, retain and £30.3m in 2013–14. Net income grew collaborative procurement with 28 YL^HYKZ[HќVMHUHWWYVWYPH[LJHSPIYL by 8% from £438.5m to £475.2m with Northumbria and Sunderland Universities • We need to manage the University ZPNUPÄJHU[PUJYLHZLZPUMLLPUJVTLHZH in 2015 secured a new contract for in keeping with the ethos of result of the new funding arrangements. general waste and recycling. The environmental sustainability Total expenditure increased by 4% contract will drive further improvements • We need to maintain the estate as MYVT T[V TYLÅLJ[PUN in source segregated recycling through functionally suitable and have an [OLPU]LZ[TLU[PUZ[HќHUKMHJPSP[PLZ incentive schemes for halls of residence appropriate information strategy and to successfully deliver the increased and improved reporting. control of data volumes of students and research activity. >H[LYJVUZ\TW[PVUWLYZ[HќHUK • We must ensure proper conduct of student FTE has reduced by 28% business and be able to respond to At 31 July 2015 the University held gross since 2005–06 through investment in severe business disruption events cash and short-term deposits totalling ^H[LYLѝJPLU[[LJOUVSVNPLZ some £162.4m (2014: £167.9m), the Going concern LX\P]HSLU[VMÄ]LTVU[OZ»!Ä]L We were shortlisted in the Environmental recurrent total expenditure. These Association of Universities and Colleges *V\UJPSJVUÄYTZ[OH[P[OHZYLHZVUHISL balances will decline in future years Green Gown Awards 2014 (Carbon expectation that the University has HZ[OL it has reviewed the sustainability of saving circa 2,700 tonnes of CO2e to [OL x157029_NUI_Hi-Res.pdf 28 26/11/2015 13:14 29 x157029_NUI_Hi-Res.pdf 29 26/11/2015 13:14 CHARITY STATUS AND PUBLIC BENEFIT 30 STATEMENT FOR THE YEAR ENDED 31 JULY 2015 Newcastle University is an exempt charity under the terms of the Charities Act 2011. This section, pages 30–31, provides more detail on the University’s charitable activities. As the University’s Accountable Officer, I am responsible to HEFCE, as our designated regulator, for compliance with relevant charity law. In developing and overseeing the We have a range of schemes to University’s strategy and activities, encourage participation in our academic Council has had due regard to the programmes by students from Charity Commission’s guidance on the under-represented socioeconomic YLWVY[PUNVMW\ISPJILULÄ[0[HSZVPZH^HYL groups and those from low income that, because the University is charging households. high fees, it must make provision for those from lower income backgrounds 0U¶ ÄYZ[`LHY<2HUK [VOH]L[OLVWWVY[\UP[`[VILULÄ[MYVT EU undergraduates with low income the services provided. The principal or widening participation backgrounds, ILULÄJPHYPLZVM[OL x157029_NUI_Hi-Res.pdf 30 26/11/2015 13:14 Professor Chris Brink Vice-Chancellor 31 The 2014–15 UK and EU undergraduate >LYLJLP]LM\UKPUNMYVTH^PKLYHUNLVM ÄUHUJPHSZ\WWVY[VM TMVY ILULMHJ[VYZPUJS\KPUNTHU`VMV\YHS\TUP \UKLYNYHK\H[LZYLWYLZLU[ZHUPUJYLHZL HUK^LHYLNYH[LM\SMVY[OLPYZ\WWVY[ VM RJVTWHYLK[V¶>L OH]LJVTTP[[LKTVYL[OHU T ;OL x157029_NUI_Hi-Res.pdf 31 26/11/2015 13:14 OPERATIONAL REVIEW Dr John Hogan FOR THE YEAR ENDED 31 JULY 2015 Registrar 32 The Operational Review (pages 32–37) provides a report on the operational activity of the University during the past year. There are separate sections on: student numbers; staff; health, safety and wellbeing; our estate; and information technology. As the University’s Chief Operating Officer, I am responsible to the Vice-Chancellor for the leadership and management of its professional support services. Students Total registered students as at 1 December 2014 were 23,864, a 4.3% increase compared with 1 December 2013. Total students 2014 2013 Growth at 1 December Full time Part time Total Total % Undergraduate Home and EU 14,030 60 14,090 13,890 1% Overseas 2,302 9 2,311 2,017 15% Total 16,332 69 16,401 15,907 3% Postgraduate Home and EU 2,028 1,305 3,333 3,129 7% Overseas 2,793 146 2,939 2,861 3% Total 4,821 1,451 6,272 5,990 5% Taught overseas 1,174 17 1,191 977 22% Total 22,327 1,537 23,864 22,874 4.3% Since 2005, Home and EU students have increased by 17% from 14,904 to 17,423, and overseas students have more than doubled from 2,377 to 6,441 (+171%). Total headcount has increased by 38%. Undergraduate degrees awarded (Summer 2015) were: Award 2013–14 2014–15 Number % of total Number % of total First class 879 21% 884 20% :LJVUKJSHZZÄYZ[KP]PZPVU 2,145 51% 2,334 53% Second class, second division 656 15% 654 15% Third class 53 1% 54 1% Other 507 12% 487 11% Total 4,240 100% 4,413 100% Note: most of those in the ‘Other’ category are graduates in medicine and dentistry for whom [OLYLPZUVKLNYLLJSHZZPÄJH[PVU+H[HHZYLJVYKLKVU (\N\Z[HUK x157029_NUI_Hi-Res.pdf 32 26/11/2015 13:14 33 AN ARTIST’S IMPRESSION OF THE URBAN SCIENCES BUILDING, SCHEDULED TO OPEN IN 2017. x157029_NUI_Hi-Res.pdf 33 26/11/2015 13:14 34 The Newcastle University Medicine We continue to make progress in Professor Vicki Bruce was announced Malaysia (NUMed) campus (opened PTWYV]PUN[OLWYVWVY[PVUVMZ[Hќ^P[O as Dame Commander of the British November 2011) delivers undergraduate MVYTHS[LHJOPUNX\HSPÄJH[PVUZHZ Empire, for services to Higher Education Medicine (MB BS), a BSc in Biomedical W\ISPZOLKI`/,-*,¶ÄN\YLZ and Psychology in the Queen’s Birthday Sciences and a selection of Masters’ show an increase to 39% of academic Honours List. degrees. In 2014–15, 475 undergraduate Z[HќJVTWHYLK[V[OLZLJ[VYH]LYHNL students were enrolled at NUMed. of 38%). Kathryn Tickell, Guest Lecturer in the School of Arts and Cultures, was In collaboration with the Singapore As a University, diversity is a fundamental awarded an OBE for services to folk Institute of Technology, the University value; commitment to this is outlined in music. VќLYZWYVNYHTTLZPUTHYPUL the Equality Strategy. engineering, naval architecture, Professor Chris Day, Pro-Vice-Chancellor VќZOVYLLUNPULLYPUNTLJOHUPJHS Progress is being made towards the for the Faculty of Medical Sciences, design and manufacturing engineering, aim of 30% female professors by 2021, has been commissioned as Deputy chemical engineering, electrical with the professorial population reaching Lieutenant for the county of Tyne and power engineering, and food and 24.4% female during 2014–15. The Wear. human nutrition. In 2014–15 the University aims to submit an Athena total number of students was 716. SWAN silver application in 2015 in Professor Louise Robinson, Director, recognition of our commitment to Newcastle University Institute for advancing women’s careers in science, Ageing and Professor of Primary Care Staff technology, engineering, maths and and Ageing has been awarded the William Farr Medal 2015. This year we have continued our medicine. Academic units have been working towards departmental awards, focus on investment in high-quality Professor Phil Blythe, Professor of [HSLU[6]LYHSSM\SS[PTLLX\P]HSLU[Z[Hќ progressing from two silver and one bronze award to four silver and eight Intelligent Transport Systems, was increased by 2.6% from 5,081 at 31 July appointed as the Department of 2014 to 5,213 at 31 July 2015. These bronze awards. We are awaiting ;YHUZWVY[»Z*OPLM:JPLU[PÄJ(K]PZLY numbers include 115 full-time equivalent the outcome of seven departmental award applications, and are working Z[HќLTWSV`LKI`V\YV]LYZLHZ Professor Dave Jones was appointed the towards submitting the remaining two subsidiaries (2014: 98). National Institute for Health Research’s departmental applications. Dean for Faculty Trainees supporting the Further investment is planned for next generation of health researchers. 2015–16, when implementation will The University has reached its target take place of a revised positioning of our VM VMLTWSV`LLZ^OVKPZJSVZLH The University’s work on the reader and professor grades to raise KPZHIPSP[` HUKPZ^VYRPUN^P[OZ[Hќ development of leadership talent with disabilities to ensure appropriate quality, improve career development was recognised again this year in the support is provided for them in the opportunities and enhance market Times Higher Education Leadership workplace. Small increases in support competitiveness. and Management Awards, winning Z[Hќ)4,WVW\SH[PVUOH]LHSZVILLU outstanding Leadership and made. :[HќJVZ[ZPU¶ ^LYLT Management Team for the second compared to £228.2m in 2013–14. The time in three years. major impact on pay growth over the The Vice-Chancellor’s Academic year was the national 2% pay award Distinction Award recipients for 2015 LќLJ[P]LMYVT(\N\Z[6[OLY were Professor Linda Anderson, factors included incremental progression, Professor of Modern English and contribution-related payments and American Literature; Professor Phil Taylor, bonuses. We also continued our work on Director of the Newcastle University fair pay, agreeing a local deal with Unison Institute for Sustainability; and Professor [OH[^PSSZLLWH`YH[LZMVYV]LYZ[Hќ Harry Gilbert, Professor of Agricultural on our lowest pay points increase from Biochemistry in the Institute for Cell and August 2015. Molecular Biosciences. x157029_NUI_Hi-Res.pdf 34 26/11/2015 13:14 35 Health, safety and Total accident rates for staff and students wellbeing 45 40 Sickness absence rates for the University 35 as a whole at 2.2% have risen slightly from 2013–14 (2.0%), but are still below 30 Staff the higher education sector average 25 Students VM ;OLYH[L]HYPLZHJYVZZZ[Hќ 20 NYV\WZ^P[OVWLYH[PVUHSZ[HќILPUNVM 15 most concern at a rate of 6.0% (up from 10 4.9% in 2013–14). A revised sickness absence procedure will be implemented 5 accident rate per 1,000 at risk rate accident 0 during 2015–16. The University 10-11 11-12 12-13 13-14 14-15 JVU[PU\LZP[ZWYVHJ[P]LHWWYVHJO[VZ[Hќ wellbeing, promoting healthier lifestyles through a range of health and wellbeing Academic Year campaigns. This work gained external recognition through the achievement of the ’Continuing Excellence’ Better Health ;OLSL]LSVMZ[HќHUKZ[\KLU[HJJPKLU[YH[LZYLWVY[LK\UKLY9LWVY[PUNVM at Work Award for the University in 2015. Injuries, Diseases and Dangerous Occurrences Regulations 2013 (RIDDOR) shows a similar downward trend over this period albeit that there is a slightly The accident rate (ie the number of TVYLZPNUPÄJHU[PUJYLHZLPU¶ ;OLHJ[\HSU\TLYPJHSKPќLYLUJLPZ ^VYRWSHJLHJJPKLU[ZWLYZ[HќVY ZTHSS^P[OVUS`MV\YTVYLZ[HќHUK[OYLLTVYLZ[\KLU[HJJPKLU[Z students at risk) allows the University to compare its accident performance over time, taking into account the changing RIDDOR accident rates for staff and students U\TILYVMZ[HќHUKZ[\KLU[ZHZZVJPH[LK with the Growth Agenda. There has been 5 a fairly sustained downward trend in the [V[HSHJJPKLU[YH[LZMVYZ[HќHUKZ[\KLU[Z 4 V]LY[OLSHZ[Ä]L`LHYZ;OLYL^HZHZSPNO[ PUJYLHZLPU[OLZ[HќYH[LMVY¶ 3 Staff This will be monitored closely to identify Students any trends. 2 1 accident rate per 1,000 at risk rate accident 0 10-11 11-12 12-13 13-14 14-15 Academic Year The new online Incident Reporting and Follow-up system was launched on target in May 2015 and user feedback has been positive. Representatives from across the faculties and services contributed to the development of the system and this more robust process should help to sustain the improved accident rates in the longer term. x157029_NUI_Hi-Res.pdf 35 26/11/2015 13:14 Our strategy continues to improve The operational estate area is currently Estate the quality and functional suitability of 211,344m2 (net internal area), an Our estate strategic objectives are to V\YÅVVYZWHJL[OYV\NOPU]LZ[PUNPU increase of 2,948m2. We surrendered facilitate academic priorities and: maintenance, new build, refurbishment, leases at City Gate and commenced YH[PVUHSPZPUN[OL\ZLVMÅVVYZWHJLHUK redevelopment of the Line East Building • improve the condition and functional ^P[OKYH^PUNVYÄUKPUNHS[LYUH[P]L\ZLZ HUK\WWLYÅVVYZVM[OL*YV^»Z5LZ[ suitability of our buildings MVYZWHJL[OH[PZUVSVUNLYÄ[MVYW\YWVZL Hotel (releasing a total of 3,400m2). • implement the Coherent Campus We have also increased lettings to third We completed the acquisition of initiative parties. The table below shows our 89 Sandyford Road to increase the progress to date: library provision at the University, • LUZ\YLLќLJ[P]L\[PSPZH[PVUVMZWHJL acquired Black Horse House for future • deliver full life cycle value for money expansion and opened the new Blyth on all major projects Marine Station. Despite the net increase 36 PUVWLYH[PVUHSÅVVYHYLHZWHJLWLY Z[\KLU[HUKZ[Hќ-;,OHZYLK\JLK Peer Energy consumption per m2 (kWh) has Group Target reduced by 5% and energy costs per m2 Measure 2010–11 2013–14 2013–14 2014–15 2015–16 by 6.6% compared to 2012–13. Floor space in condition 89% 88% 87%* 89% 89% This year we completed the conversion category A and B of Kensington and Park Terraces into Floor space in functional 80% 91% 92%* 91% 92% student residences, provided a new suitability grade 1 and 2 boiler house for Castle Leazes Halls of Residence, completed the refurbishment Net internal area per 11.4 12.5 12.5* 12.6 12.6 of the Law Lecture Theatre and installed 2) Z[\KLU[HUKZ[Hќ-;,T an external lift to increase accessibility to Merz Court. Phase four of the *Top quartile in our peer group. major refurbishment of the Armstrong Building is due to complete in October 2015 along with the refurbishment and extension of the Henry Wellcome Building including provision of a social mixing space. We continue to improve the quality of our teaching rooms and have invested £1.9m to improve the student teaching and learning facilities including the upgrading of teaching rooms and lecture theatres, refurbishing teaching labs, computer rooms and student-facing areas. This has increased the functional suitability (grade 1 and 2) to 96% (95% target) and has improved the frequency of use to 58% (60% target). The principal investment in the sixth year of the Coherent Campus initiative involved improvements to King’s Road landscaping incorporating a better environment for pedestrians, sustainable KYHPUHNL[YLLWSHU[PUNHUK[YHѝJJHSTPUN Major projects in progress include the new Urban Sciences Building, The Key (fabric structure), and the development of a Conference and Learning Centre, all on the Science Central site. Our paediatric oncology activity is to be relocated THE CONVERSION OF to new and expanded facilities in the KENSINGTON AND PARK Herschel Building and 89 Sandyford TERRACES INTO STUDENT Road is being refurbished. ACCOMMODATION 6ќJHTW\Z^LHYLPU]LZ[PUNPUUL^ WAS COMPLETED IN Z\IZLHHUKVќZOVYLLUNPULLYPUN research and development facilities. SEPTEMBER 2014. These include the Neptune National *LU[YLMVY:\IZLHHUK6ќZOVYL Engineering (on the North Banks of the Tyne); the Neptune Hyperbaric Test x157029_NUI_Hi-Res.pdf 36 26/11/2015 13:14 *LU[YLPUWHY[ULYZOPW^P[O),3=HS]LZH[ =PKLVJVUMLYLUJPUN[LJOUVSVNPLZHSZV :`Z[LTZHUKWYVJLZZLZ[VZ\WWVY[[OL [OLMVYTLY:WPSSLYZ@HYKH[>HSRLY"HUK HZZPZ[PU[OLYLK\J[PVUVMV\YJHYIVU 9,-Z\ITPZZPVU^LYLJVTTLUKLKI` KL]LSVWTLU[H[7VY[VM)S`[O^OPJO^PSS MVV[WYPU[([HY\UYH[LVM WLYHUU\T /,-*,MVY[OLPYLќLJ[P]LULZZ>VYR PUJS\KL[OLYLSVJH[PVUVM[OL*H]P[H[PVU H PUJYLHZLVU¶[OLZLY]PJL JVU[PU\LZVU[OLYLZLHYJOJVTW\[PUN ;\UULS[VW\YWVZLI\PS[WYLTPZLZ OHZZH]LKQV\YUL`ZHUKTHU` YLX\PYLK[V\UKLYWPU[OLTVYLKH[H TPSLZVM[YH]LSHUKZ[Hќ[PTL PU[LUZP]LZJPLUJLILPUN\UKLY[HRLU ;OLYLPZJVU[PU\LKZPNUPÄJHU[PU]LZ[TLU[ HJYVZZ[OL technology 7*JS\Z[LYSVNPUZL_JLLKLK ;OL ;OLV]LYHSSH]HPSHIPSP[`VMV\YUL[^VYRHUK ZLY]PJLZYLTHPULKOPNOH[ KLZWP[L MV\YTHQVYUL[^VYRV\[HNLZHќLJ[PUN ZVTLI\PSKPUNZ ;OL >LOH]LZLJ\YLK[OLSVUN[LYTWYV]PZPVU VMHUVќZP[LKH[HJLU[YL^OPJOHSSV^Z MVY[OLTVZ[LќLJ[P]L\ZLVMJSV\K JVTW\[PUNYLK\JLZYPZRVMKH[HSVZZ HUKLUHISLZM\Y[OLYZLY]LYJVUZVSPKH[PVU Z\WWVY[PUN[OL x157029_NUI_Hi-Res.pdf 37 26/11/2015 13:14 FINANCIAL REVIEW Richard Dale Executive Director FOR THE YEAR ENDED 31 JULY 2015 of Finance 38 The Financial Review (pages 38–42) analyses the University’s financial performance during the past year and the future outlook. As the University’s Chief Financial Officer, I am responsible to the Vice-Chancellor for delivery of the University’s financial strategy and the preparation of these financial statements. scheme for universities and related Introduction PUZ[P[\[PVUZ^P[OLќLJ[MYVT1\S` In common with most research- The total expected credit of £13.9m (net intensive universities, Newcastle VM[H_PZ[OLYLMVYLHVULVќILULÄ[^OPJO University surplus (£m) RDEC credit shown in blue 50 45 40 35 30 25 20 15 10 5 0 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 x157029_NUI_Hi-Res.pdf 38 26/11/2015 13:14 Underlying income (excluding the YLÅLJ[PUNHZPNUPÄJHU[PUJYLHZLPU RDEC credit and adjusting for a change capital expenditure as we start the next in accounting treatment for some phase of development of our estate JH[LNVYPLZVMZ[\KLU[ÄUHUJPHSZ\WWVY[ and continue to invest in research and IT grew by 6% and underlying expenditure infrastructure. grew by 6%. Net cash balances reduced by £2.2m from £129.7m to £127.5m, Net cash balance (£m) 140 120 39 100 80 60 as at 31 July 40 20 0 10-11 11-12 12-13 13-14 14-15 The University’s key strategic measure Pipeline indicators suggest this VMÄUHUJPHSWLYMVYTHUJLPZLHYUPUNZ performance will be maintained during before interest, tax, depreciation and 2015–16 and we are reasonably amortisation (EBITDA). Excluding the optimistic for future years, despite the RDEC credit, EBITDA of £42.3 in Z[YVUNSPRLSPOVVKVMZPNUPÄJHU[J\[ZPU 2014–15 was 9.2% of income public expenditure in the next few years. (2013–14 8.5%) with an average in The structural changes agreed to the [OLWHZ[Ä]L`LHYZVM VMPUJVTL Universities Superannuation Scheme compared to our strategic target <::OH]LYLK\JLK[OL]LY`ZPNUPÄJHU[ of 6.0%. risks which we faced with this scheme. Income Net income grew by 8% from £438.5m to £475.2m. Underlying income (excluding the RDEC credit and adjusting for a change in accounting treatment MVYZVTLJH[LNVYPLZVMZ[\KLU[ÄUHUJPHS support) grew by 6%. Over the past four years, underlying income has grown by 5% per annum. Key income streams are summarised here. Funding Councils 15% Academic fees 43% Research income 22% RDEC credit 4% NEWCASTLE UNIVERSITY Residences, catering 5% LONDON CAMPUS OPENED and conferences IN SEPTEMBER 2015. Health authorities 3% Endowment income 1% and interest Other income 7% x157029_NUI_Hi-Res.pdf 39 26/11/2015 13:14 40 Funding Council grants reduced by Funding Council income as % of net income T `LHYVU`LHYYLÅLJ[PUN the new funding regime for UK and 35% EU undergraduate students. The 30% reduction was £0.7m more than we had anticipated due to in-year funding cuts 25% announced by HEFCE in July 2015 as a result of reductions in public expenditure 20% announced by the Chancellor of the 15% Exchequer following the general election. Funding Council grants, as a percentage 10% of underlying income declined year on 5% year from 18.7% to 15.4% and are forecast to reduce to 15.1% in 2015–16. 0% 10-11 11-12 12-13 13-14 14-15 15-16 16-17 Academic fees from full-time home and EU students increased by 18% MYVT T[V TYLÅLJ[PUN [OLZPNUPÄJHU[S`OPNOLYUL^Z[\KLU[ Our joint venture with INTO University intakes in 2013 and 2014 and the Partnerships Ltd continued to make Expenditure continuing impact of the new £9,000 pa good progress despite the uncertainties Total expenditure increased by 4% from \UKLYNYHK\H[L[\P[PVUMLLWHY[S`VќZL[ presented by the government’s approach £411.8m to £428.4m. Adjusting for by a change in accounting treatment to visa issues. Income grew by 10% and the impact of the change in accounting MVYZVTLLSLTLU[ZVMZ[\KLU[ÄUHUJPHS net surplus grew by 30%, although this treatment for some types of student Z\WWVY[ T^P[OHUVќZL[[PUNPTWHJ[ ^HZIVVZ[LKI`HU\TILYVMVULVќ ÄUHUJPHSZ\WWVY[[OL\UKLYS`PUNPUJYLHZL on other operating costs). Income for credits. Our new campus in London will in expenditure was 5%. Over the past full-time overseas students taught in HKTP[P[ZÄYZ[Z[\KLU[ZPU ¶ I\[ four years, underlying expenditure the UK increased by 6% from £63.9m there were start-up costs in 2014–15, has grown by 4% per annum. Key [V TYLÅLJ[PUNHU PUJYLHZLPU V\YZOHYLVM^OPJOHYLYLÅLJ[LKPU expenditure streams are summarised student numbers and price increases [OLZOHYLVMVWLYH[PUNWYVÄ[ZVM below. WHY[S`VќZL[I`[OLJOHUNLPUHJJV\U[PUN joint ventures. treatment for some elements of student ÄUHUJPHSZ\WWVY[T-LLPUJVTLH[ Income from residences, catering our overseas campuses increased from and conferences grew by 4% due £12.2m to £14.8m due to continued to the opening of new facilities in growth of our MB BS programme in Kensington and Park Terraces Malaysia and the impact of the second HUKWYPJLPUJYLHZLZVќZL[I` cohort of power engineering students in the closure of Henderson New Singapore. Hall. Several areas included in ‘other income’ saw growth, ,_JS\KPUN[OLPTWHJ[VMVULVќ9LZLHYJO notably in donations to the and Development Expenditure Credits, University. Interest receivable research income increased by 3% from reduced from £5.1m to £4.2m, £102.0m in 2013–14 to £105.0m in primarily due to a reduction in 2014–15. Research Council income Academic schools 39% Residences, catering 5% [OLWLUZPVUÄUHUJLJYLKP[ and conferences increased from £30.9m to £32.3m, UK required by FRS17. Academic services 7% government and health authority income Research grants and 20% increased from £20.1m to £21.3m and Administrative and 13% contracts central services research income from EU government Other 4% sources increased from £12.2m to Premises 12% £13.0m. x157029_NUI_Hi-Res.pdf 40 26/11/2015 13:14 :[HќJVZ[ZPUJYLHZLKI` MYVT YLK\JL[OL]LY`ZPNUPÄJHU[YPZRZ^OPJO^L ;OLPUJYLHZLPUL_WLUKP[\YLYLÅLJ[Z T[VTHUKYLWYLZLU[LK MHJLK^P[O[OPZZJOLTL(Z[OL<::PZH HZPNUPÄJHU[PUJYLHZLPUPU]LZ[TLU[ VM\UKLYS`PUNUL[PUJVTL¶ T\S[PLTWSV`LYZJOLTL^P[OUVIHZPZ[V PU0;HUKYLZLHYJOPUMYHZ[Y\J[\YL^P[O ;OPZPZZSPNO[S`SV^LY[OHU[OL HJJ\YH[LS`PKLU[PM`5L^JHZ[SL x157029_NUI_Hi-Res.pdf 41 26/11/2015 13:14 42 At 31 July 2015, the University had Treasury £62.0m of endowments (2014: £57.6m). Outlook At 31 July 2015, the University had Endowments are primarily invested in >LL_WLJ[JVU[PU\PUNZ[YVUNÄUHUJPHS £148.8m short-term cash investments equities. The University uses Majedie, performance in 2015–16 in line with (2014: £153.1m). The level of deposits )HPSSPL.PќVYKHUK)SHJR9VJR[VTHUHNL strong recruitment trends, particularly for Å\J[\H[LZ[OYV\NOV\[[OL`LHY^P[O its investments. Finance Committee home students. materially higher cash balances between meets formally with our two active September and December and between THUHNLYZ4HQLKPLHUK)HPSSPL.PќVYK Looking further ahead, the longer May and July due to the timing of tuition once a year, and the Executive Director term picture is one of considerable fees and HEFCE grants. This volatility of Finance meets quarterly with them to uncertainty. We are concerned about the has increased as we have become review progress. In addition, we receive impact of future reductions in HEFCE more dependent on receipts from the monthly performance reports from all and Research Council funding, the Student Loans Company. Although our managers. The University’s ethical uncertainties presented by the planned this does not create short-term liquidity investment policy provides a mechanism EU referendum and the very negative issues for the University, it does restrict ^OLYLI`Z[\KLU[ZVYZ[HќJHUJOHSSLUNL messages being presented by some V\YÅL_PIPSP[`VUVW[PTPZPUNPU]LZ[TLU[ how the University invests its funds. As parts of the government on recruitment returns. Our investments are controlled a result of a challenge under this policy, of non-EU students. It is clear that, if we by our counterparty policy, which is a task group has been set up to review HYL[VTHPU[HPUHJHKLTPJZ[Hќ¶Z[\KLU[ agreed by Finance Committee with the University’s investment in fossil ratios (which we believe critical to student advice from brokers. We only place fuel companies in the context of the experience and research excellence), we our money with UK banks and building University’s institutional carbon strategy will need to take action to improve our societies which we consider to be secure as a whole. support processes and gain better value based on external benchmarks. We for money from our procurement activity. regularly review our investments and A programme of work has started to take rapid action if we believe there is address this imperative. any deterioration in risk. Our policy is set in full recognition that we may reduce Despite the challenges, we believe the potential interest income to mitigate the next few years also present us with JVU[PU\LKWV[LU[PHSYPZRPU[OLÄUHUJPHS ZPNUPÄJHU[VWWVY[\UP[`HUK[OL x157029_NUI_Hi-Res.pdf 42 26/11/2015 13:14 CORPORATE GOVERNANCE Mark I’Anson Chair of Council and Pro-Chancellor The Corporate Governance Statement (pages 43–47) provides an overview of the governance of the University, processes for ensuring the student voice 43 is heard and for management of risk, Council’s responsibilities and the arrangements to ensure sound internal controls are in place. As Chair of Council, I take a lead role in ensuring good governance is exercised by the University. Newcastle University endeavours to Council undertakes annual reviews of conduct its business in accordance Senate P[ZLќLJ[P]LULZZ+\YPUN ^LHYL ^P[O[OLZL]LUWYPUJPWSLZPKLU[PÄLKI` Senate is the academic authority of the reviewing our governance systems in the Committee on Standards in Public University and draws its membership light of The Higher Education Code of 3PMLZLSÅLZZULZZPU[LNYP[`VIQLJ[P]P[` WYLKVTPUHU[S`MYVT[OLHJHKLTPJZ[Hќ Governance published by the Committee accountability, openness, honesty and and the students of the institution. Its role of University Chairs in December 2014. leadership), and with the guidance is to direct and regulate the teaching and The review is not yet complete but to universities from the Committee of research work of the University. the Working Group has undertaken a University Chairs. full analysis of the University’s current governance arrangements and practices The University is an independent Court against the new code. The University corporation whose legal status derives Court is not part of the University’s complies with all seven primary elements from the Universities of Durham day-to-day decision-making processes in the code and the compulsory and Newcastle upon Tyne Act 1963 I\[WSH`ZHUPTWVY[HU[HUKPUÅ\LU[PHSYVSL elements. Further work is required to which, with its supporting statutes and on behalf of the University’s stakeholders. improve Council’s awareness of the schedules, sets out the University’s Its membership is representative of the University’s approach to fundraising objectives, powers and framework of University, the local community and other and to improve the diversity of Council governance. organisations with an interest in the work membership. These issues will be of the University. It meets twice a year to addressed in the next few months. The statutes require the University to receive a report from the Vice-Chancellor have a number of separate bodies, and to discuss any matters relevant Council has a majority of members from LHJO^P[OJSLHYS`KLÄULKM\UJ[PVUZHUK to the interests and wellbeing of the outside the University (lay members) responsibilities, to oversee and manage University. PUJS\KPUN[OYLLSH`VѝJLYZ"*OHPY its activities. Convocation is a meeting of Vice-Chair and Treasurer. Members also the alumni and is the body that appoints PUJS\KLZ[HќVM[OL x157029_NUI_Hi-Res.pdf 43 26/11/2015 13:14 Members of Council during 2014–15 were: Finance Executive Board Mr Mark I’Anson (Chair) 1 Committee Executive Board is the senior Professor Chris Brink 2 management team of the University Finance Committee considers and Dr John Appleby 2 and is formally designated as a joint Ms Claire Boothman 3 YLJVTTLUKZ[V*V\UJPS[OLÄUHUJPHS committee of Council and Senate. It strategy for the University and advises Mr Neil Braithwaite 1 keeps under review the University’s on investments, determines the level of Mr Mike Davison 1 strategy and makes recommendations funding to be made available to support Mr Jonathan Glass 1 on the development of the strategy to the annual budget allocations, approves Professor Deborah Henderson 2 Senate and Council. It develops and the accounting policies and considers Ms Jacqui Henderson (Vice-Chair) 1 regularly reviews the University’s business Mr Robert Hull 1 [OLÄUHUJPHSZ[H[LTLU[Z0[HSZVOHZ plan, assesses the risks related to the overall responsibility for ensuring the Professor Tom Joyce 2 delivery of the plan, and ensures that appropriate management of taxation Mr Stephen Lightley (Treasurer) 1 appropriate measures are in place to 44 within the University. Members during Professor Neill Marshall 2 HZZ\YL[OLÄUHUJPHSZ\Z[HPUHIPSP[`VM[OL 2014–15 were: 4Y1Lќ4J0U[VZO1 University’s activities. Executive Board Mrs Heidi Mottram 1 Mr Stephen Lightley (Chair) reports on these matters regularly Mr David Morris 3 Mr Neil Braithwaite to Council. Through the monitoring Dr Ole Pederson 2 Professor Chris Brink undertaken by its Financial Monitoring Mr Simon Pleydell 1 Mr Mark I’Anson and Budget Scrutiny Group and Budget Professor Tony Stevenson 2 4Y1Lќ4J0U[VZO Setting Group, Executive Board is also Mr Paul Walker 1 Professor Tony Stevenson responsible for the use of resources and Ms Vicky Wright 1 ÄUHUJPHSWLYMVYTHUJLVMHSSI\KNL[HY` units. It has particular responsibility for 1 Lay member Nominations 2 Employee of the University value for money. 3 Student representative Committee The principal academic and Much of the detailed work is routed Nominations Committee makes HKTPUPZ[YH[P]LVѝJLYVM[OL x157029_NUI_Hi-Res.pdf 44 26/11/2015 13:14 Professor Chris Day • to ensure procedures are in place for (Pro-Vice-Chancellor – Medical Council: Statement handling internal grievances, whistle- Sciences) of Primary ISV^PUNHUKMVYTHUHNPUNJVUÅPJ[ZVM Professor Steve Homans interest (Pro-Vice-Chancellor – Science, Responsibilities Agriculture and Engineering) Council is the supreme governing body Finance Professor Neill Marshall of the University, subject to the provisions • [VIL[OLWYPUJPWHSÄUHUJPHSHUK (Acting Pro-Vice-Chancellor – of the University’s statutes. The primary business authority of the University, to Humanities and Social Sciences) responsibilities of Council are as follows: ensure that proper books of account Professor Nicholas Wright are kept, to approve the annual budget (Pro-Vice-Chancellor – Research General HUKÄUHUJPHSZ[H[LTLU[ZHUK[VOH]L and Innovation) • to be responsible for ensuring the overall responsibility for the University’s Dr John Hogan (Registrar) LќLJ[P]LTHUHNLTLU[VM[OL x157029_NUI_Hi-Res.pdf 45 26/11/2015 13:14 46 • to be the employing authority for all • applicable accounting standards have Z[HќPU[OL x157029_NUI_Hi-Res.pdf 46 26/11/2015 13:14 47 • an ongoing process designed to Statement on identify the principal risks (whether Public disclosure Internal Control business, operational, compliance Council membership, agenda, VYÄUHUJPHS[V[OLHJOPL]LTLU[VM unreserved papers and minutes are all Council has responsibility for maintaining policies, aims and objectives, to made publicly available on the University a sound system of internal control that evaluate the nature and extent of website. supports the achievement of policies, those risks and to manage them aims and objectives, while safeguarding LѝJPLU[S`LќLJ[P]LS`HUKLJVUVTPJHSS` the public and other funds and assets The reporting method uses a system for which it is responsible. This is in whereby risks are ranked in terms of accordance with the responsibilities likelihood and impact and are reviewed assigned to the governing body and reported to Council to assure it in the Universities of Durham and that procedures are in place for the Newcastle upon Tyne Act 1963 and the PKLU[PÄLKYPZRZ[VILTHUHNLK Memorandum of Financial Assurance and Accountability with HEFCE. It Council is of the view that the University’s is designed to manage rather than process for identifying, evaluating eliminate the risk of failure to achieve HUKTHUHNPUNP[ZZPNUPÄJHU[YPZRZPZ policies, aims and objectives. It can, embedded into ongoing operations and therefore, only provide reasonable and has been in place for the year ended not absolute assurance against material 31 July 2015 and up to the date of the misstatement or loss. HWWYV]HSVM[OLÄUHUJPHSZ[H[LTLU[Z The key elements of the University’s The system of internal control is regularly system of internal control, which is reviewed by Council and accords with designed to discharge the responsibilities the internal control guidance for directors set out above, include the following: in the Combined Code as deemed • JSLHYKLÄUP[PVUZVMHUK[OLH\[OVYP[` appropriate for higher education. It is delegated to, heads of academic units informed also by a professional Internal and heads of administrative services Audit team, which complies with the professional standards of the Chartered • a comprehensive medium- and short- Institute of Internal Auditors. Senior term planning process, supplemented management and Audit Committee have by detailed annual income, also reviewed the performance of Internal L_WLUKP[\YLJHWP[HSHUKJHZOÅV^ (\KP[HUKHYLZH[PZÄLK^P[OP[ budgets • JSLHYS`KLÄULKHUKMVYTHSPZLK The Internal Audit strategy and plan requirements for approval and control is approved by the Audit Committee of expenditure and endorsed by Council. The senior • comprehensive Financial Regulations, management team and Audit Committee KL[HPSPUNÄUHUJPHSJVU[YVSZHUK receive regular internal audit reports, procedures, approved by Council and which include recommendations for Finance Committee improvement. Internal Audit provides an annual report to Council, which • key performance and risk indicators, includes an opinion on the adequacy which are monitored by the senior HUKLќLJ[P]LULZZVM[OL x157029_NUI_Hi-Res.pdf 47 26/11/2015 13:14 INDEPENDENT AUDITOR’S REPORT TO THE COUNCIL OF NEWCASTLE UNIVERSITY 48 >LOH]LH\KP[LK[OLÄUHUJPHSZ[H[LTLU[Z statements are free from material • have been properly prepared in of Newcastle University for the year misstatement, whether caused by fraud accordance with the Statement of ended 31 July 2015 which comprise or error. Recommended Practice: Accounting the Statement of Principal Accounting for Further and Higher Education Policies, Consolidated Income and This includes an assessment of: Expenditure Account, the Statement of whether the accounting policies are Opinion on other matters Consolidated Total Recognised Gains appropriate to the Group’s and the prescribed by applicable and Losses, Consolidated and University University’s circumstances and have regulations Balance Sheets, Consolidated Cash been consistently applied and adequately In our opinion: Flow Statement and the Reconciliation disclosed; the reasonableness of of Net Cash Flow to Movement in Net ZPNUPÄJHU[HJJV\U[PUNLZ[PTH[LZTHKLI` • M\UKZMVYZWLJPÄJW\YWVZLZHUKMYVT Funds and the related notes 1 to 33. the Council; and the overall presentation other restricted funds administered ;OLÄUHUJPHSYLWVY[PUNMYHTL^VYR[OH[ VM[OLÄUHUJPHSZ[H[LTLU[Z by the University have, in all material has been applied in their preparation respects, been applied only for is applicable law and United Kingdom We are also required to report to you the purposes for which they were Accounting Standards (United Kingdom whether, in our opinion, funds, from received; and whatever source, administered by the Generally Accepted Accounting Practice). • income has, in all material respects, x157029_NUI_Hi-Res.pdf 48 26/11/2015 13:14 STATEMENT OF PRINCIPAL ACCOUNTING POLICIES 49 In accordance with FRS18 these ;OLJVUZVSPKH[LKÄUHUJPHSZ[H[LTLU[Z ,UKV^TLU[M\UKZHYLJSHZZPÄLKHZ accounting policies have been reviewed do not include the results of Newcastle either expendable, where the capital by Council and are considered University Students’ Union as it is a element can be converted into income, appropriate to the University’s activities. separate company limited by guarantee or permanent, where the capital element PU^OPJO[OL x157029_NUI_Hi-Res.pdf 49 26/11/2015 13:14 6. Foreign currency 8. Accounting for goodwill b. Equipment Equipment costing less than £25,000 per translation DQGLQWDQJLEOHð[HGDVVHWV individual item or group of related items University Goodwill arises on consolidation and is HUKHSSZVM[^HYLJVZ[ZHYL^YP[[LUVќ[V Transactions denominated in foreign IHZLKVU[OLKPќLYLUJLIL[^LLU[OLMHPY the income and expenditure account currencies are recorded at the rate value of the consideration given for the in the year of acquisition. All other of exchange ruling at the dates of undertaking acquired and the fair value equipment is capitalised. the transactions. Monetary assets of its separable net assets at the date of and liabilities denominated in foreign acquisition. Goodwill is amortised over its Capitalised equipment is stated at cost currencies are translated into sterling at estimated economic life. Where goodwill and depreciated over its expected useful year-end rates or, where there are related and intangible assets are regarded as life, as follows: forward foreign exchange contracts, at having limited useful economic lives, they Research vessel JVU[YHJ[YH[LZ(SSL_JOHUNLKPќLYLUJLZ are amortised over those lives up to a – 25 years are taken to the income and expenditure maximum of 20 years. Impairment tests 50 HJJV\U[^P[O[OLL_JLW[PVUVMKPќLYLUJLZ HYLJHYYPLKV\[H[[OLLUKVM[OLÄYZ[`LHY General equipment on foreign currency borrowings to the and thereafter subject to normal periodic – 4 to 10 years L_[LU[[OH[[OL`HYL\ZLK[VÄUHUJLVY reviews for indications of impairment. provide a hedge against foreign equity Where there is impairment in the carrying ,X\PWTLU[HJX\PYLKMVYZWLJPÄJ investments which are taken directly to ]HS\LVMNVVK^PSSHUKPU[HUNPISLÄ_LK research projects reserves together with the exchange assets, the loss is incurred in the results – project life (generally 3 years) KPќLYLUJLVU[OLJHYY`PUNHTV\U[VM[OL for the period. Positive purchased related investments. Tax charges and NVVK^PSSPZJHWP[HSPZLKHUKJSHZZPÄLKHZ Leased equipment credits attributable to those borrowings an asset on the balance sheet. Negative – period of lease are also dealt with in reserves. goodwill is separately disclosed on the Where equipment is acquired with the MHJLVM[OLIHSHUJLZOLL[PUÄ_LKHZZL[Z HPKVMZWLJPÄJNYHU[ZP[PZJHWP[HSPZLKHUK Group and is released to the income and depreciated as above. The related grant ;OLÄUHUJPHSZ[H[LTLU[ZVMZ\IZPKPHY` expenditure account. undertakings are translated at the rate is credited to a deferred capital grant account and released to the income and of exchange ruling at the balance sheet 7DQJLEOHð[HGDVVHWV KH[L;OLL_JOHUNLKPќLYLUJLHYPZPUN expenditure account over the expected on the retranslation of opening net a. Land and buildings useful life of the related equipment or the assets is taken directly to reserves. Land and buildings are stated at cost. WLYPVKVM[OLNYHU[PUYLZWLJ[VMZWLJPÄJ Freehold land is not depreciated. (SSV[OLYL_JOHUNLKPќLYLUJLZHYL research projects. taken to income and expenditure with Buildings are depreciated over their expected useful lives to the University c. Heritage assets [OLL_JLW[PVUVMKPќLYLUJLZVUMVYLPNU Where material, heritage assets currency borrowings to the extent that (generally 50 years), and leasehold land over the life of the lease. Major purchased on or after 1 August 2007 [OL`HYL\ZLK[VÄUHUJLVYWYV]PKLH are measured and recognised at their hedge against group equity investments refurbishments are depreciated over their cost. Where reliable cost or valuation in foreign enterprises which are taken expected useful lives to the University information is available assets acquired directly to reserves together with (generally 25 years). prior to 1 August 2007 are included in [OLL_JOHUNLKPќLYLUJLVU[OLUL[ Where buildings are acquired with the aid Ä_LKHZZL[Z investments in the enterprises. VMZWLJPÄJNYHU[Z[OL`HYLJHWP[HSPZLKHUK Tax charges and credits attributable depreciated as above. The related grants to those borrowings are also dealt 10. Investments are treated as deferred capital grants and with in reserves. Fixed asset investments that are not released to income over the expected listed on a recognised stock exchange useful life of the buildings on a basis are carried at historical cost, less any 7. Leases consistent with the depreciation policy. provision for impairment in their value. Leasing agreements that transfer to the Finance costs which are directly x157029_NUI_Hi-Res.pdf 50 26/11/2015 13:14 12. Stocks The current service cost and any past service costs are included in the income Stocks are valued at the lower of HUKL_WLUKP[\YLHJJV\U[^P[OPUZ[Hќ cost and net realisable value. Where costs, and the expected return on the necessary, provision is made for obsolete, scheme’s assets, net of the impact of the slow-moving and defective stocks. unwinding of the discount on scheme liabilities, is included within interest 13. Provisions receivable/payable. Actuarial gains and Provisions are recognised when SVZZLZPUJS\KPUNKPќLYLUJLZIL[^LLU[OL the institution has a present legal or expected and actual return on scheme constructive obligation as a result of assets are recognised, net of the related a past event and it is probable that a deferred tax, in the Statement of Total [YHUZMLYVMLJVUVTPJILULÄ[^PSSIL Recognised Gains and Losses. required to settle the obligation and a 51 reliable estimate can be made of the 15. Taxation status amount of the obligation. The University is an exempt charity within the meaning of Schedule 2 of 14. Pension schemes the Charities Act 2011 and as such is a The two principal pension schemes for charity within the meaning of Paragraph 1 [OL x157029_NUI_Hi-Res.pdf 51 26/11/2015 13:14 Consolidated Income and Expenditure Account for the year ended 31 July 2015 2015 2014 INCOME Note £m £m Funding Council grants 1 70.4 82.0 Academic fees and support grants 2 205.7 179.8 Research grants and contracts 3 122.6 102.0 Other operating income (including share of joint ventures) 4 83.3 79.6 Endowment income and interest receivable 5 5.5 6.4 52 Total income 487.5 449.8 Less: share of income from joint ventures 14 (12.3) (11.3) Net income 475.2 438.5 EXPENDITURE :[HќJVZ[Z Other operating expenses 7 171.0 169.4 Depreciation 11 14.1 11.6 Amortisation 12 0.1 – Interest payable 8 2.8 2.6 Total expenditure 9 428.4 411.8 :\YWS\ZHM[LYKLWYLJPH[PVUVMÄ_LKHZZL[ZH[JVZ[HUKILMVYL[H_ :OHYLVMVWLYH[PUNWYVÄ[PUQVPU[]LU[\YLZHUKHZZVJPH[LK\UKLY[HRPUNZ Operating surplus 48.2 29.0 Taxation 10 (3.9) (0.3) :\YWS\ZHM[LYKLWYLJPH[PVUVMÄ_LKHZZL[ZH[JVZ[HUK[H_ +LÄJP[MVY[OL`LHY[YHUZMLYYLK[VLUKV^TLU[M\UKZ Surplus for the year retained within general reserves 21 45.8 30.3 The income and expenditure account is in respect of continuing operations. x157029_NUI_Hi-Res.pdf 52 26/11/2015 13:14 Statement of Consolidated Total Recognised Gains and Losses for the year ended 31 July 2015 2015 2014 Note £m £m :\YWS\ZHM[LYKLWYLJPH[PVUVMÄ_LKHZZL[ZH[JVZ[HUK[H_ Appreciation of endowment asset investments 20 5.5 3.1 New endowments net of transfers out of expendable endowments 20 0.4 0.9 Actuarial loss relating to the pension scheme 32 (24.0) (26.4) TOTAL RECOGNISED GAINS RELATING TO THE YEAR 26.2 6.3 53 Reconciliation: Opening reserves and endowments 217.6 211.3 Total recognised gains for the year 26.2 6.3 Closing reserves and endowments 243.8 217.6 ;OLYLPZUVKPќLYLUJLIL[^LLUYLWVY[LKHUKOPZ[VYPJHSJVZ[Z\YWS\ZLZHUKKLÄJP[Z x157029_NUI_Hi-Res.pdf 53 26/11/2015 13:14 Balance Sheets as at 31 July 2015 CONSOLIDATED UNIVERSITY 2015 2014 2015 2014 Note £m £m £m £m FIXED ASSETS Tangible assets 11 292.0 271.5 272.3 248.8 Intangible assets 12 0.3 – 0.3 – Investments 13 0.1 0.1 19.8 17.6 Investment assets – joint ventures and associated undertakings 14 Share of gross assets – joint ventures 25.9 24.1 – – Share of gross liabilities – joint ventures (9.6) (9.2) – – 54 Share of net assets – associated undertakings 0.2 – – – 308.9 286.5 292.4 266.4 ENDOWMENT ASSET INVESTMENTS 15 62.0 57.6 62.0 57.6 CURRENT ASSETS Stocks in hand 0.1 0.1 0.1 0.1 Debtors 16 62.3 36.7 62.0 39.3 Short-term liquid deposits 148.8 153.1 148.8 153.1 Cash at bank and in hand 13.6 14.8 10.8 9.6 224.8 204.7 221.7 202.1 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 17 (100.2) (110.2) (97.7) (107.6) NET CURRENT ASSETS 124.6 94.5 124.0 94.5 TOTAL ASSETS LESS CURRENT LIABILITIES 495.5 438.6 478.4 418.5 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 18 (37.9) (40.4) (17.1) (17.8) NET ASSETS EXCLUDING PENSION LIABILITY 457.6 398.2 461.3 400.7 PENSION LIABILITY 32 (69.0) (45.1) (69.0) (45.1) NET ASSETS INCLUDING PENSION LIABILITY 388.6 353.1 392.3 355.6 DEFERRED CAPITAL GRANTS 19 144.7 135.4 144.7 135.4 ENDOWMENTS Permanent 20 42.6 39.7 42.6 39.7 Expendable 20 19.4 17.9 19.4 17.9 62.0 57.6 62.0 57.6 RESERVES General reserve excluding pension liability 250.8 205.1 254.6 207.7 Pension liability 32 (69.0) (45.1) (69.0) (45.1) General reserve including pension liability 21 181.8 160.0 185.6 162.6 MINORITY INTEREST 0.1 0.1 – – TOTAL FUNDS 388.6 353.1 392.3 355.6 ;OLÄUHUJPHSZ[H[LTLU[Z^LYLHWWYV]LKI`*V\UJPSVU 6J[VILY HUKZPNULKVUP[ZILOHSMI`! C H BRINK, S J LIGHTLEY, R C DALE, Vice-Chancellor Treasurer Executive Director of Finance x157029_NUI_Hi-Res.pdf 54 26/11/2015 13:14 Consolidated Cash Flow Statement for the year ended 31 July 2015 2015 2014 Note £m £m NET CASH INFLOW FROM OPERATING ACTIVITIES 22 16.8 40.3 9L[\YUZVUPU]LZ[TLU[ZHUKZLY]PJPUNVMÄUHUJL Taxation (0.1) (0.1) *HWP[HSL_WLUKP[\YLHUKÄUHUJPHSPU]LZ[TLU[ *HZOV\[ÅV^PUÅV^ILMVYL\ZLVMSPX\PKYLZV\YJLZHUKÄUHUJPUN Management of liquid resources 55 – cash decrease / (increase) in short-term deposits 4.3 (45.1) -PUHUJPUN¶KLJYLHZLPUÄ_LK[LYTSVHUZ Decrease in cash in the period (1.5) (20.3) RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS Decrease in cash in the period (1.5) (20.3) (Decrease) / increase in short-term deposits (4.3) 45.1 Repayment of debt 1.0 1.0 *OHUNLPUUL[M\UKZYLZ\S[PUNMYVTJHZOÅV^Z +LJYLHZLPUJYLHZLPUÄUHUJLSLHZLZ Movement in net funds (2.2) 0.9 Net funds at 1 August 129.7 128.8 Net funds at 31 July 26 127.5 129.7 Included within net funds and creditors: amounts falling due within one year (note 17) are cash balances of £9.9m (2014 £10.2m) that relate to, and are ring-fenced for, collaborative research projects. x157029_NUI_Hi-Res.pdf 55 26/11/2015 13:14 Notes to the Accounts 1 FUNDING COUNCIL GRANTS 2015 2014 £m £m HEFCE recurrent grant 62.3 73.3 /,-*,ZWLJPÄJNYHU[Z HEFCE deferred capital grants released in year – Buildings 2.8 2.8 – Equipment – 0.2 ;LHJOPUN(NLUJ`ZWLJPÄJNYHU[ ¶ 56 70.4 82.0 2 ACADEMIC FEES AND SUPPORT GRANTS 2015 2014 £m £m Full-time students 115.1 97.1 Full-time students charged overseas fees, UK taught 68.0 63.9 Full-time students charged overseas fees, overseas taught 14.8 12.2 Part-time fees 2.5 2.3 Research training support grants 3.0 2.9 Short courses 2.3 1.4 205.7 179.8 3 RESEARCH GRANTS AND CONTRACTS 2015 2014 £m £m Research Councils 32.3 30.9 UK-based charities 24.6 24.9 European Commission 13.0 12.2 Other grants and contracts 35.1 34.0 Research Development Expenditure Credit Scheme 17.6 – 122.6 102.0 4 OTHER OPERATING INCOME 2015 2014 £m £m Residences, catering and conferences 24.9 23.9 Other services rendered 5.1 4.9 Health authorities 12.1 12.4 Share of income from joint ventures 12.3 11.3 Other income 28.9 27.1 83.3 79.6 5 ENDOWMENT INCOME AND INTEREST RECEIVABLE 2015 2014 £m £m Income from permanent endowments (note 20) 0.9 0.9 Income from expendable endowments (note 20) 0.4 0.4 7LUZPVUÄUHUJLPU[LYLZ[UV[L Income from short-term investments 1.8 1.6 5.5 6.4 x157029_NUI_Hi-Res.pdf 56 26/11/2015 13:14 Notes to the Accounts (continued) 6 STAFF 2015 2014 £m £m STAFF COSTS Wages and salaries 186.2 176.8 Social security costs 15.3 14.6 Other pension costs 36.6 35.1 FRS17 pension service cost adjustment 2.3 1.7 240.4 228.2 57 2015 2014 £000 £000 Emoluments of the Vice-Chancellor: Salary 244.8 224.2 )LULÄ[ZPURPUK ¶ 244.8 225.6 Pension contributions 61.7 56.4 306.5 282.0 STAFF NUMBERS 2015 2014 Average FTEs Average FTEs Academic 1,379 1,318 Support 2,751 2,666 Research 1,040 1,009 5,170 4,993 9LT\ULYH[PVUVMOPNOLYWHPKZ[HќL_JS\KPUN[OL=PJL*OHUJLSSVYHUK 2015 2014 LTWSV`LY»ZWLUZPVUJVU[YPI\[PVUZJSPUPJHSZ[HќU\TILYZPUIYHJRL[Z! Number Number £100,000–£109,999 18 (8) 16 (7) £110,000–£119,999 17 (8) 15 (9) £120,000–£129,999 12 (4) 12 (9) £130,000–£139,999 12 (9) 17 (11) £140,000–£149,999 8 (7) 13 (12) £150,000–£159,999 9 (9) 8 (7) £160,000–£169,999 12 (12) 5 (4) £170,000–£179,999 7 (6) 11 (11) £180,000–£189,999 6 (6) 5 (5) £190,000–£199,999 3 (3) 1 (1) £200,000–£209,999 3 (3) 2 (2) £210,000–£219,999 4 (4) 5 (4) £220,000–£229,999 – – 1 (1) £230,000–£239,999 1 (1) 1 (1) 112 112 x157029_NUI_Hi-Res.pdf 57 26/11/2015 13:14 Notes to the Accounts (continued) 7 OTHER OPERATING EXPENSES 2015 2014 £m £m Building maintenance and renewals 13.7 11.5 Student-related expenditure 25.5 28.8 Consumables and laboratory expenditure 17.5 17.4 :[HќYLSH[LKL_WLUKP[\YL Non-capitalised equipment purchases and maintenance 17.5 17.6 Heat, light, water and power 10.2 9.4 Residences, catering and conference operating expenses 9.0 8.3 58 Professional fees 4.2 4.1 Books and periodicals 5.3 5.1 Students’ Union annual subvention 1.7 1.5 Operating lease rentals – land and buildings 6.7 8.0 Other expenses 31.2 30.4 171.0 169.4 Professional fees include auditor’s remuneration in respect of audit services for the Group of £92,775 to Ernst & Young LLP ! HUKMVY[OL 8 INTEREST PAYABLE 2015 2014 £m £m 6USVHUZUV[^OVSS`YLWH`HISL^P[OPUÄ]L`LHYZ 6UÄUHUJLSLHZLZ 2.8 2.6 9 ANALYSIS OF 2014–15 EXPENDITURE BY ACTIVITY Other Depreciation :[HɈ 6WLYH[PUN HUK 0U[LYLZ[ Costs Expenses Amortisation Payable Total £m £m £m £m £m Academic schools 129.5 33.5 1.6 – 164.6 Academic services 15.5 15.4 0.8 – 31.7 Administration and central services 22.6 34.6 0.1 – 57.3 Premises 8.7 33.0 7.3 2.2 51.2 Residences, catering and conferences 5.2 12.9 1.2 0.6 19.9 Research grants and contracts 51.0 33.6 3.0 – 87.6 Other expenditure 7.9 8.0 0.2 – 16.1 Total per income and expenditure account 240.4 171.0 14.2 2.8 428.4 The depreciation and amortisation charge has been funded by: Deferred capital grants released 6.8 General income 7.4 14.2 Administration and central services includes £18.9m (2014: £15.9m) in respect of payments made to students for bursaries, WYPaLZZJOVSHYZOPWZVYV[OLYZPTPSHYH^HYKZ-VSSV^PUNN\PKHUJLPZZ\LKI`/,:([OLYLOHZILLUZVTLYLJSHZZPÄJH[PVUVMV[OLY operating expenses during the year so that payments to students are now allocated to administration and central services rather than academic schools. x157029_NUI_Hi-Res.pdf 58 26/11/2015 13:14 Notes to the Accounts (continued) 10 TAXATION 2015 2014 £m £m Republic of Singapore corporation tax at 17% (2014 – 17%) 0.1 0.1 Republic of Singapore witholding tax at 17% (2014 – 17%) 0.1 0.2 United Kingdom corporation tax at average rate of 21% (2014 – 20%) 3.7 – 3.9 0.3 United Kingdom corporation tax arises wholly from the research development expenditure credit scheme. 59 11 TANGIBLE ASSETS CONSOLIDATED Land and Buildings Leasehold Assets under Freehold Long Short Construction Equipment Total £m £m £m £m £m £m COST Balance at 1 August 2014 164.1 124.0 19.0 27.7 67.6 402.4 Additions 7.7 – 0.5 17.5 11.3 37.0 Foreign exchange retranslation – (2.1) – – – (2.1) Transfers from assets under construction 18.9 1.1 – (20.0) – – Disposals (0.6) – – – (2.0) (2.6) Balance at 31 July 2015 190.1 123.0 19.5 25.2 76.9 434.7 DEPRECIATION Balance at 1 August 2014 37.3 29.1 5.6 – 58.9 130.9 Charge for year 4.0 2.8 0.9 – 6.4 14.1 Eliminated on disposals (0.3) – – – (2.0) (2.3) Balance at 31 July 2015 41.0 31.9 6.5 – 63.3 142.7 NET BOOK VALUE At 31 July 2015 149.1 91.1 13.0 25.2 13.6 292.0 At 1 August 2014 126.8 94.9 13.4 27.7 8.7 271.5 Financed by Funding Council capital grants 25.5 59.2 – 11.7 0.3 96.7 Other 123.6 31.9 13.0 13.5 13.3 195.3 149.1 91.1 13.0 25.2 13.6 292.0 ;OLUL[IVVR]HS\LVMHZZL[ZOLSK\UKLYÄUHUJLSLHZLZH[1\S` PZ T THUK[OLYLSH[LKKLWYLJPH[PVU charge for the year was £0.8m (2014 £0.8m). x157029_NUI_Hi-Res.pdf 59 26/11/2015 13:14 Notes to the Accounts (continued) 11 TANGIBLE ASSETS (continued) UNIVERSITY Land and Buildings Leasehold Assets under Freehold Long Short Construction Equipment Total £m £m £m £m £m £m COST Balance at 1 August 2014 164.0 100.7 19.0 27.7 66.5 377.9 Additions 7.7 – 0.5 17.5 11.3 37.0 60 Transfers from assets under construction 18.9 1.1 – (20.0) – – Disposals (0.6) – – – (2.0) (2.6) Balance at 31 July 2015 190.0 101.8 19.5 25.2 75.8 412.3 DEPRECIATION Balance at 1 August 2014 37.3 28.3 5.6 – 57.9 129.1 Charge for year 4.0 2.1 0.9 – 6.2 13.2 Eliminated on disposals (0.3) – – – (2.0) (2.3) Balance at 31 July 2015 41.0 30.4 6.5 – 62.1 140.0 NET BOOK VALUE At 31 July 2015 149.0 71.4 13.0 25.2 13.7 272.3 At 1 August 2014 126.7 72.4 13.4 27.7 8.6 248.8 Financed by Funding Council capital grants 25.5 59.2 – 11.7 0.3 96.7 Other 123.5 12.2 13.0 13.5 13.4 175.6 149.0 71.4 13.0 25.2 13.7 272.3 The University holds a number of collections, exhibits and artefacts, most of which have been donated or bequeathed to the 12 INTANGIBLE ASSETS CONSOLIDATED UNIVERSITY 2015 2014 2015 2014 £m £m £m £m COST Balance at 1 August 2014 – – – – Additions 0.4 – 0.4 – Balance at 31 July 2015 0.4 – 0.4 – AMORTISATION Balance at 1 August 2014 – – – – Charge for year 0.1 – 0.1 – Balance at 31 July 2015 0.1 – 0.1 – NET BOOK VALUE At 31 July 2015 0.3 – 0.3 – During the year the University paid £400,000 for open access to a suite of cloud-based software packages. x157029_NUI_Hi-Res.pdf 60 26/11/2015 13:14 Notes to the Accounts (continued) 13 FIXED ASSET INVESTMENTS CONSOLIDATED UNIVERSITY 2015 2014 2015 2014 £m £m £m £m :OHYLZPUZ\IZPKPHY`\UKLY[HRPUNZH[JVZ[SLZZHTV\U[Z ^YP[[LUVќ ¶ ¶ 6[OLYPU]LZ[TLU[ZV[OLY[OHUSVHUZ ([JVZ[(\N\Z[ (KKP[PVUZ¶5L^JHZ[SL:JPLUJL*LU[YHS337 ¶ ¶ ¶ 6[OLYHKKP[PVUZPU`LHY ¶ ¶ 61 ([JVZ[1\S` ;V[HSÄ_LKHZZL[PU]LZ[TLU[Z SHARES IN SUBSIDIARY UNDERTAKINGS +L[HPSZVM[OLJVTWHUPLZHSSYLNPZ[LYLKPU,UNSHUKHUK>HSLZ\USLZZV[OLY^PZLZ[H[LKPU^OPJO5L^JHZ[SL Name of Company Percentage Holding of Nature of Business Ordinary Shares % 5L^JHZ[SL OTHER INVESTMENTS OTHER THAN LOANS Percentage of CONSOLIDATED UNIVERSITY voting rights 2015 2014 2015 2014 % £m £m £m £m *=*77YVWLY[PLZ73* 5VY[O,HZ[:LLK*HWP[HS-\UK37 ¶ ¶ ¶ ¶ 5VY[O,HZ[:LLK*HWP[HS-\UK;^V37 ¶ ¶ ¶ ¶ ;OL x157029_NUI_Hi-Res.pdf 61 26/11/2015 13:14 Notes to the Accounts (continued) 14 INVESTMENT IN JOINT VENTURES AND ASSOCIATED UNDERTAKINGS 05;65L^JHZ[SL 5L^JHZ[SL:JPLUJL*LU[YHS337PZHQVPU[]LU[\YLIL[^LLU[OL +\YPUN[OL`LHY[OLNYV\WHJX\PYLKH OVSKPUNPU5LW[\UL;LZ[*LU[YL3PTP[LK^OVZLWYPUJPWHSHJ[P]P[`PZ[OLJYLH[PVUVMH *LU[YLVM,_JLSSLUJLMVY/`WLYIHYPJ;LZ[PUNPU5L^JHZ[SL;OPZOVSKPUNOHZILLU[YLH[LKHZHUHZZVJPH[LK\UKLY[HRPUNH ZOHYLVM[OLJVTWHU`»ZSVZZLZ[VKH[LPZYLWVY[LKPU[OLJVUZVSPKH[LKPUJVTLHUKL_WLUKP[\YLHJJV\U[HUKH ZOHYLVM[OL JVTWHU`»ZUL[HZZL[ZPZZOV^UPU[OL CONSOLIDATED Consolidated Income and expenditure account 2015 2014 £m £m :OHYLVMPUJVTLMYVTQVPU[]LU[\YL¶05;65L^JHZ[SL :OHYLVMVWLYH[PUNWYVÄ[MYVTQVPU[]LU[\YL¶05;65L^JHZ[SL :OHYLVMNYVZZHZZL[ZMYVTQVPU[]LU[\YL¶05;65L^JHZ[SL x157029_NUI_Hi-Res.pdf 62 26/11/2015 13:14 Notes to the Accounts (continued) 15 ENDOWMENT ASSET INVESTMENTS CONSOLIDATED AND UNIVERSITY 2015 2014 £m £m At 1 August 57.6 55.2 Additions 18.9 18.2 Disposals (19.7) (19.9) Net appreciation on disposals and on revaluation 5.5 3.1 Increase / (decrease) in cash balances (0.3) 0.2 Increase / (decrease) in other current asset balances – 0.8 63 At 31 July 62.0 57.6 Fixed interest stock and equities 61.3 56.6 Bank balances 1.2 1.5 Other current balances (0.5) (0.5) 62.0 57.6 16 DEBTORS CONSOLIDATED UNIVERSITY 2015 2014 2015 2014 £m £m £m £m Trade debtors 19.5 13.6 19.3 13.5 Accrued income on research grants and contracts 14.1 14.6 14.1 14.6 Amounts owed by subsidiary undertakings – – 2.6 3.9 Prepayments and accrued income 26.9 7.6 24.9 6.6 Other debtors 1.8 0.9 1.1 0.7 62.3 36.7 62.0 39.3 Contained within amounts owed by subsidiary undertakings is an amount of £500,000 due from NUMed Malaysia which is repayable after more than one year. Contained within consolidated other debtors is an amount of £500,000 due from Neptune Test Centre Limited which is repayable after more than one year. 17 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR CONSOLIDATED UNIVERSITY 2015 2014 2015 2014 £m £m £m £m Fixed-term loans 1.0 1.0 1.0 1.0 6ISPNH[PVUZ\UKLYÄUHUJLSLHZLZ ¶ ¶ Payments received on account 37.2 42.7 37.2 42.7 Research collaborator creditors 9.9 10.2 9.9 10.2 Other creditors 6.9 6.7 6.9 6.7 Social security and other taxation payable 5.6 5.5 5.6 5.5 Accruals and deferred income 38.1 41.8 37.1 41.5 100.2 110.2 97.7 107.6 x157029_NUI_Hi-Res.pdf 63 26/11/2015 13:14 Notes to the Accounts (continued) 18 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR CONSOLIDATED UNIVERSITY 2015 2014 2015 2014 £m £m £m £m Fixed-term, unsecured loans repayable by 2029 12.8 13.8 12.8 13.8 Accruals and deferred income 4.3 4.0 4.3 4.0 6ISPNH[PVUZ\UKLYÄUHUJLSLHZLZ ¶ ¶ 37.9 40.4 17.1 17.8 64 CONSOLIDATED ,ɈLJ[P]L (5+<50=,9:0;@ Fixed-term unsecured loans are repayable in accordance Interest Rate 2015 2014 ^P[O[OLMVSSV^PUNWYVÄSL! % £m £m :[\KLU[YLZPKLUJLZSVHUK\LHM[LYVUL`LHYI\[UV[TVYL[OHUÄ]L`LHYZ (JHKLTPJI\PSKPUNZSVHUK\LHM[LYVUL`LHYI\[UV[TVYL[OHUÄ]L`LHYZ 3.9 3.9 :[\KLU[YLZPKLUJLZSVHUK\LHM[LYTVYL[OHUÄ]L`LHYZ (JHKLTPJI\PSKPUNZSVHUK\LHM[LYTVYL[OHUÄ]L`LHYZ 12.8 13.8 Both loans are repayable quarterly in instalments of £170,000 and £75,000 respectively for the student residences and academic buildings. 19 DEFERRED CAPITAL GRANTS CONSOLIDATED AND UNIVERSITY Funding Other Grants and Council Benefactions Total £m £m £m At 1 August Buildings 89.3 42.2 131.5 Equipment 0.3 3.6 3.9 89.6 45.8 135.4 Amounts received Buildings 9.9 1.4 11.3 Equipment – 4.8 4.8 9.9 6.2 16.1 Released to income and expenditure account Buildings 2.8 0.9 3.7 Equipment – 3.1 3.1 2.8 4.0 6.8 At 31 July Buildings 96.4 42.7 139.1 Equipment 0.3 5.3 5.6 96.7 48.0 144.7 x157029_NUI_Hi-Res.pdf 64 26/11/2015 13:14 Notes to the Accounts (continued) 20 ENDOWMENTS CONSOLIDATED AND UNIVERSITY Unrestricted Restricted Total Restricted 2015 2014 Permanent Permanent Permanent Expendable Total Total £m £m £m £m £m £m At 1 August Capital 2.7 16.5 19.2 10.7 29.9 29.0 Unapplied return 2.7 17.8 20.5 7.2 27.7 26.2 5.4 34.3 39.7 17.9 57.6 55.2 65 New endowments – – – 0.5 0.5 0.9 Transfer out from expendable endowments – – – (0.1) (0.1) – Appreciation of endowment asset investments 0.5 3.3 3.8 1.7 5.5 3.1 0.5 3.3 3.8 2.1 5.9 4.0 Income 0.1 0.8 0.9 0.4 1.3 1.3 Expenditure (0.2) (1.6) (1.8) (1.0) (2.8) (2.9) (0.1) (0.8) (0.9) (0.6) (1.5) (1.6) At 31 July 5.8 36.8 42.6 19.4 62.0 57.6 Represented by: Capital 2.7 16.5 19.2 11.2 30.4 29.9 Unapplied return 3.1 20.3 23.4 8.2 31.6 27.7 5.8 36.8 42.6 19.4 62.0 57.6 21 GENERAL RESERVE CONSOLIDATED UNIVERSITY 2015 2014 2015 2014 £m £m £m £m At 1 August 160.0 156.1 162.6 157.0 Surplus retained for the year 45.8 30.3 47.0 32.0 Actuarial (loss) on pension scheme (24.0) (26.4) (24.0) (26.4) At 31 July 181.8 160.0 185.6 162.6 ;OLPTWHJ[VM-9: YL[PYLTLU[ILULÄ[ZPZKL[HPSLKM\SS`^P[OPUUV[LVM[OLZLÄUHUJPHSZ[H[LTLU[Z 22 RECONCILIATION OF SURPLUS BEFORE TAX TO NET 2015 2014 CASH INFLOW FROM OPERATING ACTIVITIES £m £m :\YWS\ZHM[LYKLWYLJPH[PVUVMÄ_LKHZZL[ZH[JVZ[HUKILMVYL[H_ Depreciation 14.1 11.6 Amortisation 0.1 – 7YVÄ[VUKPZWVZHSVMMYLLOVSKSHUKHUKI\PSKPUNZ Deferred capital grants released to income (6.8) (5.8) 7YVÄ[KPZ[YPI\[PVUMYVT05;65L^JHZ[SL 5L[JHZOPUÅV^MYVTVWLYH[PUNHJ[P]P[PLZ x157029_NUI_Hi-Res.pdf 65 26/11/2015 13:14 Notes to the Accounts (continued) 23 RETURNS ON INVESTMENTS AND SERVICING OF FINANCE 2015 2014 £m £m Income from endowments 1.3 1.3 Other interest received 1.5 2.1 Interest paid (3.1) (0.9) 5L[JHZOPUÅV^MYVTYL[\YUZVUPU]LZ[TLU[ZHUKZLY]PJPUNVMÄUHUJL 24 CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT 2015 2014 66 £m £m 7\YJOHZLVM[HUNPISLÄ_LKHZZL[Z 7\YJOHZLVMPU[HUNPISLÄ_LKHZZL[Z ¶ Payments to acquire long-term investments (2.5) (2.4) Payments to acquire endowment assets (18.9) (18.2) ;V[HSÄ_LKHUKLUKV^TLU[HZZL[PU]LZ[TLU[ZHJX\PYLK Receipts from sale of endowment assets 19.7 19.9 Receipts from sale of freehold land and buildings 1.4 2.2 Deferred capital grants received 16.1 2.6 New endowments – net of transfers out of expendable endowments 0.4 0.9 5L[JHZOV\[ÅV^MYVTJHWP[HSL_WLUKP[\YLHUKÄUHUJPHSPU]LZ[TLU[ 25 ANALYSIS OF CHANGES IN CONSOLIDATED FINANCING DURING THE YEAR £m At 1 August 2013 15.8 5L^ÄUHUJLSLHZLZ *HWP[HSYLWH`TLU[Z¶Ä_LK[LYTSVHUZ At 31 July 2014 39.7 -VYLPNUL_JOHUNLYL[YHUZSH[PVUVMÄUHUJLSLHZLZ Finance lease instalments paid (2.3) Finance lease interest payable 2.0 *HWP[HSYLWH`TLU[Z¶Ä_LK[LYTSVHUZ At 31 July 2015 36.1 26 ANALYSIS OF CHANGES IN NET FUNDS At 1 August Cash Other At 31 July 2014 Flows Changes 2015 £m £m £m £m Cash at bank and in hand: Endowment asset investments (note 15) 1.5 (0.3) – 1.2 Others 14.8 (1.2) – 13.6 16.3 (1.5) – 14.8 Short-term investments 153.1 (4.3) – 148.8 Debt due within one year (1.0) 1.0 (1.0) (1.0) Debt due after one year (13.8) – 1.0 (12.8) Finance leases due within one year (2.3) 2.3 (1.5) (1.5) Finance leases due after one year (22.6) – 1.8 (20.8) 129.7 (2.5) 0.3 127.5 x157029_NUI_Hi-Res.pdf 66 26/11/2015 13:14 Notes to the Accounts (continued) 27 CAPITAL COMMITMENTS CONSOLIDATED AND UNIVERSITY 2015 2014 £m £m Commitments contracted at 31 July 15.6 17.5 Authorised but not contracted at 31 July 166.1 69.4 181.7 86.9 28 CONTINGENT LIABILITIES ;OL 29 LEASE OBLIGATIONS CONSOLIDATED AND UNIVERSITY (TV\U[ZK\L\UKLYÄUHUJLSLHZLZ! 2015 2014 £m £m Amounts payable Within one year 1.5 2.3 0U[^V[VÄ]L`LHYZ 0UTVYL[OHUÄ]L`LHYZ 59.5 68.2 3LZZ!ÄUHUJLJOHYNLZHSSVJH[LK[VM\[\YLWLYPVKZ 22.3 24.9 Annual rentals under operating lease commitments are as follows: 2015 2014 £m £m Leases expiring: 0U[^V[VÄ]L`LHYZ 6]LYÄ]L`LHYZ 6.4 6.2 30 ACCESS FUNDS 2015 2014 £m £m Balance unspent at 1 August 0.2 0.1 Funding Council grants – 0.2 0.2 0.3 Disbursements (0.2) (0.1) Balance unspent at 31 July – 0.2 Funding Council grants are available solely for students; the University acts only as paying agent. The grants and related disbursements are therefore excluded from the income and expenditure account. 31 TEACHING AGENCY 2015 2014 £m £m Training bursaries: Balance overspent at beginning of year (0.1) – Grant 1.4 1.2 Disbursements (1.4) (1.3) Balance due from Teaching Agency at 31 July (0.1) (0.1) The above training bursaries from the Teaching Agency (TA) are available solely for students in initial teacher training; the University acts only as paying agent. The bursaries and related disbursements are therefore excluded from the income and expenditure account. x157029_NUI_Hi-Res.pdf 67 26/11/2015 13:14 Notes to the Accounts (continued) 32 PENSION ARRANGEMENTS ;OL ;OL 7LUZPVUÄUHUJLPU[LYLZ[UV[L ;V[HSWLUZPVUJVZ[PUJS\KPUNWLUZPVUÄUHUJLPU[LYLZ[ RBP 9)7PZHU,_LTW[(WWYV]LK:JOLTL\UKLY[OL-PUHUJL(J[ HUKWYV]PKLZILULÄ[ZIHZLKVUÄUHSWLUZPVUHISLZHSHY`"P[PZ LZ[HISPZOLK\UKLYPYYL]VJHISL[Y\Z[ZHUKP[ZHZZL[ZHYLRLW[Z[YPJ[S`ZLWHYH[LMYVT[OVZLVM[OL The impact of FRS17 resulted in the following movements: 2015 2014 £m £m 0UJYLHZLPUZ[HќJVZ[Z 7LUZPVUÄUHUJLPUJVTL Impact on the income and expenditure account for the year 0.1 1.8 Actuarial loss relating to the pension scheme (24.0) (26.4) Decrease in total recognised gains and losses for the year (23.9) (24.6) Pension liability at 1 August (45.1) (20.5) Pension liability at 31 July (69.0) (45.1) The expected employer contribution to the plan during the next accounting year is £6.1m. (M\SSHJ[\HYPHS]HS\H[PVU^HZJHYYPLKV\[HZH[(\N\Z[HUK\WKH[LK[V1\S` I`HX\HSPÄLKPUKLWLUKLU[HJ[\HY` The major assumptions used by the actuary were: Year ended Year ended 31 July 2015 31 July 2014 Discount rate at year end 3.55% 4.20% Expected return on plan assets at year end N/A 6.60% Future salary increases 3.65% 3.70% 970PUÅH[PVU *70PUÅH[PVU Life expectancy of current pensioners (from age 65) 24.1 23.9 Life expectancy of future pensioners (from age 65) 25.6 25.4 x157029_NUI_Hi-Res.pdf 68 26/11/2015 13:14 Notes to the Accounts (continued) 32 PENSION ARRANGEMENTS (continued) The assets in the scheme and the expected rate of return were: Value at Value at 31 July Asset 31 July Asset 2015 Allocation 2014 Allocation £m % £m % Equities 82.2 42 75.1 42 69 Bonds 72.7 37 60.7 33 Property 13.8 7 13.9 8 Absolute return fund 22.2 11 24.0 13 Cash 6.5 3 7.9 4 Fair value of assets 197.4 181.6 Present value of obligations (266.4) (226.7) Funded status (69.0) (45.1) Net pension liability (69.0) (45.1) Analysis of the amount charged to operating surplus 2015 2014 £m £m Current service cost 8.2 7.3 Interest on obligation 9.5 8.9 Expected return on plan assets (11.9) (12.4) Total operating charge 5.8 3.8 *OHUNLPUKLÄULKILULÄ[VISPNH[PVU £m £m 6WLUPUNKLÄULKILULÄ[VISPNH[PVU Service cost (including employee contributions) 8.5 7.6 Interest cost 9.5 8.9 Actuarial losses 30.4 26.0 )LULÄ[ZWHPK *SVZPUNKLÄULKILULÄ[VISPNH[PVU 266.4 226.7 Change in fair value of plan assets 2015 2014 £m £m Opening fair value of plan assets 181.6 172.7 Expected return 11.9 12.4 Actuarial gains / (losses) 6.4 (0.4) Contributions by employer 5.9 5.6 Contributions by employee 0.3 0.3 )LULÄ[ZWHPK Closing fair value of plan assets 197.4 181.6 x157029_NUI_Hi-Res.pdf 69 26/11/2015 13:14 Notes to the Accounts (continued) 32 PENSION ARRANGEMENTS (continued) USS <::PZHKLÄULKILULÄ[ZJOLTL^OPJOPZL_[LYUHSS`M\UKLKHUKJVU[YHJ[LKV\[VM[OL:[H[L:LJVUK7LUZPVU:7;OLHZZL[Z of the scheme are held in a separate fund administered by the trustee, Universities Superannuation Scheme Limited. Because of 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 University is therefore exposed to actuarial risks associated with other institutions and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis and, therefore, as YLX\PYLKI`-9: º9L[PYLTLU[)LULÄ[Z»HJJV\U[ZMVY[OLZJOLTLHZPMP[^LYLHKLÄULKJVU[YPI\[PVUZJOLTL(ZHYLZ\S[[OL 70 amount charged to the income and expenditure account represents the contributions payable to the scheme in respect of the accounting period. The total pension cost for the University was £28.6m (2014: £27.5m). This includes £Nil (2014: £2.4m) outstanding contributions at the balance sheet date. The contribution rate payable by the University was 16% (2014: 16%) of pensionable salaries. The latest available triennial actuarial valuation of the scheme was at 31 March 2014 (the valuation date), which was carried out using the projected unit method and is currently being audited by the scheme auditor. Based on this 2014 valuation, it is expected that employer contributions will increase to 18% from 1 April 2016. ;OL]HS\H[PVU^HZ[OL[OPYK]HS\H[PVUMVY<::\UKLY[OLZJOLTLZWLJPÄJM\UKPUNYLNPTLPU[YVK\JLKI`[OL7LUZPVUZ(J[ ^OPJOYLX\PYLZZJOLTLZ[VHKVW[HZ[H[\[VY`M\UKPUNVIQLJ[P]L^OPJOPZ[VOH]LZ\ѝJPLU[HUKHWWYVWYPH[LHZZL[Z[V cover their technical provisions. At the valuation date, the value of the assets of the scheme was £41.6 billion and the value of the scheme’s technical provisions ^HZ IPSSPVUPUKPJH[PUNHZOVY[MHSSVM IPSSPVU;OLHZZL[Z[OLYLMVYL^LYLZ\ѝJPLU[[VJV]LY VM[OLILULÄ[Z^OPJOOHK accrued to members after allowing for expected future increases in earnings. A contingent liability exists in relation to the pension valuation recovery plan since the company is an employer of members within the scheme. The contingent liability relates to the amount generated by past service of current members and the HZZVJPH[LKWYVWVY[PVUVM[OLKLÄJP[.P]LU[OH[[OLZJOLTLPZHT\S[PLTWSV`LYZJOLTLHUK[OLJVTWHU`PZ\UHISL[VPKLU[PM` its share of the underlying assets and liabilities, the contingent liability is not recognised as a provision on the balance sheet. The associated receivable from the scheme in respect of the reimbursement of the company’s expenditure is similarly not recognised. FRS17 liability numbers have been produced using the following assumptions: 2015 2014 Discount rate 3.3% 4.5% 7LUZPVUHISLZHSHY`NYV^[O PU[OLÄYZ[`LHY and 4.0% thereafter 7YPJLPUÅH[PVU*70 x157029_NUI_Hi-Res.pdf 70 26/11/2015 13:14 Notes to the Accounts (continued) 32 PENSION ARRANGEMENTS (continued) The main demographic assumption used relates to the mortality assumptions. Mortality in retirement is assumed to be in line with the Continuous Mortality Investigation’s (CMI) S1NA tables as follows: Male members’ mortality S1NA (‘light’) YoB tables – no age rating Female members’ mortality S1NA (‘light’) YoB tables – rated down 1 year 2015 2014 Males currently aged 65 (years) 24.2 23.7 Females currently aged 65 (years) 26.3 25.6 Males currently aged 45 (years) 26.2 25.5 Females currently aged 45 (years) 28.6 27.6 Scheme Summary 2015 2014 Scheme assets £49.0bn £41.6bn FRS17 liabilities £67.6bn £55.5bn -9: KLÄJP[ IU IU FRS17 funding level 72% 75% x157029_NUI_Hi-Res.pdf 71 26/11/2015 13:14 Notes to the Accounts (continued) 33 RELATED PARTIES ;OL Other organisations Newcastle University Students’ Union 1.4 1.7 0.1 – Students’ Union subvention and fees for other services. The University of Newcastle upon (1.8) (1.8) – – Endowment income Tyne Development Trust distribution. The Newcastle upon Tyne (9.7) (14.0) 2.3 1.0 University representation on Hospitals NHS Trust Trust Board. NHS/academic Z[HќYLJOHYNLZ International Centre for Life 2.7 2.5 – – University representation on Board and rentals payable. Council and Executive Board members Mrs H Mottram, 0.7 0.7 – – Water rates. Northumbrian Water Chief Executive Professor C Day, (9.0) (9.3) 0.1 0.1 Medical Research Council Medical Research Council member research funding. Professor A Boddy, – (1.4) – 0.3 Research funding. Leukaemia and Lymphoma Research Panel member (2014 only); Technology Strategy Board (2014 only) – (1.4) – 0.1 Research funding. Professor C Brink, 0.1 0.1 – – Russell Group subscription. Russell Group Board Director; Universities UK (1.0) (2.1) – – Science Without Borders. Mr M Davison, non-executive director 0.3 0.1 – – City Hospitals Sunderland. Mr R Dale, EPSRC Adult and Risk (13.1) (16.2) – (0.2) EPSRC research funding. Assurance Committee member Council members did not receive any remuneration in respect of their service to Council during the year. The amount paid to members of Council in respect of expenses during the year amounted to £6,866 (2014: £3,503). ;OL x157029_NUI_Hi-Res.pdf 72 26/11/2015 13:14 Five-year Summary 2015 2014 2013 2012 2011 £m £m £m £m £m INCOME -\UKPUN*V\UJPSNYHU[Z (JHKLTPJMLLZHUKZ\WWVY[NYHU[Z 9LZLHYJONYHU[ZHUKJVU[YHJ[Z 6[OLYVWLYH[PUNPUJVTL ,UKV^TLU[PUJVTLHUKPU[LYLZ[YLJLP]HISL Total income 73 EXPENDITURE :[HќJVZ[Z 6[OLYVWLYH[PUNL_WLUZLZ .YHU[[V:[\KLU[Z» Total expenditure Surplus after depreciation of assets but before tax :OHYLVMVWLYH[PUNWYVÄ[PUQVPU[]LU[\YLZHUKHZZVJPH[LK \UKLY[HRPUNZ Operating surplus ;H_H[PVU ¶ ¶ ¶ Surplus after depreciation of assets and tax +LÄJP[MVY[OL`LHY[YHUZMLYYLK[VLUKV^TLU[M\UKZ Surplus for the year retained within general reserves Capital expenditure Net funds x157029_NUI_Hi-Res.pdf 73 26/11/2015 13:14 x157029_NUI_Hi-Res.pdf 74 26/11/2015 13:14 x157029_NUI_Hi-Res.pdf 75 26/11/2015 13:14 We would like to thank the following for the use of their illustrative material: Chris Bishop; John Donoghue; Hawkins\Brown; Chris Henderson; Paul Jones; Mitochondrial Research Group, Newcastle University; Shruti Shrestha; Shutterstock; Mike Urwin. Newcastle University Newcastle upon Tyne NE1 7RU United Kingdom www.ncl.ac.uk Designed by Smith Creative, Newcastle upon Tyne. Printed by Potts Print (UK), Northumberland. © Newcastle University, 2015. The University of Newcastle upon Tyne trading as Newcastle University. x157029_NUI_Hi-Res.pdf 76 26/11/2015 13:14