LAncAsteR UniveRsity AnnUAL RepoRt And AccoUnts 2011

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United Kingdom n u o c

T: +44(0)1524 65201 c A www.lancs.ac.uk d n a

ISBN 978-1-86220-290-0 t r o p e R

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Lancaster University has been awarded the Carbon Trust Standard after taking action on climate change by reducing carbon emissions. The University has made an overall reduction of 245 tonnes of carbon or 0.9% averaged over the past three years. Lancaster University 1

Contents

Vice-Chancellor’s review 2 Pro-Chancellor’s review 4 High notes of the year 6 A global university 12 Awards and distinctions 18 Advancing knowledge through research 30 Key facts and figures 42 Financial Statements 46 Operating and Financial Review for the year ended 31 July 2011 48 Statement of Corporate Governance 56 Independent Auditors’ Report to the Council of Lancaster University 61 Statement of Accounting Policies 62 Consolidated Income and Expenditure Account 64 Statement of Consolidated Historical Cost Surpluses and Deficits 65 Balance Sheets as at 31 July 20 11 66 Consolidated Cash Flow Statement 67 Reconciliation of Net Cash Flow to movement in Net Debt 68 Consolidated Statement of Total Recognised Gains and Losses 69 Notes to the Financial Statements 70 Chancellor’s Guild roll of honour 92 Chancellor’s Guild corporate donors and legacy pledges 93 Trusts, foundations and charities 94 Organisational chart 95 Lancaster University Report and Accounts 2011 3

ViCe-ChanCellor’s reView

The growing reputation of Lancaster was marked this year by top ten placings in each of the UK’s major university been strengthened with a formal respond to this feedback to make sure The Government’s White Paper “Students collaboration with the Chinese Academy every department is outstanding. These at the Heart of the System “ proposes a league tables for the second year running, reports of high student satisfaction and high levels of graduate employment. of Sciences based on the environmental results reflect the dedication of staff who radical change to student number controls The entry standard for undergraduates is now at its highest level ever, reflecting Lancaster’s increasing profile. sciences. Links with China also include the work hard to ensure that every student in order to increase competition while Globally, Lancaster is ranked 131 in the THE international table and 153 in the QS World University Rankings. Lancaster China Management Centre who comes here will receive the very best constraining the overall costs of higher which aims to develop new programmes education. education. From September 2012 the These rankings place Lancaster in the top one per cent in the world. of research and teaching relevant to the University may lose some home/EU The University is singled out for its high needs of Chinese managers. The numbers as they will be priced below levels of graduate employment in The students and boost research and teaching University is also establishing a major new £7,500 and compete for other students Professor Sue Cox, Dean of Lancaster Sunday Times University Guide 2012. amenities. hub for Chinese language and culture on with A’level equivalents at AAB or better. University Management School (LUMS) The Sunday Times reports that an above- campus, which will complement the Over 60 per cent of the 2011 entry cohort was awarded the OBE for services to The new £20m sports centre opened for average proportion of students get extensive China research and teaching met this standard which indicates that social science in the 2011 New Year business in August and a major project to graduate-level jobs (74 per cent) and activities across the University. In March Lancaster has become increasingly Honours. Sue Cox has been Dean of update the main square of campus was Lancaster’s unemployment rate is low. the Lancaster University Confucius selective in recent years. LUMS since 2001 and under her completed this year. We were delighted Lancaster graduates are performing well in Institute was awarded jointly to Lancaster leadership, the School has been one of a that Lancaster’s Founding Chancellor HRH what is an increasingly competitive job Lancaster University has a world view and and its partner the prestigious South China select few to achieve the accreditation ‘hat Princess Alexandra visited campus in April market. Through the work of our staff in the this is reflected in the scope of our Jubilee University of Technology in Guangzhou. trick’ of EQUIS, AACSB and AMBA. to open the £10m Charles Carter building. Centre for Employability Enterprise and Campaign, plans for which are now well This is the 14th Confucius Institute in the The building, named after Lancaster’s Careers and new initiatives such as the advanced. Campaign fundraising will be In October 2010, Professor Cary Cooper UK to be approved by the Office of founding Vice-Chancellor, provides Lancaster Award, which helps students conducted thematically and aims to CBE won the Lord Dearing Lifetime Chinese Language Council International additional academic facilities for the communicate to future employers their prioritise those areas where the University Achievement Award at the Times Higher (Hanban). Education awards ceremony. Professor Management School. Charles Carter’s son skills and accomplishments such as can make a significant contribution to Cooper, who is Distinguished Professor of Peter and his nephew Emeritus Professor A visit to GD Goenka World Institute of voluntary work, we aim to enhance our tackling global challenges, such as food Organisational Psychology and Health at Richard Carter also attended the event. Higher Education by Lancaster’s students’ future career prospects. security and ageing. Philanthropic support Chancellor Sir Christian Bonington in June will also help Lancaster maintain its LUMS, was commended for the range and Lancaster University’s new £10m 2011 marked the expansion of the Looking forward outstanding track record for widening depth of his achievement. His views are contemporary arts institute was formally partnership to include three engineering participation in higher education. sought by governments around the world opened by Professor Geoffrey Crossick, The coalition Government’s decision to degrees. The first ever cohort of students as well as United Nations agencies. Vice Chancellor, University of London in cut teaching grants by 80 per cent, and We are grateful to the many people who to graduate with a Lancaster University March 2011. The building is home to Art, reduce capital by more than 50 per cent have already supported Lancaster and we In July 2011 Lancaster was shortlisted for degree in India were presented to Sir Chris Design, Film, Music and Theatre Studies as was offset by its proposal to allow home value their contribution to the work of the a prestigious THE research prize for at a public lecture and graduation dinner Reputation and Performance well as LIVE@LICA which combines three undergraduate fees to triple. As a result of University. Over the last three years this research into diagnosing arthritis by a in Delhi. these very large changes, the University As part of our strategy to increase the public arts facilities; the Peter Scott support has had the added benefit of leading academic based in our newest will charge £9,000 fees for home/EU policy influence of our research, the Gallery, the Nuffield Theatre and the Our overseas partnerships are an essential helping us secure £1.8m in funding Faculty of Health and Medicine. We undergraduate courses from September University cemented a long-standing International Concert Series. It also hosts a part of our international strategy. In the through the Government’s Matched already contribute significantly to 2012. This plan has been accepted by the relationship with The Work Foundation by major research group Imagination near future, it is our expectation that we Funding Scheme. advancing knowledge and understanding Office for Fair Access (OFFA). This will acquiring the trade of the leading think Lancaster. By achieving the BREEAM will increase international student across a wide variety of disciplines. The allow Lancaster to build on its track record The next few years will be turbulent for the tank in October 2010. Both organisations ‘outstanding’ rating the building sets a new numbers, mainly through our international quality of research in Health and Medicine of success in attracting well qualified sector. The rapidly changing financial and see substantial synergy in their activities, standard for environmental performance in partnerships, while maintaining overall UK will be critical for the university in the future students from a variety of different policy environment presents major and anticipate being able to have the university sector. and EU numbers. This will underpin our as the Faculty develops. backgrounds and to invest further in the challenges to the UK’s higher education increased influence on the change capacity to grow income and engagement All of this was achieved while maintaining student experience. Lancaster will spend and research sectors. Lancaster University agenda, devoting expertise to research Overseas collaborations with important centres of population our financial discipline and focus on £3.9m on measures to widen participation should remain competitive under these and best practice in areas crucial to the Lancaster’s community extends far growth. At the same time our academic institutional sustainability. In a very tough in 2012. This includes a £1.8m bursary and new policies as it offers a great campus UK’s economic recovery and ability beyond the campus with research, staff are drawn to Lancaster from all over year the University grew by 1.5 per cent scholarship fund for new undergraduate experience for undergraduates and post- to thrive. teaching and student exchange the world. Currently about one third of our students studying at Lancaster. graduates with an outstanding academic and returned a 4.8 per cent surplus. The partnerships with leading universities and academics come from over 60 countries This year, three members of staff were Lancaster’s generous and flexible package environment. However the rapid growth of 2011/12 year will be the third difficult year institutions around the world. The network outside Europe. awarded major honours. Professor Bill of financial support aims to attract and international competition means that we in succession, as a consequence of the of overseas teaching partnerships is a key Davies, a pioneering environmental retain the most able students no matter cannot become complacent. backwash from the 2008 economic component of Lancaster’s global outreach The Student Experience biologist was awarded a CBE for services what their circumstances. Students downturn. Our financial prospects should and commitment to internationalisation. Students at Lancaster University are more to Science in the Queen’s birthday coming to Lancaster can be confident that improve in the period 2012-15 as the new Lancaster degree programmes are satisfied with their course than the honours. Work led by Professor Davies they have chosen a top ten university fees regime comes in and our international currently taught in collaboration with local average UK student according to the won Lancaster University a Queen's where the student experience is portfolio expands. institutions in India, Jordan, Kazakhstan, National Student Survey 2011.Overall, Anniversary Prize for Higher and Further outstanding and where making sure that Malaysia and Pakistan. 88 per cent of final year students at Education for the development of water Campus investment our students leave with qualifications Lancaster say they were satisfied with saving techniques for agriculture which Lancaster University’s longstanding links suited to a globally competitive Since 2003 the University has invested their course. We must continue to listen have helped farmers in some of the driest with the People’s Republic of China have environment is a priority. over £400m to transform the campus for carefully to what our students tell us and regions of the world. Paul Wellings Vice-Chancellor Lancaster University Report and Accounts 2011 5

Pro-ChanCellor’s reView lanCaster aPPoints Professor Mark sMith as new ViCe-ChanCellor

We celebrate another year of considerable achievement which has seen Lancaster improve on many measures Distinguished physicist Professor Mark Smith has been appointed Vice-Chancellor of Lancaster University and will including its global reputation. take up the post from January 2012. Professor Smith currently holds the position of Deputy Vice-Chancellor at the University of Warwick.

Lancaster has continued a period of patterns of national and international Professor Smith studied Natural Sciences Committee; member of the Board of the intense campus regeneration and competition have generated discussions at Churchill College, Cambridge before Joint Information Systems Committee improvement. For the coming three years, on creating a deeper collaborative completing a PhD at the University of (JISC) and a member of EPSRC College Council has approved a strong capital partnership with the University of Warwick. After time in industry in Germany since inception, being panel member on expenditure programme. This is a major Liverpool. Both these projects should and with CSIRO in Australia, he was numerous occasions. decision given the current difficult appointed to the University of Kent in reach a conclusion in the 2011/12 He was also a member of the UK financial climate. We continue to exercise 1992 and returned to Warwick as Reader academic year. Government Treasury/Financial Skills a careful control of expenditure and seek in 1998. He held roles within the Physics In April Professor Paul Wellings, who has Council (2006-08) working group looking increased efficiency. Council has Department before being appointed Chair been Vice-Chancellor for more than nine at issues concerning the supply of people monitored the University’s investments to of the Faculty of Science in 2005, Pro- years, announced his resignation to take for the wholesale financial services sector ensure best value for money and delivery Vice-Chancellor for Research in 2007, up the position of Vice-Chancellor at the and was a member of the Russell Group of first class facilities in line with our and subsequently Deputy Vice- University of Wollongong, NSW in January PVCs for Research Group, financial strategy. Over the next five years Chancellor. In his current role, he has lead 2012. Under his leadership Lancaster has the University expects to invest a further responsibility for all academic resourcing His research interests centre on applying achieved many considerable successes. £122m in the estate with health and issues with a budget of c£300m working advanced magnetic resonance I pay tribute to his vision and energy which medicine and other technology areas with 30 Heads of Department. techniques to understand a range of has helped transform the reputation and expected to benefit. problems from materials physics including His external appointments include standing of the University. We wish Paul structural problems from disordered This year the University started a major member of the Board of the UK Research and Annette much success in their move condensed matter, for example glasses piece of work to review a number of its Reserve; member of Ampère Prize back to Australia. and nanocrystals. core administrative processes to In May, Council and Senate established a maximise efficiency and effectiveness. joint committee to search for the This university-wide project aims to University’s 6th Vice-Chancellor. In eliminate unnecessary work and August 2011 Council unanimously duplication, and to clarify administrative approved the appointment of Professor roles and responsibilities. The significant Mark Smith, with effect from 1 January ValediCtion Professor Paul wellings progress of the University over the past 2012. I am confident that he will lead the few years has been underpinned by a University carefully through the rapidly financial discipline which remains central changing financial and policy This is the tenth annual report since I was appointed Vice-Chancellor in 2002. to the delivery of our strategy. This environments to achieve its future discipline will assist Lancaster in facing ambitions. the substantial financial pressures which In that time the University has flourished as focussing on the quality of teaching and are expected around payroll, pensions, a result of our ability to capture external facilities, and placed renewed emphasis on infrastructure and energy costs. resources and of the depth of the employability and internationalisation. This academic, professional and student has been achieved while maintaining the The reputation and ranking of Lancaster is leadership in all parts of the institution. quality of research across the university. now at its highest level and I congratulate I have been blessed to have been We have also responded by reorganising the University’s staff and students whose supported by an outstanding top our departments and increasing the combined efforts have led to another leadership team, a Senate with the capacity breadth of our academic portfolio. All this outstanding year of achievements, Bryan Gray to adapt to change and a Council with an has helped secure our current national and accomplished under difficult economic Pro-Chancellor eye to strategy and quality governance. We international reputation. circumstances. The University has all owe a debt of gratitude to people sitting It has been a great privilege to have been continued to set challenging targets. Our on these committees who have thought Lancaster’s Vice-Chancellor. Thank you for international ambitions continue to deeply about the long-term position of all your support and advice. To Mark Smith, expand and Council has evaluated the Lancaster University. potential to establish a new venture in our 6th Vice-Chancellor, I wish great China. At the same time the changing Higher education policy over the past ten success. Lancaster is still a young years has progressively shifted the cost of university and we can be certain of one teaching from the state towards the thing: The best is yet to come. individual. Lancaster has responded by Lancaster University 7

high notes of the Year

A new laboratory equipped with almost £1m worth of test equipment donated by the US technology company Aeroflex has opened at the School of Computing and Communications. This will enable Lancaster University to play a leading role in the development of the next generation of wireless broadband networks and user equipment, such as smartphones, tablet PCs and future mobile devices.

A Lancaster PhD student in Physics is celebrating winning a major early career award. Former journalist Cherry Canovan was named the Very Early Career Woman Physicist of the Year at a ceremony in London organised by the Institute of Physics and sponsored by Shell.

Picture courtesy of Philip Wade.

The actor Greg Wise has visited the Ruskin Library at Lancaster University in preparation for his role as the Victorian art critic and writer John Ruskin in the forthcoming film “Effie”. He looked through Ruskin’s drawings and papers from the Whitehouse Collection, which is the largest single collection of material about one of the Victorian era’s most influential thinkers. Lancaster University Report and Accounts 2011 9

north west beCoMes largest Charles Carter Centre for Phd training building aluMnus funds new Chair in Marketing

Gian Fulgoni, Executive Chairman of Professor Margaret Hogg, the current ComScore, has made a personal Head of the Department of Marketing, will donation to support the continuing be the first Fulgoni Chair in Marketing. Her success of the Marketing Department specialisation is consumer behaviour at Lancaster University Management research with a specific focus on School. consumption and consumer culture theory. She has a particular interest in An alumnus of the department, Gian’s qualitative studies to understand generous donation of $625k, spread over consumer behaviour across different five years, was prompted by a recent marketplaces, as well as public policy and return trip to Lancaster after 40 years away social marketing links, drawing on from the University. An internationally psychology, sociology, anthropology and recognised leader in the field of market social psychology. research and award-winning entrepreneur, responsible for many innovations in his Gian made his gift by donating publicly profession, Gian achieved career success tradeable shares of stock to Friends of The Founding Chancellor of Lancaster in the USA after studying an MA in Lancaster University in America Inc., a University, HRH Princess Alexandra, Marketing at Lancaster. non-profit organisation which supports formally opened the £10m Charles Lancaster University in the UK. Professor Sue Cox, Professor Paul Wellings and Gian Fulgoni Carter building on 12 April 2011. HRH Princess Alexandra said: “I have vivid memories of Lancaster University going back many years and I’m immensely proud that I have this connection with the University. There’s a wonderful spirit here which is almost tangible on my visits.” traVel Plan The largest centre in England for social for these particular areas to help ensure The 4,000 sq m building, named after the science postgraduate training has been that social sciences continue to founding Vice-Chancellor, provides suCCess established at the universities of contribute to the development of society additional academic facilities for Lancaster, Manchester and Liverpool. and the economy. Lancaster University Management The North West Doctoral Training Centre Students will have access to research School. The success of the University’s Travel (NWDTC) is one of 21 in the UK created by expertise across the three universities, Plan, which has seen a 71 per cent The opening ceremony was also increase in bus use among staff since the Economic and Social Research allowing them to take advantage of a attended by the Chancellor, Sir Christian Council (ESRC), and will provide PhD variety of studies in social sciences, as 2007, has been boosted with the launch Bonington, the Vice-Chancellor, of 12 new Lancaster University-branded students with access to quality research well as in subjects where scientists are Professor Paul Wellings and the Dean of training in social science disciplines. collaborating with colleagues from other Stagecoach buses, which will be named Lancaster University Management after colleges of the University. Lancaster, Manchester and Liverpool are disciplines, such as medicine and the arts. School, Professor Sue Cox, as well as now guaranteed a total of 63 new Charles Carter’s son Peter and his 382 staff have taken advantage of the postgraduate studentships per year to nephew Emeritus Professor Richard subsidised University bus pass this year and a support ongoing research and training at Carter. package of timetable improvements and other doctoral level. This will amount to more benefits will also be delivered later this year. than £15m of investment over the next The latest Staff Travel Survey results five years. show that: A number of studentships will be Studentships will be available across the • Car sharing has increased by 17 per cent full range of social science disciplines, set aside for particular areas to including areas such as geography, help ensure that social sciences • Bus use has increased by 71 per cent continue to contribute to the economics and psychology. The ESRC • Cycling to work has increased by eight has also identified particular areas of study development of society and the per cent that would benefit from further economy. development across the UK, including • Women cycling to work has increased language-based area studies, economics, by 35 per cent and management and business studies. • Business use of train travel has increased A number of studentships will be set aside by 17 per cent Lancaster University Report and Accounts 2011 11

new ConteMPorarY arts institute is ‘outstanding’ lanCaster aCquires leading think tank

remain at its Westminster-based HQ, the University – was launched on 8 September deal to bring it under the ownership of the 2011 with a speech from the Rt Hon Vince University keeps intact its brand and work Cable MP and the backing of leading programmes and secures the businesses and universities. employment of its staff. Intelligently designed and the first The report argues that without major UK higher education building to Both organisations see substantial change the country faces stagnating living achieve the BREEAM ‘outstanding’ synergy in their activities, and anticipate standards, mounting deprivation and a grade for sustainability and In October 2010, the University having increased influence on the change growing structural trade deficit. The environmental performance. acquired the trade and brand of agenda, devoting expertise to research government must work alongside business The Work Foundation, the UK’s leading and best practice in areas crucial to the and finance to invest in the UK’s ability to independent authority on work and UK’s recovery and ability to thrive. take advantage of the enormous its future. opportunities provided by emerging The first report from the Big Innovation technologies, chiefly the digital and low While The Work Foundation will continue Centre – a groundbreaking initiative from carbon economy, health science and to operate as a distinctive entity and The Work Foundation and Lancaster healthcare, cyber-security and virtual reality. Speaking at the launch on 29 March, Professor Crossick said that in a rapidly changing world it was important that the arts, humanities and social sciences did not allow themselves to be perceived as a ‘luxury’ set against science, technology, engineering and medicine (STEM). He said: “We are in a period of rapid and a greener future unsettling change. It is essential that we speak from a single world of knowledge and education, one that does not impose Lancaster City Council’s planning The wind turbine is just one project among false priorities. committee has approved a project to many that the University is implementing “The new LICA building is surely an build a wind turbine on campus, which or planning to implement to cut carbon expression of that – of the importance of will be operational in 2012. emissions. Other projects include the core arts disciplines represented here; replacing the University’s main boilers, Professor Geoffrey Crossick, Vice- The turbine will bring many local benefits, disciplines that speak to the heart of installing a Combined Heat and Power Chancellor of the University of London, including lowering carbon emissions in the social, cultural and business imperatives. (CHP) Unit and plans to install a biomass formally opened Lancaster’s £10m area and providing employment and Disciplines that connect so insistently boiler. contractor opportunities during its contemporary arts building. across the disciplinary range.” construction. The University is also expanding its carbon The innovative, timber-framed building is saving competitions for students, is Energy savings from the project will help home to Art, Design, Film, Music and currently targeting staff in order to enable to ensure that available funds can be Theatre Studies, as well as LIVE@LICA, them to improve energy efficiency in their invested in providing high quality which combines three public arts facilities: work areas and is implementing dozens of education and that the University remains the Peter Scott Gallery, the Nuffield small-scale energy and water saving Intelligently designed and the first UK competitively placed as one of the top Theatre and the International Concert projects to get everyone thinking about higher education building to achieve universities in the UK. the BREEAM ‘outstanding’ grade for Series. the way in which they use energy and how The £5m wind turbine project is backed by sustainability and environmental It also hosts the research group they can contribute to carbon reduction. a loan from the Higher Education Funding performance, Lancaster Institute for ImaginationLancaster, where current work Completion of all these projects over the Council for England’s Transformational the Contemporary Arts (LICA) is a new includes Urban Futures, an international next three years would reduce carbon Fund, which was made available purpose-built facility for teaching, study of urban regeneration and emissions by over 30 per cent, well on the specifically for higher education research and public performance. sustainability, and Design for Flexibility, way to the challenging higher education institutions across England to radically which looks at how design can help health sector target of cutting carbon emissions One of the top three UK research facilities transform their approaches to energy care commissioning. by 43 per cent by 2020. of its kind, the institute brings together consumption and reducing emissions. The researchers from different disciplines to In addition to the ‘Outstanding’ LICA University was one of only three out of the address contemporary problems, from building, to date the University has 37 applicants to gain such support. improving safety in our cities to testing the delivered nine BREEAM ‘excellent’ new boundaries of digital communications. build developments. Professor Geoffrey Crossick Lancaster University Report and Accounts 2011 13 a global uniVersitY

Students from Lancaster University on an international volunteering trip abroad have met the Prime Minister of Malaysia. The visit to Malaysia was organised by the Lancaster University Students’ Union (LUSU) involve – the UK’s biggest and most successful university volunteering unit.

Nigerian writer Bode Asiyanbi has won the 2011 BBC African Performance playwriting competition. Bode is studying on the Lancaster University Distance Learning MA in Creative Writing and he is a recipient of an International Scholarship for 2010-12.

The Division of Health Research, in the Faculty of Health and Medicine, welcomed over 65 PhD students from 15 countries to the start of their course at a week-long Research Summer Academy. They are undertaking either the new Doctorates in Public Health and Organisational Health and Well-Being or the second cohort of the PhD in Palliative Care. Lancaster University Report and Accounts 2011 15

ChanCellor Visits gd goenka world institute MalaYsian students exPerienCe Volunteering to Celebrate graduates’ suCCess and entrePreneurshiP at lanCaster uniVersitY

High fliers from one of Lancaster University’s academic partners – Sunway College, Malaysia – have visited the Lancaster campus. There The new MEng degrees being are now over 1,000 students studying offered at Goenka will be in on the Lancaster/Sunway dual programmes where students study in Mechanical Engineering, Electronic Malaysia and are awarded a degree and Electrical Engineering and from both Sunway and Lancaster. Computer Systems Engineering. Mechanical Engineering at The students visited to gain a glimpse of Lancaster University is rated fifth in campus life and learn about the culture of the UK Guardian league tables. volunteering and entrepreneurship at Lancaster from LUSU involve, Lancaster University’s Student Union’s award- winning volunteering and enterprise wing. The group, which included two Chancellors’ Scholars, visited departments relevant to their studies, worked with local schoolchildren on community projects and met UK students who have volunteered abroad. The Chancellors’ Scholarships are offered in the names of Tan Sri Dato’ Seri Dr Jeffrey Cheah, Foundation Chancellor of Sunway University College, and Sir Christian Bonington, Chancellor of Lancaster University, to commemorate the affiliation between Sunway University College and Lancaster University. Lancaster University’s Chancellor, Sir Lancaster is the first and only university to by Lancaster and students receive a The Scholarships include a funded two- Christian Bonington CBE, visited GD deliver higher educational qualifications at Lancaster University degree. week visit to Lancaster University during Goenka World Institute of Higher the GD Education City in India, a 60-acre Industrial placements will be arranged in the final year of studies. 2011 Scholarship Education (GDGWI) for the first time on site located near Delhi. The Education City the fourth year of study at GD Goenka, students were Lee Ker Ching, who is Friday 3 June 2011. His visit marked the is part of GDGWI, which has been which places great emphasis on studying Accounting and Finance, and expansion of the partnership between established to cater for the rising demand employability. Its Corporate Resource Vanessa Ong, who is studying Psychology. Lancaster University and GDGWI to for quality higher education in India, Centre networks with companies and Students Kisheenjeet Dhillon, Sonia Lim, include three engineering degrees. provide avenues to higher education for organises personal development Aruna Puspalingam and Nicholas Goh also students in an environment conducive to The new MEng degrees being offered in programmes, workshops and campus visited the University. Nicholas Goh in the University organic garden learning and teaching, and to produce the autumn 2011 will be in Mechanical interviews for students in association with business leaders of the future. Lancaster University has the largest Engineering, Electronic and Electrical some of the leading HR professionals participation levels of active student Engineering and Computer Systems Lancaster University’s Management in India. volunteering of any UK university. Last Engineering. Mechanical Engineering at School (LUMS) currently delivers Lancaster University also provides year, 1,200 of the University’s students Lancaster University is rated fifth in the UK undergraduate and postgraduate extensive staff training to GD Goenka took part in volunteering projects to help Guardian league tables. programmes at GD Goenka, including staff, and works closely with them to communities across the region. undergraduate economics and business The first ever cohort of students to provide the curriculum and adapt it to the economics, BBA business studies and a graduate with a Lancaster University needs of students at GD Goenka. In postgraduate diploma in business degree in India were presented to Sir addition, there are opportunities for management. The MSc programmes are Christian at a public lecture and graduation students to visit Lancaster University taught mainly by staff from Lancaster dinner in Delhi that evening, where he gave through Summer School programmes University, while the undergraduate and a public lecture to key industry figures and and exchanges, while some students other courses are taught by staff from GD Indian Lancaster graduates. transfer to Lancaster to study the Goenka. The programmes are validated remaining part of their degrees. Jonny Sasey and Candy Lee Ker Ching Aruna Puspalingram and Anna Lewis Lancaster University Report and Accounts 2011 17

Major new hub for Chinese language Chinese aCadeMY of sCienCes Collaboration and Culture taCkles CruCial issues

Lancaster University is to establish a community, schools and businesses. Confucius Institute in the UK to be approved by the Office of Chinese major new centre for Chinese language Aimed at people in the the north west, it Language Council International (Hanban). and culture on campus, which will will be distinctive through its commitment complement the extensive China to developing programmes which are On 23 March, a signing ceremony for the research and teaching activities adapted to support innovation, Confucius Institute was held in China. across the University. management and sustainable President Li Yuanyuan (SCUT) and Lancaster University has a strong The focus of the new Lancaster University development – areas of expertise in which Professor Paul Wellings, Vice-Chancellor network of teaching and research Confucius Institute will be the both partners excel. The Institute is of Lancaster, signed the agreement over partnerships with leading development of credit-bearing Chinese awarded jointly to Lancaster and its the Confucius Institute on behalf of the universities across China in a language and culture programmes for partner, the prestigious South China two universities. number of fields, including students in all faculties and for staff. It will University of Technology (SCUT) in science partnerships with China also offer programmes for the local Guangzhou, and will be the 14th Agricultural University, Nanjing University, North West Agricultural and Forestry University and the Chinese Academy of Sciences. lanCaster is ‘showing the waY’ with its Pakistan PartnershiP, saYs PM

students in Pakistan the opportunity to Lancaster University is working in The collaboration has also attracted The China Bridge project is funded by study for a highly regarded international partnership with the prestigious interest from Unilever, who are sponsoring Research Councils UK to improve UK degree for a fraction of the cost of Chinese Academy of Sciences (CAS) on three PhDs to be offered to Chinese innovation links with China and help tackle studying in the UK. Students study at the crucial global issues, from food students registered at Lancaster studying environmental issues such as global food Lahore campus and are awarded a degree security to pollution. A memorandum of environmental science. security and water quality. Professor Bill from both institutions. understanding, signed in 2010, pledged Davies of the Lancaster Environment CAS and Lancaster have also set up a to bring Lancaster University’s work in Centre is leading the three-year research Lancaster’s relationship with CIIT started in regular programme of joint research environmental science into closer programme, which will tackle some of 2007, with Masters and PhD students workshops both in China and the UK, partnership with parallel work taking these problems. coming to Lancaster, and now the first addressing issues such as chemicals place in China. joint degrees in Electronic Communication management, water treatment and Lancaster University has a strong network Systems, Business Studies and CAS has over 100 institutes, as well as a environmental health. of teaching and research partnerships with Computing are being delivered in Pakistan, university and graduate school, and leading universities across China in a The partnership is about to employ its first by local academics. Lancaster enjoys a special partnership number of fields, including science shared staff member who will help with CAS in Environmental Science and partnerships with China Agricultural Lancaster aims to offer joint degrees develop links between Lancaster and Technology. University, Nanjing University, North West exclusively with CIIT from all its four CAS, source further joint research income Agricultural and Forestry University and between the countries to strengthen, faculties, including the Faculty of Arts and The partnership was designed to create and support student recruitment. Future Students and staff at Lancaster the Chinese Academy of Sciences. University watched a major foreign especially in business, culture, family and Social Sciences and the School of Health opportunities for collaboration between developments could see the partnership policy speech given by Prime Minister education. and Medicine. Lancaster has responsibility Lancaster and China, including rolled out further to include other research The University's links with China also David Cameron during his one-day visit Mr Cameron said that Lancaster and CIIT to approve the curriculum and the content postgraduate and staff training, summer groups and opportunities for university- include the Lancaster China Management to Islamabad, via a live link-up from were ‘showing the way’ in higher education of the degree programmes and the quality schools, exchange programmes, business affiliated businesses. Centre at LUMS, which aims to develop assurance of the delivery. and enterprise, and joint research tackling new programmes of research and Lancaster’s partner university, with their partnership. The CAS Institute for Geochemistry in global issues ranging from sustainable teaching relevant to the needs of Chinese COMSATS Institute of Information CIIT started awarding degrees in 2000 and Guangzhou, Guangdong province, and the In August 2010, 213 Pakistani agriculture and land use to energy, waste managers. Technology (CIIT) in Pakistan. has grown so that it now has 14,000 CAS Institute for the Urban Environment in undergraduate students started the first and pollution. Speaking from the Islamabad campus on dual Lancaster University/Comsats students across six campuses in Pakistan, Xiamen, Fujian province, have been In 2008, the University launched a three- Tuesday 05 April, in the first speech ever institute of Information Technology (CIIT) with expansion plans to include seven further Already, a new two-year International chosen as initial institutes for collaboration week Summer School at Beijing Foreign given by a British Prime Minister at a degrees delivered in Pakistan. campuses. Based on research citations, CIIT Masters Programme in Environmental with Lancaster, since they already take the Studies University – Lancaster's longest Pakistani university, Mr Cameron used the has been ranked at number six in Pakistan by Science and Technology has been set up, lead role for CAS in Lancaster's UK–China standing partner in China and one of opportunity to call for the existing bond These first ever UK university/public sector the Higher Education Commission (HEFCE enabling students to split their study time Bridge Project. China's leading universities in teaching Pakistani university dual degrees give equivalent) and has alumni working in some between Lancaster University and CAS. foreign languages and cultures. of the top global companies. Lancaster University 19 awards and distinCtions

Professor Cary Cooper CBE has won the Lord Dearing Lifetime Achievement Award at the Times Higher Education awards ceremony in London. Professor Cooper, who is Distinguished Professor of Organisational Psychology and Health at LUMS, was commended for the range and depth of his achievement.

Professor Sylvia Walby, UNESCO Chair in Gender Research and Distinguished Professor of Sociology has been appointed to the Board of The UK National Commission (UKNC) for UNESCO. Professor Walby who was awarded an OBE for services to equal opportunities and diversity, is an Academician of the Academy of Social Sciences and a Fellow of the Royal Society of Arts. She has advised UNESCO, UNDP, UNDAW and UNECE on gender equality issues, especially gender-based violence against women.

A Lancaster University environmental scientist has been appointed on to Defra’s Science Advisory Council (SAC). Professor Louise Heathwaite is Co-Director of the Centre for Sustainable Water Management in the Lancaster Environment Centre. She was one of eight new appointments, including professors Christopher Gilligan, Ian Bateman, Peter Liss, Quintin McKellar, Judith Petts, Peter Smith and Lynda Warren. The appointments will run from 1 August 2011 to 31 July 2014. Lancaster University Report and Accounts 2011 21

honorarY graduates ChanCellor’s Medallists

Chris Smith – Doctor of Letters Terry Hill – Doctor of Laws The Chancellor’s Medal, marking the long service of the former Chancellor, HRH Princess Alexandra, is presented annually to the most Lord Smith of Finsbury is the current Chairman Civil engineer and economist Terry Hill FREng meritorious students who this year are: of the Environment Agency. He was an MP until has established an international reputation, 2005, serving as the first Secretary of State for particularly for his work in the railway industry. Culture, Media and Sport in 1997. In 2000, he As Technical Director of Union Railways Ltd, undergraduate reintroduced free admission to many museums he carried much of the responsibility for the after securing a tax rebate. He was created a life design and construction of the £4bn High peer in 2005 as Baron Smith of Finsbury and Speed Rail Link between the Channel Tunnel sits as an independent peer. A former President and London. of the Ramblers’ Association, he has been the He is currently chair of Arup’s global Chairman of the Advertising Standards transport business after being Chair of the Authority since 2007 and he is also Chairman of Group Management Board from 2004 to the Wordsworth Trust in Cumbria. 2009, leading a firm of more than 10,000 people with clients across the world. Jimmy Armfield – Doctor of Laws He was recently appointed by the UK Jimmy Armfield, who was born in Lancashire, Government to chair the Infrastructure UK Benjamin Pickering Sarah Jane Meehan Angela Loxham played the whole of his career at Blackpool, steering group, which will oversee an BSc Mathematics BA Social Work BA History where he was voted Young Player of the Year investigation into ways of reducing the cost in 1959 and spent a decade as club captain. of major civil engineering projects. He won 43 caps for England between 1959 and 1966 and captained his country 15 times. Sally Davies – Doctor of Science He played in the 1962 World Cup in Chile, Professor Dame Sally Davies DBE is the where he was acclaimed as the “best right Chief Medical Officer for England and back in the world”. He was included in the advises the Government, especially with 1966 World Cup squad, which England won, regard to public health. She is also the head but missed out on the tournament due to of the Medical Civil Service. injury. As Director General of Research and Following an FA campaign to persuade FIFA to Development at the NHS, she established award medals to all the squad members, he the National Institute for Health Research was presented with his medal by the then- with a budget of £1bn. Other new NHS Prime Minister Gordon Brown at Downing initiatives under her leadership include Street in 2009. He was awarded the CBE for experimental medicine and cancer research Nga Kit Chan Andrew Woods Zhifang Zhang Kate Ami De-Vere Smith services to football in the New Year’s Honours facilities and the Biomedical Research BSc Management MPhys Physics BA Accounting and BSc Biological Sciences List. Centres. She has advised the World Health Science Finance Organisation, as well as health organisations Sue Ion – Doctor of Science from the Caribbean to Australia and A prominent figure in the UK nuclear industry, Singapore. Sue Ion chairs the UK’s Fusion Advisory Board. Formerly a Group Director of Technology for Postgraduate BNFL, Dr Ion received an OBE in 2002 and was Lonnie Thompson – Doctor of Science made a Dame in the 2010 New Year’s Honours Lonnie Thompson, Distinguished Professor List. Originally from Cumbria, she attended in the School of Earth Sciences at Ohio State Penwortham High School for Girls near Preston University, has provided valuable evidence and now lives in Leyland. about long-term changes in the Earth’s A Fellow of the Royal Society of Engineering, climate. He was the first scientist to retrieve she is a keen advocate of the nuclear sector ice samples from a tropical ice cap and in the north west and was prominent in both analyse them for information about the the Sizewell projects and the THORP project prehistoric climate. at Sellafield. Her business career with BNFL, His observations of major glacial retreat over firstly at Springfields near Preston, then at the past three decades confirm that glaciers Sellafield and Risley, has greatly benefited around the world are melting and he was a Alfonso Gugino Paul Andrew Webb Kelly Heys Naomi Kruger Frederik Bauknecht the region in terms of its academic research key advisor to Al Gore for his film on climate MSc Human MSc Ecology and MSc Biomedicine MA Creative Writing MSc Management base, employment and international experts. change called An Inconvenient Truth. Computer Interaction the Environment (Distance Learning) (not pictured) Lancaster University Report and Accounts 2011 23

Chairs & first doCtors graduate froM national teaChing fellowshiP readershiPs lanCaster MediCal sChool

PERSONAL CHAIRS Hospitals in the Morecambe Bay area The inaugural graduation was marked with have managed to fill their places for a ceremony attended by senior figures Jonathan Culpepper newly qualified doctors thanks in part from regional health authorities and GP English Language and Literature to the first medical students graduating commissioners. The guest of honour, the An economics lecturer Timothy Dant this year from Lancaster University. Chief Medical Officer for England Professor Dame Sally Davies, was presented with an The graduation of the first group from Lancaster University Sociology Previous years have seen posts left unfilled honorary degree at the ceremony. of students from Lancaster has been awarded a as hospitals struggled to find enough National Teaching Francis Martin Medical School marks a Biological Chemistry doctors just out of medical school and Professor Anne Garden, Dean of Fellowship worth £10,000 ready to embark upon two years of training. Lancaster Medical School, said: “This is a significant success in the new era Graham Mort fantastic milestone not just for these of medical education in the by the Higher Education The graduation of the first group of Creative Writing and Transcultural students and their families but for Morecambe Bay area that benefits Academy. students from Lancaster Medical School Literature Lancaster University and the local health students, doctors and ultimately marks a significant success in the new era service. We look forward to further patients. Peter Sawyer of medical education in the Morecambe developments in medicine at Lancaster Software Systems Engineering Bay area that benefits students, doctors which will be of benefit to the health of the and ultimately patients. A total of 31 communities of Cumbria and North Elena Semino students graduated as doctors, with Lancashire.” Linguistics and Verbal Art several opting to train locally. Kenneth Wilson Evolutionary Ecology

READERSHIPS Plamen Angelov Computational Intelligence Paul Baker Corpus-Based Discourse Studies Vadim Cheianov Theoretical Physics Konstantinos Dimopoulos Particle Cosmology Anne-Marie Fortier Social and Cultural Studies Dr Jill Johnes from Lancaster University experimenting with teaching methods Crispin Halsall Management School is the tenth and assessments to stimulate student Environmental Organic Chemistry member of staff from the University to motivation. have received the award, which is a Carolyn Jackson This inspired her pioneering use of mark of excellence in higher education Social Justice Education electronic teaching resources, such as teaching and support for learning. virtual learning environments (VLEs) and Anupam Mazumdar This year’s 55 award winners were chosen online assessment, about which she has Astro-Particle Physics and Cosmology from over 200 nominations from higher had work published. Throughout her Edward McCann education institutions across England, career she has shown innovation in Theoretical Condensed Matter Physics Northern Ireland and Wales. Each will devising assessments that motivate the receive an award of £10,000, which may students, demonstrate subject Lyudmila Mihaylova be used for Fellows’ professional relevance and lead to the achievement Advanced Signal Processing development in teaching and learning or of desired learning outcomes. Her early Alison Stone aspects of pedagogy. work in this area earned her a Sir Alastair European Philosophy Dr Johnes’ early research into the Pilkington University of Lancaster Teaching Award. James Wild determinants of student achievement and Newly qualified doctor Frances Hunt (pictured left) is returning to her home town of Barrow in Cumbria for her hospital training and Naomi Fleming (pictured right) from Clitheroe is to train non-completion sparked an interest in Space Plasma Physics for two years at the Royal Lancaster Infirmary. Lancaster University Report and Accounts 2011 25

students saY lanCaster honorarY Professorial fellowshiP is best for aCCoMModation for influential aluMna

Lancaster University has won a The first woman to head a Saudi clutch of awards for its investment bank and one of the most accommodation, in the National influential women in the world has been Student Housing Survey 2011. awarded an Honorary Professorial Over 15,000 students from more than Fellowship by Lancaster University. 120 universities and colleges across Distinguished Lancaster alumna, Dr Nahed the UK took part in the survey, which Taher, Founder and CEO of Gulf One measures satisfaction levels in all Investment Bank, was ranked 24th in the types of accommodation. Financial Times’ Women at the Top Report in November 2010. Lancaster retained the title of ‘Best University Halls’ for the second year She was one of just four Arab women to running, an award given to the be recognised by Forbes in its list of the institution demonstrating the highest 100 most influential women in the world levels of student satisfaction among in 2006. residents. Dr Nahed, who has a PhD in Economics This year Lancaster has also been from Lancaster University Management awarded ‘Best Learning Environment’ School, was awarded an Honorary for the Grizedale Townhouses, ‘Best Professorial Fellowship by the Vice- Individual Accommodation’, again for Chancellor, Professor Paul Wellings, to the Grizedale Townhouses, and ‘Best mark the outstanding national and global Booking Experience’. contribution she has made to the world of banking and finance. The University is one of only five institutions to have been given an International Accommodation Quality Mark for achieving over 90 per cent satisfaction rates among international students. enhanCing eMPloYabilitY

Two hundred students received the Lancaster Award this year which prepares students for the job market by ensuring they develop the skills aurora exPlorers employers want, whether through work experience, volunteering or social Scientists from Lancaster University joined colleagues from University College activities. were selected to showcase their London, Imperial College, the University of Administered by the Centre for Enterprise, research before more than ten Leicester and the Rutherford Appleton Employability and Careers, the Award thousand visitors at the flagship Royal Laboratory to staff their exhibit. requires students to complete a skills audit Society Summer Science Exhibition in The exhibit, called Aurora Explorer, is one and job application before appearing London in July 2011. The exhibition of only 22 chosen from almost 100 before a mock job interview panel of an showcases the best in UK research applications. It is based on the scientists’ employer and careers adviser. before the public and VIP guests, research into the Northern Lights, or including senior policymakers. Aurora Borealis, a dazzling display of Dr Jim Wild, Dr Andrew Kavanagh, Dr coloured lights produced at high latitudes Emma Woodfield and PhD student Nathan where electrically charged particles from Case, all from the Department of Physics, space meet the atmosphere. Lauren Dalton-Jarvis and Jenni Day Lancaster University Report and Accounts 2011 27

teChnique to diagnose osteoarthiritis awards for outstanding staff PerforManCe shortlisted for researCh award

Research to develop a new device for GPs that detects osteoarthritis and monitors its progression by listening to the noises emitted by patients’ knees was shortlisted for The Times Higher Research Project of the Year 2011. A team from Lancaster University and UCLan, led by Professor John Goodacre in Lancaster’s Faculty of Health and Medicine and Professor Lik-Kwan Shark, have found that a technique called acoustic emission – routinely used in the engineering industry to detect unsafe buildings and bridges – can also be used to pinpoint joint degeneration. A two-year study involving 50 people showed that the sound waves made by the knees of healthy people were different to those with osteoarthritis of the knee.

For the first time, students have been Politics, Philosophy and Religion where, as Steve Quayle (Engineering) received a asked to nominate an inspirational Undergraduate Director, he was prize for increasing student recruitment in teacher for the new Lancaster Teaching commended for his “exceptional his role as Admissions tutor and Part One Award. The new award, along with the organisational and diplomatic skills”. Director of Studies. annual staff prizes for outstanding A prize also went to the University Pre- performance, were presented by the Louise Briggs (LUMS) was awarded her School Centre, which is rated Outstanding Pro-Chancellor Bryan Gray at a summer prize for delivering outstanding careers and is a regional centre of excellence. support for over 3,000 students based in staff party held at LICA. Professor John Goodacre Lee Horsley (English and Creative Writing) LUMS, working with over 100 graduate Dr Willem Hollmann from the Department was awarded a prize for her work in IT and employers. of Linguistics and English Language was web-related activities over the past presented with the Lancaster Teaching Saskia Vermeylen (LEC) received a prize decade, which have completely Award, which is organised by the for her work as an international legal overhauled the departmental website and University and LUSU. He makes use of a scholar, investigating the land rights of helped to set up e-learning initiatives. Major award reCognises novel way of teaching, involving podcasts, peoples in Africa and leading projects and is so successful that exam marks are Judith Menzel (DELC) received a prize for directed towards improving their livelihood. up across the board. making language learning more interesting nanosCienCe researCh for her students, including organising a Students commented that his enthusiasm writer-in-residence programme, a German encourages them to study more about Professor Vladimir Falko, Head of Innovation and Skills, the scheme aims to film club and departmental litfest. grammatical theory. One said: “He teaches Theoretical Physics at Lancaster attract and retain respected scientists of in a way that makes a topic Claire Waterton, Judith Tsouvalis, Lisa University, has received a Royal outstanding achievement and potential to Dr Willem Hollmann from the Society Wolfson Research Merit Award this country. understandable, fun and inspiring.” Norton, Stephen Maberly, Ian Winfield, Department of Linguistics and Nigel Watson and Ken Bell were all worth £127,000 in recognition of his Several staff received the 2011 staff English Language was presented Ever since the emergence of graphene in awarded prizes for the Understanding and achievements in nanoscience. prizes, including Laura McGowan and 2004, Professor Falko has been a major Acting in Loweswater project, where the with the Lancaster Teaching Award. Kathryn Lambert from the UK Student Professor Falko was chosen for his work player in the field; he and his research team encouraged local people to become He makes use of a novel way of Recruitment and Outreach Office for their on exploring the theory of the electronic team have discovered the unique involved in addressing environmental teaching, involving podcasts, and is hard work on a project to raise student properties of nanostructures and low- electronic properties of bilayer crystals, problems. so successful that exam marks are applications from the islands of Jersey, dimensional materials, such as graphene, predicted unusual transport up across the board. Guernsey and the Isle of Man. David Brown (LUMS) was awarded his prize which has the thickness of only one or characteristics of graphene p-n junctions for his personal contribution and two atoms. and laid the foundations for the Graham Smith (PPS) received a prize for understanding of the transport and optical leadership in connection with the Jointly funded by the Wolfson Foundation his work in creating a new Department of properties of this new material. University’s links with China. and the Department for Business, Lancaster University Report and Accounts 2011 29

honorarY fellowshiPs 2011

Lancaster University has awarded five Honorary Fellowships to people who have given distinguished service to the University or region. The Chancellor, Sir Christian Bonington, presented the fellowships at a dinner attended by HRH Princess Alexandra, Founding Chancellor from 1964 to 2004. The five recipients for 2011 were Gordon Johnson DL, the former head of Lancashire County Council; Pamela Barker DL, former head of Lancaster Girls’ Grammar School; Michael Forster, the University’s first Deputy Secretary and Academic Registrar; Jacqueline Whiteside, who was University Librarian from 1994 to 2009; and Lady Joan Smith, who has supported the University through the establishment of the Professor Sir Roland Smith Chair in Strategic Management and the Chief Executive Lecture Series.

Image, from left: Vice-Chancellor Paul Wellings, Gordon Johnson, Chancellor Sir Christian Bonington, Michael Forster, Pro-Chancellor Bryan Gray, Public Orator Emeritus Oliver Westall, Pamela Barker, Jacqueline Whiteside, HRH Princess Alexandra and Lady Smith. edge hill short storY PriZe sPort at lanCaster is fit for the future

The shortlist included authors such as Michele Roberts, Polly Samson, Helen Professor Graham Mort from Simpson and Tom Vowler. the Department of English Professor Mort is acknowledged as one of and Creative Writing has contemporary verse's most accomplished won the Edge Hill Short practitioners. A specialist in distance Story Prize 2011 for his learning, he led the Lancaster short story collection Touch. University/British Council African writers mentoring scheme, Crossing Borders (2001-2006), followed by the Radiophonics project in Uganda and Nigeria, and has led workshops The new £20m Sports Centre opened Elite performers will have excellent Innovative facilities include computerised across Africa. its doors to staff, students, schools and facilities in which to train and develop while touch pad timing and a ‘floating floor’ to Writing mainly poetry, he has also written the local community, on 1 August 2011. recreational users, both from the vary the depth in the 25-metre eight-lane short fiction and radio drama for BBC University and the local community, will pool. Radio and won the 2007 Bridport Prize for have increased opportunity and choice, his short story The Prince. which will help support the wellbeing of all and promote sports development. Lancaster University 31 adVanCing knowledge through researCh

The largest ever survey of social care users and personal budgets has been carried out by Professor Christopher Hatton from the Centre for Disability Research at Lancaster University and the social care charity In Control. The findings will help councils to re-shape their approach to social care, as informed by local people.

Road and rail users will be able to share information about their journey and update each other about delays thanks to a £1.6m research project at Lancaster University. Our Travel will be available as an app for mobile devices like iPhones, providing up- to-the-minute information so people can decide how and when they will travel.

Lancaster University’s Spectrum Centre for Mental Health Research has been given a significant charitable donation to help improve the lives of people with bipolar disorder and their relatives. The award - made by the Violet and Milo Cripps Charitable Trust in memory of Lord Milo Douglas who had bipolar disorder - has funded the appointment of post doctoral researcher Gerasimos Chatzidamianos (pictured). Lancaster University Report and Accounts 2011 33

PsYChologists inVestigate PoliCe interView teChniques lanCaster to lead £4M ConsortiuM for Lancaster psychologists have The control group, with no reverse order the CreatiVe eConoMY discovered that police techniques used recall, remembered the most accurately, to encourage witnesses of a crime to with an average of 48.7 correct remember the event can lead to more observations about the incident; the mistakes. The research highlights a second group managed only 42.2; while The research highlights a major major issue for the criminal justice the first group, which began with free recall system, since inventions in witness but were then asked to remember in issue for the criminal justice memory are the biggest problem facing reverse order, performed worst, with only system, since inventions in police interviewers. 38.7 correct observations on average. witness memory are the biggest problem facing police Witnesses are usually asked to remember The majority of invented detail arose an event in reverse order, in order to during the part of the interview involving interviewers. prevent them from making up details to reverse order recall in all three groups. make the story run more smoothly. But Not only that, but the second group – this technique, used by police in the UK, asked to remember the robbery in reverse Australia, New Zealand, Norway, Spain and order and then freely – invented six times Sweden, can in fact lead to more as many items as the other two groups. inaccuracies. This is the finding of psychologists Dr Coral Dando and Professor Tom Ormerod, from SCORPIO (Centre for Social and Cognitive Research in the Lancaster University, in partnership with Newcastle University and the Royal Public Interest). Together with colleagues College of Art, has been awarded £4m to lead a regional consortium aimed at from South Bank University and the boosting the UK economy through the growth of the digital and creative industries. University of Portsmouth, they found that instead of improving recall, being asked to tell the story backwards leads to more mistakes. They showed 54 volunteers a short film of a staged mobile phone robbery. The participants were then split into three Lancaster is one of four universities in Institute for the Contemporary Arts. She groups and, two days later, interviewed the UK chosen by the Arts and said: “This Hub is a unique opportunity to about what they remembered from the film Humanities Research Council (AHRC) to bring three of the UK’s top design and asked to describe it twice, but in lead a Knowledge Exchange Hub for research labs and academics from across different ways. the Creative Economy for the next four the arts and humanities together with years. Each will lead consortia that will organisations and business to address the The first group were asked to remember include other universities, creative changing digital landscape. This will result the robbery freely, and then in reverse businesses, arts and culture in the development of new products and order; the second group were told to organisations, and other agencies. services centred around citizen-led remember the robbery in reverse order and then freely; while the control group This Lancaster-led hub called The Creative content, driving regional and national economies.” were told to remember the robbery freely Exchange, will include collaboration with on both occasions. the BBC, Microsoft, MediaCityUK, The UK’s creative economy, which includes FutureEverything, Tate Liverpool, Opera everything from design and gaming to This Hub is a unique opportunity All the interviews were examined for three North, Storey Creative Industries Centre, digital media, broadcasting, theatres and to bring three of the UK’s top memory features: inaccuracies, such as The Sharp Project, Lancaster City Council, libraries, is relative to GDP, probably the design research labs and saying a dog was brown when it was black; NESTA, National Media Museum, largest creative sector in the world. academics from across the arts correct details; and total inventions that Manchester Digital, Arts Council England bore no resemblance to the film. The Hub will respond to the ability of and humanities together with and over 30 small and medium sized everyone to access the digital space and organisations and business to The researchers found that reverse order companies working in the sector, such as create their own content online by linking up address the changing digital recall had a significant effect on the Stardotstar and Mudlark. businesses, organisations and researchers landscape. average number of correct items that were Leader of The Creative Exchange and the with members of the public in order to test remembered and the number of inventions. Chair of the Hub Council is Professor out new ideas and develop new services Rachel Cooper, Chair of the Lancaster and products. Lancaster University Report and Accounts 2011 35

new studY reVeals MePhedrone flaVour Changing ghost as uk drug of ChoiCe PartiCles Could giVe Clue to the origin of Matter

Mephedrone has leapfrogged over regardless of whether the sample group is Dr Fiona Measham of Lancaster every other drug to become the a low drug-using group or a high drug- University’s Department of Applied Social number one drug choice among gay using group. Science said: “In summer 2010 mephedrone had overtaken all other illegal club-goers, often considered to be However, in this new piece of research, drugs to become the number one drug on ‘early adopters’ of drug trends, which was part-funded by the British the South London gay clubbing scene, according to new research. Academy, mephedrone has emerged from higher even than ecstasy. Despite being The study, led by researchers at Lancaster near obscurity to become the most banned, mephedrone's popularity popular illegal drug; 41 per cent of those University and Guy's and St Thomas' NHS continued and there was no shortage of surveyed had taken it in the past month Foundation Trust, showed that, despite supplies and no interest in or evidence of and 27 per cent had either already taken it being banned by the UK government, the displacement to the second generation of on the night of the survey or were planning popularity of mephedrone has surpassed legal highs. to take it later. other drugs, both legal and illegal. “This study highlights the complex Second generation ‘legal highs’ were far relationship between drug policy and drug The results, published in the Journal of less popular with clubbers despite the fact user behaviour. People do not simply stop Substance Use, were taken from three they are still legal in the UK; 11 per cent of using drugs when they become illegal, but surveys of 308 customers of two gay- the sample had taken NRG-1 in the past it does affect the market in terms of price, friendly clubs in South London, in July month and three per cent had taken purity and availability.” 2010. It is the first survey of its kind and/or planned to take it on the night of Lancaster University is one of the UK partners on the T2K neutrino experiment in investigating ‘legal highs’ in clubs in the the studies. Dr Karenza Moore added “Early adopters Japan, which is looking closely at neutrinos for answers to the question: Where did all of drug trends appear to be undeterred by capital to be carried out in the field. The findings are particularly significant the legal classification of emergent the matter in the universe come from? In most surveys, the ranking of most given that gay clubbers are renowned psychoactive substances. Given the global popular drug choices are cannabis ‘early adopters’ of drug trends, as it means nature of the trade in ‘legal highs’, this study followed by cocaine and ecstasy, the results are likely to have implications also has implications for other countries Image courtesy of University of Tokyo for the wider population in the future. where mephedrone use is emerging.”

A six ton particle detector built by technicians, PhD students and mysterious dominance of matter over A previous paper by Dr Fiona Measham and Lancaster Physicists is playing an researchers managed by Dr Laura anti-matter in the universe. Dr Karenza Moore on their mephedrone Kormos. Its main purpose is to identify research has won the European Monitoring important role in an international In related work, a Lancaster researcher, and measure the energy of electrons and Centre for Drugs and Drug Addiction 2011 experiment designed to probe one of Dr Nick Grant, has evaluated the number gamma rays produced by neutrino Scientific Paper award. the biggest mysteries in fundamental of events that would be expected in interactions in target material upstream of physics. Lancaster University is one of Super Kamiokande in the absence of this the module. the UK partners on the T2K neutrino type of neutrino flavour-change, which experiment in Japan which is looking Shortly before the Japanese earthquake contributes to this result. Meanwhile, closely at neutrinos for answers to the struck in 2011 and brought research to a another Lancaster researcher, Dr Alex question - where did all the matter in temporary halt, researchers announced Finch, has provided the T2K software the universe come from? they had seen the first piece of evidence which produces a graphical image of Neutrinos are among the fundamental that it is possible for neutrinos to change neutrino events in the near detector. building blocks of matter. Known as ghost into any one of three different states, or Established in 2004 by Professor Peter particles because they are so difficult to ‘flavours’. Ratoff, the group’s work is managed and observe and interact so weakly with other Two types of oscillations have already co-ordinated by Dr Laura Kormos. matter, they are nevertheless all around us been observed but in its first full period of and passing through our body all the time. T2K, which is led by Japan and partly operation, the T2K experiment has funded by the UK’s Science and Lancaster’s detector was the first of 13 already seen evidence for a new type of Technology Facilities Council, is probing electromagnetic calorimeter modules all oscillation: the appearance of electron In this new piece of research the enigmatic neutrino to unprecedented of which were built in the UK and which neutrinos in a muon neutrino beam. mephedrone has emerged from precision by firing the most intense now form part of the near detector at T2K. near obscurity to become the most The intriguing results indicate a new neutrino beam ever designed from the The module, which consists of layers of property of the enigmatic particle. If east coast of Japan (Tokai), all the way popular illegal drug. plastic scintillator bars interspersed with confirmed, they represent a significant under the country, to a detector Super layers of lead alloy enclosed in a carbon- leap forward in understanding Kamiokande, situated in the Kamioka fibre skin, was built and partially calibrated mountains near Japan’s west coast. Physicists believe these flavour changes at Lancaster by a large team of staff, could possibly account for the Dr Karenza Moore and Dr Fiona Measham Lancaster University Report and Accounts 2011 37

iMProVing oPen aCCess world war two boMbing raids offer to researCh outPuts new CliMate insights

Lancaster has taken steps to increase its research impact and maximise access to its research to society across the globe by making the intellectual output of the University freely available over the Web. EPrints is an Open Access repository which captures and preserves working papers, conference papers, journal articles, and any other digital form of research output. In July 2011, 23,700 Lancaster outputs were listed with 4,600 Climate researchers have turned to the as full text. Allied bombing raids of the Second Lancaster’s is the 4th biggest university World War for a unique opportunity to repository in the UK and 46th in the world study the effect thousands of aircraft had according to the Registry of Open Access on the English climate at a time when Repositories. In the last year Lancaster research outputs were accessed over civilian aviation remained rare. 117,000 times.

The study, published in the While some contrails disappear swiftly, 1945. They selected raids that involved International Journal of Climatology, others form widespread cirrus clouds, over 1,000 aircraft and which were researCh to Make CliMate Change reveals how civilian and military which intercept both the energy coming followed by raid-free days with similar records can help assess the impact of into the planet as sunshine and that weather that might be used for foreCasts More aCCurate modern aviation on the climate today. leaving the planet as infrared heat. comparison. The resulting top 20 raids revealed 11 May 1944 as the best case The research, led by Professor Rob When the USAAF joined the Allied air A new study by Robert Fildes and study. MacKenzie from the Lancaster campaign in 1943 it led to a huge increase Nikolaos Kourentzes at the Lancaster Environment Centre and Professor Roger in the number of planes based in parts of The team found that on the morning of the Centre for Forecasting in LUMS applies Timmis of the Environment Agency, used the UK and provided a strong contrast 11th, 1,444 aircraft took off from airfields the latest thinking on forecasting to the historical data to investigate the levels of between areas with busy skies and areas across south-east England into a clear sky work of climate change scientists. Aircraft Induced Cloudiness (AIC) caused with little or no flight activity. with few clouds. However, the contrails The forthcoming Intergovernmental Panel by the contrails of Allied bombers flying from these aircraft significantly Today, despite a growth in air travel, on Climate Change report will focus more from England to targets in Europe. The suppressed the morning temperature quantifiable data on the impact of AIC on ten and 20 year ahead climate team focused their research on 1943 to increase across those areas that had remains rare. In September 2001 United predictions which have direct and 1945 after the United States Army Air heavy flight traffic. States airspace was closed to commercial important consequences for policies and force (USAAF) joined the air campaign. aircraft following terrorist attacks, “This is tantalising evidence that Second planning in the public and private sector. “Witnesses to the huge bombing presenting scientists with a unique World War bombing raids can be used to There is a need for more accurate formations recall that the sky was turned moment to study the effect of aircraft help us understand processes affecting forecasts which, Fildes and Kourentzes white by aircraft contrails,” said Professor contrails in normally busy sky. Professor contemporary climate,” concluded argue, is best achieved by combining the MacKenzie. “It was apparent to us that the MacKenzie and his colleagues have found Professor MacKenzie. “By looking back at established methods of climate modellers Allied bombing of WW2 represented an an opportunity to study the opposite a time when aviation took place almost with the statistical methods of forecasters. inadvertent environmental experiment on impact of contrails on the usually empty entirely in concentrated batches for the ability of aircraft contrails to affect the skies of the 1940s and have found that it military purposes, it is easier to separate energy coming into and out of the Earth at is indeed possible to see the effects of the aircraft-induced factors from all the that location.” AIC in surface weather observations, but other things that affect climate.” Aircraft can affect cloudiness by creating that the signal is weak. contrails, formed when the hot, aerosol- To distinguish the effect of aviation more laden air from their engines mixes with the clearly, the team focused on larger raids cold air of the upper troposphere. from the many flown between 1943 and Professor Robert Fildes Lancaster University Report and Accounts 2011 39

three-Year CYCling and walking studY dePriVation keY to laCk of VaCCinations finds iMage is an obstaCle in Young Children

Britain lags behind its European Research carried out by Lancaster counterparts when it comes to hopping on University and NHS Central Lancashire the bike for short routine journeys. For has shown that deprivation is a critical instance, in Sweden and Finland, nine per factor in understanding why some cent of all trips are by bicycle; in Germany children arrive at school without having it is ten per cent; in Denmark 18 per cent; completed all their routine vaccinations. and in the Netherlands 26 per cent; while Health experts in central Lancashire are in the UK, cycling only accounts for 1.5 per concerned that not enough children have cent of all journeys. Efforts to encourage received their pre-school booster more of us to get on our bikes, including vaccination and two doses of MMR by the investment of £150m in promoting cycling time they reach their fifth birthday, leaving in British towns and cities since 2005, them at risk of complications from have so far had limited success. diseases like measles mumps and rubella, Most of the investment in cycling has which can leave children blind, deaf and been focused on physical infrastructure even lead to death. and training schemes, but until now there The findings have now been published in has been little understanding of how Professor Penn said: “Deprivation, not had received no information on childhood the report Factors Determining the Uptake ethnicity or religious affiliation, is the main vaccines were significantly less likely to people make decisions about everyday of Childhood Vaccinations: A Comparative travel or why they respond poorly to factor determining childhood vaccination have fully immunised children Analysis of the Parents of Fully and uptake. The research illustrates the value initiatives that have been undertaken. • Complaints that waiting areas in surgeries Partially Immunised Children in Preston, by of the strong partnership between NHS and clinics were not ‘acceptable’, with Lancaster University’s Professor Colin Professor Roger Penn of Lancaster Central Lancashire and Lancaster lack of toys and long waiting times Pooley, who led the study, said: “Our study University. University in understanding and evaluating set out to discover not only the reasons The research, involving a survey of 242 important public health issues and the • Many respondents would have liked the why people were persuaded to walk or parents of young children in Preston, results offer clear guidance on how to choice of having their child immunised at cycle but, perhaps more importantly, the explored why some children failed to solve the problem.” home reasons why people do not do these complete the childhood immunisation • Very few respondents referred things. Many people interviewed as part of Key findings include: programme and what factors affected the specifically to the MMR scare, but more our study expressed a desire to walk or • Those living in the poorest areas of likelihood of their completion of the full than one-fifth expressed concerns about cycle but were not doing so. Clearly Preston were significantly more likely to Our desire to fit in could be hampering Lancaster from a cross-section of society, course of immunisations. Of those possible side effects of vaccines something was stopping them from have partially immunised children Britain’s chances of shifting to more found that while attitudes to walking and surveyed, 118 were parents of partially making that choice .” Ethnicity, religion, language and country of cycling are mostly positive or neutral, immunised children and 124 were parents • Parents who had found making an sustainable forms of travel. origin were not significant factors. many people who would like to engage in of fully immunised children. appointment difficult and parents who A three-year Engineering and Physical more active travel fail to do so due to a Sciences Research Council-funded study combination of factors. has found that, as well as the usual concerns of squeezing walking or cycling The three most common obstacles to into complex household routines, walking and cycling over a short journey negotiating traffic and the British weather, were: high end CoMPuting a significant proportion of people are put • Safety when walking or cycling off from ditching the car because it is not High End Computing (HEC) is a hugely only a few UK institutions to successfully biological and genetic diversity as part of a • The difficulty of fitting walking and cycling seen as ‘normal’. powerful technique which is already key run an integrated service capable of UN study. into complex household routines to much of the high profile research at handling both high-throughput computing The research by the universities of (especially with young children) The HEC Cluster includes programs which and high-performance computing. This Lancaster, Leeds and Oxford Brookes also The research suggests that if we Lancaster University. might run for weeks at a time, require up to • The perception that walking and cycling creates a powerful facility which is one of concluded that if we are serious about are serious about tempting more 96 GB of memory, or access to datasets are in some ways abnormal things to do This technique uses leading-edge IT the leading university sites in the LHC tempting more people out of their cars, people out of their cars, then we of hundreds of TB in size. The service resources and tools to pursue research, Computing Grid, a worldwide distribution then we need to listen to the majority who A number of people interviewed as part of need to listen to the majority who combines the previously separately including computer simulation and network designed by CERN to handle the don’t already choose greener modes of the study said they felt walking or cycling don’t already choose greener supported services of local high modelling, manipulating and storing large massive amounts of data produced by the transport rather than the minority who do. as a form of transport was seen as performance computing (HEC) users, the modes of transport. amounts of data, and many other methods Large Hadron Collider (LHC). The HEC is ‘unusual’ or even ‘weird’ and cited image local Particle Physics research group The study, based on 1,417 questionnaires, to solve research problems that would being used in many areas, for instance to problems such as arriving hot and sweaty (GridPP) and Lancaster's contribution to 80 semi-structured interviews and 20 otherwise be impossible. investigate the properties of the new for meetings, squashed cycle helmet hair the National Grid Initiative and the household ethnographies collected in material graphene and for work on Leeds, Leicester, Worcester and and even ‘feeling like a second class Lancaster’s High End Computing Cluster is European Grid Initiative. citizen’ as reasons they preferred to drive. unusual because the University is one of Lancaster University Report and Accounts 2011 41

uniVersitY software goes global researCh breakthrough oPens door to non-inVasiVe endoMetriosis test

Patented software developed by Other applications based on the research technology opens a whole new exciting Lancaster University for use in include self-learning virtual or ‘smart’ horizon in the petrochemical industry.” sensors in industry, which are able to self- industry has been licensed by the US Dr Angelov has also worked with one of calibrate and so reduce maintenance multinational Ford. The software – the world’s largest chemical companies, costs. An oil refinery in Tenerife, owned by called EST, or Evolving Systems the Dow Chemical Company in Texas, to the Spanish industrial group CEPSA, is Toolbox – is capable of self-learning develop self-learning ‘smart’ sensors, using these self-learning ‘smart’ sensors and so requires minimal human which are used to reduce shutdown and to estimate the yield and quality of intervention. It is being used to improve product quality. monitor the ‘health’ of vehicles and different oil products in real time. Dr Arthur Kordon, Data Mining and machines that produce vehicles, as Dr Jose Juan Macias Hernandez, the Modelling Leader at the Advanced well as to monitor reactions such as Process Engineering Department Analytics Group of the Dow Chemical how drivers press pedals. Manager of CEPSA, said the application of Company, said that the total impact of The technique is based on the latest this technology in just one area – such as ‘smart’ sensors had saved his company academic research and has applications atmospheric distillation – could mean an estimated $30m per year. in everything from transport and logistics savings of tens of thousands of Euros per Researchers at Lancaster University to defence and the internet. It was year. Further applications which are at the have developed a potential method to developed by a team of students and testing stage include helping medical “It is of vital importance for the CEPSA diagnose endometriosis without the need researchers led by Dr Plamen Angelov, doctors in dosing Warfarin drugs to refinery to know in advance the yield and Reader in Computational Intelligence at patients with DVT (deep vein thrombosis) for invasive surgery. quality of products that will be obtained the School of Computing and and classification of spectroscopy data from certain input streams. The Communications at InfoLab21, who is an for biomarker identification, jointly with application and development of this expert on evolving intelligence systems. Dr Frank Martin of the Lancaster Environment Centre and funded by Professor Martin and his team – which express a spectral signature distinct from Unilever. The Lancaster University spinout Endometriosis – the growth of company Entelsensys Ltd is developing endometrial tissue outside the uterus – included Professor Pierre L Martin-Hirsch, that of the non-endometriotic uterus. This consultant gynaeoncologist at Lancashire indicates that IR spectroscopy, coupled sensor systems based on applications of affects about ten per cent of young this technology in other industrial sectors. women and can be associated with Teaching Hospitals NHS Trust – analysed with objective computational analysis, may severe abdominal pain, infertility and uterine samples from hysterectomy provide a non-invasive diagnostic tool for In recognition of the growing importance even cancer. patients; seven women without endometriosis. of this research area, the IEEE – the world- endometriosis compared to eight who leading organisation in this area – has Diagnosis of endometriosis is difficult, with “These spectral fingerprint signatures can were diagnosed with the condition. established a Technical Committee on no effective screening test currently then be processed using computational Evolving Intelligent Systems and available. For women who are thought to They compared endometrial tissue algorithms that allow one to quickly organises annual conferences chaired by have the condition, invasive laparoscopic growing outside the uterus with the visualise the data to determine which Dr Angelov, who is also editor-in-chief of surgery remains the only standard endometrial tissue within the uterus using spectra are similar or dissimilar to each the journal Evolving Systems published by accurate diagnostic investigation. IR spectroscopy to give a biochemical cell other. Consequently, one can determine ‘fingerprint’ for each sample. They also that the normal tissue IR spectra and Springer. Infrared (IR) spectroscopy has become compared the samples to tissue from those outside this range may be recognised as a potential clinical endometriosis-free women. determined as atypical.” diagnostic or screening tool for the disease, but researchers needed to find The team found that endometriotic tissue Professor Martin hopes that the technique out if the tissue in women affected by possesses a unique spectral signature can be used on samples that can be endometriosis had a sufficiently distinctive and, more importantly, that there was a obtained directly from patients in a non- biochemical cell ‘fingerprint’ from the marked difference between endometrial invasive way. “Screening cytology from the derived IR spectra in order for the tissue from the uterus of patients with cervix is already well established. It is also Other applications based on the technology to work as a reliable test. endometriosis and tissue taken from possible to obtain cytology in a similar research include self-learning those without it. fashion from the uterus, or even small virtual or ‘smart’ sensors in Professor Francis Martin from Lancaster biopsies,” he said. industry, which are able to self University and colleagues used IR The results of the study funded by the spectroscopy together with computational Rosemere Cancer Foundation have been He added that cases of endometrial calibrate and so reduce analysis to analyse the difference between published in The Royal Society of cancer were on the rise and this approach maintenance costs. uterine tissues affected by endometriosis Chemistry journal, Analyst (2011). could also be used as a cancer screening tool. compared to normal tissue in the uterus. Professor Martin said: “We found that the uterus of women with endometriosis

Dr Plamen Angelov Lancaster University 43 keY faCts and figures

Lancaster has retained its status as the third safest city for student-related crimes in a ranking published July 2011 by the authoritative and independent Complete University Guide. Compiled from official police data, the ranking gives the clearest picture possible of the crime rates in the 25 towns and cities outside London with two or more universities. Lancaster is just behind Canterbury and Bath as cities with the lowest cumulative crime rates in England and Wales.

Students at Lancaster University are more satisfied with their course than the average UK student according to the National Student Survey 2011. Overall, 88 per cent of final year students at Lancaster say they were satisfied with their course compared with a UK average of 83 per cent.

Global recognition of Lancaster University’s quality comes with a ranking of 131 in The Times Higher Education World Rankings published in October 2011. In international tables, Lancaster consistently ranks in the top one per cent of universities. The THE World Rankings also place Lancaster 44th in the world for arts and humanities subjects and 45th in the world for its international outlook, which looks at the proportion of overseas students and staff as well as the proportion of research papers published with international co-authors. Lancaster University Report and Accounts 2011 45

keY faCts AND FIGURES

Lancaster University now has just under Lancaster is one of only six collegiate 1 2,500 staff, with over 12,000 students universities in the country. Since the 9 4 0 7 (headcount) based at its UK campus and University’s inception the collegiate 0 nearly 2,000 based overseas. We now system has helped to forge a strong have nearly 100,000 former students and sense of identity and loyalty, and we have ongoing relationships with over continues to be a distinctive feature of TOTAL STAFF 65,000 of these individuals. student life at Lancaster. POPULATION STAFF STAFF POPULATION BY UK/NON-UK 1445 POPULATION 1540 2305 BY ETHNICITY 2575 NATIONALITY BY GENDER EXCLUDING EXCLUDING UNKNOWNS UNKNOWNS

1 7

3 6

9 0 1

8 82 STUDENT STUDENT STUDENT 189 POPULATION POPULATION 4841 POPULATION 5651 8030 9732 Female Staff with UK nationality White BY LEVEL OF FULL-TIME/ BY GENDER Male Staff with Non-UK nationality Non-white STUDY PART-TIME

enVironMental PerforManCe 2010-2011 Female Postgraduate research students Total full-time students Male Postgraduate taught students Total part-time students First degree undergraduate Other undergraduate Lancaster University is fully committed to improving its environmental performance and sustainability. A wide range of strategies and projects are being implemented in order to achieve this. 4

8 3

0 6

1 ENERGY, UTILITY & CARBON WASTE & RECYCLING 1 MANAGEMENT 57 • Annual waste to landfill reduced to 3 31 56 • Annual electricity consumption reduced 870 tonnes in 2010-11. by 2.1 per cent from 34,261MWh in STUDENT STUDENT STAFF • Recycling and reuse rate increased 2009-10 to 33,538MWh in 2010-11. POPULATION 8118 POPULATION 4264 1440 POPULATION 1545 to 53 per cent. • Annual gas and oil consumption reduced BY DOMICILE BY FACULTY BY CATEGORY SUSTAINABLE TRAVEL by 2.4 per cent from 50,530MWh to 49,319MWh. • Staff commuting in single occupancy vehicles reduced to 46 per cent by • Carbon emissions from electricity, gas 2011. 6 and oil reduced by 3.7 per cent from 3 6 28,765tCO2e to 27,834tCO2e. • A significant decrease in staff 2 commuting in single occupancy vehicles • Water consumption reduced by 6.6 per from 56 per cent in 2007 to 46 per cent cent in 2010-2011 compared to in 2010. UK domicile students Faculty of Arts and Social Sciences Academic staff 2009-10. EU (Non-UK) domicile students Faculty of Science and Technology Support staff • A 50 per cent increase in staff • High efficiency central boilers and a Non-EU domicile students Management School commuting by bus and significant combined heat and power engine increases in staff cycle commuting and Faculty of Health and Medicine installed in the new Energy Centre. car sharing. • Planning permission obtained for Data is taken from the University's 2009/10 return to the Higher Education Statistics Agency. Student numbers are expressed as full-time equivalents. installation of a 2MW wind turbine. Lancaster University 47 finanCial stateMents

The Minister of State for Energy and Climate Change Charles Hendry has said that Lancaster University is leading the way internationally in energy research. He was speaking at the official launch of Lancaster University’s New Centre for Energy Research, which brings together expertise in everything from nuclear and renewable energy to transport policy.

Lancaster University is singled out for its high levels of graduate employment in The Sunday Times University Guide 2012. The Guide ranks Lancaster the top university in the North West, saying that almost three quarters of students get graduate-level jobs.

The first report from the Big Innovation Centre - a groundbreaking initiative from The Work Foundation and Lancaster University – argues that without major change the country faces a decade of stagnation. The report says that the Government must act now to adopt a strategy of collaborative, entrepreneurial investment in those areas likely to bring the greatest dividends in growth and jobs. LancasterUniversity ReportandAccounts2011 49

Operating and financial review fOr the year ended 31 July 2011

Scope of the financial statements FRS 17 adjustment consequentialhighernominalvalueofthenewFacility(£14.5m) Thefinancialstatements,presentedtotheUniversityCouncil,havebeenpreparedonaconsolidatedbasisandincludetheresultsof Assetoutinnote28,theLancashireCountyPensionfundisa andthebreakfeeforterminatingthemonolineinsurerwrapon LancasterUniversityanditssubsidiarycompanies.Detailsofthegrouparelistedwithinnote32.Theresultsshowanotherstrong definedbenefitschemeandassetsandliabilitiesarere- thebondandotherprofessionalfees(£1.4m). underlyingperformancefortheUniversityinthecontextofanincreasinglyvolatileexternalenvironment. measuredeachyearbyitsactuaries.Thepensionscheme surplus(totheextentthatitisrecoverable)ordeficitis Analysis of results for the year Results for the year recognisedinfull.Themovementintheschemesurplusordeficit Aswellasthehighlightsgivenaboveanotherkeymeasure Theunderlyingfinancialperformancein2010/11reflectsanotherstrongyearfortheUniversity.Againstthebackgroundofincreasing issplitbetweenoperatingchargesandfinanceitemswhichare monitoredistherateofincomegrowth.In2010/11,headline turbulenceintheworldeconomy,Lancastercontinuedtodeliveragainstitsfinancialstrategy. bothrecognisedintheincomeandexpenditureaccountand turnovergrowthslowedto1.5%althoughthisheadlinefigure actuarialgainsandlosseswhicharerecordedinthestatementof masksanumberofsignificantchanges. Thereportedhistoricalcostsurplusis£6.8m.However,thisincludesachargeof£1.5minrespectoftheaccountingtreatmentforFRS totalrecognisedgainsandlosses. 17andendowmentincomeof£388k.Inordertocalculatetheunderlyingsurplusinawaythatisconsistentwithourfinancialstrategy, OneoftheUniversity’skeystrategicaimshasbeentodevelop strongrelationshipswithselectedstrategicoverseasinstitutions eachyearweadjustforthesechangesasshowninthetablebelow.Theunderlyingsurplusfortheyearwas£8.7m(4.8%ofturnover), FRS 17 impact (2010:£7.9m,4.4%ofturnover)abovethetargetof4%andmovingtowardsourlong-termgoalofasurplusinthe5%-6%range. alongsideopenmarketrecruitment.Onebenefitofthisstrategy 2010/11 2009/10 hasbeentoensurethattheUniversity’sincomesourcesarewell- £000 £000 diversifiedandunconstrainedbydomesticfundingandstudent Calculation of 2010/11 adjusted surplus consistent with numberissues.Theserelationshipscontributedsubstantiallyto Finance Strategy: Other key highlights are as follows: Charge to the income and thefinancialperformancein2010/11,withthemostsignificantof 2010/11 2009/10 • Thecontinuedimprovementinunderlyingearningsas expenditure account thesebeingSunwayUniversityCollegeinMalaysia,GDGoenka WorldInstituteinIndiaandCOMSATSinPakistan.Domestically, £000 £000 measuredbyEarningsBeforeInterest,Taxation, DepreciationandAmortisation(EBITDA)risingto£21.0m Staffcosts 718 765 continuedsuccessoftheLancasterUniversityInternational Income 180,467 ) 177,886 ) (£18.6min2009/10). StudyCentrebasedontheLancastercampusrunbyStudy GroupInternationalhasprovidedastreamofstudentsconverting Expenditure (174,353) (173,343) • Thetightmanagementofpayrollcostssothatpayrollasa Interestpayableand 818 1,687 (beforerefinancingexceptional) toundergraduatecoursesatLancasteroncompletionoftheir proportionoftotalexpenditurefellbackto57.2%, financecosts foundationyear.Inaggregate,overseasfeeincomeincreasedby Surplus for the year before 6,114 ) 4,543 ) comfortablywithinourupper60%threshold. ca.20%.Alongsidethis,strongdomesticdemandalsoledto refinancing exceptional after • Ourdebttoincomeratioat40%remainswithinourtarget Total charge 1,536 2,452 increasesinhome/euundergraduateincomeofca.7%.With depreciation of assets at rangefollowingthe2009refinancingexercisedescribed unprecedenteddemandfor2011entry,thesefactorswillprovide valuation below.Priortothisourratiowasconsiderablybelowmanyof resilienceforLancasterthroughthecomingperiod. Credit to the statement 3,609 5,786 our1994Grouppeers,indicatingthatwewerenot InOctober2010,theUniversityacquiredthetradeandbrandof Debenturerefinancingcosts -) (15,876) of total recognised gains adequatelyleveragingourhighstanding.Ourinternaltarget TheWorkFoundation,apolicythink-tankbasedinStJames’s and losses Differencebetweenhistorical 666 ) 666 ) longtermthresholdis50%andourforecastsshowus ParkinLondon.ThesynergiesforLancasterinmanyareasof costdepreciationchargeand movingclosetothatpositionin2011/12beforeedging researcharesignificantacrosstheinstitution;theorganisation’s therevalueddepreciationcharge downinfutureyears.Thiswillclearlybedependentonthe Prior year exceptional item - refinancing high-qualityreputationandprovenimpactonpolicy-making levelofincomegrowthachievableacrosstheforecast togetherwithitslocationcombinedtocreateaninteresting Asreportedindetaillastyear,amajorrefinancingprojectwas Historical cost surplus/(deficit) 6,780 ) (10,667) period.Morediscussionofthisisgivenbelow. opportunityfortheUniversity.Onacquisitiontheactivitieswere concludedinSeptember2009whichaddressedLancaster’s transferredintoadormantcompanyLandecLtdwhilstformal AdditionalFRS17pensioncost 1,536 ) 2,452 ) legacyborrowingsandsecuredcreditforourinvestmentplans. Credit rating structuresmoreappropriatetoitsongoingcharitableobjectsare ThisprojecthasbroughttheUniversityaflexibleandaffordable putinplace.Thecompanymadealossinthistransitionalyearin- Incomefromendowments 388 ) 214 ) OurcreditratingfromStandardandPoor’swassubjectedto debtportfolio,withnopropertysecurityandfutureupside linewiththeacquisitionbusinesscase,includingallintegration annualreviewinMarch2011.Againstabackdropof refinancingpotential.Thiswillbeparticularlybeneficialatatime Debenturerefinancingcosts -) 15,876 ) andrestructuringsupport,focussedonathree-yearpay-back. considerableuncertaintyforgovernmentfundingstreams,the whencreditavailabilityislikelytoremainunderpressure. plannedchangestothehomeundergraduatetuitionfeeregime InFebruary2011,themostsignificantactivitywithinLancaster “Adjusted Surplus” consistent 8,704 ) 7,875 ) TheUniversityhadconsidereditscombinedobjectivesand andgeneraleconomicvolatility,themaintenanceofourrating UniversityNetworkServicesLimitedrelatingtothecontractfor with financial strategy soughttosecureupto£80mofnewborrowingfacilitiesinorder at‘A+withastableoutlook’wasconsideredagoodoutcome. CumbriaandLancashireEducationOn-Linetransferredto toredeemitsexistingbond(ca.£45m)andtosupporttheCapital TheaccompanyingreportalsoreflectedLancaster’sstrong LancashireCountyCouncil.Amajorityofstafftransferredunder Programme(ca.£35m).Aseriesofobjectivesandparameters academic,strategicandfinancialperformancetogetherwith TUPEandthecompanyisbeingtakenforwardwithare-focussed wereestablishedbytheUniversityCounciland£80moffacilities progressmadewithinternationalinitiativesandestate portfolio.Theconsolidatedaccountsfor2010/11reflectincome withtheRoyalBankofScotlandwereputinplacetosupportboth developments. at£3.1m(prioryear£6.6m)andthecompanyreportedalossof theredemptionofthebondonafixedratebasisandtoprovidea £355k(prioryearprofit£448k). variableraterevolvingcreditfacilityforcapitalinvestment.HEFCE consentforthetransactionwassoughtandgrantedin During2010/11theUniversitycontinuedtobenefitfrom accordancewiththeHEFCEfinancialmemorandum.The improvedrecoverylevelsonresearchgrantactivities.However exceptionalchargeof£15.9mwasfullyinlinewithexpectations thelevelofgrossincomedeclinedca.5%,reflectingthe reflectingthestandardpenaltypaymenttobondholdersforearly increasedtighteningofbudgetsfortheResearchCouncilsand redemption(achievedatanegotiateddiscount)andthe Governmentdepartments.Theimpactofthecurrentfunding LancasterUniversity ReportandAccounts2011 51

environmentonopportunitiesanddataoncurrentapplication Fig 2: Year-on-year changes: All income sources Fig 4: Year-on-year changes: Research Grants Strategic Plan Performance Indicators levels,successratesandawardlevelsarebeingclosely Thefollowingchartsillustratekeyperformanceindicators monitored. 60,000 monitoredbytheUniversityonacomparablebasisoverafive Anumberofchartsareshownbelowtoprovideanalysisofthe 18,000 yearperiodandreflectthemeasuresidentifiedintheUniversity’s 2010/11resultandfurthercomparisonwiththeprioryear. 50,000 16,000 StrategicPlan: 14,000 Fig 1: Income sources 2010/11 40,000 Fig 6: Underlying Surplus 12,000 0 0 0 0

0 5 ’ 0 10,000

’ 30,000 £ £ Endowment income & 8,000 interest receivable 20,000 6,000 4 1% 4,000 (2009/10 1%) 10,000 2,000 % 3 0 0 Funding Tuition fees Research Other Endowment Research UK central UK European Other 2 Council & support grants & operating income & councils & government, industry Union grants grants contracts income interest charities local & health commerce receivable authorities Funding Council 1 grants* 2009/10 50,825 49,050 28,223 48,670 1,118 2009/10 16,359 5,707 1,419 4,325 413 2010/11 51,602 54,861 26,790 45,522 1,692 2010/11 15,355 5,019 1,645 3,884 887 29% 0 Other operating (2009/10 28%) 2006/07 2007/08 2008/09 2009/10 2010/11 income % 3.8 4.9 4.2 4.4 4.8 25% Fig 3: Year-on-year changes: Tuition Fees Fig 5: Overall expenditure (2009/10 27%) 30,000 120,000 TheUniversityhasanexcellenttrackrecordofmeetingits financialsurplusobjectivesofaminimum4%andhasdonesoin 14ofthepast15years(the2006/07yearshownabovewas Tuition fees & 25,000 100,000 exceptionallyaffectedbythecombinationofanewnationalpay support grants Research grants frameworkandhighutilityprices).Ourpolicyaspartofthebudget 30% 20,000 80,000 & contracts settingprocessistoprovidemorein-yearflexibilityandresilience 0 (2009/10 28%) 0 0 15% 0 todealwithunexpectedfluctuationsandvolatilities.Thiswill 0 0 ’ ’ 15,000 60,000 £ (2009/10 16%) £ remainakeychallengeovertheforecastperiodaswelookto moveoursurplusupconsistentlytothe5%to6%range. 10,000 40,000 Fig 7: Cash Generation 5,000 20,000 20 WithinFundingCouncilgrants,theHEFCEgrantsforteachingand 0 0 researchwere£25.4m(14%oftotalincome)and£18.2m(10%oftotal Home/EU fees Overseas fees Part-time Research Staff costs Depreciation Other Interest 18 income)respectively. for full-time for full-time fees training support continuing & impairment operating payable 16 students students grants expenses 14 2009/10 26,525 20,109 1,421 995 2009/10 99,854 9,742 57,188 3,270 £m 12 2010/11 28,273 24,057 1,551 980 2010/11 98,820 11,270 58,562 3,279 10 Overallexpenditureincreasedslightlyfrom£170.1mto£171.9m 8 withtheyear-on-yearchangeasabove.Figuresarepresented 6 excludingtheFRS17,restructuringcostsandprioryear 4 debenturerefinancingadjustment. 2 0 2006/07 2007/08 2008/09 2009/10 2010/11 £m 10.3 11.5 11.3 17.1 16.0 LancasterUniversity ReportandAccounts2011 53

Strategic plan perfOrmance indicatOrS

TheFinancialStrategyunderpinstheneedforsustainable Wecloselymonitorpayrollasaproportionoftotalexpenditureas Fig 11: Gross Debt to Income Treasury, borrowings and investments investmentintheestateandinfrastructureandwhilstwehave oneofourkeyindicators.In2010/11,thisfellfurtherbackfrom Netdebtincreasedby£19.3mduringtheyearasa previouslyusedoperatingcashflowasaproxy,itisaffectedby ourupper60%thresholdreflectinginternalactionstakenonlocal 50 consequenceoftheplannedexpenditureonthecapital restructuringsandrecruitmentrestrictionsfornon-academic workingcapitalmovements.Cashflowfromoperatingactivities programme.Themovementinfundsissummarisedbelow: fellbackslightlyto£16.0mfrom£17.1mfollowingastep-change staff.Howeverthishascontinuedtomeanthatwehavehadto improvementintheprioryear.Thisdecreasewasprimarilydueto scaleourplansforadditionalinvestmentaccordingly,withsome 40 thechangeinthemovementofprovisions,whereamounts lostopportunityfordrivingourgrowthplansforwardattherate wewouldlike.Furtheranalysisofstaffcostincreasesisprovided 31 July 2011 31 July 2010 Change providedin2009/10werelargelypaidduring2010/11. % 30 inthefollowingchart: £000 £000 £000 Fig 8: EBITDA Fig 10: Staff cost changes 20 Currentasset 800 ) 785 ) 15 25,000 investments 10.0 10 Cash-in-hand 42,305 ) 46,489 ) (4,184) 20,000 8.0 Endowmentasset 4,668 ) 3,871 ) 797 0 investments 15,000 2006/07 2007/08 2008/09 2009/10 2010/11

0 6.0 Bankloans (72,185) (56,226) (15,959) 0

0 % % 25.5 22.9 21.7 31.6 40.0 ’ £ Net Debt (24,412) (5,081) (19,331) 10,000 4.0 In2009/10,grossdebttoincomestartedtomoveupwardsfrom itspreviouslowlevel,reflectingtherefinancingprojectexplained 5,000 2.0 above.TheCouncil,inapprovingtheFinanceStrategy,had Thenetcashinflowfromoperatingactivitiesfortheyearwas confirmedtheUniversity’sneedtomakebestuseofthestrength £16.0m(2010:£17.1mbeforeexceptionaldebenture refinancingcosts).Interestpaidtotalled£3.3m(2010:£2.7m) 0 ofourcreditratingtosupportthereputationandresourcebase 2006/07 2007/08 2008/09 2009/10 2010/11 0.0 oftheUniversity.Certainfinancialparameterswereagreed andinterestreceivedwas£0.4m(2010:£1.5m).Throughoutthe yeartheUniversityoperatedwithacashsurplusandthe £’000 12,274 14,653 15,667 18,575 20,961 includinganuppertargetthresholdforgrossdebttoincomeof -2.0 50%.Wewillmoveclosetothisthresholdin2011/12asthefinal overdraftfacilitywasonlyutilisedtomatchsmallovernight 2006/07 2007/08 2008/09 2009/10 2010/11 drawdownsagainsttheRevolvingCreditFacilityaremade. liquidityrequirements. Toseparateunderlyingearningsfromworkingcapital Alltreasurydecisionsaretakenwithintheframeworkofthe movements,wealsotrackEBITDA(Earningsbeforeinterest Total % 8.8 8.9 7.6 3.8 -1.0 Fig 12: Current Asset Ratio University’sTreasuryPolicy.Theunderlyingprincipleisthatthe payable,taxation,depreciationandamortisation)asakey Underlying % 6.5 5.9 6.6 1.2 1.0 Universityoperatesalow-riskapproachinmanagingits performanceindicator.Thiscontinuedtoimproveinlinewithour Variable % 2.3 3.0 1.0 2.6 -2.0 2.0 investmentsandliquidity.Allfundsareplacedwithcounter- FinanceStrategy,ensuringthatweareincreasinglyableto partiesagreedwiththeUniversityandmonitoredagainst generatefundingforsustainablecapitalinvestmentunderthe 1.8 Staffcostsdeclinedby1%or£1.1mintheyear(excludingthe minimumcreditratingcriteria.Thelimitforinvestmentswith newfundingregimewheregovernmentcapitalgrantsare 1.6 effectoftheFRS17adjustmentonpensioncosts).This counter-partiesratedatAwithStandardandPoor’sis£5mand increasinglyscarce. comparesto3.8%growthlastyear.Ofthischange,the 1.4 atAAis£10m.The£10mlimitisalsoappliedtothose underlyingincreaseinstaffcostsfrompayawardand % 1.2 institutionswitheitheragovernmentguaranteeora Fig 9: Payroll costs as percentage of total expenditure incrementaldriftwasca.1.0%.Thevariabledecreasereflects 1.0 shareholdingofatleast25%. (PayrollcostsexcludeFRS17andrestructuringcosts) changesfromlocalrestructuringstoimproveefficiency,central 0.8 60 recruitmentrestrictions,temporarydelaysimposedlocallyin Endowmentassetinvestmentsincreasedto£6.0m.Ofthese responsetotheuncertainenvironmentandthereductionof 0.6 investments,themarketvalueofthefundsmanagedby 59.5 grossactivitylevelsforresearch.Wewouldexpectasmaller 0.4 CazenoveCapitalManagementincreasedby£116kto£1.3mat 59 volumeofunfilledpostsduringthecomingyear.Ourexpectation 31July2011. isthattheunderlyingincreasewillcontinueatalowerlevelinthe 0.2 58.5 short-termdespiteinflationarypressures,althoughthenational 0 During2010/11,£34.9mwasspentoncapitalinvestmentinour % 58 employers’offerof£150forallspinalpoints,effectivefrom1 2006/07 2007/08 2008/09 2009/10 2010/11 estateandinfrastructure.Thisinvestmentwasoffsetbyreceipt of£1.2mincapitalgrants.Allowingforotherfinancial August2011,isnotagreedatthetimeofwriting. % 1.87 1.78 1.71 1.44 1.29 57.5 movements,thisresultedinadecreaseincashandshort-term 57 depositsof£3.4m.Themaindevelopmentsinthecapital Thecurrentassetratioreducedinlinewithexpectationsfrom programmearesummarisedbelow. 56.5 1.44to1.29,reflectingthelevelofplannedcapitalinvestment. Thisprovidesariskmarginaboveourminimumworkinglevel 56 Capital programme of1.2. 55.5 Thelast12monthshaveseenfurtherimportantprogressinour 2006/07 2007/08 2008/09 2009/10 2010/11 capitalprogramme,continuingourapproachofcombining % 57.1 57.6 59.4 58.4 57.2 LancasterUniversity ReportandAccounts2011 55

strategicinvestmentsalongsideroutinerefurbishmentprojects. LancasterUniversityhasrecognisedtheneedtoberesponsive impactingcoreincomestreams.Atsectorlevel,payand • Modernisationofemploymentpolicies; Theacademicstrategicprojectssupportthoseareaswith pensionsissuescontinuetobecloselymonitored.Atthetimeof tothechanginglandscapeandcapitaliseontheopportunitiesfor • MonitoringofNationalStudentSurveyresultsandflow propensityforgrowth.Duringtheyearwesaw: writingwehaveuncertaintyovertheimpactofthenew expansionininternationalengagement.Wewillcontinuetogrow throughtopolicyupdates; thenumbersofoverseasstudentsstudyingattheLancaster undergraduatefeesregimeonnationaldemandthoughremain • ThecompletionandoccupationoftheinnovativeLancaster campuswhilstdevelopingourexistingstrategicpartnershipsand confidentthatLancasteriswell-positionedforthischange • Focusonorganisationalwellbeing. InstituteforContemporaryArtsbuilding. lookingtonewopportunitiesinChina.Atthesametimethe Againstthisbackdrop,inOctober2011,theCouncilreviewedits • ThecompletionoftheCharlesCarterbuildingforthe Universitywillneedtobesensitivetotheneedsofhome riskpolicyand‘riskappetite’andconsideredthatthemeasuresit Itshouldbenotedthatmanyofthesearesectorissuesrather ManagementSchoolwithoccupationfrom2011.This studentsandthebusinesscommunityintheregion,thechanging hadtakenagainstfourkeyheadingshadadequatelyaddressed thanspecificrisksforLancaster.Wearewellequippedtodeal providestheSchoolwithcapacitytosupportitsrecent environmentforresearchsupport,andtheimportantroleplayed itsriskpositionatthistime: withthemasaresultofourrobustfinancialposition,ourstrong growth.ThebuildingwonanawardintheNorthwest byregionalFurtherEducationcollegesinhelpingwidenaccessto academicreputation,ourreducingfuturedependencyon categoryoftheRoyalInstituteofBritishArchitects(RIBA) highereducation. a) Inability to generate the resources to implement the FundingCouncilgrantsandourtrackrecordofflexibilityasan strategic plan awards. Ourmissionistopursueresearchatthehighestinternational organisation. • Maintainingaconsistentandrobustfinancialstrategy; • Approvalandcommencementofcomprehensive level,creatingnewknowledgeandexpertlytransmittingthe Conclusion refurbishedfacilitiesfortheSchoolofHealthandMedicine benefitsofthistoourstudents,partnersandusersofour • Managementofbuoyantapplicationsandadmissionspicture (nowFacultyofHealthandMedicine)withcompletionofthe research.Thiswillincreasinglyrequireacollaborativeapproach. for2011entry; The2010/11yearhasconsolidatedLancaster’spositioninthe worksscheduledforSeptember2012. leadinggroupofinstitutions.TheUniversitywasagainrankedin Financial strategy • Capitalinvestmentstosupportareasofstrategicgrowth thetop10inallthreemajornationalleaguetablesandinthetop underpinnedbybusinessplans; OthermajoracademicrefurbishmentscontinuedwithCounty Ourfinancialstrategyhasbeenextensivelyreviewedoverthe 1%intheworld.InNovember2010,theUniversitywasshortlisted South,occupiedinOctober2010andBowlandMain,occupied pastthreeyearstoensurethatitremainsfitforpurposeinthis • Increaseddiversificationofincomeincludingstrategic astheTimesHigherEducation‘UniversityoftheYear.These September2011. increasinglyvolatileenvironment.During2010/11ourstrategy internationallinkswithaselectnumberofinstitutionsand accoladesareareflectionofouracademicandresearch Theamenitiesandqualityofexperienceoncampusfor wasre-confirmedbyFinanceCommittee,withitsemphasison potentialdevelopmentsinChina; standing,thehighlevelofstudentsatisfactionandthejob destinationsofourgraduates.Inatoughenvironment,our studentsandstaffhavealsobeengreatlyenhancedbythe generatingsufficientcashflowtosupportsustainablecapital • Increasedresearchcollaboration; completionofthenewSportsCentrewhichopenedinJuly investmentandreinvestment(primarilyintheestatebutalso financeshaveremainedstable.Applicationsandacceptancesfor • Useoftherevolvingcreditfacilitytoprovideflexibilityoffunding. 2011asaflagshipbuildingatthemainentrancetothecampus. coveringITandequipmentneeds).ItsetsoutthatEBITDAshould 2011entryareverystrong.However,themarketfor moveuptowards£23mby2013,withunderlyingsurpluses b) The reputation of the University suffers, with the knock- undergraduateswillbevolatileinthefollowingyearandwewill Inaddition,wecontinuetofocusinvestmentinareaswith movingtothe5-6%range.Thelevelofsurplus,cashgeneration on effect on our ability to execute our plans needtoworkhardtosustainourcurrentintake. ongoingincomegeneratingorcostsavingcapacitywith andcapitalexpenditureareaallboundtightlytogetheroverthe TheCoalitionGovernment’sdecisiontogeneratemore emphasisonretainedresidencesrefurbishment,environmental • ProcessfornewViceChancellorappointmentcomplete, forecastperiod. competitionbetweenuniversitiesandamarketforteaching sustainabilityandutilitiesinfrastructure. effectiveJanuary2012; undergraduatesisgoingtobeafeatureofUKHigherEducation Efficiency • Maximisationofbenefitofleaguetableimprovement inthecomingyears.TheUniversityisawareofthepotential Strategic Plan TheUniversitysecuredfundingof£1.2mfromHEFCEfromthe (emphasisonmarketingandbrand); effectsofthesechangesandalertfornewopportunities.Wego WeremainwithintheStrategicPlanapprovedbyUniversity UniversityModernisationFundfor2010/11specificallytargeted • Continuedfocusonentrystandardandgraduate intothisperiodknowingthattheUniversityisinastrongposition. Councilfortheperiodto2015.Howeverformanyreasonsthe attheidentificationofimprovementsandefficienciestobring employmentimprovements; Thelongertermoutlookremainsveryuncertain.Giventhe 2010/11yearhasbeenaperiodofexternalvolatilityand costsavingsinfutureyears.Weusedthisforexpenditureona perturbationsinnationalpolicyandtherapidchangesinglobal extraordinarypolicychurn.Asweforeshadowedlastyear,there majorrestructureofoperationsandnewtechnologiesinthe • MaintainedcreditratingfromStandard&Poor’s. competitionitisprudentforleadingresearch-leduniversitiesto havebeenverysignificantchangestothefundingenvironment, Library,energy-savinginfrastructureprojectsandotherstaff c) Inefficient or ineffective use of resources thinkaboutthenatureofhighereducationoverthenext10-15 theundergraduatefeesregimeandnewexpectationsontherole restructuringwithinCentralServices. years.ThiswillbeanactivedebateforLancastercolleagues ofuniversitiesintheareasofoutreachandwideningparticipation. • BusinessProcessReviewworkoncross-organisational Alsoduring2010/11,theUniversityinitiatedafundamentalreview during2011/12andonethatwillbetakenforwardbythesixth Thefullscaleofthesechangeswillbegintotakeeffectinthe administrativeefficiency; ofcross-institutionaladministrativeprocessesunderaBusiness ViceChancellor,ProfessorMarkSmith,onhisappointmentin autumnof2012andwillsitalongsidefurtherchangeslikelytobe • UpdatedTuitionFeesframeworkapprovedbyFinance ProcessReviewexercise,overseenbyacross-University January2012. partoftheGovernment’sthinkingoninnovationandgrowth. Committeeunderdelegation; SteeringGroup.Itsrecommendationswillbeconsideredinthe Insummary,weremainwell-positionedforthechallengesahead AtLancasterwehavedecidedonourapproachtohome/EU autumnforimplementationduringthe2011/12year. • CentralServicesfocusoneffective,efficientservice butnotcomplacent.WiththesupportofaclearStrategicPlan undergraduatefeesfrom2012andhavehadconfirmationfrom provisionandcustomerserviceexcellence; andsupportingFinanceStrategy,Lancaster’sdistinctiveand theOfficeforFairAccess(OFFA)thatourframeworkfor Risks for the coming period • Wellbeingsurveyidentifyingenablersandbarriersinthe globalapproachwilldrivefurtherimpact,deliverinnovative bursariesandoutreachmeetstherequiredstandard.With Anticipationandactivemanagementofriskiscentraltoour workplaceandissuesaffectingindividualandorganisational solutionstoglobalchallengesandconsolidateLancasterinthe unprecedentedinterestandapplicationlevelsforLancasterover strategyandourfuturesustainability.TheUniversityCouncil productivity; topechelonsofworld-classinstitutions. thepastyear,wearefavourablypositionedforthetransitionto remainskeentoensurethattheUniversitydoesnotbecometoo thenewfeesregimeandtheopportunitiesprovidedbyincreased • InfrastructureMasterplan&energycostandcarbon riskaverseinthecurrentenvironment,butinsteadtakes Professor P W Wellings Mrs S J Randall-Paley liberalisationofstudentnumbers. management. opportunitiestospreadriskandalsotofocusonthoseareas Vice-Chancellor DirectorofFinance Theglobaleconomicturbulencewhichbeganin2008continues whereitiswellplacedtomanagetherisksconcerned. d) Failure to maintain an attractive working and learning environment 18November2011 toresonateandmaydosoformuchofourplanningperiod.We Themainrisksforthecomingperiodcontinuetorelatetothe havetailoredourstrategytothesecircumstancesandthelower increasedmarketisationofUKHigherEducationtogetherwith • OngoingCapitalProgrammewithdeliveryofkeystrategic growthenvironment.Inordertomaintainincomegrowth, Governmentfundingpressuresandpoliticalimperatives projectsin2010/11; LancasterUniversity ReportandAccounts2011 57

Statement Of cOrpOrate gOvernance

Thefollowingstatementisprovidedtoenablereadersofthe (vii) ensuringthatthereisfullandappropriateconsultationon During2010/11,ProfessorWellingsannouncedhisresignationto Senior Officers and Executive Management FinancialStatementsoftheUniversitytoobtainabetter majorissueswithinternalandexternalgroupswithaninterest takeupthepostofVice-ChancelloratWollongongUniversityin AlthoughtheCouncilusuallymeetssixtimeseachacademic understandingofthegovernanceandlegalstructureofthe intheUniversity–especiallythestudents,staff,alumni, Australiawitheffectfrom7December2011.Animportantitemof year,muchofitsdetailedworkisinitiallyhandledbycommittees; University. employers,local,regionalandnationalbodies–andactive businessfortheCouncilduringthelatterpartoftheyearwasthe inparticular,theFinanceCommittee,theAuditCommittee,the appointmentofasuccessortoProfessorWellingsasVice- TheUniversityendeavourstoconductitsbusinessin communicationandconsultationwithCourtandSenate; EstatesCommittee,theNominationsCommittee,theHuman Chancellor.ProfessorMarkSmithwilltakeuptheposton1 accordancewiththesevenPrinciplesidentifiedbythe (viii) monitoringtheUniversity’sperformanceandeffectiveness ResourcesCommittee,asub-setofwhichalsoactsasthe January2012.ManyoftheCouncildiscussionsduringtheyear CommitteeonStandardsinPublicLife(selflessness,integrity, againstitsobjectivesthroughtheuseofkeyperformance RemunerationCommittee,andtheKnowledgeExchangeand focussedontheimpactoftheComprehensiveSpendingReview, objectivity,accountability,openness,honestyandleadership)and indicators(KPIs)andbenchmarking.TheCouncilalso CommercialAffairsCommittee.TheCouncilalsohasa whichforeshadowedthelossofgrantforteachingfromHEFCE, withtheguidancetouniversitieswhichhasbeenprovidedbythe regularlyreviewsitsowneffectivenessinfacilitatingthe RedundancyCommittee.Thedecisionsandrecommendationsof andtheconsequentdecisiontoincreasetuitionfeesfor CommitteeofUniversityChairmeninitsGuideforMembersof institutionalperformance. thesecommitteesareformallyreportedtotheCouncil. undergraduateUKandEUstudents.Thiswasfollowedby HigherEducationGoverningBodiesintheUK(publishedin TheCouncilmeetsonaregularbasis,usuallysixtimesayear. considerationoftheWhitePaperforHigherEducation:Students TheseCommittees,andinsomecasesothers,areformally November2004andupdatedinMarch2009). Ateachmeetingitgenerallyreceivesabriefingfromasenior attheHeartoftheSystem,anditsimplicationsfortheUniversity. constitutedascommitteesoftheCouncilwithwrittentermsof TheUniversityisanindependentcorporation,whoselegalstatus manageraboutissuesofkeyimportancetotheUniversity.The TheCouncilapprovedtheacquisitionofthetrade,tradename referenceandspecifiedmembership,includingasignificant derivesfromaRoyalCharteroriginallygrantedin1964.Itisan Councilhasreservedcertaintypesofdecisiontoitselfandthese andpropertyleaseofTheWorkFoundation,anorganisationthat proportionoflaymembers(fromwhomthepersoninthechairis exemptcharityunderthetermsoftheCharitiesAct1993and,as aredefinedinOrdinanceNo.4(MattersreservedtoCouncilfor hadsubstantialsynergieswiththeUniversity’sresearchand usuallyselected). such,issubjecttoregulationbytheHigherEducationFunding decision).TheyincludeapprovaloftheUniversity’sstrategic impactagendas.Italsoapprovedstrategiesandplansrelatingto Theprincipalacademicandadministrativeofficerofthe CouncilforEngland.Itsobjectives,powersandframeworkof plans,financialtargets,determinationofkeyissuessuchas KnowledgeExchange,InformationandCommunications UniversityistheVice-Chancellorwhohasageneralresponsibility governancearesetoutintheCharteranditssupporting whetherthereshouldberedundancies,andtheappointmentof TechnologyandCarbonManagement.Throughouttheyear, totheCouncilformaintainingandpromotingtheefficiencyand Statutes,approvedbythePrivyCouncil. theVice-Chancellor.TheCouncilhasdelegatedotherdecisions Councilwasupdatedonworktoprogressapartnershipwith goodorderoftheUniversity.Underthetermsoftheformal TheCharterandStatutesrequiretheUniversitytohavethree totheVice-ChancellorortheFinanceCommitteeasdefinedin GuangdongUniversityofForeignStudiestocreateanew,joint FinancialMemorandumbetweentheUniversityandtheHigher separatebodies,eachwithclearlydefinedfunctionsand theDelegationofAuthorities.TheCouncilmonitorsmanagement UniversityinChina. EducationFundingCouncilforEngland,theVice-Chancelloris andinstitutionalperformancethroughtheuseofkey responsibilities,tooverseeandmanageitsactivities,asfollows: • The Senate –istheacademicauthorityoftheUniversityand theaccountableofficeroftheUniversityandinthatcapacitycan performanceindicators,usingabalancedscorecardapproach. besummonedtoappearbeforethePublicAccountsCommittee • The Council –isthegoverningbody,responsibleforthe drawsitsmembershipfromtheacademicandacademic- oftheHouseofCommons. finance,propertyinvestmentsandgeneralbusinessofthe Ithasamajorityofmemberswhoareneitherstaffnorstudentsof relatedstaffandthestudentsoftheinstitution.Itsroleis University,andforsettingthegeneralstrategicdirectionofthe theUniversity(describedaslayorindependentmembers),oneof definedasfollows: AschiefexecutiveoftheUniversity,theVice-Chancellor whomisthePro-Chancellor.ThePro-Chancellorchairsmeetings institution.TheCouncilhasadoptedthefollowingStatement TheSenatehasprimaryresponsibilityfortheacademicworkof exercisesconsiderableinfluenceuponthedevelopmentof oftheCouncil.Alsoincludedinitsmembersarerepresentatives ofPrimaryResponsibilitiesinaccordancewiththeprinciples theUniversity,bothinteachingandinresearch,andforthe institutionalstrategy,theidentificationandplanningofnew ofthestaffoftheUniversityandthestudentbody.Noneofthe containedwithintheCUCGovernanceCodeofPractice: regulationandsuperintendenceoftheeducationanddiscipline developmentsandtheshapingoftheinstitutionalethos.The laymembersreceiveanypayment,apartfromthereimbursement ofthestudentsoftheUniversity.Itmayalsodiscussanymatters DeputyVice-Chancellor,thePro-Vice-Chancellors,theFaculty TheCouncilistheprimarygoverningbodyoftheUniversityandis ofexpenses,fortheworkwhichtheydofortheUniversity.No relatingtotheUniversityandmayconveyitsopinionsonthemto Deansandthesenioradministrativeofficersallcontributein responsiblefor: memberofCouncilorpersonconnectedtoamemberofCouncil theCouncil.Itskeyresponsibilitiesarefor: variouswaystothisaspectofthework,buttheultimate (i) approvingthemissionoftheUniversityandensuringthatit receivedanybenefitfromscholarshipsorbursariesawardedto responsibilityforwhatisdonerestswiththeCouncil. meetstheinterestsofgroupswhocanaffectorwhoare ourstudents.ThelaymembersareindicatedinTable1. (i) thestrategicdevelopmentoftheacademicactivitiesofthe TheUniversitymaintainsaRegisterofInterestsofthefollowing affectedbytheachievementofthemission; University;and MembersofCouncilserveonanumberofcommitteesand categoriesofmembersoftheUniversity:theCouncil,theAudit (ii) stimulating,challenging,evaluatingandendorsingstrategies becomeinvolvedinotheractivitiesandissuesacrossthe (ii) theapprovalofpoliciestopromoteandensurethequalityof Committee,FacultyDeans,CollegePrincipals,Headsof todelivertheUniversity’sobjectivesonanongoingand University,dependingoninterestsandavailability. theacademicworkoftheUniversity,includingteachingand Departments,principalinvestigatorsandSeniorOfficers,which research. financiallyviablebasis; Appointmentsoflaymembersaremadefollowingadvertisement maybeconsultedbyarrangementwiththeUniversitySecretary. (iii) ensuringthatthereareinplaceappropriatearrangementsfor andonthebasisofrecommendationsfromtheNominations • The Court –offersameanswherebythewiderinterests TheStatutesoftheUniversityspecifythattheUniversity themanagementoftheUniversity,particularlythroughthe Committee.Theonlyexceptiontothis,madeinrecognitionofthe servedbytheUniversitycanbeassociatedwiththeinstitution, SecretaryisnamedasSecretaryoftheCouncil.Anyenquiries appointmentoftheVice-Chancellorandthemembersofthe importantrelationshiptheUniversityhaswithLancasterCity andprovidesapublicforumwheremembersofCourtcan abouttheconstitutionandgovernanceoftheUniversityshould seniormanagementteam; Council,isthattheCityCouncilmaynominateoneofitselected raiseanymattersabouttheUniversity.TheCourthasan beaddressedtotheUniversitySecretary.Copiesofthereports memberseligibletoserveasalaymemberontheUniversity annualmeetingatwhichitreceivesreportsontheworkingof (iv) ensuringthatthereareappropriatesystemsofauditcontrol onkeyperformanceindicatorsmayalsobeobtainedfromthe Council. theUniversity,discussesanymattersrelatingtotheUniversity, UniversitySecretary. andaccountability; andconveysitsopinionthereontotheCouncilortheSenate MrB.M.Gray,thePro-Chancellor,holdsseveralDirectorships oftheUniversity. (v) approvingtheprincipalpoliciesoftheUniversity(particularly andischairmanofanumberofcompanies. intheareasoffinance,estatesandhumanresources)onthe AmajorityofthemembersoftheCourtwillbefromoutsidethe ProfessorP.W.Wellings,theVice-Chancellor,isalsoamember recommendationsofitssub-committees,andensuringthat University,representingthelocalcommunityandother oftheHigherEducationFundingCouncilforEngland(HEFCE) thereisanethicalpolicyframeworkconsistentwiththe designatedbodieswithaninterestintheworkoftheUniversity, BoardandtheUKBoardofUniversitiesUK.HechairstheVision University’sCharterandStatutesandmission; butthemembershipalsoincludesrepresentativesofthestaffof BoardforLancasterandMorecambe.HeisalsotheChairofthe theUniversity(bothacademicandnon-academic)andthe (vi) makingsuchprovisionasitthinksfitforthegeneralwelfareof 1994GroupofUniversities. students,inconsultationwiththeSenate; studentbody. LancasterUniversity ReportandAccounts2011 59

Table 1 2. Thesystemofinternalcontrolisdesignedtomanagerather HigherEducationInstitutionsandotherrelevantaccounting operationfortheforeseeablefuture;forthisreason,the Attendance at meetings during 2010/11 thaneliminatetheriskoffailuretoachievepolicies,aimsand standards.Inaddition,withinthetermsandconditionsofa goingconcernbasiscontinuestobeadoptedforthe objectives;itcanthereforeonlyprovidereasonableandnot FinancialMemorandumagreedbetweenHEFCEandthe preparationofthefinancialstatements. Name Council absoluteassuranceofeffectiveness. CounciloftheUniversity,theCouncil,throughitsaccountable Eligible to Actually officer,isrequiredtopreparefinancialstatementsforeach 3. Detailedreviewandmonitoringofthesystemofinternal Public Benefit Statement attend attended financialyearwhichgiveatrueandfairviewofthestateof controliscarriedoutonbehalfoftheCouncilbytheAudit LancasterUniversityisanexemptcharityunderthetermsofthe * Gray,MrB.Pro-Chancellor 7 7 affairsoftheUniversityandofthesurplusordeficitandcash Committee,fromwhichitreceivesperiodicreports CharitiesAct1993andCouncilhashadregardtotheCharity flowsforthatyear.TheCouncilisresponsibleforthe Vice-Chancellor 7 7 concerninginternalcontrol,anditrequiresregularreports Commission’sguidanceonpublicbenefit. maintenanceandintegrityoftheUniversityandgroup’s frommanagersonthestepstheyaretakingtomanagerisks Baker,MrA. 7 7 financialstatementsonthewebsitewww.lancs.ac.uk. TheobjectsoftheUniversityaresetoutintheRoyalCharter intheirareasofresponsibility,includingprogressreportson * Bingley,MrW. 4 4 LegislationintheUnitedKingdomgoverningthepreparation grantedbyHMQueenElizabethIIon14September1964as: keyprojects.TheAuditCommitteehasremindedCouncilthat anddisseminationoffinancialstatementsmaydifferfrom * Boumphrey,Dr.R. 5 5 anysystemofinternalfinancialcontrolcan,however,only “toadvanceknowledge,wisdomandunderstandingbyteaching legislationinotherjurisdictions. Brown,Dr.G. 7 6 providereasonable,butnotabsolute,assuranceagainst andresearchandbytheexampleandinfluenceofitscorporate materialmisstatementorloss. * Carr,MrJ. 7 6 10. ThekeyelementsoftheUniversity’ssystemofinternal life”. financialcontrol,whichisdesignedtoenableCouncilto 4. TheAuditCommitteereceivesregularreportsfromthe TheUniversityisdescribedintheCharteras“bothateachingand Davidson,Dr.K. 7 7 dischargetheresponsibilitiessetoutabove,includethe internalauditors,whichincludetheinternalauditors’ anexaminingbody”.ThepowerssetoutintheChartermake Davies,MrJ. 2 2 following: independentopinionontheadequacyandeffectivenessof specificprovisionsfortheadvancementofknowledge,most Diggle,Prof.P.J. 1 1 theinstitution’ssystemofinternalcontrol,togetherwith • Cleardefinitionsoftheresponsibilitiesof,andtheauthority notably:- * Fitzherbert-Brockholes,MrF. 7 7 recommendationsforimprovement.Italsoreceives delegatedto,headsofacademicandadministrative • “Toprovideinstructioninsuchbranchesoflearningasthe presentationsfrommanagersofareasassociatedwiththe departments,assetoutinaScheduleofDelegationsand Gardiner,MrG. 1 1 Universitymaythinkfit,whetherformembersofthe toprisksonhowtheymanagerisk. theFinancialRegulations. Universityorforothers,andtomakeaprovisionfor * Gardner,MrsG. 7 4 5. Inaddition,anorganisation-wideriskregisterismaintained • Acomprehensivemediumandshort-termplanning researchandforthepreservation,advancementand Gaskell,MsJ. 1 0 fromwhichasummaryofthetoprisksisreportedtoeach process,supplementedbydetailedannualincome, disseminationofknowledgeinsuchmannerasthe meetingofCouncil.TheCouncilapprovedanewformatfor * Hadfield,Mr.J 7 7 expenditure,capitalandcashflowbudgets. Universitymaydetermine. thesummaryinJune2010. * Henig,Prof.S. 2 2 • Monthlyreviewsofincomeandexpenditureinvolving • Togrant,underconditionslaiddowninitsStatutesor 6. Thereviewoftheeffectivenessofthesystemofinternal Johnes,Prof.G. 7 6 variancereportingandupdatesofforecastoutturns. Ordinances,Degrees,Diplomas,Certificatesandother controlissupportedbytheinternalauditwhichisprovidedby academicdistinctionstopersonswhoshallhavepursueda * King,MrL. 7 7 KPMG,whichoperatestostandardsdefinedintheHEFCE • Clearlydefinedandformalisedrequirementsforapproval courseofstudyapprovedbytheUniversityandshallhave AuditCodeofPractice.Theinternalauditorssubmitregular Lord,MrM. 4 3 andcontrolofexpenditure. passedtheexaminationsorothertestsprescribedbythe reportswhichincludetheinternalauditors’independent * Marsland,Mr.G. 6 4 University”. opinionontheadequacyandeffectivenessoftheinstitution’s • Aformalisedtreasurymanagementpolicy. * Middlebrook,MrG. 7 6 systemofinternalcontrol,withrecommendationsfor • Comprehensivefinancialregulationsdetailingfinancial TheUniversity’sStrategicPlan2009-2015buildsonthis,setting * Parker,MrG. 7 6 improvement. controlsandprocedures. outitsvision,mission,beliefsandvaluesandsevenareasof Pickles,MrR. 6 6 7. Thereviewoftheeffectivenessofthesystemofinternal strategicdevelopment.Thevisionistobeasustainableand • Aprofessionalinternalauditteamwhoseannual academicallyexcellentinstitutionrecognisedasoneofthe Ram-Prasad,Prof.C. 5 3 controlisalsosupportedbytheworkoftheUniversity programmeisapprovedbytheAuditCommittee. ManagementAdvisoryGroup,whohasresponsibilityforthe leadinguniversitiesintheworld. Rose,Prof.E. 6 5 developmentandmaintenanceoftheinternalcontrol 11. Incausingthefinancialstatementstobeprepared,the Inimplementingitsaimsandobjectives,theUniversityisguided * Thomason,Prof.H. 7 7 framework,andbycommentsmadebytheexternalauditors Councilhasensuredthat: bythevaluessetoutintheStrategicPlanandCouncilismindful intheirmanagementletterandotherreports. * Willis,Ms.L. 7 7 • Suitableaccountingpoliciesareselectedandthenapplied ofitsresponsibilitytoensurethattheUniversityactsforthe consistently. benefitofthepublic. * laymember Statement on Financial Control Expenditureonresearchgrants,forexample,was£22.2min 8. InaccordancewiththeUniversity'sCharterandStatutes,the • Judgementsandestimatesaremadethatarereasonable 2010/11.Unlesstherearecontractualrestrictionsonthe Councilisresponsiblefortheadministrationand andprudent. publicationoftheresearchoutcomes,completedresearchfrom Statement on Internal Control managementoftheaffairsoftheUniversityandisrequiredto • Applicableaccountingstandardshavebeenfollowed, ourstaffisplacedinthepublicdomainthrougharticlesand 1. AsthegoverningbodyofLancasterUniversity,Councilhas presentauditedfinancialstatementsforeachfinancialyear. subjecttoanymaterialdeparturesdisclosedandexplained responsibilityformaintainingasoundsystemofinternal monographs,inbooksandotherpublications.OurE-printsonline 9. TheCouncilisresponsibleforkeepingproperaccounting inthefinancialstatements. controlthatsupportstheachievementofpolicies,aimsand repositoryisoneofthebiggestandmostfrequentlyaccessedin recordswhichdisclosewithreasonableaccuracyatanytime objectives,whilesafeguardingthepublicandotherfunds England. thefinancialpositionoftheUniversityandenableittoensure • Financialstatementsarepreparedonthegoingconcern andassetsforwhichitisresponsible,inaccordancewith thatthefinancialstatementsarepreparedinaccordancewith basisunlessitisinappropriatetopresumethatthe TheUniversityaimstoattractandretainstudentswhohavethe theresponsibilitiesassignedtothegoverningbodyinthe theUniversity'sCharterandStatutes,theStatementof Universitywillcontinueinoperation.TheCouncilissatisfied potentialtosucceedintheirchosenprogrammeandtobenefit charterandstatutesandtheFinancialMemorandumwith RecommendedPracticeonAccountingforFurtherand thattheUniversityhasadequateresourcestocontinuein fromtheexperience.Italsoaimstoensurethereisequalityof HEFCE. LancasterUniversity ReportandAccounts2011 61

independent auditOrS’ repOrt tO the cOuncil Of lancaSter univerSity

opportunityforallapplicants,whatevertheirbackground.In Wehaveauditedthegroupandparentinstitutionfinancial Inaddition,wereadallthefinancialandnon-financialinformationin 2010/11,12022studentswereregisteredwiththeUniversityin statements(the“financialstatement”)ofLancasterUniversityfor theAnnualReportandAccountstoidentifymaterial theUKand2117throughourinternationalpartnerstoundertake theyearended31July2011whichcomprisetheConsolidated inconsistencieswiththeauditedfinancialstatements.Ifwe highereducation,mainlyintheformofundergraduateand IncomeandExpenditureAccount,theBalanceSheets,the becomeawareofanyapparentmaterialmisstatementsor postgraduatedegrees.Almost4800graduatedduringtheyear. ConsolidatedCashFlowStatement,theStatementof inconsistenciesweconsidertheimplicationsforourreport. ConsolidatedHistoricalCostSurplusesandDeficits,the TheUniversityhasalongandsuccessfulrecordofsupportfor ReconciliationofNetCashFlowtomovementinNetFunds,the Opinion on financial statements localandregionalinitiativesintheUKtowidenaccesstohigher ConsolidatedStatementofTotalRecognisedGainsandLosses, Inouropinionthefinancialstatements: education.Aspirationandawareness-raisingactivitieshave theStatementofAccountingPoliciesandtherelatednotes.The involvedtargetedworkwithyoungpeople,theirfamilies, financialreportingframeworkthathasbeenappliedintheir • giveatrueandfairviewofthestateofthegroup’sandparent unemployedadults,work-basedlearnersandcommunitygroups. preparationisapplicablelawandUnitedKingdomAccounting institution’saffairsasat31July2011andofthegroup’s OurDisabilitiesServiceprovidesdetailedinformationfor Standards(UnitedKingdomGenerallyAcceptedAccounting incomeandexpenditure,recognisedgainsandlossesand applicantsonsupportavailableandworkscloselywithapplicants Practice). cashflowsfortheyearthenended; withsignificantsupportneedstoensuretheyarewellprepared forHEstudy. • havebeenproperlypreparedinaccordancewithUnited Respective responsibilities of the Council and auditors KingdomGenerallyAcceptedAccountingPractice;and Likeallotheruniversities,Lancasterchargestuitionfeesto AsexplainedmorefullyintheResponsibilitiesoftheUniversity • havebeenpreparedinaccordancewiththeStatementof students.Inordertoensurethatstudentsarenotdeterredby Councilstatement,theCouncilisresponsibleforthepreparation RecommendedPractice–AccountingforFurtherandHigher tuitionfeesfromstudyingatLancaster,theUniversityhasput ofthefinancialstatementsandforbeingsatisfiedthattheygivea Education. togetheraninnovativefinancialawardpackageforselectedfull- trueandfairview.Ourresponsibilityistoauditandexpressan timeUKstudents,givingthemsubstantialextrafundingontopof opiniononthefinancialstatementsinaccordancewithapplicable Opinion on other matters prescribed in the HEFCE Audit theirGovernmentsupport.In2010/11theUniversitydisbursed lawandInternationalStandardsonAuditing(UKandIreland). £3,466,425inLancasterBursariesandScholarshipstoall ThosestandardsrequireustocomplywiththeAuditingPractices Code of Practice issued under the Further and Higher cohorts.Around47%ofnewstudentsqualifyforsuchsupport, Board’sEthicalStandardsforAuditors. Education Act 1992 with820bursariestonewstudentsfromlowerincomefamilies Inouropinion,inallmaterialrespects: and383academicscholarshipstothosewhoachievedexcellent Thisreport,includingtheopinions,hasbeenpreparedforandonly academicresults. fortheCouncilofLancasterUniversity,asabodyinaccordance • fundsfromwhateversourceadministeredbytheinstitutionfor withpart7oftheStatutesoftheinstitutionandfornoother specificpurposeshavebeenproperlyappliedtothose TheAnnualReportprovidesfurtherinformationonprogressand purpose.Wedonot,ingivingtheseopinions,acceptorassume purposesand,ifrelevant,managedinaccordancewithrelevant achievementsagainsttheStrategicPlanandtheoverarching responsibilityforanyotherpurposeortoanyotherpersonto legislation;and objects. whomthisreportisshownorintowhosehandsitmaycomesave whereexpresslyagreedbyourpriorconsentinwriting. • fundsprovidedbyHEFCEhavebeenappliedinaccordance withtheFinancialMemorandumandanyothertermsand ThemaintenanceandintegrityoftheLancasterUniversitywebsite conditionsattachedtothem. istheresponsibilityoftheCouncil;theworkcarriedoutbythe auditorsdoesnotinvolveconsiderationofthesemattersand, Matters on which we are required to report by exception accordingly,theauditorsacceptnoresponsibilityforanychanges Wehavenothingtoreportinrespectofthefollowingmatter thatmayhaveoccurredtothefinancialstatementssincethey wheretheHEFCEAuditCodeofPracticeissuedundertheFurther wereinitiallypresentedonthewebsite. andHigherEducationAct1992requiresustoreporttoyouif,in LegislationintheUnitedKingdomgoverningthepreparationand ouropinion: disseminationoffinancialstatementsmaydifferfromlegislationin • thestatementofinternalcontrolincludedaspartofthe otherjurisdictions. StatementofCorporateGovernanceisinconsistentwithour knowledgeoftheinstitutionandgroup. Scope of the audit of the financial statements Anauditinvolvesobtainingevidenceabouttheamountsand disclosuresinthefinancialstatementssufficienttogive reasonableassurancethatthefinancialstatementsarefreefrom materialmisstatement,whethercausedbyfraudorerror.This includesanassessmentof:whethertheaccountingpoliciesare appropriatetothegroup’sandparentinstitution’scircumstances andhavebeenconsistentlyappliedandadequatelydisclosed;the reasonablenessofsignificantaccountingestimatesmadebythe PricewaterhouseCoopers LLP | Chartered Accountants and Council;andtheoverallpresentationofthefinancialstatements. Statutory Auditors | Manchester | 18 November 2011 LancasterUniversity ReportandAccounts2011 63

Statement Of accOunting pOlicieS

1 Accounting Convention mutualnatureofthescheme,thescheme’sassetsarenot iii) Equipment IncomeandCorporationTaxesAct1988(ICTA))orSection256 Thefinancialstatementshavebeenpreparedunderthehistorical hypothecatedtoindividualinstitutionsandascheme-wide Equipmentcostinglessthan£10kperindividualitemorgroupof oftheTaxationofChargeableGainsAct1992totheextentthat costconventionmodifiedbytherevaluationofcertainfixed contributionrateisset.Theinstitutionisthereforeexposedto relateditemsiswrittenoffintheyearofacquisition.Office suchincomeorgainsareappliedtoexclusivelycharitable assetsandinaccordancewiththeStatementofRecommended actuarialrisksassociatedwithotherinstitutions’employeesand furnitureiswrittenoffintheyearofacquisition.Allotheritemsof purposes. isunabletoidentifyitsshareoftheunderlyingassetsand Practice,AccountingforFurtherandHigherEducation equipmentarecapitalisedanddepreciatedovertheirexpected Allsubsidiarycompaniesareliabletocorporationtaxandvalue liabilitiesoftheschemeonaconsistentandreasonablebasis Institutions(SORP)andapplicableAccountingStandards.The usefullivesasperthetablebelow. addedtaxinthesamewayasanyothercommercialorganisation. principalaccountingpolicies,whichhavebeenapplied andtherefore,asrequiredbyFRS17“RetirementBenefits”, TheUniversity’sprincipalactivitiesareexemptfromvalueadded consistently,aresetoutbelow. accountsfortheschemeasifitwereadefinedcontribution Expected useful life years tax,butcertainancillarysuppliesandservicesareliabletovalue scheme.Asaresult,theamountchargedtotheincomeand Landandbuildings 50 addedtaxatvariousrates.Expenditureincludesirrecoverable 2 Basis of Consolidation expenditureaccountrepresentsthecontributionspayabletothe schemeinrespectoftheaccountingperiod. Minorworksandrefurbishments 10or20 valueaddedtaxchargedbysupplierstotheUniversity. Theconsolidatedfinancialstatementsincludethefinancial Equipment 5 Deferredtaxationisfullyprovidedinrespectofaccelerated statementsoftheUniversityandallsubsidiaryundertakingsfor Lancashire County Pension Fund thefinancialyearto31July2011.Theconsolidatedfinancial capitalallowancesandothertimingdifferencesarisingin 7 Heritage Assets statementsdonotincludethoseoftheUniversityofLancaster TheLancashireCountyPensionFundisadefinedbenefit subsidiarycompanies. Students'UnionortheCollegeJuniorCommonRoomsasthe schemewhichisexternallyfundedandcontractedoutofthe Worksofartandothervaluableartefacts(heritageassets)and Universityhasnofinancialinterestandnocontrolorsignificant StateSecondPension(S2P).Theassetsoftheschemeareheld valuedatover£25,000havebeencapitalisedandrecognisedat 12 Maintenance of Premises influenceovertheircommercialandfinancialpolicydecisions. inaseparatetrustee-administeredfund.Pensionschemeassets thecostorvalueoftheacquisition,wheresuchacostor Routinecostsofgeneralrepairsandmaintenancearechargedto aremeasuredusingmarketvalues.Pensionschemeliabilitiesare valuationisreasonablyobtainable. theincomeandexpenditureaccountasincurred. Entitiesareincludedwithintheconsolidationfromthepointofthe measuredusingaprojectedunitmethodanddiscountedatthe Heritageassetsarenotdepreciatedsincetheirlongeconomic groupachievingcontrolandareexcludedfromtheconsolidation currentrateofreturnonahighqualitycorporatebondof lifeandhighresidualvaluemeanthatanydepreciationwouldnot 13 Cash Flows and Liquid Resources whencontrolislost. equivalenttermandcurrencytotheliability. bematerial.However,theUniversitydoesmonitorsuchassets Cashflowscompriseincreasesordecreasesincash.Cash 3 Recognition of Income Thepensionschemesurplus(totheextentthatitisrecoverable) forimpairment. includescashinhand,depositsrepayableondemandand ordeficitisrecognisedinfull.Themovementinthescheme overdrafts.Depositsarerepayableondemandiftheyarein Incomefromtuitionfeesisrecognisedintheperiodtowhichit surplus/deficitissplitbetweenoperatingcharges,financeitems 8 Leases practiceavailablewithin24hourswithoutpenalty.No relatesandincludesallfeeschargeabletostudentsortheir and,inthestatementoftotalrecognisedgainsandlosses, investments,howeverliquid,areincludedascash. sponsors.ThecostsofanyfeeswaivedbytheUniversityare Operatingleaserentalsarechargedtotheincomeand actuarialgainsandlosses. includedasexpenditureinnote8. expenditureaccountasincurred. 14 Charitable donations Incomefromgrants,contractsandotherservicesrenderedis 5 Foreign Currencies 9 Investments Charitabledonationsarerecognisedintheaccountswhenthe includedtotheextentofthecompletionofthecontractor Transactionsdenominatedinforeigncurrenciesarerecordedat charitabledonationhasbeenreceivedorif,beforereceipt,there serviceconcerned. Fixedassetinvestmentsareshowninthebalancesheetatcost therateofexchangerulingatthedatesofthetransactions. lessprovisionforanyimpairment,asthereisnointentionto issufficientevidencetoprovidethenecessarycertaintythatthe Allincomefromshort-termdepositsandendowmentsiscredited Monetaryassetsandliabilitiesdenominatedinforeigncurrencies disposeoftheinvestments.Endowmentassetinvestmentsare donationwillbereceivedandthevalueoftheincoming totheincomeandexpenditureaccountintheperiodinwhichitis aretranslatedintosterlingeitheratyearendratesor,wherethere shownintheBalanceSheetatcurrentmarketvalueandthe resourcescanbemeasuredwithsufficientreliability. arerelatedforwardforeignexchangecontacts,atcontractrates. earned.Incomefromspecificendowmentsnotexpendedin movementinvalueischargedorcreditedtospecific Wherecharitabledonationsarerestrictedtoaparticular Theresultingexchangedifferencesaredealtwithinthe accordancewiththerestrictionsoftheendowmentistransferred endowments.Currentassetinvestmentsareshownatthelower objectivespecifiedbythedonor,theseareaccountedforas determinationofincomeandexpenditureforthefinancialyear. fromtheincomeandexpenditureaccounttospecific ofcostandnetrealisablevalue. endowments.Therearetwomaintypes: endowments. • Restrictedpermanentendowments:thecapitalfundis 6 Fixed Assets 10 Stocks IncomereceivablefromtheFundingCouncilisrecognisedinline i) Land and Buildings maintainedbuttheincomecanbeusedfortheobjective withthelatestestimatesofgrantreceivableforanacademic Buildingmaintenance,catering,barsandcentralstationery Expenditureonlandandbuildingsiscapitalisedandintereston specifiedbythedonor. year.Thefinalgrantallocationisdeterminedinthesubsequent stocksarebroughtintotheaccountsatcostprice.Sofaras newloanstofundcapitalprojectsiscapitaliseduntilthedateof March,followinganauditoftheUniversity’sactivity. buildingmaintenancestocksareconcerned,eachcommodityis • Restrictedexpendableendowments:thecapitalmaybeused completion.Freeholdandlongleaseholdbuildingsare valuedatanaveragecostprice.Neitherconsumablematerials inadditiontotheincomefortheobjectivespecifiedbythe depreciatedovertheirestimatedusefullivesasperthetable 4 Pensions heldinacademicdepartmentsnorlibrarybooksareincludedin donor. below.Wherebuildingsareacquiredwiththeaidofspecific stock. TheUniversityisamemberoftwoexternallyfunded grantstheyarecapitalisedanddepreciatedasabove.Therelated Donatedassets,ordonationsreceivedtobeappliedtothecost superannuationschemes,theUniversitiesSuperannuation ofanasset,areshownonthebalancesheetasdeferredcapital grantsaretreatedasdeferredcapitalgrantsandreleasedto 11 Taxation Status SchemeforacademicandrelatedstaffandtheLancashire incomeovertheexpectedusefullifeofthebuildings.The grants.Thedeferredcapitalgrantisreleasedtoincomeoverthe CountyPensionFundfornon-academicstaff. buildingswererevaluedon31July1997.Onanongoingbasis, TheUniversityisanexemptcharitywithinthemeaningof sameexpectedusefullifeasthatusedtodepreciatetheasset. thisrevaluationistoberegardedasdeemedcostunderFRS15, Schedule2oftheCharitiesAct1993andassuchisacharity Universities Superannuation Scheme andnofuturerevaluationsaretobeperformed. withinthemeaningofPara1ofSchedule6totheFinanceAct TheinstitutionparticipatesintheUniversitiesSuperannuation 2010.Accordingly,theUniversityispotentiallyexemptfrom Scheme(USS),adefinedbenefitschemewhichiscontractedout ii) Minor Works and Refurbishments taxationinrespectofincomeorcapitalgainsreceivedwithin categoriescoveredbysections478to488oftheCorporation oftheStateSecondPension(S2P).Theassetsofthescheme Expenditureonminorworksandbuildingsrefurbishmentsare TaxAct2010(CTA2010)(formerlyenactedinSection505ofthe areheldinaseparatetrustee-administeredfund.Becauseofthe capitalisedatcostanddepreciatedovertheirexpecteduseful livesasperthetableopposite. LancasterUniversity ReportandAccounts2011 65

cOnSOlidated incOme Statement Of cOnSOlidated and expenditure accOunt hiStOrical cOSt SurpluSeS and deficitS

For the year ended 31 July 2011 For the year ended 31 July 2011

2010/11 2009/10 2009/10 2009/10 Note 2010/11 ) 2009/10 Before Refinancing Total £000 ) £000 exceptional exceptional Note item item Surplusoncontinuingoperationsbeforeexceptionalitems 6,114 ) 4,543 ) Income £000 £000 £000 £000 Exceptionaldebenturerefinancingitem 9-) (15,876)

FundingCouncilgrants 1 51,602 50,825 ) -) 50,825 ) Surplus/(deficit)oncontinuingoperationsafterdepreciationof 6,114 ) (11,333) Tuitionfeesandsupportgrants 2 54,861 49,050 ) -) 49,050 ) assetsatvaluation,exceptionalitemsandbeforetaxation Researchgrantsandcontracts 3 26,790 28,223 ) -) 28,223 ) Otheroperatingincome 4 45,522 48,670 ) -) 48,670 ) Differencebetweenhistoricalcostdepreciationandthe 21 666 ) 666 ) Endowmentandinvestmentincome 5 1,692 1,118 ) -) 1,118 ) actualdepreciationchargefortheyearcalculated ontherevaluedamount Total Income 180,467 177,886 ) -) 177,886 )

Historical cost surplus / (deficit) before taxation 6,780 ) (10,667) Expenditure Historical cost surplus before exceptional debenture refinancing 6,780 ) 5,209 ) Staffcosts-continuing 6 99,538 100,619 ) -) 100,619 ) costs and taxation -restructuringcosts 7 886 837 ) -) 837 ) Depreciation,impairmentandlossondisposal 10 11,270 9,742 ) -) 9,742 ) Historical cost surplus / (deficit) after taxation 6,780 ) (10,667) offixedassets ))) Otheroperatingexpenses 58,562 57,188 ) -) 57,188 ) Interestandotherfinancecosts 9 4,097 4,957 ) 15,876 ) 20,833 )

Total Expenditure 174,353 173,343 ) 15,876 ) 189,219 )

Surplus / (deficit) on continuing operations after 6,114 4,543 ) (15,876) (11,333) depreciation of assets at valuation and before taxation

Taxation --

Surplus / (deficit) on continuing operations after 6,114 (11,333) depreciation of assets at valuation and after taxation

Transferfromendowments 388 214 )

Surplus / (deficit) for the year retained 20 6,502 (11,119) within general reserves

Allitemsofincomeandexpenditurearisefromcontinuingoperations LancasterUniversity ReportandAccounts2011 67

Balance SheetS aS at 31 July 2011 cOnSOlidated caSh flOw Statement

Group University For the year ended 31 July 2011 Note 2011 2010 2011 2010 £000 £000 £000 £000 Note 2010/11 2009/10 Fixed assets £000 £000 Tangibleassets 10 249,310 ) 223,604 ) 249,310 ) 223,604 ) Netcashinflowfromoperatingactivitiesbeforeexceptionaldebenturerefinancingcosts 22 15,950 ) 17,072 ) Investments 11 922 ) 37 ) 10,282 ) 9,397 )

250,232 ) 223,641 ) 259,592 ) 233,001 ) Exceptionaldebenturerefinancingcosts 9-) (15,876) Endowment asset investments 12 5,950 ) 5,049 ) 5,950 ) 5,049 ) Net cash inflow from operating activities 22 15,950 ) 1,196 ) Current assets Stocks 229 ) 295 ) 229 ) 295 ) Returnsoninvestmentandservicingoffinance 23 (2,755) (1,145) Debtors 13 18,132 ) 19,084 ) 19,550 ) 19,887 ) Investments 14 800 ) 785 ) 800 ) 785 ) Capitalexpenditureandfinancialinvestment 24 (32,475) (24,233) Cashatbankandinhand 42,305 ) 46,489 ) 42,199 ) 46,458 ) Managementofliquidresources 25 (4,197) 15,581 ) 61,466 ) 66,653 ) 62,778 ) 67,425 ) Financing 26 15,893 ) 19,707 ) Creditors: Amountsfallingduewithinoneyear 15 (47,772) (46,298) (57,134) (56,567) Net current assets 13,694 ) 20,355 ) 5,644 ) 10,858 ) Total assets less current liabilities 269,876 ) 249,045 ) 271,186 ) 248,908 ) (Decrease) / increase in cash (7,584) 11,106 Creditors: Amountsfallingdueaftermore 16 (76,279) (60,433) (76,279) (60,433) thanoneyear

Provisions for liabilities and charges 17 (2,428) (2,963) (2,428) (2,963) Note to Consolidated Cash Flow Statement Net assets excluding pension liability 191,169 ) 185,649 ) 192,479 ) 185,512 ) Thedecreaseincashof£7.6mreferredtoaboveexcludesmovementsinshort-termbankdepositsinaccordancewiththe Netpensionsliability 28 (22,300) (24,374) (22,300) (24,374) requirementsofFRS1.Duringtheyear,short-termdepositsincreasedby£4.2mgivinganoveralldecreaseincashatbankandin Net assets including pension liability 168,869 ) 161,275 ) 170,179 ) 161,138 ) handof£3.4m.

Deferred capital grants 18 85,191 ) 88,609 ) 85,191 ) 88,609 ) Note 2010/11 2009/10 Endowment funds £000 £000 Expendable 19 4,281 ) 3,848 ) 4,281 ) 3,848 ) Permanent 19 1,669 ) 1,201 ) 1,669 ) 1,201 ) (Decrease)/increaseincash (7,584) 11,106 )

5,950 ) 5,049 ) 5,950 ) 5,049 ) Increase/(decrease)inshort-termdeposits 25 4,197 ) (15,581) Reserves Incomeandexpenditureaccount 20 52,027 ) 41,250 ) 55,341 ) 43,117 ) Decrease in cash and short-term deposits (3,387) (4,475) Revaluationreserve 21 25,701 ) 26,367 ) 23,697 ) 24,363 ) Total reserves 77,728 ) 67,617 ) 79,038 ) 67,480 ) Total funds 168,869 ) 161,275 ) 170,179 ) 161,138 )

ThefinancialstatementswereapprovedbytheCouncilon18November2011andsignedonitsbehalfby;

Mr B M Gray Professor P W Wellings Mrs S J Randall-Paley Pro-Chancellor Vice-Chancellor and Director of Finance Accountable Officer LancasterUniversity ReportandAccounts2011 69

recOnciliatiOn Of net caSh flOw cOnSOlidated Statement tO mOvement in net deBt Of tOtal recOgniSed gainS and lOSSeS

For the year ended 31 July 2011 For the year ended 31 July 2011

Note 2010/11 ) 2009/10 Note 2010/11 2009/10 £000 ) £000 £000 £000

(Decrease)/increaseincash (7,584) 11,106 ) Surplus/(deficit)oncontinuingoperationsafterdepreciation 6,114 (11,333) ofassetsatvaluationandaftertaxation Financing 26 (15,893) (19,707) Appreciationofendowmentassetinvestments 19 98 116 ) Increase/(decrease)inshort-termdeposits 25 4,197 ) (15,581) Actuarialgaininrespectofpensionscheme 28 3,609 5,786 ) Appreciationofcurrentassetinvestments 14 15 ) 91 ) Newendowments 19 1,191 132 ) Amortisationofdebenturecosts (66) (41) Total recognised gains / (losses) relating to the year 11,012 (5,299) Movementintheyear (19,331) (24,132) ) Net(debt)/fundsasat1August 27 (5,081) 19,051 )

Net debt as at 31 July 27 (24,412) (5,081) Reconciliation £000

) Openingreservesandendowmentsasat1August2010 72,666

Totalrecognisedlossrelatingtotheyear 11,012

Closing reserves and endowments as at 31 July 2011 83,678

) LancasterUniversity ReportandAccounts2011 71

nOteS tO the financial StatementS nOteS tO the financial StatementS - (cOntinued)

Group Group

Note 2010/11 ) 2009/10 2010/11 ) 2009/10 1 Funding Council grants £000 ) £000 6 Staff costs £000 ) £000

Basicrecurrentgrant 43,679 45,252 Staff Costs: Specificgrants: Wagesandsalaries 81,883 82,771 Universitymodernisationfund 1,800 - Socialsecuritycosts 6,015 6,049 HigherEducationinnovationfund 1,900 1,534 Otherpensioncosts 11,640 11,799 HEFCEmatchedfunding 888 505 Releasedfromdeferredcapitalgrants 18 3,335 3,534 99,538 100,619

51,602 50,825 Emoluments of the Vice-Chancellor £000 £000

2 Tuition fees and support grants £000 £000 ProfessorPWWellings

Home/EUfeesforfull-timestudents 28,273 26,525 Emolumentsexcludingemployer'spensioncontributions 214 215 Overseasfeesforfull-timestudents 24,057 20,109 PensioncontributionstotheUniversities SuperannuationScheme 31 31 Part-timefees 1,551 1,421 Total emoluments 245 246 Researchtrainingsupportgrants 980 995 Remuneration of higher paid staff 54,861 49,050 (excludingsuperannuationcontributionsandexcludingtheVice-Chancellor) Number Number

3 Research grants and contracts £000 £000 £100,001-£110,000 95 £110,001-£120,000 75 Researchcouncilsandcharities 15,355 16,359 £120,001-£130,000 1- UKcentralgovernment,localandhealthauthorities 5,019 5,707 £130,001-£140,000 22 UKindustryandcommerce 1,645 1,419 £140,001-£150,000 1- EuropeanUnion 3,884 4,325 £150,001-£160,000 -1 Other 887 413 £160,001-£170,000 1- 26,790 28,223 Theaveragemonthlynumberofpersons (includingseniorpost-holders)employedbytheUniversity 4 Other operating income £000 £000 duringtheyear,expressedasfull-timeequivalents,was : Number Number

Collegesandresidences 8,292 8,874 Academicandrelated 1,357 1,392 Otherservicesrendered 19,338 18,846 Clericalandsecretarial 560 573 Otherincome 16,583 19,710 Manual 226 231 Releasedfromdeferredcapitalgrants 18 1,309 1,240 Technical 64 66 Sessional 114 154 45,522 48,670 2,321 2,416 5 Endowment income and interest receivable £000 £000

Incomefromendowments 19&23 83 81 Incomefromdonations 1,089 370 Otherinterestreceivable 520 667

1,692 1,118 LancasterUniversity ReportandAccounts2011 73

nOteS tO the financial StatementS - nOteS tO the financial StatementS - (cOntinued) (cOntinued)

Group 10 Tangible assets

Note 2010/11 2009/10 Land and Plant and Fixtures, Assets in Heritage Total 7 Staff costs - restructuring costs £000 £000 Buildings Machinery Fittings and the Course of Assets Equipment Construction Voluntaryseverance,earlyretirementcostsandrestructuring 886 837 Group £000 £000 £000 £000 £000 £000

8 Analysis of total expenditure by activity £000 £000 Valuation / Cost

Academicdepartments 97,078 95,440 At1August2010 ViceandPro-Vice-Chancellorsportfolios 3,467 4,410 Valuation 124,421 ) 5,886 ) -) -) 700 131,007 ) Facilities 14,831 15,083 Cost 65,763 ) 2,987 ) 84,434 ) 19,468 ) - 172,652 ) Interestpayable 3,279 3,270 Depreciationandimpairment 11,270 9,742 190,184 ) 8,873 ) 84,434 ) 19,468 ) 700 303,659 ) Administrationandcentralservices 30,631 30,687 Additionsatcost 18,603 ) 3) 6,325 ) 12,045 ) - 36,976 ) Library 4,695 4,633 Other 1,737 1,417 Transfers 18,965 ) 117 ) -) (19,082) --) Universitycompanies 5,829 6,209 Disposals -) -) (1,017) -) - (1,017) AdditionalFRS17pensioncostsinexcessofcontributionspaid 1,536 2,452 At 31 July 2011 227,752 ) 8,993 ) 89,742 ) 12,431 ) 700 339,618 ) Expenditurebeforeexceptionaldebenturerefinancingitem 174,353 173,343 Depreciation Exceptionaldebenturerefinancingitem 9-15,876 At1August2010 33,562 ) 1,623 ) 44,870 ) -) - 80,055 ) Total expenditure 174,353 189,219 Chargeforyear 4,055 ) 223 ) 6,469 ) -) - 10,747 ) Includedaboveisexpenditureinrelationto: Disposals -) -) (494) -) - (494) Externalauditorsremunerationinrespectofauditservices 62 56 At 31 July 2011 37,617 ) 1,846 ) 50,845 ) -) - 90,308 ) Externalauditorsremunerationinrespectofnon-auditservices 3- Bursariesandscholarships 6,243 5,878

Trustees Net Book Value at 31 July 2011 190,135 ) 7,147 ) 38,897 ) 12,431 ) 700 249,310 )

Notrusteehasreceivedanyremuneration/waivedpaymentsfromthegroupduringtheyear(2010:£nil).Thetotalexpensespaid NetBookValueat1August2010 156,622 ) 7,250 ) 39,564 ) 19,468 ) 700 223,604 ) to,oronbehalfofninetrusteeswas£5,430(2010:seventrusteestotalling£3,392).Thisrepresentstravelandsubsistence expensesincurredintheirofficialcapacityinattendingCouncilandothercommitteemeetings. OnadoptionofFRS15,TangibleFixedAssets,theUniversityfollowedthetransitionalprovisiontoretainthebookvalueoflandand 9 Interest payable and finance costs £000 £000 buildings,whichwererevaluedon31July1997byGeraldEve,CharteredSurveyors,butnottoadoptapolicyofrevaluationsof thesepropertiesinthefuture.Thesevaluationsareretainedsubjecttotherequirementtotestassetsforimpairmentinaccordance Onloansrepayablewhollyorpartlyinmorethan5years 3,279 3,270 withFRS11,ImpairmentofFixedAssetsandGoodwill. Netchargeonpensionscheme 28 818 1,687

4,097 4,957 Exceptionaldebenturerefinancingcosts - 15,876

4,097 20,833

Thedebenturerefinancingcostsarosefromtheredemptionofthe9.75%FirstMortgageDebentureStock2025,thedetailsof whicharereportedwithintheOperatingandFinancialReview. LancasterUniversity ReportandAccounts2011 75

nOteS tO the financial StatementS - nOteS tO the financial StatementS - (cOntinued) (cOntinued)

10 Tangible assets (continued) Group xxxxxxx University xxxxxx

Land and ) Plant and ) Fixtures, ) Assets in ) Heritage ) Total ) 2011 2010 2011 2010 Buildings ) Machinery ) Fittings and ) the Course of ) Assets ) 11 Fixed asset investments £000 £000 £000 £000 Equipment ) Construction ) University £000 ) £000 ) £000 ) £000 ) £000 ) £000 ) Investments 922 37 922 37 Sharesingroupcompanies --9,360 9,360 Valuation / Cost At cost 31 July 922 37 10,282 9,397 At1August2010 Valuation 114,731 ) 5,495 ) -) -)) 700 ) 120,926 ) Duringtheyear,theUniversityreceivedadonationofUKequitieswithamarketvalueat31stJuly2011of£885k.Thebalanceof Cost 75,453 )33,378 ) 84,007 ) 19,468 ) -) 182,306 ) theinvestmentsof£37krelatetotheUniversity'sequityinvestmentinCVCPPropertiesPLC. 190,184 ) 8,873 ) 84,007 ) 19,468 ) 700 303,232 ) Sharesingroupcompaniesincludeinvestmentsinfourtradingsubsidiarycompanies,theresultsofwhichareincorporatedwithin Additionsatcost 18,603 ) 3) 6,249 ) 12,045 ) -) 36,900 ) theseconsolidatedfinancialstatements.Theresultsfortheyearended31July2011ofthefourcompaniesareasfollows: Transfers 18,965 ) 117 ) -) (19,082) -) -) LancasterUniversityBusinessEnterprisesLtd.(loss:£10k),LancasterUniversityConsultancyServicesLtd.(loss£7k),LandecLtd, Disposals -) -)) (1,017) -) -) (1,017) tradingasTheWorkFoundation(loss£1,122k)andLancasterUniversityNetworkServicesLtd.(loss£355k).

At 31 July 2011 227,752 ) 8,993 ) 89,239 ) 12,431 ) 700 ) 339,115 ) Group xxxxxxx University xxxxxx 2011 2010 2011 2010 Depreciation 12 Endowment asset investments £000 £000 £000 £000 At1August2010 33,562 ) 1,623 ) 44,443 ) -) -) 79,628 ) At1August 5,049 ) 5,015 ) 5,049 ) 5,015 ) Chargeforyear 4,055 ) 223 ) 6,393 ) -) -) 10,671 ) Disposals -) -) (494) -) -) (494) Increaseinmarketvalueofinvestments 98 ) 115 ) 98 ) 115 ) Increase/(decrease)incashbalancesheldforendowmentfunds 803 ) (81) 803 ) (81) At 31 July 2011 37,617 ) 1,846 ) 50,342 ) -) -) 89,805 ) At 31 July 5,950 ) 5,049 ) 5,950 ) 5,049 ) Net Book Value at 31 July 2011 190,135 ) 7,147 38,897 ) 12,431 ) 700 ) 249,310 ) Representedby; NetBookValueat1August2010 156,622 ) 7,250 ) 39,564 ) 19,468 ) 700 ) 223,604 ) Equities 1,024 ) 915 ) 1,024 ) 915 ) UKgiltsandotherfixedintereststocks 223 ) 228 ) 223 ) 228 ) Property 35 ) 35 ) 35 ) 35 ) Ifthelandandbuildingsandplantandmachineryhadnotbeenrevaluedtheywouldhavebeenincludedatthefollowingamounts: Endowmentcashbalances 4,668 ) 3,871 ) 4,668 ) 3,871

Total endowment asset investments 5,950 ) 5,049 ) 5,950 ) 5,049 ) Group and University 2011 2010 Endowment asset investments at cost 5,855 ) 5,011 ) 5,855 ) 5,011 ) £000 £000

Cost 171,401 ) 152,795 ) Aggregatedepreciationbasedoncost 33,832 ) 30,924 )

TheabovecostsincludeirrecoverableVAT,freeholdlandof£5,275kwhichisnotdepreciatedandelementsofassetsinthecourse ofconstruction.TheExchequerinterestwithinfreeholdlandandbuildingsis£56.1millionandshouldbuildingsfundedfrom Treasurysourcesbesold,theUniversitywouldeitherhavetosurrendertheproceedstotheTreasuryorusetheminaccordance withthetermsoftheFinancialMemorandumwithHEFCE. LancasterUniversity ReportandAccounts2011 77

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Group xxxxxxx University xxxxxx Group xxxxxxx University xxxxxx

2011 2010 2011 2010 2011 2010 2011 2010 13 Debtors £000 £000 £000 £000 16 Creditors £000 £000 £000 £000

Amounts falling due within one year Amounts falling due after more than one year

Tradedebtors 14,424 ) 16,432 ) 13,498 ) 16,082 ) Unsecuredbankloans 71,862 55,903 71,862 55,903 Prepaymentsandaccruedincome 3,708 ) 2,652 ) 3,344 ) 2,638 ) Deferredincome 4,417 4,530 4,417 4,530 Groupdebtors -) -) 2,708 ) 1,167 ) 76,279 60,433 76,279 60,433 18,132 ) 19,084 ) 19,550 ) 19,887 )

Group xxxxxxx University xxxxxx

2011 2010 2011 2010 The maturity profile of the loans was as follows: £000 £000 £000 £000 Group xxxxxxx University xxxxxx Between1and2years ---- 2011 2010 2011 2010 Between2and5years 544 - 544 - 14 Investments £000 £000 £000 £000 Over5years 71,318 55,903 71,318 55,903

Listedinvestments 800 785 800 785 71,862 55,903 71,862 55,903 800 785 800 785 InaccordancewithFRS4,CapitalInstruments,arrangementcostsof£921k(2010:£815k)havebeenoffsetagainstthe outstandingborrowingsandarebeingamortisedoverthelivesofthefacilities. xxxxxx ThelistedinvestmentsrepresentashareportfoliomanagedbyInvestec(formerlyknownasRensburgSheppards).Thetargetrate ofreturnfortheportfolioistheFTSEallsharesindexplus1%.Themarketvalueoftheinvestmentsat31stJuly2011was£870k Amount Interest rate (2010:£785k). Bank loan arrangements as at 31 July 2011: Lender £000 %

Group xxxxxxx University xxxxxx BulletloanrepayableAugust2039 RoyalBankofScotland 44,676 5.84 Fixed RevolvingcreditfacilitySeptember2019 RoyalBankofScotland 16,000 2.09 Variable 2011 2010 2011 2010 AmortisingloanrepayableSeptember2030 LloydsTSB 12,000 5.24 Fixed 15 Creditors £000 £000 £000 £000 Arrangementcosts (814) Amounts falling due within one year 71,862 Paymentsreceivedonaccount 11,334 11,671 11,334 11,671 Tradecreditors 16,995 20,211 16,782 20,189 Socialsecurityandothertaxationpayable 3,983 3,400 3,920 3,327 Accrualsanddeferredincome 15,137 10,693 14,105 9,670 Unsecuredloan 323 323 323 323 Groupcreditors --10,670 11,387

47,772 46,298 57,134 56,567 LancasterUniversity ReportandAccounts2011 79

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Voluntary Overseas Total Restricted Restricted 2011 2010 severance, partner Expendable Permanent Total Total early retirement development 19 Endowments ( Group and University ) £000 £000 £000 £000 and restructuring 17 Provisions for liabilities and charges ( Group and University ) £000 £000 £000 Balancesat1August2010 Capital 2,907 ) 818 ) 3,725 ) 3,580 ) At1August2010 2,578 ) 385 2,963 ) Accumulatedincome 941 ) 383 ) 1,324 ) 1,435 )

Utilisedinyear (733) (52) (785) 3,848 ) 1,201 ) 5,049 ) 5,015 ) Transferfromincomeandexpenditureaccount 159 ) 91 ) 250 ) Newendowments 837 ) 354 ) 1,191 ) 132 ) At 31 July 2011 2,004 ) 424 ) 2,428 Investmentincome 48 ) 35 ) 83 ) 81 ) Expenditure (452) (19) (471) (295)

(404) 16 ) (388) (214) The payment profile of the voluntary severance, early retirement 2011 2010 Increaseinmarketvalueofinvestments -) 98 ) 98 ) 116 ) and restructuring provision was as follows: £000 £000 At 31 July 2011 4,281 ) 1,669 ) 5,950 ) 5,049 ) Lessthan1year 467 ) 790 ) Between1and2years 126 ) 126 ) Representedby: Between2and5years 374 ) 378 ) Capital 3,292 ) 1,251 ) 4,543 ) 3,828 ) Over5years 1,037 ) 1,284 ) Accumulatedincome 989 ) 418 ) 1,407 ) 1,221 )

2,004 ) 2,578 ) 4,281 ) 1,669 ) 5,950 ) 5,049 )

Theoverseaspartnerdevelopmentprovisionrepresentsacontractualobligationtoretainaproportionofassociatedfeeincometo fundcertainstaffdevelopmentprogrammesformembersofstafffromouroverseaspartners.Thetimingsoftheseprogrammes Group xxxxxxx University xxxxxx aredrivenbytheneedsoftheoverseaspartnersanditisthereforenotpossibletoconstructanaccuratepaymentprofileforthis 2011 2010 2011 2010 provision. 20 Income and expenditure account £000 £000 £000 £000 Funding Other Total At1August 41,250 ) 45,917 ) 43,117 ) 39,748 ) Council grants 18 Deferred capital grants ( Group and University ) £000 £000 £000 Surplus/(deficit)afterdepreciationofassetsat 6,502 ) (11,119) 7,949 ) (3,083) valuationandaftertaxation ) At1August2010 59,410 ) 29,199 ) 88,609 ) Releasefromrevaluationreserve 666 ) 666 ) 666 ) 666 ) Newgrantsreceived 936 ) 290 ) 1,226 ) Actuarialgaininrespectofpensionscheme 3,609 ) 5,786 ) 3,609 ) 5,786 ) Releasedtoincomeandexpenditureaccount (3,335) (1,309) (4,644) At 31 July 52,027 ) 41,250 ) 55,341 ) 43,117 ) At 31 July 2011 57,011 ) 28,180 ) 85,191 )

Deferredcapitalgrantsincludecertaingrantsreceivedwithconditionsattachedinrelationtooutputtargetswhichmaybecome repayableifthesetargetsarenotachieved.Atthebalancesheetdate,conditionsarebeingmet. LancasterUniversity ReportandAccounts2011 81

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Group xxxxxxx University xxxxxx Group xxxxxxx

2011 2010 2011 2010 Note 2010/11 2009/10 21 Revaluation Reserve £000 £000 £000 £000 23 Returns on investment and servicing of finance £000 £000

Asat1August 26,367 ) 27,033 ) 24,363 ) 25,029 ) Incomefromendowments 5 83 ) 81 ) Otherinterestreceived 442 ) 1,511 ) Transferfromrevaluationreservetogeneralreservein (666) (666) (666) (666) Interestpaid (3,280) (2,737) respectofdepreciationonrevaluedassets (2,755) (1,145) At 31 July 25,701 ) 26,367 ) 23,697 ) 24,363 )

24 Capital expenditure and financial investment £000 £000

Paymenttoacquiretangiblefixedassets (34,886) (34,278) Group xxxxxxx Deferredcapitalgrantreceived 18 1,226 ) 9,913 ) 22 Reconciliation of consolidated operating surplus / Note 2010/11 2009/10 Newendowmentsreceived 19 1,191 ) 132 ) (deficit) to net cash inflow from operating activities £000 £000 Endowmentassetcashinvestedinequities (6) -)

Surplus/(deficit)fortheyear 6,114 ) (11,333) (32,475) (24,233) Depreciation,impairmentandlossondisposal 10 11,270 ) 9,742 ) Deferredcapitalgrantsreleasedtoincome 18 (4,644) (4,774) 25 Management of liquid resources £000 £000 Investmentincome 5 (603) (748) Non-cashdonation (885) -) Movementinshort-termdeposits (4,197) 15,581 ) Amortisationoffinancecosts 66 ) 41 ) Releaseofleasepremium (113) (113) Interestpayable 9 3,279 ) 3,270 ) 26 Financing £000 £000 Revaluationofinvestments 14 (15) (91) Pensioncostlesscontributionspayable 1,537 ) 2,452 ) Repaymentofdebenture -) (29,978) Decreaseinstocks 66 ) 50 ) Newloansacquired 15,893 ) 49,685 ) Decreaseindebtors 459 ) 799 ) 15,893 ) 19,707 ) (Decrease)/increaseincreditors (46) 1,100 ) (Decrease)/increaseinprovisions (535) 801 )

Net cash inflow from operating activities 15,950 ) 1,196 ) Note At 1 August Cash Non-cash At 31 July Exceptionaldebenturerefinancingcosts -) 15,876 ) 2010 flows changes 2011 Net cash inflow from operating activities before exceptional debenture refinancing costs 15,950 ) 17,072 ) 27 Analysis of changes in net debt £000 £000 £000 £000 Cashinhand 46,489 ) (4,184) -) 42,305 ) Endowmentassetinvestments 12 3,871 ) 797 ) -) 4,668 ) Debtduewithin1year 15 (323) -) -) (323) Debtdueafter1year 16 (55,903) (15,893) (66) (71,862)

(5,866) (19,280) ) (66) (25,212)

Currentassetinvestments 14 785 ) - 15 ) 800 )

(5,081) ) (19,280) (51) (24,412) LancasterUniversity ReportandAccounts2011 83

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28 University pension schemes 28 University pension schemes (continued) Atthevaluationdate,thevalueoftheassetsoftheschemewas£28,842.6millionandthevalueofthescheme'stechnical UniversitiesSuperannuationScheme provisionswas£28,135.3millionindicatingasurplusof£707.3million.Theassetsthereforeweresufficienttocover103%ofthe benefitswhichhadaccruedtomembersafterallowingforexpectedfutureincreasesinearnings. TheinstitutionparticipatesintheUniversitiesSuperannuationScheme(USS),adefinedbenefitschemewhichiscontractedoutof theStateSecondPension(S2P).Theassetsoftheschemeareheldinaseparatefundadministeredbythetrustee,Universities Theactuaryalsovaluedtheschemeonanumberofotherbasesasatthevaluationdate.Onthescheme'shistoricgiltsbasis,using SuperannuationSchemeLimited. avaluationrateofinterestinrespectofpastserviceliabilitiesof4.4%perannum(theexpectedreturnongilts)thefundinglevelwas approximately71%.UnderthePensionProtectionFundregulationsintroducedbythePensionsAct2004theschemewas107% Theappointmentofdirectorstotheboardofthetrusteeisdeterminedbythetrusteecompany'sArticlesofAssociation.Fourof funded;onabuy-outbasis(ieassumingtheschemehaddiscontinuedonthevaluationdate)theassetswouldhavebeen thedirectorsareappointedbyUniversitiesUK;threeareappointedbytheUniversityandCollegeUnion,ofwhomatleastonemust approximately79%oftheamountnecessarytosecurealltheUSSbenefitswithaninsurancecompany;andusingtheFRS17 beaUSSpensionermember;oneisappointedbytheHigherEducationFundingCouncils;andaminimumoftwoandamaximumof formulaasifUSSwasasingleemployerscheme,usingaAAbonddiscountrateof6.5%perannumbasedonspotyields,the fourareco-opteddirectorsappointedbytheboard.Undertheschemetrustdeedandrules,theemployercontributionrateis actuaryestimatedthatthefundinglevelat31March2008was104%. determinedbythetrustee,actingonactuarialadvice. Thetechnicalprovisionsrelateessentiallytothepastserviceliabilitiesandfundinglevels,butitisalsonecessarytoassessthe Becauseofthemutualnatureofthescheme,thescheme'sassetsarenothypothecatedtoindividualinstitutionsandascheme- ongoingcostofnewlyaccruingbenefits.Thecostoffutureaccrualwascalculatedusingthesameassumptionsasthoseusedto widecontributionrateisset.Theinstitutionisthereforeexposedtoactuarialrisksassociatedwithotherinstitutions'employeesand calculatethetechnicalprovisionsexceptthatthevaluationrateofinterestassumedassetoutperformanceovergiltsof1.7%per isunabletoidentifyitsshareoftheunderlyingassetsandliabilitiesoftheschemeonaconsistentandreasonablebasisand annum(comparedto2%perannumforthetechnicalprovisions)givingadiscountrateof6.1%perannum;alsotheallowancefor therefore,asrequiredbyFRS17"Retirementbenefits",accountsfortheschemeasifitwereadefinedcontributionscheme.Asa promotionalsalaryincreaseswasnotashigh.Analysishasshownveryvariablelevelsofgrowthoverandabovegeneralpay result,theamountchargedtotheincomeandexpenditureaccountrepresentsthecontributionspayabletotheschemeinrespect increasesinrecentyears,andthesalarygrowthassumptionbuiltintothecostoffutureaccrualisbasedonmorestable,historic, oftheaccountingperiod. salaryexperience.However,whencalculatingthepastserviceliabilitiesofthescheme,acautionaryreservehasbeenincluded,in Thelatesttriennialactuarialvaluationoftheschemewasat31March2008.ThiswasthefirstvaluationforUSSunderthenew addition,onaccountofthevariabilitymentionedabove. scheme-specificfundingregimeintroducedbythePensionsAct2004,whichrequiresschemestoadoptastatutoryfunding Thescheme-widecontributionraterequiredforfutureservicebenefitsaloneatthedateofthevaluationwas16%ofpensionable objective,whichistohavesufficientandappropriateassetstocovertheirtechnicalprovisions.Theactuaryalsocarriesoutregular salariesandthetrusteecompany,ontheadviceoftheactuary,increasedtheinstitutioncontributionrateto16%ofpensionable reviewsofthefundinglevels.Inparticular,hecarriesoutareviewofthefundingleveleachyearbetweentriennialvaluationsand salariesfrom1October2009. detailsofhisestimateofthefundinglevelat31March2011arealsoincludedinthisnote. Since31March2008globalinvestmentmarketshavecontinuedtofluctuateandasat31March2011themarket'sassessmentof Thetriennialvaluationwascarriedoutusingtheprojectedunitmethod.Theassumptionswhichhavethemostsignificanteffecton inflationhasincreasedslightly.Thegovernmenthasalsoannouncedachangetotheinflationmeasureusedindeterminingthe theresultofthevaluationarethoserelatingtotherateofreturnoninvestments(iethevaluationrateofinterest),theratesof "OfficialPensionsIndex"fromtheRetailPricesIndextotheConsumerPricesIndex.Theactuaryhastakenthisallintoaccountinhis increaseinsalaryandpensionsandtheassumedratesofmortality.Thefinancialassumptionswerederivedfrommarketyields fundinglevelestimatesat31March2011byreducingtheassumptionforpensionincreasefrom3.3%pato2.9%pa.Theactuary prevailingatthevaluationdate.An'inflationriskpremium'adjustmentwasalsoincludedbydeducting0.3%fromthemarket-implied hasestimatedthatthefundinglevelasat31March2011undertheschemespecificfundingregimehadfallenfrom103%to98% inflationonaccountofthehistoricallyhighlevelofinflationimpliedbygovernmentbonds(particularlywhencomparedtotheBank (adeficitofcirca£700million).Overthepasttwelvemonths,thefundinglevelhasimprovedfrom91%asat31March2010to98%. ofEngland'stargetof2%forCPIwhichcorrespondsbroadlyto2.75%forRPIperannum). Thisestimateisbasedonthefundinglevelat31March2008,adjustedtoreflectthefund'sactualinvestmentperformanceoverthe Tocalculatethetechnicalprovisions,itwasassumedthatthevaluationrateofinterestwouldbe6.4%perannum(whichincludes threeyearsandchangesinmarketconditions(marketconditionsaffectboththevaluationrateofinterestandalsotheinflation anadditionalassumedinvestmentreturnovergiltsof2%perannum),salaryincreaseswouldbe4.3%perannum(plusanadditional assumptionwhichinturnimpactsonthesalaryandpensionincreaseassumptions).Thenextformalvaluationisasat31March allowanceforincreasesinsalariesduetoageandpromotionreflectinghistoricschemeexperience,withafurthercautionary 2011andthiswillincorporateupdatedassumptionsagreedbythetrusteecompany. reserveontopforpastserviceliabilities)andpensionswouldincreaseby3.3%perannum. Witheffectfrom1October2011,newjoinerstotheschemewilljointhenewrevaluedbenefitssectionratherthantheexistingfinal Standardmortalitytableswereusedasfollows: salarysection.Thischangewillhaveanimpact,expectedtobepositive,onthefuturefundinglevels. OntheFRS17basis,usinganAAbonddiscountrateof5.5%perannumbasedonspotyields,theactuaryestimatedthatthe Malemembers'mortality PA92MCYoBtables-rateddown1year fundinglevelat31March2011was86%.Anestimateofthefundinglevelmeasuredonabuy-outbasisatthatdatewas Femalemembers'mortality PA92MCYoBtables-noagerating approximately54%.

UseofthesemortalitytablesreasonablyreflectstheactualUSSexperiencebutalsoprovidesanelementofconservatismtoallow forfurtherimprovementsinmortalityrates.Theassumedlifeexpectationsonretirementatage65are:

Males(females)currentlyaged65 22.8(24.8)years Males(females)currentlyaged45 24.0(25.9)years LancasterUniversity ReportandAccounts2011 85

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28 University pension schemes (continued) 28 University pension schemes (continued) Surplusesordeficitswhichariseatfuturevaluationsmayimpactontheinstitution'sfuturecontributioncommitment.Adeficitmay LancashireCountyPensionFund requireadditionalfundingintheformofhighercontributionrequirements,whereasurpluscould,perhaps,beusedtosimilarly TheLancashireCountyPensionFundisafundeddefinedbenefitscheme,withassetsheldinseparatetrusteeadministeredfunds. reducecontributionrequirements.Thesensitivitiesregardingtheprincipalassumptionsusedtomeasuretheschemeliabilitiesona ThetotalUniversitycontributionfortheyearended31July2011was£2,589k(2010:£2,502k).Thecurrentemployercontribution technicalprovisionsbasisasatthedateofthelasttriennialactuarialvaluationaresetoutbelow: rateis14.4%.

Assumption Change in Assumption Impact on Scheme Liabilities Thepensionscostisassessedeverythreeyearsinaccordancewiththeadviceofaqualifiedindependentactuary.The assumptionsandotherdatathathavethemostsignificanteffectonthedeterminationofthecontributionlevelsareasfollows: ValuationrateofInterest Increase/decreaseby0.5% Decrease/increaseby£2.2billion

RateofPensionincreases Increase/decreaseby0.5% Increase/decreaseby£1.5billion Latestactuarialvaluation 31March2010

Rateofsalarygrowth Increase/decreaseby0.5% Increase/decreaseby£0.7billion Actuarialmethod Projectedunit Rateofmortality Moreprudentassumption(movetolongcohort Increaseby£1.6billion Marketvalueofassetsatdateoflastvaluation £3,962m futureimprovementsfromthemediumcohort adoptedatthevaluation) Discountrate 6.75%

Pensionincreaseperannum 3.0% USSisa"lastmanstanding"schemesothatintheeventoftheinsolvencyofanyoftheparticipatingemployersinUSS,theamount ofanypensionfundingshortfall(whichcannototherwiseberecovered)inrespectofthatemployerwillbespreadacrossthe Salaryscaleincreasesperannum 5.0% remainingparticipantemployersandreflectedinthenextactuarialvaluationofthescheme. Proportionofmembers'accruedbenefitscoveredbytheactuarialvalueoftheassets 80% Thetrusteebelievesthatoverthelong-term,equityinvestmentandinvestmentinselectedalternativeassetclasseswillprovide superiorreturnstootherinvestmentclasses.Themanagementstructureandtargetssetaredesignedtogivethefundamajor InflationCPI 3.1% exposuretoequitiesthroughportfoliosthatarediversifiedbothgeographicallyandbysector.Thetrusteerecognisesthatitwould betheoreticallypossibletoselectinvestmentsproducingincomeflowsbroadlysimilartotheestimatedliabilitycashflows. However,inordertomeetthelong-termfundingobjectivewithinalevelofcontributionsthatitconsiderstheemployerswouldbe willingtomake,thetrusteeneedstotakeonadegreeofinvestmentriskrelativetotheliabilities.Thistakingofinvestmentrisk seekstotargetagreaterreturnthanthematchingassetswouldprovidewhilstmaintainingaprudentapproachtomeetingthe fund'sliabilities.Beforedecidingwhatdegreeofinvestmentrisktotakerelativetotheliabilities,thetrusteereceivesadvicefromits internalinvestmentteam,itsinvestmentconsultantandtheschemeactuary,andconsiderstheviewsoftheemployers.Thestrong positivecashflowoftheschememeansthatitisnotnecessarytorealiseinvestmentstomeetliabilities.Thetrusteebelievesthat this,togetherwiththeongoingflowofnewentrantsintotheschemeandthestrengthofcovenantoftheemployersenablesitto takealong-termviewofitsinvestments.Short-termvolatilityofreturnscanbetoleratedandneednotfeedthroughdirectlytothe contributionratealthoughthetrusteeismindfulofthedesirabilityofkeepingthefundinglevelonthescheme'stechnicalprovisions closetoorabove100%therebyminimisingtheriskoftheintroductionofdeficitcontributions.Theactuaryhasconfirmedthatthe scheme'scashflowislikelytoremainpositiveforthenexttenyearsormore. Thenextformaltriennialactuarialvaluationisasat31March2011andwillincorporateallowanceforschemebenefitchangesand anychangesthetrusteemakestotheunderlyingactuarialassumptions.Thecontributionratewillbereviewedaspartofeach valuationandmaybereviewedmorefrequently. Asat31March2011,USShadover142,000activemembersandtheinstitutionhad1,187activemembersparticipatingin thescheme. Thetotalpensioncostfortheinstitutionwas£8,777k(2010:£8,756k).Thisincludes£1,074k(2010:£1,091k)outstanding contributionsatthebalancesheetdate.Thecontributionratepayablebytheinstitutionwas16%ofpensionablesalaries. LancasterUniversity ReportandAccounts2011 87

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28 University pension schemes (continued) 28 University pension schemes (continued) FRS17 Theassetsinthescheme(ofwhichtheUniversity'sshareisestimatedat1.71%)andtheexpectedreturnswere: ThefollowinginformationisbaseduponthefullactuarialvaluationoftheLancashireCountyPensionFundat31March2010 updatedto31July2011byaqualifiedindependentactuary. 31 July 2 01 1 31 July 2010 31 July 2009 Financialassumptions £000 £000 £000

31 July 2011 31 July 2010 31 July 2009 Equities 2,692,660 2,220,000 1,961,820 % % % Governmentbonds 217,150 296,000 217,980 Otherbonds 608,020 555,000 435,960 Inflation 2.90 2.70 3.70 Property 390,870 296,000 186,840 Rateofincreaseinsalaries 4.90 4.95 5.50 Cash 130,290 111,000 124,560 Rateofincreaseforpensions 2.90 2.70 3.70 Other 304,010 222,000 186,840 Discountrateforliabilities 5.30 5.50 6.30 Total market value of assets 4,343,000 3,700,000 3,114,000 Postretirementmortalityassumptions(membersretiringinnormalhealth)

Long term Long term Long term Mortalitytablesused: rate of return rate of return rate of return expected at expected at expected at Males 103%S1PMACMI_2009_M(1%) (2010:PA92mcYoB+1year) 31 July 2011 31 July 2010 31 July 2009 Females 96%S1PMACMI_2009_F(1%) (2010:PA92mcYoB+1year) % % % Equities 7.0 7.5 7.5 Governmentbonds 3.9 4.2 4.5 Lifeexpectancyoffuturepensioners: Otherbonds 4.9 5.1 5.8 Property 6.0 6.5 6.5 Males(females)currentlyaged65 21.6(24.2)years Cash 0.5 0.5 0.5 Males(females)currentlyaged45 23.0(25.8)years Other 7.5 7.5 7.5

Analysis of the amount shown 31 July 2 011 31 July 2010 31 July 2009 31 July 2008 31 July 2007 in the balance sheet £000 £000 £000 £000 £000

University'sestimatedassetshare 74,072 ) 64,775 ) 55,333 ) 58,903 ) 61,245 ) Presentvalueofschemeliabilities (96,372) (89,149) (83,041) (82,726) (70,328)

Net pension liability (22,300) (24,374) (27,708) (23,823) (9,083) LancasterUniversity ReportandAccounts2011 89

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28 University pension schemes (continued) 28 University pension schemes (continued)

Group Group

2010/11 2009/10 2010/11 ) 2009/10 ) Analysis of the amount charged to staff costs within operating surplus £000 £000 Analysis of the movement in the present value of scheme liabilities £000 ) £000 )

Currentservicecost (3,215) (3,248) Atbeginningoftheyear (89,149) (83,041) Pastservicecost (8) (19) CurrentServiceCost (3,215) (3,248) Settlementsandcurtailments (83) -) InterestCost (4,921) (5,295) Contributionsbyschemeparticipants (1,150) (1,190) Total operating charge (3,306) (3,267) Pastservice(cost)/gain (8) 5,987 ) Settlementsandcurtailments (83) -) Actuarialloss (1,215) (5,073) Analysis of the amount charged to interest payable £000 £000 Benefitspaid 3,369 ) 2,711 ) Expectedreturnonpensionschemeassets 4,103 ) 3,608 ) At end of the year (96,372) (89,149) Interestonpensionschemeliabilities (4,921) (5,295)

Net charge (818) (1,687) Analysis of the movement in the fair value of scheme assets £000 ) £000 )

Atbeginningoftheyear 64,775 ) 55,333 ) Analysis of the amount recognised in the statement of total Expectedrateofreturnonschemeassets 4,103 ) 3,608 ) recognised gains and losses (STRGL) £000 £000 Actuarialgain 4,824 ) 4,853 ) Actualreturnlessexpectedreturnonpensionschemeassets 4,824 ) 4,853 ) Contributionsbytheemployer 2,589 ) 2,502 ) Changeinbasisofvaluation -) 6,006 ) Contributionsbyschemeparticipants 1,150 ) 1,190 ) Experienceloss (1,215) (5,073) Benefitspaid (3,369) (2,711)

Actuarial gain recognised in the STRGL 3,609 ) 5,786 At end of the year 74,072 ) 64,775 )

Movement in deficit during the year £000 £000 History of experience gains and losses 31 July 2011 31 July 2010 31 July 2009 31 July 2008 31 July 2007

Deficitinschemeatbeginningofyear (24,374) (27,708) Differencebetweenexpectedand Movementinyear: actualreturnonassets: Currentservicecost (3,215) (3,248) Amount£000 4,824 ) 4,853 ) (9,367) (6,760) 1,431 ) Contributions 2,589 ) 2,502 ) %ofschemeassets 6.5 ) 7.5 ) (16.9) (11.5) 2.3 ) Settlementsandcurtailments ) (83) -) Changesinassumptions(£000) -) 6,006 ) -) (121) (111) Pastservicecosts (8) (19) Netchargeonpensionscheme (818) (1,687) Experience(losses)/gainson Actuarialgain 3,609 ) 5,786 ) schemeliabilities: Amount£000 (1,215) (5,073) 7,982 ) (6,472) -) Deficit in scheme at end of the year (22,300) (24,374) %ofschemeliabilities (1.3) (5.7) 9.6 ) (7.8) -) LancasterUniversity ReportandAccounts2011 91

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Group and University 32 Interest in subsidiary companies

2011 2010 ThefollowinginformationrelatestotheUniversity'sinterestsinthesubsidiarycompaniesconsolidatedinthefinancialstatements. 29 Capital and other commitments £000 £000 Allcompanieshaveafinancialyear-endof31July.

Provisionhasnotbeenmadeforthefollowingcapitalcommitmentsat31July: Name of company Country of Nature of business Percentage of registration voting rights Commitmentscontractedat31July 10,200 33,391 held by University 2011 2010 PinecrestDevelopmentsLtd England Dormant 100 30 Access funds £000 £000 LancasterUniversityConsultancyServicesLtd England Provisionofconsultancyservices 100 * At1August 1) 5) LancasterUniversityBusinessEnterpriseLtd England ExploitationofIntellectualProperty 100 * LandecLtd(TradingasTheWorkFoundation) England Independentauthorityonworkanditsfuture 100 * FundingCouncilgrant 116 ) 148 ) LancasterUniversityLibraryServicesLtd England Dormant 100 * Interestearned 1) 1) LancasterUniversityDevelopmentsLtd England Dormant 100 LancasterUniversityEnterprisesLtd England Holdingcompany 100 118 ) 154 ) LancasterUniversityNetworkServicesLtd England Provisionofbroadbandinternetconnections 100 Disbursedtostudents (108) (148) Fundrunningcosts (5) (5) *ThecompaniesmarkedwithanasteriskarewhollyownedbyLancasterUniversityEnterprisesLimited.

Balanceunspentat31July 5) 1)

FundingCouncilgrantsareavailablesolelyforstudents;theUniversityactsonlyaspayingagent.Thegrantsandrelated 33 Post balance sheet events disbursementsarethereforeexcludedfromtheincomeandexpenditureaccount. Noadditionalsignificantpostbalancesheeteventshaveoccuredthatwouldrequireadditionaladjustmentordisclosureinthe financialstatements,overandabovethoseeventsalreadydisclosed. 31 Related party transactions DuetothenatureoftheUniversity'soperationsandthecompositionoftheCouncil(includingmembersdrawnfromthelocalpublic andprivatesectororganisations)itisinevitablethattransactionswilltakeplacewithorganisationsinwhichamemberofthe Councilmayhaveaninterest andthesearereportedasrequiredineachcaseviatheRegisterofIntereststhatisannuallyupdated.

AlltransactionsinvolvingorganisationsinwhichamemberoftheCouncilmayhaveaninterestareconductedatarm'slengthandin accordance withtheUniversity'sfinancialregulationsandnormalprocurementprocedures.

ThePresidentoftheLancasterUniversityStudentUnion(LUSU)isanex-officiomemberoftheUniversity'sCouncil.Grantspayable toLUSUaredetailedbelow:

Group and University

2011 2010 £000 £000

Blockgrant 575 564 Specificgrants 308 212

883 776 LancasterUniversity ReportandAccounts2011 93

the chancellOr'S guild rOll Of hOnOur chancellOr’S guild cOrpOrate dOnOrS

Dr Margaret N Bainbridge Sir Ronald Halstead Jon Moulton PGDipLocalHistory,1993,Fylde DSc(HonorisCausa),1987 BScChemistry,1973,Furness DepartmentofHistory-localhistoryresearch FeedtheWorldCampaign FacultyofHealth&Medicine-International projects Carole and Stuart Hatwell ObservatoryonEndofLifeCare Dr Graham Bartram BScEnvironmentalSciences,1977,Furness(Carole) Scholarships SeniorLecturer,DepartmentofEuropean BAHistory,1976,Furness(Stuart) David J Newell Astralis Group Plc Heatherlea Shell LanguagesandCultures,LancasterUniversity FacultyofHealth&Medicine-CancerResearch BScManagementScience-Marketing,1988, TwoExecutiveMBAstudentships TheHeatherleaBursaryinBiologicalSciences& Chancellor'sGuildeventsupport DELC-Austrianculturalresearchproject Professor Audrey K Hennessey Grizedale SpecialthankstoMarkKnapper LECHardshipFund SpecialthankstoPaulSnaith John and Stella Birchall PhDSystems,1984,Lonsdale PriorityFund SpecialthankstoKevinShaw TheRuskinLibrary DistanceEducationSupport Mr J G Oldham Barclays Plc Social Futures Observatory TheSteinwayCampaign Ian A Bolland Michael K Hulme Chancellor'sGuildandoverseaseventsupport Jenavalve Technology Inc CEMORE BAAccounting&Finance,1976,Bowland MPhilCriticalManagement,1998,GraduateCollege Geoffrey L Piller SpecialthankstoCathyTurner LancasterUniversityManagementSchool SpecialthankstoMichaelHulme LUSU-Create TheFacultyofArts&SocialSciences BAPolitics,1979,Bowland Law-AwardFund SpecialthankstoMichaelDormer Nicholas C Bone Yick Hin Hung Blueprint Interiors Ltd University Partnership Programmes BAAccounting&Finance,1976,Fylde BScMathematics,1989,Pendle Eddie Robinson StudentshipswithintheManagementSchooland Lewis PR (UPP Group Holdings Ltd) TechnologyinDevelopingCountriesproject PriorityFund MAOperationalResearch,1972,Furness FacultyofArts&SocialSciences MediaNetworkingeventhosting LUSUactivitiesandeventsupport Bob Bosshard Lucy J James LancasterUniversityManagementSchool- SpecialthankstoRobertDay SpecialthankstoChrisLewis SpecialthankstoCliveCrawford BAAccounting&Finance,1977,Lonsdale BAFrenchStudies,1998,Furness TheRobinsonScholarship PriorityFund&LUMSHardshipfund PriorityFund Justin P Samuels Ernst & Young Mayer Brown Winter People Plc BAReligiousStudies,1995,Cartmel Terry and Liz Bramall John and Monica Langford Accounting&Financeeventhosting LawandFinanceeventhosting TheWinterPeopleBursaryintheDepartmentof FacultyofHealth&Medicine-Alzheimer'sresearch BScPsychology,1980,Grizedale(John) TheNinianSmartMemorialFund ThePaulFletcherMemorialFund SpecialthankstoWilliamCharnley EuropeanLanguages&Cultures John A Bush BAEnglish&CreativeWriting,1980,Grizedale(Monica) Gulf One Investment Bank PriorityFund Mark Shepherd SpecialthankstoJonathanWinter MBA,2001,Graduate TheGulfOneLancasterCentreforEconomic Peak Associates Teaching&ResearchExcellenceFund BScAppliedPhysics&Electronics,1983,Pendle PriorityFund Research(GOLCER) BursaryintheLancasterEnvironmentCentre Guy W Leach PriorityFund Helen E Charlton SpecialthankstoDrNahedTaher SpecialthankstoMikeMatthews BASociology,1972,Furness BAAccounting&Finance,1985,County Lady Joan Smith StudentHardshipFund PriorityFund LancasterUniversityManagementSchool- TheProfessorSirRolandSmithChairinStrategic William F Charnley William Lind Management LLBLaw,1983,Fylde PhDChemistry,1971,Lonsdale Law-TheWilliamCharnleyAward PriorityFund Paul Stenning BAAccounting&Finance,1975,Fylde Paul and Connie Cliff Nicholas R Macfarlane FeedtheWorldCampaign LLBLaw,1985,Grizedale(Paul) BAPolitics,1974,Lonsdale JuniorYearAbroad,1984-85(Connie) PriorityFund Barry Stringer legacy pledgeS tO lancaSter univerSity Law-AwardFund David F Marshall BScComputerModellingforScience,1979,County StudentSupportFund Andrew P Coddington BScManagementScience-OperationalResearch, LLBEuropeanLegalStudies,1999,Fylde 1999,County Guy M Thomas DilysBullivant DavidJohnson MarkShepherd BettyWirth LawandGerman-AwardFunds PriorityFund BAAccounting&Finance,1983,Grizedale PriorityFund LaurenceCanty DavidJones AllisonSimpson JimWood Lynda and Paul Cooper Stuart J McAdam BScComputerScience,1976,Bowland(Lynda) BAPolitics,1973,Fylde Roy Tuff JamesDoe JonathanKeeley GrantSimpson BAAccounting&Finance,1975,Lonsdale(Paul) PriorityFund MAOperationalResearch,1969 VanessaEdmonds HelenLangley DrBernardSkillernedeBristowe FeedtheWorldCampaign Marion McClintock LancasterUniversityManagementSchool- GreenLogistics ProfessorAnneGarden ClareMcPhee RobertSmith Joseph W Devlin HonoraryFellowandHonoraryArchivist, LancasterUniversity John M R Tyler BAEconomics&Mathematics,1981,Fylde KarlHarrod ShonaMcQuistan DrLucyTucker Wewouldalsoliketothankall DepartmentofMathematics&Statistics TheSteinwayCampaign BScPhysics,1969,Cartmel PatriciaHeald BarbaraRichardson RobertWellen StudentHardshipFund Peter V E McClintock StudentSupportFund ourlegatorswhowishtoremain CynthiaHorrocks EdwardRobinson StephenWhite Professor Peter Diggle EmeritusProfessor,PhysicsDepartment, Alison Walters anonymous. GroupLeaderforCombiningHealthInformation, LancasterUniversity FacultyofHealth&Medicine-International ComputationandStatistics,LancasterMedicalSchool TheSteinwayCampaign ObservatoryonEndofLifeCare FacultyofHealth&Medicine Terence P McDonald George R Ward, in honour of Katherine Ward, Professor George M Dillon LLMInternationalBusinessandCorporateLaw,2004, Isabel Ward, Daniel Ward, Emily Ward, PhDPolitics,1976,Lonsdale Graduate Janet & Rodney Ward PaulFletcherMemorialFund PriorityFund TheSteinwayCampaign Mark A Everard Professor Tony M McEnery Frank and Lesley Wareing LLBLaw,1996,Cartmel BAEnglish&Linguistics,1986,Pendle BAPolitics,1976,FyldeandAlumni&Development Thank you to all donors and those Yoursupportisgreatlyappreciated- Ifyouareinterestedinfindingout Law-AwardFund PhDLinguistics,1995,Graduate ResearchOfficer,LancasterUniversity(Frank) donationsandlegaciesareincreasingly moreorjoiningtheChancellor’sGuild Dean,FacultyofArtsandSocialSciences, BAEnglishLiterature,1976,FyldeandHeadof David Finch who have made provision for LancasterUniversity Registry,LancasterUniversity(Lesley) vitalinhelpingLancastertocontinueto pleasecontact: BAEconomics,1967,Bowland ProfessorofEnglishLanguage&Linguistics, FyldeCollege Lancaster University within their PriorityFund fulfilitspioneeringmission.Manyalumni, LancasterUniversity Dr John P L Welch Will, including our numerous Dr Ian Finlay parentsofcurrentstudents,staffand PriorityFund CentreforNorthWestRegionalStudiesandthe NickFragel, PhDEducationalResearch,2004,Graduate otherfriendshavegiventotheUniversity Thomas M G McNerney FacultyofHealth&Medicine-CentreforAgeing anonymous supporters who give DirectorofAlumniandDevelopment PriorityFund MScOperationalResearch,1986,County Research to the Lancaster University andtheChancellor’sGuildisourflagship Gian M Fulgoni TheBoatClub Sir Martin and Lady Wood donorgroup,withmembersdonating MAMarketing,1970,Cartmel Friends Programme and OperationalResearch FeedtheWorldCampaign E:[email protected] LancasterUniversityManagementSchool- £500 ormoreperyear.Leadingby Samuel J Moody TheFulgoniChairinMarketing David and Janet Wood Chancellor’s Guild. exampleandinspiringotheralumnito T:+44(0)1524594522 BScEconomics,1973,Lonsdale BAHistory,1975,Bowland(David) Professor Anne Garden PriorityFund BAHistory,1975,Bowland(Janet) supportLancasterUniversity,Guild HeadofDepartmentandDirectoroftheCME, PriorityFund donorsarebroughttogetheratevents You can give online at: LancasterMedicalSchool FacultyofHealth&Medicine-MedicalStudentPrizes throughouttheyear. www.alumni.lancs.ac.uk/donations Jenny Greenhalgh Disclaimer: Everyefforthasbeenmadetoensure TheSteinwayCampaign accuracyofthedatabutshouldyounoticeany omissionsorerrors,pleaseletusknow. Thankyou. LancasterUniversity report and accounts 2011 95

truStS, fOundatiOnS and charitieS OrganiSatiOnal chart

We would like to thank all the organisations listed below for helping Lancaster University’s Chancellor PresidesatCourt academics and students to continue their important work. Sir Christian Bonington

Grants and donations £1 million and above ColtFoundation OpenSocietyInstitute Pro-Chancellor ChairsCouncil AnonymousFoundation CumberlandandWestmorlandAntiquarianand OperationalResearchSociety Mr Bryan Gray HeritageLotteryFund ArchaeologicalSociety OxfordArchaeologyNorth NorthWestCancerResearchFund CumbriaCommunityFoundation PerryFoundation SirJohnFisherFoundation DaiwaAnglo-JapaneseFoundation PeterMooresFoundation TheBowlandCharitableTrust DangoorFoundation PrestonTradeUnionEducationUnit DeputyPro-Chancellors TheDowagerCountessEleanorPeelTrustand DiabetesUK Rathbone Mr John Hadfield Mrs Gill Gardner ThePeelStudentshipTrust DownSyndromeEducationalTrust RefugeeAction TheLeverhulmeTrust Dreamscheme ResearchintoAgeing WellcomeTrust DuchyofLancaster ResponsibilityinGamblingTrust(RIGT) EltonJohnAidsFoundation RosemereCancerFoundation PlanningSupportUnit Vice-Chancellor Grants and donations £100,000-£999,999 ChairsSenate AgeUK EnglishHeritage RoyalAcademyofEngineering Mr Paul Graves Professor Paul Wellings Alzheimer’sResearchTrust EnglishNature RoyalGeographicalSociety Alzheimer’sSociety Equality&HumanRightsCommissionScotland RoyalNationalInstitutefortheBlind(RNIB) ArthritisResearchUK EsméeFairbairnCharitableTrust RoyalPigeonRacingAssociation BigLotteryFund ExperimentalPsychologySociety RoyalSocietyChemistry(RSC) DeputyVice-Chancellor FoundationforCanadianStudies UniversitySecretary ChiefOperatingOfficer Librarian CounselandCare RoyalSocietyfortheProtectionofBirds(RSPB)UK FacultyExecutiveDeans Professor Robert ProVice-Chancellors FoundationforManagement Ms Fiona Aiken Mr Andrew Neal Ms Clare Powne DimblebyCancerCare SasakawaFoundation McKinlay DrHadwenTrust FoundationfortheStudyofInfantDeaths(FSID) ScottishForestryTrust FoundationforpeoplewithLearningDisabilities Frances&AugustusNewmanFoundation SENSE HelptheHospices FrancisC.ScottCharitableTrust(FCSCT) SirSamuelScottofYewsTrust InspireLearning FreshwaterBiologicalAssociation SocialCareInstituteofExcellence Dean, Deanof Pro-ViceChancellor, FriendsofLancasterUniversityinAmerica,Inc. DirectorofFacilities JosephRowntreeFoundation SocietyforAppliedMicrobiology ArtsandSocialSciences UndergraduateStudies International Secretariat FriendsofLythamHospital Mr Mark Swindlehurst JPMoultonCharitableTrust SocietyforAppliedPhilosophy Professor Tony McEnery Dr Gavin Brown Professor Steve Bradley Lancashire&CumbriaFoundation GeorgeBartonMotorNeuroneDiseaseTrust SocietyforGeneralMicrobiology LeukaemiaResearchFund GeorgeEastonMemorialFund SocietyforRenaissanceStudies GreenpeaceUKLtd Dean, Pro-ViceChancellor, NationalCancerResearchInstitute SocietyforSouthAsianStudies DirectorofFinance GroundworkFoundation ManagementSchool Research NuffieldFoundation SpecialistSchoolsandAcademiesTrust(SSAT) Ms Sarah Randall-Paley Professor Sue Cox Professor Trevor McMillan Parkinson’sDiseaseSociety HorticultureResearchInternational St.Helen’sChildren’sFund ResearchintoAgeing InstituteofCivilEngineers St.Joseph’sHospice TheHenryMooreFoundation InstituteofCharteredAccountantsinEngland SylviaAitkenCharitableTrust andWales Dean, Deanof Directorof TheIredellTrust TFCFrostCharitableTrust ScienceandTechnology GraduateStudies HumanResources IntelCorporationLtd TheJoyWelchEducationalCharitableTrust TheAssociationfortheStudyofAnimalBehaviour(ASAB) Professor Mary Smyth Professor Geraint Johnes Mr Andy Clarke IrishHospiceFoundation TheLloyd’sRegisterEducationalTrust TheBailyThomasCharitableFund JacobsFoundation Violet&MiloCrippsCharitableTrust TheCarnegieUKTrust JapanFoundationEndowmentCommittee DirectorofInformation TheWolfsonFoundation TheCiscoUniversityResearchProgram Dean, Pro-ViceChancellor, JohnInnesInstitute HealthandMedicine Collegesandthe SystemsServices TheDiana,PrincessofWalesMemorialFund Grants and donations up to £99,999 JointInitiativefortheStudyofLatinAmericaand Professor Tony Gatrell StudentExperience Mr John Gallagher TheEuropeanCaseClearingHouse(ECCH) ActionMedicalResearch theCaribbean(JISLAC) Professor Amanda TheGranadaFoundation Chetwynd ArchaeologicalProjectServices LancasterPriorityTrust TheLearningandSkillsImprovementService(LSIS) Director ArtsCouncilEngland LeadershipFoundationforHigherEducation DeanofMedicine TheLizandTerryBramallFoundation ofMarketingand AssociationforChildren’sPalliativeCare(ACT) Learning&SkillsImprovementService Professor Anne Garden TheMigraineTrust ExternalLinkages AssociationforRadiationResearch LeonardCheshireDisability CollegePrincipals Ms Katrina Payne TheNappEducationalFoundation AssociationofCommonwealthUniversities LibyanPeople’sBureau TheNationalLottery AtlanticSalmonTrust LifelineProjectLtd TheNationalTrust HeadofAcademic BarrowCadburyTrust LokahiFoundation Departments DirectorofResearch TheOgdenTrust andEnterpriseServices BinghamTrust LondonMathematicalSociety TheRoyalSociety Mr Roderick O’Brien BiochemicalSociety MacmillanCancerRelief TheRubinFoundationCharitableTrust BirminghamBotanicalGardensandGlasshouses MacmillanCancerSupport TheScottishAccountancyTrustforEducationand BrathayHallTrust ManchesterGeographicalSociety Research(SATER) Directorof BritishCottonGrowingAssociation MethodistHomes Student-BasedServices TheSteelCharitableTrust BritishEcologicalSociety MHACareGroup Mr Tom Finnigan TheTonyVernonFoundation BritishGeomorphicalResearchGroup MoorsfortheFuturePartnership TheWeltonFoundation BritishPhycologicalSociety Music&LettersTrust TrinityHospice&PalliativeCareServices BritishPsychologicalSociety NationalCancerInstitute(USA) WessexArchaeology Membership of Council (as of October 2011) BUPAFoundation NationalHospicePalliativeCareOrganisation(USA) WorkingwithMen CancerResearchUK NaturalHistoryMuseum WorldWildlifeFund(WWF-UK) - MrAndyBaker - DrRuthBoumphrey - DrGavinBrown - MrJamesR.Carr - ProfessorChakravarthiRam-Prasad CancerCare NCHTheChildren’sCharity YorkshireAgriculturalSociety - DrKeithDavidson - MrFrancisFitzherbert-Brockholes - MrGeorgeGardiner - MrsGillGardner - MsJemmaGaskell CaritasCare NewPhytologistTrust YorkshireCancerResearch CatholicCaringServices NominetTrust - MrBryanM.Gray - MrJohnHadfield - ProfessorGeraintJohnes - MrLaurenceKing - MrGaryMiddlebrook - MrGaryParker Cephalon NorthWestTUC - ProfessorEmmaRose - ProfessorHarryThomason - ProfessorPaulW.Wellings - MsLoisWillis ChristendomTrust NSPCCNorthCumbria LancasterUniversity ReportandAccounts2011 97

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