DMU Annual Accounts 2018-19
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ANNUAL ACCOUNTS 2018–2019 CONTENTS Chancellor, Board of Governors and committees, 2 Executive Board and professional advisers Interim Chair introduction to the annual accounts 2018/19 6 Operating and financial review 2018/19 8 Statement on corporate governance 34 Independent auditor’s report to the Board of Governors of DMU 40 Statement of principal accounting policies 48 Consolidated and corporation statement of comprehensive 56 income and expenditure Consolidated and corporation statement of changes in reserves 57 Consolidated and corporation statement of financial position 58 Consolidated statement of cash flows 59 Notes to the accounts 60 DMU has been named the first-ever University of the Year for Social Inclusion in The Times and Sunday Times Good University Guide 2019 1 CHANCELLOR, BOARD OF GOVERNORS AND COMMITTEES, EXECUTIVE BOARD AND PROFESSIONAL ADVISERS CHANCELLOR COMMITTEES OF THE BOARD The Baroness Lawrence of Clarendon OBE Audit Committee Mr Alan Charlton (Chair) BOARD OF GOVERNORS Mrs Sally Bowie Mr Ian Blatchford MA (Oxon), MA (Birkbeck), FCMA, FSA (Chairman of the Board) Stepped down January 2019 Mr Simon Cole Mrs Sally Bowie Mr Charles Ilako Mr Simon Capper BA (Hons), ACA Mr Peter Tansley Mr Simon Cole QPM, Hons DArts, BA (Hons) Dunelm, MA, DipCrim Mr Daniel Toner Mr Alan Charlton CMG, CVO, MA, BLing, PGCE Professor Fiona Cownie FAcSS, FRSA, PFHEA Appointed July 2019 Ethics Committee Ms Jill Ezard BA (Hons), MBA Ms Sonia Watson (Chair) Ms Lin Hinnigan BSc, MEd, MBA Mr Alan Charlton (appointed Interim Chair of the Board from March 2019) Professor Andy Collop (Ex-officio) Mr Charles Ilako BSc (Hons), MSc, FCA ICAEW Appointed July 2019 Ms Diya Rattanpal Mr Oliver Mishcon LLB (Hons), Barrister Stepped down February 2019 Ms Jasvinder Sanghera Ms Suzanne Overton-Edwards Appointed March 2019 Dr Vijay Patel OBE BSc (Pharm), MRPS, GPHC, CCMI, FRSA Term ended July 2019 Finance and Human Resources Committee Professor Tony Payne MA (Cantab), PhD, FAcSS Stepped down February 2019 Mr Simon Capper (Chair) Ms Sara Pierson BA (Hons), MBA Appointed July 2019 Ms Dianne Buchanan Dr Dave Stevens MPhil, Hon DTech Appointed March 2019 Mr Phil Clarke Mr Tony Stockdale ACA Stepped down February 2019 Professor Andy Collop (Ex-officio) Mr Daniel Toner BA (Hons) Appointed July 2019 Ms Jill Ezard Ms Sonia Watson OBE MBA (Dist), Hon FRIBA Ms Lin Hinnigan Ms Sara Pierson REPRESENTATIVE GOVERNORS Nominations Committee Dr Stephen Handsley BA (Hons), PhD, PGCHE Term ended September 2018 Ms Lin Hinnigan (Chair) Mr Paul McNicoll MA ACMI Appointed November 2018 Professor Andy Collop (Ex-officio) Ms Mollie Footitt BSc (Hons) (DSU Deputy President Education) Term ended June 2019 Ms Jill Ezard Ms Diya Rattanpal (DSU Equality and Diversity Executive) Appointed August 2019 Mr Paul McNicoll Ms Diya Rattanpal CO-OPTED MEMBERS Ms Sonia Watson Ms Dianne Buchanan MA (Hons), ACA Appointed July 2019 Mr Phil Clarke BA (Hons), CIMA Appointed July 2019 Remuneration Committee Mrs Jasvinder Sanghera BA (Hons), CBE Appointed July 2019 Ms Lin Hinnigan (Chair) Mr Peter Tansley BA (Hons), CGMA, CIMA, CMIIA Appointed July 2019 Mr Simon Capper Professor Fiona Cownie EX-OFFICIO GOVERNOR – CHIEF EXECUTIVE AND VICE-CHANCELLOR Dr Vijay Patel Professor Dominic Shellard MA, DPhil Stepped down February 2019 Professor Andy Collop BEng, PhD, DSc, (Interim) Appointed March 2019 CLERK TO THE BOARD Mr Sam Weston BA (Hons) 2 3 EXECUTIVE BOARD Professor Dominic Shellard (Chief Executive and Vice-Chancellor) MA, DPhil Left February 2019 Professor Andy Collop (Interim Vice-Chancellor and Chief Executive) BEng, PhD, DSc (previously Deputy Vice-Chancellor, appointed Interim Vice-Chancellor and Chief Executive in March 2019) Dr Simon Oldroyd (Interim Deputy Vice-Chancellor) BSc (Hons), PhD, FIBMS (previously Pro Vice-Chancellor and Dean of Health and Life Sciences, appointed Interim Deputy Vice-Chancellor in April 2019) Mr Ben Browne (Chief Operating Officer) MA (HRM), FCIPD Professor Jackie Labbe (Pro Vice-Chancellor (Academic)) BA (Hons), MA, PhD, FRSA Mr Simon Bradbury (Pro Vice-Chancellor and Dean of Arts, Design and Humanities) MA (Cantab), DipArch, RIBA, ARB, FHEA Ms Kaushika Patel (Interim Pro Vice-Chancellor and Dean of Health and Life Sciences) Joined April 2019 BA, MA, CQSW Mr James Gardner (Associate Chief Operating Officer and Pro Vice-Chancellor for Left August 2019 Strategic and International Partnerships) BA (Hons) Professor Rusi Jaspal (Pro Vice-Chancellor (Research)) MA (Cantab), MSc, PhD, Joined August 2018 CPsychol, FBPsS, FRSM, FRSPH, FRSA Professor Dana Brown (Pro Vice-Chancellor for Enterprise and Dean of Business and Left May 2019 Law, and Principal, Leicester Castle Business School) BA (Hons), MPhil, PhD Mrs Beverly Vickerstaff (Interim Pro Vice-Chancellor and Dean of Business and Law Joined June 2019 and Principal, Leicester Castle Business School) BSc, MSc, FCA, FHEA Professor David Mba (Pro Vice-Chancellor for Enterprise and Dean of Faculty of Computing, Engineering and Media) PFHEA, FBINDT, FISEAM Mr Simon Ambrose (Vice-Chancellor’s Chief of Staff) LLB (Hons), MBA Left August 2019 Mrs Jo Cooke (Associate Chief Operating Officer and Executive Director of Student and Academic Services) BA (Hons) Dr Peter Cross (Chief Finance Officer) MAAT, FCPFA, MScPSM, DBA Mrs Sarah Setchell (Executive Director of People and Organisational Development) Left May 2019 BA (Hons), PG Dip, FCIPD, LLM Mrs Jennifer Penfold (Interim Executive Director of People and Organisational Joined May 2019 Development) BA (Hons), MSc Mrs Mel Fowler (Associate Chief Operating Officer and Executive Director of Marketing and Communications) BSc (Hons), MA PROFESSIONAL ADVISERS TO THE CORPORATION Auditors External Auditors: Ernst & Young, Birmingham Internal Auditors: PricewaterhouseCoopers LLP, Birmingham Bankers National Westminster Bank plc In accordance with best practice, the Board of Governors maintains a Register Ours is a community in which everyone learns, of Governors’ Interests. To view the register, please contact the Clerk to the Board, develops and contributes for the good of all Trinity House, De Montfort University, Leicester LE1 9BH. 4 5 INTERIM CHAIR’S INTRODUCTION TO THE ANNUAL ACCOUNTS 2018/19 I am pleased to introduce the Annual Accounts for the and internationally, and the university continues to seek the first time, DMU has been ranked in the QS World In May, we formally opened the Stephen Lawrence financial year 2018/19. to diversify the countries from which it draws international University Rankings, where it was placed between 801 Research Centre, a facility that aims to initiate and sustain students, with particular success in India. and 1,000. In the 2019 National Student Survey, our activities that will shape and influence how we think This year saw a number of senior changes at De Montfort score for overall student satisfaction dropped slightly, as about race and society. The centre will bring together University (DMU), with a Vice-Chancellor of nine years Despite these numerous challenges, DMU’s financial did that of many of our competitors across the sector. academic colleagues from across the university whose departing his role alongside the Chair of the Board of performance remains extremely positive. Our accounts However, we still managed to outperform by 2 per cent work will build on areas of existing research expertise Governors of 12 years and several former governor clearly evidence a strong cash and surplus position built our benchmark as set by the Office for Students, and across themes relating to: histories of black and minority colleagues. The involvement of the higher education on solid financial planning and an upward trajectory several of our programmes received scores of 100 per ethnic communities in Britain; the concept and practice of sector’s regulator, the Office for Students, culminated of student recruitment. This position was recently cent student satisfaction. As ever, the survey identified institutional racism; denials of justice; and the psychology in the publication by the university of an action plan for independently validated, when the university’s credit rating a number of areas where our performance could be of racial violence. improvement that will see us make a number of necessary was upgraded from ‘Aa3 negative’ to ‘Aa3 stable’. DMU improved to further enhance the student experience, changes to our governance arrangements. The Interim was one of only a small number of universities to be As previously mentioned, there have been a number of and improvements in these areas will be a priority for the Vice-Chancellor is leading the university through the recognised in this way by Moody’s Investors Service, the changes in the composition of the board. Four independent university in the 2019/20 academic year. required changes, pending a permanent appointment credit ratings agency. governors departed in 2018/19 and were replaced in the early in the next calendar year. The university continues to work closely with the United summer with the recruitment of Professor Fiona Cownie, The university’s position within the sector as a whole Nations (UN) in its role as a member of the UN’s Charles Ilako, Sara Pierson and Daniel Toner, all of whom Externally, the picture across the sector is no less continues to be equally strong. We remain proud to be Academic Impact programme, and as a designated hub bring substantial experience and expertise to the board. challenging. The recently published Review of Post-18 recognised as a university ranked Gold in the Teaching for Sustainable Development Goal (SDG) 16 – to promote We also welcomed four co-opted members in the form Education and Funding, led by Philip Augar, will present Excellence and Student Outcomes Framework (TEF), peace, justice and strong institutions. In April, we were of Dianne Buchanan, Phil Clarke, Jasvinder Sanghera significant financial challenges for the sector should an appropriate acknowledgement of the consistently ranked 50th in the world in the Times Higher Education’s and Peter Tansley, who bring specific skills to the work the government (and a new prime minister) ultimately outstanding teaching and learning at DMU, and its impact inaugural University Impact Rankings.